SF 1107

as introduced - 88th Legislature (2013 - 2014) Posted on 03/08/2013 09:58am

A bill for an act
relating to education finance; modifying integration revenue; amending
Minnesota Statutes 2012, section 124D.86; Laws 2011, First Special Session
chapter 11, article 2, section 51; repealing Minnesota Statutes 2012, section
124D.86, subdivision 6.

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

Section 1.

Minnesota Statutes 2012, section 124D.86, is amended to read:

124D.86 INTEGRATION REVENUE.

Subdivision 1.

Use of revenue.

Districts must use integration revenue under this
section for programs established under a desegregation plan filed with the Department of
Education according to Minnesota Rules, parts 3535.0100 to 3535.0180, or under court
order. The revenue must be used for students to have increased and sustained interracial
contacts and improved educational opportunities and outcomes designed to close the
academic achievement gap between white students and protected students as defined
in Minnesota Rules, part 3535.0110, subpart 4, deleted text begin through classroom experiences, staff
initiatives, and other educationally related programs, deleted text end consistent with subdivision 1b.

Subd. 1a.

deleted text begin Budget approval process deleted text end new text begin Integration planning and development new text end .

deleted text begin Each year before deleted text end A district deleted text begin receives any deleted text end new text begin entitled to receive new text end revenue under subdivision 3 deleted text begin ,
the district by March 15 deleted text end must submit to the Department of Education, for its review deleted text begin and
approval by May 15 a budget detailing the costs of the desegregation/integration plan filed
under Minnesota Rules, parts 3535.0100 to 3535.0180. Notwithstanding chapter 14,
the department may develop criteria for budget approval, consistent with subdivision
1b. The department shall consult with the Desegregation Advisory Board in developing
these criteria. The criteria developed by the department must address, at a minimum, the
following: deleted text end new text begin , an integration and achievement plan with the following items for each use
of revenue categorized in subdivision 1b:
new text end

deleted text begin (1) budget items cannot be approved unless they are part of any overall desegregation
plan approved by the district for isolated sites or by the Multidistrict Collaboration
Council and participating individual members;
deleted text end

deleted text begin (2) the budget must indicate how revenue expenditures will be used specifically
to support increased and sustained interracial contacts and improved educational
opportunities and outcomes designed to close the academic achievement gap between
white students and protected students as defined in Minnesota Rules, part 3535.0110,
subpart 4, consistent with subdivision 1b;
deleted text end

deleted text begin (3) components of the budget to be considered by the department, including staffing,
curriculum, transportation, facilities, materials, and equipment and reasonable planning
costs, as determined by the department; and
deleted text end

deleted text begin (4) if plans are proposed to enhance existing programs, the total budget being
appropriated to the program must be included, indicating what part is to be funded using
integration revenue and what part is to be funded using other revenues.
deleted text end

new text begin (1) measurable goals related to increasing and sustaining interracial contacts and
outcomes designed to close the academic achievement gap between enrolled protected
class students, American Indian students, and white students within the district;
new text end

new text begin (2) a budget detailing the use of revenue and aligning the use of integration revenue
with each of the goals;
new text end

new text begin (3) specific criteria with valid and reliable measures outlining how the district will
measure whether it has met its plan goals; and
new text end

new text begin (4) a process to evaluate the success of its plan using specific student data with
results reported to the Department of Education and shared on the district's Web site.
new text end

Subd. 1b.

deleted text begin Plan components deleted text end new text begin Use of revenue new text end .

deleted text begin Each year a district's board must
approve the plans submitted by each district under Minnesota Rules, parts 3535.0160 and
3535.0170, before integration revenue is awarded. If a district is applying for revenue for
a plan that is part of a multidistrict council, the individual district shall not receive revenue
unless it ratifies the plan adopted by its multidistrict council or approves a modified plan
with a written explanation of any modifications. Each plan shall:
deleted text end

deleted text begin (1) identify the integration issues at the sites or districts covered by Minnesota
Rules, parts 3535.0100 to 3535.0180;
deleted text end

deleted text begin (2) describe the community outreach that preceded the integration plan, such that the
commissioner can determine whether the membership of the planning councils complied
with the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180;
deleted text end

