1.1 	A bill for an act
1.2 	relating to education finance; reinstating base year funding for regular special 
1.3 	education aid;amending Minnesota Statutes 2008, sections 124D.454, 
1.4 	subdivisions 2, 3; 125A.76, subdivisions 1, 2, 5.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 124D.454, subdivision 2, is amended to 
1.7 	read:
1.8 		Subd. 2.Definitions. For the purposes of this section, the definitions in this 
1.9 	subdivision apply.
1.10 	(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
1.11 	For the purposes of computing basic revenue pursuant to this section, each child with a 
1.12 	disability shall be counted as prescribed in section 126C.05, subdivision 1. 
1.13 	(b) "Essential personnel" means a licensed teacher, licensed support services staff 
1.14 	person, paraprofessional providing direct services to students, or licensed personnel under 
1.15 	subdivision 12. This definition is not intended to change or modify the definition of 
1.16 	essential employee in chapter 179A.
1.17 	(c) "Base year" means the second fiscal year preceding the fiscal year for which 
1.18 	aid will be paid.

1.19 	EFFECTIVE DATE. This section is effective for fiscal years 2010 and later.

1.20 	Sec. 2. Minnesota Statutes 2008, section 124D.454, subdivision 3, is amended to read:
1.21 		Subd. 3. Initial aid.  The transition-disabled program initial aid equals the sum of 
1.22 	the following amounts computed using current base year data:
2.1 	(1) 68 percent of the salary of each essential licensed person or approved 
2.2 	paraprofessional who provides direct instructional services to students employed during 
2.3 	that fiscal year for services rendered in that district's transition program for children with a 
2.4 	disability;
2.5 	(2) 47 percent of the costs of necessary equipment for transition programs for 
2.6 	children with a disability;
2.7 	(3) 47 percent of the costs of necessary travel between instructional sites by transition 
2.8 	program teachers of children with a disability but not including travel to and from local, 
2.9 	regional, district, state, or national career and technical student organization meetings;
2.10 	(4) 47 percent of the costs of necessary supplies for transition programs for children 
2.11 	with a disability but not to exceed an average of $47 in any one school year for each child 
2.12 	with a disability receiving these services;
2.13 	(5) for transition programs for children with disabilities provided by a contract 
2.14 	approved by the commissioner with public, private, or voluntary agencies other than a 
2.15 	Minnesota school district or cooperative center, in place of programs provided by the 
2.16 	district, 52 percent of the difference between the amount of the contract and the basic 
2.17 	revenue of the district for that pupil for the fraction of the school day the pupil receives 
2.18 	services under the contract;
2.19 	(6) for transition programs for children with disabilities provided by a contract 
2.20 	approved by the commissioner with public, private, or voluntary agencies other than a 
2.21 	Minnesota school district or cooperative center, that are supplementary to a full educational 
2.22 	program provided by the school district, 52 percent of the amount of the contract; and
2.23 	(7) for a contract approved by the commissioner with another Minnesota school 
2.24 	district or cooperative center for vocational evaluation services for children with a 
2.25 	disability for children that are not yet enrolled in grade 12, 52 percent of the amount 
2.26 	of the contract.

2.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2010 
2.28 	and later.

2.29 	Sec. 3. Minnesota Statutes 2008, section 125A.76, subdivision 1, is amended to read:
2.30 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
2.31 	subdivision apply.
2.32 	(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
2.33 	For the purposes of computing basic revenue pursuant to this section, each child with a 
2.34 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
3.1 	(b) "Essential personnel" means teachers, cultural liaisons, related services, and 
3.2 	support services staff providing direct services to students. Essential personnel may also 
3.3 	include special education paraprofessionals or clericals providing support to teachers and 
3.4 	students by preparing paperwork and making arrangements related to special education 
3.5 	compliance requirements, including parent meetings and individual education plans.
3.6 	(c) "Average daily membership" has the meaning given it in section 126C.05.
3.7 	(d) "Program growth factor" means 1.046 for fiscal year 2012 and later.
3.8 	(e) "Base year" means the second fiscal year preceding the fiscal year for which 
3.9 	aid will be paid.

3.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2010 
3.11 	and later.

3.12 	Sec. 4. Minnesota Statutes 2008, section 125A.76, subdivision 2, is amended to read:
3.13 		Subd. 2.Special education initial aid. The special education initial aid equals the 
3.14 	sum of the following amounts computed using current base year data:
3.15 	(1) 68 percent of the salary of each essential person employed in the district's 
3.16 	program for children with a disability during the fiscal year, whether the person is 
3.17 	employed by one or more districts or a Minnesota correctional facility operating on a 
3.18 	fee-for-service basis;
3.19 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
3.20 	for the Blind, 68 percent of the salary of each one to one instructional and behavior 
3.21 	management aide assigned to a child attending the academy, if the aides are required 
3.22 	by the child's individual education plan;
3.23 	(3) for special instruction and services provided to any pupil by contracting with 
3.24 	public, private, or voluntary agencies other than school districts, in place of special 
3.25 	instruction and services provided by the district, 52 percent of the difference between 
3.26 	the amount of the contract and the general education revenue, excluding basic skills 
3.27 	revenue and alternative teacher compensation revenue, and referendum equalization aid 
3.28 	attributable to a pupil, calculated using the resident district's average general education 
3.29 	revenue and referendum equalization aid per adjusted pupil unit for the fraction of the 
3.30 	school day the pupil receives services under the contract. This includes children who 
3.31 	are residents of the state, receive services under this subdivision and subdivision 1, and 
3.32 	are placed in a care and treatment facility by court action in a state that does not have a 
3.33 	reciprocity agreement with the commissioner under section 125A.155 as provided for in 
3.34 	section 125A.79, subdivision 8;
4.1 	(4) for special instruction and services provided to any pupil by contracting for 
4.2 	services with public, private, or voluntary agencies other than school districts, that are 
4.3 	supplementary to a full educational program provided by the school district, 52 percent of 
4.4 	the amount of the contract for that pupil;
4.5 	(5) for supplies and equipment purchased or rented for use in the instruction of 
4.6 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
4.7 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
4.8 	not to exceed an average of $47 in any one school year for each child with a disability 
4.9 	receiving instruction;
4.10 	(6) for fiscal years 1997 and later, special education base revenue shall include 
4.11 	amounts under clauses (1) to (5) for special education summer programs provided during 
4.12 	the base year for that fiscal year;
4.13 	(7) the cost of providing transportation services for children with disabilities under 
4.14 	section 123B.92, subdivision 1, paragraph (b), clause (4); and
4.15 	(8) the district's transition-disabled program initial aid according to section 
4.16 	124D.454, subdivision 3.
4.17 	The department shall establish procedures through the uniform financial accounting 
4.18 	and reporting system to identify and track all revenues generated from third-party billings 
4.19 	as special education revenue at the school district level; include revenue generated from 
4.20 	third-party billings as special education revenue in the annual cross-subsidy report; and 
4.21 	exclude third-party revenue from calculation of excess cost aid to the districts.

4.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2010 
4.23 	and later.

4.24 	Sec. 5. Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read:
4.25 		Subd. 5.School district special education aid. (a) A school district's special 
4.26 	education aid for fiscal year 2008 and later equals the state total special education aid 
4.27 	times the ratio of the district's initial special education aid to the state total initial special 
4.28 	education aid.
4.29 	(b) A charter school in its first two years of operation generates special education 
4.30 	aid based on its current year expenditures.

4.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2010 
4.32 	and later.