1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; changing certain definitions, 1.3 formulas, financial requirements, appropriations, and 1.4 levy requirements; creating certain programs; 1.5 providing for grants and program implementation; 1.6 authorizing certain fund transfers and adjustments; 1.7 requiring an unemployment insurance election; amending 1.8 Minnesota Statutes 2002, sections 120A.05, by adding a 1.9 subdivision; 123A.05, subdivision 2; 123B.12; 123B.75, 1.10 by adding a subdivision; 124D.68, subdivision 9; 1.11 124D.69, subdivision 1; 126C.05, by adding a 1.12 subdivision; 126C.15, subdivisions 2, 3, by adding a 1.13 subdivision; 126C.21, subdivision 4; 126C.48, 1.14 subdivision 8; 128D.11, subdivision 9; Minnesota 1.15 Statutes 2003 Supplement, sections 16A.152, 1.16 subdivision 2; 123B.54; 124D.095, subdivision 8; 1.17 124D.11, subdivisions 1, 2; 124D.1158, subdivision 3; 1.18 124D.118, subdivision 4; 125A.79, subdivision 1; 1.19 126C.10, subdivision 31; 126C.15, subdivision 1; 1.20 126C.63, subdivision 8; 127A.47, subdivisions 7, 8; 1.21 Laws 2003, First Special Session chapter 9, article 1, 1.22 section 53, subdivisions 2, 3, 5, 6, 11, 12; Laws 1.23 2003, First Special Session chapter 9, article 2, 1.24 section 55, subdivisions 2, 3, 4, 5, 7, 9, 12, 15, 16; 1.25 Laws 2003, First Special Session chapter 9, article 3, 1.26 section 20, subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, 1.27 First Special Session chapter 9, article 4, section 1.28 29; Laws 2003, First Special Session chapter 9, 1.29 article 4, section 31, subdivisions 2, 3; Laws 2003, 1.30 First Special Session chapter 9, article 5, section 1.31 35, subdivisions 2, 3; Laws 2003, First Special 1.32 Session chapter 9, article 6, section 4; Laws 2003, 1.33 First Special Session chapter 9, article 10, section 1.34 10, subdivision 2; Laws 2003, First Special Session 1.35 chapter 9, article 10, section 11; Laws 2003, First 1.36 Special Session chapter 9, article 10, section 12; 1.37 proposing coding for new law in Minnesota Statutes, 1.38 chapters 120B; 125B; 127A. 1.39 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA. 1.40 ARTICLE 1 1.41 GENERAL EDUCATION 1.42 Section 1. Minnesota Statutes 2002, section 120A.05, is 2.1 amended by adding a subdivision to read: 2.2 Subd. 18. [KINDERGARTEN.] "Kindergarten" means a program 2.3 designed for pupils five years of age on September 1 of the 2.4 calendar year in which the school year commences that prepares 2.5 pupils to enter first grade the following school year. A 2.6 program designed for pupils younger than five years of age on 2.7 September 1 of the calendar year in which the school year 2.8 commences that prepares pupils to enter kindergarten the 2.9 following school year is a prekindergarten program. 2.10 [EFFECTIVE DATE.] This section is effective the day 2.11 following final enactment. 2.12 Sec. 2. Minnesota Statutes 2002, section 123A.05, 2.13 subdivision 2, is amended to read: 2.14 Subd. 2. [RESERVE REVENUE.] Each district that is a member 2.15 of an area learning center must reserve revenue in an amount 2.16 equal to the sum of (1) at least 90 percent of the district 2.17 average general education revenue per pupil unit minus an amount 2.18 equal to the product of the formula allowance according to 2.19 section 126C.10, subdivision 2, times .0485, calculated without 2.20 basic skills revenue, transportation sparsity revenue, and the 2.21 transportation portion of the transition revenue adjustment, 2.22 times the number of pupil units attending an area learning 2.23 center program under this section, plus (2) the amount of basic 2.24 skills revenue generated by pupils attending the area learning 2.25 center. The amount of reserved revenue under this subdivision 2.26 may only be spent on program costs associated with the area 2.27 learning center. Compensatory revenue must be allocated 2.28 according to section 126C.15, subdivision 2. 2.29 Sec. 3. Minnesota Statutes 2002, section 123B.75, is 2.30 amended by adding a subdivision to read: 2.31 Subd. 4a. [TACONITE REVENUE.] Taconite revenue received in 2.32 a calendar year by a school district under section 298.28, 2.33 subdivisions 4b, 4c, and 11d, is fully recognized in the fiscal 2.34 year in which the February payment falls. 2.35 [EFFECTIVE DATE.] This section is effective retroactively 2.36 from July 1, 2003, for school district revenue for fiscal year 3.1 2004. 3.2 Sec. 4. Minnesota Statutes 2003 Supplement, section 3.3 124D.095, subdivision 8, is amended to read: 3.4 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 3.5 enrolled in an on-line learning course, the department must 3.6 calculate average daily membership and make payments according 3.7 to this subdivision. 3.8 (b) The initial on-line learning average daily membership 3.9 equals 1/12 for each semester course or a proportionate amount 3.10 for courses of different lengths. The adjusted on-line learning 3.11 average daily membership equals the initial on-line learning 3.12 average daily membership times .88. 3.13 (c) No on-line learning average daily membership shall be 3.14 generated if: (1) the student does not complete the on-line 3.15 learning course, or (2) the student is enrolled in on-line 3.16 learning provided by the enrolling district and the student 3.17 was either enrolled in a Minnesota public school for the school 3.18 year before the school year in which the student first enrolled 3.19 in on-line learning, or the student is enrolled in an 3.20 instructional program in which at least 40 percent of the total 3.21 instructional time takes place in the school's facilities. For 3.22 students enrolled in on-line learning according to clause (2), 3.23 the department shall calculate average daily membership 3.24 according to section 126C.05, subdivision 8. 3.25 (d) On-line learning average daily membership under this 3.26 subdivision for a student currently enrolled in a Minnesota 3.27 public school and who was enrolled in a Minnesota public school 3.28 for the school year before the school year in which the student 3.29 first enrolled in on-line learning shall be used only for 3.30 computing average daily membership according to section 126C.05, 3.31 subdivision 19, paragraph (a), clause(ii)(2), and for 3.32 computing on-line learning aid according to section 126C.24. 3.33 (e) On-line learning average daily membership under this 3.34 subdivision for students not included in paragraph (c) or (d) 3.35 shall be used only for computing average daily membership 3.36 according to section 126C.05, subdivision 19, paragraph (a), 4.1 clause(ii)(2), and for computing payments under paragraphs (f) 4.2 and (g). 4.3 (f) Subject to the limitations in this subdivision, the 4.4 department must pay an on-line learning provider an amount equal 4.5 to the product of the adjusted on-line learning average daily 4.6 membership for students under paragraph (e) times the student 4.7 grade level weighting under section 126C.05, subdivision 1, 4.8 times the formula allowance. 4.9 (g) The department must pay each on-line learning provider 4.10 100 percent of the amount in paragraph (f) within 45 days of 4.11 receiving final enrollment and course completion information 4.12 each quarter or semester. 4.13 Sec. 5. Minnesota Statutes 2003 Supplement, section 4.14 124D.11, subdivision 1, is amended to read: 4.15 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 4.16 education revenue must be paid to a charter school as though it 4.17 were a district. The general education revenue for each 4.18 adjusted marginal cost pupil unit is the state average general 4.19 education revenue per pupil unit, plus the referendum 4.20 equalization aid allowance in the pupil's district of residence, 4.21 minus an amount equal to the product of the formula allowance 4.22 according to section 126C.10, subdivision 2, times .0485, 4.23 calculated without basic skills revenue, extended time revenue, 4.24 transition revenue, and transportation sparsity revenue, plus 4.25 basic skills revenue and transition revenue as though the school 4.26 were a school district. The general education revenue for each 4.27 extended time marginal cost pupil unit equals $4,378. 4.28 (b) Notwithstanding paragraph (a), for charter schools in 4.29 the first year of operation, general education revenue shall be 4.30 computed using the number of adjusted pupil units in the current 4.31 fiscal year. 4.32 Sec. 6. Minnesota Statutes 2003 Supplement, section 4.33 124D.11, subdivision 2, is amended to read: 4.34 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 4.35 must be paid to a charter school that provides transportation 4.36 services according to section 124D.10, subdivision 16, according 5.1 to this subdivision. Transportation aid shall equal 5.2 transportation revenue. 5.3 In addition to the revenue under subdivision 1, a charter 5.4 school providing transportation services must receive (1) 5.5 general education aid for each adjusted marginal cost pupil unit 5.6 equal to the sum of an amount equal to the product of the 5.7 formula allowance according to section 126C.10, subdivision 2, 5.8 times .0485, plus the transportation sparsity allowance for the 5.9 school district in which the charter school is located and (2) 5.10 general education aid for each extended time marginal cost pupil 5.11 unit equal to the product of $223 times the school's extended 5.12 time marginal cost pupil units. 5.13 Sec. 7. Minnesota Statutes 2002, section 124D.68, 5.14 subdivision 9, is amended to read: 5.15 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 5.16 attending an eligible program full time under subdivision 3, 5.17 paragraph (d), the department must pay 90 percent of the 5.18 district's average general education revenue less basic skills 5.19 revenue to the eligible program and ten percent of the 5.20 district's average general education revenue less basic skills 5.21 revenue to the contracting district within 30 days after the 5.22 eligible program verifies enrollment using the form provided by 5.23 the department. For a pupil attending an eligible program part 5.24 time, revenue, excluding compensatory revenue, shall be reduced 5.25 proportionately, according to the amount of time the pupil 5.26 attends the program, and the payments to the eligible program 5.27 and the contracting district shall be reduced accordingly. A 5.28 pupil for whom payment is made according to this section may not 5.29 be counted by any district for any purpose other than 5.30 computation of general education revenue. If payment is made 5.31 for a pupil under this subdivision, a district shall not 5.32 reimburse a program under section 124D.69 for the same 5.33 pupil. The basic skills revenueshall be paidgenerated by 5.34 pupils attending the eligible program according to section 5.35 126C.10, subdivision 4, shall be paid to the eligible program. 5.36 (b) The department must pay up to 100 percent of the 6.1 revenue to the eligible program if there is an agreement to that 6.2 effect between the school district and the eligible program. 6.3 (c) Notwithstanding paragraphs (a) and (b), for an eligible 6.4 program that provides chemical treatment services to students, 6.5 the department must pay 100 percent of the revenue to the 6.6 eligible program. 6.7 Sec. 8. Minnesota Statutes 2002, section 124D.69, 6.8 subdivision 1, is amended to read: 6.9 Subdivision 1. [AID.] If a pupil enrolls in an alternative 6.10 program, eligible under section 124D.68, subdivision 3, 6.11 paragraph (d), or subdivision 4, operated by a private 6.12 organization that has contracted with a school district to 6.13 provide educational services for eligible pupils under section 6.14 124D.68, subdivision 2, the district contracting with the 6.15 private organization must reimburse the provider an amount equal 6.16 to the sum of (1) at least 95 percent of the district's average 6.17 general education less basic skills revenue per pupil unit times 6.18 the number of pupil units for pupils attending the program.and 6.19 (2) the amount of basic skills revenueshall be paidgenerated 6.20 by pupils attending the program according to section 126C.10, 6.21 subdivision 4.Compensatory revenue must be allocated according6.22to section 126C.15, subdivision 2.For a pupil attending the 6.23 program part time, the revenue paid to the program, excluding 6.24 compensatory revenue, must be reduced proportionately, according 6.25 to the amount of time the pupil attends the program, and revenue 6.26 paid to the district shall be reduced accordingly. Pupils for 6.27 whom a district provides reimbursement may not be counted by the 6.28 district for any purpose other than computation of general 6.29 education revenue. If payment is made to a district or program 6.30 for a pupil under this section, the department must not make a 6.31 payment for the same pupil under section 124D.68, subdivision 9. 