1.1                          A bill for an act 
  1.2             relating to education; providing for finance reform; 
  1.3             amending Minnesota Statutes 1996, sections 120.062, 
  1.4             subdivision 9; 124.225, subdivisions 1, 13, 14, 15, 
  1.5             16, and 17; 124.226, subdivision 10; 124.248, 
  1.6             subdivisions 1a and 3; 124.2727, subdivisions 6a, 6c, 
  1.7             and 6d; 124.312, subdivisions 4 and 5; 124.313; 
  1.8             124.314, subdivisions 1 and 2; 124.3201, subdivisions 
  1.9             1, 2, and 4; 124.323, subdivision 1; 124A.22, 
  1.10            subdivisions 1, 2, 3, 13a, 13b, and by adding a 
  1.11            subdivision; 124A.23, subdivision 1; and 124A.28; 
  1.12            proposing coding for new law in Minnesota Statutes, 
  1.13            chapter 124; repealing Minnesota Statutes 1996, 
  1.14            sections 124.223; 124.225, subdivisions 3a, 7a, 7b, 
  1.15            7d, 7e, 8a, and 8k; 124.2727, subdivisions 6a, 6b, 6c, 
  1.16            and 9; 124.311; 124.312; 124.313; 124.314; 124.912, 
  1.17            subdivisions 2 and 3; 124A.02, subdivision 24; and 
  1.18            124A.22, subdivisions 4, 4a, and 4b. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 1996, section 120.062, 
  1.21  subdivision 9, is amended to read: 
  1.22     Subd. 9.  [TRANSPORTATION.] ~~(a)~~ If requested by the parent 
  1.23  of a pupil, the nonresident district shall provide 
  1.24  transportation within the district.  ~~The state shall pay~~ 
  1.25  ~~transportation aid to the district according to section 124.225.~~ 
  1.26     The resident district is not required to provide or pay for 
  1.27  transportation between the pupil's residence and the border of 
  1.28  the nonresident district.  A parent may be reimbursed by the 
  1.29  nonresident district for the costs of transportation from the 
  1.30  pupil's residence to the border of the nonresident district if 
  1.31  the pupil is from a family whose income is at or below the 
  1.32  poverty level, as determined by the federal government.  The 
  2.1   reimbursement may not exceed the pupil's actual cost of 
  2.2   transportation or 15 cents per mile traveled, whichever is 
  2.3   less.  Reimbursement may not be paid for more than 250 miles per 
  2.4   week.  
  2.5      At the time a nonresident district notifies a parent or 
  2.6   guardian that an application has been accepted under subdivision 
  2.7   5 or 6, the nonresident district must provide the parent or 
  2.8   guardian with the following information regarding the 
  2.9   transportation of nonresident pupils under this section: 
  2.10     (1) a nonresident district may transport a pupil within the 
  2.11  pupil's resident district under this section only with the 
  2.12  approval of the resident district; and 
  2.13     (2) a parent or guardian of a pupil attending a nonresident 
  2.14  district under this section may appeal under section 123.39, 
  2.15  subdivision 6, the refusal of the resident district to allow the 
  2.16  nonresident district to transport the pupil within the resident 
  2.17  district. 
  2.18     ~~(b) Notwithstanding paragraph (a) and section 124.225,~~ 
  2.19  ~~subdivision 8l, transportation provided by a nonresident~~ 
  2.20  ~~district between home and school for a pupil attending school~~ 
  2.21  ~~under this section is authorized for nonregular transportation~~ 
  2.22  ~~revenue under section 124.225, if the following criteria are met:~~
  2.23     ~~(1) the school that the pupil was attending prior to~~ 
  2.24  ~~enrolling in the nonresident district under this section was~~ 
  2.25  ~~closed;~~ 
  2.26     ~~(2) the distance from the closed school to the next nearest~~ 
  2.27  ~~school in the district that the student could attend is at least~~ 
  2.28  ~~20 miles;~~ 
  2.29     ~~(3) the pupil's residence is at least 20 miles from any~~ 
  2.30  ~~school that the pupil could attend in the resident district; and~~ 
  2.31     ~~(4) the pupil's residence is closer to the school of~~ 
  2.32  ~~attendance in the nonresident district than to any school the~~ 
  2.33  ~~pupil could attend in the resident district.~~ 
  2.34     Sec. 2.  Minnesota Statutes 1996, section 124.225, 
  2.35  subdivision 1, is amended to read: 
  2.36     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
  3.1   and section 124.3201, the terms defined in this subdivision have 
  3.2   the meanings given to them. 
  3.3      (a) ~~"FTE" means a full-time equivalent pupil whose~~ 
  3.4   ~~transportation is authorized for aid purposes by section 124.223.~~
  3.5      ~~(b) "Authorized cost for regular transportation"~~ 
  3.6   ~~means~~ "Actual expenditure per pupil transported in the regular 
  3.7   and excess transportation categories" means the quotient 
  3.8   obtained by dividing: 
  3.9      (1) the sum of: 
  3.10     ~~(1)~~ (i) all expenditures for transportation in the regular 
  3.11  category, as defined in paragraph ~~(c)~~ (b), clause (1), ~~for which~~ 
  3.12  ~~aid is authorized in section 124.223~~ and the excess category, as 
  3.13  defined in paragraph (b), clause (2), plus 
  3.14     ~~(2)~~ (ii) an amount equal to one year's depreciation on the 
  3.15  district's school bus fleet and mobile units computed on a 
  3.16  straight line basis at the rate of 15 percent per year for 
  3.17  districts operating a program under section 121.585 for grades 1 
  3.18  to 12 for all students in the district and 12-1/2 percent per 
  3.19  year for other districts of the cost of the fleet, plus 
  3.20     ~~(3) an amount equal to one year's depreciation on district~~ 
  3.21  ~~school buses reconditioned by the department of corrections~~ 
  3.22  ~~computed on a straight line basis at the rate of 33-1/3 percent~~ 
  3.23  ~~per year of the cost to the district of the reconditioning, plus~~ 
  3.24     ~~(4)~~ (iii) an amount equal to one year's depreciation on the 
  3.25  district's type three school buses, as defined in section 
  3.26  169.01, subdivision 6, clause (5), which must be used a majority 
  3.27  of the time for ~~the~~ pupil transportation purposes ~~in sections~~ 
  3.28  ~~124.223 and 124.226, subdivisions 5, 8, and 9, and were~~ 
  3.29  ~~purchased after July 1, 1982, for authorized transportation of~~ 
  3.30  ~~pupils~~, computed on a straight line basis at the rate of 20 
  3.31  percent per year of the cost of the type three school buses by: 
  3.32     (2) the number of pupils eligible for transportation in the 
  3.33  regular category, as defined in paragraph (b), clause (1), and 
  3.34  the excess category, as defined in paragraph (b), clause (2).  
