1.1                          A bill for an act 
  1.2             relating to family and early childhood education 
  1.3             finance; modifying distribution of Head Start funds; 
  1.4             amending Minnesota Statutes 2000, section 119A.52.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 119A.52, is 
  1.7   amended to read: 
  1.8      119A.52 [DISTRIBUTION OF APPROPRIATION.] 
  1.9      (a) The commissioner of children, families, and learning 
  1.10  must distribute money appropriated for that purpose this section 
  1.11  to Head Start program grantees to expand services and to serve 
  1.12  additional low-income children.  Money must be allocated to each 
  1.13  project eligible Head Start grantee in existence on the 
  1.14  effective date of Laws 1989, chapter 282.  Migrant grantees, 
  1.15  including migrant and Indian reservation grantees must be 
  1.16  initially allocated money based on the grantees' share of 
  1.17  federal funds.  The remaining money must be initially allocated 
  1.18  to the remaining local agencies based equally on the agencies' 
  1.19  share of federal funds and on the proportion of eligible 
  1.20  children in the agencies' service area who are not currently 
  1.21  being served.  A Head Start grantee must be funded at a per 
  1.22  child rate equal to its contracted, federally funded base level 
  1.23  for program accounts 20, 22, and 25 at the start of the fiscal 
  1.24  year.  In allocating funds under this paragraph, the 
  1.25  commissioner of children, families, and learning must assure 
  2.1   that each Head Start grantee is allocated no less funding in any 
  2.2   fiscal year than was allocated to that grantee in fiscal year 
  2.3   1993.  The commissioner must allocate funds appropriated for the 
  2.4   purposes of this section to eligible grantees based on unmet 
  2.5   need measured by the number of children in poverty ages birth to 
  2.6   five as reported in the most recent decennial census or 
  2.7   intercensal estimate.  The commissioner may provide additional 
  2.8   funding to grantees for start-up costs incurred by grantees due 
  2.9   to the increased number of children to be served.  Before paying 
  2.10  money to the grantees, the commissioner must notify each grantee 
  2.11  of its initial allocation, how the money must be used, and the 
  2.12  number of low-income children that must be served with the 
  2.13  allocation.  Each grantee must notify the commissioner of the 
  2.14  number of low-income children it will be able to serve.  For any 
  2.15  grantee that cannot utilize its full allocation, the 
  2.16  commissioner must reduce the allocation proportionately.  Money 
  2.17  available after the initial allocations are reduced must be 
  2.18  redistributed to eligible grantees. 
  2.19     (b) Up to 11 percent of the funds appropriated annually may 
  2.20  be used to provide grants to local Head Start agencies to 
  2.21  provide funds for innovative programs designed either to target 
  2.22  Head Start resources to particular at-risk groups of children or 
  2.23  to provide services in addition to those currently allowable 
  2.24  under federal Head Start regulations.  The commissioner must 
  2.25  award funds for innovative programs under this paragraph on a 
  2.26  competitive basis.