6.32 Sec. 9. Minnesota Statutes 2003 Supplement, section 6.33 125A.79, subdivision 1, is amended to read: 6.34 Subdivision 1. [DEFINITIONS.] For the purposes of this 6.35 section, the definitions in this subdivision apply. 6.36 (a) "Unreimbursed special education cost" means the sum of 7.1 the following: 7.2 (1) expenditures for teachers' salaries, contracted 7.3 services, supplies, equipment, and transportation services 7.4 eligible for revenue under section 125A.76; plus 7.5 (2) expenditures for tuition bills received under sections 7.6 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 7.7 under section 125A.76, subdivision 2; minus 7.8 (3) revenue for teachers' salaries, contracted services, 7.9 supplies, and equipment under section 125A.76; minus 7.10 (4) tuition receipts under sections 125A.03 to 125A.24 and 7.11 125A.65 for services eligible for revenue under section 125A.76, 7.12 subdivision 2. 7.13 (b)"General revenue" means for fiscal year 1996, the sum7.14of the general education revenue according to section 126C.10,7.15subdivision 1, as adjusted according to section 127A.47,7.16subdivision 7, plus the total referendum revenue according to7.17section 126C.17, subdivision 4. For fiscal years 1997 and7.18later,"General revenue" means the sum of the general education 7.19 revenue according to section 126C.10, subdivision 1, as adjusted 7.20 according to section 127A.47, subdivisions 7 and 8, plus the 7.21 total referendum revenue minus transportation sparsity revenue 7.22 minus total operating capital revenue. 7.23 (c) "Average daily membership" has the meaning given it in 7.24 section 126C.05. 7.25 (d) "Program growth factor" means 1.02 for fiscal year 7.26 2003, and 1.0 for fiscal year 2004 and later. 7.27 Sec. 10. Minnesota Statutes 2002, section 126C.05, is 7.28 amended by adding a subdivision to read: 7.29 Subd. 5a. [EXTENDED TIME PUPIL UNITS.] (a) "Extended time 7.30 average daily membership for a district or charter school" means 7.31 the sum of the average daily membership according to subdivision 7.32 8, paragraph (a), minus the sum of the average daily membership 7.33 according to subdivision 8, paragraph (b), for pupils enrolled 7.34 in a learning year program under section 124D.128; an area 7.35 learning center under sections 123A.05 and 123A.06; an 7.36 alternative program under section 124D.68, subdivision 3, 8.1 paragraph (d); or section 124D.69. 8.2 (b) "Extended time pupil units for a district or charter 8.3 school" means the sum of the average daily membership in 8.4 paragraph (a) weighted according to subdivision 1 for: 8.5 (1) pupils served according to subdivision 7; plus 8.6 (2) pupils according to subdivision 1 for whom the district 8.7 or charter school pays tuition under sections 123A.18; 123A.22; 8.8 123A.30; 123A.32; 123A.44; 123A.488; 123B.88, subdivision 4; 8.9 124D.04; 124D.05; 125A.03 to 125A.24; 125A.51; or 125A.65; minus 8.10 (3) pupils according to subdivision 1 for whom the district 8.11 or charter school receives tuition under sections 123A.18; 8.12 123A.22; 123A.30; 123A.32; 123A.44; 123A.488; 123B.88, 8.13 subdivision 4; 124D.04; 124D.05; 125A.03 to 125A.24; 125A.51; or 8.14 125A.65. 8.15 (c) The "extended time marginal cost pupil units" means the 8.16 greater of: 8.17 (1) the sum of .77 times the pupil units defined in 8.18 paragraph (b) for the current school year and .23 times the 8.19 pupil units defined in paragraph (b) for the previous school 8.20 year; or 8.21 (2) the number of extended time pupil units defined in 8.22 paragraph (b) for the current school year. 8.23 Sec. 11. Minnesota Statutes 2003 Supplement, section 8.24 126C.10, subdivision 31, is amended to read: 8.25 Subd. 31. [TRANSITION REVENUE.] (a) A district's 8.26 transition allowance for fiscal years 2004 through 2008 equals 8.27 the greater of zero or the product of the ratio of the number of 8.28 adjusted marginal cost pupil units the district would have 8.29 counted for fiscal year 2004 under Minnesota Statutes 2002 to 8.30 the district's adjusted marginal cost pupil units for fiscal 8.31 year 2004, times the difference between: (1) the lesser of the 8.32 district's general education revenue per adjusted marginal cost 8.33 pupil unit for fiscal year 2003 or the amount of general 8.34 education revenue the district would have received per adjusted 8.35 marginal cost pupil unit for fiscal year 2004 according to 8.36 Minnesota Statutes 2002, and (2) the district's general 9.1 education revenue for fiscal year 2004 excluding transition 9.2 revenue divided by the number of adjusted marginal cost pupil 9.3 units the district would have counted for fiscal year 2004 under 9.4 Minnesota Statutes 2002. A district's transition allowance for 9.5 fiscal year 2009 and later is zero. 9.6 (b) A district's transition revenue for fiscal year 2004 9.7and laterequals the product of the district's transition 9.8 allowance times the district's adjusted marginal cost pupil 9.9 units. 9.10 (c) A district's transition revenue for fiscal year 2005 9.11 equals the sum of: (1) the product of the district's transition 9.12 allowance times the district's adjusted marginal cost pupil 9.13 units, plus (2) the amount of referendum revenue under section 9.14 126C.17 and general education revenue, excluding transition 9.15 revenue, for fiscal year 2004 attributable to pupils four or 9.16 five years of age on September 1, 2003, enrolled in a 9.17 prekindergarten program implemented by the district before July 9.18 1, 2003, and reported as kindergarten pupils under section 9.19 126C.05, subdivision 1, for fiscal year 2004. 9.20 (d) A district's transition revenue for fiscal year 2006 9.21 and later equals the sum of: (1) the product of the district's 9.22 transition allowance times the district's adjusted marginal cost 9.23 pupil units, plus (2) the amount of referendum revenue under 9.24 section 126C.17 and general education revenue, excluding 9.25 transition revenue, for fiscal year 2004 attributable to pupils 9.26 four or five years of age on September 1, 2003, enrolled in a 9.27 prekindergarten program implemented by the district before July 9.28 1, 2003, and reported as kindergarten pupils under section 9.29 126C.05, subdivision 1, for fiscal year 2004, plus (3) the 9.30 amount of compensatory education revenue under subdivision 3 for 9.31 fiscal year 2005 attributable to pupils four years of age on 9.32 September 1, 2003, enrolled in a prekindergarten program 9.33 implemented by the district before July 1, 2003, and reported as 9.34 kindergarten pupils under section 126C.05, subdivision 1, for 9.35 fiscal year 2004. 9.36 [EFFECTIVE DATE.] This section is effective for revenue for 10.1 fiscal year 2005. 10.2 Sec. 12. Minnesota Statutes 2003 Supplement, section 10.3 126C.15, subdivision 1, is amended to read: 10.4 Subdivision 1. [USE OF THE REVENUE.] Except for revenue 10.5 allocated for prekindergarten programs under subdivision 2, 10.6 paragraph (c), the basic skills revenue under section 126C.10, 10.7 subdivision 4, must be reserved and used to meet the educational 10.8 needs of pupils who enroll under-prepared to learn and whose 10.9 progress toward meeting state or local content or performance 10.10 standards is below the level that is appropriate for learners of 10.11 their age. Any of the following may be provided to meet these 10.12 learners' needs: 10.13 (1) direct instructional services under the assurance of 10.14 mastery program according to section 124D.66; 10.15 (2) remedial instruction in reading, language arts, 10.16 mathematics, other content areas, or study skills to improve the 10.17 achievement level of these learners; 10.18 (3) additional teachers and teacher aides to provide more 10.19 individualized instruction to these learners through individual 10.20 tutoring, lower instructor-to-learner ratios, or team teaching; 10.21 (4) a longer school day or week during the regular school 10.22 year or through a summer program that may be offered directly by 10.23 the site or under a performance-based contract with a 10.24 community-based organization; 10.25 (5) comprehensive and ongoing staff development consistent 10.26 with district and site plans according to section 122A.60, for 10.27 teachers, teacher aides, principals, and other personnel to 10.28 improve their ability to identify the needs of these learners 10.29 and provide appropriate remediation, intervention, 10.30 accommodations, or modifications; 10.31 (6) instructional materials and technology appropriate for 10.32 meeting the individual needs of these learners; 10.33 (7) programs to reduce truancy, encourage completion of 10.34 high school, enhance self-concept, provide health services, 10.35 provide nutrition services, provide a safe and secure learning 10.36 environment, provide coordination for pupils receiving services 11.1 from other governmental agencies, provide psychological services 11.2 to determine the level of social, emotional, cognitive, and 11.3 intellectual development, and provide counseling services, 11.4 guidance services, and social work services; 11.5 (8) bilingual programs, bicultural programs, and programs 11.6 for learners of limited English proficiency; 11.7 (9) all day kindergarten; 11.8 (10) extended school day and extended school year programs; 11.9 and 11.10 (11) substantial parent involvement in developing and 11.11 implementing remedial education or intervention plans for a 11.12 learner, including learning contracts between the school, the 11.13 learner, and the parent that establish achievement goals and 11.14 responsibilities of the learner and the learner's parent or 11.15 guardian. 11.16 Sec. 13. Minnesota Statutes 2002, section 126C.15, 11.17 subdivision 2, is amended to read: 11.18 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 11.19 allocate its compensatory revenue to each school building in the 11.20 district where the children who have generated the revenue are 11.21 served unless the school district has received permission from 11.22 the commissioner under the test score pilot program to allocate 11.23 compensatory revenue according to test score results. 11.24 (b) Notwithstanding paragraph (a), a district may allocate 11.25 up to five percent of the amount of compensatory revenue that 11.26 the districtreceived during the previous fiscal yearreceives 11.27 to school sites according to a plan adopted by the school board. 11.28 (c) Notwithstanding paragraph (a), a district may allocate 11.29 up to ten percent of the amount of compensatory revenue the 11.30 district receives to support prekindergarten programs under 11.31 subdivision 2a. 11.32 (d) For the purposes of this section and section 126C.05, 11.33 subdivision 3, "building" means education site as defined in 11.34 section 123B.04, subdivision 1. 11.35(d)(e) If the pupil is served at a site other than one 11.36 owned and operated by the district, the revenue shall be paid to 12.1 the district and used for services for pupils who generate the 12.2 revenue. 12.3 [EFFECTIVE DATE.] This section is effective July 1, 2004, 12.4 for revenue for fiscal year 2005. 12.5 Sec. 14. Minnesota Statutes 2002, section 126C.15, is 12.6 amended by adding a subdivision to read: 12.7 Subd. 2a. [PREKINDERGARTEN PROGRAMS.] Revenue allocated 12.8 under subdivision 2, paragraph (c), must be reserved and used 12.9 for programs and activities that prepare children ages 3-1/2 to 12.10 kindergarten entrance for kindergarten. Programs may serve 12.11 resident and nonresident children. Districts may contract with 12.12 private preschools and other providers of prekindergarten 12.13 programs. 12.14 Sec. 15. Minnesota Statutes 2002, section 126C.15, 12.15 subdivision 3, is amended to read: 12.16 Subd. 3. [RECOMMENDATION.] A school site decision-making 12.17 team, as defined in section 123B.04, subdivision 2, paragraph 12.18 (a), or the instruction and curriculum advisory committee under 12.19 section 120B.11, if the school has no school site decision team, 12.20 shall recommend how the compensatory education revenue will be 12.21 used to carry out the purpose of this section. A school 12.22 district that has received permission under the test score pilot 12.23 program to allocate compensatory revenue according to test 12.24 results shall share its plan for the distribution of 12.25 compensatory revenue with the school site decision team. 12.26 [EFFECTIVE DATE.] This section is effective July 1, 2004, 12.27 for revenue for fiscal year 2005. 