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Minnesota Legislature

Office of the Revisor of Statutes

127A.47 PAYMENTS TO RESIDENT AND NONRESIDENT DISTRICTS.
    Subdivision 1. Aid to serving district. (a) Unless otherwise specifically provided by law,
general education aid must be paid according to this subdivision.
(b) Except as provided in paragraph (c), general education aid must be paid to the serving
district.
(c) If the resident district pays tuition for a pupil under section 123A.18, 123A.22, 123A.30,
123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24,
125A.51, or 125A.65, general education aid, excluding basic skills revenue under section
126C.10, subdivision 4, must be paid to the resident district.
    Subd. 2. Reporting; revenue for homeless. For all school purposes, unless otherwise
specifically provided by law, a homeless pupil is a resident of the school district that enrolls
the pupil.
    Subd. 3. Revenue for children of divorced or legally separated parents or parents
residing separately. (a) In those instances when the divorced or legally separated parents or
parents residing separately share joint physical custody of the child and the divorced or legally
separated parents or parents residing separately reside in different school districts, for all school
purposes, unless otherwise specifically provided by law, the child must be considered a resident of
the school district, as indicated by the child's parents.
(b) When the child of divorced or legally separated parents or parents residing separately
under paragraph (a) resides with each parent on alternate weeks, the parents shall be responsible
for the transportation of the child to the border of the resident school district during those weeks
when the child resides in the nonresident school district.
    Subd. 4. District without schools. Except as otherwise provided in law, any district not
maintaining classified elementary or secondary schools must pay the tuition required in order
to enable resident pupils to attend school in another district when necessary, and must receive
general education aid on the same basis as other districts. The aid must be computed as if the
pupils were enrolled in the district of residence.
    Subd. 5. Notification of resident district. A district educating a pupil who is a resident
of another district must notify the district of residence within 60 days of the date the pupil is
determined by the district to be a nonresident, but not later than August 1 following the end of
the school year in which the pupil is educated. If the district of residence does not receive a
notification from the providing district pursuant to this subdivision, it is not liable to that district
for any tuition billing received after August 1 of the next school year.
    Subd. 6. State agency and court placements. If a state agency or a court of the state desires
to place a child in a district that is not the child's district of residence or to place a pupil who is a
parent under section 120A.22, subdivision 3, in a school district which is not the school district
in which the pupil's biological or adoptive parent or designated guardian resides, that agency or
court must, before placement, allow the district of residence an opportunity to participate in
the placement decision and notify the district of residence, the district of attendance and the
commissioner of the placement decision. When a state agency or court determines that an
immediate emergency placement is necessary and that time does not permit district participation
in the placement decision or notice to the districts and the commissioner of the placement decision
before the placement, the agency or court may make the decision and placement without that
participation or prior notice. The agency or court must notify the district of residence, the district
of attendance and the commissioner of an emergency placement within 15 days of the placement.
    Subd. 7. Alternative attendance programs. The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments must be made
according to this subdivision.
    (a) General education aid paid to a resident district must be reduced by an amount equal to
the referendum equalization aid attributable to the pupil in the resident district.
    (b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the greater of (1) the referendum
equalization aid attributable to the pupil in the nonresident district; or (2) the product of the
district's open enrollment concentration index, the maximum amount of referendum revenue in
the first tier, and the district's net open enrollment pupil units for that year. A district's open
enrollment concentration index equals the greater of: (i) zero, or (ii) the lesser of 1.0, or the
difference between the district's ratio of open enrollment pupil units served to its resident pupil
units for that year and 0.2. This clause does not apply to a school district where more than 50
percent of the open enrollment students are enrolled solely in online learning courses.
    (c) If the amount of the reduction to be made from the general education aid of the resident
district is greater than the amount of general education aid otherwise due the district, the excess
reduction must be made from other state aids due the district.
