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SF 55

as introduced - 91st Legislature (2019 - 2020) Posted on 01/10/2019 03:54pm

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

Current Version - as introduced

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A bill for an act
relating to education finance; modifying the calculation of special education aid;
appropriating money; amending Minnesota Statutes 2018, sections 125A.76,
subdivisions 1, 2a, 2c; 125A.79, subdivisions 1, 5.

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

Section 1.

Minnesota Statutes 2018, section 125A.76, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section and section 125A.79,
the definitions in this subdivision apply.

(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. For the
purposes of computing basic revenue pursuant to this section, each child with a disability
shall be counted as prescribed in section 126C.05, subdivision 1.

(c) "Essential personnel" means teachers, cultural liaisons, related services, and support
services staff providing services to students. Essential personnel may also include special
education paraprofessionals or clericals providing support to teachers and students by
preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individualized education programs. Essential
personnel does not include administrators and supervisors.

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

(e) "Program growth factor" means 1.046 for fiscal years 2012 through 2015, 1.0 for
fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the program growth
factor for the previous year for fiscal year 2018 and later.

(f) "Nonfederal special education expenditure" means all direct expenditures that are
necessary and essential to meet the district's obligation to provide special instruction and
services to children with a disability according to sections 124D.454, 125A.03 to 125A.24,
125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by the
department under section 125A.75, subdivision 4, excluding expenditures:

(1) reimbursed with federal funds;

(2) reimbursed with other state aids under this chapter;

(3) for general education costs of serving students with a disability;

(4) for facilities;

(5) for pupil transportation; and

(6) for postemployment benefits.

(g) "Old formula special education expenditures" means expenditures eligible for revenue
under Minnesota Statutes 2012, section 125A.76, subdivision 2.

(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and fringe
benefits of one-to-one instructional and behavior management aides and one-to-one licensed,
certified professionals assigned to a child attending the academy, if the aides or professionals
are required by the child's individualized education program.

(i) deleted text begin "Special education aid increase limit" means $80 for fiscal year 2016, $100 for fiscal
year 2017, and, for fiscal year 2018 and later, the sum of the special education aid increase
limit for the previous fiscal year and $40.
deleted text end

deleted text begin (j)deleted text end "District" means a school district, a charter school, or a cooperative unit as defined
in section 123A.24, subdivision 2. Notwithstanding section 123A.26, cooperative units as
defined in section 123A.24, subdivision 2, are eligible to receive special education aid under
this section and section 125A.79.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2018, section 125A.76, subdivision 2a, is amended to read:


Subd. 2a.

Special education initial aid.

For fiscal year deleted text begin 2016deleted text end new text begin 2020new text end and later, a district's
special education initial aid equals the sum of:

(1) the least of 62 percent of the district's old formula special education expenditures
for the deleted text begin priordeleted text end new text begin currentnew text end fiscal year, excluding pupil transportation expenditures, 50 percent of
the district's nonfederal special education expenditures for the deleted text begin priordeleted text end new text begin currentnew text end year, excluding
pupil transportation expenditures, or 56 percent of the product of the sum of the following
amounts, computed using deleted text begin priordeleted text end new text begin currentnew text end fiscal year data, and the program growth factor:

(i) the product of the district's average daily membership served and the sum of:

(A) $450; plus

(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 who
are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 who are
eligible to receive reduced-price lunch to the total October 1 enrollment; plus

(C) .008 times the district's average daily membership served; plus

(ii) $10,400 times the December 1 child count for the primary disability areas of autism
spectrum disorders, developmental delay, and severely multiply impaired; plus

(iii) $18,000 times the December 1 child count for the primary disability areas of deaf
and hard-of-hearing and emotional or behavioral disorders; plus

(iv) $27,000 times the December 1 child count for the primary disability areas of
developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
physically impaired, visually impaired, and deafblind; plus

(2) the cost of providing transportation services for children with disabilities under
section 123B.92, subdivision 1, paragraph (b), clause (4).

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2018, section 125A.76, subdivision 2c, is amended to read:


Subd. 2c.

Special education aid.