12.28 Sec. 16. Minnesota Statutes 2002, section 126C.21, 12.29 subdivision 4, is amended to read: 12.30 Subd. 4. [TACONITE DEDUCTIONS.](1) Notwithstanding any12.31provisions of any other law to the contrary, the adjusted net12.32tax capacity used in calculating general education aid may12.33include only that property that is currently taxable in the12.34district.12.35(2)For districts thatreceived paymentshave revenue under 12.36 sections 298.018; 298.225; 298.24 to 298.28, excluding 298.26, 13.1 and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 13.2 298.391 to 298.396;and298.405,; and 477A.15; or any law 13.3 imposing a tax upon severed mineral values;or recognized13.4revenue under section 477A.15;the general education aid must be 13.5 reduced in the final adjustment payment by (i) thedifference13.6between the dollaramount of thepayments receivedrevenue 13.7 recognized pursuant to those sections, or revenue recognized13.8under section 477A.15 infor the fiscal year to which the final 13.9 adjustment is attributableand, less (ii) the amount that was 13.10 calculated, pursuant to section 126C.48, subdivision 8, as a 13.11 reduction of the levy attributable to the fiscal year to which 13.12 the final adjustment is attributable. If the final adjustment 13.13 of a district's general education aid for a fiscal year is a 13.14 negative amount because of this clause, the next fiscal year's 13.15 general education aid to that district must be reduced by this 13.16 negative amount in the following manner: there must be withheld 13.17 from each scheduled general education aid payment due the 13.18 district in such fiscal year, 15 percent of the total negative 13.19 amount, until the total negative amount has been withheld. The 13.20 amount reduced from general education aid pursuant to this 13.21 clause mustbe recognized asreduce revenue in the fiscal year 13.22 to which the final adjustment payment is attributable. 13.23 [EFFECTIVE DATE.] This section is effective retroactive to 13.24 July 1, 2003, for school district revenue for fiscal year 2004. 13.25 Sec. 17. Minnesota Statutes 2002, section 126C.48, 13.26 subdivision 8, is amended to read: 13.27 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 13.28 Reductions in levies pursuant to sections 126C.48, subdivision 13.29 1, and 273.138, must be made prior to the reductions in clause 13.30 (2). 13.31 (2) Notwithstanding any other law to the contrary, 13.32 districtswhich received paymentsthat have revenue pursuant to 13.33 sections 298.018; 298.225; and 298.24 to 298.28, except an 13.34 amount distributed undersectionsections 298.26; 298.28, 13.35 subdivision 4, paragraph (c), clause (ii); 298.28, subdivision 13.36 4, paragraph (d); 298.34 to 298.39; 298.391 to 298.396; 298.405; 14.1 477A.15; and any law imposing a tax upon severed mineral values;14.2or recognized revenue under section 477A.15 must not include a14.3portion of these aids in their permissible levies pursuant to14.4those sections, but insteadmust reduce thepermissiblelevies 14.5 authorized by this chapter and chapters 120B, 122A, 123A, 123B, 14.6 124A, 124D, 125A, and 127A bythe greater of the following:14.7(a) an amount equal to 50 percent of the total dollar14.8amount of the payments received pursuant to those sections or14.9revenue recognized under section 477A.15 in the previous fiscal14.10year; or14.11(b) an amount equal to the total dollar amount of the14.12payments received pursuant to those sections or revenue14.13recognized under section 477A.15 in the previous fiscal year14.14less the product of the same dollar amount of payments or14.15revenue times five percent.14.16For levy year 2002 only, 77 percent of the amounts14.17distributed under section 298.225 and 298.28, and 100 percent of14.18the amounts distributed under sections 298.018; 298.34 to14.19298.39; 298.391 to 298.396; 298.405; and any law imposing a tax14.20upon severed mineral values, or recognized revenue under section14.21477A.15, shall be used for purposes of the calculations under14.22this paragraph. For levy year 2003 only, the levy reductions14.23under this subdivision must be calculated as if section 298.28,14.24subdivision 4, paragraph (f), did not apply for the 200314.25distribution95 percent of the previous year's revenue specified 14.26 under this clause. 14.27 (3) The amount of any voter approved referendum, facilities 14.28 down payment, and debt levies shall not be reduced by more than 14.29 50 percent under this subdivision. In administering this 14.30 paragraph, the commissioner shall first reduce the nonvoter 14.31 approved levies of a district; then, if any payments, severed 14.32 mineral value tax revenue or recognized revenue under paragraph 14.33 (2) remains, the commissioner shall reduce any voter approved 14.34 referendum levies authorized under section 126C.17; then, if any 14.35 payments, severed mineral value tax revenue or recognized 14.36 revenue under paragraph (2) remains, the commissioner shall 15.1 reduce any voter approved facilities down payment levies 15.2 authorized under section 123B.63 and then, if any payments, 15.3 severed mineral value tax revenue or recognized revenue under 15.4 paragraph (2) remains, the commissioner shall reduce any voter 15.5 approved debt levies. 15.6 (4) Before computing the reduction pursuant to this 15.7 subdivision of the health and safety levy authorized by sections 15.8 123B.57 and 126C.40, subdivision 5, the commissioner shall 15.9 ascertain from each affected school district the amount it 15.10 proposes to levy under each section or subdivision. The 15.11 reduction shall be computed on the basis of the amount so 15.12 ascertained. 15.13 (5) To the extent the levy reduction calculated under 15.14 paragraph (2) exceeds the limitation in paragraph (3), an amount 15.15 equal to the excess must be distributed from the school 15.16 district's distribution under sections 298.225, 298.28, and 15.17 477A.15 in the following year to the cities and townships within 15.18 the school district in the proportion that their taxable net tax 15.19 capacity within the school district bears to the taxable net tax 15.20 capacity of the school district for property taxes payable in 15.21 the year prior to distribution. No city or township shall 15.22 receive a distribution greater than its levy for taxes payable 15.23 in the year prior to distribution. The commissioner of revenue 15.24 shall certify the distributions of cities and towns under this 15.25 paragraph to the county auditor by September 30 of the year 15.26 preceding distribution. The county auditor shall reduce the 15.27 proposed and final levies of cities and towns receiving 15.28 distributions by the amount of their distribution. 15.29 Distributions to the cities and towns shall be made at the times 15.30 provided under section 298.27. 15.31 [EFFECTIVE DATE.] This section is effective for taxes 15.32 payable in 2005. 15.33 Sec. 18. Minnesota Statutes 2003 Supplement, section 15.34 127A.47, subdivision 7, is amended to read: 15.35 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 15.36 education aid for districts must be adjusted for each pupil 16.1 attending a nonresident district under sections 123A.05 to 16.2 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The 16.3 adjustments must be made according to this subdivision. 16.4 (a) General education aid paid to a resident district must 16.5 be reduced by an amount equal to the referendum equalization aid 16.6 attributable to the pupil in the resident district. 16.7 (b) General education aid paid to a district serving a 16.8 pupil in programs listed in this subdivision must be increased 16.9 by an amount equal to the referendum equalization aid 16.10 attributable to the pupil in the nonresident district. 16.11 (c) If the amount of the reduction to be made from the 16.12 general education aid of the resident district is greater than 16.13 the amount of general education aid otherwise due the district, 16.14 the excess reduction must be made from other state aids due the 16.15 district. 16.16 (d) The district of residence must pay tuition to a 16.17 district or an area learning center, operated according to 16.18 paragraph (e), providing special instruction and services to a 16.19 pupil with a disability, as defined in section 125A.02, or a 16.20 pupil, as defined in section 125A.51, who is enrolled in a 16.21 program listed in this subdivision. The tuition must be equal 16.22 to (1) the actual cost of providing special instruction and 16.23 services to the pupil, including a proportionate amount for debt 16.24 service and for capital expenditure facilities and equipment, 16.25 and debt service but not including any amount for 16.26 transportation, minus (2) the amount of general education 16.27 revenue and special education aid but not including any amount 16.28 for transportation, attributable to that pupil, that is received 16.29 by the district providing special instruction and services. 16.30 (e) An area learning center operated by a service 16.31 cooperative, intermediate district, education district, or a 16.32 joint powers cooperative may elect through the action of the 16.33 constituent boards to charge the resident district tuition for 16.34 pupils rather than to have the general education revenue paid to 16.35 a fiscal agent school district. Except as provided in paragraph 16.36 (d), the district of residence must pay tuition equal to at 17.1 least 90 percent of the district average general education 17.2 revenue per pupil unit minus an amount equal to the product of 17.3 the formula allowance according to section 126C.10, subdivision 17.4 2, times .0485, calculated without basic skills revenue and 17.5 transportation sparsity revenue, times the number of pupil units 17.6 for pupils attending the area learning center, plus the amount 17.7 ofcompensatorybasic skills revenue generated by pupils 17.8 attending the area learning center. 17.9 Sec. 19. Laws 2003, First Special Session chapter 9, 17.10 article 1, section 53, subdivision 2, is amended to read: 17.11 Subd. 2. [GENERAL EDUCATION AID.] For general education 17.12 aid under Minnesota Statutes, section 126C.13, subdivision 4: 17.13$4,764,384,000$4,726,466,000 ..... 2004 17.14$5,090,303,000$5,020,210,000 ..... 2005 17.15 The 2004 appropriation includes$857,432,000$860,552,000 17.16 for 2003 and$3,906,952,000$3,865,914,000 for 2004. 17.17 The 2005 appropriation includes 17.18$1,009,856,000$1,009,822,000 for 2004 17.19 and$4,080,447,000$4,010,388,000 for 2005. 17.20 Sec. 20. [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 17.21 PILOT PROGRAM.] 17.22 Subdivision 1. [PILOT PROGRAM CREATED.] A three-year pilot 17.23 program is created to allow school districts to allocate 17.24 compensatory revenue received under Minnesota Statutes, section 17.25 126C.10, subdivision 3, among its school buildings according to 17.26 each building's test scores. 17.27 Subd. 2. [APPLICATION PROCESS.] A school district that 17.28 seeks to allocate its compensatory revenue to school sites based 17.29 on student performance may submit an application to the 17.30 commissioner of education by August 1, 2004. The application 17.31 must include a written resolution approved by the school board 17.32 that: (1) identifies the test results that will be used to 17.33 assess student performance; (2) describes the method for 17.34 distribution of compensatory revenue to the school sites; and 17.35 (3) summarizes the evaluation procedure the district will use to 17.36 determine if the redistribution of compensatory revenue improves 18.1 overall student performance. The application must be submitted 18.2 in the form and manner specified by the commissioner. 18.3 Subd. 3. [COMMISSIONER SELECTION.] The commissioner shall 18.4 select school districts to participate in the pilot program. 18.5 The commissioner must notify the selected school districts by 18.6 August 31, 2004. 18.7 Subd. 4. [REPORT.] The commissioner of education must 18.8 submit a report by February 15, 2007, to the education 18.9 committees of the legislature evaluating the effectiveness of 18.10 the pilot program. 18.11 [EFFECTIVE DATE.] This section is effective the day 18.12 following final enactment. 18.13 Sec. 21. [KINDERGARTEN REPORTING.] 18.14 Notwithstanding Minnesota Statutes, sections 120A.05, 18.15 subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 18.16 1, pupils four or five years of age on September 1 of the 18.17 calendar year in which the school year commences and enrolled in 18.18 a prekindergarten program implemented by the district before 18.19 July 1, 2003, may be reported as kindergarten pupils under 18.20 Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 18.21 year 2004 and earlier. 