1.1                          A bill for an act 
  1.2             relating to education; prekindergarten through grade 
  1.3             12; providing for general education revenue; 
  1.4             transportation; special programs; community programs; 
  1.5             facilities; education organization and cooperation; 
  1.6             commitment to excellence; other education programs; 
  1.7             miscellaneous provisions; libraries; education agency 
  1.8             services; appropriating money; amending Minnesota 
  1.9             Statutes 1994, sections 120.064, subdivisions 3, 4, 8, 
  1.10            and 15; 121.904, subdivisions 4a and 4c; 121.912, 
  1.11            subdivisions 1 and 1b; 123.71, by adding a 
  1.12            subdivision; 124.17, subdivisions 1, 1d, 2f, and by 
  1.13            adding subdivisions; 124.195, subdivision 10; 124.214, 
  1.14            subdivisions 2 and 3; 124.223, subdivision 7; 124.225, 
  1.15            subdivisions 1, 3a, 7b, 7d, 7e, and 8a; 124.226, 
  1.16            subdivisions 1, 3, 4, and 5; 124.243, subdivisions 2, 
  1.17            3, and by adding a subdivision; 124.244, subdivisions 
  1.18            1, 2, 4, and by adding a subdivision; 124.2445; 
  1.19            124.248, subdivision 4, and by adding subdivisions; 
  1.20            124.261, subdivision 1; 124.2713, subdivisions 3 and 
  1.21            6; 124.2725, subdivisions 1 and 15; 124.2726, 
  1.22            subdivision 2; 124.2727, subdivision 6a; 124.2728, 
  1.23            subdivision 1; 124.273, by adding subdivisions; 
  1.24            124.311, subdivision 5; 124.32, subdivision 10; 
  1.25            124.321, subdivisions 1 and 2; 124.322; 124.323, 
  1.26            subdivision 1; 124.573, subdivision 3; 124.574, 
  1.27            subdivision 9, and by adding subdivisions; 124.918, 
  1.28            subdivisions 1 and 2; 124.95, subdivision 6; 124.961; 
  1.29            124A.02, subdivision 16, and by adding a subdivision; 
  1.30            124A.03, subdivisions 1g, 1h, and 2; 124A.22, 
  1.31            subdivisions 1, 2, 3, 4, 4a, 4b, 8a, 9, and by adding 
  1.32            a subdivision; 124A.23, subdivisions 1, 4, and 5; 
  1.33            124A.24; 125.05, subdivision 1a; 179A.04, subdivision 
  1.34            3; 179A.16, subdivision 7, and by adding a 
  1.35            subdivision; 179A.17, subdivision 1; 275.065, 
  1.36            subdivisions 1 and 3; 276.04, subdivision 2; 354.07, 
  1.37            subdivision 1; and 354.42, subdivisions 2, 3, 5, and 
  1.38            by adding a subdivision; Laws 1993, chapter 224, 
  1.39            article 8, section 21, subdivision 1; proposing coding 
  1.40            for new law in Minnesota Statutes, chapters 124; and 
  1.41            124A; repealing Minnesota Statutes 1994, sections 
  1.42            124.17, subdivision 1b; 124.226, subdivisions 2 and 9; 
  1.43            124.243, subdivisions 2a and 9; 124.26; 124.2713, 
  1.44            subdivisions 1, 5, and 9; 124.2714; 124.2716; 
  1.45            124.2727, subdivision 6a; 124.273, subdivisions 1b and 
  1.46            2c; 124.276; 124.278; 124.311; 124.32, subdivisions 
  2.1             1b, 1c, 1d, 1f, 2, and 3a; 124.573, subdivisions 1, 2, 
  2.2             2b, 2e, 2f, 3a, and 5a; 124.574, subdivisions 2b, 3, 
  2.3             4, and 4a; 124.91, subdivision 5; 124.912, 
  2.4             subdivisions 7 and 8; 124.914, subdivisions 2, 3, and 
  2.5             4; 124.916, subdivision 2; 124.962; 124A.04, 
  2.6             subdivision 1; 124A.22, subdivision 2a; 124A.225; 
  2.7             124A.27; 124A.28; 124A.29; 124A.291; and 124A.292. 
  2.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.9                              ARTICLE 1 
  2.10                     GENERAL EDUCATION REVENUE 
  2.11     Section 1.  Minnesota Statutes 1994, section 121.904, 
  2.12  subdivision 4a, is amended to read: 
  2.13     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  2.14  settlement revenue" means the current, delinquent, and 
  2.15  manufactured home property tax receipts collected by the county 
  2.16  and distributed to the school district, including distributions 
  2.17  made pursuant to section 279.37, subdivision 7, and excluding 
  2.18  the amount levied pursuant to section 124.914, subdivision 1. 
  2.19     (b) In June of each year, the school district shall 
  2.20  recognize as revenue, in the fund for which the levy was made, 
  2.21  the lesser of:  
  2.22     (1) the May, June, and July school district tax settlement 
  2.23  revenue received in that calendar year; or 
  2.24     (2) the sum of the state aids and credits enumerated in 
  2.25  section 124.155, subdivision 2, which are for the fiscal year 
  2.26  payable in that fiscal year plus an amount equal to the levy 
  2.27  recognized as revenue in June of the prior year plus 37.4 48 
  2.28  percent for fiscal year 1994 1996 and thereafter of the amount 
  2.29  of the levy certified in the prior calendar year according to 
  2.30  section 124A.03, subdivision 2, plus or minus auditor's 
  2.31  adjustments, not including levy portions that are assumed by the 
  2.32  state; or 
  2.33     (3) 37.4 48 percent for fiscal year 1994 1996 and 
  2.34  thereafter of the amount of the levy certified in the prior 
  2.35  calendar year, plus or minus auditor's adjustments, not 
  2.36  including levy portions that are assumed by the state, which 
  2.37  remains after subtracting, by fund, the amounts levied for the 
  2.38  following purposes:  
  2.39     (i) reducing or eliminating projected deficits in the 
  3.1   reserved fund balance accounts for unemployment insurance and 
  3.2   bus purchases; 
  3.3      (ii) statutory operating debt pursuant to section 124.914, 
  3.4   subdivision 1; 
  3.5      (iii) retirement and severance pay pursuant to sections 
  3.6   122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  3.7   124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  3.8   1975, chapter 261, section 4; 
  3.9      (iv) amounts levied for bonds issued and interest thereon, 
  3.10  amounts levied for debt service loans and capital loans, amounts 
  3.11  levied for down payments under section 124.82, subdivision 3, 
  3.12  and amounts levied pursuant to section 136C.411; and 
  3.13     (v) amounts levied under section 124.755.  
  3.14     (c) In July of each year, the school district shall 
  3.15  recognize as revenue that portion of the school district tax 
  3.16  settlement revenue received in that calendar year and not 
  3.17  recognized as revenue for the previous fiscal year pursuant to 
  3.18  clause (b).  
  3.19     (d) All other school district tax settlement revenue shall 
  3.20  be recognized as revenue in the fiscal year of the settlement. 
  3.21  Portions of the school district levy assumed by the state, 
  3.22  including prior year adjustments and the amount to fund the 
  3.23  school portion of the reimbursement made pursuant to section 
  3.24  273.425, shall be recognized as revenue in the fiscal year 
  3.25  beginning in the calendar year for which the levy is payable. 
  3.26     Sec. 2.  Minnesota Statutes 1994, section 121.904, 
  3.27  subdivision 4c, is amended to read: 
  3.28     Subd. 4c.  [PROPERTY TAX SHIFT REDUCTION CHANGE IN LEVY 
  3.29  RECOGNITION PERCENT.] (a) Money appropriated under section 
  3.30  16A.152, subdivision 2, must be used to reduce the levy 
  3.31  recognition percent specified in subdivision 4a, clauses (b)(2) 
  3.32  and (b)(3), for taxes payable in the succeeding calendar year.  
  3.33     (b) The levy recognition percent shall equal the result of 
  3.34  the following computation:  the current levy recognition 
  3.35  percent, times the ratio of 
  3.36     (1) the statewide total amount of levy recognized in June 
  4.1   of the year in which the taxes are payable pursuant to 
  4.2   subdivision 4a, clause (b), excluding those levies that are 
  4.3   shifted for revenue recognition but are not included in the 
  4.4   computation of the adjustment to aids under section 124.155, 
  4.5   subdivision 1, reduced by the difference between the amount of 
  4.6   money appropriated under section 16A.152, subdivision 2, and the 
  4.7   amount required for the adjustment payment under clause (d), to 
  4.8      (2) the statewide total amount of the levy recognized in 
  4.9   June of the year in which the taxes are payable pursuant to 
  4.10  subdivision 4a, clause (b), excluding those levies that are 
  4.11  shifted for revenue recognition but are not included in the 
  4.12  computation of the adjustment to aids under section 124.155, 
  4.13  subdivision 1.  
  4.14     The result shall be rounded up to the nearest one-tenth of 
  4.15  a percent.  However, in no case shall the levy recognition 
  4.16  percent be reduced below zero or increased above the current 
  4.17  levy recognition percent.  
  4.18     (c) The commissioner of finance must certify to the 
  4.19  commissioner of education the levy recognition percent computed 
  4.20  under this subdivision by January 5 of each year.  The 
  4.21  commissioner of education must notify school districts of a 
  4.22  change in the levy recognition percent by January 15. 
  4.23     (d) For fiscal years 1994 and 1995, When the levy 
  4.24  recognition percent is increased or decreased as provided in 
  4.25  this subdivision, a special aid adjustment shall be made to each 
  4.26  school district with an operating referendum levy:  
  4.27     (i) When the levy recognition percent is increased from the 
  4.28  prior fiscal year, the commissioner of education shall calculate 
  4.29  the difference between (1) the amount of the levy under section 
  4.30  124A.03, that is recognized as revenue for the current fiscal 
  4.31  year according to subdivision 4a; and (2) the amount of the 
  4.32  levy, under section 124A.03, that would have been recognized as 
  4.33  revenue for the current fiscal year had the percentage according 
  4.34  to subdivision 4a, not been increased.  The commissioner shall 
  4.35  reduce other aids due the district by the amount of the 
  4.36  difference.  This aid reduction shall be in addition to the aid 
  5.1   reduction required because of the increase pursuant to this 
  5.2   subdivision of the levy recognition percent.  
  5.3      (ii)  When the levy recognition percent is reduced as 
  5.4   provided in this subdivision from the prior fiscal year, a 
  5.5   special adjustment payment shall be made to each school district 
  5.6   with an operating referendum levy that received an aid reduction 
  5.7   under Laws 1991, chapter 265, article 1, section 31, or Laws 
  5.8   1992, chapter 499, article 1, section 22 when the levy 
  5.9   recognition percent was last increased.  The special adjustment 
  5.10  payment shall be in addition to the additional payments required 
  5.11  because of the reduction pursuant to this subdivision of the 
  5.12  levy recognition percent.  The amount of the special adjustment 
  5.13  payment shall be computed by the commissioner of education such 
  5.14  that any remaining portion of the aid reduction these districts 
  5.15  received that has not been repaid is repaid on a proportionate 
  5.16  basis as the levy recognition percent is reduced from 50 percent 
  5.17  to 31 percent.  The special adjustment payment must be included 
  5.18  in the state aid payments to school districts according to the 
  5.19  schedule specified in section 124.195, subdivision 3.  An 
  5.20  additional adjustment shall be made on June 30, 1995, for the 
  5.21  final payment otherwise due July 1, 1995, under Minnesota 
  5.22  Statutes 1992, section 136C.36. 
  5.23     (e) The commissioner of finance shall transfer from the 
  5.24  general fund to the education aids appropriations specified by 
  5.25  the commissioner of education, the amounts needed to finance the 
  5.26  additional payments required because of the reduction pursuant 
  5.27  to this subdivision of the levy recognition percent.  Payments 
  5.28  to a school district of additional state aids resulting from a 
  5.29  reduction in the levy recognition percent must be included in 
  5.30  the cash metering of payments made according to section 124.195 
  5.31  after January 15, and must be paid in a manner consistent with 
  5.32  the percent specified in that section. 
  5.33     Sec. 3.  Minnesota Statutes 1994, section 121.912, 
  5.34  subdivision 1, is amended to read: 
  5.35     Subdivision 1.  [LIMITATIONS.] (a) Except as provided in 
  5.36  this subdivision, sections 121.9121, 123.36, 124.243, 475.61, 
  6.1   and 475.65, a school district may not permanently transfer money 
  6.2   from (1) an operating fund to a nonoperating fund; (2) a 
  6.3   nonoperating fund to another nonoperating fund; or (3) a 
  6.4   nonoperating fund to an operating fund. 
  6.5      (b) Permanent transfers may be made from any fund to any 
  6.6   other fund to correct for prior fiscal years' errors discovered 
  6.7   after the books have been closed for that year. 
  6.8      (c) Permanent transfers may be made from the general fund 
  6.9   to any other operating funds according to section 123.7045 or if 
  6.10  the resources of the other fund are not adequate to finance 
  6.11  approved expenditures from that other fund. 
  6.12     (d) Permanent transfers may also be made from the general 
  6.13  fund to eliminate deficits in another fund when that other fund 
  6.14  is being discontinued. 
  6.15     (e) When a district discontinues operation of a 
  6.16  district-owned bus fleet or a substantial portion of a fleet, 
  6.17  permanent transfers must be made, on June 30 of the fiscal year 
  6.18  that the operation is discontinued, from the fund balance 
  6.19  account entitled "pupil transportation fund reserved for bus 
  6.20  purchases" to the capital expenditure fund.  The sum of the 
  6.21  levies authorized pursuant to sections 124.243, 124.244, and 
  6.22  124.83 shall be reduced by an amount equal to the amount 
  6.23  transferred. 
  6.24     (f) Any school district may transfer any amount from the 
  6.25  undesignated fund balance account in its transportation fund to 
  6.26  any other operating fund or to the reserved fund balance account 
  6.27  for bus purchases in its transportation fund. 
  6.28     (g) Permanent transfers may be made from the general fund 
  6.29  to the equipment account in the capital expenditure fund if the 
  6.30  resources of the equipment account are not adequate to finance 
  6.31  approved expenditures from that account. 
  6.32     Sec. 4.  Minnesota Statutes 1994, section 121.912, 
  6.33  subdivision 1b, is amended to read: 
  6.34     Subd. 1b.  [TRA AND FICA TRANSFER.] (a) Notwithstanding 
  6.35  subdivision 1, a district shall may transfer money from the 
  6.36  general fund to the community service fund for the employer 
  7.1   contributions for teacher retirement and FICA for employees who 
  7.2   are members of a teacher retirement association and who are paid 
  7.3   from the community service fund.  
  7.4      (b) A district shall not transfer money under paragraph (a) 
  7.5   for employees who are paid with money other than normal 
  7.6   operating funds, as defined in section 354.05, subdivision 27.  
  7.7      Sec. 5.  Minnesota Statutes 1994, section 123.71, is 
  7.8   amended by adding a subdivision to read: 
  7.9      Subd. 5.  Beginning in fiscal year 1996, each district 
  7.10  shall hold at least one public hearing in either April, May, or 
  7.11  June to discuss and seek public comment on student performance 
  7.12  in the district, the district's budget for the current fiscal 
  7.13  year, and the district's proposed budget for the following 
  7.14  fiscal year.  The financial information provided by the district 
  7.15  at the hearing shall be at least that required to be published 
  7.16  in the next year pursuant to subdivisions 1 and 2, based on 
  7.17  available estimates, along with an explanation of budget 
  7.18  assumptions.  The student information provided shall be compared 
  7.19  with expectations of student performance established by the 
  7.20  district.  The hearing may be held at the beginning of a 
  7.21  regularly scheduled board meeting.  At least a two-week notice 
  7.22  shall be provided to the public in a qualified newspaper of 
  7.23  general circulation in the district. 
  7.24     Sec. 6.  Minnesota Statutes 1994, section 124.17, 
  7.25  subdivision 1, is amended to read: 
  7.26     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
  7.27  pupil in average daily membership shall be counted according to 
  7.28  this subdivision.  
  7.29     (a) A prekindergarten pupil with a disability who is 
  7.30  enrolled for the entire fiscal year in a program approved by the 
  7.31  commissioner and has an individual education plan that requires 
  7.32  up to 437 hours of assessment and education services in the 
  7.33  fiscal year is counted as one-half of a pupil unit.  If the plan 
  7.34  requires more than 437 hours of assessment and education 
  7.35  services, the pupil is counted as the ratio of the number of 
  7.36  hours of assessment and education service to 875 825 with a 
  8.1   minimum of 0.28, but not more than one. 
  8.2      (b) A prekindergarten pupil with a disability who is 
  8.3   enrolled for less than the entire fiscal year in a program 
  8.4   approved by the commissioner is counted as the greater of: 
  8.5      (1) one-half times the ratio of the number of instructional 
  8.6   days from the date the pupil is enrolled to the date the pupil 
  8.7   withdraws to the number of instructional days in the school 
  8.8   year; or 
  8.9      (2) the ratio of the number of hours of assessment and 
  8.10  education service required in the fiscal year by the pupil's 
  8.11  individual education program plan to 875, but not more than one. 
  8.12     (c) A prekindergarten pupil who is assessed but determined 
  8.13  not to be handicapped is counted as the ratio of the number of 
  8.14  hours of assessment service to 875 825.  
  8.15     (d) A kindergarten pupil with a disability who is enrolled 
  8.16  in a program approved by the commissioner is counted as the 
  8.17  ratio of the number of hours of assessment and education 
  8.18  services required in the fiscal year by the pupil's individual 
  8.19  education program plan to 875, but not more than one. 
  8.20     (e) A kindergarten pupil who is not included in paragraph 
  8.21  (d) is counted as .515 of a pupil unit for fiscal year 1994 and 
  8.22  .53 of a pupil unit for fiscal year 1995 and .5 of a pupil unit 
  8.23  for fiscal year 1996 and thereafter. 
  8.24     (f) A pupil who is in any of grades 1 to 6 is counted as 
  8.25  1.03 pupil units for fiscal year 1994 and 1.06 pupil units for 
  8.26  fiscal year 1995 and 1.0 pupil units for fiscal year 1996 and 
  8.27  thereafter. 
  8.28     (g) A pupil who is in any of grades 7 to 12 is counted as 
  8.29  1.3 pupil units.  
  8.30     (h) A pupil who is in the post-secondary enrollment options 
  8.31  program is counted as 1.3 pupil units. 
  8.32     Sec. 7.  Minnesota Statutes 1994, section 124.17, 
  8.33  subdivision 1d, is amended to read: 
  8.34     Subd. 1d.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
  8.35  year 1993 and thereafter 1996 must be computed according to this 
  8.36  subdivision.  
  9.1      (a) The AFDC concentration percentage for a district equals 
  9.2   the product of 100 times the ratio of:  
  9.3      (1) the number of pupils enrolled in the district from 
  9.4   families receiving aid to families with dependent children 
  9.5   according to subdivision 1e; to 
  9.6      (2) the number of pupils in average daily membership 
  9.7   according to subdivision 1e enrolled in the district. 
  9.8      (b) The AFDC pupil weighting factor for a district equals 
  9.9   the lesser of one or the quotient obtained by dividing the 
  9.10  district's AFDC concentration percentage by 11.5.  
  9.11     (c) The AFDC pupil units for a district for fiscal year 
  9.12  1993 and thereafter equals the product of:  
  9.13     (1) the number of pupils enrolled in the district from 
  9.14  families receiving aid to families with dependent children 
  9.15  according to subdivision 1e; times 
  9.16     (2) the AFDC pupil weighting factor for the district; times 
  9.17     (3) .65. 
  9.18     Sec. 8.  Minnesota Statutes 1994, section 124.17, is 
  9.19  amended by adding a subdivision to read: 
  9.20     Subd. 1f.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
  9.21  year 1997 and thereafter must be computed according to this 
  9.22  subdivision. 
  9.23     (a) The AFDC concentration percentage for a district equals 
  9.24  the product of 100 times the ratio of: 
  9.25     (1) the number of pupils enrolled in the district from 
  9.26  families receiving aid to families with dependent children 
  9.27  according to subdivision 1e; to 
  9.28     (2) the number of pupils in average daily membership 
  9.29  according to subdivision 1e enrolled in the district. 
  9.30     (b) The AFDC pupil weighting factor for a district equals 
  9.31  the lesser of one or the quotient obtained by dividing the 
  9.32  district's AFDC concentration percentage by 11.5. 
  9.33     (c) The AFDC pupil units for a district for fiscal year 
  9.34  1997 and thereafter equals the sum of: 
  9.35     (1) .03 times the number of pupils enrolled in the district 
  9.36  from families receiving aid to families with dependent children 
 10.1   according to subdivision 1e; plus 
 10.2      (2) the product of: 
 10.3      (i) the number of pupils enrolled in the district from 
 10.4   families receiving aid to families with dependent children 
 10.5   according to subdivision 1e; times 
 10.6      (ii) the AFDC pupil weighting factor for the district; 
 10.7   times 
 10.8      (iii) .65. 
 10.9      Sec. 9.  Minnesota Statutes 1994, section 124.17, is 
 10.10  amended by adding a subdivision to read: 
 10.11     Subd. 1g.  [AFDC ENROLLMENT OPTIONS EXCEPTION.] 
 10.12  Notwithstanding subdivision 1f, AFDC pupil units for AFDC pupils 
 10.13  transferring between a school district with a desegregation plan 
 10.14  and another school district under sections 120.062, 120.075, 
 10.15  120.0751, 120.0752, 124C.45 to 124C.48, and 126.22, shall be 
 10.16  computed using the AFDC concentration percentage computed for 
 10.17  the pupil's district of residence. 
 10.18     Sec. 10.  Minnesota Statutes 1994, section 124.17, 
 10.19  subdivision 2f, is amended to read: 
 10.20     Subd. 2f.  [PSEO PUPILS.] The average daily membership for 
 10.21  a student pupil participating in the post-secondary enrollment 
 10.22  options program equals the lesser of 
 10.23     (1) (a) 1.00, or 
 10.24     (2) (b) the greater of 
 10.25     (i) (1) .12, or 
 10.26     (ii) (2) the ratio of (i) the sum of the number of 
 10.27  instructional hours the student pupil is enrolled in the 
 10.28  secondary school to the product of the number of days required 
 10.29  in section 120.101, subdivision 5b, times the minimum length of 
 10.30  day required in Minnesota Rules, part 3500.1500, subpart 
 10.31  1. during quarters, trimesters, or semesters during which the 
 10.32  pupil participates in PSEO, and hours enrolled in the secondary 
 10.33  school during the remainder of the school year, to (ii) the 
 10.34  actual number of instructional days in the school year times the 
 10.35  length of day in the school. 
 10.36     Sec. 11.  Minnesota Statutes 1994, section 124.17, is 
 11.1   amended by adding a subdivision to read: 
 11.2      Subd. 4.  [LIMITED ENGLISH PROFICIENCY PUPIL 
 11.3   UNITS.] Limited English proficiency pupil units for fiscal year 
 11.4   1997 and thereafter for a district enrolling pupils with limited 
 11.5   English proficiency on October 1 of the current school year 
 11.6   equals the greater of: 
 11.7      (1) one, or 
 11.8      (2) the number of pupils with limited English proficiency 
 11.9   enrolled in the district on October 1 of the current school year 
 11.10  times 0.18. 
 11.11     Sec. 12.  Minnesota Statutes 1994, section 124.17, is 
 11.12  amended by adding a subdivision to read: 
 11.13     Subd. 5.  [LEARNING GAP PUPIL UNITS.] Learning gap pupil 
 11.14  units for fiscal year 1997 and thereafter equals the sum of the 
 11.15  AFDC pupil units and the limited English proficiency pupil units.
 11.16     Sec. 13.  Minnesota Statutes 1994, section 124.195, 
 11.17  subdivision 10, is amended to read: 
 11.18     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 11.19  subdivisions 8, 9, and 11, each fiscal year, all education aids 
 11.20  and credits in this chapter and chapters 121, 123, 124A, 124B, 
 11.21  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
 11.22  for districts operating a program under section 121.585 for 
 11.23  grades 1 to 12 for all students in the district and 85 percent 
 11.24  for other districts of the estimated entitlement during the 
 11.25  fiscal year of the entitlement, unless a higher rate has been 
 11.26  established according to section 121.904, subdivision 4d.  
 11.27  Districts operating a program under section 121.585 for grades 1 
 11.28  to 12 for all students in the district shall receive 85 percent 
 11.29  of the estimated entitlement plus an additional amount of 
 11.30  general education aid equal to five percent of the estimated 
 11.31  entitlement.  For all districts, the final adjustment payment 
 11.32  according to subdivision 6, shall be the amount of the actual 
 11.33  entitlement, after adjustment for actual data, minus the 
 11.34  payments made during the fiscal year of the entitlement shall be 
 11.35  paid as the final adjustment payment according to subdivision 6. 
 11.36     Sec. 14.  Minnesota Statutes 1994, section 124.918, 
 12.1   subdivision 1, is amended to read: 
 12.2      Subdivision 1.  [CERTIFY LEVY LIMITS.] By September 1 8, 
 12.3   the commissioner shall notify the school districts of their levy 
 12.4   limits.  The commissioner shall certify to the county auditors 
 12.5   the levy limits for all school districts headquartered in the 
 12.6   respective counties together with adjustments for errors in 
 12.7   levies not penalized pursuant to section 124.918, subdivision 3, 
 12.8   as well as adjustments to final pupil unit counts. A school 
 12.9   district may require the commissioner to review the 
 12.10  certification and to present evidence in support of modification 
 12.11  of the certification. 
