SF 1232

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; phasing in changes to Minnesota's school finance
system; creating a legislative task force; amending Minnesota Statutes 2006,
sections 125A.76, subdivisions 1, 2, 5; 126C.05, subdivision 1; 126C.10,
subdivision 2; repealing Minnesota Statutes 2006, section 125A.76, subdivisions
3, 4.

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

Section 1.

Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to
read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Base year" deleted text begin for fiscal year 1998 and later fiscal years deleted text end means the deleted text begin second deleted text end new text begin current new text end
fiscal year deleted text begin preceding the fiscal year for which aid will be paid deleted text end .

(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 direct 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 individual education plans.

(d) "Average daily membership" has the meaning given it in section 126C.05.

deleted text begin (e) "Program growth factor" means 1.046 for fiscal year 2003, and 1.0 for fiscal
year 2004 and later. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:

Subd. 2.

Special education base revenue.

(a) The special education base revenue
equals the sum of the following amounts computed using base year data:

(1) deleted text begin 68 deleted text end new text begin 65 new text end percent of the salary new text begin and benefit costs new text end of each essential person employed
in the district's program for children with a disability during the fiscal year, whether the
person is employed by one or more districts or a Minnesota correctional facility operating
on a fee-for-service basis;

(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
for the Blind, deleted text begin 68 deleted text end new text begin 65 new text end percent of the salary new text begin and benefit costs new text end of each instructional aide
assigned to a child attending the academy, if that aide is required by the child's individual
education plan;

(3) for special instruction and services provided to any pupil by contracting with
public, private, or voluntary agencies other than school districts, in place of special
instruction and services provided by the district, deleted text begin 52 deleted text end new text begin 50 new text end percent of the difference between
the amount of the contract and the amount of the basic revenue, as defined in section
126C.10, subdivision 2, special education aid, and any other aid earned on behalf of the
child for the fraction of the school day the pupil receives services under the contract;

(4) for special instruction and services provided to any pupil by contracting for
services with public, private, or voluntary agencies other than school districts, that are
supplementary to a full educational program provided by the school district, deleted text begin 52 deleted text end new text begin 50 new text end percent
of the amount of the contract for that pupil;

(5) for supplies and equipment purchased or rented for use in the instruction of
children with a disability, an amount equal to deleted text begin 47 deleted text end new text begin 50 new text end percent of the sum actually expended
by the district, or a Minnesota correctional facility operating on a fee-for-service basis deleted text begin , but
not to exceed an average of $47 in any one school year for each child with a disability
receiving instruction deleted text end ;

(6) deleted text begin for fiscal years 1997 and later, deleted text end special education base revenue deleted text begin shall include deleted text end new text begin ,
including new text end amounts under clauses (1) to (5) for special education summer programs
provided during the base year for that fiscal year; and

(7) deleted text begin for fiscal years 1999 and later, deleted text end the cost of providing transportation services for
children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4).

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.

(b) If requested by a school district operating a special education program during
the base year for less than the full fiscal year, or a school district in which is located a
Minnesota correctional facility operating on a fee-for-service basis for less than the full
fiscal year, the commissioner may adjust the base revenue to reflect the expenditures
that would have occurred during the base year had the program been operated for the
full fiscal year.

(c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base
revenue attributable to a Minnesota correctional facility operating on a fee-for-service
basis during the facility's first year of operating on a fee-for-service basis shall be
computed using current year data.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:

Subd. 5.

School district special education aid.

(a) A school district's special
education aid deleted text begin for fiscal year 2000 and later deleted text end equals the deleted text begin state total special education aid,
minus the amount determined under paragraphs (b) and (c), times the ratio of the deleted text end district's
adjusted special education base revenue deleted text begin to the state total adjusted special education base
revenue deleted text end new text begin for that year new text end . If the commissioner of education modifies its rules for special
education in a manner that increases a district's special education obligations or service
requirements, the commissioner shall annually increase each district's special education
aid by the amount necessary to compensate for the increased service requirements. The
additional aid equals the cost in the current year attributable to rule changes not reflected
in the computation of special education base revenue, multiplied by the appropriate
percentages from subdivision 2.

(b) Notwithstanding paragraph (a), if the special education base revenue for a
district equals zero, the special education aid equals the amount computed according
to subdivision 2 using current year data.

(c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for
a district is greater than zero, and the base year amount for the district under subdivision
2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the
amount computed according to paragraph (a), plus the amount computed according to
subdivision 2, paragraph (a), clause (7), using current year data.

(d) A charter school under section 124D.10 shall generate state special education
aid based on current year expenditures for its first four years of operation and only in its
fifth and later years shall paragraphs (a), (b), and (c) apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
(c), in average daily membership enrolled in the district of residence, in another district
under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68;
in a charter school under section 124D.10; or for whom the resident district pays tuition
under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be
counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individual education plan is counted as the ratio of the
number of hours of assessment and education service to 825 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.25.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individual education program
plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as deleted text begin .557 deleted text end new text begin .65 new text end
deleted text begin of a deleted text end pupil deleted text begin unit for fiscal year 2000 and thereafter deleted text end new text begin units for fiscal year 2008, .75 pupil
units for fiscal year 2009, .90 pupil units for fiscal year 2010, and 1.0 pupil units for
fiscal years 2011 and later new text end .

(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted
as 1.3 pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

new text begin (a) new text end The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. The formula
allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is
$4,783. The formula allowance for fiscal year 2007 and subsequent years is $4,974.

new text begin (b) The formula allowance for fiscal years 2008 through 2010 equals: (i) the formula
allowance for the previous year plus $125, times (ii) the indexing factor for that school
year as determined by the school finance reform task force under section 6.
new text end

new text begin (c) The formula allowance for fiscal year 2011 is $5,478. The formula allowance for
subsequent years equals to the formula allowance for the previous school year times the
indexing factor established by the school finance reform task force.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 6. new text begin SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Task force established. new text end

new text begin A School Finance Reform Task Force
is established.
new text end

new text begin Subd. 2. new text end

new text begin Task force goals. new text end

new text begin The goals of the School Finance Reform Task Force
include:
new text end

new text begin (1) creating a standard and index to ensure that the formula remains adequate over
time;
new text end

new text begin (2) simplifying the remaining school formulas;
new text end

new text begin (3) analyzing categorical funding formulas, including but not limited to pupil
transportation, compensatory revenue, and limited English proficiency revenue;
new text end

new text begin (4) establishing a schedule for implementation of the other new formulas; and
new text end

new text begin (5) examining the role of the regional delivery structure including the functions
performed by intermediate school districts, service cooperatives, education districts, and
other cooperative organizations.
new text end

new text begin Subd. 3. new text end

new text begin Task force members. new text end

new text begin The task force consists of nine members.
Membership includes the commissioner of education, four members appointed according
to the rules of the senate by the Senate Committee on Rules and Administration
Subcommittee on Committees, and four members appointed by the speaker of the house.
new text end

new text begin Subd. 4. new text end

new text begin Task force recommendations. new text end

new text begin The task force must submit a report to the
education committees of the legislature by January 15, 2008, describing the formula
recommendations according to the goals it has established.
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. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 125A.76, subdivisions 3 and 4, new text end new text begin are repealed.
new text end