  3.35     ~~(c)~~ (b) "Transportation category" means a category of 
  3.36  transportation service provided to pupils as follows:  
  4.1      (1) Regular transportation is ~~transportation services~~ 
  4.2   ~~provided during the regular school year under section 124.223,~~ 
  4.3   ~~subdivisions 1 and 2, excluding the following transportation~~ 
  4.4   ~~services provided under section 124.223, subdivision 1:~~  
  4.5   ~~transportation between schools; transportation to and from~~ 
  4.6   ~~service-learning programs; noon transportation to and from~~ 
  4.7   ~~school for kindergarten pupils attending half-day sessions;~~ 
  4.8   ~~transportation of pupils to and from schools located outside~~ 
  4.9   ~~their normal attendance areas under the provisions of a plan for~~ 
  4.10  ~~desegregation mandated by the state board of education or under~~ 
  4.11  ~~court order; and transportation of elementary pupils to and from~~ 
  4.12  ~~school within a mobility zone.~~: 
  4.13     (i) transportation to and from school during the regular 
  4.14  school year for resident elementary pupils residing one mile or 
  4.15  more from the public or nonpublic school they attend, and 
  4.16  resident secondary pupils residing two miles or more from the 
  4.17  public or nonpublic school they attend, excluding desegregation 
  4.18  transportation and noon kindergarten transportation; but with 
  4.19  respect to transportation of pupils to and from nonpublic 
  4.20  schools, only to the extent permitted by sections 123.76 to 
  4.21  123.79; 
  4.22     (ii) transportation of resident pupils to and from language 
  4.23  immersion programs; 
  4.24     (iii) transportation of a pupil who is a custodial parent 
  4.25  and that pupil's child between the pupil's home and the child 
  4.26  care provider and between the provider and the school, if the 
  4.27  home and provider are within the attendance area of the school; 
  4.28     (iv) transportation to and from or board and lodging in 
  4.29  another district, of resident pupils of a district without a 
  4.30  secondary school. 
  4.31     For the purposes of this paragraph, a district may 
  4.32  designate a licensed day care facility, respite care facility, 
  4.33  the residence of a relative, or the residence of a person chosen 
  4.34  by the pupil's parent or guardian as the home of a pupil for 
  4.35  part or all of the day, if requested by the pupil's parent or 
  4.36  guardian, and if that facility or residence is within the 
  5.1   attendance area of the school the pupil attends. 
  5.2      (2) ~~Nonregular transportation is transportation services~~ 
  5.3   ~~provided under section 124.223, subdivision 1, that are excluded~~ 
  5.4   ~~from the regular category and transportation services provided~~ 
  5.5   ~~under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10.~~ 
  5.6      ~~(3)~~ Excess transportation is transportation to and from 
  5.7   school during the regular school year for secondary pupils 
  5.8   residing at least one mile but less than two miles from the 
  5.9   public ~~school they could attend~~ or ~~from the~~ nonpublic school 
  5.10  ~~actually attended~~ they attend, and transportation to and from 
  5.11  school for pupils residing less than one mile from school who 
  5.12  are transported because of extraordinary traffic, drug, or crime 
  5.13  hazards. 
  5.14     ~~(4)~~ (3) Desegregation transportation is transportation 
  5.15  within and outside of the district during the regular school 
  5.16  year of pupils to and from schools located outside their normal 
  5.17  attendance areas under a plan for desegregation mandated by the 
  5.18  state board or under court order.  
  5.19     ~~(5) Handicapped transportation is transportation provided~~ 
  5.20  ~~under section 124.223, subdivision 4, for pupils with a~~ 
  5.21  ~~disability between home or a respite care facility and school or~~ 
  5.22  ~~other buildings where special instruction required by sections~~ 
  5.23  ~~120.17 and 120.1701 is provided.~~ 
  5.24     (4) "Transportation services for pupils with disabilities" 
  5.25  is: 
  5.26     (i) transportation of pupils with disabilities who cannot 
  5.27  be transported on a regular school bus between home or a respite 
  5.28  care facility and school; 
  5.29     (ii) necessary transportation of pupils with disabilities 
  5.30  from home or from school to other buildings, including centers 
  5.31  such as developmental achievement centers, hospitals, and 
  5.32  treatment centers where special instruction or services required 
  5.33  by sections 120.17 and 120.1701 are provided, within or outside 
  5.34  the district where services are provided; 
  5.35     (iii) necessary transportation for resident pupils with 
  5.36  disabilities required by sections 120.17, subdivision 4a, and 
  6.1   120.1701; 
  6.2      (iv) board and lodging for pupils with disabilities in a 
  6.3   district maintaining special classes; 
  6.4      (v) transportation from one educational facility to another 
  6.5   within the district for resident pupils enrolled on a 
  6.6   shared-time basis in educational programs, and necessary 
  6.7   transportation required by sections 120.17, subdivision 9, and 
  6.8   120.1701, for resident pupils with disabilities who are provided 
  6.9   special instruction and services on a shared-time basis; 
  6.10     (vi) transportation for resident pupils with disabilities 
  6.11  to and from board and lodging facilities when the pupil is 
  6.12  boarded and lodged for educational purposes; and 
  6.13     (vii) services described in clauses (i) to (vi), when 
  6.14  provided for pupils with disabilities in conjunction with a 
  6.15  summer instructional program that relates to the pupil's 
  6.16  individual education plan or in conjunction with a learning year 
  6.17  program established under section 121.585. 
  6.18     (5) "Nonpublic nonregular transportation" is: 
  6.19     (i) transportation from one educational facility to another 
  6.20  within the district for resident pupils enrolled on a 
  6.21  shared-time basis in educational programs, excluding 
  6.22  transportation for nonpublic pupils with disabilities under 
  6.23  clause (4); 
  6.24     (ii) transportation within district boundaries between a 
  6.25  nonpublic school and a public school or a neutral site for 
  6.26  nonpublic school pupils who are provided pupil support services 
  6.27  pursuant to section 123.935; and 
  6.28     (iii) late transportation home from school or between 
  6.29  schools within a district for nonpublic school pupils involved 
  6.30  in after-school activities. 
  6.31     ~~(d)~~ (c) "Mobile unit" means a vehicle or trailer designed 
  6.32  to provide facilities for educational programs and services, 
  6.33  including diagnostic testing, guidance and counseling services, 
  6.34  and health services.  A mobile unit located off nonpublic school 
  6.35  premises is a neutral site as defined in section 123.932, 
  6.36  subdivision 9. 