18.22 [EFFECTIVE DATE.] This section is effective the day 18.23 following final enactment and applies to fiscal year 2004 and 18.24 earlier. 18.25 ARTICLE 2 18.26 EDUCATION EXCELLENCE 18.27 Section 1. [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 18.28 (a) The commissioner of education in consultation with the 18.29 Office of Educational Accountability must develop a value-added 18.30 assessment program to assist public schools to assess and report 18.31 growth in student academic achievement under section 120B.30, 18.32 subdivision 1a. The program must utilize assessments that 18.33 measure growth in student academic achievement by making 18.34 longitudinal comparisons in individual student educational 18.35 progress over time. School districts, schools, and charter 18.36 schools may apply to participate in the program on a form and in 19.1 a manner prescribed by the commissioner. Program participants 19.2 must represent the urban, suburban, and rural geographic areas 19.3 of the state with no more than a total of 125,000 students 19.4 participating in the program. 19.5 (b) The commissioner may contract with an organization that 19.6 utilizes a "value-added" assessment model that reliably 19.7 estimates school and school district effects on student 19.8 achievement over time for classroom settings where a single 19.9 teacher teaches multiple subjects to the same group of students, 19.10 for team teaching arrangements, and for other teaching 19.11 circumstances. The model the commissioner selects must 19.12 accommodate diverse data from various test sources and must use 19.13 each student's test data across grades and subjects even when 19.14 the data are incomplete. 19.15 Sec. 2. [125B.30] [TECHNOLOGY INNOVATION GRANTS.] 19.16 Subdivision 1. [SCHOOL DISTRICT TECHNOLOGY INNOVATION 19.17 GRANT.] (a) A school district, charter school, or a nonpublic 19.18 school may apply for a grant under this subdivision to provide a 19.19 wireless computing device for each student in a middle school, 19.20 junior high school, or high school. Applicants receiving an 19.21 award under this section shall provide the opportunity for each 19.22 student to receive a wireless computing device that will remain 19.23 with the student for as long as the student is enrolled in the 19.24 school or district, or for the duration of the grant agreement 19.25 with the state or other contracted agreement. 19.26 (b) In order to receive a grant, the applicant must 19.27 demonstrate a local match, which may come from state, local, or 19.28 other eligible federal funds that have been allocated to the 19.29 district or the school. Once awarded a grant, the applicant 19.30 shall receive a decreasing grant amount each year over a 19.31 three-year period as determined by the department. The 19.32 applicant may also require a deposit to be paid by the student 19.33 or parent. 19.34 (c) An applicant may elect to purchase or lease wireless 19.35 computing devices from a vendor other than the statewide 19.36 partnership described in subdivision 3, paragraph (d), if the 20.1 department determines that the vendor selected by the applicant 20.2 meets the requirements of this section. 20.3 Subd. 2. [APPLICATION.] To qualify for a grant under this 20.4 section, the applicant shall submit an application to the 20.5 department and to the Minnesota Education Telecommunications 20.6 Council. The application shall include at least the following: 20.7 (1) how the applicant will provide the opportunity for each 20.8 pupil in the school to receive a wireless computing device; 20.9 (2) a plan demonstrating how the applicant will use the 20.10 wireless computing device to increase overall student 20.11 achievement, help improve adequate yearly progress as determined 20.12 by the department, and decrease the student achievement gap in 20.13 the school or district; 20.14 (3) a plan for teacher professional development on 20.15 technology integration, content and curriculum, and 20.16 communication with parents; 20.17 (4) a three-year to five-year plan for increasing the local 20.18 share of expenses for the wireless computer program; 20.19 (5) how the applicant will amend its local technology plan 20.20 as required under state and federal law to reflect the wireless 20.21 computer program; 20.22 (6) a plan to provide adequate insurance coverage for the 20.23 computer equipment; 20.24 (7) a policy for appropriate use of computer equipment for 20.25 students; 20.26 (8) a plan to provide ongoing technical support for the 20.27 computer equipment; and 20.28 (9) a plan for providing low-cost or free Internet access 20.29 to students. 20.30 Subd. 3. [DEPARTMENT OF EDUCATION.] (a) The department, in 20.31 consultation with the Minnesota Education Telecommunications 20.32 Council, shall develop, implement, and operate the technology 20.33 innovation grant program and make program grants. 20.34 (b) The department, in consultation with the Minnesota 20.35 Education Telecommunications Council, shall award grants under 20.36 this section using at least $1,500,000 from the eligible funds 21.1 under the federal Department of Education, title II, part D, 21.2 educational technology grant funds. The department shall 21.3 consider regional diversity in awarding grants. 21.4 (c) The department, in consultation with the Minnesota 21.5 Education Telecommunications Council, shall select a program 21.6 partner through a request for proposals process for a total 21.7 learning technology package that includes, but is not limited 21.8 to, a wireless computing device, software, professional 21.9 development, service and support, and for management for the 21.10 overall implementation of the technology innovation grant 21.11 program. 21.12 (d) The commissioner shall report annually by March 1 21.13 during the program, with a final report due by March 1, 2009, to 21.14 the house of representatives and senate committees having 21.15 jurisdiction over education on the progress of the program, 21.16 including at least: improvement in student achievement, the 21.17 effect of integrating innovative technology resources on closing 21.18 the achievement gap, and the cost-benefits of using innovative 21.19 technology learning resources as compared to traditional 21.20 learning resources. 21.21 Sec. 3. [127A.095] [IMPLEMENTATION OF NO CHILD LEFT BEHIND 21.22 ACT.] 21.23 Subdivision 1. [CONTINUED IMPLEMENTATION.] The Department 21.24 of Education shall continue to implement the federal No Child 21.25 Left Behind Act, Public Law 107-110, without interruption until 21.26 June 30, 2005. 21.27 Subd. 2. [NO CHILD LEFT BEHIND NULLIFICATION.] (a) The 21.28 consolidated state plan submitted by the state to the federal 21.29 Department of Education on implementing the No Child Left Behind 21.30 Act, Public Law 107-110, and any other Minnesota state contract 21.31 or agreement under the provisions of the No Child Left Behind 21.32 Act, shall be nullified and revoked by the commissioner of 21.33 education on July 1, 2005. 21.34 (b) The commissioner shall report to the education funding 21.35 divisions and the education policy committees of the house of 21.36 representatives and the senate by April 1, 2005, that the 22.1 following conditions have been met: 22.2 (1) the Department of Education has received approval from 22.3 the federal Department of Education to allow the state to use a 22.4 value-added measurement of student achievement for determining 22.5 adequate yearly progress; 22.6 (2) the Department of Education has developed a plan and 22.7 model legislation to ensure that if an adequate yearly progress 22.8 determination was made in error, that the error will not 22.9 adversely affect the school's or school district's sanction 22.10 status in subsequent years. The Department of Education must 22.11 have a policy in place to correct errors to accountability 22.12 reports; 22.13 (3) the Department of Education shall report the additional 22.14 costs for state fiscal years 2005 to 2008 that the No Child Left 22.15 Behind Act imposes on the state, the state's school districts, 22.16 and charter schools, which are in excess of costs associated 22.17 with the Improving America's Schools Act of 1994, Public Law 22.18 103-382; 22.19 (4) the Department of Education shall identify new federal 22.20 funds provided by the No Child Left Behind Act, which are 22.21 sufficient to meet the additional mandates imposed by the act; 22.22 (5) the department has received approval from the federal 22.23 Department of Education to exclude from sanctions schools that 22.24 have not made adequate yearly progress solely due to a subgroup 22.25 of students with disabilities not testing at a proficient level; 22.26 (6) the Department of Education has received approval from 22.27 the federal Department of Education to exclude from sanctions a 22.28 school that is classified as not having made adequate yearly 22.29 progress solely due to different subgroups testing below 22.30 proficient levels for at least two consecutive years; 22.31 (7) the department has developed a plan and model 22.32 legislation to monitor the quality of results achieved by 22.33 supplemental service providers that have been approved by the 22.34 department; 22.35 (8) the department has implemented a uniform financial 22.36 reporting system for school districts to report costs related to 23.1 implementing No Child Left Behind Act requirements, including 23.2 the costs of complying with sanctions; and 23.3 (9) the department has developed a plan and model 23.4 legislation for imposing sanctions on school sites that have not 23.5 made adequate yearly progress for four or more consecutive 23.6 years, including the criteria used for imposing different 23.7 sanctions for different school sites. 23.8 (c) The state's continued implementation of the No Child 23.9 Left Behind Act shall be discontinued effective July 1, 2005, 23.10 unless the legislature passes a joint resolution during the 2005 23.11 regular legislative session establishing the legislature's 23.12 satisfaction that the requirements under paragraph (b) have been 23.13 met. 23.14 Subd. 3. [DEPARTMENT OF FINANCE CERTIFICATION.] If the 23.15 legislature does not pass a joint resolution authorizing 23.16 continued implementation of the No Child Left Behind Act under 23.17 subdivision 2, paragraph (c), the commissioner of finance shall 23.18 certify and report to the legislature beginning January 1, 2006, 23.19 and each year thereafter the amount of federal revenue, if any, 23.20 that has been withheld by the federal government as a result of 23.21 the state's discontinued implementation of the No Child Left 23.22 Behind Act. The report shall also specify the intended purpose 23.23 of the federal revenue and the amount of revenue withheld from 23.24 the state, each school district, and each charter school in each 23.25 fiscal year. 23.26 Subd. 4. [ANNUAL CONTINGENT APPROPRIATION.] For fiscal 23.27 year 2006 and each fiscal year thereafter, an amount equal to 23.28 the federal funds withheld in the same fiscal year as a result 23.29 of the state's discontinued implementation of the No Child Left 23.30 Behind Act, as certified by the commissioner of finance under 23.31 subdivision 3, is appropriated from the general fund to the 23.32 commissioner of education. The commissioner of education shall 23.33 allocate the appropriation under this section according to the 23.34 report from the commissioner of finance in subdivision 3. 23.35 [EFFECTIVE DATE.] This section is effective the day 23.36 following final enactment. 24.1 Sec. 4. Minnesota Statutes 2003 Supplement, section 24.2 127A.47, subdivision 8, is amended to read: 24.3 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 24.4 for districts must be adjusted for each pupil attending a 24.5 charter school under section 124D.10. The adjustments must be 24.6 made according to this subdivision. 24.7 (b) General education aid paid to a district in which a 24.8 charter school not providing transportation according to section 24.9 124D.10, subdivision 16, is located must be increased by an 24.10 amount equal to the sum of: 24.11 (1) the product of:(1)(i) the sum of an amount equal to 24.12 the product of the formula allowance according to section 24.13 126C.10, subdivision 2, times .0485, plus the transportation 24.14 sparsity allowance for the district; times(2)(ii) the adjusted 24.15 marginal cost pupil units attributable to the pupil, plus 24.16 (2) the product of $223 times the extended time marginal 24.17 cost pupil units attributable to the pupil. 