 12.12     The county auditor shall reduce levies for any excess of 
 12.13  levies over levy limitations pursuant to section 275.16.  Such 
 12.14  reduction in excess levies may, at the discretion of the school 
 12.15  district, be spread over two calendar years. 
 12.16     Sec. 15.  Minnesota Statutes 1994, section 124.918, 
 12.17  subdivision 2, is amended to read: 
 12.18     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By September 
 12.19  15 30 of each year each district shall notify the commissioner 
 12.20  of education of the proposed levies in compliance with the levy 
 12.21  limitations of this chapter and chapters 124A, 124B, 136C, and 
 12.22  136D.  By January 15 of each year each district shall notify the 
 12.23  commissioner of education of the final levies certified.  The 
 12.24  commissioner of education shall prescribe the form of these 
 12.25  notifications and may request any additional information 
 12.26  necessary to compute certified levy amounts. 
 12.27     Sec. 16.  Minnesota Statutes 1994, section 124A.02, 
 12.28  subdivision 16, is amended to read: 
 12.29     Subd. 16.  [PUPIL UNITS, AFDC.] "AFDC pupil units" for 
 12.30  fiscal year 1992 1996 means pupil units identified in section 
 12.31  124.17, subdivision 1b 1d. 
 12.32     "AFDC pupil units" for fiscal year 1993 1997 and thereafter 
 12.33  means pupil units identified in section 124.17, subdivision 1d 
 12.34  1f.  
 12.35     Sec. 17.  Minnesota Statutes 1994, section 124A.02, is 
 12.36  amended by adding a subdivision to read: 
 13.1      Subd. 16a.  [PUPIL UNITS, LEARNING GAP.] "Learning gap 
 13.2   pupil units" means pupil units identified in section 124.17, 
 13.3   subdivision 5. 
 13.4      Sec. 18.  Minnesota Statutes 1994, section 124A.03, 
 13.5   subdivision 1g, is amended to read: 
 13.6      Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 13.7   year 1996, a district's referendum equalization levy equals the 
 13.8   district's referendum equalization revenue times the lesser of 
 13.9   one or the ratio of the district's adjusted net tax capacity per 
 13.10  actual pupil unit to 100 percent of the equalizing factor as 
 13.11  defined in section 124A.02, subdivision 8. 
 13.12     (b) For fiscal year 1997 and thereafter, a district's 
 13.13  referendum equalization levy for a referendum levied against the 
 13.14  referendum market value of all taxable property as defined in 
 13.15  section 124A.02, subdivision 3b, equals the district's 
 13.16  referendum equalization revenue times the lesser of one or the 
 13.17  ratio of the district's referendum market value per actual pupil 
 13.18  unit to $476,000. 
 13.19     (c) For fiscal year 1997 and thereafter, a district's 
 13.20  referendum equalization levy for a referendum levied against the 
 13.21  net tax capacity of all taxable property equals the district's 
 13.22  referendum equalization revenue times the lesser of one or the 
 13.23  ratio of the district's adjusted net tax capacity per actual 
 13.24  pupil unit to $9,415. 
 13.25     Sec. 19.  Minnesota Statutes 1994, section 124A.03, 
 13.26  subdivision 1h, is amended to read: 
 13.27     Subd. 1h.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
 13.28  referendum equalization aid equals the difference between its 
 13.29  referendum equalization revenue and levy. 
 13.30     (b) For fiscal year 1993, a district's referendum 
 13.31  equalization aid is equal to one-third of the amount calculated 
 13.32  in clause (a). 
 13.33     (c) For fiscal year 1994, a district's referendum 
 13.34  equalization aid is equal to two-thirds of the amount calculated 
 13.35  in clause (a). 
 13.36     (d) If a district's actual levy for referendum equalization 
 14.1   revenue is less than its maximum levy limit, aid shall be 
 14.2   proportionately reduced. 
 14.3      Sec. 20.  Minnesota Statutes 1994, section 124A.03, 
 14.4   subdivision 2, is amended to read: 
 14.5      Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 14.6   by section 124A.22, subdivision 1, may be increased in the 
 14.7   amount approved by the voters of the district at a referendum 
 14.8   called for the purpose.  The referendum may be called by the 
 14.9   school board or shall be called by the school board upon written 
 14.10  petition of qualified voters of the district.  The referendum 
 14.11  shall be conducted during the calendar year before the increased 
 14.12  levy authority, if approved, first becomes payable.  Only one 
 14.13  election to approve an increase may be held in a calendar year.  
 14.14  Unless the referendum is conducted by mail under paragraph (g), 
 14.15  the referendum must be held on the first Tuesday after the first 
 14.16  Monday in November.  The ballot shall state the maximum amount 
 14.17  of the increased revenue per actual pupil unit, the estimated 
 14.18  referendum tax rate as a percentage of market value in the first 
 14.19  year it is to be levied, and that the revenue shall be used to 
 14.20  finance school operations.  The ballot may state that existing 
 14.21  referendum levy authority is expiring.  In this case, the ballot 
 14.22  may also compare the proposed levy authority to the existing 
 14.23  expiring levy authority, and express the proposed increase as 
 14.24  the amount, if any, over the expiring referendum levy 
 14.25  authority.  The ballot shall designate the specific number of 
 14.26  years, not to exceed ten, for which the referendum authorization 
 14.27  shall apply.  The ballot may contain a textual portion with the 
 14.28  information required in this subdivision and a question stating 
 14.29  substantially the following:  
 14.30     "Shall the increase in the revenue proposed by (petition 
 14.31  to) the board of ........., School District No. .., be approved?"
 14.32     If approved, an amount equal to the approved revenue per 
 14.33  actual pupil unit times the actual pupil units for the school 
 14.34  year beginning in the year after the levy is certified shall be 
 14.35  authorized for certification for the number of years approved, 
 14.36  if applicable, or until revoked or reduced by the voters of the 
 15.1   district at a subsequent referendum. 
 15.2      (b) The school board shall prepare and deliver by first 
 15.3   class mail at least 15 days but no more than 30 days prior to 
 15.4   the day of the referendum to each taxpayer a notice of the 
 15.5   referendum and the proposed revenue increase.  The school board 
 15.6   need not mail more than one notice to any taxpayer.  For the 
 15.7   purpose of giving mailed notice under this subdivision, owners 
 15.8   shall be those shown to be owners on the records of the county 
 15.9   auditor or, in any county where tax statements are mailed by the 
 15.10  county treasurer, on the records of the county treasurer.  Every 
 15.11  property owner whose name does not appear on the records of the 
 15.12  county auditor or the county treasurer shall be deemed to have 
 15.13  waived this mailed notice unless the owner has requested in 
 15.14  writing that the county auditor or county treasurer, as the case 
 15.15  may be, include the name on the records for this purpose.  The 
 15.16  notice must project the anticipated amount of tax increase in 
 15.17  annual dollars and annual percentage for typical residential 
 15.18  homesteads, agricultural homesteads, apartments, and 
 15.19  commercial-industrial property within the school district. 
 15.20     The notice for a referendum may state that an existing 
 15.21  referendum levy is expiring and project the anticipated amount 
 15.22  of increase over the existing referendum levy, if any, in annual 
 15.23  dollars and annual percentage for typical residential 
 15.24  homesteads, agricultural homesteads, apartments, and 
 15.25  commercial-industrial property within the school district. 
 15.26     The notice must include the following statement:  "Passage 
 15.27  of this referendum will result in an increase in your property 
 15.28  taxes." 
 15.29     (c) A referendum on the question of revoking or reducing 
 15.30  the increased revenue amount authorized pursuant to paragraph 
 15.31  (a) may be called by the school board and shall be called by the 
 15.32  school board upon the written petition of qualified voters of 
 15.33  the district.  A referendum to revoke or reduce the levy amount 
 15.34  must be based upon the dollar amount, local tax rate, or amount 
 15.35  per actual pupil unit, that was stated to be the basis for the 
 15.36  initial authorization.  Revenue approved by the voters of the 
 16.1   district pursuant to paragraph (a) must be received at least 
 16.2   once before it is subject to a referendum on its revocation or 
 16.3   reduction for subsequent years.  Only one revocation or 
 16.4   reduction referendum may be held to revoke or reduce referendum 
 16.5   revenue for any specific year and for years thereafter. 
 16.6      (d) A petition authorized by paragraph (a) or (c) shall be 
 16.7   effective if signed by a number of qualified voters in excess of 
 16.8   15 percent of the registered voters of the school district on 
 16.9   the day the petition is filed with the school board.  A 
 16.10  referendum invoked by petition shall be held on the date 
 16.11  specified in paragraph (a). 
 16.12     (e) The approval of 50 percent plus one of those voting on 
 16.13  the question is required to pass a referendum authorized by this 
 16.14  subdivision. 
 16.15     (f) At least 15 days prior to the day of the referendum, 
 16.16  the district shall submit a copy of the notice required under 
 16.17  paragraph (b) to the commissioner of education.  Within 15 days 
 16.18  after the results of the referendum have been certified by the 
 16.19  school board, or in the case of a recount, the certification of 
 16.20  the results of the recount by the canvassing board, the district 
 16.21  shall notify the commissioner of education of the results of the 
 16.22  referendum. 
 16.23     (g) Except for a referendum held under subdivision 2b, any 
 16.24  referendum under this section held on a day other than the first 
 16.25  Tuesday after the first Monday in November must be conducted by 
 16.26  mail in accordance with section 204B.46.  Notwithstanding 
 16.27  paragraph (b) to the contrary, in the case of a referendum 
 16.28  conducted by mail under this paragraph, the notice required by 
 16.29  paragraph (b) shall be prepared and delivered by first class 
 16.30  mail at least 20 days before the referendum. 
 16.31     Sec. 21.  Minnesota Statutes 1994, section 124A.22, 
 16.32  subdivision 1, is amended to read: 
 16.33     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 16.34  year 1996, the general education revenue for each district 
 16.35  equals the sum of the district's basic revenue, compensatory 
 16.36  education revenue, training and experience revenue, secondary 
 17.1   sparsity revenue, elementary sparsity revenue, and supplemental 
 17.2   revenue. 
 17.3      (b) For fiscal year 1997 and thereafter, the general 
 17.4   education revenue for each district equals the sum of the 
 17.5   district's basic revenue, learning gap revenue, training and 
 17.6   experience revenue, secondary sparsity revenue, elementary 
 17.7   sparsity revenue, and supplemental revenue. 
 17.8      Sec. 22.  Minnesota Statutes 1994, section 124A.22, 
 17.9   subdivision 2, is amended to read: 
 17.10     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 17.11  district equals the formula allowance times the actual pupil 
 17.12  units for the school year.  The formula allowance for fiscal 
 17.13  years 1993 and 1994 is $3,050.  The formula allowance for fiscal 
 17.14  year 1995 and subsequent fiscal years is $3,150.  The formula 
 17.15  allowance for fiscal year 1996 is $3,220.  The formula allowance 
 17.16  for fiscal year 1997 and subsequent fiscal years is $3,240. 
 17.17     Sec. 23.  Minnesota Statutes 1994, section 124A.22, 
 17.18  subdivision 3, is amended to read: 
 17.19     Subd. 3.  [FISCAL YEAR 1996 COMPENSATORY EDUCATION 
 17.20  REVENUE.] (a) For fiscal year 1992, the compensatory education 
 17.21  revenue for each district equals the formula allowance times the 
 17.22  AFDC pupil units counted according to section 124.17, 
 17.23  subdivision 1b. 
 17.24     (b) For fiscal year 1993 and thereafter, For fiscal year 
 17.25  1996, the maximum compensatory education revenue for each 
 17.26  district equals the formula allowance times the AFDC pupil units 
 17.27  computed according to section 124.17, subdivision 1d. 
 17.28     (c) For fiscal year 1993 and thereafter, the previous 
 17.29  formula compensatory education revenue for each district equals 
 17.30  the formula allowance times the AFDC pupil units computed 
 17.31  according to section 124.17, subdivision 1b.  
 17.32     (d) For fiscal year 1993, the compensatory education 
 17.33  revenue for each district equals the district's previous formula 
 17.34  compensatory revenue plus one-fourth of the difference between 
 17.35  the district's maximum compensatory education revenue and the 
 17.36  district's previous formula compensatory education revenue.  
 18.1      (e) For fiscal year 1994, the compensatory education 
 18.2   revenue for each district equals the district's previous formula 
 18.3   compensatory education revenue plus one-half of the difference 
 18.4   between the district's maximum compensatory education revenue 
 18.5   and the district's previous formula compensatory education 
 18.6   revenue.  
 18.7      (f) For fiscal year 1995, the compensatory education 
 18.8   revenue for each district equals the district's previous formula 
 18.9   compensatory education revenue plus three-fourths of the 
 18.10  difference between the district's maximum compensatory education 
 18.11  revenue and the district's previous formula compensatory 
 18.12  education revenue.  
 18.13     (g) For fiscal year 1996 and thereafter, the compensatory 
 18.14  education revenue for each district equals the district's 
 18.15  maximum compensatory education revenue.  
 18.16     Sec. 24.  Minnesota Statutes 1994, section 124A.22, is 
 18.17  amended by adding a subdivision to read: 
 18.18     Subd. 3a.  [LEARNING GAP REVENUE.] (a) A district is 
 18.19  eligible for learning gap revenue under this subdivision if the 
 18.20  school board of the district has adopted a plan to close the 
 18.21  learning gap and submits the plan to the department of education 
 18.22  by June 1 of the fiscal year preceding the fiscal year for which 
 18.23  the district will receive revenue. 
 18.24     (b) For fiscal year 1997 and thereafter, the learning gap 
 18.25  revenue for an eligible district equals the sum of: 
 18.26     (1) $4 times the actual pupil units for the school year, 
 18.27  and 
 18.28     (2) the formula allowance times the learning gap pupil 
 18.29  units computed according to section 124.17, subdivision 5. 
 18.30     Sec. 25.  Minnesota Statutes 1994, section 124A.22, 
 18.31  subdivision 4, is amended to read: 
 18.32     Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] (a) The 
 18.33  previous formula training and experience revenue for each 
 18.34  district equals the greater of zero or the result of the 
 18.35  following computation:  
 18.36     (1) subtract 1.6 from the training and experience index; 
 19.1      (2) multiply the result in clause (1) by the product of 
 19.2   $700 times the actual pupil units for the school year. 
 19.3      (b) The maximum training and experience revenue for each 
 19.4   district equals the greater of zero or the result of the 
 19.5   following computation:  
 19.6      (1) subtract .8 from the training and experience index; 
 19.7      (2) multiply the result in clause (1) by the product of 
 19.8   $660 times the actual pupil units for the school year.  
 19.9      (c) For fiscal year 1994, the training and experience 
 19.10  revenue for each district equals the district's previous formula 
 19.11  training and experience revenue plus one-half of the difference 
 19.12  between the district's maximum training and experience revenue 
 19.13  and the district's previous formula training and experience 
 19.14  revenue.  
 19.15     (d) For fiscal year 1995, the training and experience 
 19.16  revenue for each district equals the district's previous formula 
 19.17  training and experience revenue plus three-fourths of the 
 19.18  difference between the district's maximum training and 
 19.19  experience revenue and the district's previous formula training 
 19.20  and experience revenue. 
 19.21     (e) For fiscal year 1996 and thereafter, the training and 
 19.22  experience revenue for each district equals the district's 
 19.23  maximum training and experience revenue.  
 19.24     Sec. 26.  Minnesota Statutes 1994, section 124A.22, 
 19.25  subdivision 4a, is amended to read: 
 19.26     Subd. 4a.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE LEVY.] 
 19.27  A district's training and experience levy for fiscal year 1996 
 19.28  equals its training and experience revenue times the lesser of 
 19.29  one or the ratio of the district's adjusted net tax capacity per 
 19.30  actual pupil unit for the year before the year the levy is 
 19.31  certified to the equalizing factor for the school year to which 
 19.32  the levy is attributable. 
 19.33     Sec. 27.  Minnesota Statutes 1994, section 124A.22, 
 19.34  subdivision 4b, is amended to read: 
 19.35     Subd. 4b.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE AID.] 
 19.36  A district's training and experience aid for fiscal year 1996 
 20.1   equals its training and experience revenue minus its training 
 20.2   and experience levy times the ratio of the actual amount levied 
 20.3   to the permitted levy. 
 20.4      Sec. 28.  Minnesota Statutes 1994, section 124A.22, 
 20.5   subdivision 8a, is amended to read: 
 20.6      Subd. 8a.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 20.7   revenue, a district may levy an amount not more than the product 
 20.8   of its supplemental revenue for the school year times the lesser 
 20.9   of one or the ratio of its general education levy to its general 
 20.10  education revenue, excluding training and experience revenue and 
 20.11  supplemental revenue, for the same year. 
 20.12     Sec. 29.  Minnesota Statutes 1994, section 124A.22, 
 20.13  subdivision 9, is amended to read: 
 20.14     Subd. 9.  [SUPPLEMENTAL REVENUE REDUCTION.] A district's 
 20.15  supplemental revenue allowance is reduced by the sum of: 
 20.16     (1) the sum of one-fourth of the difference of:  
 20.17     (i) the sum of the district's training and experience 
 20.18  revenue and compensatory revenue per actual pupil unit for that 
 20.19  fiscal year 1996, and 
 20.20     (ii) the sum of district's training and experience revenue 
 20.21  and compensatory revenue per actual pupil unit for fiscal year 
 20.22  1994; and 
 20.23     (2) the difference between the formula allowance for the 
 20.24  current fiscal year and $3,050 $100.  
 20.25     A district's supplemental revenue allowance may not be less 
 20.26  than zero. 
 20.27     Sec. 30.  Minnesota Statutes 1994, section 124A.23, 
 20.28  subdivision 1, is amended to read: 
 20.29     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 20.30  commissioner shall establish the general education tax rate by 
 20.31  July 1 of each year for levies payable in the following year.  
 20.32  The general education tax capacity rate shall be a rate, rounded 
 20.33  up to the nearest tenth of a percent, that, when applied to the 
 20.34  adjusted net tax capacity for all districts, raises the amount 
 20.35  specified for the general education levy in this subdivision 
 20.36  section 124A.231.  The general education tax rate shall be the 
 21.1   rate that raises $1,044,000,000 for fiscal year 1995 and 
 21.2   $1,054,000,000 for fiscal year 1996 and later fiscal years.  The 
 21.3   general education tax rate may not be changed due to changes or 
 21.4   corrections made to a district's adjusted net tax capacity after 
 21.5   the tax rate has been established.  
 21.6      Sec. 31.  Minnesota Statutes 1994, section 124A.23, 
 21.7   subdivision 4, is amended to read: 
 21.8      Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 21.9   education aid is the sum of the following amounts:  
 21.10     (1) the product of (i) the difference between the general 
 21.11  education revenue, excluding training and experience revenue and 
 21.12  supplemental revenue, and the general education levy, times (ii) 
 21.13  the ratio of the actual amount levied to the permitted levy; 
 21.14     (2) training and experience aid according to section 
 21.15  124A.22, subdivision 4b; 
 21.16     (3) supplemental aid according to section 124.214, 
 21.17  subdivision 2; 
 21.18     (4) (3) shared time aid according to section 124A.02, 
 21.19  subdivision 21; and 
 21.20     (5) (4) referendum aid according to section 124A.03. 
 21.21     Sec. 32.  Minnesota Statutes 1994, section 124A.23, 
 21.22  subdivision 5, is amended to read: 
 21.23     Subd. 5.  [USES OF REVENUE.] Except as provided in section 
 21.24  124A.225, General education revenue may be used during the 
 21.25  regular school year and the summer for general and special 
 21.26  school purposes. 
 21.27     Sec. 33.  [124A.231] [STATE DETERMINED UNIFORM EDUCATION 
 21.28  LEVY.] 
 21.29     Subdivision 1.  [DEFINITION.] The state determined uniform 
 21.30  education levy is the sum of the following: 
 21.31     (a) the general education levy according to section 
 21.32  124A.23, subdivision 2; 
 21.33     (b) the basic transportation levy according to section 
 21.34  124.226, subdivision 1; 
 21.35     (c) the capital expenditure facilities levy according to 
 21.36  section 124.243, subdivision 3; and 
 22.1      (d) the capital expenditure equipment levy according to 
 22.2   section 124.244, subdivision 2. 
 22.3      Subd. 2.  [AMOUNT.] The state determined uniform education 
 22.4   levy equals $1,386,500,000 for fiscal year 1997 and later years. 
 22.5      Subd. 3.  [LEVY ALLOCATION.] The state determined uniform 
 22.6   education levy is allocated among levy categories as follows: 
 22.7      (a) the general education levy equals 90.36 percent of the 
 22.8   amount specified in subdivision 2; 
 22.9      (b) the basic transportation levy equals 4.87 percent of 
 22.10  the amount specified in subdivision 2; 
 22.11     (c) the capital expenditure facilities levy equals 3.10 
 22.12  percent of the amount specified in subdivision 2; and 
 22.13     (d) the capital expenditure equipment levy equals 1.67 
 22.14  percent of the amount specified in subdivision 2. 
 22.15     Sec. 34.  Minnesota Statutes 1994, section 124A.24, is 
 22.16  amended to read: 
 22.17     124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
 22.18     If a district's general education levy is determined 
 22.19  according to section 124A.23, subdivision 3, an amount must be 
 22.20  deducted from state aid authorized in this chapter and chapters 
 22.21  124 and 124B, receivable for the same school year, and from 
 22.22  other state payments receivable for the same school year 
 22.23  authorized in chapter 273.  The aid in section 124.646 must not 
 22.24  be reduced. 
 22.25     The amount of the deduction equals the difference between: 
 22.26     (1) the general education tax rate, according to section 
 22.27  124A.23, times the district's adjusted net tax capacity used to 
 22.28  determine the general education aid for the same school year; 
 22.29  and 
 22.30     (2) the district's general education revenue, excluding 
 22.31  training and experience revenue and supplemental revenue, for 
 22.32  the same school year, according to section 124A.22. 
 22.33     Sec. 35.  [124A.281] [LEARNING GAP REVENUE.] 
 22.34     Subdivision 1.  [USE OF THE REVENUE.] The learning gap 
 22.35  revenue under section 124A.22, subdivision 3a, must be used to 
 22.36  meet the educational needs of pupils whose educational 
 23.1   achievement is below the level that is appropriate for pupils of 
 23.2   their age.  Those needs may be met by providing at least some of 
 23.3   the following: 
 23.4      (1) remedial instruction in reading, language arts, and 
 23.5   mathematics to improve the achievement level of these pupils; 
 23.6      (2) additional teachers and teacher aides to provide more 
 23.7   individualized instruction to these pupils; 
 23.8      (3) summer programs that enable these pupils to improve 
 23.9   their achievement or that reemphasize material taught during the 
 23.10  regular school year; 
 23.11     (4) in-service education for teachers, teacher aides, 
 23.12  principals, and other personnel to improve their ability to 
 23.13  recognize these pupils and provide appropriate responses to the 
 23.14  pupils' needs; 
 23.15     (5) instructional material for these pupils including:  
 23.16  textbooks, workbooks, periodicals, pamphlets, photographs, 
 23.17  reproductions, filmstrips, prepared slides, prerecorded video 
 23.18  programs, sound recordings, desk charts, games, study prints and 
 23.19  pictures, desk maps, models, learning kits, blocks and cubes, 
 23.20  flashcards, instructional computer software programs, pencils, 
 23.21  pens, crayons, notebooks, duplicating fluids, and papers; 
 23.22     (6) programs to reduce truancy, encourage completion of 
 23.23  high school, enhance self-concept, provide health services, 
 23.24  provide nutrition services, provide a safe and secure learning 
 23.25  environment, provide coordination for pupils receiving services 
 23.26  from other governmental agencies, provide psychological services 
 23.27  to determine the level of social, emotional, cognitive, and 
 23.28  intellectual development, and provide counseling services, 
 23.29  guidance services, and social work services; 
 23.30     (7) bilingual programs, bicultural programs, and programs 
 23.31  for pupils of limited English proficiency; and 
 23.32     (8) assurance of mastery programs according to section 
 23.33  124.312. 
 23.34     Subd. 2.  [BUILDING ALLOCATION.] A district must consider 
 23.35  the concentration of children from low-income families and 
 23.36  children with limited English proficiency in each school 
 24.1   building in the district when allocating learning gap revenue. 
 24.2      Subd. 3.  [SEPARATE ACCOUNTS.] Each district that receives 
 24.3   learning gap revenue shall maintain separate accounts to 
 24.4   identify expenditures for salaries and programs related to this 
 24.5   revenue. 
 24.6      Subd. 4.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 24.7   that receives learning gap revenue shall submit a report 
 24.8   identifying the expenditures it incurred in providing services 
 24.9   to pupils described in subdivision 1.  The report must conform 
 24.10  to uniform financial and reporting standards established for 
 24.11  this purpose. 
 24.12     Subd. 5.  [COMMUNITY LEARNING PLAN.] (a) Districts must 
 24.13  develop a community learning plan to address how progress toward 
 24.14  closing the learning gap between learners with significant 
 24.15  learning needs and their peers will be achieved and measured.  