  7.1      ~~(e) "Current year" means the school year for which aid will~~ 
  7.2   ~~be paid.~~  
  7.3      ~~(f) "Base year" means the second school year preceding the~~ 
  7.4   ~~school year for which aid will be paid.~~  
  7.5      ~~(g) "Base cost" means the ratio of:~~ 
  7.6      ~~(1) the sum of the authorized cost in the base year for~~ 
  7.7   ~~regular transportation as defined in paragraph (b) plus the~~ 
  7.8   ~~actual cost in the base year for excess transportation as~~ 
  7.9   ~~defined in paragraph (c);~~ 
  7.10     ~~(2) to the sum of the number of weighted FTE's in the~~ 
  7.11  ~~regular and excess categories in the base year.~~ 
  7.12     ~~(h) "Pupil weighting factor" for the excess transportation~~ 
  7.13  ~~category for a school district means the lesser of one, or the~~ 
  7.14  ~~result of the following computation:~~ 
  7.15     ~~(1) Divide the square mile area of the school district by~~ 
  7.16  ~~the number of FTE's in the regular and excess categories in the~~ 
  7.17  ~~base year.~~ 
  7.18     ~~(2) Raise the result in clause (1) to the one-fifth power.~~ 
  7.19     ~~(3) Divide four-tenths by the result in clause (2).~~ 
  7.20     ~~The pupil weighting factor for the regular transportation~~ 
  7.21  ~~category is one.~~  
  7.22     ~~(i) "Weighted FTE's"  means the number of FTE's in each~~ 
  7.23  ~~transportation category multiplied by the pupil weighting factor~~ 
  7.24  ~~for that category.~~ 
  7.25     ~~(j) "Sparsity index" for a school district means the~~ 
  7.26  ~~greater of .005 or the ratio of the square mile area of the~~ 
  7.27  ~~school district to the sum of the number of weighted FTE's by~~ 
  7.28  ~~the district in the regular and excess categories in the base~~ 
  7.29  ~~year.~~ 
  7.30     ~~(k) "Density index" for a school district means the greater~~ 
  7.31  ~~of one or the result obtained by subtracting the product of the~~ 
  7.32  ~~district's sparsity index times 20 from two.~~ 
  7.33     ~~(l) "Contract transportation index" for a school district~~ 
  7.34  ~~means the greater of one or the result of the following~~ 
  7.35  ~~computation:~~ 
  7.36     ~~(1) Multiply the district's sparsity index by 20.~~ 
  8.1      ~~(2) Select the lesser of one or the result in clause (1).~~ 
  8.2      ~~(3) Multiply the district's percentage of regular FTE's in~~ 
  8.3   ~~the current year using vehicles that are not owned by the school~~ 
  8.4   ~~district by the result in clause (2).~~ 
  8.5      ~~(m) "Adjusted predicted base cost" means the predicted base~~ 
  8.6   ~~cost as computed in subdivision 3a as adjusted under subdivision~~ 
  8.7   ~~7a.~~ 
  8.8      ~~(n) "Regular transportation allowance" means the adjusted~~ 
  8.9   ~~predicted base cost, inflated and adjusted under subdivision 7b.~~ 
  8.10     Sec. 3.  Minnesota Statutes 1996, section 124.225, 
  8.11  subdivision 13, is amended to read: 
  8.12     Subd. 13.  [TARGETED NEEDS TRANSPORTATION REVENUE.] A 
  8.13  district's targeted needs transportation revenue for the 
  8.14  1996-1997 and ~~later~~ 1997-1998 school years equals the sum of the 
  8.15  special programs transportation revenue according to subdivision 
  8.16  14, the integration transportation revenue according to 
  8.17  subdivision 15, and the nonpublic pupil transportation ~~revenue~~ 
  8.18  aid according to subdivision 16. 
  8.19     Sec. 4.  Minnesota Statutes 1996, section 124.225, 
  8.20  subdivision 14, is amended to read: 
  8.21     Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
  8.22  district's special programs transportation revenue for the 
  8.23  1996-1997 and ~~later~~ 1997-1998 school years equals the sum of: 
  8.24     (a) the district's actual cost in the base year for 
  8.25  transportation services for children with disabilities under 
  8.26  ~~section 124.223, subdivisions 4, 5, 7, and 8~~ subdivision 1, 
  8.27  paragraph (b), clause (4), times the ratio of the district's 
  8.28  average daily membership for the current school year to the 
  8.29  district's average daily membership for the base year; plus 
  8.30     (b) the greater of zero or 80 percent of the difference 
  8.31  between: 
  8.32     (1) the district's actual cost in the current year for 
  8.33  transportation services for children with disabilities under 
  8.34  ~~section 124.223, subdivisions 4, 5, 7, and 8~~ subdivision 1, 
  8.35  paragraph (b), clause (4); and 
  8.36     (2) the amount computed in paragraph (a). 
  9.1      Sec. 5.  Minnesota Statutes 1996, section 124.225, 
  9.2   subdivision 15, is amended to read: 
  9.3      Subd. 15.  [INTEGRATION TRANSPORTATION REVENUE.] A 
  9.4   district's integration transportation revenue for the 1996-1997 
  9.5   and ~~later~~ 1997-1998 school years equals the following amounts: 
  9.6      (a) for independent school district No. 709, Duluth, $4 
  9.7   times the actual pupil units for the school year; 
  9.8      (b) for independent school district No. 625, St. Paul, $73 
  9.9   times the actual pupil units for the school year; and 
  9.10     (c) for special school district No. 1, Minneapolis, $158 
  9.11  times the actual pupil units for the school year. 
  9.12     Sec. 6.  Minnesota Statutes 1996, section 124.225, 
  9.13  subdivision 16, is amended to read: 
  9.14     Subd. 16.  [NONPUBLIC PUPIL TRANSPORTATION ~~REVENUE~~ AID.] 
  9.15  (a) A district's nonpublic pupil transportation ~~revenue~~ aid for 
  9.16  the 1996-1997 and later school years for transportation services 
  9.17  for nonpublic school pupils according to sections 123.39, 123.76 
  9.18  to 123.78, ~~124.223,~~ and ~~124.226~~ this section, equals the sum of 
  9.19  the amounts computed in paragraphs (b) and (c).  This ~~revenue~~ 
  9.20  aid does not limit the obligation to transport pupils under 
  9.21  sections 123.76 to 123.79. 
  9.22     (b) For regular and excess transportation according to 
  9.23  ~~section 124.225,~~ subdivision 1, paragraph ~~(c)~~ (b), clauses (1) 
  9.24  and ~~(3)~~ (2), an amount equal to the product of: 
  9.25     (1) the district's actual expenditure per pupil transported 
  9.26  in the regular and excess transportation categories during the 
  9.27  second preceding school year; times 
  9.28     (2) the number of nonpublic school pupils residing in the 
  9.29  district who receive regular or excess transportation service or 
  9.30  reimbursement for the current school year; times 
  9.31     (3) the ratio of the formula allowance pursuant to section 
  9.32  124A.22, subdivision 2, for the current school year to the 
  9.33  formula allowance pursuant to section 124A.22, subdivision 2, 
  9.34  for the second preceding school year. 
  9.35     (c) For nonpublic nonregular transportation according to 
  9.36  ~~section 124.225,~~ subdivision 1, paragraph ~~(c)~~ (b), 
 10.1   clause ~~(2)~~ (5), ~~excluding transportation services for children~~ 
 10.2   ~~with disabilities under section 124.223, subdivisions 4, 5, 7,~~ 
 10.3   ~~and 8, and late activity transportation according to section~~ 
 10.4   ~~124.226, subdivision 9,~~ an amount equal to the product of: 
 10.5      (1) the district's actual expenditure for nonpublic 
 10.6   nonregular ~~and late activity~~ transportation ~~for nonpublic school~~ 
 10.7   ~~pupils~~ during the second preceding school year; times 
 10.8      (2) the ratio of the formula allowance pursuant to section 
 10.9   124A.22, subdivision 2, for the current school year to the 
 10.10  formula allowance pursuant to section 124A.22, subdivision 2, 
 10.11  for the second preceding school year. 
 10.12     (d) Notwithstanding the amount of the formula allowance for 
 10.13  fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
 10.14  the commissioner shall use the amount of the formula allowance 
 10.15  less $300 in determining the nonpublic pupil transportation 
 10.16  revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.
 10.17     Sec. 7.  Minnesota Statutes 1996, section 124.225, 
 10.18  subdivision 17, is amended to read: 
 10.19     Subd. 17.  [TARGETED NEEDS TRANSPORTATION AID.] (a) For 
 10.20  fiscal years 1997 and 1998, a district's targeted needs 
 10.21  transportation aid is the difference between its targeted needs 
 10.22  transportation revenue under subdivision 13 and its targeted 
 10.23  needs transportation levy under section 124.226, subdivision 10. 
 10.24     (b) If a district does not levy the entire amount 
 10.25  permitted, aid must be reduced in proportion to the actual 
 10.26  amount levied. 
