1.1                          A bill for an act 
  1.2             relating to education finance; increasing funding for 
  1.3             contract alternative schools; amending Minnesota 
  1.4             Statutes 2000, section 124D.69, subdivision 1.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 124D.69, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [AID.] (a) If a pupil enrolls in an 
  1.9   alternative program, eligible under section 124D.68, subdivision 
  1.10  3, paragraph (d), or subdivision 4, operated by a private 
  1.11  organization that has contracted with a school district to 
  1.12  provide educational services for eligible pupils under section 
  1.13  124D.68, subdivision 2, the district contracting with the 
  1.14  private organization must reimburse the provider an amount equal 
  1.15  to at least 90 percent of the amount of the district's average 
  1.16  general education less basic skills alternative contract revenue 
  1.17  computed under paragraph (b) per pupil unit times the number of 
  1.18  pupil units for pupils attending the program.  Basic skills 
  1.19  revenue shall be paid according to section 126C.10, subdivision 
  1.20  4.  Compensatory revenue must be allocated according to section 
  1.21  126C.15, subdivision 2.  For a pupil attending the program part 
  1.22  time, the revenue paid to the program must be reduced 
  1.23  proportionately, according to the amount of time the pupil 
  1.24  attends the program, and revenue paid to the district shall be 
  1.25  reduced accordingly.  Pupils for whom a district provides 
  2.1   reimbursement may not be counted by the district for any purpose 
  2.2   other than computation of general education alternative contract 
  2.3   revenue.  If payment is made to a district or program for a 
  2.4   pupil under this section, the department must not make a payment 
  2.5   for the same pupil under section 124D.68, subdivision 9. 
  2.6      (b) "Alternative contract revenue" means the sum of:  (1) 
  2.7   95 percent of the state average general education revenue under 
  2.8   section 126C.10, less the basic skills revenue, plus the 
  2.9   referendum equalization aid allowance for the district where the 
  2.10  alternative program is located, plus the basic skills revenue 
  2.11  calculated under section 126C.10, subdivision 4, for each site; 
  2.12  and (2) building lease aid equal to the lesser of 90 percent of 
  2.13  the lease costs or $1,500 per pupil unit served.  
  2.14     (c) Compensation revenue must be allocated according to 
  2.15  section 126C.15, subdivision 2. 
  2.16     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.17  fiscal years 2002 and later.