1.1                          A bill for an act 
  1.2             relating to education; modifying the definition of 
  1.3             pupil units; modifying learning and development 
  1.4             revenue; amending Minnesota Statutes 1994, sections 
  1.5             124.17, by adding a subdivision; and 124A.225, 
  1.6             subdivision 4; Minnesota Statutes 1995 Supplement, 
  1.7             sections 124.17, subdivision 1; and 124A.225, 
  1.8             subdivision 1.  
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.11  124.17, subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
  1.13  pupil in average daily membership shall be counted according to 
  1.14  this subdivision.  
  1.15     (a) A prekindergarten pupil with a disability who is 
  1.16  enrolled in a program approved by the commissioner and has an 
  1.17  individual education plan is counted as the ratio of the number 
  1.18  of hours of assessment and education service to 825 with a 
  1.19  minimum of 0.28, but not more than one. 
  1.20     (b) A prekindergarten pupil who is assessed but determined 
  1.21  not to be handicapped is counted as the ratio of the number of 
  1.22  hours of assessment service to 825.  
  1.23     (c) A kindergarten pupil with a disability who is enrolled 
  1.24  in a program approved by the commissioner is counted as the 
  1.25  ratio of the number of hours of assessment and education 
  1.26  services required in the fiscal year by the pupil's individual 
  1.27  education program plan to 875, but not more than one. 
  2.1      (d) A kindergarten pupil who is not included in paragraph 
  2.2   (c) is counted as .53 of a pupil unit for fiscal year 
  2.3   1995 through fiscal year 1997, .5375 for fiscal year 1998, .545 
  2.4   for fiscal year 1999, .5525 for fiscal year 2000, and .56 for 
  2.5   fiscal year 2001 and thereafter. 
  2.6      (e) A pupil who is in any of grades 1 to 6 is counted as 
  2.7   1.06 pupil units for fiscal year 1995 through fiscal year 1997, 
  2.8   1.075 for fiscal year 1998, 1.09 for fiscal year 1999, 1.105 for 
  2.9   fiscal year 2000, and 1.12 for fiscal year 2001 and thereafter. 
  2.10     (f) For fiscal year 1996 and fiscal year 1997, a pupil who 
  2.11  is in any of grades 7 to 12 is counted as 1.3 pupil units.  For 
  2.12  fiscal year 1998, a pupil who is in any of grades 7 to 12 is 
  2.13  counted as 1.25 1.3225 pupil units.  For fiscal year 1999 and 
  2.14  later years, a pupil who is in any of grades 7 to 12 is counted 
  2.15  as 1.2 1.345 pupil units.  For fiscal year 2000, a pupil who is 
  2.16  in any of grades 7 to 12 is counted as 1.3675 pupil units.  For 
  2.17  fiscal year 2001 and thereafter, a pupil who is in any of grades 
  2.18  7 to 12 is counted as 1.39 pupil units.  
  2.19     (g) For fiscal year 1996 and fiscal year 1997, a pupil who 
  2.20  is in the post-secondary enrollment options program is counted 
  2.21  as 1.3 pupil units.  For fiscal year 1998, a pupil who is in the 
  2.22  post-secondary enrollment options program is counted as 1.25 
  2.23  1.3225 pupil units.  For fiscal year 1999 and later years, a 
  2.24  pupil who is in the post-secondary enrollment options program is 
  2.25  counted as 1.2 1.345 pupil units.  For fiscal year 2000, a pupil 
  2.26  who is in the post-secondary enrollment options program is 
  2.27  counted as 1.3675 pupil units.  For fiscal year 2001 and 
  2.28  thereafter, a pupil who is in the post-secondary enrollment 
  2.29  options program is counted as 1.39 pupil units.  
  2.30     (h) In fiscal year 1998, the sum of a district's general 
  2.31  education revenue and referendum revenue may not be reduced by 
  2.32  more than two percent due to the reduction in the secondary 
  2.33  pupil weight from 1.3 as specified in paragraphs (f) and (g).  
  2.34  In fiscal year 1999 and later years, the sum of a district's 
  2.35  general education revenue and referendum revenue may not be 
  2.36  decreased by more than four percent due to the reduction in the 
  3.1   secondary weight from 1.3 as specified in paragraphs (f) and (g).
  3.2      Sec. 2.  Minnesota Statutes 1994, section 124.17, is 
  3.3   amended by adding a subdivision to read: 
  3.4      Subd. 1g.  [COMPENSATORY REVENUE PUPIL UNITS.] Pupil units 
  3.5   for fiscal year 1998 and thereafter must be computed according 
  3.6   to this subdivision.  
