1.1                          A bill for an act 
  1.2             relating to education; providing for full state 
  1.3             funding for special education services; offsetting 
  1.4             certain property tax aids; amending Minnesota Statutes 
  1.5             1994, sections 124.273, subdivision 1b; 124.32, 
  1.6             subdivisions 1b and 1d; 124.322, subdivisions 1a and 
  1.7             2; 124.323, subdivision 1; and 124.574, subdivision 
  1.8             2b; repealing Minnesota Statutes 1994, section 124.321.
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 124.273, 
  1.11  subdivision 1b, is amended to read: 
  1.12     Subd. 1b.  [TEACHERS SALARIES.] Each year the state shall 
  1.13  pay a school district a portion 68 percent of the salary of one 
  1.14  full-time equivalent teacher for each 40 pupils of limited 
  1.15  English proficiency enrolled in the district.  Notwithstanding 
  1.16  the foregoing, the state shall pay a portion 68 percent of the 
  1.17  salary of one-half of a full-time equivalent teacher to a 
  1.18  district with 20 or fewer pupils of limited English proficiency 
  1.19  enrolled.  The portion for a full-time teacher shall be the 
  1.20  lesser of 55.2 percent of the salary or $15,320.  The portion 
  1.21  for a part-time or limited-time teacher shall be the lesser of 
  1.22  55.2 percent of the salary or the product of $15,320 times the 
  1.23  ratio of the person's actual employment to full-time 
  1.24  employment.  For the purposes of this subdivision, a teacher 
  1.25  includes nonlicensed personnel who provide direct instruction to 
  1.26  students of limited English proficiency under the supervision of 
  1.27  a licensed teacher. 
  2.1      Sec. 2.  Minnesota Statutes 1994, section 124.32, 
  2.2   subdivision 1b, is amended to read: 
  2.3      Subd. 1b.  [TEACHERS SALARIES.] (a) Each year the state 
  2.4   shall pay to a district a portion 68 percent of the salary of 
  2.5   each essential person employed in the district's program for 
  2.6   children with a disability during the regular school year, 
  2.7   whether the person is employed by one or more districts.  The 
  2.8   state shall also pay to the Minnesota state academy for the deaf 
  2.9   or the Minnesota state academy for the blind a part of the 
  2.10  salary of each instructional aide assigned to a child attending 
  2.11  the academy, if that aide is required by the child's individual 
  2.12  education plan.  
  2.13     (b) For the 1992-1993 school year and thereafter, the 
  2.14  portion for a full-time person is an amount not to exceed the 
  2.15  lesser of 55.2 percent of the salary or $15,320.  The portion 
  2.16  for a part-time or limited-time person is an amount not to 
  2.17  exceed the lesser of 55.2 percent of the salary or the product 
  2.18  of $15,320 times the ratio of the person's actual employment to 
  2.19  full-time employment. 
  2.20     Sec. 3.  Minnesota Statutes 1994, section 124.32, 
  2.21  subdivision 1d, is amended to read: 
  2.22     Subd. 1d.  [CONTRACT SERVICES.] For special instruction and 
  2.23  services provided to any pupil by contracting with public, 
  2.24  private, or voluntary agencies other than school districts, in 
  2.25  place of special instruction and services provided by the 
  2.26  district, the state shall pay each district 52 68 percent of the 
  2.27  difference between the amount of the contract and the basic 
  2.28  revenue of the district for that pupil for the fraction of the 
  2.29  school day the pupil receives services under the contract.  For 
  2.30  special instruction and services provided to any pupil by 
  2.31  contracting for services with public, private, or voluntary 
  2.32  agencies other than school districts, that are supplementary to 
  2.33  a full educational program provided by the school district, the 
  2.34  state shall pay each district 52 68 percent of the amount of the 
  2.35  contract for that pupil. 
  2.36     Sec. 4.  Minnesota Statutes 1994, section 124.322, 
  3.1   subdivision 1a, is amended to read: 
  3.2      Subd. 1a.  [DEFINITIONS.] In this section, the definitions 
  3.3   in this subdivision apply. 
