SF 2017

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/16/2023 02:57pm

A bill for an act
relating to education finance; modifying compensatory revenue; changing the
revenue uses; encouraging best practices; increasing the percentage of compensatory
revenue that must stay at each school site; requiring a report on eliminating paper
forms; appropriating money; amending Minnesota Statutes 2022, sections 126C.05,
subdivision 3; 126C.10, subdivision 3; 126C.15, subdivisions 1, 2, 5.

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

Section 1.

Minnesota Statutes 2022, section 126C.05, subdivision 3, is amended to read:

Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units must
be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each building in a district
equals the product of 100 times the ratio of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; to

(2) the number of pupils enrolled in the building on October 1 of the previous fiscal
year.

(b) The compensation revenue pupil weighting factor for a building equals the lesser of
one or the quotient obtained by dividing the building's compensation revenue concentration
percentage by 80.0.

(c) The compensation revenue pupil units for a building equals the product of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the building; times

(3) .60.

(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under
section 124D.151, charter schools, and contracted alternative programs in the first year of
operation, compensation revenue pupil units shall be computed using data for the current
fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative
program begins operation after October 1, compensatory revenue pupil units shall be
computed based on pupils enrolled on an alternate date determined by the commissioner,
and the compensation revenue pupil units shall be prorated based on the ratio of the number
of days of student instruction to 170 days.

(e) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten seats discontinued
in fiscal year 2024 due to the reduction in the participation limit under section 124D.151,
subdivision 6, those discontinued seats must not be used to calculate compensation revenue
pupil units for fiscal year 2024.

(f) The percentages in this subdivision must be based on the count of individual pupils
and not on a building average or minimum new text begin , but may be adjusted according to section 126C.10,
subdivision 3 new text end .

Sec. 2.

Minnesota Statutes 2022, section 126C.10, subdivision 3, is amended to read:

Subd. 3.

Compensatory education revenue.

(a) The new text begin initial new text end compensatory education
revenue for each building in the district equals new text begin the product of:
new text end

new text begin (1) new text end the formula allowance minus $839 deleted text begin times deleted text end new text begin ;
new text end

new text begin (2) the compensatory undercount adjustment in paragraph (e); and
new text end

new text begin (3) new text end the compensation revenue pupil units computed according to section 126C.05,
subdivision 3.

new text begin (b) new text end A district's compensatory revenue equals the sum of its new text begin initial new text end compensatory revenue
for each building in the district new text begin calculated under paragraph (a) new text end and the amounts designated
under Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 8, for
fiscal year 2017. Revenue shall be paid to the district and must be allocated according to
section 126C.15, subdivision 2.

deleted text begin (b) deleted text end new text begin (c) new text end When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the alternative
program for the prior school year.

deleted text begin (c) deleted text end new text begin (d) new text end When the fiscal agent district for an area learning center changes prior to the start
of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

new text begin (e) Each district's compensatory undercount adjustment equals one plus the sum of:
new text end

new text begin (1) the percentage of English learner enrollment for the previous year to the total
enrollment for the previous year, not to exceed 4 percent;
new text end

new text begin (2) the percentage of eligible enrollment counted through a paper form during the fall
of 2022 count, not to exceed 4 percent; and
new text end

new text begin (3) the percentage of highly mobile or homeless enrollment for the previous year, not
to exceed 2 percent.
new text end

Sec. 3.

Minnesota Statutes 2022, section 126C.15, subdivision 1, is amended to read:

Subdivision 1.

Use of revenue.

new text begin (a) new text end The basic skills revenue under section 126C.10,
subdivision 4, must be reserved and used to meet the educational needs of pupils who enroll
under-prepared to learn and whose progress toward meeting state or local content or
performance standards is below the level that is appropriate for learners of their age. Basic
skills revenue may also be used for programs designed to prepare children and their families
for entry into school whether the student first enrolls in kindergarten or first grade.

new text begin (b) For fiscal years prior to fiscal year 2024, new text end any of the following may be provided to
meet these learners' needs:

(1) direct instructional services under the assurance of mastery program according to
section 124D.66;

(2) remedial instruction in reading, language arts, mathematics, other content areas, or
study skills to improve the achievement level of these learners;

(3) additional teachers and teacher aides to provide more individualized instruction to
these learners through individual tutoring, lower instructor-to-learner ratios, or team teaching;

(4) a longer school day or week during the regular school year or through a summer
program that may be offered directly by the site or under a performance-based contract with
a community-based organization;

(5) comprehensive and ongoing staff development consistent with district and site plans
according to section 122A.60 and to implement plans under section 120B.12, subdivision
4a, for teachers, teacher aides, principals, and other personnel to improve their ability to
identify the needs of these learners and provide appropriate remediation, intervention,
accommodations, or modifications;

