SF 752

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; eliminating certain school district reserve fund
requirements; eliminating certain reports; making certain primary elections
discretionary; amending Minnesota Statutes 2006, sections 123A.05, subdivision
2; 123A.27; 123B.10; 123B.143, subdivision 1; 123B.77, subdivision 4;
205A.03, subdivision 1; repealing Minnesota Statutes 2006, sections 123A.05,
subdivision 2; 123B.749; 124D.081, subdivision 9; 124D.69, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 123A.05, subdivision 2, is amended to
read:

Subd. 2.

Reserve revenue.

Each district that is a member of an area learning
center must deleted text begin reserve deleted text end new text begin transfer new text end revenue new text begin to the area learning center new text end in an amount equal to
the sum of (1) 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 attending an area learning
center program under this section, plus (2) the amount of basic skills revenue generated
by pupils attending the area learning center. deleted text begin The amount of reserved revenue under this
subdivision may only be spent on program costs associated with the area learning center.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123A.27, is amended to read:

123A.27 deleted text begin RESERVED deleted text end REVENUE FOR DISTRICT COOPERATION new text begin ;
MINIMUM SPENDING LEVELS new text end .

A district that was a member of an intermediate school district organized pursuant
to chapter 136D on July 1, 1996, new text begin annually new text end must deleted text begin place a portion of its general education
revenue in a reserved account for instructional services from entities formed for
cooperative services for special education programs and secondary vocational programs.
The deleted text end new text begin spend an new text end amount deleted text begin reserved is deleted text end equal to the levy made according to Minnesota Statutes
1993 Supplement, section 124.2727, subdivision 6, for taxes payable in 1994 divided by
the actual pupil units in the intermediate school district for fiscal year 1995 times the
number of actual pupil units in the school district in 1995 new text begin on cooperative services for
special education and secondary vocational services new text end . The district must use 5/11 of the
revenue for special education and 6/11 of the revenue for secondary vocational education.
The district must demonstrate that the revenue is being used to provide the full range
of special education and secondary vocational programs and services available to each
child served by the intermediate. The secondary vocational programs and services must
meet the requirements established in an articulation agreement developed between the
commissioner of education and the Board of Trustees of the Minnesota State Colleges
and Universities.

A district that was a member of an education district organized pursuant to section
123A.15 on July 1, 1999, new text begin annually new text end must deleted text begin place a portion of its general education revenue in
a reserve account for instructional services from entities formed for cooperative services. deleted text end new text begin
spend at least $50 times the district's adjusted marginal cost pupil units on services
provided by entities formed for cooperative purposes. These new text end services may include
secondary vocational programs, special education programs, staff development, and gifted
and talented instruction. deleted text begin The amount reserved is equal to $50 per pupil unit times the
actual number of pupil units in the district. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 123B.10, is amended to read:

123B.10 deleted text begin PUBLICATION OF deleted text end FINANCIAL INFORMATION.

new text begin Subdivision 1. new text end

new text begin Form of notification. new text end

new text begin A school board annually must notify the
public of its revenue, expenditures, fund balances, and other relevant budget information.
The board must include the budget information required by this section in the materials
provided as a part of its truth in taxation hearing, post the materials in a conspicuous place
on the district's official Web site, including a link to the district's school report card on the
Department of Education's Web site, and publish the information in a qualified newspaper
of general circulation in the district.
new text end

Subdivision deleted text begin 1 deleted text end new text begin 1a new text end .

Budgets.

Every board must publish revenue and expenditure
budgets for the current year and the actual revenues, expenditures, fund balances for
the prior year and projected fund balances for the current year in a form prescribed by
the commissioner within one week of the acceptance of the final audit by the board,
or November 30, whichever is earlier. The forms prescribed must be designed so that
year to year comparisons of revenue, expenditures and fund balances can be made.
deleted text begin These budgets, reports of revenue, expenditures and fund balances must be published in
a qualified newspaper of general circulation in the district or on the district's official
Web site. If published on the district's official Web site, the district must also publish an
announcement in a qualified newspaper of general circulation in the district that includes
the Internet address where the information has been posted.
deleted text end

Subd. 2.

Debt summary.

The board must also publish at the same time a summary
of bonds outstanding, paid, and sold; a summary of orders not paid for want of funds;
certificates of indebtedness for the year ending June 30; the statutory operating debt of the
district as defined and certified pursuant to section 123B.81; and the balance amount of the
reserved fund balance reserve account for purposes of statutory operating debt reduction
established pursuant to sections 126C.40 to 126C.45, 126C.48, and 124D.22.