 10.27     Sec. 8.  Minnesota Statutes 1996, section 124.226, 
 10.28  subdivision 10, is amended to read: 
 10.29     Subd. 10.  [TARGETED NEEDS TRANSPORTATION LEVY.] A school 
 10.30  district may make a levy for targeted needs transportation costs 
 10.31  according to this subdivision.  The amount of the levy shall be 
 10.32  the result of the following computation: 
 10.33     (1) For fiscal ~~year~~ years 1997 and ~~later~~ 1998, targeted 
 10.34  needs transportation levy equalization revenue equals 28 percent 
 10.35  of the sum of the district's special programs transportation 
 10.36  revenue under section 124.225, subdivision 14, and the 
 11.1   district's integration transportation revenue under section 
 11.2   124.225, subdivision 15. 
 11.3      (2) The targeted needs transportation levy equals the 
 11.4   result in clause (1) times the lesser of one or the ratio of (i) 
 11.5   the quotient derived by dividing the adjusted net tax capacity 
 11.6   of the district for the year before the year the levy is 
 11.7   certified by the actual pupil units in the district for the 
 11.8   school year to which the levy is attributable, to (ii) $3,540. 
 11.9      Sec. 9.  Minnesota Statutes 1996, section 124.248, 
 11.10  subdivision 1a, is amended to read: 
 11.11     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 11.12  shall be paid to a charter school that provides transportation 
 11.13  services according to section 120.064, subdivision 15, according 
 11.14  to this subdivision.  Transportation aid shall equal 
 11.15  transportation revenue.  
 11.16     (a) In addition to the revenue under subdivision 1, a 
 11.17  charter school providing transportation services shall receive 
 11.18  general education aid for each pupil unit equal to the sum of 
 11.19  $170, plus the transportation sparsity allowance for the school 
 11.20  district in which the charter school is located, plus the 
 11.21  transportation transition allowance for the school district in 
 11.22  which the charter school is located.  
 11.23     (b) For the first two years that a charter school is 
 11.24  providing transportation services, the adjusted special ~~programs~~ 
 11.25  ~~transportation~~ education base revenue ~~equals~~ according to 
 11.26  section 124.3202, subdivision 3, shall be increased by the 
 11.27  amount of the charter school's actual cost in the current school 
 11.28  year for transportation services for children with disabilities 
 11.29  under section ~~124.223, subdivisions 4, 5, 7, and 8.  For the~~ 
 11.30  ~~third year of transportation services and later fiscal years,~~ 
 11.31  ~~the special programs transportation revenue shall be computed~~ 
 11.32  ~~according to section~~ 124.225, subdivision ~~14~~ 1, paragraph (b), 
 11.33  clause (4).  
 11.34     Sec. 10.  Minnesota Statutes 1996, section 124.248, 
 11.35  subdivision 3, is amended to read: 
 11.36     Subd. 3.  [SPECIAL EDUCATION ~~AND LIMITED ENGLISH~~ 
 12.1   ~~PROFICIENCY~~ AID.] Except as provided in subdivision 1a, 
 12.2   paragraph (b), special education aid shall be paid to a charter 
 12.3   school according to sections 124.3201 and 124.3202, as though it 
 12.4   were a school district.  The charter school may charge tuition 
 12.5   to the district of residence as provided in section 120.17, 
 12.6   subdivision 4.  ~~Limited English proficiency programs aid shall~~ 
 12.7   ~~be paid to a charter school according to section 124.273 as~~ 
 12.8   ~~though it were a school district.~~  The charter school shall 
 12.9   allocate its special education levy equalization revenue to the 
 12.10  resident districts of the pupils attending the charter school.  
 12.11  The districts of residence shall levy as though they were 
 12.12  participating in a cooperative, as provided in section 124.321, 
 12.13  subdivision 3. 
 12.14     Sec. 11.  Minnesota Statutes 1996, section 124.2727, 
 12.15  subdivision 6a, is amended to read: 
 12.16     Subd. 6a.  [FISCAL YEAR 1998 DISTRICT COOPERATION REVENUE.] 
 12.17  A district's cooperation revenue for fiscal year 1998 is equal 
 12.18  to the greater of $67 times the actual pupil units or $25,000. 
 12.19     Sec. 12.  Minnesota Statutes 1996, section 124.2727, 
 12.20  subdivision 6c, is amended to read: 
 12.21     Subd. 6c.  [FISCAL YEAR 1998 DISTRICT COOPERATION AID.] A 
 12.22  district's cooperation aid for fiscal year 1998 is the 
 12.23  difference between its district cooperation revenue and its 
 12.24  district cooperation levy.  If a district does not levy the 
 12.25  entire amount permitted, aid must be reduced in proportion to 
 12.26  the actual amount levied. 
 12.27     Sec. 13.  Minnesota Statutes 1996, section 124.2727, 
 12.28  subdivision 6d, is amended to read: 
 12.29     Subd. 6d.  [REVENUE USES.] ~~(a) A district must place its~~ 
 12.30  ~~district cooperation revenue in a reserved account and may only~~ 
 12.31  ~~use the revenue to purchase goods and services from entities~~ 
 12.32  ~~formed for cooperative purposes or to otherwise provide~~ 
 12.33  ~~educational services in a cooperative manner.~~ 
 12.34     ~~(b)~~ A district that was a member of an intermediate school 
 12.35  district organized pursuant to chapter 136D on July 1, 1994, 
 12.36  must ~~place its district cooperation revenue in a reserved~~ 
 13.1   ~~account and must allocate a portion of the reserved revenue for~~ 
 13.2   ~~instructional services from entities formed for cooperative~~ 
 13.3   ~~services for special education programs and secondary vocational~~ 
 13.4   ~~programs.  The allocated amount is equal to the levy made~~ 
 13.5   ~~according to section 124.2727, subdivision 6, for taxes payable~~ 
 13.6   ~~in 1994 divided by the actual pupil units in the intermediate~~ 
 13.7   ~~school district for fiscal year 1995 times the number of actual~~ 
 13.8   ~~pupil units in the school district in 1995.  The district must~~ 
 13.9   ~~use 5/11 of the revenue for special education and 6/11 of the~~ 
 13.10  ~~revenue for secondary vocational education.  The district must~~ 
 13.11  demonstrate that ~~the revenue is being used to provide~~ each child 
 13.12  has available the full range of special education and secondary 
 13.13  vocational programs and services available to each child served 
 13.14  by the intermediate.  The secondary vocational programs and 
 13.15  service must meet the requirements established in an 
 13.16  articulation agreement developed between the state board of 
 13.17  education and the board of trustees of the Minnesota state 
 13.18  colleges and universities. 
 13.19     ~~(c) A district that was not a member of an intermediate~~ 
 13.20  ~~district organized under chapter 136D on July 1, 1994, must~~ 
 13.21  ~~spend at least $9 per pupil unit of its district cooperation~~ 
 13.22  ~~revenue on secondary vocational programs.~~ 
 13.23     Sec. 14.  [124.3111] [ASSURANCE OF MASTERY PROGRAMS.] 
 13.24     Subdivision 1.  [ELIGIBLE DISTRICTS.] A district with a 
 13.25  local process to review curriculum and instruction may provide 
 13.26  an assurance of mastery program to eligible pupils. 
