HF 739

as introduced - 89th Legislature (2015 - 2016) Posted on 02/09/2015 02:12pm

A bill for an act
relating to education finance; increasing funding for general education, extended
day programs, special education, English Language learner programs, and
phasing in funding for universal preschool programs; amending Minnesota
Statutes 2014, sections 124D.59, subdivision 2; 125A.76, subdivisions 1, 2c;
125A.79, subdivision 5; 126C.05, subdivision 1; 126C.10, subdivisions 2, 2a;
proposing coding for new law in Minnesota Statutes, chapter 124D.

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

Section 1.

new text begin [124D.167] UNIVERSAL PRESCHOOL FOR FOUR-YEAR-OLD
STUDENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Child eligibility. new text end

new text begin (a) A child who is at least four years old on
September 1 of that year and not yet enrolled in kindergarten is eligible to participate in
Minnesota's universal preschool program. The child may choose a program offered under
this section or apply for an early learning scholarship under section 124D.165.
new text end

new text begin (b) A child younger than four years of age is eligible to participate in a school
district's program as local funding allows.
new text end

new text begin Subd. 2. new text end

new text begin Revenue. new text end

new text begin (a) A child who is eligible for universal preschool under
subdivision 1 who does not receive an early learning scholarship may enroll in a school
district's universal preschool program under this section. A school district that operates or
contracts for a qualifying preschool program is eligible for universal preschool revenue
equal to the district's number of pupil units under section 126C.05, subdivision 1,
paragraph (h), times the general education basic formula allowance for that year.
new text end

new text begin (b) For fiscal year 2016 only, total statewide universal preschool revenue may not
exceed $75,000,000. For fiscal year 2017 only, total statewide universal preschool revenue
may not exceed $150,000,000. For fiscal year 2018 only, total statewide universal preschool
revenue may not exceed $225,000,000. If necessary, the commissioner must prorate the
payments to each district so that the statewide revenue cap for that year is not exceeded.
new text end

new text begin (c) For fiscal years 2016 to 2018, a school district must grant priority for admission
to preschool programs to children whose families would qualify for free or reduced price
meals.
new text end

new text begin Subd. 3. new text end

new text begin Qualifying preschool program. new text end

new text begin (a) A school district program or
contracted program that meets the following qualifications may provide preschool services
and enroll eligible children under this section:
new text end

new text begin (1) programs must have a child-to-adult ratio of no greater than nine to one;
new text end

new text begin (2) programs must meet an average of at least two and one-half hours per day,
four days per week;
new text end

new text begin (3) curriculum and learning standards must be aligned between the preschool
programs and kindergartens;
new text end

new text begin (4) programs must employ necessary qualified teachers, and by January 1, 2017,
at least 50 percent of the teachers employed by a program to teach preschool must be
licensed in early childhood education;
new text end

new text begin (5) programs must have a strong accountability system with documented learning
standards, and must be highly rated by the Quality Rating System;
new text end

new text begin (6) each child must be assessed at program entrance and again at program exit;
new text end

new text begin (7) programs must offer comprehensive family services including developmental,
behavioral, and health screening;
new text end

new text begin (8) programs must offer compensatory services in language, literacy, and
mathematical thinking in a developmentally appropriate manner; and
new text end

new text begin (9) programs must develop collaborative partnerships with school-based early
childhood programs, kindergarten teachers and other school officials, Head Start programs,
and community-based child care programs.
new text end

new text begin (b) Qualified preschool programs may include preschool programs operated by
school districts, private preschool programs, Head Start programs, and child care programs
with an educational component.
new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin (a) A school district may provide preschool programming or
contract with a qualifying program to provide preschool services for eligible children. A
district may establish a new program where no existing reasonably accessible program
meets the requirements in subdivision 3. A district that contracts for services must submit
a copy of each contract to the commissioner. The payment from the school district to a
contract provider for a child enrolled for the full year must not exceed the basic general
education formula allowance attributable to that child for that year.
new text end

new text begin (b) A qualified program that offers additional services including home visits, parent
supports, social services, and health referrals for the most at-risk children may receive a
bonus in the amount of ten percent of the per-child payment rate for each child served.
new text end

new text begin Subd. 5. new text end

new text begin Participation. new text end

new text begin A school district or contracted program qualifying under
this section may also participate in the early learning scholarship program under section
124D.165.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2016
and later.
new text end

Sec. 2.