(6) instructional materials, digital learning, and technology appropriate for meeting the
individual needs of these learners;

(7) programs to reduce truancy, encourage completion of high school, enhance
self-concept, provide health services, provide nutrition services, provide a safe and secure
learning environment, provide coordination for pupils receiving services from other
governmental agencies, provide psychological services to determine the level of social,
emotional, cognitive, and intellectual development, and provide counseling services, guidance
services, and social work services;

(8) bilingual programs, bicultural programs, and programs for English learners;

(9) all-day kindergarten;

(10) early education programs, parent-training programs, school readiness programs,
kindergarten programs for four-year-olds, voluntary home visits under section 124D.13,
subdivision 4, and other outreach efforts designed to prepare children for kindergarten;

(11) extended school day and extended school year programs; and

(12) substantial parent involvement in developing and implementing remedial education
or intervention plans for a learner, including learning contracts between the school, the
learner, and the parent that establish achievement goals and responsibilities of the learner
and the learner's parent or guardian.

new text begin (c) For fiscal year 2024 and later, a district's basic skills revenue must be used for:
new text end

new text begin (1) remedial instruction in reading, language arts, mathematics, other content areas, or
study skills to improve the achievement level of these learners;
new text end

new text begin (2) additional teachers and teacher aides to provide more individualized instruction to
these learners through individual tutoring, lower instructor-to-learner ratios, or team teaching;
new text end

new text begin (3) a longer school day or week during the regular school year or through a summer
program that may be offered directly by the site or under a performance-based contract with
a community based organization;
new text end

new text begin (4) programs to reduce truancy; provide counseling services, guidance services, and
social work services; and provide coordination for pupils receiving services from other
governmental agencies;
new text end

new text begin (5) bilingual programs, bicultural programs, and programs for English learners;
new text end

new text begin (6) early education programs, parent-training programs, early childhood special education,
school readiness programs, kindergarten programs for four-year-olds, voluntary home visits
under section 124D.13, subdivision 4, and other outreach efforts designed to prepare children
for kindergarten; and
new text end

new text begin (7) transition programs operated by school districts for special education students until
the age of 22.
new text end

Sec. 4.

Minnesota Statutes 2022, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district or cooperative must allocate its compensatory
revenue to each school building in the district or cooperative where the children who have
generated the revenue are served unless the school district or cooperative has received
permission under Laws 2005, First Special Session chapter 5, article 1, section 50, to allocate
compensatory revenue according to student performance measures developed by the school
board.

(b) Notwithstanding paragraph (a), a district or cooperative may allocate up to deleted text begin 50 deleted text end new text begin 30 new text end
percent of the amount of compensatory revenue that the district receives to school sites
according to a plan adopted by the school board. The money reallocated under this paragraph
must be spent for the purposes listed in subdivision 1, but may be spent on students in any
grade, including students attending school readiness or other prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building" means
education site as defined in section 123B.04, subdivision 1.

(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue generated
by students served at a cooperative unit shall be paid to the cooperative unit.

(e) A district or cooperative with school building openings, school building closings,
changes in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district or cooperative must report to the department any
adjustments it makes according to this paragraph and the department must use the adjusted
compensatory revenue allocations in preparing the report required under section 123B.76,
subdivision 3, paragraph (c).

Sec. 5.

Minnesota Statutes 2022, section 126C.15, subdivision 5, is amended to read:

Subd. 5.

Annual expenditure report.

new text begin (a) new text end Each year a district that receives basic skills
revenue must submit a report identifying the expenditures it incurred to meet the needs of
eligible learners under subdivision 1. The report must conform to uniform financial and
reporting standards established for this purpose and provide a breakdown by functional
area. deleted text begin Using valid and reliable data and measurement criteria, the report also must determine
whether increased expenditures raised
deleted text end

new text begin (b) A district must also report whether programs funded with compensatory revenue are
consistent with best practices demonstrated to improve new text end student achievement deleted text begin levels deleted text end .

new text begin (c) The Department of Education and regional centers of excellence must identify and
provide to schools best practices for implementing programs for each use of revenue specified
in subdivision 1.
new text end

Sec. 6. new text begin REPLACING PAPER FORMS.
new text end

new text begin By January 15, 2024, the Department of Education must report to the education
committees of the legislature whether free and reduced-price meals information obtained
through parents submitting paper eligibility forms can be eliminated for all school nutritional
programs, Title 1 funding, e-rate funding, and any other federal or state programs that require
the determination of family income for eligibility.
new text end

Sec. 7. new text begin APPROPRIATION; COMPENSATORY REVENUE.
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 years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Compensatory revenue. new text end

new text begin For additional general education aid required under
this act:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2024 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2025 new text end