 24.16  The revenue to support this plan will include federal Title I 
 24.17  revenue as well as other revenue at the discretion of the 
 24.18  district.  Districts receiving integration grants to implement 
 24.19  desegregation plans mandated by the state board must incorporate 
 24.20  the requirements of this program into their community learning 
 24.21  plan.  The district must include representation from other 
 24.22  local, city, county, and community agencies in the development 
 24.23  of this plan.  The plan must include at least the following: 
 24.24     (1) district criteria which identify learners to be served 
 24.25  with revenue under this section; 
 24.26     (2) the current achievement levels at least in the areas of 
 24.27  reading and mathematics; 
 24.28     (3) the measurable results which the district expects to 
 24.29  achieve over a two year period of time through the 
 24.30  implementation of the community learning plan; 
 24.31     (4) the measurement procedures to determine progress toward 
 24.32  achieving results; 
 24.33     (5) the process as to how the results will be reported to 
 24.34  the public; 
 24.35     (6) how other local agencies will assist in students 
 24.36  attaining the learning results identified in clause (3) and the 
 25.1   resources which those agencies will commit to this effort; 
 25.2      (7) the expectations being placed on students and families 
 25.3   in terms of determining how they will collaborate to better 
 25.4   assure that students will meet the learning results identified 
 25.5   in clause (3); 
 25.6      (8) the local, state, and federal revenue being used to 
 25.7   carry out this program; and 
 25.8      (9) other requirements determined by the commissioner to be 
 25.9   necessary in order for the community learning plan to meet the 
 25.10  federal requirements of federal programs included in the plan. 
 25.11     (b) Districts must annually provide the commissioner with 
 25.12  data regarding their success at closing the learning gap.  
 25.13  Districts required by the state board of education to have 
 25.14  desegregation plans must demonstrate progress toward closing the 
 25.15  learning gap between learners of color and their peers. 
 25.16     (c) Beginning after the 1996-1997 school year, if districts 
 25.17  required to have a desegregation plan do not make reasonable 
 25.18  progress toward closing the learning gap between learners of 
 25.19  color and their peers, the following procedure shall be followed:
 25.20     (1) within 60 days after receipt of the annual data report, 
 25.21  the commissioner shall inform the district whether sufficient 
 25.22  progress toward closing the learning gap is being made for each 
 25.23  site.  Progress shall be determined based on the district 
 25.24  targets in their plan; 
 25.25     (2) if satisfactory progress has not been achieved, the 
 25.26  commissioner shall provide assistance to the district and to the 
 25.27  sites; and 
 25.28     (3) if after one year, satisfactory progress has not been 
 25.29  achieved, the commissioner shall either continue to provide 
 25.30  assistance to the district for a defined period of time or 
 25.31  authorize the local school board to reconstitute the sites.  
 25.32  Notwithstanding the provisions of local contracts, the local 
 25.33  school board, at its discretion, may develop a plan for 
 25.34  reconstitution of the sites and submit that plan to the 
 25.35  commissioner for approval. 
 25.36     Sec. 36.  Minnesota Statutes 1994, section 275.065, 
 26.1   subdivision 1, is amended to read: 
 26.2      Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 26.3   law or charter to the contrary, on or before September 15, each 
 26.4   taxing authority, other than a school district, shall adopt a 
 26.5   proposed budget and each taxing authority shall certify to the 
 26.6   county auditor the proposed or, in the case of a town, the final 
 26.7   property tax levy for taxes payable in the following year.  
 26.8      (b) On or before September 30, each school district may 
 26.9   certify to the county auditor the proposed property tax levy for 
 26.10  taxes payable in the following year.  If a school district does 
 26.11  not certify a proposed property tax levy to the county auditor 
 26.12  by September 30, the school district shall be deemed to have 
 26.13  certified a proposed property tax levy equal to the maximum levy 
 26.14  limitation certified by the commissioner of education to the 
 26.15  county auditor according to section 124.918, subdivision 1. 
 26.16     (c) If the board of estimate and taxation or any similar 
 26.17  board that establishes maximum tax levies for taxing 
 26.18  jurisdictions within a first class city certifies the maximum 
 26.19  property tax levies for funds under its jurisdiction by charter 
 26.20  to the county auditor by September 15, the city shall be deemed 
 26.21  to have certified its levies for those taxing jurisdictions. 
 26.22     (d) For purposes of this section, "taxing authority" 
 26.23  includes all home rule and statutory cities, towns, counties, 
 26.24  school districts, and special taxing districts as defined in 
 26.25  section 275.066.  Intermediate school districts that levy a tax 
 26.26  under chapter 124 or 136D, joint powers boards established under 
 26.27  sections 124.491 to 124.495, and common school districts No. 
 26.28  323, Franconia, and No. 815, Prinsburg, are also special taxing 
 26.29  districts for purposes of this section.  
 26.30     Sec. 37.  Minnesota Statutes 1994, section 275.065, 
 26.31  subdivision 3, is amended to read: 
 26.32     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 26.33  county auditor shall prepare and the county treasurer shall 
 26.34  deliver after November 10 and on or before November 24 each 
 26.35  year, by first class mail to each taxpayer at the address listed 
 26.36  on the county's current year's assessment roll, a notice of 
 27.1   proposed property taxes and, in the case of a town, final 
 27.2   property taxes.  
 27.3      (b) The commissioner of revenue shall prescribe the form of 
 27.4   the notice. 
 27.5      (c) The notice must inform taxpayers that it contains the 
 27.6   amount of property taxes each taxing authority other than a town 
 27.7   proposes to collect for taxes payable the following year and, 
 27.8   for a town, the amount of its final levy.  It must clearly state 
 27.9   that each taxing authority, including regional library districts 
 27.10  established under section 134.201, and including the 
 27.11  metropolitan taxing districts as defined in paragraph (i), but 
 27.12  excluding all other special taxing districts and towns, will 
 27.13  hold a public meeting to receive public testimony on the 
 27.14  proposed budget and proposed or final property tax levy, or, in 
 27.15  case of a school district, on the current budget and proposed 
 27.16  property tax levy.  It must clearly state the time and place of 
 27.17  each taxing authority's meeting and an address where comments 
 27.18  will be received by mail.  The notice must include the estimated 
 27.19  percentage increase in Minnesota personal income, provided by 
 27.20  the commissioner of revenue under section 275.064, in a way to 
 27.21  facilitate comparison of the proposed budget and levy increases 
 27.22  with the increase in personal income.  For 1993, the notice must 
 27.23  clearly state that each taxing authority holding a public 
 27.24  meeting will describe the increases or decreases of the total 
 27.25  budget, including employee and independent contractor 
 27.26  compensation in the prior year, current year, and the proposed 
 27.27  budget year.  
 27.28     (d) The notice must state for each parcel: 
 27.29     (1) the market value of the property as determined under 
 27.30  section 273.11, and used for computing property taxes payable in 
 27.31  the following year and for taxes payable in the current year; 
 27.32  and, in the case of residential property, whether the property 
 27.33  is classified as homestead or nonhomestead.  The notice must 
 27.34  clearly inform taxpayers of the years to which the market values 
 27.35  apply and that the values are final values; 
 27.36     (2) by county, city or town, school district excess 
 28.1   referenda levy, state determined uniform education levy as 
 28.2   defined in section 124A.231, remaining school district levy, the 
 28.3   sum of the school district levies, regional library district, if 
 28.4   in existence, the total of the metropolitan special taxing 
 28.5   districts as defined in paragraph (i) and the sum of the 
 28.6   remaining special taxing districts, and as a total of the taxing 
 28.7   authorities, including all special taxing districts, the 
 28.8   proposed or, for a town, final net tax on the property for taxes 
 28.9   payable the following year and the actual tax for taxes payable 
 28.10  the current year.  For the purposes of this subdivision, "school 
 28.11  district excess referenda levy" means school district taxes for 
 28.12  operating purposes approved at referendums, including those 
 28.13  taxes based on net tax capacity as well as those based on market 
 28.14  value.  "School district excess referenda levy" does not include 
 28.15  school district taxes for capital expenditures approved at 
 28.16  referendums or school district taxes to pay for the debt service 
 28.17  on bonds approved at referenda.  In the case of the city of 
 28.18  Minneapolis, the levy for the Minneapolis library board and the 
 28.19  levy for Minneapolis park and recreation shall be listed 
 28.20  separately from the remaining amount of the city's levy.  In the 
 28.21  case of a parcel where tax increment or the fiscal disparities 
 28.22  areawide tax applies, the proposed tax levy on the captured 
 28.23  value or the proposed tax levy on the tax capacity subject to 
 28.24  the areawide tax must each be stated separately and not included 
 28.25  in the sum of the special taxing districts; and 
 28.26     (3) the increase or decrease in the amounts in clause (2) 
 28.27  from taxes payable in the current year to proposed or, for a 
 28.28  town, final taxes payable the following year, expressed as a 
 28.29  dollar amount and as a percentage. 
 28.30     (e) The notice must clearly state that the proposed or 
 28.31  final taxes do not include the following: 
 28.32     (1) special assessments; 
 28.33     (2) levies approved by the voters after the date the 
 28.34  proposed taxes are certified, including bond referenda, school 
 28.35  district levy referenda, and levy limit increase referenda; 
 28.36     (3) amounts necessary to pay cleanup or other costs due to 
 29.1   a natural disaster occurring after the date the proposed taxes 
 29.2   are certified; 
 29.3      (4) amounts necessary to pay tort judgments against the 
 29.4   taxing authority that become final after the date the proposed 
 29.5   taxes are certified; and 
 29.6      (5) the contamination tax imposed on properties which 
 29.7   received market value reductions for contamination. 
 29.8      (f) Except as provided in subdivision 7, failure of the 
 29.9   county auditor to prepare or the county treasurer to deliver the 
 29.10  notice as required in this section does not invalidate the 
 29.11  proposed or final tax levy or the taxes payable pursuant to the 
 29.12  tax levy. 
 29.13     (g) If the notice the taxpayer receives under this section 
 29.14  lists the property as nonhomestead and the homeowner provides 
 29.15  satisfactory documentation to the county assessor that the 
 29.16  property is owned and has been used as the owner's homestead 
 29.17  prior to June 1 of that year, the assessor shall reclassify the 
 29.18  property to homestead for taxes payable in the following year. 
 29.19     (h) In the case of class 4 residential property used as a 
 29.20  residence for lease or rental periods of 30 days or more, the 
 29.21  taxpayer must either: 
 29.22     (1) mail or deliver a copy of the notice of proposed 
 29.23  property taxes to each tenant, renter, or lessee; or 
 29.24     (2) post a copy of the notice in a conspicuous place on the 
 29.25  premises of the property.  
 29.26     (i) For purposes of this subdivision, subdivisions 5a and 
 29.27  6, "metropolitan special taxing districts" means the following 
 29.28  taxing districts in the seven-county metropolitan area that levy 
 29.29  a property tax for any of the specified purposes listed below: 
 29.30     (1) metropolitan council under section 473.132, 473.167, 
 29.31  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 29.32     (2) metropolitan airports commission under section 473.667, 
 29.33  473.671, or 473.672; and 
 29.34     (3) metropolitan mosquito control commission under section 
 29.35  473.711. 
 29.36     For purposes of this section, any levies made by the 
 30.1   regional rail authorities in the county of Anoka, Carver, 
 30.2   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 30.3   398A shall be included with the appropriate county's levy and 
 30.4   shall be discussed at that county's public hearing. 
 30.5      The notice must be mailed or posted by the taxpayer by 
 30.6   November 27 or within three days of receipt of the notice, 
 30.7   whichever is later.  A taxpayer may notify the county treasurer 
 30.8   of the address of the taxpayer, agent, caretaker, or manager of 
 30.9   the premises to which the notice must be mailed in order to 
 30.10  fulfill the requirements of this paragraph. 
 30.11     Sec. 38.  Minnesota Statutes 1994, section 276.04, 
 30.12  subdivision 2, is amended to read: 
 30.13     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 30.14  shall provide for the printing of the tax statements.  The 
 30.15  commissioner of revenue shall prescribe the form of the property 
 30.16  tax statement and its contents.  The statement must contain a 
 30.17  tabulated statement of the dollar amount due to each taxing 
 30.18  authority from the parcel of real property for which a 
 30.19  particular tax statement is prepared.  The dollar amounts due 
 30.20  the county, township or municipality, the total of the 
 30.21  metropolitan special taxing districts as defined in section 
 30.22  275.065, subdivision 3, paragraph (i), school district excess 
 30.23  referenda levy, state determined uniform education levy as 
 30.24  defined in section 124A.231, remaining school district levy, the 
 30.25  sum of the school district levies, and the total of other voter 
 30.26  approved referenda levies based on market value under section 
 30.27  275.61 must be separately stated.  The amounts due all other 
 30.28  special taxing districts, if any, may be aggregated.  For the 
 30.29  purposes of this subdivision, "school district excess referenda 
 30.30  levy" means school district taxes for operating purposes 
 30.31  approved at referenda, including those taxes based on market 
 30.32  value.  "School district excess referenda levy" does not include 
 30.33  school district taxes for capital expenditures approved at 
 30.34  referendums or school district taxes to pay for the debt service 
 30.35  on bonds approved at referenda.  The amount of the tax on 
 30.36  contamination value imposed under sections 270.91 to 270.98, if 
 31.1   any, must also be separately stated.  The dollar amounts, 
 31.2   including the dollar amount of any special assessments, may be 
 31.3   rounded to the nearest even whole dollar.  For purposes of this 
 31.4   section whole odd-numbered dollars may be adjusted to the next 
 31.5   higher even-numbered dollar.  The amount of market value 
 31.6   excluded under section 273.11, subdivision 16, if any, must also 
 31.7   be listed on the tax statement.  The statement shall include the 
 31.8   following sentence, printed in upper case letters in boldface 
 31.9   print:  "THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY 
 31.10  TAX REVENUES.  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX 
 31.11  BY PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF 
 31.12  GOVERNMENT."  
 31.13     (b) The property tax statements for manufactured homes and 
 31.14  sectional structures taxed as personal property shall contain 
 31.15  the same information that is required on the tax statements for 
 31.16  real property.  
 31.17     (c) Real and personal property tax statements must contain 
 31.18  the following information in the order given in this paragraph.  
 31.19  The information must contain the current year tax information in 
 31.20  the right column with the corresponding information for the 
 31.21  previous year in a column on the left: 
 31.22     (1) the property's estimated market value under section 
 31.23  273.11, subdivision 1; 
 31.24     (2) the property's taxable market value after reductions 
 31.25  under section 273.11, subdivisions 1a and 16; 
 31.26     (3) the property's gross tax, calculated by multiplying the 
 31.27  property's gross tax capacity times the total local tax rate and 
 31.28  adding to the result the sum of the aids enumerated in clause 
 31.29  (3); 
 31.30     (4) a total of the following aids: 
 31.31     (i) education aids payable under chapters 124 and 124A; 
 31.32     (ii) local government aids for cities, towns, and counties 
 31.33  under chapter 477A; and 
 31.34     (iii) disparity reduction aid under section 273.1398; 
 31.35     (5) for homestead residential and agricultural properties, 
 31.36  the homestead and agricultural credit aid apportioned to the 
 32.1   property.  This amount is obtained by multiplying the total 
 32.2   local tax rate by the difference between the property's gross 
 32.3   and net tax capacities under section 273.13.  This amount must 
 32.4   be separately stated and identified as "homestead and 
 32.5   agricultural credit."  For purposes of comparison with the 
 32.6   previous year's amount for the statement for taxes payable in 
 32.7   1990, the statement must show the homestead credit for taxes 
 32.8   payable in 1989 under section 273.13, and the agricultural 
 32.9   credit under section 273.132 for taxes payable in 1989; 
 32.10     (6) any credits received under sections 273.119; 273.123; 
 32.11  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 32.12  473H.10, except that the amount of credit received under section 
 32.13  273.135 must be separately stated and identified as "taconite 
 32.14  tax relief"; and 
 32.15     (7) the net tax payable in the manner required in paragraph 
 32.16  (a).  
 32.17     The commissioner of revenue shall certify to the county 
 32.18  auditor the actual or estimated aids enumerated in clauses (3) 
 32.19  and (4) that local governments will receive in the following 
 32.20  year.  In the case of a county containing a city of the first 
 32.21  class, for taxes levied in 1991, and for all counties for taxes 
 32.22  levied in 1992 and thereafter, the commissioner must certify 
 32.23  this amount by September 1. 
 32.24     Sec. 39.  [APPROPRIATIONS.] 
 32.25     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 32.26  indicated in this section are appropriated from the general fund 
 32.27  to the department of education for the fiscal years designated.  
 32.28     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 32.29  general and supplemental education aid:  
 32.30       $1,932,836,000     .....     1996
 32.31       $2,109,272,000     .....     1997
 32.32     The 1996 appropriation includes $302,683,000 for 1995 and 
 32.33  $1,630,153,000 for 1996.  
 32.34     The 1997 appropriation includes $314,205,000 for 1996 and 
 32.35  $1,795,067,000 for 1997.  
 32.36     Sec. 40.  [REPEALER.] 
 33.1      (a) Minnesota Statutes 1994, section 124A.27, is repealed. 
 33.2      (b) Minnesota Statutes 1994, sections 124.17, subdivision 
 33.3   1b; 124A.04, subdivision 1; 124A.22, subdivision 2a; 124A.225; 
 33.4   124A.29; and 124A.291, are repealed. 
 33.5      (c) Minnesota Statutes 1994, sections 124.26; 124A.28; and 
 33.6   124A.292, are repealed. 
 33.7      Sec. 41.  [EFFECTIVE DATE.] 
 33.8      (a) Section 9 is effective July 1, 1996. 
 33.9      (b) Section 40, paragraph (a), is effective the day 
 33.10  following final enactment. 
 33.11     (c) Section 40, paragraph (b), is effective July 1, 1995. 
 33.12     (d) Section 40, paragraph (c), is effective July 1, 1996. 
 33.13                             ARTICLE 2 
 33.14                           TRANSPORTATION 
 33.15     Section 1.  Minnesota Statutes 1994, section 120.064, 
 33.16  subdivision 15, is amended to read: 
 33.17     Subd. 15.  [TRANSPORTATION.] (a) By July 1 of each year, an 
 33.18  outcome-based school shall notify the district in which the 
 33.19  school is located and the department of education if it will 
 33.20  provide transportation for pupils enrolled at the school for the 
 33.21  fiscal year. 
 33.22     (b) If an outcome-based school elects to provide 
 33.23  transportation for pupils, the transportation shall be provided 
 33.24  by the outcome-based school within the district in which the 
 33.25  outcome-based school is located.  The state shall pay 
 33.26  transportation aid to the outcome-based school according to 
 33.27  section 124.248, subdivision 1a. 
 33.28     For pupils who reside outside the district in which the 
 33.29  outcome-based school is located, the outcome-based school is not 
 33.30  required to provide or pay for transportation between the 
 33.31  pupil's residence and the border of the district in which the 
 33.32  outcome-based school is located.  A parent may be reimbursed by 
 33.33  the outcome-based school for costs of transportation from the 
 33.34  pupil's residence to the border of the district in which the 
 33.35  outcome-based school is located if the pupil is from a family 
 33.36  whose income is at or below the poverty level, as determined by 
 34.1   the federal government.  The reimbursement may not exceed the 
 34.2   pupil's actual cost of transportation or 15 cents per mile 
 34.3   traveled, whichever is less.  Reimbursement may not be paid for 
 34.4   more than 250 miles per week.  
 34.5      At the time a pupil enrolls in an outcome-based school, the 
 34.6   outcome-based school shall provide the parent or guardian with 
 34.7   information regarding the transportation.  
 34.8      (c) If an outcome-based school does not elect to provide 
 34.9   transportation, transportation for pupils enrolled at a the 
 34.10  school shall be provided by the district in which the school is 
 34.11  located, according to sections 120.062, subdivision 9, and 
 34.12  123.39, subdivision 6, for a pupil residing in the same district 
 34.13  in which the outcome-based school is located.  Transportation 
 34.14  may be provided by the district in which the school is located, 
 34.15  according to sections 120.062, subdivision 9, and 123.39, 
 34.16  subdivision 6, for a pupil residing in a different district. 
 34.17     Sec. 2.  Minnesota Statutes 1994, section 124.223, 
 34.18  subdivision 7, is amended to read: 
 34.19     Subd. 7.  [FARIBAULT STATE ACADEMIES TRANSPORTATION TO AND 
 34.20  FROM BOARD AND LODGING FACILITIES.] State transportation aid is 
 34.21  authorized for transportation for residents resident pupils with 
 34.22  disabilities to and from the Minnesota state academy for the 
 34.23  deaf or the Minnesota state academy for the blind board and 
 34.24  lodging facilities when the pupil is boarded and lodged for 
 34.25  educational purposes. 
 34.26     Sec. 3.  Minnesota Statutes 1994, section 124.225, 
 34.27  subdivision 1, is amended to read: 
 34.28     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 34.29  section, the terms defined in this subdivision have the meanings 
 34.30  given to them. 
 34.31     (a) "FTE" means a full-time equivalent pupil whose 
 34.32  transportation is authorized for aid purposes by section 124.223.
 34.33     (b) "Authorized cost for regular transportation" means the 
 34.34  sum of: 
 34.35     (1) all expenditures for transportation in the regular 
 34.36  category, as defined in paragraph (c), clause (1), for which aid 
 35.1   is authorized in section 124.223, plus 
 35.2      (2) an amount equal to one year's depreciation on the 
 35.3   district's school bus fleet and mobile units computed on a 
 35.4   straight line basis at the rate of 15 percent per year for 
 35.5   districts operating a program under section 121.585 for grades 1 
 35.6   to 12 for all students in the district and 12-1/2 percent per 
 35.7   year for other districts of the cost of the fleet, plus 
 35.8      (3) an amount equal to one year's depreciation on district 
 35.9   school buses reconditioned by the department of corrections 
 35.10  computed on a straight line basis at the rate of 33-1/3 percent 
 35.11  per year of the cost to the district of the reconditioning, plus 
 35.12     (4) an amount equal to one year's depreciation on the 
 35.13  district's type three school buses, as defined in section 
 35.14  169.01, subdivision 6, clause (5), which were purchased after 
 35.15  July 1, 1982, for authorized transportation of pupils, with the 
 35.16  prior approval of the commissioner, computed on a straight line 
 35.17  basis at the rate of 20 percent per year of the cost of the type 
 35.18  three school buses.  
 35.19     (c) "Transportation category" means a category of 
 35.20  transportation service provided to pupils as follows:  
 35.21     (1) Regular transportation is transportation services 
 35.22  provided during the regular school year under section 124.223, 
 35.23  subdivisions 1 and 2, excluding the following transportation 
 35.24  services provided under section 124.223, subdivision 1:  
 35.25  transportation between schools; noon transportation to and from 
 35.26  school for kindergarten pupils attending half-day sessions; 
 35.27  transportation of pupils to and from schools located outside 
 35.28  their normal attendance areas under the provisions of a plan for 
 35.29  desegregation mandated by the state board of education or under 
 35.30  court order; and transportation of elementary pupils to and from 
 35.31  school within a mobility zone. 
 35.32     (2) Nonregular transportation is transportation services 
 35.33  provided under section 124.223, subdivision 1, that are excluded 
 35.34  from the regular category and transportation services provided 
 35.35  under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
 35.36     (3) Excess transportation is transportation to and from 
 36.1   school during the regular school year for secondary pupils 
 36.2   residing at least one mile but less than two miles from the 
 36.3   public school they could attend or from the nonpublic school 
 36.4   actually attended, and transportation to and from school for 
 36.5   pupils residing less than one mile from school who are 
 36.6   transported because of extraordinary traffic, drug, or crime 
 36.7   hazards. 
 36.8      (4) Desegregation transportation is transportation within 
 36.9   and outside of the district during the regular school year of 
 36.10  pupils to and from schools located outside their normal 
 36.11  attendance areas under a plan for desegregation mandated by the 
 36.12  state board or under court order.  
 36.13     (5) Handicapped transportation is transportation provided 
 36.14  under section 124.223, subdivision 4, for pupils with a 
 36.15  disability between home or a respite care facility and school or 
 36.16  other buildings where special instruction required by sections 
 36.17  120.17 and 120.1701 is provided. 
 36.18     (6) Late activity transportation is late transportation 
 36.19  home from school, between schools within a district, or between 
 36.20  schools in one or more districts that have an agreement under 
 36.21  sections 122.241 to 122.248, 122.535, 122.541, or 124.494, for 
 36.22  pupils involved in after-school activities.  A district that 
 36.23  provides late transportation home from school for students 
 36.24  participating in athletic activities must provide late 
 36.25  transportation home from school for students participating in 
 36.26  any academic-related activities provided by the district. 
 36.27     (d) "Mobile unit" means a vehicle or trailer designed to 
 36.28  provide facilities for educational programs and services, 
 36.29  including diagnostic testing, guidance and counseling services, 
 36.30  and health services.  A mobile unit located off nonpublic school 
 36.31  premises is a neutral site as defined in section 123.932, 
 36.32  subdivision 9. 
 36.33     (e) "Current year" means the school year for which aid will 
 36.34  be paid.  
 36.35     (f) "Base year" means the second school year preceding the 
 36.36  school year for which aid will be paid.  
 37.1      (g) "Base cost" means the ratio of: 
 37.2      (1) the sum of the authorized cost in the base year for 
 37.3   regular transportation as defined in paragraph (b) plus the 
 37.4   actual cost in the base year for excess transportation as 
 37.5   defined in paragraph (c); 
 37.6      (2) to the sum of the number of weighted FTE's in the 
 37.7   regular and excess categories in the base year. 
 37.8      (h) "Pupil weighting factor" for the excess transportation 
 37.9   category for a school district means the lesser of one, or the 
 37.10  result of the following computation: 
 37.11     (1) Divide the square mile area of the school district by 
 37.12  the number of FTE's in the regular and excess categories in the 
 37.13  base year. 
 37.14     (2) Raise the result in clause (1) to the one-fifth power. 
 37.15     (3) Divide four-tenths by the result in clause (2). 