Minnesota Statutes 2014, section 124D.59, subdivision 2, is amended to read:

Subd. 2.

English learner.

(a) "English learner" means a pupil in kindergarten through
grade 12 who meets the requirements under subdivision 2a or the following requirements:

(1) the pupil, as declared by a parent or guardian first learned a language other than
English, comes from a home where the language usually spoken is other than English, or
usually speaks a language other than English; and

(2) the pupil is determined by a valid assessment measuring the pupil's English
language proficiency and by developmentally appropriate measures, which might include
observations, teacher judgment, parent recommendations, or developmentally appropriate
assessment instruments, to lack the necessary English skills to participate fully in
academic classes taught in English.

(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in
the previous school year took a commissioner-provided assessment measuring the pupil's
emerging academic English, shall be counted as an English learner in calculating English
learner pupil units under section 126C.05, subdivision 17, and shall generate state English
learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff
score or is otherwise counted as a nonproficient participant on the assessment measuring
the pupil's emerging academic English, or, in the judgment of the pupil's classroom
teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
academic language proficiency in English, including oral academic language, sufficient to
successfully and fully participate in the general core curriculum in the regular classroom.

(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade
12 shall not be counted as an English learner in calculating English learner pupil units
under section 126C.05, subdivision 17, and shall not generate state English learner aid
under section 124D.65, subdivision 5, if:

(1) the pupil is not enrolled during the current fiscal year in an educational program
for English learners under sections 124D.58 to 124D.64; or

(2) the pupil has generated deleted text begin six deleted text end new text begin seven new text end or more years of average daily membership in
Minnesota public schools since July 1, 1996.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2016
and later.
new text end

Sec. 3.

Minnesota Statutes 2014, section 125A.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section and section 125A.79,
the definitions in this subdivision apply.

(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

(c) "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing services to students. Essential personnel may also include
special education paraprofessionals or clericals providing support to teachers and students
by preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individualized education programs. Essential
personnel does not include administrators and supervisors.

(d) "Average daily membership" has the meaning given it in section 126C.05.

(e) "Program growth factor" means 1.046 for fiscal years 2012 through 2015, 1.0
for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the program
growth factor for the previous year for fiscal year 2018 and later.

(f) "Nonfederal special education expenditure" means all direct expenditures that
are necessary and essential to meet the district's obligation to provide special instruction
and services to children with a disability according to sections 124D.454, 125A.03 to
125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
the department under section 125A.75, subdivision 4, excluding expenditures:

(1) reimbursed with federal funds;

(2) reimbursed with other state aids under this chapter;

(3) for general education costs of serving students with a disability;

(4) for facilities;

(5) for pupil transportation; and

(6) for postemployment benefits.

(g) "Old formula special education expenditures" means expenditures eligible for
revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.

(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
fringe benefits of one-to-one instructional and behavior management aides and one-to-one
licensed, certified professionals assigned to a child attending the academy, if the aides or
professionals are required by the child's individualized education program.

(i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 2014
and 2.27 percent for fiscal year 2015.

(j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
for fiscal year 2015.

(k) "Special education aid increase limit" means deleted text begin $80 deleted text end new text begin $200 new text end for fiscal year 2016,
deleted text begin $100 deleted text end new text begin $400 new text end for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special
education aid increase limit for the previous fiscal year and deleted text begin $40 deleted text end new text begin $200 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2016
and later.
new text end

Sec. 4.

Minnesota Statutes 2014, section 125A.76, subdivision 2c, is amended to read:

Subd. 2c.

Special education aid.

(a) For fiscal year 2014 and fiscal year 2015, a
district's special education aid equals the sum of the district's special education aid under
subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and the
district's excess cost aid under section 125A.79, subdivision 7.