 13.27     Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 13.28  services through an assurance of mastery program if the pupil 
 13.29  has not demonstrated progress toward mastering the required 
 13.30  graduation standards, after receiving instruction that was 
 13.31  designed to enable the pupil to make progress toward mastering 
 13.32  the required graduation standards in a regular classroom 
 13.33  setting.  To determine pupil eligibility, a district must use a 
 13.34  process adopted by the school board to review curriculum and 
 13.35  instruction, for the subjects and at the grade level at which 
 13.36  the district uses the revenue. 
 14.1      Subd. 3.  [ELIGIBLE SERVICES.] (a) Assurance of mastery 
 14.2   programs may provide direct instructional services to an 
 14.3   eligible pupil, or a group of eligible pupils, under the 
 14.4   following conditions in paragraphs (b) to (d). 
 14.5      (b) Instruction may be provided at one or more grade levels 
 14.6   from kindergarten to grade 8.  If an assessment of pupils' needs 
 14.7   within a district demonstrates that the eligible pupils in 
 14.8   grades kindergarten to grade 8 are being appropriately served, a 
 14.9   district may serve eligible pupils in grades 9 to 12. 
 14.10     (c) Instruction must be provided under the supervision of 
 14.11  the eligible pupil's regular classroom teacher.  Instruction may 
 14.12  be provided by the eligible pupil's classroom teacher, by 
 14.13  another teacher, by a team of teachers, or by an education 
 14.14  assistant or aide.  A special education teacher may provide 
 14.15  instruction, but instruction that is provided under this section 
 14.16  is not eligible for aid under section 124.3201. 
 14.17     (d) The instruction that is provided must differ from the 
 14.18  initial instruction the pupil received in the regular classroom 
 14.19  setting.  The instruction may differ by presenting different 
 14.20  curriculum than was initially presented in the regular classroom 
 14.21  or by presenting the same curriculum: 
 14.22     (1) at a different rate or in a different sequence than it 
 14.23  was initially presented; 
 14.24     (2) using different teaching methods or techniques than 
 14.25  were used initially; or 
 14.26     (3) using different instructional materials than were used 
 14.27  initially. 
 14.28     Sec. 15.  Minnesota Statutes 1996, section 124.312, 
 14.29  subdivision 4, is amended to read: 
 14.30     Subd. 4.  [INTEGRATION REVENUE.] For fiscal ~~year~~ years 
 14.31  1996, 1997, and ~~later fiscal years~~ 1998, integration revenue 
 14.32  equals the sum of integration aid and integration levy under 
 14.33  section 124.912, subdivision 2. 
 14.34     Sec. 16.  Minnesota Statutes 1996, section 124.312, 
 14.35  subdivision 5, is amended to read: 
 14.36     Subd. 5.  [INTEGRATION AID.] For fiscal ~~year~~ years 1996, 
 15.1   1997, and ~~later fiscal years~~ 1998, integration aid equals the 
 15.2   following amounts: 
 15.3      (1) for independent school district No. 709, Duluth, 
 15.4   $1,385,000; 
 15.5      (2) for independent school district No. 625, St. Paul, 
 15.6   $8,090,700; and 
 15.7      (3) for special school district No. 1, Minneapolis, 
 15.8   $9,368,300. 
 15.9      Sec. 17.  Minnesota Statutes 1996, section 124.313, is 
 15.10  amended to read: 
 15.11     124.313 [TARGETED NEEDS REVENUE.] 
 15.12     For fiscal ~~year~~ years 1996, 1997, and ~~thereafter~~ 1998, a 
 15.13  school district's targeted needs revenue equals the sum of: 
 15.14     (1) assurance of mastery revenue according to section 
 15.15  124.311; plus 
 15.16     (2) the district's limited English proficiency revenue 
 15.17  computed according to section 124.273, subdivision 1d; plus 
 15.18     (3) integration revenue computed according to section 
 15.19  124.312, subdivision 4. 
 15.20     Sec. 18.  Minnesota Statutes 1996, section 124.314, 
 15.21  subdivision 1, is amended to read: 
 15.22     Subdivision 1.  [AID.] For fiscal ~~year~~ years 1996, 1997, 
 15.23  and ~~thereafter~~ 1998, a school district's targeted needs aid 
 15.24  equals the sum of its assurance of mastery aid according to 
 15.25  section 124.311, its limited English proficiency aid according 
 15.26  to section 124.273, subdivision 1e, and its integration aid 
 15.27  according to section 124.312, subdivision 5. 
 15.28     Sec. 19.  Minnesota Statutes 1996, section 124.314, 
 15.29  subdivision 2, is amended to read: 
 15.30     Subd. 2.  [LEVY.] For fiscal ~~year~~ years 1996, 1997, and 
 15.31  ~~thereafter~~ 1998, a school district's targeted needs levy equals 
 15.32  the sum of its integration levy under section 124.912, 
 15.33  subdivision 2, and that portion of its special education levy 
 15.34  attributed to the limited English proficiency program. 
 15.35     Sec. 20.  [124.315] [INTEGRATION REVENUE.] 
 15.36     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
 16.1   under this section must be used for programs established under a 
 16.2   desegregation plan mandated by the state board or under court 
 16.3   order, to increase learning opportunities and reduce the 
 16.4   learning gap between learners living in high concentrations of 
 16.5   poverty and their peers. 
 16.6      Subd. 2.  [SEPARATE ACCOUNT.] Integration revenue shall be 
 16.7   maintained in a separate account to identify expenditures for 
 16.8   salaries and programs related to this revenue. 
 16.9      Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
 16.10  later fiscal years, integration revenue equals the following 
 16.11  amounts: 
 16.12     (1) for independent school district No. 709, Duluth, $191 
 16.13  times the actual pupil units for the school year; 
 16.14     (2) for independent school district No. 625, St. Paul, $429 
 16.15  times the actual pupil units for the school year; 
 16.16     (3) for special school district No. 1, Minneapolis, $530 
 16.17  times the actual pupil units for the school year; and 
 16.18     (4) for a district not listed in clause (1), (2), or (3) 
 16.19  that is required to implement a plan according to the 
 16.20  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
 16.21  the lesser of the actual cost of implementing the plan during 
 16.22  the fiscal year or $.... times the actual pupil units for the 
 16.23  school year. 
 16.24     Subd. 4.  [INTEGRATION LEVY.] A district may levy an amount 
 16.25  equal to 47 percent of the district's integration revenue as 
 16.26  defined in subdivision 3. 
 16.27     Subd. 5.  [INTEGRATION AID.] A district's integration aid 
 16.28  equals 53 percent of the district's integration revenue as 
 16.29  defined in subdivision 3. 
 16.30     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 16.31  integration aid under subdivision 5 must be adjusted for each 
 16.32  pupil attending a nonresident district under sections 120.062, 
 16.33  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 16.34  The adjustments must be made according to this subdivision.  
 16.35     (b) Aid paid to the district of the pupil's residence must 
 16.36  be reduced by an amount equal to the revenue per actual pupil 
 17.1   unit of the resident district times the number of actual pupil 
 17.2   units attributable to the pupil for the time the pupil is 
 17.3   enrolled in a nonresident district. 
 17.4      (c) Aid paid to a district serving nonresidents must be 
 17.5   increased by an amount equal to the aid reduction to the 
 17.6   resident district under paragraphs (b) and (d).  
 17.7      (d) If the amount of the reduction to be made from the aid 
 17.8   of a district is greater than the amount of aid otherwise due 
 17.9   the district, the excess reduction must be made from other state 
 17.10  aids due the district. 
 17.11     Sec. 21.  Minnesota Statutes 1996, section 124.3201, 
 17.12  subdivision 1, is amended to read: 
 17.13     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 17.14  section and sections 124.3202 and 124.321, the definitions in 
 17.15  this subdivision apply. 