deleted text begin (3) identify specific goals of the integration plan that is premised on valid and
reliable measures, effective and efficient use of resources, and continuous adaptation of
best practices;
deleted text end

deleted text begin (4) provide for implementing innovative and practical strategies and programs such
as magnet schools, transportation, research-based programs to improve the performance of
protected students with lower measured achievement on state or local assessments, staff
development for teachers in cultural competency, formative assessments, and increased
numbers of teachers of color that enable the district to achieve annual progress in realizing
the goals in its plan; and
deleted text end

deleted text begin (5) establish valid and reliable longitudinal measures for the district to use in
demonstrating to the commissioner the amount of progress it has achieved in realizing
the goals in its plan.
deleted text end

deleted text begin By June 30 of the subsequent fiscal year, each district shall report to the commissioner in
writing about the extent to which the integration goals identified in the plan were met.
deleted text end

new text begin (a) Each district may use revenue for the following purposes aligned with the
district's strategic plan:
new text end

new text begin (1) innovative and integrated learning environments, including magnet schools that:
new text end

new text begin (i) are designed to promote and sustain interracial contact within the district or
across the district's integration achievement zone;
new text end

new text begin (ii) use innovative and research-based instructional approaches;
new text end

new text begin (iii) use interventions to increase achievement; or
new text end

new text begin (iv) provide options for student choice and opportunities for rigorous courses;
new text end

new text begin (2) family engagement that promotes involvement in the academic life and success
of students and to bridge cultural understanding;
new text end

new text begin (3) professional development for staff that focuses on:
new text end

new text begin (i) increasing the achievement of students of color;
new text end

new text begin (ii) presenting multiple perspectives and understanding about culture, cultural
competency, and racial diversity; or
new text end

new text begin (iii) ways to differentiate instruction to meet the needs of all students;
new text end

new text begin (4) access to opportunity through programming that is proven to increase rigor and
that focuses on the college and career readiness of underserved populations; or
new text end

new text begin (5) increases the diversity of teachers, administrators, and other school staff.
new text end

new text begin (b) A district's proposed expenditures of integration revenue shall be presented in
public hearings held before a school board approves its general budget for the subsequent
fiscal year. No more than ten percent of the annual total integration revenue budget may
be used for administrative or indirect costs. Actual expenditures of a district's integration
revenue shall be available for review on a district's Web site and shall be included in the
district's annual uniform financial accounting and reporting standards report.
new text end

new text begin (c) The Department of Education shall provide technical assistance and support to
districts on allowable or effective uses of revenue and shall review and monitor districts'
uniform financial accounting and reporting standards submissions detailing their use of
integration revenue.
new text end

new text begin (d) Consistent with paragraph (a), districts may use revenue under this section to
develop a collaborative achievement zone district through an existing or new joint powers
agreement under section 471.59.
new text end

new text begin Subd. 1c. new text end

new text begin Timeline and implementation. new text end

new text begin Plans must be approved by the local
board and submitted to the Department of Education no later than May 15. If a district is
applying for revenue for a plan that is part of a multidistrict council, the individual district
shall not receive revenue unless it ratifies the plan adopted by its multidistrict council.
Each plan shall be in place for a duration of three years
new text end

Subd. 2.

Separate account.

Integration revenue shall be maintained in a separate
account to identify expenditures for salaries and programs related to this revenue.

Subd. 3.

Integration revenue.

deleted text begin Integration revenue equals the following amounts:
deleted text end

deleted text begin (1) for Independent School District No. 709, Duluth, $206 times the adjusted pupil
units for the school year;
deleted text end

deleted text begin (2) for Independent School District No. 625, St. Paul, $445 times the adjusted
pupil units for the school year;
deleted text end

deleted text begin (3) for Special School District No. 1, Minneapolis, the sum of $445 times the
adjusted pupil units for the school year and an additional $35 times the adjusted pupil units
for the school year that is provided entirely through a local levy;
deleted text end

deleted text begin (4) for a district not listed in clause (1), (2), or (3), that must implement a plan
under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of
protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent,
the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the aid
received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school year;
deleted text end