    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an area
learning center, operated according to paragraph (f), providing special instruction and services to
a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51,
who is enrolled in a program listed in this subdivision. The tuition must be equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate amount
for special transportation and unreimbursed building lease and debt service costs for facilities
used primarily for special education, minus (2) if the pupil receives special instruction and
services outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom, excluding
portions attributable to district and school administration, district support services, operations
and maintenance, capital expenditures, and pupil transportation, minus (3) special education aid
attributable to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization aid
attributable to a pupil must be calculated using the serving district's average general education
revenue and referendum equalization aid per adjusted pupil unit.
    (e) For fiscal year 2007 and later, special education aid paid to a resident district must be
reduced by an amount equal to (1) the actual cost of providing special instruction and services,
including special transportation and unreimbursed building lease and debt service costs for
facilities used primarily for special education, for a pupil with a disability, as defined in section
125A.02, or a pupil, as defined in section 125A.51, who is enrolled in a program listed in this
subdivision, minus (2) if the pupil receives special instruction and services outside the regular
classroom for more than 60 percent of the school day, the amount of general education revenue
and referendum equalization aid attributable to that pupil for the portion of time the pupil receives
special instruction and services outside of the regular classroom, excluding portions attributable
to district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable to that
pupil, that is received by the district providing special instruction and services. For purposes
of this paragraph, general education revenue and referendum equalization aid attributable to
a pupil must be calculated using the serving district's average general education revenue and
referendum equalization aid per adjusted pupil unit. Special education aid paid to the district or
cooperative providing special instruction and services for the pupil, or to the fiscal agent district
for a cooperative, must be increased by the amount of the reduction in the aid paid to the resident
district. If the resident district's special education aid is insufficient to make the full adjustment,
the remaining adjustment shall be made to other state aids due to the district.
    (f) An area learning center operated by a service cooperative, intermediate district, education
district, or a joint powers cooperative may elect through the action of the constituent boards to
charge the resident district tuition for pupils rather than to have the general education revenue paid
to a fiscal agent school district. Except as provided in paragraph (d) or (e), the district of residence
must pay tuition equal to at least 90 percent of the district average general education revenue per
pupil unit minus an amount equal to the product of the formula allowance according to section
126C.10, subdivision 2, times .0485, calculated without basic skills revenue and transportation
sparsity revenue, times the number of pupil units for pupils attending the area learning center,
plus the amount of compensatory revenue generated by pupils attending the area learning center.
    Subd. 8. Charter schools. (a) The general education aid for districts must be adjusted for
each pupil attending a charter school under section 124D.10. The adjustments must be made
according to this subdivision.
(b) General education aid paid to a district in which a charter school not providing
transportation according to section 124D.10, subdivision 16, is located must be increased by an
amount equal to the sum of:
(1) the product of: (i) the sum of an amount equal to the product of the formula allowance
according to section 126C.10, subdivision 2, times .0485, plus the transportation sparsity
allowance for the district; times (ii) the adjusted marginal cost pupil units attributable to the
pupil; plus
(2) the product of $223 and the extended time marginal cost pupil units attributable to
the pupil.
History: 1981 c 358 art 1 s 28; 1982 c 548 art 1 s 11; 1983 c 314 art 1 s 22; 1987 c 398
art 8 s 10; 1988 c 486 s 56,57; 1988 c 718 art 7 s 32,33; 1989 c 329 art 7 s 5; 1990 c 562 art
3 s 7; 1991 c 130 s 21; 1991 c 199 art 2 s 12; 1991 c 265 art 3 s 38; 1993 c 224 art 3 s 29;
1Sp1995 c 3 art 16 s 13; 1996 c 305 art 1 s 138; 1996 c 412 art 1 s 22; 1997 c 7 art 1 s 65;
1998 c 397 art 4 s 50,51; art 11 s 3; 1998 c 398 art 1 s 26,27; art 2 s 30-32; 1999 c 241 art 1 s
48-50; art 2 s 51; 1Sp2003 c 9 art 5 s 22,23; 2004 c 294 art 1 s 8; 1Sp2005 c 5 art 2 s 73; art
3 s 14; 2007 c 146 art 1 s 16,25; art 3 s 21