 17.16     (a) "Base year" for fiscal year ~~1996 and fiscal year 1997~~ 
 17.17  ~~means the 1994 summer program and the 1994-1995 school year.~~  
 17.18  ~~Base year for~~ 1998 and later fiscal years means the second 
 17.19  fiscal year preceding the fiscal year for which aid will be paid.
 17.20     (b) "Basic revenue" has the meaning given it in section 
 17.21  124A.22, subdivision 2.  For the purposes of computing basic 
 17.22  revenue pursuant to this section, each child with a disability 
 17.23  shall be counted as prescribed in section 124.17, subdivision 1. 
 17.24     (c) "Essential personnel" means teachers, related services, 
 17.25  and support services staff providing direct services to students.
 17.26     (d) "Average daily membership" has the meaning given it in 
 17.27  section 124.17. 
 17.28     (e) "Program growth factor" means 1.00 for fiscal year ~~1998~~ 
 17.29  2000 and later. 
 17.30     (f) "Aid percentage factor" means 60 percent for fiscal 
 17.31  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 17.32  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 17.33  percent for fiscal years 2000 and later. 
 17.34     (g) "Levy percentage factor" means 100 minus the aid 
 17.35  percentage factor for that year. 
 17.36     Sec. 22.  Minnesota Statutes 1996, section 124.3201, 
 18.1   subdivision 2, is amended to read: 
 18.2      Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
 18.3   education base revenue equals the sum of the following amounts 
 18.4   computed using base year data: 
 18.5      (1) 68 percent of the salary of each essential person 
 18.6   employed in the district's program for children with a 
 18.7   disability during the regular school year, whether the person is 
 18.8   employed by one or more districts; 
 18.9      (2) for the Minnesota state academy for the deaf or the 
 18.10  Minnesota state academy for the blind, 68 percent of the salary 
 18.11  of each instructional aide assigned to a child attending the 
 18.12  academy, if that aide is required by the child's individual 
 18.13  education plan; 
 18.14     (3) for special instruction and services provided to any 
 18.15  pupil by contracting with public, private, or voluntary agencies 
 18.16  other than school districts, in place of special instruction and 
 18.17  services provided by the district, 52 percent of the difference 
 18.18  between the amount of the contract and the basic revenue of the 
 18.19  district for that pupil for the fraction of the school day the 
 18.20  pupil receives services under the contract; 
 18.21     (4) for special instruction and services provided to any 
 18.22  pupil by contracting for services with public, private, or 
 18.23  voluntary agencies other than school districts, that are 
 18.24  supplementary to a full educational program provided by the 
 18.25  school district, 52 percent of the amount of the contract for 
 18.26  that pupil; 
 18.27     (5) for supplies and equipment purchased or rented for use 
 18.28  in the instruction of children with a disability an amount equal 
 18.29  to 47 percent of the sum actually expended by the district but 
 18.30  not to exceed an average of $47 in any one school year for each 
 18.31  child with a disability receiving instruction; ~~and~~ 
 18.32     (6) for fiscal years 1997 and later, special education base 
 18.33  revenue shall include amounts under clauses (1) to (5) for 
 18.34  special education summer programs provided during the base year 
 18.35  for that fiscal year; and 
 18.36     (7) for fiscal years 1999 and later, the cost of providing 
 19.1   transportation services for children with disabilities under 
 19.2   section 124.225, subdivision 1, paragraph (b), clause (4). 
 19.3      Sec. 23.  Minnesota Statutes 1996, section 124.3201, 
 19.4   subdivision 4, is amended to read: 
 19.5      Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
 19.6   state total special education revenue for fiscal year ~~1996~~ 1998 
 19.7   equals ~~$327,846,000~~ $358,542,000.  The state total special 
 19.8   education revenue for fiscal year ~~1997~~ 1999 equals 
 19.9   ~~$347,810,000~~ $435,322,000.  The state total special education 
 19.10  revenue for later fiscal years equals:  
 19.11     (1) the state total special education revenue for the 
 19.12  preceding fiscal year; times 
 19.13     (2) the program growth factor; times 
 19.14     (3) the ratio of the state total average daily membership 
 19.15  for the current fiscal year to the state total average daily 
 19.16  membership for the preceding fiscal year. 
 19.17     Sec. 24.  Minnesota Statutes 1996, section 124.323, 
 19.18  subdivision 1, is amended to read: 
 19.19     Subdivision 1.  [DEFINITIONS.] In this section, the 
 19.20  definitions in this subdivision apply. 
 19.21     (a) "Unreimbursed special education cost" means the sum of 
 19.22  the following: 
 19.23     (1) expenditures for teachers' salaries, contracted 
 19.24  services, supplies, ~~and~~ equipment, and transportation services 
 19.25  eligible for revenue under sections 124.3201 and 124.3202; plus 
 19.26     (2) expenditures for tuition bills received under section 
 19.27  120.17 for services eligible for revenue under sections 
 19.28  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 19.29     (3) revenue for teachers' salaries, contracted services, 
 19.30  supplies, and equipment under sections 124.3201 and 124.3202; 
 19.31  minus 
 19.32     (4) tuition receipts under section 120.17 for services 
 19.33  eligible for revenue under sections 124.3201, subdivision 2, and 
 19.34  124.3202, subdivision 1. 
 19.35     (b) "General revenue," for fiscal year 1996, means the sum 
 19.36  of the general education revenue according to section 124A.22, 
 20.1   subdivision 1, as adjusted according to section 124A.036, 
 20.2   subdivision 5, plus the total referendum revenue according to 
 20.3   section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 20.4   later, "general revenue" means the sum of the general education 
 20.5   revenue according to section 124A.22, subdivision 1, as adjusted 
 20.6   according to section 124A.036, subdivision 5, plus the total 
 20.7   referendum revenue minus transportation sparsity revenue minus 
 20.8   total operating capital revenue. 
 20.9      Sec. 25.  Minnesota Statutes 1996, section 124A.22, 
 20.10  subdivision 1, is amended to read: 
 20.11     Subdivision 1.  [GENERAL EDUCATION REVENUE.] ~~(a) For fiscal~~ 
 20.12  ~~year 1996, the general education revenue for each district~~ 
 20.13  ~~equals the sum of the district's basic revenue, compensatory~~ 
 20.14  ~~education revenue, training and experience revenue, secondary~~ 
 20.15  ~~sparsity revenue, elementary sparsity revenue, and supplemental~~ 
 20.16  ~~revenue.~~ 
 20.17     ~~(b)~~ (a) For fiscal ~~year~~ years 1997 and ~~thereafter~~ 1998, 
 20.18  the general education revenue for each district equals the sum 
 20.19  of the district's basic revenue, compensatory education revenue, 
 20.20  secondary sparsity revenue, elementary sparsity revenue, 
 20.21  transportation sparsity, total operating capital revenue, 
 20.22  transition revenue, and supplemental revenue. 
 20.23     (b) For fiscal year 1999 and thereafter, the general 
 20.24  education revenue for each district equals the sum of the 
 20.25  district's basic revenue, basic skills revenue, training and 
 20.26  experience revenue, secondary sparsity revenue, elementary 
 20.27  sparsity revenue, transportation sparsity, total operating 
 20.28  capital revenue, transition revenue, and supplemental revenue. 