(a) For fiscal year 2016 and later, a district's special
education aid equals the sum of the district's special education initial aid under subdivision
2a and the district's excess cost aid under section 125A.79, subdivision 5.

deleted text begin (b) Notwithstanding paragraph (a), for fiscal year 2016, the special education aid for a
school district must not exceed the sum of the special education aid the district would have
received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79,
as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision
7
, and the product of the district's average daily membership served and the special education
aid increase limit.
deleted text end

deleted text begin (c) Notwithstanding paragraph (a), for fiscal year 2017 and later, the special education
aid for a school district must not exceed the sum of: (i) the product of the district's average
daily membership served and the special education aid increase limit and (ii) the product
of the sum of the special education aid the district would have received for fiscal year 2016
under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to
Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the
district's average daily membership served for the current fiscal year to the district's average
daily membership served for fiscal year 2016, and the program growth factor.
deleted text end

deleted text begin (d)deleted text end new text begin (b)new text end Notwithstanding paragraph (a), for fiscal year 2016 and later the special education
aid for a school district, not including a charter school or cooperative unit as defined in
section 123A.24, must not be less than the lesser of (1) the district's nonfederal special
education expenditures for that fiscal year or (2) the product of the sum of the special
education aid the district would have received for fiscal year 2016 under Minnesota Statutes
2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012,
sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted daily
membership for the current fiscal year to the district's average daily membership for fiscal
year 2016, and the program growth factor.

deleted text begin (e) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first year
of operation shall generate special education aid based on current year data. A newly formed
cooperative unit as defined in section 123A.24 may apply to the commissioner for approval
to generate special education aid for its first year of operation based on current year data,
with an offsetting adjustment to the prior year data used to calculate aid for programs at
participating school districts or previous cooperatives that were replaced by the new
cooperative.
deleted text end new text begin (c)new text end The department shall establish procedures to adjust the prior year data and
fiscal year 2016 old formula aid used in calculating special education aid to exclude costs
that have been eliminated for districts where programs have closed or where a substantial
portion of the program has been transferred to a cooperative unit.

deleted text begin (f)deleted text end new text begin (d)new text end The department shall establish procedures through the uniform financial accounting
and reporting system to identify and track all revenues generated from third-party billings
as special education revenue at the school district level; include revenue generated from
third-party billings as special education revenue in the annual cross-subsidy report; and
exclude third-party revenue from calculation of excess cost aid to the districts.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2018, section 125A.79, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(a) "Unreimbursed old formula special education expenditures" means:

(1) old formula special education expenditures for the deleted text begin priordeleted text end new text begin currentnew text end fiscal year; minus

(2) for fiscal year 2016 and later, the special education initial aid under section 125A.76,
subdivision 2a; minus

(3) for fiscal year 2016 and later, the amount of general education revenue, excluding
local optional revenue, plus local optional aid and referendum equalization aid for the deleted text begin priordeleted text end new text begin
current
new text end fiscal year attributable to pupils receiving special instruction and services outside
the regular classroom for more than 60 percent of the school day for the portion of time the
pupils receive special instruction and services outside the regular classroom, excluding
portions attributable to district and school administration, district support services, operations
and maintenance, capital expenditures, and pupil transportation.

(b) "Unreimbursed nonfederal special education expenditures" means:

(1) nonfederal special education expenditures for the deleted text begin priordeleted text end new text begin currentnew text end fiscal year; minus

(2) special education initial aid under section 125A.76, subdivision 2a; minus

(3) the amount of general education revenue, excluding local optional revenue, plus
local optional aid, and referendum equalization aid for the deleted text begin priordeleted text end new text begin currentnew text end fiscal year attributable
to pupils receiving special instruction and services outside the regular classroom for more
than 60 percent of the school day for the portion of time the pupils receive special instruction
and services outside of the regular classroom, excluding portions attributable to district and
school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation.

(c) "General revenue" for a school district means the sum of the general education
revenue according to section 126C.10, subdivision 1, excluding transportation sparsity
revenue, local optional revenue, and total operating capital revenue. "General revenue" for
a charter school means the sum of the general education revenue according to section
124E.20, subdivision 1, and transportation revenue according to section 124E.23, excluding
referendum equalization aid, transportation sparsity revenue, and operating capital revenue.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2018, section 125A.79, subdivision 5, is amended to read:


Subd. 5.

Excess cost aid.

For fiscal year deleted text begin 2016deleted text end new text begin 2020new text end and later, a district's excess cost
aid equals the greater of:

(1) 56 percent of the difference between (i) the district's unreimbursed nonfederal special
education expenditures and (ii) 7.0 percent of the product of the ratio of $5,831 to the formula
allowance for the deleted text begin priordeleted text end new text begin currentnew text end year and the district's general revenue;

(2) 62 percent of the difference between (i) the district's unreimbursed old formula special
education expenditures and (ii) 2.5 percent of the product of the ratio of $5,831 to the formula
allowance for the deleted text begin priordeleted text end new text begin currentnew text end year and the district's general revenue; or

(3) zero.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

new text begin For special education aid under Minnesota Statutes,
section 125A.75:
new text end

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

new text begin The 2020 appropriation includes $....... for 2019 and $....... for 2020. The 2021
appropriation includes $....... for 2020 and $....... for 2021.
new text end