24.18 Sec. 5. Laws 2003, First Special Session chapter 9, 24.19 article 2, section 55, subdivision 15, is amended to read: 24.20 Subd. 15. [BEST PRACTICES SEMINARS.] For best practices 24.21 seminars and other professional development capacity building 24.22 activities that assure proficiency in teaching and 24.23 implementation of graduation rule standards: 24.24 $1,000,000 ..... 2004 24.25 $1,000,000 ..... 2005 24.26 $250,000 per year is for a grant to A Chance to Grow/New 24.27 Visions for the Minnesota learning resource center's 24.28 comprehensive training program for education professionals 24.29 charged with helping children acquire basic reading and math 24.30 skills. In fiscal year 2005 only, $250,000 is for the Minnesota 24.31 Humanities Commission. 24.32 Sec. 6. Laws 2003, First Special Session chapter 9, 24.33 article 2, section 55, subdivision 16, is amended to read: 24.34 Subd. 16. [ALTERNATIVE TEACHER COMPENSATION.] For 24.35 alternative teacher compensation established under Minnesota 24.36 Statutes, sections 122A.413 to 122A.415: 25.1 $3,700,000 ..... 2004 25.2 $3,700,000 ..... 2005 25.3 If the appropriations under this subdivision are 25.4 insufficient to fund all program participants, a participant may 25.5 receive less than the maximum per pupil amount available under 25.6 Minnesota Statutes, section 122A.415, subdivision 1. A 25.7 qualifying district or site receiving alternative teacher 25.8 compensation funding under this subdivision may use the funding 25.9 it receives to leverage additional funds from a national program 25.10 for enhancing teacher professionalism. 25.11 Any balance in the first year does not cancel but is 25.12 available in the second year. The base appropriation for this 25.13 program is $2,600,000 for fiscal years 2006 and 2007. 25.14 [EFFECTIVE DATE.] This section is effective the day 25.15 following final enactment. 25.16 Sec. 7. [GRANTS FOR SITE-BASED ACHIEVEMENT CONTRACTS.] 25.17 Subdivision 1. [ELIGIBLE SCHOOLS.] (a) The commissioner of 25.18 education shall award grants to public school sites to increase 25.19 student achievement and eliminate the achievement gap at the 25.20 school site. 25.21 (b) The commissioner shall select sites that meet the 25.22 following criteria: 25.23 (1) have at least 75 percent of their enrollment eligible 25.24 for free or reduced-price lunch; 25.25 (2) have an enrollment where at least 75 percent of the 25.26 students are students of color; and 25.27 (3) have failed to meet adequate yearly progress for at 25.28 least two consecutive years. 25.29 (c) In order to be eligible for a grant under this section, 25.30 a public school site shall have an approved site decision-making 25.31 agreement under Minnesota Statutes, section 123B.04, including 25.32 an achievement contract under Minnesota Statutes, section 25.33 123B.04, subdivision 4. The site decision-making team shall 25.34 include the principal of the school site. 25.35 (d) The site team shall have a plan approved by the school 25.36 board and shall also have an agreement with the exclusive 26.1 bargaining unit of the district to participate in this grant 26.2 program. 26.3 Subd. 2. [APPLICATION.] (a) The applicant shall submit a 26.4 plan that will result in at least 80 percent of the students at 26.5 the site testing at a proficient level for their grade by the 26.6 end of the grant period of six years, with at least 60 percent 26.7 of the students testing at a proficient level for their grade at 26.8 the midpoint of the grant period. 26.9 (b) The site team shall include in its application a 26.10 detailed plan for using multiple objective and measurable 26.11 methods for tracking student achievement during the duration of 26.12 the grant and shall also include curriculum and academic 26.13 requirements that are rigorous and challenging for all 26.14 students. The site shall have the ability to return timely test 26.15 data to teachers and have a plan that demonstrates that the 26.16 teachers at the site can use the data to help improve curriculum 26.17 as well as monitor student achievement. 26.18 (c) The applicant shall have in its site-based plan an 26.19 agreement between the district and the exclusive bargaining unit 26.20 of the district that would give the site-based team increased 26.21 stability in the placement of teachers at the site. The 26.22 applicant shall include other innovative site-based personnel 26.23 decision-making items in its agreement that may include, but are 26.24 not limited to: hiring bonuses, additional ongoing 26.25 collaborative preparation time, on-site staff development, 26.26 hiring additional staff, and performance-based incentives. 26.27 (d) The site team shall also include in its application a 26.28 plan for a greater involvement of parents and the community in 26.29 the school, a plan for ensuring that each student at the site 26.30 can develop a meaningful relationship with at least one teacher 26.31 at the school site, and a clear approach to school safety, 26.32 including promoting respect for students and teachers. 26.33 Subd. 3. [GRANT AWARDS.] (a) The commissioner shall award 26.34 grants to a school site in three parts: one-third of the total 26.35 grant amount is awarded at the beginning of the grant agreement; 26.36 one-third is awarded at the midpoint of the grant agreement if 27.1 the site has met the achievement goals established in 27.2 subdivision 2, paragraph (a); and one-third is awarded upon the 27.3 completion of the grant agreement if the site has met the 27.4 achievement goals established in subdivision 2, paragraph (a). 27.5 (b) The total grant award for a school site shall be at 27.6 least $150,000 and shall not exceed $500,000. The commissioner 27.7 shall determine the grant amount based on the number of students 27.8 enrolled at the site. 27.9 (c) The commissioner shall determine all other aspects of 27.10 the application and grant award process consistent with this 27.11 section. 27.12 Subd. 4. [REPORT.] The commissioner shall report annually 27.13 by March 1 during the program, with a final report due by 27.14 January 15, 2011, to the house of representatives and senate 27.15 committees having jurisdiction over education on the progress of 27.16 the program, including at least: improvement in student 27.17 achievement, the effect of innovative personnel decision making 27.18 on closing the achievement gap, and the characteristics of 27.19 highly effective teachers. 27.20 Subd. 5. [APPROPRIATION BASE.] The base appropriation for 27.21 this program is $500,000 for fiscal years 2006 and 2007. 27.22 [EFFECTIVE DATE.] This section is effective the day 27.23 following final enactment and applies to the 2005-2006 through 27.24 2009-2010 school years. 27.25 Sec. 8. [APPROPRIATION.] 27.26 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 27.27 indicated in this section are appropriated from the general fund 27.28 to the Department of Education for the fiscal years designated. 27.29 Subd. 2. [VALUE-ADDED ASSESSMENT.] For the value-added 27.30 assessment program: 27.31 $250,000 ..... 2005 27.32 This is a onetime appropriation. 27.33 ARTICLE 3 27.34 FACILITIES; NUTRITION; ACCOUNTING; OTHER PROGRAMS 27.35 Section 1. Minnesota Statutes 2003 Supplement, section 27.36 16A.152, subdivision 2, is amended to read: 28.1 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 28.2 basis of a forecast of general fund revenues and expenditures, 28.3 the commissioner of finance determines that there will be a 28.4 positive unrestricted budgetary general fund balance at the 28.5 close of the biennium, the commissioner of finance must allocate 28.6 money to the following accounts and purposes in priority order: 28.7 (1) the cash flow account established in subdivision 1 28.8 until that account reaches $350,000,000;and28.9 (2) the budget reserve account established in subdivision 28.10 1a until that account reaches $653,000,000; 28.11 (3) the amount necessary to increase the aid payment 28.12 schedule for school district aids and credits payments in 28.13 section 127A.45 to not more than 90 percent, excluding special 28.14 education excess cost aid under section 125A.79; and 28.15 (4) the amount necessary to eliminate all or a portion of 28.16 the property tax revenue recognition shift in section 123B.75, 28.17 subdivision 5. 28.18 (b) The amounts necessary to meet the requirements of this 28.19 section are appropriated from the general fund within two weeks 28.20 after the forecast is released or, in the case of transfers 28.21 under paragraph (a), clauses (3) and (4), as necessary to meet 28.22 the appropriations schedules otherwise established in statute. 28.23 (c) To the extent that a positive unrestricted budgetary 28.24 general fund balance is projected, appropriations under this 28.25 section must be made before any transfer is made under section 28.26 16A.1522. 28.27 (d) The commissioner of finance shall certify the total 28.28 dollar amount of the reductions under paragraph (a), clauses (3) 28.29 and (4), to the commissioner of education. The commissioner of 28.30 education shall increase the aid payment percentage and reduce 28.31 the property tax shift percentage by these amounts and apply 28.32 those reductions to the current fiscal year and thereafter. 28.33 [EFFECTIVE DATE.] This section is effective the day 28.34 following final enactment. 28.35 Sec. 2. Minnesota Statutes 2002, section 123B.12, is 28.36 amended to read: 29.1 123B.12 [INSUFFICIENT FUNDS TO PAY ORDERS.] 29.2 (a) In the event that a district or a cooperative unit 29.3 defined in section 123A.24, subdivision 2, has insufficient 29.4 funds to pay its usual lawful current obligations, subject to 29.5 section 471.69, the board may enter into agreements with banks 29.6 or any person to take its orders. Any order drawn, after having 29.7 been presented to the treasurer for payment and not paid for 29.8 want of funds shall be endorsed by the treasurer by putting on 29.9 the back thereof the words "not paid for want of funds," giving 29.10 the date of endorsement and signed by the treasurer. A record 29.11 of such presentment, nonpayment and endorsement shall be made by 29.12 the treasurer. The treasurer shall serve a written notice upon 29.13 the payee or the payee's assignee, personally, or by mail, when 29.14 the treasurer is prepared to pay such orders. The notice may be 29.15 directed to the payee or the payee's assignee at the address 29.16 given in writing by such payee or assignee to such treasurer, at 29.17 any time prior to the service of such notice. No order shall 29.18 draw any interest if such address is not given when the same is 29.19 unknown to the treasurer, and no order shall draw any interest 29.20 after the service of such notice. 29.21 (b) A district may enter, subject to section 471.69, into a 29.22 line of credit agreement with a financial institution. The 29.23 amount of credit available must not exceed 95 percent of average 29.24 expenditure per month of operating expenditures in the previous 29.25 fiscal year. Any amount advanced must be repaid no later than 29.2645180 days after the day of advancement. 29.27 Sec. 3. Minnesota Statutes 2003 Supplement, section 29.28 123B.54, is amended to read: 29.29 123B.54 [DEBT SERVICE APPROPRIATION.] 29.30 (a)$25,987,000 in fiscal year 2002, $29,941,000 in fiscal29.31year 2003, $40,075,000$35,598,000 in fiscal year 2004,and29.32$39,774,000$31,220,000 in fiscalyearsyear 2005, $27,830,000 29.33 in fiscal year 2006, and $24,872,000 in fiscal year 2007 and 29.34 later are appropriated from the general fund to the commissioner 29.35 of education for payment of debt service equalization aid under 29.36 section 123B.53. 30.1 (b) The appropriations in paragraph (a) must be reduced by 30.2 the amount of any money specifically appropriated for the same 30.3 purpose in any year from any state fund. 30.4 [EFFECTIVE DATE.] This section is effective the day 30.5 following final enactment. 30.6 Sec. 4. Minnesota Statutes 2003 Supplement, section 30.7 124D.1158, subdivision 3, is amended to read: 30.8 Subd. 3. [PROGRAM REIMBURSEMENT.] Each school year, the 30.9 state must reimburse each participating school 30 cents for each 30.10 reduced price breakfast and5581 cents for each fully paid 30.11 breakfast. 30.12 Sec. 5. Minnesota Statutes 2003 Supplement, section 30.13 124D.118, subdivision 4, is amended to read: 30.14 Subd. 4. [REIMBURSEMENT.] In accordance with program 30.15 guidelines, the commissioner shall reimburse each participating 30.16 public or nonpublic schoolnine14 cents for each half-pint of 30.17 milk that is served to kindergarten students and is not part of 30.18 a school lunch or breakfast reimbursed under section 124D.111 or 30.19 124D.1158. 