  3.4      (a) "Base revenue" means the following: 
  3.5      (1) for the first fiscal year after approval of the 
  3.6   district's application, base revenue means the sum of the 
  3.7   district's revenue for the preceding fiscal year for its special 
  3.8   education program under sections section 124.32, subdivisions 
  3.9   1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; 
  3.10     (2) for the second fiscal year after approval of a 
  3.11  district's application, base revenue means the sum of the 
  3.12  district's revenue for the second prior fiscal year for its 
  3.13  special education program under sections section 124.32, 
  3.14  subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; 
  3.15  and 
  3.16     (3) for the third fiscal year after approval of a 
  3.17  district's application, and thereafter, base revenue means the 
  3.18  sum of the revenue a district would have been entitled to in the 
  3.19  second prior fiscal year for its special education program under 
  3.20  sections section 124.32, subdivisions 1b, 1d, 2, 5, and 10, and 
  3.21  124.321, subdivision 1, based on activities defined as 
  3.22  reimbursable under state board rules for special education and 
  3.23  nonspecial education students, and additional activities as 
  3.24  detailed and approved by the commissioner of education. 
  3.25     (b) "Base aid" means the following: 
  3.26     (1) for the first fiscal year after approval of a 
  3.27  district's application, base aid means the sum of the district's 
  3.28  gross aid for the preceding fiscal year for its special 
  3.29  education program under section 124.32, subdivisions 1b, 1d, 2, 
  3.30  5, and 10; 
  3.31     (2) for the second fiscal year after approval of a 
  3.32  district's application, base aid means the sum of the district's 
  3.33  gross aid for the second prior fiscal year for its special 
  3.34  education program under section 124.32, subdivisions 1b, 1d, 2, 
  3.35  5, and 10; and 
  3.36     (3) for the third fiscal year after approval of a 
  4.1   district's application and thereafter, base aid means the sum of 
  4.2   the gross aid the district would have been entitled to in the 
  4.3   second prior fiscal year for its special education program under 
  4.4   section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on 
  4.5   activities defined as reimbursable under state board of 
  4.6   education rules for special education and nonspecial education 
  4.7   students, and additional activities as detailed and approved by 
  4.8   the commissioner of education in the application plan. 
  4.9      (c) (b) Notwithstanding paragraphs paragraph (a) and (b), 
  4.10  base revenue and base aid for 1995 and later fiscal years must 
  4.11  does not include revenue and aid under section 124.32, 
  4.12  subdivision 5. 
  4.13     (d) (c) "Alternative delivery revenue inflator" means: 
  4.14     (1) for the first fiscal year after approval of a 
  4.15  district's application, the greater of 1.017 or the ratio of (i) 
  4.16  the statewide average special education revenue under sections 
  4.17  section 124.32 and 124.321 per pupil in average daily membership 
  4.18  for the current fiscal year, to (ii) the statewide average 
  4.19  special education revenue per pupil in average daily membership 
  4.20  for the previous fiscal year. 
  4.21     (2) for the second and later fiscal years, the greater of 
  4.22  1.034 or the ratio of (i) the statewide average special 
  4.23  education revenue under sections section 124.32 and 124.321 per 
  4.24  pupil in average daily membership for the current fiscal year, 
  4.25  to (ii) the statewide average special education revenue per 
  4.26  pupil in average daily membership for the second prior fiscal 
  4.27  year. 
  4.28     (e) (d) The commissioner of education shall adjust each 
  4.29  district's base revenue and base aid to reflect any changes in 
  4.30  special education services required by rule or statute.  
  4.31     Sec. 5.  Minnesota Statutes 1994, section 124.322, 
  4.32  subdivision 2, is amended to read: 
  4.33     Subd. 2.  [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] (a) For 
  4.34  the first fiscal year after approval of an application, a 
  4.35  district's alternative delivery revenue equals its base revenue 
  4.36  multiplied by the product of the alternative delivery revenue 
  5.1   inflator times the ratio of the district's average daily 
  5.2   membership for the current fiscal year to the district's average 
  5.3   daily membership for the immediately preceding fiscal year.  For 
  5.4   the second and later fiscal years a district's alternative 
  5.5   delivery revenue equals its base revenue multiplied by the 
  5.6   product of the alternative delivery revenue inflator times the 
  5.7   ratio of the district's average daily membership for the current 
  5.8   fiscal year to the district's average daily membership for the 
  5.9   second preceding fiscal year. 
