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HF 549

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education finance; providing state funding for all charter school
qualifying special education costs; appropriating money; amending Minnesota
Statutes 2006, sections 124D.11, subdivision 5; 125A.11, subdivision 1;
127A.47, subdivisions 7, 8.

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

Section 1.

Minnesota Statutes 2006, section 124D.11, subdivision 5, is amended to read:


Subd. 5.

Special education aid.

(a) Except as provided in subdivision 2, special
education aid must be paid to a charter school according to section 125A.76, as though
it were a school district.

(b) For fiscal year 2006, the charter school may charge tuition to the district of
residence as follows:

(1) if the charter school does not receive general education revenue on behalf of
the student according to subdivision 1, tuition shall be charged as provided in section
125A.11; or

(2) if the charter school receives general education revenue on behalf of the student
according to subdivision 1, tuition shall be charged as provided in section 127A.47,
subdivision 7
, paragraph (d).

(c) For fiscal year 2007 deleted text begin and laterdeleted text end , the special education aid paid to the charter school
shall be adjusted as follows:

(1) if the charter school does not receive general education revenue on behalf of
the student according to subdivision 1, the aid shall be adjusted as provided in section
125A.11; or

(2) if the charter school receives general education revenue on behalf of the student
according to subdivision 1, the aid shall be adjusted as provided in section 127A.47,
subdivision 7
, paragraph (d).

new text begin (d) For fiscal year 2008 and later, a charter school may request reimbursement for
qualifying unreimbursed special education costs under sections 125A.11, subdivision 1,
paragraph (c), and 127A.47, subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:


Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence. The
tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition
is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum
of (1) the actual cost of providing special instruction and services to the child including
a proportionate amount for special transportation and unreimbursed building lease and
debt service costs for facilities used primarily for special education, plus (2) the amount
of general education revenue and referendum aid attributable to the pupil, minus (3) the
amount of special education aid for children with a disability received on behalf of that
child, minus (4) if the pupil receives special instruction and services outside the regular
classroom for more than 60 percent of the school day, the amount of general education
revenue and referendum aid, excluding portions attributable to district and school
administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, attributable to that pupil for the portion of time the pupil receives
special instruction and services outside of the regular classroom. If the boards involved
do not agree upon the tuition rate, either board may apply to the commissioner to fix the
rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or
request a written statement from each board, giving each board at least ten days' notice,
and after the hearing or review of the written statements the commissioner must make an
order fixing the tuition rate, which is binding on both school districts. General education
revenue and referendum aid attributable to a pupil must be calculated using the resident
district's average general education and referendum revenue per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school districtnew text begin , other than a charter school,new text end
provides special instruction and services for a pupil with a disability as defined in section
125A.02 outside the district of residence, excluding a pupil for whom an adjustment to
special education aid is calculated according to section 127A.47, subdivision 7, paragraph
(e), special education aid paid to the resident district must be reduced by an amount
equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to that pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time the
pupil receives special instruction and services outside of the regular classroom. General
education revenue and referendum aid attributable to a pupil must be calculated using the
resident district's average general education revenue and referendum aid per adjusted pupil
unit. Special education aid paid to the district or cooperative providing special instruction
and services for the pupil must be increased by the amount of the reduction in the aid paid
to the resident district. Amounts paid to cooperatives under this subdivision and section
127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on
the resident school district's books of account under sections 123B.75 and 123B.76. If
the resident district's special education aid is insufficient to make the full adjustment, the
remaining adjustment shall be made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school deleted text begin where more than 30 percent of enrolled students
receive special education and related services, an intermediate district, a special education
cooperative, or a school district that served as the applicant agency for a group of
school districts for federal special education aids for fiscal year 2006
deleted text end may apply to the
commissioner deleted text begin for authority to charge the resident district an additional amountdeleted text end to recover
any remaining new text begin qualifying new text end unreimbursed costs of serving pupils with a disability. The
application must include a description of the costs and the calculations used to determine
the unreimbursed portion to be charged to the deleted text begin resident districtdeleted text end new text begin statenew text end . Amounts approved
by the commissioner under this paragraph must be included in the deleted text begin tuition billings ordeleted text end aid
adjustments under deleted text begin paragraph (a) or (b), ordeleted text end section 127A.47deleted text begin , subdivision 7, paragraph
(d) or (e), as applicable
deleted text end .

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
(d) and (e), "general education revenue and referendum aid" means the sum of the general
education revenue according to section 126C.10, subdivision 1, excluding alternative
teacher compensation revenue, plus the referendum aid according to section 126C.17,
subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a)
to (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:


Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The
adjustments must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the referendum equalization aid
attributable to the pupil in the nonresident district.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2)
if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum aid attributable to that pupil for the portion of time the pupil receives 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, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services. For
purposes of this paragraph, general education revenue and referendum aid attributable to a
pupil must be calculated using the serving district's average general education revenue
and referendum aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district
must be reduced by an amount equal to (1) the actual cost of providing special instruction
and services, including special transportation and unreimbursed building lease and debt
service costs for facilities used primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
in a program listed in this subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60 percent of the school day,
the amount of general education revenue and referendum aid attributable to that pupil
for the portion of time the pupil receives 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, minus (3) special education aid attributable to that pupil, that is received
by the district providing special instruction and services. For purposes of this paragraph,
general education revenue and referendum aid attributable to a pupil must be calculated
using the serving district's average general education revenue and referendum aid per
adjusted pupil unit. Special education aid paid to the district or cooperative providing
special instruction and services for the pupil, or to the fiscal agent district for a cooperative,
must be increased by the amount of the reduction in the aid paid to the resident district. If
the resident district's special education aid is insufficient to make the full adjustment, the
remaining adjustment shall be made to other state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
of the district average general education revenue per pupil unit minus an amount equal to
the product of the formula allowance according to section 126C.10, subdivision 2, times
.0485, calculated without basic skills revenue and transportation sparsity revenue, times
the number of pupil units for pupils attending the area learning center, plus the amount of
compensatory revenue generated by pupils attending the area learning center.

new text begin (g) Additional special education aid paid to a charter school must be provided
according to subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 127A.47, subdivision 8, is amended to read:


Subd. 8.

Charter schools.

(a) The general education aid for districts must be
adjusted for each pupil attending a charter school under section 124D.10. The adjustments
must be made according to this subdivision.

(b) General education aid paid to a district in which a charter school not providing
transportation according to section 124D.10, subdivision 16, is located must be increased
by an amount equal to the sum of:

(1) the product of: (i) the sum of an amount equal to the product of the formula
allowance according to section 126C.10, subdivision 2, times .0485, plus the transportation
sparsity allowance for the district; times (ii) the adjusted marginal cost pupil units
attributable to the pupil; plus

(2) the product of $223 and the extended time marginal cost pupil units attributable
to the pupil.

new text begin (c) The state must pay additional special education aid to each charter school equal
to the charter school's qualifying unreimbursed special education costs for that year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Special education aid. new text end

new text begin For supplemental special education aid payments
to charter schools under Minnesota Statutes, section 127A.47, subdivision 8:
new text end

new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2008
new text end
new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2009
new text end