deleted text begin (5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement
a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180,
the lesser of
deleted text end

deleted text begin (i) the actual cost of implementing the plan during the fiscal year minus the aid
received under subdivision 6, or
deleted text end

deleted text begin (ii) $92 times the adjusted pupil units for the school year.
deleted text end

deleted text begin Any money received by districts in clauses (1) to (3) which exceeds the amount
received in fiscal year 2000 shall be subject to the budget requirements in subdivision
1a; and
deleted text end

deleted text begin (6) for a member district of a multidistrict integration collaborative that files a plan
with the commissioner, but is not contiguous to a racially isolated district, integration
revenue equals the amount defined in clause (5).
deleted text end

new text begin Integration revenue for an eligible district equals the lesser of the district's
expenditure for the fiscal year under its budget according to subdivision 1a or the greater
of: (1) 90 percent of the district's integration revenue for fiscal year 2013 under Minnesota
Statutes 2012, section 124D.86, or (2) the sum of: (i) $315 times the district's adjusted
pupil units for the prior fiscal year computed using the pupil unit weights effective under
section 126C.05 for fiscal year 2015 and later, times the district's enrollment of protected
students as a percent of its total enrollment on October 1 of the prior fiscal year, plus (ii)
$100 times the district's adjusted pupil units for the prior fiscal year computed using the
pupil unit weights effective under section 126C.05 for fiscal year 2015 and later times the
district's enrollment of protected students as a percent of its total enrollment on October
1 of the prior fiscal year times the district's focus rating for the prior fiscal year under
Minnesota's 2012 Elementary and Secondary Education Act flexibility request.
new text end

Subd. 4.

Integration levy.

deleted text begin A district may levy an amount equal to 37 percent for
fiscal year 2003, 23 percent for fiscal year 2004, and 30 percent for fiscal year 2005
and thereafter of the district's integration revenue as defined in subdivision 3. deleted text end new text begin A district
may levy an amount equal to 30 percent of the district's integration revenue as defined
in subdivision 3. The Department of Education must adjust the levy for taxes payable in
2014 by the difference between the integration levy under this section and the amount
levied by the district under Laws 2011, First Special Session chapter 11, article 2, section
49, paragraph (f).
new text end

Subd. 5.

Integration aid.

A district's integration aid equals the difference between
the district's integration revenue and its integration levy.

Subd. 6.

Alternative attendance programs.

(a) The integration aid under
subdivision 5 must be adjusted for each pupil residing in a district eligible for integration
revenue under subdivision 3, clause (1), (2), or (3), and attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, and 124D.08, that is not eligible for
integration revenue under subdivision 3, clause (1), (2), or (3), and has implemented a plan
under Minnesota Rules, parts 3535.0100 to 3535.0180, if the enrollment of the pupil in the
nonresident district contributes to desegregation or integration purposes. The adjustments
must be made according to this subdivision.

(b) Aid paid to a district serving nonresidents must be increased by an amount equal
to the revenue per pupil unit of the resident district under subdivision 3, clause (1), (2), or
(3), minus the revenue attributable to the pupil in the nonresident district under subdivision
3, clause (4), (5), or (6), for the time the pupil is enrolled in the nonresident district.

Sec. 2.

Laws 2011, First Special Session chapter 11, article 2, section 51, is amended to
read:

Sec. 51. REPEALER.

(a) Minnesota Statutes 2010, sections 124D.871; and 124D.88, are repealed effective
for fiscal year 2012 and later.

(b) Minnesota Statutes 2010, sections 123B.05; and 124D.38, subdivisions 4, 5,
and 6, are repealed.

(c) Minnesota Statutes 2010, section 124D.11, subdivision 8, is repealed effective
for fiscal year 2013 and later.

deleted text begin (d) deleted text end deleted text begin Minnesota Statutes 2010, section 124D.86, deleted text end deleted text begin is repealed effective for revenue
for fiscal year 2014.
deleted 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. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 124D.86, subdivision 6, new text end new text begin is repealed for fiscal
year 2014 and later.
new text end