1.1                          A bill for an act 
  1.2             relating to education finance; providing parallel 
  1.3             special education funding for school districts and 
  1.4             charter schools; modifying the pupil count used to 
  1.5             adjust special education revenue amounts; amending 
  1.6             Minnesota Statutes 2002, sections 124D.11, subdivision 
  1.7             5; 125A.76, subdivision 3; Minnesota Statutes 2003 
  1.8             Supplement, sections 125A.76, subdivisions 1, 4; 
  1.9             125A.79, subdivisions 1, 6. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 124D.11, 
  1.12  subdivision 5, is amended to read: 
  1.13     Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
  1.14  subdivision 2, special education aid must be paid to a charter 
  1.15  school according to ~~section~~ sections 125A.76 and 125A.79, as 
  1.16  though it were a school district.  The charter school may not 
  1.17  charge tuition to the district of residence as provided in 
  1.18  section 125A.11.  
  1.19     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  1.20  fiscal year 2005.  
  1.21     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  1.22  125A.76, subdivision 1, is amended to read: 
  1.23     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  1.24  section, the definitions in this subdivision apply. 
  1.25     (a) "Base year" for fiscal year 1998 and later fiscal years 
  1.26  means the second fiscal year preceding the fiscal year for which 
  1.27  aid will be paid. 
  2.1      (b) "Basic revenue" has the meaning given it in section 
  2.2   126C.10, subdivision 2.  For the purposes of computing basic 
  2.3   revenue pursuant to this section, each child with a disability 
  2.4   shall be counted as prescribed in section 126C.05, subdivision 1.
  2.5      (c) "Essential personnel" means teachers, cultural 
  2.6   liaisons, related services, and support services staff providing 
  2.7   direct services to students.  Essential personnel may also 
  2.8   include special education paraprofessionals or clericals 
  2.9   providing support to teachers and students by preparing 
  2.10  paperwork and making arrangements related to special education 
  2.11  compliance requirements, including parent meetings and 
  2.12  individual education plans. 
  2.13     (d) "Average daily membership" has the meaning given it in 
  2.14  section 126C.05. 
  2.15     (e) "Program growth factor" means 1.046 for fiscal year 
  2.16  2003, and 1.0 for fiscal year 2004 and later. 
  2.17     (f) "IEP student count" means a district's unduplicated 
  2.18  count of students with individual education plans.  
  2.19     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.20  fiscal year 2005.  
  2.21     Sec. 3.  Minnesota Statutes 2002, section 125A.76, 
  2.22  subdivision 3, is amended to read: 
  2.23     Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
  2.24  fiscal year ~~1997~~ 2005 and later, a district's adjusted special 
  2.25  education base revenue equals the district's special education 
  2.26  base revenue times the ratio of the district's ~~average daily~~ 
  2.27  ~~membership~~ IEP student count for the current school year to the 
  2.28  district's ~~average daily membership~~ IEP student count for the 
  2.29  base year.  
  2.30     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  2.31  125A.76, subdivision 4, is amended to read: 
  2.32     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION AID.] The state 
  2.33  total special education aid for fiscal year 2004 equals 
  2.34  $530,642,000.  The state total special education aid for fiscal 
  2.35  year 2005 equals $529,164,000.  The state total special 
  2.36  education aid for later fiscal years equals:  
  3.1      (1) the state total special education aid for the preceding 
  3.2   fiscal year; times 
  3.3      (2) the program growth factor; times 
  3.4      (3) the ratio of the state total ~~average daily membership~~ 
  3.5   IEP student count for the current fiscal year to the state total 
  3.6   ~~average daily membership~~ IEP student count for the preceding 
  3.7   fiscal year. 
  3.8      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.9   fiscal year 2005.  
  3.10     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  3.11  125A.79, subdivision 1, is amended to read: 
  3.12     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  3.13  section, the definitions in this subdivision apply. 
  3.14     (a) "Unreimbursed special education cost" means the sum of 
  3.15  the following: 
  3.16     (1) expenditures for teachers' salaries, contracted 
  3.17  services, supplies, equipment, and transportation services 
  3.18  eligible for revenue under section 125A.76; plus 
  3.19     (2) expenditures for tuition bills received under sections 
  3.20  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
  3.21  under section 125A.76, subdivision 2; minus 
  3.22     (3) revenue for teachers' salaries, contracted services, 
  3.23  supplies, and equipment under section 125A.76; minus 
  3.24     (4) tuition receipts under sections 125A.03 to 125A.24 and 
  3.25  125A.65 for services eligible for revenue under section 125A.76, 
  3.26  subdivision 2. 
  3.27     (b) "General revenue" means for fiscal year 1996, the sum 
  3.28  of the general education revenue according to section 126C.10, 
  3.29  subdivision 1, as adjusted according to section 127A.47, 
  3.30  subdivision 7, plus the total referendum revenue according to 
  3.31  section 126C.17, subdivision 4.  For fiscal years 1997 and 
  3.32  later, "general revenue" means the sum of the general education 
  3.33  revenue according to section 126C.10, subdivision 1, as adjusted 
  3.34  according to section 127A.47, subdivisions 7 and 8, plus the 
  3.35  total referendum revenue minus transportation sparsity revenue 
  3.36  minus total operating capital revenue.  
  4.1      (c) "Average daily membership" has the meaning given it in 
  4.2   section 126C.05. 
  4.3      (d) "Program growth factor" means 1.02 for fiscal year 
  4.4   2003, and 1.0 for fiscal year 2004 and later. 
  4.5      (e) "IEP student count" means a district's unduplicated 
  4.6   count of students with individual education plans.  
  4.7      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  4.8   fiscal year 2005.  
  4.9      Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  4.10  125A.79, subdivision 6, is amended to read: 
  4.11     Subd. 6.  [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 
  4.12  The state total special education excess cost aid for fiscal 
  4.13  year 2004 equals $92,067,000.  The state total special education 
  4.14  aid for fiscal year 2005 equals $91,811,000.  The state total 
  4.15  special education excess cost aid for fiscal year 2006 and later 
  4.16  fiscal years equals: 
  4.17     (1) the state total special education excess cost aid for 
  4.18  the preceding fiscal year; times 
  4.19     (2) the program growth factor; times 
  4.20     (3) the ratio of the state total ~~average daily membership~~ 
  4.21  IEP student count for the current fiscal year to the state total 
  4.22  ~~average daily membership~~ IEP student count for the preceding 
  4.23  fiscal year.  
  4.24     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  4.25  fiscal year 2005.