1.1 	A bill for an act
1.2 	relating to education; requiring school districts to maintain a separate account to 
1.3 	identify expenditures for nonpublic school pupil special education instruction 
1.4 	and services; amending Minnesota Statutes 2005 Supplement, section 123B.76, 
1.5 	subdivision 3.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
1.8 	amended to read:
1.9 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
1.10 	means education site as defined in section 123B.04, subdivision 1.
1.11 	(b) Each district shall maintain separate accounts to identify general fund 
1.12 	expenditures for each building. All expenditures for regular instruction, secondary 
1.13 	vocational instruction, and school administration must be reported to the department 
1.14 	separately for each building. All expenditures for special education instruction, 
1.15 	instructional support services, and pupil support services provided within a specific 
1.16 	building must be reported to the department separately for each building. Salary 
1.17 	expenditures reported by building must reflect actual salaries for staff at the building 
1.18 	and must not be based on districtwide averages. All expenditures for special education 
1.19 	instruction and services for nonpublic school pupils must be reported separately by 
1.20 	location of instruction and services. All other general fund expenditures may be reported 
1.21 	by building or on a districtwide basis.
1.22 	(c) The department must annually report information showing school district general 
1.23 	fund expenditures per pupil by program category for each building and estimated school 
1.24 	district general fund revenue generated by pupils attending each building on its Web 
1.25 	site. For purposes of this report:
2.1 	(1) expenditures not reported by building shall be allocated among buildings on a 
2.2 	uniform per pupil basis;
2.3 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
2.4 	4;
2.5 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
2.6 	according to section 126C.10, subdivisions 7 and 8;
2.7 	(4) other general education revenue shall be allocated on a uniform per pupil unit 
2.8 	basis;
2.9 	(5) first grade preparedness aid shall be allocated according to section 124D.081;
2.10 	(6) state and federal special education aid and Title I aid shall be allocated in 
2.11 	proportion to district expenditures for these programs by building; and
2.12 	(7) other general fund revenues shall be allocated on a uniform per pupil basis, 
2.13 	except that the department may allocate other revenues attributable to specific buildings 
2.14 	directly to those buildings.
2.15 	(d) The amount of state and federal special education aid for nonpublic school pupils 
2.16 	receiving special education instruction and services and the number of nonpublic school 
2.17 	pupils with a disability assessed and receiving special education instruction and services 
2.18 	from school districts must be shown in a separate category.

2.19 	EFFECTIVE DATE. This section is effective for fiscal year 2006 and later.