30.20 Sec. 6. Minnesota Statutes 2003 Supplement, section 30.21 126C.63, subdivision 8, is amended to read: 30.22 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 30.23 effort debt service levy" means the lesser of: 30.24 (1) a levy in whichever of the following amounts is 30.25 applicable: 30.26 (i) in any district receiving a debt service loan for a 30.27 debt service levy payable in 2002 and thereafter, or granted a 30.28 capital loan after January 1, 2002, a levy in total dollar 30.29 amount computed at a rate of 40 percent of adjusted net tax 30.30 capacity for taxes payable in 2002 and thereafter; 30.31 (ii) in any district receiving a debt service loan for a 30.32 debt service levy payable in 2001 or earlier, or granted a 30.33 capital loan before January 2,20012002, a levy in a total 30.34 dollar amount computed at a rate of3228 percent of adjusted 30.35 net tax capacity for taxes payable in 2002 and thereafter; or 30.36 (2) a levy in any district for which a capital loan was 31.1 approved prior to August 1, 1981, a levy in a total dollar 31.2 amount equal to the sum of the amount of the required debt 31.3 service levy and an amount which when levied annually will in 31.4 the opinion of the commissioner be sufficient to retire the 31.5 remaining interest and principal on any outstanding loans from 31.6 the state within 30 years of the original date when the capital 31.7 loan was granted. 31.8 (b) The board in any district affected by the provisions of 31.9 paragraph (a), clause (2), may elect instead to determine the 31.10 amount of its levy according to the provisions of paragraph (a), 31.11 clause (1). If a district's capital loan is not paid within 30 31.12 years because it elects to determine the amount of its levy 31.13 according to the provisions of paragraph (a), clause (2), the 31.14 liability of the district for the amount of the difference 31.15 between the amount it levied under paragraph (a), clause (2), 31.16 and the amount it would have levied under paragraph (a), clause 31.17 (1), and for interest on the amount of that difference, must not 31.18 be satisfied and discharged pursuant to Minnesota Statutes 1988, 31.19 or an earlier edition of Minnesota Statutes if applicable, 31.20 section 124.43, subdivision 4. 31.21 [EFFECTIVE DATE.] This section is effective for taxes 31.22 payable in 2005. 31.23 Sec. 7. Minnesota Statutes 2002, section 128D.11, 31.24 subdivision 9, is amended to read: 31.25 Subd. 9. [NET DEBT DEFINED.] The net debt of the school 31.26 district for the purposes of this limitation is the amount of 31.27 bonds less the amount of all money and the face value of all 31.28 securities then held as a sinking fund for the payment of such 31.29 bonds, and shall not include school aid and tax anticipation 31.30 certificates of indebtedness not in default or bonds issued to 31.31 pay pension fund liabilities under section 475.52, subdivision 6. 31.32 Sec. 8. Laws 2003, First Special Session chapter 9, 31.33 article 4, section 29, is amended to read: 31.34 Sec. 29. [GARAGE LEASE LEVY; SARTELL.] 31.35 For taxes payable in 2004, 2005, and 2006, independent 31.36 school district No.740748, Sartell, may levy up to $107,000 32.1 each year for the purpose of leasing a school bus storage 32.2 facility. For taxes payable in 2007, Independent School 32.3 District No. 748, Sartell, may levy up to $115,000 for the 32.4 purpose of leasing a school bus storage facility. The 32.5 department of education shall includethis levythese levies in 32.6 the calculation of eligible building lease levy under Minnesota 32.7 Statutes, section 126C.40, subdivision 1.This levyThese 32.8 levies shall not allow the district to exceed the $100 per 32.9 resident marginal cost pupil unit cap in that section. The 32.10 district is eligible to makethis levythese levies only if it 32.11 sells its current school bus storage site to the city of Sartell 32.12 and the district may not usethis levythese levies as part of a 32.13 lease purchase agreement to replace its current school bus 32.14 storage facility. 32.15 Sec. 9. Laws 2003, First Special Session chapter 9, 32.16 article 5, section 35, subdivision 3, is amended to read: 32.17 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 32.18 MILK.] For traditional school breakfast aid and kindergarten 32.19 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 32.20$3,088,000$4,382,000 ..... 2004 32.21$3,217,000$6,282,000 ..... 2005 32.22 Sec. 10. Laws 2003, First Special Session chapter 9, 32.23 article 6, section 4, is amended to read: 32.24 Sec. 4. [APPROPRIATIONS.] 32.25 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 32.26 indicated in this section are appropriated from the general fund 32.27 to the department of education for the fiscal years designated. 32.28 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 32.29 grants under Minnesota Statutes, section 134.355: 32.30$8,072,000$8,312,000 ..... 2004 32.31 $8,570,000 ..... 2005 32.32 The 2004 appropriation includes $1,456,000 for 2003 and 32.33$6,616,000$6,856,000 for 2004. 32.34 The 2005 appropriation includes$1,654,000$1,714,000 for 32.35 2004 and$6,916,000$6,856,000 for 2005. 32.36 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 33.1 regional library telecommunications aid under Minnesota 33.2 Statutes, section 134.355: 33.3$1,200,000$960,000 ..... 2004 33.4 $1,200,000 ..... 2005 33.5 The 2004 appropriation includes $960,000 for 2004. 33.6 The 2005 appropriation includes $240,000 for 2004 and 33.7 $960,000 for 2005. 33.8 [EFFECTIVE DATE.] This section is effective the day 33.9 following final enactment. 33.10 Sec. 11. [FORECASTING THE BASE BUDGET FOR EDUCATION.] 33.11 Notwithstanding Minnesota Statutes 2003 Supplement, section 33.12 16A.11, subdivision 3, paragraph (b), the appropriation base for 33.13 fiscal years 2006 and 2007 for each forecast program with an 33.14 appropriation in this act or in Laws 2003, First Special Session 33.15 chapter 9, is the forecast appropriation level needed to fully 33.16 fund that program. 33.17 [EFFECTIVE DATE.] This section is effective the day 33.18 following final enactment. 33.19 Sec. 12. [FUND TRANSFERS.] 33.20 Subdivision 1. [FUND TRANSFER, FOLEY.] Notwithstanding 33.21 Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 33.22 2004, Independent School District No. 51, Foley, may permanently 33.23 transfer up to $190,000 from its reserved operating capital 33.24 account in its general fund to the undesignated general fund 33.25 balance. 33.26 Subd. 2. [FUND TRANSFER, KIMBALL.] Notwithstanding 33.27 Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 33.28 2004, Independent School District No. 739, Kimball, may 33.29 permanently transfer up to $150,000 from its reserved account 33.30 for bus purchase, or any successor account, to its undesignated 33.31 general fund balance. 33.32 Subd. 3. [FUND TRANSFER, BUTTERFIELD.] Notwithstanding 33.33 Minnesota Statutes, section 123B.79 or 123B.80, for calendar 33.34 years 2004 through 2006, on June 30 of each year, Independent 33.35 School District No. 836, Butterfield, may permanently transfer 33.36 up to $50,000 from its reserved operating capital account in its 34.1 general fund to its undesignated general fund balance and 34.2 $60,000 from its reserved bus purchase account in its general 34.3 fund to its undesignated general fund balance. The total amount 34.4 transferred for the three-year period must not total more than 34.5 $50,000 from the reserved operating capital account and $60,000 34.6 from the reserved bus purchase account. 34.7 Subd. 4. [FUND TRANSFER, MCLEOD WEST.] Notwithstanding 34.8 Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 34.9 2004, Independent School District No. 2887, McLeod West, may 34.10 permanently transfer up to $200,000 from its reserved operating 34.11 capital account in its general fund to the undesignated general 34.12 fund balance. 34.13 Subd. 5. [FUND TRANSFER, M.A.C.C.R.A.Y.] (a) 34.14 Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 34.15 on June 30, 2004, upon approval of the commissioner of 34.16 education, Independent School District No. 2180, M.A.C.C.R.A.Y., 34.17 may permanently transfer up to $230,000 from its reserved 34.18 account for handicapped access to its undesignated general fund 34.19 balance. 34.20 (b) Prior to making the fund transfer, Independent School 34.21 District No. 2180, M.A.C.C.R.A.Y., must demonstrate to the 34.22 commissioner's satisfaction that the district's school buildings 34.23 are accessible to students and employees with disabilities. 34.24 Subd. 6. [FUND TRANSFER, NORTHEAST METRO.] Notwithstanding 34.25 Minnesota Statutes, sections 123B.79; 123B.80; and 475.61, 34.26 subdivision 4, on June 30, 2004, Intermediate School District 34.27 No. 916, Northeast Metro, may permanently transfer up to 34.28 $240,000 from its debt redemption fund to its capital account in 34.29 its general fund without making a levy reduction. 34.30 Subd. 7. [FUND TRANSFER, PILLAGER.] Notwithstanding 34.31 Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 34.32 subdivision 4, Independent School District No. 116, Pillager, on 34.33 June 30, 2004, may permanently transfer up to $100,000 from its 34.34 debt redemption fund to its general fund without making a levy 34.35 reduction. 34.36 [EFFECTIVE DATE.] This section is effective the day 35.1 following final enactment. 35.2 Sec. 13. [MAXIMUM EFFORT CAPITAL LOAN FORGIVEN; EAST 35.3 CENTRAL.] 35.4 Subdivision 1. [SALE REQUIREMENTS.] Independent School 35.5 District No. 2580, East Central, may sell its middle school 35.6 building in accordance with Minnesota Statutes, section 35.7 16A.695. The net proceeds from the sale of the property must be 35.8 paid to the commissioner of finance and deposited in the state 35.9 bond fund. 35.10 Subd. 2. [OUTSTANDING LOAN BALANCE FORGIVEN.] Any 35.11 remaining outstanding balance on the maximum effort capital loan 35.12 issued in January 1982 to former Independent School District No. 35.13 566, Askov, after the application of the sale proceeds according 35.14 to subdivision 1, is forgiven. 35.15 [EFFECTIVE DATE.] This section is effective the day 35.16 following final enactment. 35.17 Sec. 14. [SCHOOL BUS LOAN; CARPENTER SCHOOL BUSES.] 35.18 Subdivision 1. [BUS LOAN REVENUE.] In fiscal year 2005, 35.19 only a school district may receive bus loan revenue equal to up 35.20 to $30,000 times the number of Carpenter school buses in its 35.21 fleet between March 30, 2003, and March 30, 2004, that have been 35.22 determined to have potentially defective welds and are subject 35.23 to the limitations imposed by the Department of Public Safety. 35.24 A school district that is eligible to receive revenue under this 35.25 subdivision must approve a board resolution to receive revenue 35.26 according to this section. 35.27 Subd. 2. [LEVY.] For taxes payable in 2005 through 2008, a 35.28 school district that received revenue under subdivision 1 must 35.29 levy an amount equal to its bus loan revenue times .25. 35.30 Subd. 3. [GENERAL EDUCATION REVENUE WITHHOLDING.] For 35.31 fiscal years 2006 through 2009, the Department of Education 35.32 shall reduce the general education aid under Minnesota Statutes, 35.33 section 126C.13, subdivision 4, for each district that received 35.34 revenue under subdivision 1 in an amount equal to the district's 35.35 bus loan revenue times .25. 35.36 Sec. 15. [SUPPLEMENTARY LEVY AUTHORITY.] 36.1 (a) For taxes payable in 2005, 2006, and 2007 only, each 36.2 school district, upon approval of a school board resolution, may 36.3 levy up to $12 times the adjusted marginal cost pupil units 36.4 annually for one or more of the following uses: 36.5 (1) outstanding disability access projects; 36.6 (2) onetime health- and safety-related projects that are 36.7 not eligible for health and safety revenue under Minnesota 36.8 Statutes, section 123B.57; 36.9 (3) outstanding construction deficit costs of school 36.10 facilities shared with the community; 36.11 (4) utility and other costs of operating a district-owned 36.12 community center where the district colocates services with 36.13 other local units of government, in proportion to the amount of 36.14 time the district uses the facility; 36.15 (5) the district's share of the costs of building 36.16 noninstructional facilities that will be operated in cooperation 36.17 with other local units of government; 36.18 (6) the cost of leasing school-related storage facilities; 36.19 (7) the costs associated with leases of administrative and 36.20 classroom space shared with other school districts or higher 36.21 education institutions; 36.22 (8) outstanding building lease levy amounts under Minnesota 36.23 Statutes, section 126C.40, subdivision 1; outstanding 36.24 unemployment insurance amounts under Minnesota Statutes, section 36.25 126C.43, subdivision 2; outstanding amounts necessary for 36.26 judgments against the district under Minnesota Statutes, section 36.27 126C.43, subdivision 3; and additional costs under the safe 36.28 schools levy under Minnesota Statutes, section 126C.44; 36.29 (9) a school district whose total concentration of free and 36.30 reduced-price lunch students increased between fiscal years 2003 36.31 and 2004, may utilize the revenue under this section, according 36.32 to Minnesota Statutes, section 126C.13, subdivision 5; 36.33 (10) retired employee health benefits; or 36.34 (11) other district deferred maintenance projects or 36.35 capital projects eligible under Minnesota Statutes, section 36.36 126C.10, subdivision 14. 