2006 Minnesota Statutes

125A.76 SPECIAL EDUCATION REVENUE.
    Subdivision 1. Definitions. For the purposes of this section, the definitions in this subdivision
apply.
(a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal year
preceding the fiscal year for which aid will be paid.
(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. For the
purposes of computing basic revenue pursuant to this section, each child with a disability shall be
counted as prescribed in section 126C.05, subdivision 1.
(c) "Essential personnel" means teachers, cultural liaisons, related services, and support
services staff providing direct services to students. Essential personnel may also include special
education paraprofessionals or clericals providing support to teachers and students by preparing
paperwork and making arrangements related to special education compliance requirements,
including parent meetings and individual education plans.
(d) "Average daily membership" has the meaning given it in section 126C.05.
(e) "Program growth factor" means 1.046 for fiscal year 2003, and 1.0 for fiscal year 2004
and later.
    Subd. 2. Special education base revenue. (a) The special education base revenue equals the
sum of the following amounts computed using base year data:
(1) 68 percent of the salary of each essential person employed in the district's program for
children with a disability during the fiscal year, whether the person is employed by one or more
districts or a Minnesota correctional facility operating on a fee-for-service basis;
(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy for
the Blind, 68 percent of the salary of each instructional aide assigned to a child attending the
academy, if that aide is required by the child's individual education plan;
(3) for special instruction and services provided to any pupil by contracting with public,
private, or voluntary agencies other than school districts, in place of special instruction and
services provided by the district, 52 percent of the difference between the amount of the contract
and the amount of the basic revenue, as defined in section 126C.10, subdivision 2, special
education aid, and any other aid earned on behalf of the child for the fraction of the school day
the pupil receives services under the contract;
(4) for special instruction and services provided to any pupil by contracting for services with
public, private, or voluntary agencies other than school districts, that are supplementary to a full
educational program provided by the school district, 52 percent of the amount of the contract for
that pupil;
(5) for supplies and equipment purchased or rented for use in the instruction of children with
a disability, an amount equal to 47 percent of the sum actually expended by the district, or a
Minnesota correctional facility operating on a fee-for-service basis, but not to exceed an average
of $47 in any one school year for each child with a disability receiving instruction;
(6) for fiscal years 1997 and later, special education base revenue shall include amounts
under clauses (1) to (5) for special education summer programs provided during the base year for
that fiscal year; and
(7) for fiscal years 1999 and later, the cost of providing transportation services for children
with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4).
The department shall establish procedures through the uniform financial accounting and
reporting system to identify and track all revenues generated from third-party billings as special
education revenue at the school district level; include revenue generated from third-party billings
as special education revenue in the annual cross-subsidy report; and exclude third-party revenue
from calculation of excess cost aid to the districts.
(b) If requested by a school district operating a special education program during the
base year for less than the full fiscal year, or a school district in which is located a Minnesota
correctional facility operating on a fee-for-service basis for less than the full fiscal year, the
commissioner may adjust the base revenue to reflect the expenditures that would have occurred
during the base year had the program been operated for the full fiscal year.
(c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base revenue
attributable to a Minnesota correctional facility operating on a fee-for-service basis during the
facility's first year of operating on a fee-for-service basis shall be computed using current year data.
    Subd. 3. Adjusted special education base revenue. For fiscal year 1997 and later, a district's
adjusted special education base revenue equals the district's special education base revenue times
the ratio of the district's average daily membership for the current school year to the district's
average daily membership for the base year.
    Subd. 4. State total special education aid. The state total special education aid for fiscal
year 2004 equals $530,642,000. The state total special education aid for fiscal year 2005 equals
$529,164,000. The state total special education aid for later fiscal years equals:
(1) the state total special education aid for the preceding fiscal year; times
(2) the program growth factor; times
(3) the greater of one, or the ratio of the state total average daily membership for the current
fiscal year to the state total average daily membership for the preceding fiscal year.
    Subd. 5. School district special education aid. (a) A school district's special education
aid for fiscal year 2000 and later equals the state total special education aid, minus the amount
determined under paragraphs (b) and (c), times the ratio of the district's adjusted special education
base revenue to the state total adjusted special education base revenue. If the commissioner of
education modifies its rules for special education in a manner that increases a district's special
education obligations or service requirements, the commissioner shall annually increase each
district's special education aid by the amount necessary to compensate for the increased service
requirements. The additional aid equals the cost in the current year attributable to rule changes
not reflected in the computation of special education base revenue, multiplied by the appropriate
percentages from subdivision 2.
(b) Notwithstanding paragraph (a), if the special education base revenue for a district
equals zero, the special education aid equals the amount computed according to subdivision
2 using current year data.
(c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for a district
is greater than zero, and the base year amount for the district under subdivision 2, paragraph
(a), clause (7), equals zero, the special education aid equals the sum of the amount computed
according to paragraph (a), plus the amount computed according to subdivision 2, paragraph (a),
clause (7), using current year data.
(d) A charter school under section 124D.10 shall generate state special education aid based
on current year expenditures for its first four years of operation and only in its fifth and later
years shall paragraphs (a), (b), and (c) apply.
    Subd. 6.[Repealed, 1999 c 241 art 2 s 62]
    Subd. 7. Revenue allocation from cooperative centers and intermediates. For the
purposes of this section, a special education cooperative, a service cooperative, an education
district, or an intermediate district must allocate its approved expenditures for special education
programs among participating school districts.
History: 1Sp1995 c 3 art 15 s 10; art 16 s 13; 1996 c 412 art 3 s 19-24; 1997 c 7 art 1 s 54;
1Sp1997 c 4 art 2 s 19-22; 1998 c 397 art 2 s 99-101,164; art 11 s 3; 1998 c 398 art 1 s 22; art 2
s 27; art 5 s 55; 1999 c 241 art 2 s 37-40; 1999 c 245 art 4 s 5; 2000 c 489 art 3 s 11,12; art 10 s
10; 2000 c 499 s 32; 1Sp2001 c 6 art 3 s 12,13; 2002 c 294 s 5; 2002 c 375 art 3 s 3; 2003 c
130 s 12; 1Sp2003 c 9 art 3 s 13,14; 1Sp2005 c 5 art 3 s 10

NOTE: The amendment to subdivision 4 by Laws 2005, First Special Session chapter 5,
article 3, section 10, is effective for revenue for fiscal year 2008. Laws 2005, First Special Session
chapter 5, article 3, section 10, the effective date.