2001 Minnesota Statutes

     124D.16 School readiness aid. 

    Subdivision 1.    Program review and approval.  A school 
 district shall biennially by May 1 submit to the commissioners 
 of children, families, and learning and health the program plan 
 required under this subdivision.  As determined by the 
 commissioners, one-half of the districts shall first submit the 
 plan by May 1 of the 2000-2001 school year and one-half of the 
 districts shall first submit the plan by May 1 of the 2001-2002 
 school year.  The program plan must include: 

    (1) a description of the services to be provided; 

    (2) a plan to ensure children at greatest risk receive 
 appropriate services; 

    (3) a description of procedures and methods to be used to 
 coordinate public and private resources to maximize use of 
 existing community resources, including school districts, health 
 care facilities, government agencies, neighborhood 
 organizations, and other resources knowledgeable in early 
 childhood development; 

    (4) comments about the district's proposed program by the 
 advisory council required by section 124D.15, subdivision 7; and 

    (5) agreements with all participating service providers.  

    Each commissioner may review and comment on the program, 
 and make recommendations to the commissioner of children, 
 families, and learning, within 30 days of receiving the plan. 

    Subd. 2.    Amount of aid.  (a) A district is eligible 
 to receive school readiness aid if the program plan required by 
 subdivision 1 has been approved by the commissioner. 

    (b) For fiscal year 2002 and thereafter, a district must 
 receive school readiness aid equal to: 

    (1) the number of eligible four-year-old children in the 
 district on October 1 for the previous school year times the 
 ratio of 50 percent of the total school readiness aid for that 
 year to the total number of eligible four-year-old children 
 reported to the commissioner for the previous school year; plus 

    (2) the number of pupils enrolled in the school district 
 from families eligible for the free or reduced school lunch 
 program for the second previous school year times the ratio of 
 50 percent of the total school readiness aid for that year to 
 the total number of pupils in the state from families eligible 
 for the free or reduced school lunch program for the second 
 previous school year. 

    Subd. 3.    Use of aid.  School readiness aid shall be 
 used only to provide a school readiness program and may be used 
 to provide transportation.  Not more than five percent of the 
 aid may be used for the cost of administering the program.  Aid 
 must be used to supplement and not supplant local, state, and 
 federal funding.  Aid may not be used for instruction and 
 services required under sections 125A.03 to 125A.24 and 125A.65. 
 Aid may not be used to purchase land or construct buildings, but 
 may be used to lease or renovate existing buildings. 

    Subd. 4.    Separate accounts.  The district must 
 deposit school readiness aid in a separate account within the 
 community education fund.  

    Subd. 5.    Reserve account.  School readiness revenue, 
 which includes aids, fees, grants, and all other revenues 
 received by the district school readiness programs, must be 
 maintained in a reserve account within the community service 
 fund.  

    Subd. 6.    Reserve account limit.  (a) Under this 
 section, the average balance, during the most recent three-year 
 period, in a district's school readiness reserve account on June 
 30 of each year, adjusted for any prior reductions under this 
 subdivision, must not be greater than 25 percent of the 
 district's school readiness annual revenue for the prior year.  
 If a district's adjusted average school readiness reserve over 
 the three-year period is in excess of 25 percent of the prior 
 year annual revenue, the district's current year school 
 readiness state aid must be reduced by the excess reserve 
 amount.  The commissioner must reallocate aid reduced under this 
 subdivision to other eligible school readiness programs in 
 proportion to each district's aid for the prior year under 
 subdivision 2.  

    (b) Notwithstanding paragraph (a), for fiscal year 2003, 
 the excess reserve amount shall be computed using the balance in 
 a district's school readiness reserve account on June 30, 2002.  
 For fiscal year 2004, the excess reserve amount shall be 
 computed using the adjusted average balance in a district's 
 school readiness reserve account on June 30, 2002, and June 30, 
 2003. 

    Subd. 7.    Waiver.  If a district anticipates that the 
 reserve account may exceed the 25 percent limit established 
 under subdivision 6 because of extenuating circumstances, prior 
 approval to exceed the limit must be obtained in writing from 
 the commissioner. 

    HIST: 1991 c 265 art 7 s 13; 1992 c 363 art 2 s 5; 1992 c 499 
 art 7 s 2; 1993 c 224 art 4 s 22,23; 1994 c 483 s 1; 1Sp1995 c 3 
 art 16 s 13; 1997 c 162 art 4 s 59,60; 1998 c 397 art 3 s 
 74,75,103; art 11 s 3; 1999 c 205 art 1 s 70; 2000 c 489 art 1 s 
 8; 1Sp2001 c 3 art 1 s 10-13 

*   NOTE:  Subdivision 6, as added by Laws 2001, First Special 
*Session chapter 3, article 1, section 12, is effective for 
*revenue for fiscal year 2003.  Laws 2001, First Special Session 
*chapter 3, article 1, section 20.