37.1 (b) In a form and manner determined by the Department of 37.2 Education, each district shall submit to the department the 37.3 amounts levied under this section for each category in paragraph 37.4 (a). 37.5 (c) The Department of Education shall not include the 37.6 district levy amounts under this section in the calculation of 37.7 eligible building lease levies under Minnesota Statutes, section 37.8 126C.40, subdivision 1. 37.9 [EFFECTIVE DATE.] This section is effective for taxes 37.10 payable in 2005, 2006, and 2007. 37.11 Sec. 16. [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 37.12 (a) The commissioner of education, when making offsetting 37.13 levy adjustments between levy categories to ensure that each 37.14 levy category is positive for Independent School District No. 37.15 599, Fertile-Beltrami, shall make such adjustments first between 37.16 levy categories that are imposed on identical tax bases before 37.17 making such adjustments between levy categories that are imposed 37.18 on different tax bases. The commissioner may make offsetting 37.19 levy adjustments between the general fund and the debt service 37.20 fund, if necessary. 37.21 (b) The commissioner of education must make the offsetting 37.22 levy adjustments according to the process in paragraph (a) until 37.23 Independent School District No. 599, Fertile-Beltrami's current 37.24 referendum authority, under Minnesota Statutes, section 126C.17, 37.25 expires. 37.26 Sec. 17. [TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.] 37.27 Subdivision 1. [COSTS TO BE SUBMITTED.] (a) A district or 37.28 charter school shall submit its actual 37.29 telecommunications/Internet access costs for the previous fiscal 37.30 year, adjusted for any e-rate revenue received, to the 37.31 department by August 15 of each year as prescribed by the 37.32 commissioner. Costs eligible for reimbursement under this 37.33 program are limited to the following: 37.34 (1) ongoing or recurring telecommunications/Internet access 37.35 costs associated with Internet access, data lines, and video 37.36 links providing: 38.1 (i) the equivalent of one data line, video link, or 38.2 integrated data/video link that relies on a transport medium 38.3 that operates at a speed of 1.544 megabytes per second (T1) for 38.4 each elementary school, middle school, or high school under 38.5 Minnesota Statutes, section 120A.05, subdivisions 9, 11, and 13; 38.6 including the recurring telecommunications line lease costs and 38.7 ongoing Internet access service fees; or 38.8 (ii) the equivalent of one data line or video circuit, or 38.9 integrated data/video link that relies on a transport medium 38.10 that operates at a minimum speed of 1.544 megabytes per second 38.11 (T1) for each district; including recurring telecommunications 38.12 line lease costs and ongoing Internet access service fees; 38.13 (2) recurring costs of contractual or vendor-provided 38.14 maintenance on the school district's wide area network to the 38.15 point of presence at the school building up to the router, 38.16 codec, or other service delivery equipment located at the point 38.17 of presence termination at the school or school district; 38.18 (3) recurring costs of cooperative, shared arrangements for 38.19 regional delivery of telecommunications/Internet access between 38.20 school districts, postsecondary institutions, and public 38.21 libraries including network gateways, peering points, regional 38.22 network infrastructure, Internet2 access, and network support, 38.23 maintenance, and coordination; and 38.24 (4) service provider installation fees for installation of 38.25 new telecommunications lines or increased bandwidth. 38.26 (b) Costs not eligible for reimbursement under this program 38.27 include: 38.28 (1) recurring costs of school district staff providing 38.29 network infrastructure support; 38.30 (2) recurring costs associated with voice and standard 38.31 telephone service; 38.32 (3) costs associated with purchase of network hardware, 38.33 telephones, computers, or other peripheral equipment needed to 38.34 deliver telecommunications access to the school or school 38.35 district; 38.36 (4) costs associated with laying fiber for 39.1 telecommunications access; 39.2 (5) costs associated with wiring school or school district 39.3 buildings; 39.4 (6) costs associated with purchase and/or installation of 39.5 Internet filtering; and 39.6 (7) costs associated with digital content, including 39.7 on-line learning or distance learning programming, and 39.8 information databases. 39.9 Subd. 2. [E-RATES.] To be eligible for aid under this 39.10 section, a district or charter school is required to file an 39.11 e-rate application either separately or through its 39.12 telecommunications access cluster and to have a current 39.13 technology plan on file with the Department of Education. 39.14 Discounts received on telecommunications expenditures shall be 39.15 reflected in the costs submitted to the department for aid under 39.16 this section. 39.17 Subd. 3. [REIMBURSEMENT CRITERIA.] The commissioner shall 39.18 develop criteria for approving costs submitted by school 39.19 districts and charter schools under subdivision 1. 39.20 Subd. 4. [DISTRICT AID.] For fiscal year 2005 and later, a 39.21 district's or charter school's Internet access equity aid equals 39.22 90 percent of the district's or charter school's approved cost 39.23 for the previous fiscal year according to subdivision 1 39.24 exceeding $15 times the district's adjusted marginal cost pupil 39.25 units for the previous fiscal year. 39.26 Subd. 5. [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 39.27 NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 39.28 formal request by or on behalf of a nonpublic school, not 39.29 including home schools, located in that district or area, 39.30 ongoing or recurring telecommunications access services to the 39.31 nonpublic school either through existing district providers or 39.32 through separate providers. 39.33 (b) The amount of district aid for telecommunications 39.34 access services for each nonpublic school under this subdivision 39.35 equals the lesser of: 39.36 (1) 90 percent of the nonpublic school's approved cost for 40.1 the previous fiscal year according to subdivision 1 exceeding 40.2 $10 times the number of weighted pupils enrolled at the 40.3 nonpublic school as of October 1 of the previous school year; or 40.4 (2) the product of the district's aid per adjusted marginal 40.5 cost pupil unit according to subdivision 4 times the number of 40.6 weighted pupils enrolled at the nonpublic school as of October 1 40.7 of the previous school year. 40.8 (c) For purposes of this subdivision, nonpublic school 40.9 pupils shall be weighted by grade level using the weighing 40.10 factors defined in Minnesota Statutes, section 126C.05, 40.11 subdivision 1. 40.12 (d) Each year, a district providing services under 40.13 paragraph (a) may claim up to five percent of the aid determined 40.14 in paragraph (b) for costs of administering this subdivision. 40.15 No district may expend an amount for these telecommunications 40.16 access services which exceeds the amount allocated under this 40.17 subdivision. The nonpublic school is responsible for the 40.18 Internet access costs not covered by this section. 40.19 (e) At the request of a nonpublic school, districts may 40.20 allocate the amount determined in paragraph (b) directly to the 40.21 nonpublic school to pay for or offset the nonpublic school's 40.22 costs for telecommunications access services, however, the 40.23 amount allocated directly to the nonpublic school may not exceed 40.24 the actual amount of the school's ongoing or recurring 40.25 telecommunications access costs. 40.26 Subd. 6. [SEVERABILITY.] If any portion of this section is 40.27 found by a court to be unconstitutional, the remaining portions 40.28 of the section shall remain in effect. 40.29 Sec. 18. [APPROPRIATIONS.] 40.30 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sum 40.31 indicated in this section is appropriated from the general fund 40.32 to the Department of Education for the fiscal year designated. 40.33 Subd. 2. [INTERNET ACCESS EQUITY AID.] For 40.34 telecommunications/Internet access cost equity aid: 40.35 $3,100,000 ..... 2005 40.36 If the appropriation for fiscal year 2005 is insufficient, 41.1 the aid for that year shall be prorated among participating 41.2 schools and districts so as not to exceed the total authorized 41.3 appropriation for that year. This is a onetime appropriation. 41.4 Subd. 3. [SCHOOL BUS LOAN REVENUE.] For school bus loan 41.5 revenue under section 14: 41.6 $3,630,000 ..... 2005 41.7 ARTICLE 4 41.8 AGENCIES 41.9 Section 1. [GOVERNOR'S 2006-2007 PROPOSED BUDGET.] 41.10 The governor shall include in the 2006-2007 budget 41.11 recommendation to the legislature a proposal for permanently 41.12 funding a voluntary full-day, everyday kindergarten program 41.13 available to all school districts and charter schools. The 41.14 proposal should identify the funding sources for the program. 41.15 [EFFECTIVE DATE.] This section is effective the day 41.16 following final enactment. 41.17 Sec. 2. Laws 2003, First Special Session chapter 9, 41.18 article 10, section 10, subdivision 2, is amended to read: 41.19 Subd. 2. [DEPARTMENT.] (a) For the department of education: 41.20 $23,653,000 ..... 2004 41.21$23,653,000$21,621,000 ..... 2005 41.22 Any balance in the first year does not cancel but is 41.23 available in the second year. 41.24 (b) $260,000 each year is for the Minnesota children's 41.25 museum. 41.26 (c) $41,000 each year is for the Minnesota academy of 41.27 science. 41.28 (d) $237,000 of the balance in the state education 41.29 courseware development account in the state government special 41.30 revenue fund as of July 1, 2004, is canceled to the general fund. 41.31 (e) $160,000 of the balance in the state item bank 41.32 revolving account in the state government special revenue fund 41.33 as of July 1, 2004, is canceled to the general fund. 41.34 (f) $621,000 each year is for the board of teaching. 41.35 (g) $165,000 each year is for the board of school 41.36 administrators. 42.1 (h) The commissioner is encouraged to give priority 42.2 consideration to the Minnesota humanities commission when 42.3 issuing grants for professional development of teachers or 42.4 content development from best practices, Federal Title II, Part 42.5 A, Federal Title V, Part A, or other appropriate grant resources 42.6 that have a stated objective of improvement of teacher 42.7 performance. 42.8 (i) An additional $96,000 in fiscal year 2004 and $96,000 42.9 in fiscal year 2005 are appropriated from the special revenue 42.10 fund under Minnesota Statutes, section 517.08, subdivision 1c, 42.11 for family visitation centers. Any balance in the first year 42.12 does not cancel but is available for the second year. 42.13 (j) The department may not use any amount of this 42.14 appropriation for agency dues or fees for membership in 42.15 professional organizations. 42.16 (k) The appropriation base for the Department of Education 42.17 is $21,147,000 for fiscal years 2006 and 2007. 42.18 Sec. 3. Laws 2003, First Special Session chapter 9, 42.19 article 10, section 11, is amended to read: 42.20 Sec. 11. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 42.21 The sums indicated in this section are appropriated from 42.22 the general fund to the Minnesota state academies for the deaf 42.23 and the blind for the fiscal years designated: 42.24 $10,466,000 ..... 2004 42.25 $10,466,000 ..... 