SF 489

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:47am

A bill for an act
relating to education finance; requiring the Department of Education to hire a
consultant to work with districts to share services; creating a competition among
school districts; creating an incentive for districts to share services; appropriating
money.

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

Section 1. new text begin SHARED SERVICES CONSULTATION SERVICES.
new text end

new text begin The commissioner of education shall enter into a three-year contract with a
consultant to study specific services or activities across school districts and charter schools
to make recommendations about combining services and activities in order to promote
improved service delivery, efficiency, and economy of operation. The commissioner of
education shall require the consultant to develop an implementation plan for all school
districts to participate in shared services. The consultant must work cooperatively with
school districts, charter schools, regional service cooperatives, regional management
information centers, and their employees to develop this plan. The department must
contract with a consultant that agrees to receive payment as a percentage of shared
services savings as measured under section 2, subdivision 2. The percentage must not
exceed five percent of the savings computed according to section 2, subdivision 2, in
fiscal years 2012, 2013, and 2014.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin SHARED SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Shared services arrangement. new text end

new text begin School districts, charter schools, and
their employees may work with a shared services consultant intermediate school district, a
regional service cooperative, or a regional management information center to create and
implement a plan that maximizes the benefits of shared services.
new text end

new text begin Subd. 2. new text end

new text begin Savings measurement. new text end

new text begin School districts and charter schools that develop
a shared services arrangement under subdivision 1 are encouraged to work with their
employees and a shared services consultant to develop a method for measuring school
district or charter school savings as a result of utilizing shared services under this section.
This method must calculate savings for each individual district or charter school. The
savings must be allocated to classroom education in each school district or charter school.
Each school district and charter school must annually report the savings calculated under
this section to the commissioner of education by January 15, 2013; January 15, 2014; and
January 15, 2015.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commissioner of education must annually report by February
15, 2013; February 15, 2014; and February 15, 2015, to the education finance committees
of the legislature on the savings that shared services generate for the state's school districts
and charter schools. In addition, the report shall evaluate the total savings per adjusted
average daily membership within each economic development region under Minnesota
Statutes, section 462.385, in the state. The report shall identify the economic development
region that generated the largest savings per adjusted average daily membership. Savings
per adjusted average daily membership must be calculated as the total savings of
participating school districts and charter schools divided by the adjusted average daily
membership of participating school districts and charter schools.
new text end

Sec. 3. new text begin SHARED SERVICES DEDUCTION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, for fiscal
years 2012 , 2013, and 2014 only, a school district's or charter school's general education
aid must equal the amount computed under Minnesota Statutes, section 126C.13,
subdivision 4, minus five percent of the savings computed under section 2, subdivision 2.
new text end

new text begin (b) Notwithstanding paragraph (a), the deduction under this section shall be equal to
the contracted percentage under section 1 between the Department of Education and the
consultant. The department must reduce the deduction under this section if the department
and the consultant agree to a contract under section 1, in which the consultant is paid as a
percentage of savings that is less than five percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin SAVINGS ALLOCATION.
new text end

new text begin Notwithstanding section 2, in fiscal years 2012, 2013, and 2014 only, savings
computed according to section 2, subdivision 2, minus the contracted percentage paid to
the shared services consultant under section 1 must be allocated to classroom education
in each school district or charter school.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin SHARED SERVICES COMPETITION.
new text end

new text begin (a) School districts within each economic development region under Minnesota
Statutes, section 462.385, are encouraged to work together to share services to maximize
the savings generated per adjusted average daily membership. For fiscal years 2012,
2013, and 2014, the school districts and charter schools in each economic development
region with the most shared services savings in each year are eligible for a shared services
savings grant under paragraph (b).
new text end

new text begin (b) The commissioner shall award a shared services grant to the participating
school districts and charter schools of the economic development region that generates
the most savings per adjusted average daily membership, as reported according to section
2, subdivision 3. The shared services grants shall be equal per adjusted average daily
membership among all participating school districts and charter schools, and may be up to
$500 per adjusted average daily membership. The total grant per year may not exceed
$5,000,000 each year.
new text end

Sec. 6. new text begin APPROPRIATION; SHARED SERVICES CONSULTANT.
new text end

new text begin For fiscal years 2012 and 2013, the amount deducted from general education aid
under section 3 is appropriated to the Department of Education for the costs of the contract
associated with shared services consultation under section 1.
new text end

Sec. 7. 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 Shared services grants.
new text end

	new text begin $ new text end	new text begin 5,000,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 5,000,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The base appropriation is $5,000,000 for fiscal year 2014 and $0 for fiscal year 2015.
new text end