(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
the district's special education initial aid under subdivision 2a and the district's excess cost
aid under section 125A.79, subdivision 5.

deleted text begin (c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
a school district must not exceed the sum of the special education aid the district would
have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
127A.47, subdivision 7, and the product of the district's average daily membership served
and the special education aid increase limit.
deleted text end

deleted text begin (d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
aid for a school district must not exceed the sum of: (i) the product of the district's average
daily membership served and the special education aid increase limit and (ii) the product
of the sum of the special education aid the district would have received for fiscal year 2016
under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
the district's average daily membership served for the current fiscal year to the district's
average daily membership served for fiscal year 2016, and the program growth factor.
deleted text end

deleted text begin (e) deleted text end new text begin (c) new text end Notwithstanding paragraph (b), for fiscal year 2016 and later the special
education aid for a school district, not including a charter school, must not be less than the
lesser of (1) the district's nonfederal special education expenditures for that fiscal year or
(2) the product of the sum of the special education aid the district would have received
for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as
adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision
7, the ratio of the district's adjusted daily membership for the current fiscal year to the
district's average daily membership for fiscal year 2016, and the program growth factor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2016
and later.
new text end

Sec. 5.

Minnesota Statutes 2014, section 125A.79, subdivision 5, is amended to read:

Subd. 5.

Excess cost aid.

For fiscal year 2016 and later, a district's excess cost
aid equals the greater of:

(1) deleted text begin 56 deleted text end new text begin 100 new text end percent of the difference between (i) the district's unreimbursed nonfederal
special education expenditures and (ii) 7.0 percent of the district's general revenue;

(2) deleted text begin 62 deleted text end new text begin 100 new text end percent of the difference between (i) the district's unreimbursed old formula
special education expenditures and (ii) 2.5 percent of the district's general revenue; or

(3) zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2016
and later.
new text end

Sec. 6.

Minnesota Statutes 2014, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
in average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
section 124D.10; or for whom the resident district pays tuition under section 123A.18,
123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individualized education program is counted as the ratio
of the number of hours of assessment and education service to 825 times 1.0 with a
minimum average daily membership of 0.28, but not more than 1.0 pupil unit.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.0.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individualized education
program to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
unit if the pupil is enrolled in a free all-day, every day kindergarten program available to
all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day,
every day kindergarten program available to all kindergarten pupils at the pupil's school.

(e) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.

(f) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(g) A pupil who is in the postsecondary enrollment options program is counted
as 1.2 pupil units.

new text begin (h) A pupil who is at least four years of age as of September 1, and not included
in paragraphs (a) to (g), is counted as 1.0 pupil units for purposes of section 126C.10,
subdivision 2, only.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2016
and later.
new text end

Sec. 7.

Minnesota Statutes 2014, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

For fiscal year 2014, the basic revenue for each district
equals the formula allowance times the adjusted marginal cost pupil units for the school
year. For fiscal year 2015 and later, the basic revenue for each district equals the formula
allowance times the adjusted pupil units for the school year. deleted text begin The formula allowance for
fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. deleted text end The
formula allowance for fiscal year 2015 deleted text begin and later deleted text end is $5,831. new text begin The formula allowance for
fiscal year 2016 is $....... and the formula allowance for fiscal year 2017 and later is $........
new text end

Sec. 8.

Minnesota Statutes 2014, section 126C.10, subdivision 2a, is amended to read:

Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue deleted text begin for
fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
cost pupil units of the district for each pupil in average daily membership in excess of 1.0
and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
time revenue for fiscal year 2015 and later deleted text end is equal to the product of $5,017 new text begin , the ratio of
the basic formula allowance for the current year to $5,831, new text end and the sum of the adjusted
pupil units of the district for each pupil in average daily membership in excess of 1.0 and
less than 1.2 according to section 126C.05, subdivision 8.

(b) A school district's extended time revenue may be used for extended day
programs, extended week programs, summer school, and other programming authorized
under the learning year program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2016
and later.
new text end