 37.16     The pupil weighting factor for the regular transportation 
 37.17  category is one.  
 37.18     (i) "Weighted FTE's"  means the number of FTE's in each 
 37.19  transportation category multiplied by the pupil weighting factor 
 37.20  for that category. 
 37.21     (j) "Sparsity index" for a school district means the 
 37.22  greater of .005 or the ratio of the square mile area of the 
 37.23  school district to the sum of the number of weighted FTE's by 
 37.24  the district in the regular and excess categories in the base 
 37.25  year. 
 37.26     (k) "Density index" for a school district means the greater 
 37.27  of one or the result obtained by subtracting the product of the 
 37.28  district's sparsity index times 20 from two. 
 37.29     (l) "Contract transportation index" for a school district 
 37.30  means the greater of one or the result of the following 
 37.31  computation: 
 37.32     (1) Multiply the district's sparsity index by 20. 
 37.33     (2) Select the lesser of one or the result in clause (1). 
 37.34     (3) Multiply the district's percentage of regular FTE's in 
 37.35  the current year using vehicles that are not owned by the school 
 37.36  district by the result in clause (2). 
 38.1      (m) "Adjusted predicted base cost" means the predicted base 
 38.2   cost as computed in subdivision 3a as adjusted under subdivision 
 38.3   7a. 
 38.4      (n) "Regular transportation allowance" means the adjusted 
 38.5   predicted base cost, inflated and adjusted under subdivision 7b. 
 38.6      Sec. 4.  Minnesota Statutes 1994, section 124.225, 
 38.7   subdivision 3a, is amended to read: 
 38.8      Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
 38.9   base cost equals the result of the following computation:  
 38.10     (a) Multiply the transportation formula allowance by the 
 38.11  district's sparsity index raised to the one-fourth power.  The 
 38.12  transportation formula allowance is $447 $450 for the 
 38.13  1991-1992 1993-1994 base year and $463 $450 for the 1992-1993 
 38.14  1994-1995 base year.  
 38.15     (b) Multiply the result in paragraph (a) by the district's 
 38.16  density index raised to the 35/100 power.  
 38.17     (c) Multiply the result in paragraph (b) by the district's 
 38.18  contract transportation index raised to the 1/20 power.  
 38.19     Sec. 5.  Minnesota Statutes 1994, section 124.225, 
 38.20  subdivision 7b, is amended to read: 
 38.21     Subd. 7b.  [INFLATION FACTORS.] (a) The adjusted predicted 
 38.22  base cost determined for a district under subdivision 7a for the 
 38.23  base year must be increased by 2.35 zero percent to determine 
 38.24  the district's regular transportation allowance for the 
 38.25  1993-1994 1995-1996 school year and by 3.425 zero percent to 
 38.26  determine the district's regular transportation allowance for 
 38.27  the 1994-1995 1996-1997 school year, but. 
 38.28     (b) Notwithstanding paragraph (a), the regular 
 38.29  transportation allowance for a district for the 1995-1996 school 
 38.30  year and the 1996-1997 school year cannot be less than the 
 38.31  district's minimum regular transportation allowance according to 
 38.32  Minnesota Statutes 1990, section 124.225, subdivision 1, 
 38.33  paragraph (t). 
 38.34     (c) Notwithstanding paragraph (a), the regular 
 38.35  transportation allowance for a district for the 1997-1998 school 
 38.36  year and later cannot be less than the district's regular 
 39.1   transportation allowance for the 1996-1997 school year. 
 39.2      Sec. 6.  Minnesota Statutes 1994, section 124.225, 
 39.3   subdivision 7d, is amended to read: 
 39.4      Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
 39.5   for each district equals the sum of the district's regular 
 39.6   transportation revenue and the district's nonregular 
 39.7   transportation revenue. 
 39.8      (a) The regular transportation revenue for each district 
 39.9   equals the district's regular transportation allowance according 
 39.10  to subdivision 7b times the sum of the number of FTE's by the 
 39.11  district in the regular, desegregation, and handicapped 
 39.12  categories in the current school year. 
 39.13     (b) For the 1992-1993 and later school years 1995-1996 
 39.14  school year, the nonregular transportation revenue for each 
 39.15  district equals the lesser of the district's actual cost in the 
 39.16  current school year for nonregular transportation services or 
 39.17  the product of the district's actual cost in the base year for 
 39.18  nonregular transportation services as defined for the current 
 39.19  year in subdivision 1, paragraph (c), times the ratio of the 
 39.20  district's average daily membership for the current year to the 
 39.21  district's average daily membership for the base year according 
 39.22  to section 124.17, subdivision 2, times the nonregular 
 39.23  transportation inflation factor for the current year, minus the 
 39.24  amount of regular transportation revenue attributable to FTE's 
 39.25  in the desegregation and handicapped categories in the current 
 39.26  school year, plus the excess nonregular transportation revenue 
 39.27  for the current year according to subdivision 7e.  The 
 39.28  nonregular transportation inflation factor is 1.0435 1.0 for the 
 39.29  1993-1994 1995-1996 school year and 1.03425 1.0 for the 
 39.30  1994-1995 1996-1997 school year.  
 39.31     (c) For the 1996-1997 school year, the nonregular 
 39.32  transportation revenue for each district equals the lesser of: 
 39.33     (1) the district's actual cost in the current school year 
 39.34  for nonregular transportation services, excess transportation 
 39.35  services, and late activity transportation services; or 
 39.36     (2) the product of the district's actual cost in the base 
 40.1   year for nonregular transportation services as defined for the 
 40.2   current year in subdivision 1, paragraph (c), 
 40.3   times the ratio of the district's average daily membership for 
 40.4   the current year to the district's average daily membership for 
 40.5   the base year according to section 124.17, subdivision 2, times 
 40.6   the nonregular transportation inflation factor for the current 
 40.7   year, minus the amount of regular transportation revenue 
 40.8   attributable to FTE's in the desegregation and handicapped 
 40.9   categories in the current school year, plus the excess 
 40.10  nonregular transportation revenue for the current year according 
 40.11  to subdivision 7e.  
 40.12     The nonregular transportation inflation factor is 1.0 for 
 40.13  the 1996-1997 school year.  
 40.14     (d) For the 1997-1998 school year and later, the nonregular 
 40.15  transportation revenue for each district equals the lesser of: 
 40.16     (1) the district's actual cost in the current school year 
 40.17  for nonregular transportation services, excess transportation 
 40.18  services, and late activity transportation services; or 
 40.19     (2) the product of the greater of: 
 40.20     (i) the district's actual cost in the base year for 
 40.21  nonregular transportation services as defined for the current 
 40.22  year in subdivision 1, paragraph (c); or 
 40.23     (ii) the lesser of the district's actual cost in the base 
 40.24  year for nonregular transportation services, excess 
 40.25  transportation services, and late activity transportation 
 40.26  services or the district's actual cost in the 1994-1995 school 
 40.27  year for nonregular transportation services, 
 40.28  times the ratio of the district's average daily membership for 
 40.29  the current year to the district's average daily membership for 
 40.30  the base year according to section 124.17, subdivision 2, times 
 40.31  the nonregular transportation inflation factor for the current 
 40.32  year, minus the amount of regular transportation revenue 
 40.33  attributable to FTE's in the desegregation and handicapped 
 40.34  categories in the current school year, plus the excess 
 40.35  nonregular transportation revenue for the current year according 
 40.36  to subdivision 7e. 
 41.1      The nonregular transportation inflation factor is 1.0 for 
 41.2   the 1997-1998 and later school years. 
 41.3      Sec. 7.  Minnesota Statutes 1994, section 124.225, 
 41.4   subdivision 7e, is amended to read: 
 41.5      Subd. 7e.  [EXCESS NONREGULAR TRANSPORTATION REVENUE.] A 
 41.6   district's excess nonregular transportation revenue for 
 41.7   1992-1993 1995-1996 and later school years equals an amount 
 41.8   equal to 80 60 percent of the difference between: 
 41.9      (1) the district's actual cost in the current year for 
 41.10  nonregular transportation services as defined for the current 
 41.11  year in subdivision 1, paragraph (c), and 
 41.12     (2) the product of the district's actual cost in the base 
 41.13  year for nonregular transportation services as defined for the 
 41.14  current year in subdivision 1, paragraph (c), times the 
 41.15  nonregular transportation inflation factor for the current year, 
 41.16  times the ratio of the district's average daily membership for 
 41.17  the current year to the district's average daily membership for 
 41.18  the base year. 
 41.19     Sec. 8.  Minnesota Statutes 1994, section 124.225, 
 41.20  subdivision 8a, is amended to read: 
 41.21     Subd. 8a.  [TRANSPORTATION AID.] (a) A district's 
 41.22  transportation aid equals the product of: 
 41.23     (1) the difference between the transportation revenue and 
 41.24  the sum of: 
 41.25     (i) the maximum basic transportation levy for that school 
 41.26  year under section 275.125 124.226, subdivision 5 1, plus 
 41.27     (ii) the maximum nonregular transportation levy for that 
 41.28  school year under section 124.226, subdivision 4, plus 
 41.29     (iii) the contracted services aid reduction under 
 41.30  subdivision 8k, 
 41.31     (2) times the ratio of the sum of the actual amounts levied 
 41.32  under section 124.226, subdivisions 1 and 4, to the sum of the 
 41.33  permitted maximum levies under section 124.226, subdivisions 1 
 41.34  and 4. 
 41.35     (b) If the total appropriation for transportation aid for 
 41.36  any fiscal year is insufficient to pay all districts the full 
 42.1   amount of aid earned, the department of education shall reduce 
 42.2   each district's aid in proportion to the number of resident 
 42.3   pupils in average daily membership in the district to the state 
 42.4   total average daily membership, and shall reduce the 
 42.5   transportation levy of off-formula districts in the same 
 42.6   proportion. 
 42.7      Sec. 9.  Minnesota Statutes 1994, section 124.226, 
 42.8   subdivision 1, is amended to read: 
 42.9      Subdivision 1.  [BASIC TRANSPORTATION.] Each year, a school 
 42.10  district may levy for school transportation services an amount 
 42.11  not to exceed the amount raised by the basic transportation tax 
 42.12  rate times the adjusted net tax capacity of the district for the 
 42.13  preceding year.  The commissioner of education shall establish 
 42.14  the basic transportation tax rate by July 1 of each year for 
 42.15  levies payable in the following year.  The basic transportation 
 42.16  tax rate shall be a rate, rounded up to the nearest hundredth of 
 42.17  a percent, that, when applied to the adjusted net tax capacity 
 42.18  of taxable property for all districts, raises the amount 
 42.19  specified for basic transportation in this subdivision section 
 42.20  124A.231.  The basic transportation tax rate for transportation 
 42.21  shall be the rate that raises $64,300,000 for fiscal year 1993 
 42.22  and $68,000,000 for fiscal year 1994 and subsequent fiscal 
 42.23  years.  The basic transportation tax rate certified by the 
 42.24  commissioner of education must not be changed due to changes or 
 42.25  corrections made to a district's adjusted net tax capacity after 
 42.26  the tax rate has been certified. 
 42.27     Sec. 10.  Minnesota Statutes 1994, section 124.226, 
 42.28  subdivision 3, is amended to read: 
 42.29     Subd. 3.  [OFF-FORMULA ADJUSTMENT.] In a district if the 
 42.30  basic transportation levy under subdivision 1 attributable to 
 42.31  that fiscal year is more than the difference between (1) the 
 42.32  district's transportation revenue under section 124.225, 
 42.33  subdivision 7d, and (2) the sum of the district's maximum 
 42.34  nonregular levy under subdivision 4 and the district's 
 42.35  contracted services aid reduction under section 124.225, 
 42.36  subdivision 8k, and the amount of any reduction due to 
 43.1   insufficient appropriation under section 124.225, subdivision 
 43.2   8a, the district's transportation levy in the second year 
 43.3   following each fiscal year must be reduced by the difference 
 43.4   between the amount of the excess and the amount of the aid 
 43.5   reduction for the same fiscal year according to subdivision 3a. 
 43.6      Sec. 11.  Minnesota Statutes 1994, section 124.226, 
 43.7   subdivision 4, is amended to read: 
 43.8      Subd. 4.  [NONREGULAR TRANSPORTATION.] A school district 
 43.9   may also make a levy for unreimbursed nonregular transportation 
 43.10  costs pursuant to this subdivision.  The amount of the levy 
 43.11  shall be the result of the following computation: 
 43.12     (a) multiply 
 43.13     (1) the amount of the district's nonregular transportation 
 43.14  revenue under section 124.225, subdivision 7d, that is more than 
 43.15  the product of $60 $65 times the district's average daily 
 43.16  membership, by 
 43.17     (2) 50 percent; 
 43.18     (b) subtract the result in clause (a) from the district's 
 43.19  total nonregular transportation revenue; 
 43.20     (c) multiply the result in clause (b) by the lesser of one 
 43.21  or the ratio of (i) the quotient derived by dividing the 
 43.22  adjusted net tax capacity of the district for the year before 
 43.23  the year the levy is certified by the average daily membership 
 43.24  in the district for the school year to which the levy is 
 43.25  attributable, to (ii) $8,000. 
 43.26     Sec. 12.  Minnesota Statutes 1994, section 124.226, 
 43.27  subdivision 5, is amended to read: 
 43.28     Subd. 5.  [EXCESS TRANSPORTATION.] A school district may 
 43.29  make a levy for excess transportation costs according to this 
 43.30  subdivision.  The amount of the levy shall be the result of the 
 43.31  following computation in an amount equal to the sum of: 
 43.32     (a) Multiply the lesser of (1) the regular transportation 
 43.33  allowance for the fiscal year to which the levy is attributable, 
 43.34  or (2) the base cost for the fiscal year to which the levy is 
 43.35  attributable, by the number of weighted FTE pupils transported 
 43.36  in the excess category in the district in the current school 
 44.1   year.  the amount of fees waived for excess transportation 
 44.2   services provided to pupils eligible for free or reduced price 
 44.3   lunches; and 
 44.4      (b) Add to the result in paragraph (a) the actual cost in 
 44.5   the fiscal year to which the levy is attributable of adult 
 44.6   crossing guards and other related services that are necessary 
 44.7   because of extraordinary traffic, drug, or crime hazards. 
 44.8      Sec. 13.  Minnesota Statutes 1994, section 124.248, is 
 44.9   amended by adding a subdivision to read: 
 44.10     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 44.11  shall be paid to an outcome-based school that provides 
 44.12  transportation services according to section 120.064, 
 44.13  subdivision 15, as though it were a school district.  
 44.14  Transportation aid shall equal transportation revenue.  
 44.15     (a) For the first two years that an outcome-based school is 
 44.16  providing transportation services, the regular transportation 
 44.17  allowance for the outcome-based school shall be equal to the 
 44.18  regular transportation allowance for the school district in 
 44.19  which the charter school is located.  For the third year of 
 44.20  transportation services and later fiscal years, the predicted 
 44.21  base cost for the outcome-based school shall be equal to the 
 44.22  predicted base cost for the school district in which the 
 44.23  outcome-based school is located.  
 44.24     (b) For the first two years that an outcome-based school is 
 44.25  providing transportation services, the nonregular transportation 
 44.26  revenue equals the outcome-based school's actual cost in the 
 44.27  current school year for nonregular transportation services, 
 44.28  minus the amount of regular transportation revenue attributable 
 44.29  to FTE's in the handicapped category in the current school 
 44.30  year.  For the third year of transportation services and later 
 44.31  fiscal years, the nonregular transportation revenue shall be 
 44.32  computed according to section 124.225, subdivision 7d, paragraph 
 44.33  (b).  
 44.34     Sec. 14.  [APPROPRIATIONS.] 
 44.35     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 44.36  indicated in this section are appropriated from the general fund 
 45.1   to the department of education for the fiscal years designated. 
 45.2      Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
 45.3   according to Minnesota Statutes, section 124.225: 
 45.4        $143,862,000     .....     1996
 45.5        $151,004,000     .....     1997
 45.6      The 1996 appropriation includes $21,275,000 for 1995 and 
 45.7   $122,587,000 for 1996.  
 45.8      The 1997 appropriation includes $21,632,000 for 1996 and 
 45.9   $129,372,000 for 1997.  
 45.10     Subd. 3.  [TRANSPORTATION AID FOR POST-SECONDARY ENROLLMENT 
 45.11  OPTIONS.] For transportation of pupils attending post-secondary 
 45.12  institutions according to Minnesota Statutes, section 123.3514: 
 45.13       $72,000     .....     1996
 45.14       $80,000     .....     1997
 45.15     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 45.16  transportation of pupils attending nonresident districts 
 45.17  according to Minnesota Statutes, section 120.0621: 
 45.18       $20,000     .....     1996
 45.19       $22,000     .....     1997
 45.20     Subd. 5.  [TRANSFER AUTHORITY.] If the appropriation in 
 45.21  subdivision 3 or 4 for either year exceeds the amount needed to 
 45.22  pay the state's obligation for that year under that subdivision, 
 45.23  the excess amount may be used to make payments for that year 
 45.24  under the other subdivision. 
 45.25     Subd. 6.  [TRANSPORTATION SAFETY.] For student 
 45.26  transportation safety aid according to Minnesota Statutes, 
 45.27  section 124.225, subdivision 8m: 
 45.28       $2,496,000     .....     1996 
 45.29       $2,586,000     .....     1997 
 45.30     The 1996 appropriation includes $371,000 for 1995 and 
 45.31  $2,125,000 for 1996.  
 45.32     The 1997 appropriation includes $375,000 for 1996 and 
 45.33  $2,211,000 for 1997. 
 45.34     Sec. 15.  [REPEALER.] 
 45.35     (a) Minnesota Statutes 1994, section 124.226, subdivision 
 45.36  2, is repealed.  
 46.1      (b) Minnesota Statutes 1994, section 124.226, subdivision 
 46.2   9, is repealed.  
 46.3      Sec. 16.  [EFFECTIVE DATE.] 
 46.4      (a) Section 10 is effective beginning with taxes payable in 
 46.5   1996 for fiscal year 1997.  
 46.6      (b) Section 15, paragraph (a), is effective July 1, 1995.  
 46.7      (c) Section 15, paragraph (b), is effective beginning with 
 46.8   taxes payable in 1996. 
 46.9                              ARTICLE 3
 46.10                          SPECIAL PROGRAMS
 46.11     Section 1.  Minnesota Statutes 1994, section 124.273, is 
 46.12  amended by adding a subdivision to read: 
 46.13     Subd. 1c.  [FISCAL YEAR 1996 REVENUE.] A district's limited 
 46.14  English proficiency programs revenue for fiscal year 1996 equals 
 46.15  the product of: 
 46.16     (1) the district's revenue for limited English proficiency 
 46.17  programs for fiscal year 1995 under this section and section 
 46.18  124.321, times 
 46.19     (2) the ratio of: 
 46.20     (i) the greater of 20 or the number of pupils of limited 
 46.21  English proficiency enrolled in the district during fiscal year 
 46.22  1996 to 
 46.23     (ii) the great of 20 or the number of pupils of limited 
 46.24  English proficiency enrolled in the district during fiscal year 
 46.25  1995. 
 46.26     Sec. 2.  Minnesota Statutes 1994, section 124.273, is 
 46.27  amended by adding a subdivision to read: 
 46.28     Subd. 1d.  [FISCAL YEAR 1996 AID.] A district's limited 
 46.29  English proficiency aid for fiscal year 1996 equals 60 percent 
 46.30  of the district's limited English proficiency revenue. 
 46.31     Sec. 3.  Minnesota Statutes 1994, section 124.311, 
 46.32  subdivision 5, is amended to read: 
 46.33     Subd. 5.  [REVENUE AMOUNT.] Assurance of mastery revenue is 
 46.34  the sum of state and district money.  The sum may equal up to 
 46.35  $45 for fiscal year 1991 and thereafter 1996 times the number of 
 46.36  actual pupil units in kindergarten through grade 8 in the 
 47.1   district.  The district shall determine the amount of money it 
 47.2   will provide and the state shall provide an equal amount of 
 47.3   money. 
 47.4      Sec. 4.  [124.312] [ASSURANCE OF MASTERY PROGRAMS.] 
 47.5      Subdivision 1.  [INSTRUCTION IN REGULAR CLASSROOM.] A 
 47.6   school district may have a policy adopted according to section 
 47.7   126.67, subdivision 3a, that identifies the direct instructional 
 47.8   services to be used to assure that individual pupils master the 
 47.9   learner outcomes in communications and mathematics. 
 47.10     Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 47.11  services through an assurance of mastery program if the pupil 
 47.12  has not demonstrated mastery of learner outcomes in 
 47.13  communications or mathematics, or both, after receiving 
 47.14  instruction that was designed to enable the pupil to master the 
 47.15  learner outcomes in a regular classroom setting.  To determine 
 47.16  pupil eligibility, a district must use the learner outcomes and 
 47.17  the evaluation process, adopted by the school board under 
 47.18  section 126.666, subdivision 1, paragraph (a), clauses (2) and 
 47.19  (3). 
 47.20     Subd. 3.  [ELIGIBLE SERVICES.] Assurance of mastery 
 47.21  programs may provide direct instructional services to an 
 47.22  eligible pupil, or group of eligible pupils, in accordance with 
 47.23  the conditions in paragraphs (a) to (d). 
 47.24     (a) Instruction may be provided at one or more grade levels 
 47.25  from kindergarten through grade 8.  If an assessment of pupils' 
 47.26  needs within a district demonstrates that the eligible pupils in 
 47.27  kindergarten through grade 8 are being appropriately served, a 
 47.28  district may serve eligible pupils in grades 9 through 12. 
 47.29     (b) Instruction must be provided in the usual and customary 
 47.30  classroom of the eligible pupil. 
 47.31     (c) Instruction must be provided under the supervision of 
 47.32  the eligible pupil's regular classroom teacher.  Instruction may 
 47.33  be provided by the eligible pupil's classroom teacher, by 
 47.34  another teacher, by a team of teachers, or by an education 
 47.35  assistant or aide.  A special education teacher may provide 
 47.36  instruction, but instruction that is provided under this section 
 48.1   is not eligible for aid under section 124.32. 
 48.2      (d) The instruction that is provided must differ from the 
 48.3   initial instruction the pupil received in the regular classroom 
 48.4   setting.  The instruction may differ by presenting different 
 48.5   curriculum than was initially presented in the regular 
 48.6   classroom, or by presenting the same curriculum: 
 48.7      (1) at a different rate or in a different sequence than it 
 48.8   was initially presented; 
 48.9      (2) using different teaching methods or techniques than 
 48.10  were used initially; or 
 48.11     (3) using different instructional materials than were used 
 48.12  initially. 
 48.13     Sec. 5.  Minnesota Statutes 1994, section 124.32, 
 48.14  subdivision 10, is amended to read: 
 48.15     Subd. 10.  [SUMMER SCHOOL.] The state shall pay aid for 
 48.16  summer school programs for children with a disability on the 
 48.17  basis of subdivisions 1b, 1d, and 5 for the current school 
 48.18  year.  The state shall also pay to the Minnesota state academy 
 48.19  for the deaf or the Minnesota state academy for the blind a part 
 48.20  of the salary of each instructional aide assigned to a child 
 48.21  attending the academy, if that aide is required by the child's 
 48.22  individual education plan.  By March 15 of each year, districts 
 48.23  shall submit separate applications for program and budget 
 48.24  approval for summer school programs.  The review of these 
 48.25  applications shall be as provided in subdivision 7.  By May 1 of 
 48.26  each year, the commissioner shall approve, disapprove or modify 
 48.27  the applications and notify the districts of the action and of 
 48.28  the estimated amount of aid for the summer school programs.  
 48.29     Sec. 6.  [124.3201] [SPECIAL EDUCATION REVENUE.] 
 48.30     Subdivision 1.  [DEFINITIONS] For the purposes of this 
 48.31  section and sections 124.3202 and 124.321, the definitions in 
 48.32  this subdivision apply. 
 48.33     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
 48.34  Base year for later fiscal years means the second fiscal year 
 48.35  preceding the fiscal year for which aid will be paid. 
 48.36     (b) "Basic revenue" has the meaning given it in section 
 49.1   124A.22, subdivision 2.  For the purposes of computing basic 
 49.2   revenue pursuant to this section, each child with a disability 
 49.3   shall be counted as prescribed in section 124.17, subdivision 1. 
 49.4      (c) "Essential personnel" means teachers, related services, 
 49.5   and support services staff providing direct services to students.
 49.6      (d) "Average daily membership" has the meaning given it in 
 49.7   section 124.17. 
 49.8      Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
 49.9   education base revenue equals the sum of the following amounts, 
 49.10  computed using base year data: 
 49.11     (1) 68 percent of the salary of each essential person 
 49.12  employed in the district's program for children with a 
 49.13  disability during the regular school year, whether the person is 
 49.14  employed by one or more districts; 
 49.15     (2) for the Minnesota state academy for the deaf or the 
 49.16  Minnesota state academy for the blind, 68 percent of the salary 
 49.17  of each instructional aide assigned to a child attending the 
 49.18  academy, if that aide is required by the child's individual 
 49.19  education plan; 
 49.20     (3) for special instruction and services provided to any 
 49.21  pupil by contracting with public, private, or voluntary agencies 
 49.22  other than school districts, in place of special instruction and 
 49.23  services provided by the district, 52 percent of the difference 
 49.24  between the amount of the contract and the basic revenue of the 
 49.25  district for that pupil for the fraction of the school day the 
 49.26  pupil receives services under the contract; 
 49.27     (4) for special instruction and services provided to any 
 49.28  pupil by contracting for services with public, private, or 
 49.29  voluntary agencies other than school districts, that are 
 49.30  supplementary to a full educational program provided by the 
 49.31  school district, 52 percent of the amount of the contract for 
 49.32  that pupil; and 
 49.33     (5) for supplies and equipment purchased or rented for use 
 49.34  in the instruction of children with a disability an amount equal 
 49.35  to 47 percent of the sum actually expended by the district but 
 49.36  not to exceed an average of $47 in any one school year for each 
 50.1   child with a disability receiving instruction. 