  3.7      (a) The concentration percentage for a district equals the 
  3.8   product of 100 times the ratio of:  
  3.9      (1) the number of pupils enrolled in the district eligible 
  3.10  for free or reduced lunch; to 
  3.11     (2) the number of pupils in average daily membership 
  3.12  according to subdivision 1e enrolled in the district. 
  3.13     (b) The pupil weighting factor for a district equals the 
  3.14  lesser of one or the quotient obtained by dividing the 
  3.15  district's concentration percentage by 50.0.  
  3.16     (c) The pupil units for a district for fiscal year 1998 and 
  3.17  thereafter equals the product of:  
  3.18     (1) the number of pupils enrolled in the district eligible 
  3.19  for free or reduced lunch; times 
  3.20     (2) the pupil weighting factor for the district; times 
  3.21     (3) .6 in fiscal year 1999, .90 in fiscal year 2000, and 
  3.22  1.0 in fiscal year 2001 and thereafter. 
  3.23     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  3.24  124A.225, subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [REVENUE.] (a) Of a district's general 
  3.26  education revenue an amount equal to the sum of the number of 
  3.27  elementary fund balance pupils in average daily membership 
  3.28  defined in section 124.17, subdivision 1h, and one-half of the 
  3.29  number of kindergarten fund balance pupils in average daily 
  3.30  membership as defined in section 124.17, subdivision 1h, times 
  3.31  .06 for fiscal year 1995 through fiscal year 1997, .075 for 
  3.32  fiscal year 1998, .09 for fiscal year 1999, and .105 for fiscal 
  3.33  year 2000 and thereafter times the formula allowance must be 
  3.34  reserved according to this section. 
  3.35     (b) Of a district's general education revenue an amount 
  3.36  equal to the number of secondary fund balance pupils in average 
  4.1   daily membership times the formula allowance times .0225 in 
  4.2   fiscal year 1998, .045 in fiscal year 1999, .0675 in fiscal year 
  4.3   2000, and .09 in fiscal year 2001 and thereafter must be 
  4.4   reserved according to this section.  
  4.5      Sec. 4.  Minnesota Statutes 1994, section 124A.225, 
  4.6   subdivision 4, is amended to read: 
  4.7      Subd. 4.  [REVENUE USE.] (a) Reserve revenue must be used 
  4.8   according to either paragraph (b), (c), or (d). 
  4.9      (b) Revenue attributable to elementary pupils shall be used 
  4.10  to reduce and maintain the district's instructor to learner 
  4.11  ratios in kindergarten through grade 6 to a level of 1 to 17 on 
  4.12  average. The district must prioritize the use of the revenue to 
  4.13  attain this level initially in kindergarten and grade 1 and then 
  4.14  through the subsequent grades as revenue is available.  Revenue 
  4.15  attributable to secondary pupils shall be used to reduce and 
  4.16  maintain the district's instructor-to-learner ratio in grades 7 
  4.17  to 12 to a level of 1 to 24 on average.  
  4.18     (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
  4.19  district with exceptional need as defined in subdivision 6, 
  4.20  paragraph (a), may use the revenue to reduce and maintain the 
  4.21  district's instructor-to-learner ratios in kindergarten through 
  4.22  grade 6 to a level that is at least 2.0 less than the district's 
  4.23  adopted staffing ratio, if the remaining learning and 
  4.24  development revenue is used to continue or initiate staffing 
  4.25  patterns that meet the needs of a diverse student population.  
  4.26  Programs to meet the needs of a diverse student population may 
  4.27  include programs for at-risk pupils and learning enrichment 
  4.28  programs. 
  4.29     (d) For fiscal year 1995 only, in any school building that 
  4.30  meets the characteristics of exceptional need as defined in 
  4.31  subdivision 6, paragraph (b), a district may use the revenue to 
  4.32  employ education assistants or aides supervised by a learner's 
  4.33  regular instructor to assist learners in those school buildings. 
  4.34     (e) The revenue may be used to prepare and use an 
  4.35  individualized learning plan for each learner.  A district must 
  4.36  not increase the district wide instructor-learner ratios in 
  5.1   other grades as a result of reducing instructor-learner ratios 
  5.2   in kindergarten through grade 6.  Revenue may not be used to 
  5.3   provide instructor preparation time or to provide the district's 
  5.4   share of revenue required under section 124.311.  A school 
  5.5   district may use a portion of the revenue reserved under this 
  5.6   section to employ up to the same number of full-time equivalent 
  5.7   education assistants or aides as the district employed during 
  5.8   the 1992-1993 school year under Minnesota Statutes 1992, section 
  5.9   124.331, subdivision 2.