2005 42.26 Any balance in the first year does not cancel but is 42.27 available in the second year. The appropriation base for the 42.28 Minnesota State Academies for the Deaf and Blind is $10,435,000 42.29 for fiscal years 2006 and 2007. 42.30 Sec. 4. Laws 2003, First Special Session chapter 9, 42.31 article 10, section 12, is amended to read: 42.32 Sec. 12. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 42.33 EDUCATION.] 42.34 The sums indicated in this section are appropriated from 42.35 the general fund to the Perpich center for arts education for 42.36 the fiscal years designated: 43.1 $6,864,000 ..... 2004 43.2 $6,423,000 ..... 2005 43.3 Any balance in the first year does not cancel but is 43.4 available in the second year. The appropriation base for the 43.5 Perpich center for arts education is $6,393,000 for fiscal years 43.6 2006 and 2007. 43.7 Sec. 5. [ELECTION OF UNEMPLOYMENT INSURANCE COVERAGE; 43.8 PERPICH CENTER FOR ARTS EDUCATION.] 43.9 The director of the Perpich Center for Arts Education must 43.10 file with the commissioner of employment and economic 43.11 development under Minnesota Statutes, section 268.042, a written 43.12 election to make employment in a position authorized by 43.13 Minnesota Statutes, section 43A.08, subdivision 1a, covered 43.14 employment for the years 2002 and 2003. The commissioner is 43.15 authorized to and must give approval to the application 43.16 retroactive for the years 2002 and 2003. 43.17 [EFFECTIVE DATE.] This section is effective retroactively 43.18 from January 1, 2002. 43.19 ARTICLE 5 43.20 KINDERGARTEN THROUGH GRADE 12 EDUCATION 43.21 FORECAST ADJUSTMENTS 43.22 A. GENERAL EDUCATION 43.23 Section 1. Laws 2003, First Special Session chapter 9, 43.24 article 1, section 53, subdivision 3, is amended to read: 43.25 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 43.26 referendum tax base replacement aid under Minnesota Statutes, 43.27 section 126C.17, subdivision 7a: 43.28$ 7,841,000$8,096,000 ..... 2004 43.29$ 8,543,000$8,596,000 ..... 2005 43.30 The 2004 appropriation includes $1,419,000 for 2003 and 43.31$6,422,000$6,677,000 for 2004. 43.32 The 2005 appropriation includes$1,605,000$1,669,000 for 43.33 2004 and$6,938,000$6,927,000 for 2005. 43.34 Sec. 2. Laws 2003, First Special Session chapter 9, 43.35 article 1, section 53, subdivision 5, is amended to read: 43.36 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 44.1 Minnesota Statutes, section 127A.49: 44.2$2,680,000$2,436,000 ..... 2004 44.3$2,937,000$1,559,000 ..... 2005 44.4 The 2004 appropriation includes $472,000 for 2003 and 44.5$2,208,000$1,964,000 for 2004. 44.6 The 2005 appropriation includes$551,000$491,000 for 2004 44.7 and$2,386,000$1,068,000 for 2005. 44.8 Sec. 3. Laws 2003, First Special Session chapter 9, 44.9 article 1, section 53, subdivision 6, is amended to read: 44.10 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 44.11 consolidating under Minnesota Statutes, section 123A.485: 44.12$207,000$ 35,000 ..... 2004 44.13$607,000$145,000 ..... 2005 44.14 The 2004 appropriation includes $35,000 for 2003 and 44.15$172,000$0 for 2004. 44.16 The 2005 appropriation includes$42,000$0 for 2004 and 44.17$565,000$145,000 for 2005. 44.18 Sec. 4. Laws 2003, First Special Session chapter 9, 44.19 article 1, section 53, subdivision 11, is amended to read: 44.20 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 44.21 education aid under Minnesota Statutes, sections 123B.40 to 44.22 123B.43 and 123B.87: 44.23$14,626,000$14,411,000 ..... 2004 44.24$15,594,000$15,072,000 ..... 2005 44.25 The 2004 appropriation includes $2,715,000 for 2003 and 44.26$11,911,000$11,696,000 for 2004. 44.27 The 2005 appropriation includes$2,977,000$2,923,000 for 44.28 2004 and$12,617,000$12,149,000 for 2005. 44.29 Sec. 5. Laws 2003, First Special Session chapter 9, 44.30 article 1, section 53, subdivision 12, is amended to read: 44.31 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 44.32 pupil transportation aid under Minnesota Statutes, section 44.33 123B.92, subdivision 9: 44.34$21,477,000$20,471,000 ..... 2004 44.35$21,982,000$21,421,000 ..... 2005 44.36 The 2004 appropriation includes $3,990,000 for 2003 and 45.1$17,487,000$16,481,000 for 2004. 45.2 The 2005 appropriation includes$4,371,000$4,120,000 for 45.3 2004 and$17,611,000$17,301,000 for 2005. 45.4 B. EDUCATION EXCELLENCE 45.5 Sec. 6. Laws 2003, First Special Session chapter 9, 45.6 article 2, section 55, subdivision 2, is amended to read: 45.7 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 45.8 lease aid under Minnesota Statutes, section 124D.11, subdivision 45.9 4: 45.10$17,140,000$16,753,000 ..... 2004 45.11$21,018,000$21,347,000 ..... 2005 45.12 The 2004 appropriation includes $2,524,000 for 2003 and 45.13$14,616,000$14,229,000 for 2004. 45.14 The 2005 appropriation includes$3,654,000$3,557,000 for 45.15 2004 and$17,364,000$17,790,000 for 2005. 45.16 Sec. 7. Laws 2003, First Special Session chapter 9, 45.17 article 2, section 55, subdivision 3, is amended to read: 45.18 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 45.19 startup cost aid under Minnesota Statutes, section 124D.11: 45.20$824,000$844,000 ..... 2004 45.21$151,000$156,000 ..... 2005 45.22 The 2004 appropriation includes $220,000 for 2003 and 45.23$604,000$624,000 for 2004. 45.24 The 2005 appropriation includes$151,000$156,000 for 2004 45.25 and $0 for 2005. 45.26 Sec. 8. Laws 2003, First Special Session chapter 9, 45.27 article 2, section 55, subdivision 4, is amended to read: 45.28 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 45.29 to charter schools to promote integration and desegregation 45.30 under Minnesota Statutes, section 124D.11, subdivision 6, 45.31 paragraph (e): 45.32$8,000$7,000 ..... 2004 45.33 This appropriation includes$8,000$7,000 for 2003 and $0 45.34 for 2004. 45.35 Sec. 9. Laws 2003, First Special Session chapter 9, 45.36 article 2, section 55, subdivision 5, is amended to read: 46.1 Subd. 5. [INTEGRATION AID.] For integration aid under 46.2 Minnesota Statutes, section 124D.86, subdivision 5: 46.3$56,869,000$55,911,000 ..... 2004 46.4$56,092,000$55,893,000 ..... 2005 46.5 The 2004 appropriation includes $8,428,000 for 2003 and 46.6$48,441,000$47,483,000 for 2004. 46.7 The 2005 appropriation includes$12,110,000$11,870,000 for 46.8 2004 and$43,982,000$44,023,000 for 2005. 46.9 Sec. 10. Laws 2003, First Special Session chapter 9, 46.10 article 2, section 55, subdivision 7, is amended to read: 46.11 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 46.12 startup aid under Minnesota Statutes, section 124D.88: 46.13 $ 37,000 ..... 2004 46.14$454,000$ 40,000 ..... 2005 46.15 The 2004 appropriation includes $37,000 for 2003 and $0 for 46.16 2004. 46.17 The 2005 appropriation includes $0 for 2004 and$437,00046.18 $40,000 for 2005. 46.19 Sec. 11. Laws 2003, First Special Session chapter 9, 46.20 article 2, section 55, subdivision 9, is amended to read: 46.21 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 46.22 success for the future grants under Minnesota Statutes, section 46.23 124D.81: 46.24$2,073,000$2,061,000 ..... 2004 46.25 $2,137,000 ..... 2005 46.26 The 2004 appropriation includes$363,000$351,000 for 2003 46.27 and $1,710,000 for 2004. 46.28 The 2005 appropriation includes $427,000 for 2004 and 46.29 $1,710,000 for 2005. 46.30 Sec. 12. Laws 2003, First Special Session chapter 9, 46.31 article 2, section 55, subdivision 12, is amended to read: 46.32 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 46.33 school aid under Minnesota Statutes, section 124D.83: 46.34$2,135,000$1,617,000 ..... 2004 46.35$2,336,000$2,185,000 ..... 2005 46.36 The 2004 appropriation includes $285,000 for 2003 and 47.1$1,850,000$1,332,000 for 2004. 47.2 The 2005 appropriation includes$462,000$333,000 for 2004 47.3 and$1,874,000$1,852,000 for 2005. 47.4 C. SPECIAL PROGRAMS 47.5 Sec. 13. Laws 2003, First Special Session chapter 9, 47.6 article 3, section 20, subdivision 4, is amended to read: 47.7 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 47.8 under Minnesota Statutes, section 125A.75, subdivision 3, for 47.9 children with disabilities placed in residential facilities 47.10 within the district boundaries for whom no district of residence 47.11 can be determined: 47.12$2,177,000$2,311,000 ..... 2004 47.13$2,244,000$2,550,000 ..... 2005 47.14 If the appropriation for either year is insufficient, the 47.15 appropriation for the other year is available. 47.16 Sec. 14. Laws 2003, First Special Session chapter 9, 47.17 article 3, section 20, subdivision 5, is amended to read: 47.18 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 47.19 teacher travel for home-based services under Minnesota Statutes, 47.20 section 125A.75, subdivision 1: 47.21$220,000$173,000 ..... 2004 47.22$261,000$178,000 ..... 2005 47.23 The 2004 appropriation includes $34,000 for 2003 and 47.24$186,000$139,000 for 2004. 47.25 The 2005 appropriation includes$46,000$34,000 for 2004 47.26 and$215,000$144,000 for 2005. 47.27 Sec. 15. Laws 2003, First Special Session chapter 9, 47.28 article 3, section 20, subdivision 6, is amended to read: 47.29 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 47.30 cost aid under Minnesota Statutes, section 125A.79, subdivision 47.31 7: 47.32$92,606,000$92,605,000 ..... 2004 47.33$92,984,000$92,799,000 ..... 2005 47.34 The 2004 appropriation includes $41,754,000 for 2003 and 47.35$50,852,000$50,851,000 for 2004. 47.36 The 2005 appropriation includes$41,215,000$41,216,000 for 48.1 2004 and$51,769,000$51,583,000 for 2005. 48.2 Sec. 16. Laws 2003, First Special Session chapter 9, 48.3 article 3, section 20, subdivision 7, is amended to read: 48.4 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 48.5 paying the costs a district incurs under Minnesota Statutes, 48.6 section 125A.75, subdivision 8: 48.7$346,000$201,000 ..... 2004 48.8$ 17,000$150,000 ..... 2005 48.9 Sec. 17. Laws 2003, First Special Session chapter 9, 48.10 article 3, section 20, subdivision 8, is amended to read: 48.11 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 48.12 transition programs for children with disabilities under 48.13 Minnesota Statutes, section 124D.454: 48.14$8,625,000$8,570,000 ..... 2004 48.15$8,867,000$8,760,000 ..... 2005 48.16 The 2004 appropriation includes $1,516,000 for 2003 and 48.17$7,109,000$7,054,000 for 2004. 48.18 The 2005 appropriation includes$1,777,000$1,763,000 for 48.19 2004 and$7,090,000$6,997,000 for 2005. 48.20 Sec. 18. Laws 2003, First Special Session chapter 9, 48.21 article 3, section 20, subdivision 9, is amended to read: 48.22 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 48.23 reimbursing serving school districts for unreimbursed eligible 48.24 expenditures attributable to children placed in the serving 48.25 school district by court action under Minnesota Statutes, 48.26 section 125A.79, subdivision 4: 48.27$152,000$36,000 ..... 2004 48.28$160,000$61,000 ..... 2005 48.29 D. FACILITIES AND TECHNOLOGY 48.30 Sec. 19. Laws 2003, First Special Session chapter 9, 48.31 article 4, section 31, subdivision 2, is amended to read: 48.32 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 48.33 safety aid according to Minnesota Statutes, section 123B.57, 48.34 subdivision 5: 48.35$7,839,000$5,356,000 ..... 2004 48.36$6,068,000$1,920,000 ..... 2005 49.1 The 2004 appropriation includes $1,516,000 for 2003 and 49.2$6,323,000$3,840,000 for 2004. 49.3 The 2005 appropriation includes$1,580,000$960,000 for 49.4 2004 and$4,488,000$960,000 for 2005. 49.5 Sec. 20. Laws 2003, First Special Session chapter 9, 49.6 article 4, section 31, subdivision 3, is amended to read: 49.7 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 49.8 according to Minnesota Statutes, section 123B.53, subdivision 6: 49.9$34,500,000$35,598,000 ..... 2004 49.10$37,575,000$31,220,000 ..... 2005 49.11 The 2004 appropriation includes $5,586,000 for 2003 and 49.12$28,914,000$30,012,000 for 2004. 49.13 The 2005 appropriation includes$7,228,000$7,503,000 for 49.14 2004 and$30,347,000$23,717,000 for 2005. 49.15 E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS 49.16 Sec. 21. Laws 2003, First Special Session chapter 9, 49.17 article 5, section 35, subdivision 2, is amended to read: 49.18 Subd. 2. [SCHOOL LUNCH.](a)For school lunch aid 49.19 according to Minnesota Statutes, section 124D.111, and Code of 49.20 Federal Regulations, title 7, section 210.17: 49.21$7,800,000$7,650,000 ..... 2004 49.22$7,950,000$7,760,000 ..... 2005 49.23 Sec. 22. [APPROPRIATIONS IN OTHER BILLS.] 49.24 Appropriations for forecast programs in this act supersede 49.25 appropriations for the same forecast programs in 2004 S.F. No. 49.26 2732, if enacted, or any other similarly styled bill.