 50.2      Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 50.3   fiscal year 1996 and later, a district's adjusted special 
 50.4   education base revenue equals the district's special education 
 50.5   base revenue times the ratio of the district's average daily 
 50.6   membership for the current school year to the district's average 
 50.7   daily membership for the base year. 
 50.8      Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
 50.9   state total special education revenue for fiscal year 1996 
 50.10  equals $321,838,000.  The state total special education revenue 
 50.11  for fiscal year 1997 equals $327,599,000.  The state total 
 50.12  special education revenue for later fiscal years equals the 
 50.13  state total special education revenue for fiscal year 1997 times 
 50.14  the ratio of the state total average daily membership for the 
 50.15  current fiscal year to the state total average daily membership 
 50.16  for fiscal year 1997. 
 50.17     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] A 
 50.18  school district's special education revenue for fiscal year 1996 
 50.19  and later equals the state total special education revenue times 
 50.20  the ratio of the district's adjusted special education base 
 50.21  revenue to the state total adjusted special education base 
 50.22  revenue. 
 50.23     Subd. 6.  [SPECIAL EDUCATION AID.] A school district's 
 50.24  special education aid for fiscal year 1996 and later equals 60 
 50.25  percent of the district's special education revenue. 
 50.26     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 50.27  INTERMEDIATES.] For the purposes of this section and section 
 50.28  124.321, a special education cooperative or an intermediate 
 50.29  district shall allocate its approved expenditures for special 
 50.30  education programs among participating school districts.  
 50.31  Special education aid for services provided by a cooperative or 
 50.32  intermediate district shall be paid to the participating school 
 50.33  districts. 
 50.34     Sec. 7.  [124.3202] [SPECIAL EDUCATION SUMMER PROGRAM 
 50.35  REVENUE.] 
 50.36     Subdivision 1.  [SUMMER PROGRAM BASE REVENUE.] The summer 
 51.1   program base revenue equals the sum of the following amounts, 
 51.2   computed using base year data: 
 51.3      (1) 68 percent of the summer program salary of each 
 51.4   essential person employed in the district's program for children 
 51.5   with a disability, whether the person is employed by one or more 
 51.6   districts; 
 51.7      (2) for the Minnesota state academy for the deaf or the 
 51.8   Minnesota state academy for the blind, 68 percent of the summer 
 51.9   program salary of each instructional aide assigned to a child 
 51.10  attending the academy, if that aide is required by the child's 
 51.11  individual education plan; 
 51.12     (3) for special instruction and services provided to any 
 51.13  pupil by contracting with public, private, or voluntary agencies 
 51.14  other than school districts, in place of special instruction and 
 51.15  services provided by the district, 52 percent of the difference 
 51.16  between the amount of the contract for the summer program and 
 51.17  the basic revenue of the district for that pupil for the 
 51.18  fraction of the school day the pupil receives services under the 
 51.19  contract; and 
 51.20     (4) for special instruction and services provided to any 
 51.21  pupil by contracting for services with public, private, or 
 51.22  voluntary agencies other than school districts, that are 
 51.23  supplementary to a full educational program provided by the 
 51.24  school district, 52 percent of the amount of the summer program 
 51.25  contract for that pupil. 
 51.26     Subd. 2.  [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 
 51.27  fiscal year 1996 and later, a district's adjusted summer program 
 51.28  base revenue equals the district's summer program base revenue 
 51.29  times the ratio of the district's average daily membership for 
 51.30  the current school year to the district's average daily 
 51.31  membership for the base year. 
 51.32     Subd. 3.  [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 
 51.33  total summer program revenue for fiscal year 1996 equals 
 51.34  $7,040,000.  The state total summer program revenue for fiscal 
 51.35  year 1997 equals $7,166,000.  The state total summer program 
 51.36  revenue for later fiscal years equals the state total summer 
 52.1   program revenue for fiscal year 1997 times the ratio of the 
 52.2   state total average daily membership for the current fiscal year 
 52.3   to the state total average daily membership for fiscal year 1997.
 52.4      Subd. 4.  [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] A 
 52.5   school district's summer program revenue for fiscal year 1996 
 52.6   and later equals the state total summer program revenue times 
 52.7   the ratio of the district's adjusted summer program base revenue 
 52.8   to the state total adjusted summer program base revenue. 
 52.9      Subd. 5.  [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school 
 52.10  district's special education summer program aid for fiscal year 
 52.11  1996 and later equals 60 percent of the district's summer 
 52.12  program revenue. 
 52.13     Subd. 6.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 52.14  INTERMEDIATES.] For the purposes of this section and section 
 52.15  124.321, a special education cooperative or an intermediate 
 52.16  district shall allocate its approved expenditures for special 
 52.17  education programs among participating school districts.  
 52.18  Special education summer program aid for services provided by a 
 52.19  cooperative or intermediate district shall be paid to the 
 52.20  participating school districts. 
 52.21     Sec. 8.  Minnesota Statutes 1994, section 124.321, 
 52.22  subdivision 1, is amended to read: 
 52.23     Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
 52.24  year 1996, special education levy equalization revenue for a 
 52.25  school district, excluding an intermediate school district, 
 52.26  equals the sum of the following amounts: 
 52.27     (1) 68 percent of the salaries paid to essential personnel 
 52.28  in that district minus the amount of state aid and any federal 
 52.29  aid, if applicable, paid to that district for salaries of these 
 52.30  essential personnel under section 124.32, subdivisions 1b and 
 52.31  10, for the year to which the levy is attributable, plus 
 52.32     (2) 68 percent of the salaries paid to essential personnel 
 52.33  in that district minus the amount of state aid and any federal 
 52.34  aid, if applicable, paid to that district for salaries of those 
 52.35  essential personnel under section 124.574, subdivision 2b, for 
 52.36  the year to which the levy is attributable, plus 
 53.1      (3) 68 percent of the salaries paid to limited English 
 53.2   proficiency program teachers in that district minus the amount 
 53.3   of state aid and any federal aid, if applicable, paid to that 
 53.4   district for salaries of these teachers under section 124.273, 
 53.5   subdivision 1b, for the year to which the levy is attributable, 
 53.6   plus 
 53.7      (4) the alternative delivery levy revenue determined 
 53.8   according to section 124.322, subdivision 4, plus 
 53.9      (5) the amount allocated to the district by special 
 53.10  education cooperatives or intermediate districts in which it 
 53.11  participates according to subdivision 2. 
 53.12     A district that receives alternative delivery levy revenue 
 53.13  according to section 124.322, subdivision 4, shall not receive 
 53.14  levy equalization revenue under clause (1) or subdivision 2, 
 53.15  clause (1), for the same fiscal year. 
 53.16     (1) 40 percent of the district's special education revenue 
 53.17  under section 124.3201, plus 
 53.18     (2) 40 percent of the district's special education summer 
 53.19  program revenue under section 124.3202, plus 
 53.20     (3) 40 percent of the district's secondary vocational 
 53.21  education for children with a disability revenue under section 
 53.22  124.574, plus 
 53.23     (4) 40 percent of the district's limited English 
 53.24  proficiency programs revenue under section 124.273. 
 53.25     (b) For fiscal year 1997 and later, special education levy 
 53.26  equalization revenue for a school district, excluding an 
 53.27  intermediate school district, equals the sum of the following 
 53.28  amounts: 
 53.29     (1) 40 percent of the district's special education revenue 
 53.30  under section 124.3201, plus 
 53.31     (2) 40 percent of the district's special education summer 
 53.32  program revenue under section 124.3202, plus 
 53.33     (3) 40 percent of the district's secondary vocational 
 53.34  education for children with a disability revenue under section 
 53.35  124.574. 
 53.36     Sec. 9.  Minnesota Statutes 1994, section 124.321, 
 54.1   subdivision 2, is amended to read: 
 54.2      Subd. 2.  [REVENUE ALLOCATION FROM COOPERATIVES AND 
 54.3   INTERMEDIATE DISTRICTS STATE ACADEMIES.] (a) For purposes of 
 54.4   this section, a special education cooperative or an intermediate 
 54.5   district shall allocate to participating school districts the 
 54.6   sum of the following amounts: 
 54.7      (1) 68 percent of the salaries paid to essential personnel 
 54.8   in that cooperative or intermediate district minus the amount of 
 54.9   state aid and any federal aid, if applicable, paid to that 
 54.10  cooperative or intermediate district for salaries of these 
 54.11  essential personnel under section 124.32, subdivisions 1b and 
 54.12  10, for the year to which the levy is attributable, plus 
 54.13     (2) 68 percent of the salaries paid to essential personnel 
 54.14  in that district minus the amount of state aid and any federal 
 54.15  aid, if applicable, paid to that district for salaries of those 
 54.16  essential personnel under section 124.574, subdivision 2b, for 
 54.17  the year to which the levy is attributable, plus 
 54.18     (3) 68 percent of the salaries paid to limited English 
 54.19  proficiency program teachers in that cooperative or intermediate 
 54.20  district minus the amount of state aid and any federal aid, if 
 54.21  applicable, paid to that cooperative or intermediate district 
 54.22  for salaries of these teachers under section 124.273, 
 54.23  subdivision 1b, for the year to which the levy is attributable. 
 54.24     (b) A special education cooperative or an intermediate 
 54.25  district that allocates amounts to participating school 
 54.26  districts under this subdivision must report the amounts 
 54.27  allocated to the department of education. 
 54.28     (c) For purposes of this subdivision section, the Minnesota 
 54.29  state academy for the deaf or the Minnesota state academy for 
 54.30  the blind each year shall allocate an amount equal to 68 percent 
 54.31  of salaries paid to instructional aides in either academy minus 
 54.32  the amount of state aid and any federal aid, if applicable, paid 
 54.33  to either academy for salaries of these instructional aides 
 54.34  under sections 124.32, subdivisions 1b and 10, 40 percent of 
 54.35  their special education revenue under section 124.3201 and their 
 54.36  special education summer program revenue under section 124.3202 
 55.1   for the year to each school district that assigns a child with 
 55.2   an individual education plan requiring an instructional aide to 
 55.3   attend either academy.  The school districts that assign a child 
 55.4   who requires an instructional aide may make a levy in the amount 
 55.5   of the costs allocated to them by either academy. 
 55.6      (d) (b) When the Minnesota state academy for the deaf or 
 55.7   the Minnesota state academy for the blind allocates unreimbursed 
 55.8   portions of salaries of instructional aides revenue among school 
 55.9   districts that assign a child who requires an instructional 
 55.10  aide, for purposes of the districts making a levy under this 
 55.11  subdivision, the academy shall provide information to the 
 55.12  department of education on the amount of unreimbursed costs of 
 55.13  salaries revenue it allocated to the school districts that 
 55.14  assign a child who requires an instructional aide. 
 55.15     Sec. 10.  Minnesota Statutes 1994, section 124.322, is 
 55.16  amended to read: 
 55.17     124.322 [ALTERNATIVE DELIVERY BASE REVENUE ADJUSTMENT.] 
 55.18     Subdivision 1.  [ELIGIBILITY.] A district is eligible 
 55.19  for an alternative delivery base revenue adjustment if the 
 55.20  commissioner of education has approved the application of the 
 55.21  district according to section 120.173. 
 55.22     Subd. 1a.  [DEFINITIONS BASE REVENUE ADJUSTMENT.] In this 
 55.23  section, the definitions in this subdivision apply. 
 55.24     (a) "Base revenue" means the following: 
 55.25     (1) for the first fiscal year after approval of the 
 55.26  district's application, base revenue means the sum of the 
 55.27  district's revenue for the preceding fiscal year for its special 
 55.28  education program under sections 124.32, subdivisions 1b, 1d, 2, 
 55.29  5, and 10, and 124.321, subdivision 1; 
 55.30     (2) for the second fiscal year after approval of a 
 55.31  district's application, base revenue means the sum of the 
 55.32  district's revenue for the second prior fiscal year for its 
 55.33  special education program under sections 124.32, subdivisions 
 55.34  1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; and 
 55.35     (3) For the third fiscal year after approval of a 
 55.36  district's application, and thereafter, the special education 
 56.1   base revenue under section 124.3201, subdivision 1, and the 
 56.2   summer program base revenue means the sum of the revenue a 
 56.3   district would have been entitled to in the second prior fiscal 
 56.4   year for its special education program under sections 124.32, 
 56.5   subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision 
 56.6   1, under section 124.3202, subdivision 1, shall be computed 
 56.7   based on activities defined as reimbursable under state board 
 56.8   rules for special education and nonspecial education students, 
 56.9   and additional activities as detailed and approved by the 
 56.10  commissioner of education. 
 56.11     (b) "Base aid" means the following: 
 56.12     (1) for the first fiscal year after approval of a 
 56.13  district's application, base aid means the sum of the district's 
 56.14  gross aid for the preceding fiscal year for its special 
 56.15  education program under section 124.32, subdivisions 1b, 1d, 2, 
 56.16  5, and 10; 
 56.17     (2) for the second fiscal year after approval of a 
 56.18  district's application, base aid means the sum of the district's 
 56.19  gross aid for the second prior fiscal year for its special 
 56.20  education program under section 124.32, subdivisions 1b, 1d, 2, 
 56.21  5, and 10; and 
 56.22     (3) for the third fiscal year after approval of a 
 56.23  district's application and thereafter, base aid means the sum of 
 56.24  the gross aid the district would have been entitled to in the 
 56.25  second prior fiscal year for its special education program under 
 56.26  section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on 
 56.27  activities defined as reimbursable under state board of 
 56.28  education rules for special education and nonspecial education 
 56.29  students, and additional activities as detailed and approved by 
 56.30  the commissioner of education in the application plan. 
 56.31     (c) Notwithstanding paragraphs (a) and (b), base revenue 
 56.32  and base aid for 1995 and later fiscal years must not include 
 56.33  revenue and aid under section 124.32, subdivision 5. 
 56.34     (d) "Alternative delivery revenue inflator" means: 
 56.35     (1) for the first fiscal year after approval of a 
 56.36  district's application, the greater of 1.017 or the ratio of (i) 
 57.1   the statewide average special education revenue under sections 
 57.2   124.32 and 124.321 per pupil in average daily membership for the 
 57.3   current fiscal year, to (ii) the statewide average special 
 57.4   education revenue per pupil in average daily membership for the 
 57.5   previous fiscal year. 
 57.6      (2) for the second and later fiscal years, the greater of 
 57.7   1.034 or the ratio of (i) the statewide average special 
 57.8   education revenue under sections 124.32 and 124.321 per pupil in 
 57.9   average daily membership for the current fiscal year, to (ii) 
 57.10  the statewide average special education revenue per pupil in 
 57.11  average daily membership for the second prior fiscal year. 
 57.12     (e) The commissioner of education shall adjust each 
 57.13  district's base revenue and base aid to reflect any changes in 
 57.14  special education services required by rule or statute.  
 57.15     Subd. 2.  [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the 
 57.16  first fiscal year after approval of an application, a district's 
 57.17  alternative delivery revenue equals its base revenue multiplied 
 57.18  by the product of the alternative delivery revenue inflator 
 57.19  times the ratio of the district's average daily membership for 
 57.20  the current fiscal year to the district's average daily 
 57.21  membership for the immediately preceding fiscal year.  For the 
 57.22  second and later fiscal years a district's alternative delivery 
 57.23  revenue equals its base revenue multiplied by the product of the 
 57.24  alternative delivery revenue inflator times the ratio of the 
 57.25  district's average daily membership for the current fiscal year 
 57.26  to the district's average daily membership for the second 
 57.27  preceding fiscal year. 
 57.28     Subd. 3.  [ALTERNATIVE DELIVERY AID.] For the first fiscal 
 57.29  year after approval of an application, a district's alternative 
 57.30  delivery aid equals its base aid multiplied by the product of 
 57.31  1.017 times the ratio of the district's average daily membership 
 57.32  for the current fiscal year to the district's average daily 
 57.33  membership for the preceding fiscal year.  For the second and 
 57.34  later fiscal years a district's alternative delivery aid equals 
 57.35  its base aid multiplied by the product of 1.034 times the ratio 
 57.36  of the district's average daily membership for the current 
 58.1   fiscal year to the district's average daily membership for the 
 58.2   second preceding fiscal year.  A district that receives aid 
 58.3   under this subdivision shall not receive aid under section 
 58.4   124.32, subdivisions 1b, 1d, 2, 5, and 10, for the same fiscal 
 58.5   year. 
 58.6      Subd. 4.  [ALTERNATIVE DELIVERY LEVY REVENUE.] A district 
 58.7   shall receive alternative delivery levy revenue equal to the 
 58.8   difference between the alternative delivery revenue and the 
 58.9   alternative delivery aid.  If the alternative delivery aid for a 
 58.10  district is prorated, the alternative delivery levy revenue 
 58.11  shall be increased by the amount not paid by the state due to 
 58.12  proration.  The alternative delivery levy revenue shall be 
 58.13  included under section 124.321, subdivision 1, for purposes of 
 58.14  computing the special education levy under section 124.321, 
 58.15  subdivision 3, and the special education levy equalization aid 
 58.16  under section 124.321, subdivision 4. 
 58.17     Subd. 5.  [USE OF REVENUE.] Revenue under this section 
 58.18  sections 124.3201 and 124.3202 shall be used to implement the 
 58.19  approved program.  
 58.20     Sec. 11.  Minnesota Statutes 1994, section 124.323, 
 58.21  subdivision 1, is amended to read: 
 58.22     Subdivision 1.  [DEFINITIONS.] In this section, the 
 58.23  definitions in this subdivision apply. 
 58.24     (a) "Unreimbursed special education cost" means the sum of 
 58.25  the following: 
 58.26     (1) expenditures for teachers' salaries, contracted 
 58.27  services, supplies, and equipment eligible for revenue under 
 58.28  sections 124.32, subdivisions 1b, 1d, 2, and 10, and 124.322, 
 58.29  subdivision 2 124.3201, 124.3202, and 124.321; plus 
 58.30     (2) expenditures for tuition bills received under section 
 58.31  120.17; minus 
 58.32     (3) revenue for teachers' salaries, contracted services, 
 58.33  supplies, and equipment under sections 124.32, subdivisions 1b, 
 58.34  1d, 2, and 10; 124.321, subdivision 1, clause (1); and 124.322, 
 58.35  subdivision 2 124.3201, 124.3202, and 124.321; minus 
 58.36     (4) tuition receipts under section 120.17. 
 59.1      (b) "General revenue" means the sum of the general 
 59.2   education revenue according to section 124A.22, subdivision 1, 
 59.3   plus the total referendum revenue according to section 124A.03, 
 59.4   subdivision 1e. 
 59.5      Sec. 12.  Minnesota Statutes 1994, section 124.573, 
 59.6   subdivision 3, is amended to read: 
 59.7      Subd. 3.  [COMPLIANCE WITH RULES.] Aid shall be paid under 
 59.8   this section only for services rendered or for costs incurred in 
 59.9   A district that allocates learner improvement revenue to 
 59.10  secondary vocational education programs must use the revenue for 
 59.11  secondary vocational education programs approved by the 
 59.12  commissioner and operated in accordance with rules promulgated 
 59.13  by the state board.  These rules shall provide minimum 
 59.14  student-staff ratios required for a secondary vocational 
 59.15  education program area to qualify for this aid.  The rules must 
 59.16  not require the collection of data at the program or course 
 59.17  level to calculate secondary vocational aid.  The rules shall 
 59.18  not require any minimum number of administrative staff, any 
 59.19  minimum period of coordination time or extended employment for 
 59.20  secondary vocational education personnel, or the availability of 
 59.21  vocational student activities or organizations for a secondary 
 59.22  vocational education program to qualify for this aid.  The 
 59.23  requirement in these rules that program components be available 
 59.24  for a minimum number of hours shall not be construed to prevent 
 59.25  pupils from enrolling in secondary vocational education courses 
 59.26  on an exploratory basis for less than a full school year.  The 
 59.27  state board shall not require a school district to offer more 
 59.28  than four credits or 560 hours of vocational education course 
 59.29  offerings in any school year.  Rules relating to secondary 
 59.30  vocational education programs shall not incorporate the 
 59.31  provisions of the state plan for vocational education by 
 59.32  reference.  This aid shall be paid Learner improvement revenue 
 59.33  allocated to this program shall be used only for services 
 59.34  rendered and for costs incurred by essential, licensed personnel 
 59.35  who meet the work experience requirements for licensure pursuant 
 59.36  to the rules of the state board.  Licensed personnel means 
 60.1   persons holding a valid secondary vocational license issued by 
 60.2   the commissioner, except that when an average of five or fewer 
 60.3   secondary full-time equivalent students are enrolled per teacher 
 60.4   in an approved post-secondary program at intermediate district 
 60.5   No. 287, 916, or 917, licensed personnel means persons holding a 
 60.6   valid vocational license issued by the commissioner or the state 
 60.7   board for vocational technical education.  Notwithstanding 
 60.8   section 124.15, the commissioner may modify or withdraw the 
 60.9   program or aid approval and withhold aid under this section 
 60.10  without proceeding under section 124.15 at any time.  To do so, 
 60.11  the commissioner must determine that the program does not comply 
 60.12  with rules of the state board or that any facts concerning the 
 60.13  program or its budget differ from the facts in the district's 
 60.14  approved application. 
 60.15     Sec. 13.  Minnesota Statutes 1994, section 124.574, is 
 60.16  amended by adding a subdivision to read: 
 60.17     Subd. 2c.  [DEFINITIONS.] For the purposes of this section 
 60.18  and section 124.321, the definitions in this subdivision apply. 
 60.19     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
 60.20  Base year for later fiscal years means the second fiscal year 
 60.21  preceding the fiscal year for which aid will be paid. 
 60.22     (b) "Basic revenue" has the meaning given it in section 
 60.23  124A.22, subdivision 2.  For the purposes of computing basic 
 60.24  revenue pursuant to this section, each child with a disability 
 60.25  shall be counted as prescribed in section 124.17, subdivision 1. 
 60.26     (c) "Average daily membership" has the meaning given it in 
 60.27  section 124.17. 
 60.28     Sec. 14.  Minnesota Statutes 1994, section 124.574, is 
 60.29  amended by adding a subdivision to read: 
 60.30     Subd. 2d.  [BASE REVENUE.] The secondary vocational 
 60.31  disabled program base revenue equals the sum of the following 
 60.32  amounts, computed using base year data: 
 60.33     (1) 68 percent of the salary of each essential licensed 
 60.34  person who provides direct instructional services to students, 
 60.35  employed during that fiscal year for services rendered in that 
 60.36  district's secondary vocational education programs for children 
 61.1   with a disability; 
 61.2      (2) 47 percent of the costs of necessary equipment for 
 61.3   secondary vocational education programs for children with a 
 61.4   disability; 
 61.5      (3) 47 percent of the costs of necessary travel between 
 61.6   instructional sites by secondary vocational education teachers 
 61.7   of children with a disability, but not including travel to and 
 61.8   from local, regional, district, state, or national vocational 
 61.9   student organization meetings; 
 61.10     (4) 47 percent of the costs of necessary supplies for 
 61.11  secondary vocational education programs for children with a 
 61.12  disability, but not to exceed an average of $47 in any one 
 61.13  school year for each child with a disability receiving these 
 61.14  services; 
 61.15     (5) for secondary vocational education programs for 
 61.16  children with disabilities provided by a contract approved by 
 61.17  the commissioner with public, private, or voluntary agencies 
 61.18  other than a Minnesota school district or cooperative center, in 
 61.19  place of programs provided by the district, 52 percent of the 
 61.20  difference between the amount of the contract and the basic 
 61.21  revenue of the district for that pupil for the fraction of the 
 61.22  school day the pupil receives services under the contract; 
 61.23     (6) for secondary vocational education programs for 
 61.24  children with disabilities provided by a contract approved by 
 61.25  the commissioner with public, private, or voluntary agencies 
 61.26  other than a Minnesota school district or cooperative center, 
 61.27  that are supplementary to a full educational program provided by 
 61.28  the school district, 52 percent of the amount of the contract; 
 61.29  and 
 61.30     (7) for a contract approved by the commissioner with 
 61.31  another Minnesota school district or cooperative center for 
 61.32  vocational evaluation services for children with a disability 
 61.33  for children that are not yet enrolled in grade 12, 52 percent 
 61.34  of the amount of the contract. 
 61.35     Sec. 15.  Minnesota Statutes 1994, section 124.574, is 
 61.36  amended by adding a subdivision to read: 
 62.1      Subd. 2e.  [ADJUSTED SECONDARY VOCATIONAL-DISABLED BASE 
 62.2   REVENUE.] For fiscal year 1996 and later, a district's adjusted 
 62.3   secondary vocational-disabled base revenue equals the district's 
 62.4   secondary vocational-disabled base revenue times the ratio of 
 62.5   the district's average daily membership for the current school 
 62.6   year to the district's average daily membership for the base 
 62.7   year. 
