SF 62

as introduced - 90th Legislature (2017 - 2018) Posted on 01/12/2017 08:41am

A bill for an act
relating to education; modifying the calculation of special education aid; increasing
school district basic revenue; indexing basic revenue to inflation; authorizing a
school district to renew an expiring referendum by action of the school board;
appropriating money; amending Minnesota Statutes 2016, sections 125A.76,
subdivisions 1, 2c; 125A.79, subdivision 5; 126C.10, subdivision 2; 126C.17, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, 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 $80 for fiscal year 2016 deleted text begin , deleted text end new text begin and new text end $100 for
fiscal year 2017 deleted text begin , and, for fiscal year 2018 and later, the sum of the special education aid
increase limit for the previous fiscal year and $40 deleted text end .

(l) "District" means a school district, a charter school, or a cooperative unit as defined
in section 123A.24, subdivision 2. Notwithstanding section 123A.26, cooperative units as
defined in section 123A.24, subdivision 2, are eligible to receive special education aid under
this section and section 125A.79.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2018 and later.
new text end

Sec. 2.

Minnesota Statutes 2016, section 125A.76, subdivision 2c, is amended to read:

Subd. 2c.

Special education aid.

(a) 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.

(b) Notwithstanding paragraph (a), 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.

(c) Notwithstanding paragraph (a), for fiscal year 2017 deleted text begin and later deleted text end , 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.

(d) Notwithstanding paragraph (a), for fiscal year 2016 and later the special education
aid for a school district, not including a charter school or cooperative unit as defined in
section 123A.24, 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.

(e) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first year
of operation shall generate special education aid based on current year data. A newly formed
cooperative unit as defined in section 123A.24 may apply to the commissioner for approval
to generate special education aid for its first year of operation based on current year data,
with an offsetting adjustment to the prior year data used to calculate aid for programs at
participating school districts or previous cooperatives that were replaced by the new
cooperative.

(f) The department shall establish procedures through the uniform financial accounting
and reporting system to identify and track all revenues generated from third-party billings
as special education revenue at the school district level; include revenue generated from
third-party billings as special education revenue in the annual cross-subsidy report; and
exclude third-party revenue from calculation of excess cost aid to the districts.

Sec. 3.

Minnesota Statutes 2016, 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 75 new text end percent of the difference between (i) the district's unreimbursed nonfederal
special education expenditures and (ii) deleted text begin 7.0 deleted text end new text begin 5.0 new text end percent of the product of the ratio of $5,831
to the formula allowance for the prior year and the district's general revenue;

(2) deleted text begin 62 deleted text end new text begin 75 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 product of the ratio of $5,831 to
the formula allowance for the prior year and 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 in fiscal year 2018 and later.
new text end

Sec. 4.

Minnesota Statutes 2016, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

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
2015 is $5,831. deleted text end The formula allowance for fiscal year 2016 is $5,948. The formula allowance
for fiscal year 2017 deleted text begin and later deleted text end is $6,067. new text begin The formula allowance for fiscal year 2018 is $6,219.
The formula allowance for fiscal year 2019 is $6,375. The formula allowance for fiscal year
2020 and later equals the formula allowance for fiscal year 2019 times the sum of one plus
the percentage change in the Consumer Price Index for urban consumers, as prepared by
the United States Bureau of Labor Statistics for the current fiscal year to fiscal year 2019.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2018 and later.
new text end

Sec. 5.

Minnesota Statutes 2016, section 126C.17, is amended by adding a subdivision to
read:

new text begin Subd. 9b. new text end

new text begin Renewal by school board. new text end

new text begin (a) Notwithstanding the election requirements of
subdivision 9, a school board may renew an expiring referendum by board action if:
new text end

new text begin (1) the per-pupil amount of the referendum is the same as the amount expiring;
new text end

new text begin (2) the term of the renewed referendum is no longer than the initial term approved by
the voters; and
new text end

new text begin (3) the school board has adopted a written resolution authorizing the renewal after holding
a meeting and allowing public testimony on the proposed renewal.
new text end

new text begin (b) The resolution must be adopted by the school board by June 15 of any calendar year
and becomes effective 60 days after its adoption.
new text end

new text begin (c) A referendum expires in the last fiscal year in which the referendum generates revenue
for the school district. A school board may renew an expiring referendum under this
subdivision not more than two fiscal years before the referendum expires.
new text end

new text begin (d) A district renewing an expiring referendum under this subdivision must submit a
copy of the adopted resolution to the commissioner and to the county auditor no later than
September 1 of the calendar year in which the levy is certified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 6. new text begin APPROPRIATIONS.
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 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 General education aid. new text end

new text begin For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2018 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2019 new text end

new text begin The 2018 appropriation includes $....... for 2017 and $....... for 2018. The 2019
appropriation includes $....... for 2018 and $....... for 2019.
new text end

new text begin Subd. 3. new text end

new text begin Special education; regular. new text end

new text begin For special education aid under Minnesota Statutes,
section 125A.75:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2018 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2019 new text end

new text begin The 2018 appropriation includes $....... for 2017 and $....... for 2018. The 2019
appropriation includes $....... for 2018 and $....... for 2019.
new text end