  5.10     (b) The state shall pay a district's alternative delivery 
  5.11  revenue as state aid. 
  5.12     Sec. 6.  Minnesota Statutes 1994, section 124.323, 
  5.13  subdivision 1, is amended to read: 
  5.14     Subdivision 1.  [DEFINITIONS.] In this section, the 
  5.15  definitions in this subdivision apply. 
  5.16     (a) "Unreimbursed special education cost" means the sum of 
  5.17  the following: 
  5.18     (1) expenditures for teachers' salaries, contracted 
  5.19  services, supplies, and equipment eligible for revenue under 
  5.20  sections 124.32, subdivisions 1b, 1d, 2, and 10, and 124.322, 
  5.21  subdivision 2; plus 
  5.22     (2) expenditures for tuition bills received under section 
  5.23  120.17; minus 
  5.24     (3) revenue for teachers' salaries, contracted services, 
  5.25  supplies, and equipment under sections 124.32, subdivisions 1b, 
  5.26  1d, 2, and 10; 124.321, subdivision 1, clause (1); and 124.322, 
  5.27  subdivision 2; minus 
  5.28     (4) tuition receipts under section 120.17. 
  5.29     (b) "General revenue" means the sum of the general 
  5.30  education revenue according to section 124A.22, subdivision 1, 
  5.31  plus the total referendum revenue according to section 124A.03, 
  5.32  subdivision 1e. 
  5.33     Sec. 7.  Minnesota Statutes 1994, section 124.574, 
  5.34  subdivision 2b, is amended to read: 
  5.35     Subd. 2b.  [SALARIES.] (a) Each year the state shall pay to 
  5.36  any district or cooperative center a portion 68 percent of the 
  6.1   salary of each essential licensed person who provides direct 
  6.2   instructional services to students, employed during that fiscal 
  6.3   year for services rendered in that district's or center's 
  6.4   secondary vocational education programs for children with a 
  6.5   disability. 
  6.6      (b) For fiscal year 1993 and thereafter, the portion for a 
  6.7   full-time person is an amount not to exceed the lesser of 55.2 
  6.8   percent of the salary or $15,320.  The portion for a part-time 
  6.9   or limited-time person is the lesser of 55.2 percent of the 
  6.10  salary or the product of $15,320 times the ratio of the person's 
  6.11  actual employment to full-time employment. 
  6.12     Sec. 8.  [HOMESTEAD AND AGRICULTURAL CREDIT AID 
  6.13  ADJUSTMENT.] 
  6.14     Prior to the computation of homestead and agricultural aid 
  6.15  for taxes payable in 1996, the commissioner of revenue shall 
  6.16  reduce a school district's homestead and agricultural aid by an 
  6.17  amount equal to the lesser of:  (1) the amount of the district's 
  6.18  homestead and agricultural aid for calendar year 1995; or (2) an 
  6.19  amount equal to five percent times the district's adjusted net 
  6.20  tax capacity for assessment year 1994. 
  6.21     Sec. 9.  [REPEALER.] 
  6.22     Minnesota Statutes 1994, section 124.321, is repealed.  
  6.23  levy may be certified under Minnesota Statutes, section 124.321, 
  6.24  after the levy is certified in 1994, except for net adjustments 
  6.25  otherwise authorized to correct calculations made under 
  6.26  Minnesota Statutes, sections 124.32 and 124.321 for 1995-1996 
  6.27  and earlier school years. 
  6.28     Sec. 10.  [EFFECTIVE DATE.] 
  6.29     Sections 1 to 7 are effective July 1, 1995, for revenue for 
  6.30  1996-1997 and later school years.  Sections 8 and 9 are 
  6.31  effective July 1, 1995.