1.1 	A bill for an act
1.2 	relating to education finance; reducing elementary and secondary class sizes 
1.3 	through a voluntary, incentive-based funding program; appropriating money;
1.4 	amending Minnesota Statutes 2004, sections 120B.36, subdivision 1; 126C.20; 
1.5 	proposing coding for new law in Minnesota Statutes, chapter 126C; repealing 
1.6 	Minnesota Statutes 2004, section 126C.12.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 120B.36, subdivision 1, is amended to read:
1.9 		Subdivision 1.School performance report cards. (a) The commissioner shall 
1.10 	use objective criteria based on levels of student performance to identify four to six 
1.11 	designations applicable to high and low performing public schools. The objective criteria 
1.12 	shall include at least student academic performance, school safety, student-to-teacher 
1.13 	ratios, and staff characteristics, with a value-added growth component added by the 
1.14 	2006-2007 school year.
1.15 	(b) The commissioner shall develop, annually update, and post on the department 
1.16 	Web site school performance report cards. A school's designation must be clearly stated 
1.17 	on each school performance report card.
1.18 	(c) The commissioner must make available the first school designations and school 
1.19 	performance report cards by November 2003, and during the beginning of each school 
1.20 	year thereafter.
1.21 	(d) A school or district may appeal in writing a designation under this section to the 
1.22 	commissioner within 30 days of receiving the designation. The commissioner's decision 
1.23 	to uphold or deny an appeal is final.
1.24 	(e) School performance report cards are nonpublic data under section  13.02, 
1.25 	subdivision 9, until not later than ten days after the appeal procedure described in 
2.1 	paragraph (d) concludes. The department shall annually post school performance report 
2.2 	cards to its public Web site no later than September 1. 

2.3 	EFFECTIVE DATE. This section is effective for report cards issued after July 
2.4 	1, 2006.

2.5 	Sec. 2. [126C.105] CLASS SIZE REDUCTION PROGRAM.
2.6 		Subdivision 1.Definition.  "Classroom teacher" means a public employee 
2.7 	licensed by the Board of Teaching who is authorized to teach all subjects to children 
2.8 	in any grade in kindergarten through grade 12 and whose duties are full-time regular 
2.9 	classroom instruction, excluding a teacher for whom federal aids are received or for 
2.10 	whom categorical aids are received under section 125A.76 or who is an itinerant teacher 
2.11 	or   provides instruction outside of the regular classroom. Except as provided in section 
2.12 	122A.68, subdivision 6, classroom teacher does not include supervisory and support 
2.13 	personnel defined in   section 122A.15.
2.14 		Subd. 2.Full funding eligibility. To qualify for funding under this section, a 
2.15 	school district shall maintain in each participating class an annual average class size not 
2.16 	exceeding the ratios established in subdivision 3 during the instructional time qualifying 
2.17 	the class for funding.
2.18 		Subd. 3.Class size ratios. The class size ratios are as follows:
2.19 	(1) for students in kindergarten to grade 3, a school district shall maintain a ratio 
2.20 	of not more than 20 students for each classroom teacher;
2.21 	(2) for students in grades 4 to 6, a school district shall maintain a ratio of not more 
2.22 	than 22 students for each classroom teacher; 
2.23 	(3) for students in grades 7 to 9 in English, mathematics, science, and social studies 
2.24 	classes, a school district shall maintain a ratio of not more than 25 students for each 
2.25 	classroom teacher;
2.26 	(4) for students in grades 10 to 12 in English, mathematics, science, and social 
2.27 	studies classes, a school district shall maintain a ratio of not more than 28 students for 
2.28 	each classroom teacher; and
2.29 	(5) for students in grades 7 to 12, in classrooms that are designated as laboratory 
2.30 	classrooms, a school district shall maintain a ratio of not more than 24 students for each 
2.31 	classroom teacher.
2.32 		Subd. 4.Class size determination. A school district's class size may exceed the 
2.33 	class size ratios established in subdivision 3 on a particular school day, but the average 
2.34 	class size for the school year must not exceed the maximum class size.
3.1 		Subd. 5.Revenue. A school district that certifies to the Department of Education 
3.2 	that it is eligible for full funding under subdivision 2 is eligible for class size reduction 
3.3 	revenue of $500 times the number of elementary students in each qualifying classroom in 
3.4 	kindergarten through grade 6, and $100 times the number of secondary students.
3.5 		Subd. 6.Use of revenue. Revenue received through the class size reduction 
3.6 	program at the secondary level shall be used to maintain the ratios specified in subdivision 
3.7 	3, clauses (3) and (4), for English, mathematics, science, and social studies classrooms.
3.8 		Subd. 7.State aid. Class size reduction revenue is provided entirely through 
3.9 	state aid.

3.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2007 
3.11 	and later.

3.12 	Sec. 3. Minnesota Statutes 2004, section 126C.20, is amended to read:
3.13 	126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
3.14 	There is annually appropriated from the general fund to the department the amount 
3.15 	necessary for general education aid and class size reduction aid under section 126C.105. 
3.16 	This amount must be reduced by the amount of any money specifically appropriated for 
3.17 	the same purpose in any year from any state fund.

3.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007.

3.19 	Sec. 4. APPROPRIATION.
 3.20 	$300,000,000 in fiscal year 2007 is appropriated from the general fund to the 
3.21 	commissioner of education for class size reduction revenue according to section 2.

3.22 	Sec. 5.  REPEALER.
 3.23 	Minnesota Statutes 2004, section 126C.12, is repealed.