Subd. 3.

Budget inspection.

A statement must be included in the publication
that the complete budget in detail may be inspected by any resident of the district upon
request to the chief school administrator.

Subd. 4.

Cost per pupil.

The board must also publish at the same time the average
cost per pupil in average daily membership educated in that district in the preceding year.
This computation must be made exclusive of debt service or capital outlay costs.

Sec. 4.

Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner; new text begin and
new text end

(5) deleted text begin by January 10, submit an annual report to the commissioner in a manner
prescribed by the commissioner, in consultation with school districts, identifying the
expenditures that the district requires to ensure an 80 percent student passage rate on the
basic standards test taken in the eighth grade, identifying the highest student passage
rate the district expects it will be able to attain on the basic standards test by grade 12,
the amount of expenditures that the district requires to attain the targeted student passage
rate, and how much the district is cross-subsidizing programs with special education, basic
skills, and general education revenue; and
deleted text end

deleted text begin (6) deleted text end perform other duties prescribed by the board.

Sec. 5.

Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:

Subd. 4.

Budget approval.

Prior to July 1 of each year, the board of each district
must approve and adopt its revenue and expenditure budgets for the next school year.
The budget document so adopted must be considered an expenditure-authorizing or
appropriations document. No funds shall be expended by any board or district for any
purpose in any school year prior to the adoption of the budget document which authorizes
that expenditure, or prior to an amendment to the budget document by the board to
authorize the expenditure. Expenditures of funds in violation of this subdivision shall be
considered unlawful expenditures. deleted text begin Prior to the appropriation of revenue for the next
school year in the initial budget, the board shall inform the principal or other responsible
administrative authority of each site of the amount of general education and referendum
revenue that the Department of Education estimates will be generated by the pupils
in attendance at each site. For purposes of this subdivision, a district may adjust the
department's estimates for school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or student demographics
not reflected in the department's calculations. A district must report to the department
any adjustments it makes according to this subdivision in the department's estimates
of compensatory revenue generated by the pupils in attendance at each site, and the
department must use the adjusted compensatory revenue estimates in preparing the report
required under section 123B.76, subdivision 3, paragraph (c). deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 6.

Minnesota Statutes 2006, section 205A.03, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Required deleted text end Primary deleted text begin in certain circumstances deleted text end new text begin required only
after adoption of a resolution new text end .

In a school district election, if there are more than two
candidates for a specified school board position or more than twice as many school board
candidates as there are at-large school board positions available, a school district deleted text begin must deleted text end new text begin
may, at its discretion, new text end hold a primary. new text begin A primary is required only if the school board has
adopted a resolution by June 1 of any year to that affect. The resolution, when adopted, is
effective for all ensuing elections of board members in that district until it is revoked.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following enactment and
applies to school board elections held after June 1, 2007.
new text end

Sec. 7. new text begin RESERVE ACCOUNTS REPEALED.
new text end

new text begin The following school district reserve accounts are repealed June 30, 2006:
new text end

new text begin (1) reserve for class size, all day kindergarten and special education created under
Laws 1999, chapter 241, article 1, section 67;
new text end

new text begin (2) reserve for parental involvement programs created under Laws 1991, chapter
265, article 1, section 25;
new text end

new text begin (3) reserves for graduation standards created under Laws 1998, chapter 398, article
1, section 31;
new text end

new text begin (4) reserve for student transportation safety created under Laws 1994, chapter 647,
article 12, section 8;
new text end

new text begin (5) reserve for bus purchases from the account initially entitled "pupil transportation
fund reserved for bus purchases;" and
new text end

new text begin (6) reserve for certain teacher programs created under Laws 1989, chapter 329,
article 7, section 7.
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. 8. new text begin DEPARTMENT OF EDUCATION REPORT.
new text end

new text begin The Department of Education must provide a report to the education committees
of the legislature by January 15, 2008. The report must analyze the department's data
collection procedures under each of the department's major data reporting systems and
recommend a streamlined, Web-based system of reporting school district data. The report
must also analyze any stand-alone school district reporting requirements and recommend
elimination of any district reports that are duplicative of other data already collected
by the department.
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. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 123A.05, subdivision 2; 123B.749; 124D.081,
subdivision 9; and 124D.69, subdivision 2, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end