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Chapter 125A

Section 125A.76

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125A.76 SPECIAL EDUCATION REVENUE.
    Subdivision 1. Definitions. For the purposes of this section, the definitions in this subdivision
apply.
    (a) "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.
    (b) "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.
    (c) "Average daily membership" has the meaning given it in section 126C.05.
    (d) "Program growth factor" means 1.046 for fiscal year 2012 and later.
    Subd. 2. Special education initial aid. The special education initial aid equals the sum of
the following amounts computed using current 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 general education revenue, excluding basic skills revenue and alternative teacher
compensation revenue, and referendum equalization aid attributable to a pupil, calculated using
the resident district's average general education revenue and referendum equalization aid per
adjusted pupil unit for the fraction of the school day the pupil receives services under the contract.
This includes children who are residents of the state, receive services under this subdivision and
subdivision 1, and are placed in a care and treatment facility by court action in a state that does
not have a reciprocity agreement with the commissioner under section 125A.155 as provided for
in section 125A.79, subdivision 8;
    (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;
    (7) the cost of providing transportation services for children with disabilities under section
123B.92, subdivision 1, paragraph (b), clause (4); and
    (8) the district's transition-disabled program initial aid according to section 124D.454,
subdivision 3
.
    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.
    Subd. 3.[Repealed, 2007 c 146 art 3 s 25]
    Subd. 4. State total special education aid. The state total special education aid equals
$529,247,000 for fiscal year 2007, $694,063,000 for fiscal year 2008, $719,470,000 for fiscal year
2009, $735,693,000 for fiscal year 2010, and $786,586,000 for fiscal year 2011. 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 school district's special education aid for
fiscal year 2008 and later equals the state total special education aid times the ratio of the district's
initial special education aid to the state total initial special education aid.
    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.
    Subd. 8. Special education forecast maintenance of effort. (a) If, on the basis of a forecast
of general fund revenues and expenditures under section 16A.103, the state's expenditures for
special education and related services for children with disabilities from nonfederal sources for
a fiscal year, including special education aid under section 125A.76; special education excess
cost aid under section 125A.76, subdivision 7; travel for home-based services under section
125A.75, subdivision 1; aid for students with disabilities under section 125A.75, subdivision 3;
court-placed special education under section 125A.79, subdivision 4; out-of-state tuition under
section 125A.79, subdivision 8; and direct expenditures by state agencies are projected to be less
than the amount required to meet federal special education maintenance of effort, the additional
amount required to meet federal special education maintenance of effort is added to the state total
special education aid in section 125A.76, subdivision 4.
    (b) If, on the basis of a forecast of general fund revenues and expenditures under section
16A.103, expenditures in the programs in paragraph (a) are projected to be greater than previously
forecast for an enacted budget, and an addition to state total special education aid has been made
under paragraph (a), the state total special education aid must be reduced by the lesser of the
amount of the expenditure increase or the amount previously added to state total special education
aid in section 125A.76, subdivision 4.
    (c) For the purpose of this section, "previously forecast for an enacted budget" means the
allocation of funding for these programs in the most recent forecast of general fund revenues
and expenditures or the act appropriating money for these programs, whichever occurred most
recently. It does not include planning estimates for a future biennium.
    (d) If the amount of special education aid is adjusted in accordance with this subdivision, the
commissioner of education shall notify the chairs of the legislative committees having jurisdiction
over kindergarten through grade 12 education regarding the amount of the adjustment and provide
an explanation of the federal maintenance of effort requirements.
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; 2007 c 146 art 3 s 11-15

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.

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