HF 3963

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/03/2022 02:05pm

A bill for an act
relating to education finance; providing additional state aid for certain high-cost
special education activities; appropriating money; amending Minnesota Statutes
2020, section 125A.79, subdivision 1, by adding a subdivision; Laws 2021, First
Special Session chapter 13, article 5, section 3, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Unreimbursed old formula special education expenditures" means:

(1) old formula special education expenditures for the prior fiscal year; minus

(2) for fiscal year 2016 and later, the special education initial aid under section 125A.76,
subdivision 2a; minus

(3) for fiscal year 2016 and later, the amount of general education revenue, excluding
local optional revenue, plus local optional aid and referendum equalization aid for the prior
fiscal year attributable to pupils receiving special instruction and services outside the regular
classroom for more than 60 percent of the school day for the portion of time the pupils
receive special instruction and services outside the regular classroom, excluding portions
attributable to district and school administration, district support services, operations and
maintenance, capital expenditures, and pupil transportation.

(b) "Unreimbursed nonfederal special education expenditures" means:

(1) nonfederal special education expenditures for the prior fiscal year; minus

(2) special education initial aid under section 125A.76, subdivision 2a; minus

(3) the amount of general education revenue, excluding local optional revenue, plus
local optional aid, and referendum equalization aid for the prior fiscal year attributable to
pupils receiving special instruction and services outside the regular classroom for more than
60 percent of the school day for the portion of time the pupils receive special instruction
and services outside of the regular classroom, excluding portions attributable to district and
school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation.

(c) "General revenue" for a school district means the sum of the general education
revenue according to section 126C.10, subdivision 1, excluding transportation sparsity
revenue, local optional revenue, and total operating capital revenue. "General revenue" for
a charter school means the sum of the general education revenue according to section
124E.20, subdivision 1, and transportation revenue according to section 124E.23, excluding
referendum equalization aid, transportation sparsity revenue, and operating capital revenue.

new text begin (d) "High-cost services" means the nonfederal special education expenditures attributable
to a special education student whose costs of services are more than three times the state
average cost of services per pupil.
new text end

Sec. 2.

Minnesota Statutes 2020, section 125A.79, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin High-cost services reimbursement. new text end

new text begin (a) A school district or cooperative unit
serving special education students under section 123A.24, subdivision 2, must calculate for
each high-cost services special education student being served in a federal setting 3 or
federal setting 4 program the nonfederal special education expenditures.
new text end

new text begin (b) For the second prior year, for each student whose expenditures are high-cost services,
the Department of Education shall calculate the difference between the total special education
expenditures for that student and the total state and federal aid provided for that student.
new text end

new text begin (c) For each resident school district providing the special education services, the
Department of Education must pay for each qualifying student 90 percent of the amount
calculated in paragraph (b).
new text end

new text begin (d) For the aid amounts calculated under paragraph (b), for a nonresident student, the
department must first deduct from the amount paid to the serving school district the amount
that was included in the tuition billing aid adjustment and pay that amount directly to the
resident school district. The amount paid to the serving school district under this paragraph
must not exceed the amount calculated in paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 3.

Laws 2021, First Special Session chapter 13, article 5, section 3, subdivision 6, is
amended to read:

Subd. 6.

Special education new text begin aid; new text end out-of-state tuition new text begin and high-cost services new text end .

For special
education out-of-state tuition under Minnesota Statutes, section 125A.79, deleted text begin subdivision deleted text end new text begin
subdivisions new text end 8 new text begin and 9 new text end :

	$	250,000	.....	2022
	$	deleted text begin 250,000 deleted text end new text begin ....... new text end	.....	2023