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Minnesota Legislature

Office of the Revisor of Statutes

SF 1198

as introduced - 91st Legislature (2019 - 2020) Posted on 04/01/2019 04:14pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education; modifying certain special education formulas; adjusting the
fiscal year 2016 base for the Duluth School District; appropriating money;
amending Minnesota Statutes 2018, sections 124E.21, subdivision 1; 127A.47,
subdivision 7.

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

Section 1.

Minnesota Statutes 2018, section 124E.21, subdivision 1, is amended to read:


Subdivision 1.

Special education aid.

(a) Except as provided in section 124E.23, special
education aid must be paid to a charter school according to section 125A.76, as though it
were a school district.

(b) deleted text beginFor fiscal year 2015 and later,deleted text end The special education aid paid to the charter school
shall be adjusted as follows:

(1) if the charter school does not receive general education revenue on behalf of the
student according to section 124E.20, the aid shall be adjusted as provided in section
125A.11; or

(2) if the charter school receives general education revenue on behalf of the student
according to section 124E.20, the aid shall be adjusted as provided in section 127A.47,
subdivision 7
, paragraphs (b) to deleted text begin(e)deleted text endnew text begin (j)new text end.

Sec. 2.

Minnesota Statutes 2018, section 127A.47, subdivision 7, is amended to read:


Subd. 7.

Alternative attendance programs.

(a) The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
must be made according to this subdivision.

(b) For purposes of this subdivision, the "unreimbursed cost of providing special
education and services" means the difference between: (1) the actual cost of providing
special instruction and services, including special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, for a pupil
with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51,
who is enrolled in a program listed in this subdivision, minus (2) if the pupil receives special
instruction and services outside the regular classroom for more than 60 percent of the school
day, the amount of general education revenue, excluding local optional revenue, plus local
optional aid and referendum equalization aid as defined in section 125A.11, subdivision 1,
paragraph (d), attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid under section
125A.76 attributable to that pupil, that is received by the district providing special instruction
and services. For purposes of this paragraph, general education revenue and referendum
equalization aid attributable to a pupil must be calculated using the serving district's average
general education revenue and referendum equalization aid per adjusted pupil unit.

(c) deleted text beginFor fiscal year 2015 and later,deleted text end Special education aid paid to a resident district must
be reduced by an amount equal to 90 percent of the unreimbursed cost of providing special
education and servicesnew text begin, except as provided in paragraph (j)new text end.

(d) Notwithstanding paragraph (c), special education aid paid to a resident district must
be reduced by an amount equal to 100 percent of the unreimbursed cost of special education
and services provided to students at an intermediate district, cooperative, or charter school
where the percent of students eligible for special education services is at least 70 percent
of the charter school's total enrollment.

(e) Notwithstanding paragraph (c), special education aid paid to a resident district must
be reduced under paragraph (d) for students at a charter school receiving special education
aid under section 124E.21, subdivision 3, calculated as if the charter school received special
education aid under section 124E.21, subdivision 1.

(f) Special education aid paid to the district or cooperative providing special instruction
and services for the pupil, or to the fiscal agent district for a cooperative, must be increased
by the amount of the reduction in the aid paid to the resident district under paragraphs (c)
deleted text begin anddeleted text endnew text begin,new text end (d)new text begin, (i), and (j)new text end. If the resident district's special education aid is insufficient to make the
full adjustment under paragraphs (c), (d), deleted text beginanddeleted text end (e)new text begin, (i), and (j)new text end, the remaining adjustment shall
be made to other state aids due to the district.

(g) Notwithstanding paragraph (a), general education aid paid to the resident district of
a nonspecial education student for whom an eligible special education charter school receives
general education aid under section 124E.20, subdivision 1, paragraph (c), must be reduced
by an amount equal to the difference between the general education aid attributable to the
student under section 124E.20, subdivision 1, paragraph (c), and the general education aid
that the student would have generated for the charter school under section 124E.20,
subdivision 1
, paragraph (a). For purposes of this paragraph, "nonspecial education student"
means a student who does not meet the definition of pupil with a disability as defined in
section 125A.02 or the definition of a pupil in section 125A.51.

(h) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph (f), the district of residence must pay tuition equal to at least 90 and no more than
100 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 .0466, calculated without compensatory revenue, local optional revenue, and
transportation sparsity revenue, times the number of pupil units for pupils attending the area
learning center.

new text begin (i) Notwithstanding paragraphs (b) and (c), unreimbursed tuition reimbursement amounts
for a charter school where, during the prior year, more than 80 percent of the charter school's
adjusted pupil units are resident to the school district where the charter school is located
must be computed according to this paragraph. For purposes of this paragraph:
new text end

new text begin (1) "eligible cost of providing special education and services" means the lesser of the
actual cost of providing special education services for the charter school according to
paragraph (b), or 125 percent of the actual cost of providing special education services for
each pupil by disability category for the school district where the charter school is located;
and
new text end

new text begin (2) "unreimbursed cost of providing special education and services" means the difference
between: (i) the eligible cost of providing special instruction and services, including special
transportation and unreimbursed building lease and debt service costs for facilities used
primarily for special education, for a pupil with a disability, as defined in section 125A.02,
or a pupil, as defined in section 125A.51, who is enrolled in a program listed in this
subdivision, minus (ii) if the pupil receives special instruction and services outside the
regular classroom for more than 60 percent of the school day, the amount of general education
revenue, excluding local optional revenue, plus local optional aid and referendum equalization
aid as defined in section 125A.11, subdivision 1, paragraph (d), attributable to that pupil
for the portion of time the pupil receives special instruction and services outside of the
regular classroom, excluding portions attributable to district and school administration,
district support services, operations and maintenance, capital expenditures, and pupil
transportation, minus (iii) special education aid under section 125A.76 that is received by
the district providing special instruction and services attributable to that pupil. For purposes
of this paragraph, general education revenue and referendum equalization aid attributable
to a pupil must be calculated using the serving district's average general education revenue
and referendum equalization aid per adjusted pupil unit.
new text end

new text begin (j) The special education aid paid to a resident district must be reduced by an amount
equal to 80 percent of the unreimbursed cost of providing special education and services
under paragraph (i).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 3. new text beginDULUTH SCHOOL DISTRICT; BASE ADJUSTMENT.
new text end

new text begin Notwithstanding any law to the contrary, for fiscal year 2019 and later, for purposes of
computing special education aid under Minnesota Statutes, section 125A.75, the special
education aid base for fiscal year 2016 under Minnesota Statutes, section 125A.76,
subdivision 2c, for Independent School District No. 709, Duluth, must be increased by
$1,075,000.
new text end

Sec. 4. new text beginAPPROPRIATION; SPECIAL EDUCATION AID.
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 in the fiscal year
designated.
new text end

new text begin Subd. 2. 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 2020
new text end
new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2021
new text end

new text begin Subd. 3. new text end

new text begin Special education adjustment; Duluth School District. new text end

new text begin For special education
aid to Independent School District No. 709, Duluth, for past state aid lost due to the lower
fiscal year 2016 base:
new text end

new text begin $
new text end
new text begin 3,200,000
new text end
new text begin .....
new text end
new text begin 2020
new text end