1.1                          A bill for an act 
  1.2             relating to education; modifying special education 
  1.3             revenue and excess cost revenue; increasing the pupil 
  1.4             weighting for prekindergarten special education 
  1.5             pupils; amending Minnesota Statutes 1998, sections 
  1.6             125A.76, subdivisions 1 and 4; 125A.79, subdivision 2, 
  1.7             and by adding a subdivision; and 126C.05, subdivision 
  1.8             1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 125A.76, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  1.13  section and section 125A.77, the definitions in this subdivision 
  1.14  apply. 
  1.15     (a) "Base year" for fiscal year 1998 and later fiscal years 
  1.16  means the second fiscal year preceding the fiscal year for which 
  1.17  aid will be paid. 
  1.18     (b) "Basic revenue" has the meaning given it in section 
  1.19  126C.10, subdivision 2.  For the purposes of computing basic 
  1.20  revenue pursuant to this section, each child with a disability 
  1.21  shall be counted as prescribed in section 126C.05, subdivision 1.
  1.22     (c) "Essential personnel" means teachers, related services, 
  1.23  and support services staff providing direct services to students.
  1.24     (d) "Average daily membership" has the meaning given it in 
  1.25  section 126C.05. 
  1.26     (e) "Program growth factor" means 1.00 for fiscal ~~year~~ 
  1.27  years 2000 and 2001, and 1.02 for fiscal year 2002 and later. 
  2.1      (f) "Aid percentage factor" means 60 percent for fiscal 
  2.2   year 1996, 70 percent for fiscal year 1997, 80 percent for 
  2.3   fiscal year 1998, 90 percent for fiscal year 1999, and 100 
  2.4   percent for fiscal years 2000 and later. 
  2.5      (g) "Levy percentage factor" means 100 minus the aid 
  2.6   percentage factor for that year. 
  2.7      Sec. 2.  Minnesota Statutes 1998, section 125A.76, 
  2.8   subdivision 4, is amended to read: 
  2.9      Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
  2.10  state total special education revenue for fiscal year ~~1998~~ 2000 
  2.11  equals ~~$358,542,000~~ $456,015,000.  The state total special 
  2.12  education revenue for fiscal year ~~1999~~ 2001 equals 
  2.13  ~~$435,322,000~~ $472,900,000.  The state total special education 
  2.14  revenue for later fiscal years equals:  
  2.15     (1) the state total special education revenue for the 
  2.16  preceding fiscal year; times 
  2.17     (2) the program growth factor; times 
  2.18     (3) the ratio of the state total average daily membership 
  2.19  for the current fiscal year to the state total average daily 
  2.20  membership for the preceding fiscal year. 
  2.21     Sec. 3.  Minnesota Statutes 1998, section 125A.79, 
  2.22  subdivision 2, is amended to read: 
  2.23     Subd. 2.  [SCHOOL DISTRICT EXCESS COST REVENUE.] ~~For 1997~~ 
  2.24  ~~and later fiscal years,~~ A district's special education excess 
  2.25  cost revenue equals the greatest of: 
  2.26     (a) 70 percent of the difference between (1) the district's 
  2.27  unreimbursed special education cost and (2) ~~5.7~~ 4.36 percent for 
  2.28  fiscal year ~~1997~~ 2000 and later years of the district's general 
  2.29  revenue; 
  2.30     (b) 70 percent of the difference between (1) the increase 
  2.31  in the district's unreimbursed special education cost between 
  2.32  the base year as defined in section 125A.76, subdivision 1, and 
  2.33  the current year and (2) 1.6 percent of the district's general 
  2.34  revenue; or 
  2.35     (c) zero. 
  2.36     Sec. 4.  Minnesota Statutes 1998, section 125A.79, is 
  3.1   amended by adding a subdivision to read: 
  3.2      Subd. 2a.  [STATE TOTAL EXCESS COST REVENUE.] The state 
  3.3   total excess cost revenue for fiscal year 2001 equals 
  3.4   $80,708,000.  The state total excess cost revenue for later 
  3.5   fiscal years equals: 
  3.6      (1) the state total special education revenue for the 
  3.7   preceding fiscal year; times 
  3.8      (2) 1.044 for fiscal year 2002 and 1.02 for fiscal years 
  3.9   2003 and later; times 
  3.10     (3) the ratio of the state total average daily membership 
  3.11  for the current fiscal year to the state total average daily 
  3.12  membership for the preceding fiscal year.  
  3.13     Sec. 5.  Minnesota Statutes 1998, section 126C.05, 
  3.14  subdivision 1, is amended to read: 
  3.15     Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
  3.16  Minnesota resident pupil in average daily membership enrolled in 
  3.17  the district of residence, in another district under sections 
  3.18  123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
  3.19  124D.68; in a charter school under section 124D.10; or for whom 
  3.20  the resident district pays tuition under section 123A.18, 
  3.21  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  3.22  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  3.23  125A.65, shall be counted according to this subdivision.  
  3.24     (a) A prekindergarten pupil with a disability who is 
  3.25  enrolled in a program approved by the commissioner and has an 
  3.26  individual education plan is counted as the product of 1.25 
  3.27  times the ratio of the number of hours of assessment and 
  3.28  education service to 825 with a minimum of 0.28, but not more 
  3.29  than ~~one~~ 1.25. 
  3.30     (b) A prekindergarten pupil who is assessed but determined 
  3.31  not to be handicapped is counted as the product of 1.25 times 
  3.32  the ratio of the number of hours of assessment service to 825.  
  3.33     (c) A kindergarten pupil with a disability who is enrolled 
  3.34  in a program approved by the commissioner is counted as the 
  3.35  ratio of the number of hours of assessment and education 
  3.36  services required in the fiscal year by the pupil's individual 
  4.1   education program plan to 875, but not more than one. 
  4.2      (d) A kindergarten pupil who is not included in paragraph 
  4.3   (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
  4.4   thereafter. 
  4.5      (e) A pupil who is in any of grades 1 to 6 is counted as 
  4.6   1.06 pupil units for fiscal year 1995 and thereafter. 
  4.7      (f) A pupil who is in any of grades 7 to 12 is counted as 
  4.8   1.3 pupil units.  
  4.9      (g) A pupil who is in the post-secondary enrollment options 
  4.10  program is counted as 1.3 pupil units.  
  4.11     Sec. 6.  [EFFECTIVE DATE.] 
  4.12     Sections 1 to 5 are effective for revenue for fiscal year 
  4.13  2000 and later.