 62.8      Sec. 16.  Minnesota Statutes 1994, section 124.574, is 
 62.9   amended by adding a subdivision to read: 
 62.10     Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
 62.11  REVENUE.] The state total secondary vocational-disabled revenue 
 62.12  for fiscal year 1996 equals $7,582,000.  The state total 
 62.13  secondary vocational-disabled revenue for fiscal year 1997 
 62.14  equals $7,718,000.  The state total secondary 
 62.15  vocational-disabled revenue for later fiscal years equals the 
 62.16  state total secondary vocational-disabled revenue for fiscal 
 62.17  year 1997 times the ratio of the state total average daily 
 62.18  membership for the current fiscal year to the state total 
 62.19  average daily membership for fiscal year 1997. 
 62.20     Sec. 17.  Minnesota Statutes 1994, section 124.574, is 
 62.21  amended by adding a subdivision to read: 
 62.22     Subd. 2g.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
 62.23  REVENUE.] A school district's secondary vocational-disabled 
 62.24  revenue for fiscal year 1996 and later equals the state total 
 62.25  secondary vocational-disabled revenue times the ratio of the 
 62.26  district's adjusted secondary vocational-disabled base revenue 
 62.27  to the state total adjusted secondary vocational-disabled base 
 62.28  revenue. 
 62.29     Sec. 18.  Minnesota Statutes 1994, section 124.574, is 
 62.30  amended by adding a subdivision to read: 
 62.31     Subd. 2h.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
 62.32  AID.] A school district's secondary vocational-disabled aid for 
 62.33  fiscal year 1996 and later equals 60 percent of the district's 
 62.34  secondary vocational-disabled revenue. 
 62.35     Sec. 19.  Minnesota Statutes 1994, section 124.574, 
 62.36  subdivision 9, is amended to read: 
 63.1      Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 63.2   INTERMEDIATE DISTRICTS.] For purposes of this section and 
 63.3   section 124.321, a cooperative center or an intermediate 
 63.4   district shall allocate its approved expenditures for secondary 
 63.5   vocational programs for children with a disability among 
 63.6   participating school districts.  Aid for secondary vocational 
 63.7   programs for children with a disability for services provided by 
 63.8   a cooperative or intermediate district shall be paid to the 
 63.9   participating school districts. 
 63.10     Sec. 20.  [APPROPRIATIONS.] 
 63.11     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 63.12  indicated in this section are appropriated from the general fund 
 63.13  or other named fund to the department of education for the 
 63.14  fiscal years designated. 
 63.15     Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
 63.16  aid according to Minnesota Statutes, section 124.32: 
 63.17       $192,368,000     .....     1996 
 63.18       $196,041,000     .....     1997 
 63.19     The 1996 appropriation includes $28,230,000 for 1995 and 
 63.20  $164,138,000 for 1996.  
 63.21     The 1997 appropriation includes $28,965,000 for 1996 and 
 63.22  $167,076,000 for 1997.  
 63.23     Subd. 3.  [SPECIAL PUPIL AID.] For special education aid 
 63.24  according to Minnesota Statutes, section 124.32, subdivision 6, 
 63.25  for pupils with handicaps placed in residential facilities 
 63.26  within the district boundaries for whom no district of residence 
 63.27  can be determined: 
 63.28       $213,000     .....     1996 
 63.29       $222,000     .....     1997 
 63.30     If the appropriation for either year is insufficient, the 
 63.31  appropriation for the other year is available.  If the 
 63.32  appropriations for both years are insufficient, the 
 63.33  appropriation for special education aid may be used to meet the 
 63.34  special pupil obligations. 
 63.35     Subd. 4.  [SUMMER SPECIAL EDUCATION AID.] For special 
 63.36  education summer program aid according to Minnesota Statutes, 
 64.1   section 124.32, subdivision 10: 
 64.2        $4,224,000     .....     1996
 64.3        $4,300,000     .....     1997 
 64.4      The 1996 appropriation is for 1995 summer programs.  
 64.5      The 1997 appropriation is for 1996 summer programs.  
 64.6      Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 64.7   teacher travel for home-based services according to Minnesota 
 64.8   Statutes, section 124.32, subdivision 2b: 
 64.9        $77,000      .....     1996 
 64.10       $80,000      .....     1997 
 64.11     The 1996 appropriation includes $11,000 for 1995 and 
 64.12  $66,000 for 1996.  
 64.13     The 1997 appropriation includes $11,000 for 1996 and 
 64.14  $69,000 for 1997.  
 64.15     Subd. 6.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 64.16  cost aid: 
 64.17       $ 9,330,000    .....     1996 
 64.18       $13,921,000    .....     1997 
 64.19     The 1996 appropriation includes $980,000 for 1995 and 
 64.20  $8,350,000 for 1996.  
 64.21     The 1997 appropriation includes $1,473,000 for 1996 and 
 64.22  $12,448,000 for 1997. 
 64.23     Subd. 7.  [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 
 64.24  For aid to educational programs for pupils of limited English 
 64.25  proficiency according to Minnesota Statutes, section 124.273: 
 64.26       $6,935,000     .....     1996 
 64.27       $1,056,000     .....     1997 
 64.28     The 1996 appropriation includes $945,000 for 1995 and 
 64.29  $5,990,000 for 1996.  
 64.30     The 1997 appropriation includes $1,056,000 for 1996 and $0 
 64.31  for 1997.  
 64.32     Subd. 8.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 64.33  GRANTS.] For American Indian post-secondary preparation grants 
 64.34  according to Minnesota Statutes, section 124.481: 
 64.35       $738,000     .....     1996
 64.36       $738,000     .....     1997
 65.1      Any balance in the first year does not cancel but is 
 65.2   available in the second year. 
 65.3      Subd. 9.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 65.4   For grants to American Indian language and culture education 
 65.5   programs according to Minnesota Statutes, section 126.54, 
 65.6   subdivision 1: 
 65.7        $515,000     .....     1996
 65.8        $502,000     .....     1997
 65.9      The 1996 appropriation includes $88,000 for 1995 and 
 65.10  $427,000 for 1996.  
 65.11     The 1997 appropriation includes $75,000 for 1996 and 
 65.12  $427,000 for 1997.  
 65.13     Any balance in the first year does not cancel but is 
 65.14  available in the second year. 
 65.15     Subd. 10.  [SECONDARY VOCATIONAL; STUDENTS WITH 
 65.16  DISABILITIES.] For aid for secondary vocational education for 
 65.17  pupils with disabilities according to Minnesota Statutes, 
 65.18  section 124.574: 
 65.19       $4,457,000     .....     1996 
 65.20       $4,619,000     .....     1997 
 65.21     The 1996 appropriation includes $590,000 for 1995 and 
 65.22  $3,867,000 for 1996.  
 65.23     The 1997 appropriation includes $682,000 for 1996 and 
 65.24  $3,937,000 for 1997.  
 65.25     Subd. 11.  [ASSURANCE OF MASTERY.] For assurance of mastery 
 65.26  aid according to Minnesota Statutes, section 124.312: 
 65.27       $10,959,000     .....     1996 
 65.28       $ 1,596,000     .....     1997 
 65.29     The 1996 appropriation includes $1,915,000 for 1995 and 
 65.30  $9,044,000 for 1996.  
 65.31     The 1997 appropriation includes $1,596,000 for 1996 and $0 
 65.32  for 1997. 
 65.33     Subd. 12.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
 65.34  education levy equalization aid according to Minnesota Statutes, 
 65.35  section 124.321: 
 65.36       $17,884,000    .....     1996
 66.1        $17,575,000    .....     1997
 66.2      The 1996 appropriation includes $2,584,000 for 1995 and 
 66.3   $15,300,000 for 1996.  
 66.4      The 1997 appropriation includes $2,700,000 for 1996 and 
 66.5   $14,875,000 for 1997. 
 66.6      Subd. 13.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 66.7   Indian scholarships according to Minnesota Statutes, section 
 66.8   124.48: 
 66.9        $1,378,000     .....     1996 
 66.10       $1,378,000     .....     1997 
 66.11     Any unexpended balance remaining in the first year does not 
 66.12  cancel but is available in the second year. 
 66.13     Subd. 14.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 66.14  American Indian education programs in school districts: 
 66.15       $152,000     .....     1996
 66.16       $148,000     .....     1997
 66.17     The 1996 appropriation includes $26,000 for 1995 and 
 66.18  $126,000 for 1996.  
 66.19     The 1997 appropriation includes $22,000 for 1996 and 
 66.20  $126,000 for 1997.  
 66.21     (b) These appropriations are available for expenditure with 
 66.22  the approval of the commissioner of the department of education. 
 66.23     (c) The commissioner must not approve the payment of any 
 66.24  amount to a school district or school under this subdivision 
 66.25  unless that school district or school is in compliance with all 
 66.26  applicable laws of this state. 
 66.27     (d) Up to the following amounts may be distributed to the 
 66.28  following schools and school districts for each fiscal year:  
 66.29  $45,900, Pine Point School; $8,800 to independent school 
 66.30  district No. 166, Cook county; $13,300 to independent school 
 66.31  district No. 432, Mahnomen; $11,800 to independent school 
 66.32  district No. 435, Waubun; $35,600 to independent school district 
 66.33  No. 707, Nett Lake; and $32,600 to independent school district 
 66.34  No. 38, Red Lake.  These amounts must be spent only for the 
 66.35  benefit of American Indian pupils and to meet established state 
 66.36  educational standards or statewide requirements. 
 67.1      (e) Before a district or school can receive money under 
 67.2   this subdivision, the district or school must submit, to the 
 67.3   commissioner, evidence that it has complied with the uniform 
 67.4   financial accounting and reporting standards act, Minnesota 
 67.5   Statutes, sections 121.904 to 121.917. 
 67.6      Subd. 15.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 67.7   joint grants to assist Indian people to become teachers: 
 67.8        $163,000     .....     1996 
 67.9        $163,000     .....     1997 
 67.10     (b) Up to $61,000 each year is for a joint grant to the 
 67.11  University of Minnesota at Duluth and the Duluth school district.
 67.12     (c) Up to $34,000 each year is for a joint grant to each of 
 67.13  the following: 
 67.14     (1) Bemidji state university and the Red Lake school 
 67.15  district; 
 67.16     (2) Moorhead state university and a school district located 
 67.17  within the White Earth reservation; and 
 67.18     (3) Augsburg college and the Minneapolis school district. 
 67.19     (d) Money not used for students at one location may be 
 67.20  transferred for use at another location. 
 67.21     (e) Any unexpended balance remaining the first year does 
 67.22  not cancel but is available in the second year. 
 67.23     Subd. 16.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 67.24  school aid according to Minnesota Statutes, section 124.86: 
 67.25       $401,000     .....     1996
 67.26       $390,000     .....     1997
 67.27     The 1996 appropriation includes $69,000 for 1995 and 
 67.28  $332,000 for 1996. 
 67.29     The 1997 appropriation includes $58,000 for 1996 and 
 67.30  $332,000 for 1997. 
 67.31     Subd. 17.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
 67.32  SCHOOLS.] For early childhood family education programs at 
 67.33  tribal contract schools: 
 67.34       $58,000     .....     1996 
 67.35       $58,000     .....     1997 
 67.36     Subd. 18.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 68.1   secondary vocational education aid according to Minnesota 
 68.2   Statutes, section 124.573: 
 68.3        $11,335,000     .....     1996 
 68.4        $ 1,650,000     .....     1997 
 68.5      The 1996 appropriation includes $1,979,000 for 1995 and 
 68.6   $9,356,000 for 1996.  
 68.7      The 1997 appropriation includes $1,650,000 for 1996 and $0 
 68.8   for 1997.  
 68.9      Subd. 19.  [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 
 68.10  HEARING.] To assist school districts in educating teachers in 
 68.11  American sign language: 
 68.12       $13,000      .....     1996
 68.13       $12,000      .....     1997
 68.14     Any balance remaining in the first year does not cancel but 
 68.15  is available in the second year. 
 68.16     Sec. 21.  [REPEALER.] 
 68.17     (a) Minnesota Statutes 1994, sections 124.273, subdivisions 
 68.18  1b and 2c; 124.278; 124.32, subdivisions 1b, 1c, 1d, 1f, 2, and 
 68.19  3a; and 124.574, subdivisions 2b, 3, 4, and 4a, are repealed. 
 68.20     (b) Minnesota Statutes 1994, sections 124.311; and 124.573, 
 68.21  subdivisions 1, 2, 2b, 2e, 2f, 3a, and 5a, are repealed. 
 68.22     Sec. 22.  [EFFECTIVE DATE.] 
 68.23     (a) Section 21, paragraph (a), is effective July 1, 1995. 
 68.24     (b) Section 21, paragraph (b), is effective July 1, 1996. 
 68.25                             ARTICLE 4 
 68.26                         COMMUNITY PROGRAMS 
 68.27     Section 1.  Minnesota Statutes 1994, section 124.261, 
 68.28  subdivision 1, is amended to read: 
 68.29     Subdivision 1.  [AID ELIGIBILITY.] Adult high school 
 68.30  graduation aid for eligible pupils age 21 or over, equals 65 
 68.31  28.5 percent of the general education formula allowance times 
 68.32  1.30 times the average daily membership under section 124.17, 
 68.33  subdivision 2e.  Adult high school graduation aid must be paid 
 68.34  in addition to any other aid to the district.  Pupils age 21 or 
 68.35  over may not be counted by the district for any purpose other 
 68.36  than adult high school graduation aid. 
 69.1      Sec. 2.  Minnesota Statutes 1994, section 124.2713, 
 69.2   subdivision 3, is amended to read: 
 69.3      Subd. 3.  [GENERAL COMMUNITY EDUCATION REVENUE.] The 
 69.4   general community education revenue for a district equals $5.95 
 69.5   for fiscal year 1996 and $4.95 for fiscal year 1997 and later 
 69.6   times the greater of 1,335 or the population of the district.  
 69.7   The population of the district is determined according to 
 69.8   section 275.14.  
 69.9      Sec. 3.  Minnesota Statutes 1994, section 124.2713, 
 69.10  subdivision 6, is amended to read: 
 69.11     Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
 69.12  education revenue, a district may levy the amount raised by a 
 69.13  tax rate of 1.13 percent for fiscal year 1995 and thereafter, 
 69.14  times the adjusted net tax capacity of the district.  If the 
 69.15  amount of the community education levy would exceed the 
 69.16  community education revenue, the community education levy shall 
 69.17  be determined according to subdivision 6a.  
 69.18     Sec. 4.  [APPROPRIATIONS.] 
 69.19     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 69.20  indicated in this section are appropriated from the general fund 
 69.21  or other named fund to the department of education for the 
 69.22  fiscal years designated. 
 69.23     Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
 69.24  education aid according to Minnesota Statutes, sections 124.26 
 69.25  in fiscal year 1996 and 124.2601 in fiscal year 1997:  
 69.26       $8,374,000    .....    1996
 69.27       $8,374,000    .....    1997 
 69.28     The 1996 appropriation includes $1,256,000 for 1995 and 
 69.29  $7,118,000 for 1996.  
 69.30     The 1997 appropriation includes $1,256,000 for 1996 and 
 69.31  $7,118,000 for 1997.  
 69.32     Up to $199,000 each year may be used for contracts with 
 69.33  private, nonprofit organizations for approved programs.  
 69.34     Subd. 3.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
 69.35  adults with disabilities programs according to Minnesota 
 69.36  Statutes, section 124.2715: 
 70.1        $577,000    .....    1996 
 70.2        $577,000    .....    1997 
 70.3      Any balance in the first year does not cancel and is 
 70.4   available for the second year. 
 70.5      Subd. 4.  [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with 
 70.6   funds received under Minnesota Statutes, section 171.29, 
 70.7   subdivision 2, paragraph (b), clause (4): 
 70.8        $514,000     .....     1996
 70.9        $514,000     .....     1997
 70.10     (b) These appropriations are from the alcohol-impaired 
 70.11  driver account of the special revenue fund.  Any funds credited 
 70.12  for the department of education to the alcohol-impaired driver 
 70.13  account of the special revenue fund in excess of the amounts 
 70.14  appropriated in this subdivision are appropriated to the 
 70.15  department of education and available in fiscal year 1996 and 
 70.16  fiscal year 1997. 
 70.17     (c) Up to $226,000 each year may be used by the department 
 70.18  of education to contract for services to school districts 
 70.19  stressing the dangers of driving after consuming alcohol.  No 
 70.20  more than five percent of this amount may be used for 
 70.21  administrative costs by the contract recipients. 
 70.22     (d) Up to $88,000 each year may be used for grants to 
 70.23  support student-centered programs to discourage driving after 
 70.24  consuming alcohol. 
 70.25     (e) Up to $200,000 and any additional funds each year may 
 70.26  be used for chemical abuse prevention grants. 
 70.27     Subd. 5.  [COMMUNITY EDUCATION AID.] For community 
 70.28  education aid according to Minnesota Statutes, section 124.2713: 
 70.29       $2,826,000    .....    1996 
 70.30       $  846,000    .....    1997 
 70.31     The 1996 appropriation includes $499,000 for 1995 and 
 70.32  $2,327,000 for 1996.  
 70.33     The 1997 appropriation includes $410,000 for 1996 and 
 70.34  $436,000 for 1997.  
 70.35     Subd. 6.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 70.36  childhood family education aid according to Minnesota Statutes, 
 71.1   section 124.2711: 
 71.2        $13,919,000    .....    1996 
 71.3        $13,921,000    .....    1997 
 71.4      The 1996 appropriation includes $2,086,000 for 1995 and 
 71.5   $11,833,000 for 1996.  
 71.6      The 1997 appropriation includes $2,088,000 for 1996 and 
 71.7   $11,833,000 for 1997.  
 71.8      $10,000 each year may be spent for evaluation of early 
 71.9   childhood family education programs.  
 71.10     Subd. 7.  [EXTENDED DAY AID.] For extended day aid: 
 71.11       $58,000        .....     1996 
 71.12       $ -0-          .....     1997
 71.13     The 1996 appropriation includes $58,000 for 1995 and $0 for 
 71.14  1996. 
 71.15     The 1997 appropriation includes $0 for 1996 and $0 for 1997.
 71.16     Subd. 8.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
 71.17  health and developmental screening aid according to Minnesota 
 71.18  Statutes, sections 123.702 and 123.7045: 
 71.19       $1,352,000    .....    1996 
 71.20       $1,317,000    .....    1997 
 71.21     The 1996 appropriation includes $232,000 for 1995 and 
 71.22  $1,120,000 for 1996.  
 71.23     The 1997 appropriation includes $197,000 for 1996 and 
 71.24  $1,120,000 for 1997.  
 71.25     Any balance in the first year does not cancel but is 
 71.26  available in the second year.  
 71.27     Subd. 9.  [HEARING IMPAIRED ADULTS.] For programs for 
 71.28  hearing impaired adults according to Minnesota Statutes, section 
 71.29  121.201: 
 71.30       $60,000     .....     1996
 71.31       $60,000     .....     1997
 71.32     Subd. 10.  [ADULT GRADUATION AID.] For adult graduation aid:
 71.33       $1,866,000     .....     1996
 71.34       $2,000,000     .....     1997
 71.35     The 1996 appropriation includes $336,000 for 1995 and 
 71.36  $1,530,000 for 1996.  
 72.1      The 1997 appropriation includes $269,000 for 1996 and 
 72.2   $1,731,000 for 1997.  
 72.3      Subd. 11.  [GED TESTS.] For payment of 60 percent of the 
 72.4   costs of GED tests: 
 72.5        $126,000     .....     1996
 72.6        $126,000     .....     1997
 72.7      Any balance in the first year does not cancel but is 
 72.8   available in the second year. 
 72.9      Subd. 12.  [GED COORDINATION.] For GED coordination: 
 72.10       $ 52,000     .....     1996
 72.11       $ 52,000     .....     1997
 72.12     Subd. 13.  [OMBUDSPERSONS.] For ombudspersons: 
 72.13       $ 33,000     .....     1996
 72.14       $ 36,000     .....     1997
 72.15     The appropriation is made to the office of ombudspersons 
 72.16  for families for purposes of funding the activities of the 
 72.17  ombudsperson authorized by Minnesota Statutes, sections 257.0755 
 72.18  to 257.0768.  Any balance in 1996 is available until June 30, 
 72.19  1997.  
 72.20     Subd. 14.  [WAY TO GROW.] For grants for existing way to 
 72.21  grow programs according to Minnesota Statutes, section 121.835:  
 72.22       $409,000     .....    1996
 72.23       $409,000     .....    1997
 72.24     Any balance in the first year does not cancel but is 
 72.25  available in the second year. 
 72.26     Subd. 15.  [LEARNING READINESS PROGRAM REVENUE.] For 
 72.27  revenue for learning readiness programs: 
 72.28       $9,504,000      .....     1996
 72.29       $9,505,000      .....     1997
 72.30     The 1996 appropriation includes $1,424,000 for 1995 and 
 72.31  $8,080,000 for 1996. 
 72.32     The 1997 appropriation includes $1,425,000 for 1996 and 
 72.33  $8,080,000 for 1997.  
 72.34     $10,000 each year may be spent for evaluation of learning 
 72.35  readiness programs. 
 72.36     Subd. 16.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
 73.1   violence prevention education grants: 
 73.2        $1,500,000      .....     1996
 73.3        $1,500,000      .....     1997
 73.4      Of the amount each year, $50 is for program administration. 
 73.5      Any balance in the first year does not cancel but is 
 73.6   available in the second year. 
 73.7      Subd. 17.  [PART H.] For part H: 
 73.8        $    -0-        .....     1996
 73.9        $  400,000      .....     1997
 73.10     Subd. 18.  [FAMILY COLLABORATIVES.] For family 
 73.11  collaboratives: 
 73.12       $3,500,000      .....     1996
 73.13       $4,000,000      .....     1997
 73.14     Any balance in the first year does not cancel but is 
 73.15  available in the second year. 
 73.16     Sec. 5.  [REPEALER.] 
 73.17     (a) Minnesota Statutes 1994, section 124.2716, is repealed. 
 73.18     (b) Minnesota Statutes 1994, sections 124.2713, 
 73.19  subdivisions 1, 5, and 9; and 124.2714, are repealed. 
 73.20     Sec. 6.  [EFFECTIVE DATE.] 
 73.21     (a) Section 5, paragraph (a), is effective July 1, 1995. 
 73.22     (b) Section 5, paragraph (b), is effective July 1, 1996. 
 73.23                             ARTICLE 5
 73.24                             FACILITIES
 73.25     Section 1.  Minnesota Statutes 1994, section 124.243, 
 73.26  subdivision 2, is amended to read: 
 73.27     Subd. 2.  [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a) For 
 73.28  fiscal years 1994 and 1995, Capital expenditure facilities 
 73.29  previous formula revenue for a district equals $128 $123 times 
 73.30  its actual pupil units for the school year. 
 73.31     (b) For fiscal years 1996 and later, capital expenditure 
 73.32  facilities revenue for a district equals $100 $96 times the 
 73.33  district's maintenance cost index times its actual pupil units 
 73.34  for the school year. 
 73.35     (c) A district's capital expenditure facilities revenue for 
 73.36  a school year shall be reduced if the unreserved balance in the 
 74.1   capital expenditure facilities account on June 30 of the prior 
 74.2   school year exceeds $675 times the fund balance pupil units in 
 74.3   the prior year as defined in section 124A.26, subdivision 1.  If 
 74.4   a district's capital expenditure facilities revenue is reduced, 
 74.5   the reduction equals the lesser of (1) the amount that the 
 74.6   unreserved balance in the capital expenditure facilities account 
 74.7   on June 30 of the prior year exceeds $675 times the fund balance 
 74.8   pupil units in the prior year, or (2) the capital expenditure 
 74.9   facilities revenue for that year. 
 74.10     (d) For 1996 and later fiscal years, the previous formula 
 74.11  revenue equals the amount of revenue computed for the district 
 74.12  according to section 124.243 for fiscal year 1995. 
 74.13     (e) (c) Notwithstanding paragraph (b), for fiscal year 
 74.14  1996, the revenue for each district equals 25 percent of the 
 74.15  amount determined in paragraph (b) plus 75 percent of the 
 74.16  previous formula revenue. 
 74.17     (f) (d) Notwithstanding paragraph (b), for fiscal year 
 74.18  1997, the revenue for each district equals 50 percent of the 
 74.19  amount determined in paragraph (b) plus 50 percent of the 
 74.20  previous formula revenue. 
 74.21     (g) (e) Notwithstanding paragraph (b), for fiscal year 
 74.22  1998, the revenue for each district equals 75 percent of the 
 74.23  amount determined in paragraph (b) plus 25 percent of the 
 74.24  previous formula revenue. 
 74.25     (h) (f) The revenue in paragraph (b) for a district that 
 74.26  operates a program under section 121.585, is increased by an 
 74.27  amount equal to $15 times the number of actual pupil units at 
 74.28  the site where the program is implemented. 
 74.29     Sec. 2.  Minnesota Statutes 1994, section 124.243, is 
 74.30  amended by adding a subdivision to read: 
 74.31     Subd. 2b.  [CAPITAL EXPENDITURE FACILITIES TAX RATE.] (a) 
 74.32  For fiscal year 1996, the capital expenditure facilities tax 
 74.33  rate is 1.39 percent. 
 74.34     (b) For fiscal year 1997 and thereafter, the commissioner 
 74.35  shall establish the capital expenditure facilities tax rate by 
 74.36  July 1 each year for taxes payable in the following year.  The 
 75.1   capital expenditure facilities tax rate shall be a rate, rounded 
 75.2   up to the nearest hundredth of a percent, that, when applied to 
 75.3   the adjusted net tax capacity for all districts, raises the 
 75.4   amount specified for the capital expenditure facilities levy in 
 75.5   section 124A.231.  The capital expenditure facilities tax rate 
 75.6   may not be changed due to changes or corrections made to a 
 75.7   district's adjusted net tax capacity after the tax rate has been 
 75.8   established. 