 20.29     Sec. 26.  Minnesota Statutes 1996, section 124A.22, 
 20.30  subdivision 2, is amended to read: 
 20.31     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 20.32  district equals the formula allowance times the actual pupil 
 20.33  units for the school year.  ~~The formula allowance for fiscal~~ 
 20.34  ~~year 1995 is $3,150.  The formula allowance for fiscal year 1996~~ 
 20.35  ~~is $3,205.~~  The formula allowance for fiscal year 1997 is $3,505 
 20.36  ~~and~~.  The formula allowance for fiscal year 1998 ~~and subsequent~~ 
 21.1   ~~fiscal years the formula allowance~~ is $3,430.  The formula 
 21.2   allowance for fiscal year 1999 and subsequent fiscal years is 
 21.3   $3,367. 
 21.4      Sec. 27.  Minnesota Statutes 1996, section 124A.22, 
 21.5   subdivision 3, is amended to read: 
 21.6      Subd. 3.  [FISCAL YEAR 1998 COMPENSATORY EDUCATION 
 21.7   REVENUE.] The compensatory education revenue for each 
 21.8   district for fiscal year 1998 equals the formula allowance less 
 21.9   $300 times the AFDC pupil units computed according to section 
 21.10  124.17, subdivision 1d. 
 21.11     Sec. 28.  Minnesota Statutes 1996, section 124A.22, is 
 21.12  amended by adding a subdivision to read: 
 21.13     Subd. 3a.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
 21.14  thereafter, a school district's basic skills revenue equals the 
 21.15  sum of: 
 21.16     (1) the formula allowance less $237 times the AFDC pupil 
 21.17  units computed according to section 124.17, subdivision 1g; plus 
 21.18     (2) the limited English proficiency revenue according to 
 21.19  section 124.273, subdivision 1g; plus 
 21.20     (3) the lesser of:  (i) $22.50 times the number of fund 
 21.21  balance pupil units in kindergarten to grade 8; or (ii) the 
 21.22  amount of district money provided to match basic skills revenue 
 21.23  for the purposes described in section 124A.28. 
 21.24     Sec. 29.  Minnesota Statutes 1996, section 124A.22, 
 21.25  subdivision 13a, is amended to read: 
 21.26     Subd. 13a.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] 
 21.27  (a) A district's transportation sparsity allowance equals the 
 21.28  greater of zero or the result of the following computation: 
 21.29     (i) Multiply the formula allowance according to section 
 21.30  124A.22, subdivision 2, by ~~.1469~~ .1496. 
 21.31     (ii) Multiply the result in clause (i) by the district's 
 21.32  sparsity index raised to the 26/100 power. 
 21.33     (iii) Multiply the result in clause (ii) by the district's 
 21.34  density index raised to the 13/100 power. 
 21.35     (iv) Multiply the formula allowance according to section 
 21.36  124A.22, subdivision 2, by ~~.0485~~ .0494. 
 22.1      (v) Subtract the result in clause (iv) from the result in 
 22.2   clause (iii). 
 22.3      (b) Transportation sparsity revenue is equal to the 
 22.4   transportation sparsity allowance times the actual pupil units. 
 22.5      Sec. 30.  Minnesota Statutes 1996, section 124A.22, 
 22.6   subdivision 13b, is amended to read: 
 22.7      Subd. 13b.  [TRANSITION ALLOWANCE.] (a) ~~A district's~~ 
 22.8   ~~transportation transition allowance for fiscal year 1997 equals~~ 
 22.9   ~~the result of the following computation:~~ 
 22.10     ~~(1) if the result in subdivision 13a, paragraph (a), clause~~ 
 22.11  ~~(iii), for fiscal year 1997 is less than the fiscal year 1996~~ 
 22.12  ~~base allowance, the transportation transition allowance equals~~ 
 22.13  ~~the fiscal year 1996 base allowance minus the result in~~ 
 22.14  ~~subdivision 13a, paragraph (a), clause (iii).~~ 
 22.15     ~~(2) if the result in subdivision 13a, paragraph (b), for~~ 
 22.16  ~~fiscal year 1997 is greater than the fiscal year 1996 base~~ 
 22.17  ~~allowance and less than 110 percent of the fiscal year 1996 base~~ 
 22.18  ~~allowance, the transportation transition allowance equals zero.~~ 
 22.19     ~~(3) if the result in subdivision 13a, paragraph (b), for~~ 
 22.20  ~~fiscal year 1997 is greater than 110 percent of the fiscal year~~ 
 22.21  ~~1996 base allowance, the transportation transition allowance~~ 
 22.22  ~~equals 110 percent of the fiscal year 1996 base allowance minus~~ 
 22.23  ~~the result in subdivision 13a, paragraph (a), clause (iii).~~ 
 22.24     ~~(b)~~ A district's transportation transition allowance for 
 22.25  fiscal year 1998 and thereafter equals the result of the 
 22.26  following: 
 22.27     (1) if the result in subdivision 13a, paragraph (a), clause 
 22.28  (iii), ~~for fiscal year 1998~~ is less than the fiscal year 1996 
 22.29  base allowance, the transportation transition allowance equals 
 22.30  the fiscal year 1996 base allowance minus the result in 
 22.31  subdivision 13a, paragraph (a), clause (iii); or 
 22.32     (2) if the result in subdivision 13a, paragraph (a), clause 
 22.33  (iii), ~~for fiscal year 1998~~ is greater than or equal to the 
 22.34  fiscal year 1996 base allowance, the transportation transition 
 22.35  allowance equals zero. 
 22.36     ~~(c)~~ (b) For fiscal years 1997 and 1998, a district's 
 23.1   training and experience transition allowance is equal to the 
 23.2   training and experience revenue the district would have received 
 23.3   for fiscal year 1997 under Minnesota Statutes 1994, section 
 23.4   124A.22, subdivision 4, divided by the actual pupil units for 
 23.5   fiscal year 1997 minus $130.  For fiscal year 1999 and later, a 
 23.6   district's training and experience transition allowance equals 
 23.7   zero.  
 23.8      If the training and experience transition allowance is less 
 23.9   than zero, the reduction shall be determined according to the 
 23.10  following schedule: 
 23.11     (i) for fiscal year 1997, the reduction is equal to .9 
 23.12  times the amount initially determined; and 
 23.13     (ii) for fiscal year 1998, the reduction is equal to .75 
 23.14  times the amount initially determined~~;~~ 
 23.15     ~~(iii) for fiscal year 1999, the reduction is equal to .50~~ 
 23.16  ~~times the amount initially determined;~~ 
 23.17     ~~(iv) for fiscal year 2000, the reduction is equal to .25~~ 
 23.18  ~~times the amount initially determined; and~~ 
 23.19     ~~(v) for fiscal year 2001 and thereafter, the transition~~ 
 23.20  ~~allowance shall not be less than zero~~.  
 23.21     (c) A district's district cooperation transition allowance 
 23.22  for fiscal year 1999 and thereafter is equal to the district 
 23.23  cooperation revenue the district would have received for fiscal 
 23.24  year 1999 under Minnesota Statutes 1996, section 124.2727, 
 23.25  divided by the actual pupil units for fiscal year 1999, minus 
 23.26  $67. 
 23.27     (d) A district's transition allowance for fiscal ~~year~~ years 
 23.28  1997 and ~~thereafter~~ 1998 is equal to the sum of its 
 23.29  transportation transition allowance and its training and 
 23.30  experience transition allowance.  A district's transition 
 23.31  allowance for fiscal year 1999 and thereafter is equal to the 
 23.32  sum of its transportation transition allowance and its district 
 23.33  cooperation transition allowance. 
