1.1 	A bill for an act
1.2 	relating to education finance; eliminating reserve accounts; requiring a report; 
1.3 	amending Minnesota Statutes 2004, section 123B.79, by adding a subdivision.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2004, section 123B.79, is amended by adding a 
1.6 	subdivision to read:
1.7 		Subd. 9.Elimination of reserve accounts. Notwithstanding other law to the 
1.8 	contrary, upon adoption of a resolution by the school board, a school district may eliminate 
1.9 	reserve accounts for any of the following programs:
1.10 	(1) staff development;
1.11 	(2) area learning center programs;
1.12 	(3) contract and state-approved alternative programs; 
1.13 	(4) reserve for class size, all-day kindergarten, and special education based upon 
1.14 	specific funding that is no longer available to the school district;
1.15 	(5) basic skills programs;
1.16 	(6) first grade preparedness;
1.17 	(7) parental involvement programs;
1.18 	(8) graduation standards staff development;
1.19 	(9) graduation standards gifted and talented revenue;
1.20 	(10) graduation standards programs;
1.21 	(11) bus safety;
1.22 	(12) bus purchase;
1.23 	(13) deferred maintenance programs; or
1.24 	(14) teacher programs for which specific funding is no longer available.

2.1 	EFFECTIVE DATE. This section is effective June 30, 2006.

2.2 	Sec. 2. DEPARTMENT OF EDUCATION REPORT.
 2.3 	The Department of Education must provide a report to the education committees 
2.4 	of the legislature by January 15, 2007. The report must analyze the department's data 
2.5 	collection procedures under each of the department's major data reporting systems and 
2.6 	recommend a streamlined, Web-based, system of reporting school district data. The report 
2.7 	must also analyze any stand-alone school district reporting requirements and recommend 
2.8 	elimination of any district reports that are duplicative of other data already collected 
2.9 	by the department.

2.10 	EFFECTIVE DATE. This section is effective the day following final enactment.