 75.9      Sec. 3.  Minnesota Statutes 1994, section 124.243, 
 75.10  subdivision 3, is amended to read: 
 75.11     Subd. 3.  [CAPITAL EXPENDITURE FACILITIES LEVY.] To obtain 
 75.12  capital expenditure facilities revenue, a district may levy an 
 75.13  amount not to exceed the lesser of: 
 75.14     (1) the capital expenditure facilities revenue determined 
 75.15  in subdivision 2 multiplied by the lesser of one, or the ratio 
 75.16  of: 
 75.17     (1) the quotient derived by dividing the adjusted net tax 
 75.18  capacity of the district for the year preceding the year the 
 75.19  levy is certified by the actual pupil units in the district for 
 75.20  the school year to which the levy is attributable, to 
 75.21     (2) 100 percent of the equalizing factor for the school 
 75.22  year to which the levy is attributable.; or 
 75.23     (2) the amount raised by the capital expenditure facilities 
 75.24  tax rate times the adjusted net tax capacity of the district for 
 75.25  the preceding year. 
 75.26     Sec. 4.  Minnesota Statutes 1994, section 124.244, 
 75.27  subdivision 1, is amended to read: 
 75.28     Subdivision 1.  [REVENUE AMOUNT.] (a) For fiscal year 1995, 
 75.29  the capital expenditure equipment revenue for each district 
 75.30  equals $66 times its actual pupil units for the school year. 
 75.31     (b) For fiscal years 1996 and later, the capital 
 75.32  expenditure equipment revenue for each district equals $69 $68 
 75.33  times its actual pupil units for the school year.  
 75.34     (c) Of a district's capital expenditure equipment revenue, 
 75.35  $3 times its actual pupil units for the school year shall be 
 75.36  reserved and used according to subdivision 4, paragraph (b). 
 76.1      Sec. 5.  Minnesota Statutes 1994, section 124.244, is 
 76.2   amended by adding a subdivision to read:  
 76.3      Subd. 1a.  [CAPITAL EXPENDITURE EQUIPMENT TAX RATE.] (a) 
 76.4   For fiscal year 1996, the capital expenditure equipment tax rate 
 76.5   is 0.72 percent. 
 76.6      (b) For fiscal year 1997 and thereafter, the commissioner 
 76.7   shall establish the capital expenditure equipment tax rate by 
 76.8   July 1 each year for taxes payable in the following year.  The 
 76.9   capital expenditure equipment tax rate shall be a rate, rounded 
 76.10  up to the nearest hundredth of a percent, that, when applied to 
 76.11  the adjusted net tax capacity for all districts, raises the 
 76.12  amount specified for the capital expenditure equipment levy in 
 76.13  section 124A.231.  The capital expenditure equipment tax rate 
 76.14  may not be changed due to changes or corrections made to a 
 76.15  district's adjusted net tax capacity after the tax rate has been 
 76.16  established. 
 76.17     Sec. 6.  Minnesota Statutes 1994, section 124.244, 
 76.18  subdivision 2, is amended to read: 
 76.19     Subd. 2.  [CAPITAL EXPENDITURE EQUIPMENT LEVY.] To obtain 
 76.20  capital expenditure equipment revenue, a district may levy an 
 76.21  amount not to exceed the lesser of: 
 76.22     (1) the district's capital expenditure equipment revenue as 
 76.23  determined in subdivision 1 multiplied by the lesser of one, or 
 76.24  the ratio of: 
 76.25     (1) the quotient derived by dividing the adjusted net tax 
 76.26  capacity of the district for the year preceding the year the 
 76.27  levy is certified by the actual pupil units in the district for 
 76.28  the school year to which the levy is attributable, to 
 76.29     (2) 100 percent of the equalizing factor for the school 
 76.30  year to which the levy is attributable.; or 
 76.31     (2) the amount raised by the capital expenditure equipment 
 76.32  tax rate times the adjusted net tax capacity of the district for 
 76.33  the preceding year. 
 76.34     Sec. 7.  Minnesota Statutes 1994, section 124.244, 
 76.35  subdivision 4, is amended to read: 
 76.36     Subd. 4.  [USES OF REVENUE.] (a) Capital expenditure 
 77.1   equipment revenue may be used only for the following purposes:  
 77.2      (1) to pay capital expenditure equipment related 
 77.3   assessments of any entity formed under a cooperative agreement 
 77.4   between two or more districts; 
 77.5      (2) to purchase or lease computers and related materials, 
 77.6   copying machines, telecommunications equipment, and other 
 77.7   noninstructional equipment; 
 77.8      (3) to purchase or lease assistive technology or equipment 
 77.9   for instructional programs; 
 77.10     (4) to purchase textbooks; 
 77.11     (5) to purchase new and replacement library books; and 
 77.12     (6) to purchase vehicles except those for which a levy is 
 77.13  authorized under section 124.226, subdivision 6.; and 
 77.14     (b) The reserved capital expenditure equipment revenue 
 77.15  shall only be used (7) to purchase or lease telecommunications 
 77.16  equipment, computers, and related equipment for integrated 
 77.17  information management systems for: 
 77.18     (1) (i) managing and reporting learner outcome information 
 77.19  for all students under a results-oriented graduation rule; 
 77.20     (2) (ii) managing student assessment, services, and 
 77.21  achievement information required for students with individual 
 77.22  education plans; and 
 77.23     (3) (iii) other classroom information management needs. 
 77.24     (c) The equipment obtained with reserved revenue shall be 
 77.25  utilized, to the greatest extent possible given available 
 77.26  funding, on a per instructor or per classroom basis.  A school 
 77.27  district may supplement its reserved revenue with other capital 
 77.28  expenditure equipment revenue, and cash and in-kind grants from 
 77.29  public and private sources. 
 77.30     Sec. 8.  Minnesota Statutes 1994, section 124.2445, is 
 77.31  amended to read: 
 77.32     124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
 77.33     (a) The board of a school district may issue certificates 
 77.34  of indebtedness or capital notes subject to the school district 
 77.35  debt limits to purchase vehicles other than school buses, 
 77.36  computers, telephone systems, cable equipment, photocopy and 
 78.1   office equipment, technological equipment for instruction, and 
 78.2   other capital equipment having an expected useful life at least 
 78.3   as long as the terms of the certificates or notes.  The 
 78.4   certificates or notes must be payable in not more than five 
 78.5   years and must be issued on the terms and in the manner 
 78.6   determined by the board.  The certificates or notes may be 
 78.7   issued by resolution and without the requirement for an 
 78.8   election.  A tax levy must be made for the payment of the 
 78.9   principal and interest on the certificates or notes, in 
 78.10  accordance with section 475.61, as in the case of bonds.  That 
 78.11  tax levy for each year must not exceed the amount of the 
 78.12  district's capital expenditure equipment levy under section 
 78.13  124.244 for the year the initial debt service levies are 
 78.14  certified.  The district's capital expenditure levy under 
 78.15  section 124.244 for each year must be reduced by the amount of 
 78.16  the tax levies for debt service certified for each year 
 78.17     (b) A school district issuing certificates of indebtedness 
 78.18  or capital notes under this section must annually transfer from 
 78.19  the equipment account in the capital expenditure fund to the 
 78.20  debt redemption fund the amount needed for payment of the 
 78.21  principal and interest on the certificates or notes as required 
 78.22  by section 475.61.  
 78.23     Sec. 9.  Minnesota Statutes 1994, section 124.248, is 
 78.24  amended by adding a subdivision to read: 
 78.25     Subd. 2a.  [CAPITAL EXPENDITURE FACILITIES 
 78.26  REVENUE.] Capital expenditure facilities aid shall be paid to an 
 78.27  outcome-based school according to section 124.243, subdivision 
 78.28  2, as though it were a school district.  Capital expenditure 
 78.29  facilities aid shall equal capital expenditure facilities 
 78.30  revenue.  Capital expenditure facilities aid may be used as 
 78.31  provided under section 124.243, subdivision 6, except as limited 
 78.32  by subdivision 5.  
 78.33     Sec. 10.  Minnesota Statutes 1994, section 124.248, 
 78.34  subdivision 4, is amended to read: 
 78.35     Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) An 
 78.36  outcome-based school is eligible to receive other aids, grants, 
 79.1   and revenue according to chapters 120 to 129, as though it were 
 79.2   a school district except that, notwithstanding section 124.195, 
 79.3   subdivision 3, the payments shall be of an equal amount on each 
 79.4   of the 23 payment dates unless an outcome-based school is in its 
 79.5   first year of operation in which case it shall receive on its 
 79.6   first payment date 15 percent of its cumulative amount 
 79.7   guaranteed for the year and 22 payments of an equal amount 
 79.8   thereafter the sum of which shall be 85 percent of the 
 79.9   cumulative amount guaranteed.  However, it may not receive aid, 
 79.10  a grant, or revenue if a levy is required to obtain the money, 
 79.11  except as otherwise provided in this section.  Federal aid 
 79.12  received by the state must be paid to the school, if it 
 79.13  qualifies for the aid as though it were a school district.  A 
 79.14  school may apply for federal grants as though it were a school 
 79.15  district. 
 79.16     (b) Any revenue received from any source, other than 
 79.17  revenue that is specifically allowed for operational, 
 79.18  maintenance, capital facilities revenue under paragraph (c), and 
 79.19  capital expenditure equipment costs under this section, may be 
 79.20  used only for the planning and operational start-up costs of an 
 79.21  outcome-based school.  Any unexpended revenue from any source 
 79.22  under this paragraph must be returned to that revenue source or 
 79.23  conveyed to the sponsoring school district, at the discretion of 
 79.24  the revenue source. 
 79.25     (c) In addition to the capital expenditure facilities 
 79.26  revenue according to subdivision 2a, an outcome-based school may 
 79.27  receive money from any source for capital facilities needs.  Any 
 79.28  unexpended capital facilities revenue must be reserved and shall 
 79.29  be expended only for future capital facilities purposes. 
 79.30     Sec. 11.  Minnesota Statutes 1994, section 124.95, 
 79.31  subdivision 6, is amended to read: 
 79.32     Subd. 6.  [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 
 79.33  Debt service equalization aid must be paid as 
 79.34  follows:  one-third 30 percent before September 15, one-third 30 
 79.35  percent before December 15, and one-third 25 percent before 
 79.36  March 15 of each year, and a final payment of 15 percent by July 
 80.1   15 of the subsequent fiscal year. 
 80.2      Sec. 12.  Minnesota Statutes 1994, section 124.961, is 
 80.3   amended to read: 
 80.4      124.961 [DEBT SERVICE APPROPRIATION.] 
 80.5      (a) $17,000,000 in fiscal year 1994, $26,000,000 in fiscal 
 80.6   year 1995, and $31,600,000 in fiscal year 1996, $31,875,000 in 
 80.7   fiscal year 1997, and $37,500,000 in fiscal year 1998 and each 
 80.8   year thereafter is appropriated from the general fund to the 
 80.9   commissioner of education for payment of debt service 
 80.10  equalization aid under section 124.95.  The 1994 1998 
 80.11  appropriation includes $3,000,000 for 1993 and $14,000,000 for 
 80.12  1994 $5,625,000 for 1997 and $31,875,000 for 1998. 
 80.13     (b) The appropriations in paragraph (a) must be reduced by 
 80.14  the amount of any money specifically appropriated for the same 
 80.15  purpose in any year from any state fund. 
 80.16     Sec. 13.  [APPROPRIATIONS.] 
 80.17     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 80.18  indicated in this section are appropriated from the general fund 
 80.19  to the department of education for the fiscal years designated. 
 80.20     Subd. 2.  [CAPITAL EXPENDITURE FACILITIES AID.] For capital 
 80.21  expenditure facilities aid according to Minnesota Statutes, 
 80.22  section 124.243, subdivision 5:  
 80.23       $70,296,000     .....     1996 
 80.24       $71,228,000     .....     1997
 80.25     The 1996 appropriation includes $11,233,000 for 1995 and 
 80.26  $59,063,000 for 1996.  
 80.27     The 1997 appropriation includes $10,422,000 for 1996 and 
 80.28  $60,806,000 for 1997.  
 80.29     Subd. 3.  [CAPITAL EXPENDITURE EQUIPMENT AID.] For capital 
 80.30  expenditure equipment aid according to Minnesota Statutes, 
 80.31  section 124.244, subdivision 3:  
 80.32       $38,992,000     .....     1996 
 80.33       $39,781,000     .....     1997 
 80.34     The 1996 appropriation includes $5,792,000 for 1995 and 
 80.35  $33,200,000 for 1996.  
 80.36     The 1997 appropriation includes $5,858,000 for 1996 and 
 81.1   $33,923,000 for 1997.  
 81.2      Subd. 4.  [HEALTH AND SAFETY AID.] (a) For health and 
 81.3   safety aid according to Minnesota Statutes, section 124.83, 
 81.4   subdivision 5: 
 81.5        $15,629,000     .....     1996 
 81.6        $12,298,000     .....     1997 
 81.7      The 1996 appropriation includes $2,606,000 for 1995 and 
 81.8   $13,023,000 for 1996.  
 81.9      The 1997 appropriation includes $2,216,000 for 1996 and 
 81.10  $10,082,000 for 1997.  
 81.11     (b) $400,000 in fiscal year 1996 and $400,000 in fiscal 
 81.12  year 1997 is for health and safety management assistance 
 81.13  contracts under Minnesota Statutes, section 124.83. 
 81.14     (c) $60,000 of each year's appropriation shall be used to 
 81.15  contract with the state fire marshal to provide services under 
 81.16  Minnesota Statutes, section 121.1502. 
 81.17     Subd. 5.  [DEBT SERVICE AID.] For debt service aid 
 81.18  according to Minnesota Statutes, section 124.95, subdivision 5: 
 81.19       $30,248,000     .....     1996
 81.20       $31,875,000     .....     1997
 81.21     The 1996 appropriation includes $0 for 1995 and $30,248,000 
 81.22  for 1996. 
 81.23     The 1997 appropriation includes $0 for 1996 and $31,875,000 
 81.24  for 1997. 
 81.25     Sec. 14.  [REPEALER.] 
 81.26     (a) Minnesota Statutes 1994, section 124.962, is repealed. 
 81.27     (b) Minnesota Statutes 1994, section 124.243, subdivision 
 81.28  2a, is repealed. 
 81.29     (c) Minnesota Statutes 1994, section 124.243, subdivision 
 81.30  9, is repealed. 
 81.31     Sec. 15.  [EFFECTIVE DATE.] 
 81.32     (a) Section 1 is effective July 1, 1995, except that the 
 81.33  repeal of the reduction of the capital expenditure facilities 
 81.34  revenue in the stricken paragraph (c) is effective for fiscal 
 81.35  year 1997 and thereafter.  
 81.36     (b) Section 14, paragraph (a), is effective July 1, 1995. 
 82.1      (c) Section 14, paragraph (b), is effective July 1, 1996. 
 82.2      (d) Section 14, paragraph (c), is effective for taxes 
 82.3   payable in 1996 for fiscal year 1997. 
 82.4                              ARTICLE 6 
 82.5                EDUCATION ORGANIZATION AND COOPERATION 
 82.6      Section 1.  Minnesota Statutes 1994, section 124.2725, 
 82.7   subdivision 1, is amended to read: 
 82.8      Subdivision 1.  [ELIGIBILITY.] A school district is 
 82.9   eligible for cooperation and combination revenue if it has a 
 82.10  plan approved by the commissioner according to section 
 82.11  122.243 and it levied under subdivision 3 for taxes payable in 
 82.12  1995.  
 82.13     Sec. 2.  Minnesota Statutes 1994, section 124.2725, 
 82.14  subdivision 15, is amended to read: 
 82.15     Subd. 15.  [RETIREMENT AND SEVERANCE LEVY.] A cooperating 
 82.16  or combined district that levied under subdivision 3 for taxes 
 82.17  payable in 1995 may levy for severance pay or early retirement 
 82.18  incentives for licensed and nonlicensed employees who retire 
 82.19  early as a result of the cooperation or combination. 
 82.20     Sec. 3.  Minnesota Statutes 1994, section 124.2726, 
 82.21  subdivision 2, is amended to read: 
 82.22     Subd. 2.  [AID.] (a) Consolidation transition aid is equal 
 82.23  to $200 times the number of actual pupil units in the newly 
 82.24  created district in the year of consolidation and $100 times the 
 82.25  number of actual pupil units in the first year following the 
 82.26  year of consolidation.  The number of pupil units used to 
 82.27  calculate aid in either year shall not exceed 1,000.  
 82.28     (b) If the total appropriation for consolidation transition 
 82.29  aid for any fiscal year, plus any amount transferred under 
 82.30  section 124.14, subdivision 7, is insufficient to pay all 
 82.31  districts the full amount of aid earned, the department of 
 82.32  education shall first pay the districts in the first year 
 82.33  following the year of consolidation the full amount of aid 
 82.34  earned and distribute any remaining funds to the newly created 
 82.35  districts in the first year of consolidation. 
 82.36     Sec. 4.  Minnesota Statutes 1994, section 124.2727, 
 83.1   subdivision 6a, is amended to read: 
 83.2      Subd. 6a.  [DISTRICT COOPERATION REVENUE.] A district's 
 83.3   cooperation revenue for fiscal year 1996 is equal to the greater 
 83.4   of $67 times the actual pupil units or $25,000. 
 83.5      Sec. 5.  Minnesota Statutes 1994, section 124.2728, 
 83.6   subdivision 1, is amended to read: 
 83.7      Subdivision 1.  [ELIGIBILITY.] A school district that 
 83.8   reorganizes under section 122.23 or sections 122.241 to 122.248 
 83.9   effective on or after July 1, 1994, is eligible for special 
 83.10  consolidation aid under this section.  A district may receive 
 83.11  aid under this section for only three years. 
 83.12     Sec. 6.  [APPROPRIATIONS.] 
 83.13     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 83.14  indicated in this section are appropriated from the general fund 
 83.15  or other named fund to the department of education for the 
 83.16  fiscal years designated. 
 83.17     Subd. 2.  [CAPITAL FACILITY GRANTS FOR COOPERATION AND 
 83.18  COMBINATION.] For competitive grants under Minnesota Statutes, 
 83.19  section 124C.60: 
 83.20       $  408,000     .....     1996
 83.21     Subd. 3.  [CONSOLIDATION TRANSITION AID.] For districts 
 83.22  consolidating under Minnesota Statutes, section 124.2726: 
 83.23       $  826,000     .....     1996
 83.24       $  913,000     .....     1997
 83.25     The 1996 appropriation includes $75,000 for 1995 and 
 83.26  $751,000 for 1996. 
 83.27     The 1997 appropriation includes $132,000 for 1996 and 
 83.28  $781,000 for 1997. 
 83.29     Subd. 4.  [COOPERATION AND COMBINATION AID.] For aid for 
 83.30  districts that cooperate and combine according to Minnesota 
 83.31  Statutes, section 124.2725: 
 83.32       $3,298,000     .....     1996 
 83.33       $1,954,000     .....     1997 
 83.34     The 1996 appropriation includes $542,000 for 1995 and 
 83.35  $2,756,000 for 1996.  
 83.36     The 1997 appropriation includes $486,000 for 1996 and 
 84.1   $1,468,000 for 1997.  
 84.2      Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 84.3   cooperation revenue aid: 
 84.4        $11,793,000    .....     1996
 84.5        $ 1,715,000    .....     1997
 84.6      The 1996 appropriation includes $2,073,000 for 1995 and 
 84.7   $9,720,000 for 1996. 
 84.8      The 1997 appropriation includes $1,715,000 for 1996 and $0 
 84.9   for 1997. 
 84.10     Subd. 6.  [SPECIAL CONSOLIDATION AID.] For special 
 84.11  consolidation aid under Minnesota Statutes, section 124.2728: 
 84.12       $    75,000    .....     1996
 84.13       $    40,000    .....     1997
 84.14     The 1996 appropriation includes $12,000 for 1995 and 
 84.15  $63,000 for 1996. 
 84.16     The 1997 appropriation includes $9,000 for 1996 and $31,000 
 84.17  for 1997. 
 84.18     Subd. 7.  [TRANSITION AID FOR INFORMATION SUPPORT.] For 
 84.19  information reporting support and software: 
 84.20       $   500,000    .....     1996
 84.21       $   250,000    .....     1997
 84.22     Sec. 7.  [REPEALER.] 
 84.23     Minnesota Statutes 1994, section 124.2727, subdivision 6a, 
 84.24  is repealed. 
 84.25     Sec. 8.  [EFFECTIVE DATE.] 
 84.26     Section 7 is effective July 1, 1996. 
 84.27                             ARTICLE 7 
 84.28                      COMMITMENT TO EXCELLENCE 
 84.29     Section 1.  Minnesota Statutes 1994, section 120.064, 
 84.30  subdivision 3, is amended to read: 
 84.31     Subd. 3.  [SPONSOR.] A school board or a public 
 84.32  post-secondary institution with an approved teacher training 
 84.33  program may sponsor one or more outcome-based schools. 
 84.34     A school board may authorize a maximum of five 
 84.35  outcome-based schools. 
 84.36     No more than a total of 35 outcome-based schools may be 
 85.1   authorized.  The state board of education shall advise potential 
 85.2   sponsors when the maximum number of outcome-based schools has 
 85.3   been authorized. 
 85.4      Sec. 2.  Minnesota Statutes 1994, section 120.064, 
 85.5   subdivision 4, is amended to read: 
 85.6      Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 85.7   authorize one or more licensed teachers under section 125.05, 
 85.8   subdivision 1, to operate an outcome-based school subject to 
 85.9   approval by the state board of education.  If a school board 
 85.10  elects not to sponsor an outcome-based school, the applicant may 
 85.11  appeal the school board's decision to the state board of 
 85.12  education if two members of the school board voted to sponsor 
 85.13  the school.  If the state board authorizes the school, the state 
 85.14  board shall sponsor the school according to this section.  The 
 85.15  school shall be organized and operated as a cooperative under 
 85.16  chapter 308A or nonprofit corporation under chapter 317A.  
 85.17     (b) Before the operators may form and operate a school, the 
 85.18  sponsor must file an affidavit with the state board of education 
 85.19  stating its intent to authorize an outcome-based school.  The 
 85.20  affidavit must state the terms and conditions under which the 
 85.21  sponsor would authorize an outcome-based school.  The state 
 85.22  board must approve or disapprove the sponsor's proposed 
 85.23  authorization within 30 60 days of receipt of the affidavit.  
 85.24  Failure to obtain state board approval precludes a sponsor from 
 85.25  authorizing the outcome-based school that was the subject of the 
 85.26  affidavit.  
 85.27     (c) The operators authorized to organize and operate a 
 85.28  school shall hold an election for members of the school's board 
 85.29  of directors in a timely manner after the school is operating.  
 85.30  Any staff members who are employed at the school, including 
 85.31  teachers providing instruction under a contract with a 
 85.32  cooperative, and all parents of children enrolled in the school 
 85.33  may participate in the election.  Licensed teachers employed at 
 85.34  the school, including teachers providing instruction under a 
 85.35  contract with a cooperative, must be a majority of the members 
 85.36  of the board of directors when the school employs at least three 
 86.1   teachers.  A provisional board may operate before the election 
 86.2   of the school's board of directors.  
 86.3      Sec. 3.  Minnesota Statutes 1994, section 120.064, 
 86.4   subdivision 8, is amended to read: 
 86.5      Subd. 8.  [REQUIREMENTS.] (a) An outcome-based school shall 
 86.6   meet all applicable state and local health and safety 
 86.7   requirements. 
 86.8      (b) The school must be located in the sponsoring district, 
 86.9   unless another school board agrees to locate an outcome-based 
 86.10  school sponsored by another district in its boundaries.  If a 
 86.11  school board denies a request to locate within its boundaries an 
 86.12  outcome-based school sponsored by another district, the 
 86.13  sponsoring district may appeal to the state board of education.  
 86.14  If the state board authorizes the school, the state board shall 
 86.15  sponsor the school.  A post-secondary institution must request 
 86.16  permission from a district to locate a school within its 
 86.17  boundaries.  If the school district denies permission to locate 
 86.18  the school within its boundaries, the post-secondary institution 
 86.19  may appeal to the state board.  
 86.20     (c) The school must be nonsectarian in its programs, 
 86.21  admission policies, employment practices, and all other 
 86.22  operations.  A sponsor may not authorize an outcome-based school 
 86.23  or program that is affiliated with a nonpublic sectarian school 
 86.24  or a religious institution. 
 86.25     (d) The primary focus of the school must be to provide a 
 86.26  comprehensive program of instruction for at least one grade or 
 86.27  age group from five through 18 years of age.  Instruction may be 
 86.28  provided to people younger than five years and older than 18 
 86.29  years of age. 
 86.30     (e) The school may not charge tuition. 
 86.31     (f) The school is subject to and shall comply with chapter 
 86.32  363 and section 126.21. 
 86.33     (g) The school is subject to and shall comply with the 
 86.34  pupil fair dismissal act, sections 127.26 to 127.39, and the 
 86.35  Minnesota public school fee law, sections 120.71 to 120.76. 
 86.36     (h) The school is subject to the same financial audits, 
 87.1   audit procedures, and audit requirements as a school district.  
 87.2   The audit must be consistent with the requirements of sections 
 87.3   121.904 to 121.917, except to the extent deviations are 
 87.4   necessary because of the program at the school.  The department 
 87.5   of education, state auditor, or legislative auditor may conduct 
 87.6   financial, program, or compliance audits. 