 23.34     Sec. 31.  Minnesota Statutes 1996, section 124A.23, 
 23.35  subdivision 1, is amended to read: 
 23.36     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 24.1   commissioner shall establish the general education tax rate by 
 24.2   July 1 of each year for levies payable in the following year.  
 24.3   The general education tax capacity rate shall be a rate, rounded 
 24.4   up to the nearest tenth of a percent, that, when applied to the 
 24.5   adjusted net tax capacity for all districts, raises the amount 
 24.6   specified in this subdivision.  The general education tax rate 
 24.7   shall be the rate that raises ~~$1,054,000,000 for fiscal year~~ 
 24.8   ~~1996 and~~ $1,359,000,000 for fiscal year ~~1997~~ 1998 and 
 24.9   $1,417,000,000 for fiscal year 1999 and later fiscal years.  The 
 24.10  general education tax rate may not be changed due to changes or 
 24.11  corrections made to a district's adjusted net tax capacity after 
 24.12  the tax rate has been established.  
 24.13     Sec. 32.  Minnesota Statutes 1996, section 124A.28, is 
 24.14  amended to read: 
 24.15     124A.28 [~~COMPENSATORY EDUCATION~~ BASIC SKILLS REVENUE.] 
 24.16     Subdivision 1.  [USE OF THE REVENUE.] The ~~compensatory~~ 
 24.17  ~~education~~ basic skills revenue under section 124A.22, 
 24.18  subdivision ~~3~~ 3a, must be used to meet the educational needs of 
 24.19  pupils whose ~~educational achievement~~ progress toward meeting 
 24.20  state or local content or performance standards is below the 
 24.21  level that is appropriate for ~~pupils~~ learners of their age.  
 24.22  ~~These needs may be met by providing the~~ Any of the following may 
 24.23  be provided to meet these learners' needs: 
 24.24     (1) direct instructional services under the assurance of 
 24.25  mastery program according to section 124.311; 
 24.26     (2) remedial instruction in reading, language arts, ~~and~~ 
 24.27  mathematics, other content areas, or study skills to improve the 
 24.28  achievement level of these ~~pupils~~ learners; 
 24.29     (3) additional teachers and teacher aides to provide more 
 24.30  individualized instruction to these ~~pupils~~ learners through 
 24.31  individual tutoring, lower instructor-to-learner ratios, or team 
 24.32  teaching; 
 24.33     (4) summer programs that enable these pupils to improve 
 24.34  their achievement or that reemphasize material taught during the 
 24.35  regular school year; 
 24.36     (5) ~~in-service education~~ comprehensive and ongoing staff 
 25.1   development consistent with district and site plans according to 
 25.2   section 126.70, for teachers, teacher aides, principals, and 
 25.3   other personnel to improve their ability to ~~recognize~~ identify 
 25.4   the needs of these ~~pupils~~ learners and provide 
 25.5   appropriate ~~responses to the pupils' needs~~ remediation, 
 25.6   intervention, accommodations, or modifications; 
 25.7      (6) ~~for~~ instructional ~~material for these pupils including:~~  
 25.8   ~~textbooks, workbooks, periodicals, pamphlets, photographs,~~ 
 25.9   ~~reproductions, filmstrips, prepared slides, prerecorded video~~ 
 25.10  ~~programs, sound recordings, desk charts, games, study prints and~~ 
 25.11  ~~pictures, desk maps, models, learning kits, blocks and cubes,~~ 
 25.12  ~~flashcards, instructional computer software programs, pencils,~~ 
 25.13  ~~pens, crayons, notebooks, duplicating fluids, and~~ 
 25.14  ~~papers~~ materials and technology appropriate for meeting the 
 25.15  individual needs of these learners; 
 25.16     (7) programs to reduce truancy, encourage completion of 
 25.17  high school, enhance self-concept, provide health services, 
 25.18  provide nutrition services, provide a safe and secure learning 
 25.19  environment, provide coordination for pupils receiving services 
 25.20  from other governmental agencies, provide psychological services 
 25.21  to determine the level of social, emotional, cognitive, and 
 25.22  intellectual development, and provide counseling services, 
 25.23  guidance services, and social work services; 
 25.24     (8) bilingual programs, bicultural programs, and programs 
 25.25  for ~~pupils~~ learners of limited English proficiency; 
 25.26     (9) all day kindergarten; 
 25.27     (10) extended school day and extended school year programs; 
 25.28  ~~and~~ 
 25.29     (11) substantial parent involvement in developing and 
 25.30  implementing remedial education or intervention plans for a 
 25.31  learner, including learning contracts between the school, the 
 25.32  learner, and the parent that establish achievement goals and 
 25.33  responsibilities of the learner and the learner's parent or 
 25.34  guardian; and 
 25.35     (12) other methods to increase achievement, as needed.  
 25.36     Subd. 1a.  [BUILDING ALLOCATION.] A district must consider 
 26.1   the concentration of children from low-income families, children 
 26.2   with limited English proficiency, and children whose progress 
 26.3   toward meeting state or local content or performance standards 
 26.4   is below the level that is appropriate for learners of their age 
 26.5   in each school building in the district when allocating 
 26.6   ~~compensatory~~ basic skills revenue. 
 26.7      Subd. 2.  [SEPARATE ACCOUNTS.] Each district that 
 26.8   receives ~~compensatory education~~ basic skills revenue shall 
 26.9   maintain separate accounts to identify expenditures for salaries 
 26.10  and programs related to this revenue. 
 26.11     Subd. 3.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 26.12  that receives ~~compensatory education~~ basic skills revenue shall 
 26.13  submit a report identifying the expenditures it incurred ~~in~~ 
 26.14  ~~providing compensatory education to the pupils described in~~ to 
 26.15  meet the needs of eligible learners under subdivision 1.  The 
 26.16  report must conform to uniform financial and reporting standards 
 26.17  established for this purpose. 
 26.18     Sec. 33.  [BUS PURCHASE LEVY.] 
 26.19     For 1997 taxes payable in 1998, a school district may levy 
 26.20  the amount necessary to eliminate the deficit in the reserved 
 26.21  fund balance account for bus purchases in its transportation 
 26.22  fund as of June 30, 1996. 
 26.23     Sec. 34.  [REPEALER.] 
 26.24     Subdivision 1.  [JULY 1, 1997.] Minnesota Statutes 1996, 
 26.25  sections 124.223; 124.225, subdivisions 3a, 7a, 7b, 7d, 7e, 8a, 
 26.26  and 8k; 124A.02, subdivision 24; and 124A.22, subdivisions 4, 
 26.27  4a, and 4b, are repealed effective July 1, 1997. 
 26.28     Subd. 2.  [REVENUE FOR FISCAL YEAR 1999.] Minnesota 
 26.29  Statutes 1996, sections 124.2727, subdivisions 6a, 6b, 6c, and 
 26.30  9; 124.311; 124.312; 124.313; and 124.314, are repealed 
 26.31  effective for revenue for fiscal year 1999. 
 26.32     Subd. 3.  [TAXES PAYABLE IN 1998.] Minnesota Statutes 1996, 
 26.33  section 124.912, subdivisions 2 and 3, are repealed effective 
 26.34  for taxes payable in 1998. 
 26.35     Sec. 35.  [EFFECTIVE DATE.] 
 26.36     Sections 9, 10, 24, and 32 are effective July 1, 1998.