 87.7      (i) The school is a school district for the purposes of 
 87.8   tort liability under chapter 466. 
 87.9      (j) The school may belong to joint powers organizations and 
 87.10  other cooperative groups that are designed to serve school 
 87.11  districts.  
 87.12     Sec. 4.  [124.282] [LEARNER IMPROVEMENT REVENUE.] 
 87.13     Subdivision 1.  [LEARNER IMPROVEMENT REVENUE.] (a) For a 
 87.14  district that has demonstrated progress toward implementing the 
 87.15  results-oriented graduation standards according to subdivision 
 87.16  2, learner improvement revenue equals the greater of $67 times 
 87.17  the actual pupil units or $25,000; 
 87.18     (b) For a district that has not demonstrated progress 
 87.19  toward implementing the results-oriented graduation standards 
 87.20  according to subdivision 2, learner improvement revenue equals 
 87.21  the greater of $60 times the actual pupil units or $20,000; 
 87.22     Subd. 2.  [CRITERIA FOR MEASURING PROGRESS.] To be eligible 
 87.23  for the additional $7 per pupil unit, a district must show 
 87.24  progress towards implementation of the results-oriented system 
 87.25  driven by the graduation standards.  "Progress" shall be based 
 87.26  on the district's documented results articulated in its 
 87.27  five-year plan for implementation of the results-oriented 
 87.28  system.  By February 1, 1996, each district shall create a 
 87.29  five-year implementation plan and the expected results.  The 
 87.30  commissioner of education shall design and authorize a report 
 87.31  format and criteria for determination of a district's progress.  
 87.32  The department of education shall review district plans and the 
 87.33  documentation of results on a yearly basis over the next five 
 87.34  years and then award the $7 per pupil unit. 
 87.35     Subd. 3.  [LEARNER IMPROVEMENT LEVY.] To receive learner 
 87.36  improvement revenue, a district may levy an amount equal to the 
 88.1   district's learner improvement revenue multiplied by the lesser 
 88.2   of one, or the ratio of the quotient derived by dividing the 
 88.3   adjusted net tax capacity of the district for the year preceding 
 88.4   the year the levy is certified by the actual pupil units in the 
 88.5   district for the school year to which the levy is attributable 
 88.6   to $3,500. 
 88.7      Subd. 4.  [LEARNER IMPROVEMENT AID.] A district's learner 
 88.8   improvement aid is the difference between its learner 
 88.9   improvement revenue and its learner improvement levy.  If a 
 88.10  district does not levy the entire amount permitted, aid must be 
 88.11  reduced in proportion to the actual amount levied. 
 88.12     Subd. 5.  [REVENUE USES.] (a) A district must place its 
 88.13  learner improvement revenue in a reserved account and may only 
 88.14  use the revenue for the following purposes: 
 88.15     (1) to maintain or reduce the school district's instructor 
 88.16  to learner ratios; 
 88.17     (2) to prepare and use individualized learning plans for 
 88.18  each learner; 
 88.19     (3) to provide staff development programs for the purpose 
 88.20  of improving student performance; 
 88.21     (4) to provide parent involvement programs; 
 88.22     (5) to provide secondary vocational education programs; 
 88.23     (6) to provide education services in a cooperative manner 
 88.24  or to purchase goods and services from entities formed for 
 88.25  cooperative purposes; 
 88.26     (7) to implement the new "results-oriented" graduation 
 88.27  standards; 
 88.28     (8) to provide or expand advanced placement and 
 88.29  international baccalaureate offerings; and 
 88.30     (9) to provide programs for implementing school site 
 88.31  decision-making practices, involving staff members, students, 
 88.32  and parents. 
 88.33     (b) A district that was a member of an intermediate school 
 88.34  district organized under chapter 136D on July 1, 1994, must 
 88.35  demonstrate that it provides, individually or in cooperation 
 88.36  with other entities, the full range of special education and 
 89.1   secondary vocational programs and services available to each 
 89.2   child served by the intermediate.  The secondary vocational 
 89.3   programs and service must meet the requirements established in 
 89.4   an articulation agreement developed between the state board of 
 89.5   education and the higher education board. 
 89.6      Subd. 6.  [PRORATION.] (a) If the total appropriation 
 89.7   available for learner improvement aid for any fiscal year, plus 
 89.8   any amount transferred under section 124.14, subdivision 7, is 
 89.9   insufficient to pay all districts the full amount of aid earned, 
 89.10  the department of education shall reduce each district's 
 89.11  district cooperation revenue according to the calculations in 
 89.12  paragraphs (b) to (d). 
 89.13     (b) If there is insufficient learner improvement aid 
 89.14  available, the department must recompute the learner improvement 
 89.15  revenue by proportionally reducing the formula allowance and the 
 89.16  revenue minimum to the levels that result in an aid entitlement, 
 89.17  adjusted by the percentage in section 124.195, subdivision 10, 
 89.18  equal to the amount available.  The levy amounts must not be 
 89.19  recomputed. 
 89.20     (c) A district's proration aid reduction is equal to the 
 89.21  lesser of zero, or the difference of the existing aid 
 89.22  calculation minus the aid amount computed for the district under 
 89.23  paragraph (b). 
 89.24     (d) If a district's proration aid reduction is less than 
 89.25  its revenue reduction, its learner improvement levy authority 
 89.26  for the following year must be reduced by the amount of the 
 89.27  difference between its revenue reduction and its aid reduction. 
 89.28     Sec. 5.  [124.2448] [INSTRUCTIONAL TECHNOLOGY REVENUE.] 
 89.29     Subdivision 1.  [REVENUE AMOUNT.] For fiscal years 1997 and 
 89.30  later, the instructional technology revenue for each school 
 89.31  district equals the greater of $9 times its actual pupil units 
 89.32  for the school year or $25,000. 
 89.33     Subd. 2.  [INSTRUCTIONAL TECHNOLOGY LEVY.] To obtain 
 89.34  instructional technology revenue, a district may levy the amount 
 89.35  raised by a tax rate of 0.5 percent times the adjusted net tax 
 89.36  capacity of the district for the year preceding the year the 
 90.1   levy is certified.  If the amount of the instructional 
 90.2   technology levy would exceed the instructional technology 
 90.3   revenue, the instructional technology levy shall equal the 
 90.4   instructional technology revenue. 
 90.5      Subd. 3.  [INSTRUCTIONAL TECHNOLOGY AID.] A district's 
 90.6   instructional technology aid is the difference between its 
 90.7   instructional technology revenue and its instructional 
 90.8   technology levy.  If the district does not levy the entire 
 90.9   amount permitted, the instructional technology aid shall be 
 90.10  reduced in proportion to the actual amount levied. 
 90.11     Subd. 4.  [USES OF REVENUE.] Instructional technology 
 90.12  revenue may be used only for the following purposes:  
 90.13     (1) for the construction, maintenance, and lease cost of an 
 90.14  interactive television system for instructional purposes; and 
 90.15     (2) for the purchase, maintenance, professional 
 90.16  development, and support of computer hardware and software for 
 90.17  instructional purposes, and to track student assessment data and 
 90.18  other information relating to the graduation standards. 
 90.19     Subd. 5.  [ACCOUNTING.] Instructional technology revenue 
 90.20  must be placed in the equipment account in the capital 
 90.21  expenditure fund. 
 90.22     Sec. 6.  [APPROPRIATIONS.] 
 90.23     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 90.24  indicated in this section are appropriated from the general fund 
 90.25  to the department of education for the fiscal years designated. 
 90.26     Subd. 2.  [INTERACTIVE TELEVISION (ITV) AID AND LEVY.] For 
 90.27  interactive television (ITV) aid and levy: 
 90.28       $2,573,000    .....    1996 
 90.29       $6,807,000    .....    1997 
 90.30     The 1996 appropriation includes $473,000 for 1995 and 
 90.31  $2,100,000 for 1996. 
 90.32     The 1997 appropriation includes $370,000 for 1996 and 
 90.33  $6,437,000 for 1997. 
 90.34     Subd. 3.  [INTERNET.] For Internet: 
 90.35       $200,000    .....    1996 
 90.36       $200,000    .....    1997 
 91.1      Subd. 4.  [MATH-SCIENCE GRANT.] For math-science programs: 
 91.2        $1,292,000     .....     1996
 91.3        $1,292,000     .....     1997
 91.4      Any balance remaining in the first year does not cancel, 
 91.5   but is available in the second year. 
 91.6      Subd. 5.  [GRADUATION STANDARDS AND ASSESSMENTS.] (a) For 
 91.7   accelerated development of the state board of education 
 91.8   graduation rule: 
 91.9        $10,000,000     .....     1996
 91.10       $ 5,000,000     .....     1997
 91.11     In addition, $188,000 each year is appropriated from the 
 91.12  special revenue fund for this activity. 
 91.13     (b) The appropriation is to be used to fund continued 
 91.14  assessment and standards development and piloting; to broaden 
 91.15  public understanding through communication; to continue 
 91.16  development of learning benchmarks; for ongoing statewide 
 91.17  assessment efforts; to develop system performance standards; and 
 91.18  to provide technical assistance to schools throughout the 
 91.19  state.  The appropriation from the special revenue fund is to be 
 91.20  used for appropriate development efforts in health-related 
 91.21  standards and assessments.  Any amount of this appropriation 
 91.22  does not cancel and shall be carried forward to the following 
 91.23  fiscal year.  Notwithstanding any law to the contrary, the 
 91.24  commissioner may contract for national expertise and related 
 91.25  services in each of these development areas. 
 91.26     Subd. 6.  [EDUCATIONAL EFFECTIVENESS.] For educational 
 91.27  effectiveness programs according to Minnesota Statutes, section 
 91.28  121.608: 
 91.29       $   749,000     .....     1996
 91.30       $   749,000     .....     1997
 91.31     Subd. 7.  [ACADEMIC EXCELLENCE FOUNDATION.] (a) For the 
 91.32  academic excellence foundation according to Minnesota Statutes, 
 91.33  section 121.612:  
 91.34       $   452,000     .....     1996
 91.35       $   452,000     .....     1997
 91.36     (b) Up to $50,000 each year is contingent upon the match of 
 92.1   $1 in the previous year from private sources consisting of 
 92.2   either direct monetary contributions or in-kind contributions of 
 92.3   related goods or services, for each $1 of the appropriation.  
 92.4   The commissioner of education must certify receipt of the money 
 92.5   or documentation for the private matching funds or in-kind 
 92.6   contributions.  The unencumbered balance from the amount 
 92.7   actually appropriated from the contingent amount in 1996 does 
 92.8   not cancel but is available in 1997.  The amount carried forward 
 92.9   must not be used to establish a larger annual base appropriation 
 92.10  for later fiscal years. 
 92.11     Subd. 8.  [CHARTER SCHOOLS START-UP.] For charter schools 
 92.12  start-up: 
 92.13       $   100,000     .....     1996
 92.14       $   100,000     .....     1997
 92.15     Subd. 9.  [LEARNER IMPROVEMENT.] For learner improvement: 
 92.16       $   -0-         .....     1996
 92.17       $10,358,000     .....     1997
 92.18     The 1997 appropriation includes $0 for 1996 and $10,358,000 
 92.19  for 1997. 
 92.20     Sec. 7.  [REPEALER.] 
 92.21     Minnesota Statutes 1994, section 124.91, subdivision 5, is 
 92.22  repealed. 
 92.23     Sec. 8.  [EFFECTIVE DATE.] 
 92.24     Section 7 is effective for taxes payable in 1996 for fiscal 
 92.25  year 1997. 
 92.26                             ARTICLE 8
 92.27                      OTHER EDUCATION PROGRAMS
 92.28     Section 1.  Minnesota Statutes 1994, section 124.214, 
 92.29  subdivision 2, is amended to read: 
 92.30     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
 92.31  sections 270.07, 375.192, or otherwise, the net tax capacity of 
 92.32  any school district for any taxable year is changed after the 
 92.33  taxes for that year have been spread by the county auditor and 
 92.34  the local tax rate as determined by the county auditor based 
 92.35  upon the original net tax capacity is applied upon the changed 
 92.36  net tax capacities, the county auditor shall, prior to February 
 93.1   1 of each year, certify to the commissioner of education the 
 93.2   amount of any resulting net revenue loss that accrued to the 
 93.3   school district during the preceding year.  Each year, the 
 93.4   commissioner shall pay an abatement adjustment to the district 
 93.5   in an amount calculated according to the provisions of this 
 93.6   subdivision.  This amount shall be deducted from the amount of 
 93.7   the levy authorized by section 124.912, subdivision 9.  The 
 93.8   amount of the abatement adjustment shall be the product of:  
 93.9      (1) the net revenue loss as certified by the county 
 93.10  auditor, times 
 93.11     (2) the ratio of:  
 93.12     (a) the sum of the amounts of the district's certified levy 
 93.13  in the preceding year according to the following:  
 93.14     (i) section 124A.23 if the district receives received 
 93.15  general education aid according to that section for the second 
 93.16  preceding year, or section 124B.20, if the education district of 
 93.17  which the district is a member receives general education aid 
 93.18  according to that section; 
 93.19     (ii) section 124.226, subdivisions 1 and 4, if the district 
 93.20  receives received transportation aid according to section 
 93.21  124.225 for the second preceding year; 
 93.22     (iii) section 124.243, if the district receives received 
 93.23  capital expenditure facilities aid according to that section for 
 93.24  the second preceding year; 
 93.25     (iv) section 124.244, if the district receives received 
 93.26  capital expenditure equipment aid according to that section for 
 93.27  the second preceding year; 
 93.28     (v) section 124.83, if the district receives received 
 93.29  health and safety aid according to that section for the second 
 93.30  preceding year; 
 93.31     (vi) sections 124.2713, 124.2714, and 124.2715, if the 
 93.32  district receives received aid for community education programs 
 93.33  according to any of those sections for the second preceding 
 93.34  year; 
 93.35     (vii) section 124.2711, subdivision 2a, if the district 
 93.36  receives received early childhood family education aid according 
 94.1   to section 124.2711 for the second preceding year; 
 94.2      (viii) section 124.321, subdivision 3, if the district 
 94.3   receives received special education levy equalization aid 
 94.4   according to that section for the second preceding year; 
 94.5      (ix) section 124A.03, subdivision 1g, if the district 
 94.6   receives received referendum equalization aid according to that 
 94.7   section for the second preceding year; and 
 94.8      (x) section 124A.22, subdivision 4a, if the district 
 94.9   receives received training and experience aid according to that 
 94.10  section for the second preceding year; 
 94.11     (b) to the total amount of the district's certified levy in 
 94.12  the preceding October, plus or minus auditor's adjustments. 
 94.13     Sec. 2.  Minnesota Statutes 1994, section 124.214, 
 94.14  subdivision 3, is amended to read: 
 94.15     Subd. 3.  [EXCESS TAX INCREMENT.] If a return of excess tax 
 94.16  increment is made to a school district pursuant to section 
 94.17  469.176, subdivision 2, or upon decertification of a tax 
 94.18  increment district, the school district's aid and levy 
 94.19  limitations must be adjusted for the fiscal year in which the 
 94.20  excess tax increment is paid under the provisions of this 
 94.21  subdivision. 
 94.22     (a) An amount must be subtracted from the school district's 
 94.23  aid for the current fiscal year equal to the product of: 
 94.24     (1) the amount of the payment of excess tax increment to 
 94.25  the school district, times 
 94.26     (2) the ratio of: 
 94.27     (A) the sum of the amounts of the school district's 
 94.28  certified levy for the fiscal year in which the excess tax 
 94.29  increment is paid according to the following: 
 94.30     (i) section 124A.23, if the district receives received 
 94.31  general education aid according to that section, or section 
 94.32  124B.20, if the education district of which the district is a 
 94.33  member receives general education aid according to that 
 94.34  section for the second preceding year; 
 94.35     (ii) section 124.226, subdivisions 1 and 4, if the school 
 94.36  district receives received transportation aid according to 
 95.1   section 124.225 for the second preceding year; 
 95.2      (iii) section 124.243, if the district receives received 
 95.3   capital expenditure facilities aid according to that section for 
 95.4   the second preceding year; 
 95.5      (iv) section 124.244, if the district receives received 
 95.6   capital expenditure equipment aid according to that section for 
 95.7   the second preceding year; 
 95.8      (v) section 124.83, if the district receives received 
 95.9   health and safety aid according to that section for the second 
 95.10  preceding year; 
 95.11     (vi) sections 124.2713, 124.2714, and 124.2715, if the 
 95.12  district receives received aid for community education programs 
 95.13  according to any of those sections for the second preceding 
 95.14  year; 
 95.15     (vii) section 124.2711, subdivision 2a, if the district 
 95.16  receives received early childhood family education aid according 
 95.17  to section 124.2711 for the second preceding year; 
 95.18     (viii) section 124.321, subdivision 3, if the district 
 95.19  receives received special education levy equalization aid 
 95.20  according to that section for the second preceding year; 
 95.21     (ix) section 124A.03, subdivision 1g, if the district 
 95.22  receives received referendum equalization aid according to that 
 95.23  section for the second preceding year; and 
 95.24     (x) section 124A.22, subdivision 4a, if the district 
 95.25  receives received training and experience aid according to that 
 95.26  section for the second preceding year; 
 95.27     (B) to the total amount of the school district's certified 
 95.28  levy for the fiscal year, plus or minus auditor's adjustments. 
 95.29     (b) An amount must be subtracted from the school district's 
 95.30  levy limitation for the next levy certified equal to the 
 95.31  difference between: 
 95.32     (1) the amount of the distribution of excess increment, and 
 95.33     (2) the amount subtracted from aid pursuant to clause (a). 
 95.34     If the aid and levy reductions required by this subdivision 
 95.35  cannot be made to the aid for the fiscal year specified or to 
 95.36  the levy specified, the reductions must be made from aid for 
 96.1   subsequent fiscal years, and from subsequent levies.  The school 
 96.2   district shall use the payment of excess tax increment to 
 96.3   replace the aid and levy revenue reduced under this subdivision. 
 96.4      This subdivision applies only to the total amount of excess 
 96.5   increments received by a school district for a calendar year 
 96.6   that exceeds $25,000. 
 96.7      Sec. 3.  Minnesota Statutes 1994, section 125.05, 
 96.8   subdivision 1a, is amended to read: 
 96.9      Subd. 1a.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
 96.10  (a) The board of teaching shall issue licenses under its 
 96.11  jurisdiction to persons the board finds to be qualified and 
 96.12  competent for their respective positions. 
 96.13     (b) The board shall require a person to successfully 
 96.14  complete an examination of skills in reading, writing, and 
 96.15  mathematics before being granted an initial teaching license to 
 96.16  provide direct instruction to pupils in prekindergarten, 
 96.17  elementary, secondary, or special education programs.  The board 
 96.18  shall require colleges and universities offering a board 
 96.19  approved teacher preparation program to provide remedial 
 96.20  assistance that includes a formal diagnostic component to 
 96.21  persons enrolled in their institution who did not achieve a 
 96.22  qualifying score on the skills examination, including those for 
 96.23  whom English is a second language.  The colleges and 
 96.24  universities must provide assistance in the specific academic 
 96.25  areas of deficiency in which the person did not achieve a 
 96.26  qualifying score.  School districts must provide similar, 
 96.27  appropriate, and timely remedial assistance that includes a 
 96.28  formal diagnostic component and mentoring to those persons 
 96.29  employed by the district who completed their teacher education 
 96.30  program outside the state of Minnesota, received a one-year 
 96.31  license to teach in Minnesota and did not achieve a qualifying 
 96.32  score on the skills examination, including those persons for 
 96.33  whom English is a second language. 
 96.34     (c) In fiscal year 1999, and thereafter, in addition to the 
 96.35  requirements in paragraph (b), the board shall require a person, 
 96.36  who is an applicant for an initial elementary or secondary 
 97.1   teaching license, to demonstrate, to the satisfaction of the 
 97.2   board, the following: 
 97.3      (1) knowledge of the philosophy and contents of Minnesota's 
 97.4   graduation standards; 
 97.5      (2) at least a B average in coursework required for 
 97.6   graduation; 
 97.7      (3) at least a B average in English composition including 
 97.8   demonstration of writing skills traditionally associated with 
 97.9   completion of at least one additional year of composition or 
 97.10  technical writing beyond the general requirement for a BA; and 
 97.11     (4) knowledge of and practice in using current software and 
 97.12  other technology for improving student learning. 
 97.13     (d) In fiscal year 1999, and thereafter, in addition to the 
 97.14  requirements in paragraphs (b) and (c), the board shall require 
 97.15  a person, who is an applicant for an initial secondary teaching 
 97.16  license, to demonstrate, to the satisfaction of the board, the 
 97.17  following: 
 97.18     (1) a major with at least a B average in each academic 
 97.19  discipline the person is seeking certification to teach; 
 97.20     (2) skills in teaching and evaluating reading, including 
 97.21  technical reading, if appropriate, using the academic discipline 
 97.22  for which certification is sought; 
 97.23     (3) skills in the teaching and evaluating of communication, 
 97.24  including technical writing, if appropriate, using the academic 
 97.25  discipline for which certification is sought; and 
 97.26     (4) an evaluation of the prospective teacher's performance 
 97.27  in an internship including an evaluation of the ability to use 
 97.28  the chosen academic field as a medium for developing a student's 
 97.29  general reading, writing, and speaking skills. 
 97.30     (e) In fiscal year 1999, and thereafter, in addition to the 
 97.31  requirements in paragraphs (b) and (c), the board shall require 
 97.32  a person, who is an applicant for an initial elementary teaching 
 97.33  license, to demonstrate, to the satisfaction of the board, the 
 97.34  following: 
 97.35     (1) completion of coursework with at least an overall B 
 97.36  average in: 
 98.1      (i) eight quarter credits or the equivalent in semester 
 98.2   credits in college-level math or computer science; 
 98.3      (ii) eight quarter credits or the equivalent in semester 
 98.4   credits in college-level natural sciences; 
 98.5      (iii) 12 quarter credits or the equivalent in semester 
 98.6   credits in American history, political science, or both; 
 98.7      (iv) 12 quarter credits or the equivalent in semester 
 98.8   credits in western civilization, humanities, arts, or 
 98.9   literature; and 
 98.10     (v) 12 quarter credits or the equivalent in semester 
 98.11  credits in nonwestern civilization, humanities, arts, or 
 98.12  literature; 
 98.13     (2) skills in teaching and evaluating reading; 
 98.14     (3) skills in teaching and evaluating writing; 
 98.15     (4) skills in teaching and evaluating mathematics; and 
 98.16     (5) an evaluation of the prospective teacher's performance 
 98.17  in an internship including an evaluation of the use of a variety 
 98.18  of subject areas as the foundation for developing student's 
 98.19  general communication skills. 
 98.20     (f) A person who has completed an approved teacher 
 98.21  preparation program and obtained a one-year license to teach, 
 98.22  but has not successfully completed the skills examination, may 
 98.23  renew the one-year license for two additional one-year periods.  
 98.24  Each renewal of the one-year license is contingent upon the 
 98.25  licensee: 
 98.26     (1) providing evidence of participating in an approved 
 98.27  remedial assistance program provided by a school district or 
 98.28  post-secondary institution that includes a formal diagnostic 
 98.29  component in the specific areas in which the licensee did not 
 98.30  obtain qualifying scores; and 
 98.31     (2) attempting to successfully complete the skills 
 98.32  examination during the period of each one-year license. 
 98.33     (d) (g) The board of teaching shall grant continuing 
 98.34  licenses only to those persons who have met board criteria for 
 98.35  granting a continuing license, which includes successfully 
 98.36  completing the skills examination in reading, writing, and 
 99.1   mathematics. 
 99.2      Sec. 4.  Minnesota Statutes 1994, section 125.623, 
 99.3   subdivision 2, is amended to read: 
 99.4      Subd. 2.  [GRANTS.] The commissioner of education in 
 99.5   consultation with the multicultural advisory committee 
 99.6   established in section 126.82 desegregation/integration advisory 
 99.7   board established in section 121.1601, subdivision 3, shall 
 99.8   award grants for professional development programs to recruit 
 99.9   and educate people of color in the field of education, including 
 99.10  early childhood and parent education.  Grant applicants must be 
 99.11  a school district with a growing minority population working in 
 99.12  collaboration with a state institution of higher education with 
 99.13  an approved teacher licensure program or an approved early 
 99.14  childhood or parent education licensure program. 
 99.15     Sec. 5.  [UNRECOVERED RAILROAD AID.] 
 99.16     Unrecovered railroad aid payments pursuant to Laws 1984, 
 99.17  chapter 502, article 9, section 5, shall be adjusted from the 
 99.18  school district's aid in fiscal year 1997.  If the aid reduction 
 99.19  required by this section cannot be made to the aid for fiscal 
 99.20  year 1997, the reduction must be made from aid for subsequent 
 99.21  fiscal years. 
 99.22     Sec. 6.  [APPROPRIATIONS.] 
 99.23     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums in this 
 99.24  section are appropriated, unless otherwise indicated, from the 
 99.25  general fund to the department of education for the fiscal years 
 99.26  designated. 
 99.27     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
 99.28  Minnesota Statutes, section 124.214:  
 99.29       $22,541,000     .....     1996 
 99.30       $ 9,605,000     .....     1997 
 99.31     The 1996 appropriation includes $1,135,000 for 1995 and 
 99.32  $21,406,000 for 1996.  
 99.33     The 1997 appropriation includes $3,777,000 for 1996 and 
 99.34  $5,828,000 for 1997.  
 99.35     Subd. 3.  [INTEGRATION GRANTS.] (a) For grants to districts 
 99.36  implementing desegregation plans mandated by the state board: