1.1 	A bill for an act
1.2 	relating to education; modifying pupil units for
1.3 	certain students; increasing the formula allowance;
1.4 	amending Minnesota Statutes 2004, sections 126C.05,
1.5 	subdivisions 8, 15; 126C.10, subdivisions 2, 2a.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 126C.05,
1.8 	subdivision 8, is amended to read:
1.9 		Subd. 8.Average daily membership.  (a) Membership for
1.10 	pupils in grades kindergarten through 12 and for prekindergarten
1.11 	pupils with disabilities shall mean the number of pupils on the
1.12 	current roll of the school, counted from the date of entry until
1.13 	withdrawal.  The date of withdrawal shall mean the day the pupil
1.14 	permanently leaves the school or the date it is officially known
1.15 	that the pupil has left or has been legally excused.  However, a
1.16 	pupil, regardless of age, who has been absent from school for 15
1.17 	consecutive school days during the regular school year or for
1.18 	five consecutive school days during summer school or
1.19 	intersession classes of flexible school year programs without
1.20 	receiving instruction in the home or hospital shall be dropped
1.21 	from the roll and classified as withdrawn.  Nothing in this
1.22 	section shall be construed as waiving the compulsory attendance
1.23 	provisions cited in section 120A.22.  Average daily membership
1.24 	equals the sum for all pupils of the number of days of the
1.25 	school year each pupil is enrolled in the district's schools
2.1 	divided by the number of days the schools are in session.  Days
2.2 	of summer school or intersession classes of flexible school year
2.3 	programs are only included in the computation of membership for
2.4 	pupils with a disability not appropriately served primarily in
2.5 	the regular classroom.  A student must not be counted as more
2.6 	than 1.2 1.5 pupils in average daily membership under this
2.7 	section.  When the initial total average daily membership
2.8 	exceeds 1.2 1.5 for a pupil enrolled in more than one school
2.9 	district during the fiscal year, each district's average daily
2.10 	membership must be reduced proportionately.
2.11 	(b) A student must not be counted as more than one pupil in
2.12 	average daily membership except for purposes of section 126C.10,
2.13 	subdivision 2a.

2.14 	Sec. 2. Minnesota Statutes 2004, section 126C.05,
2.15 	subdivision 15, is amended to read:
2.16 		Subd. 15.Learning year pupil units.  (a) When a pupil is
2.17 	enrolled in a learning year program under section 124D.128, an
2.18 	area learning center under sections 123A.05 and 123A.06, an
2.19 	alternative program approved by the commissioner, or a contract
2.20 	alternative program under section 124D.68, subdivision 3,
2.21 	paragraph (d), or subdivision 3a, for more than 1,020 hours in a
2.22 	school year for a secondary student, more than 935 hours in a
2.23 	school year for an elementary student, or more than 425 hours in
2.24 	a school year for a kindergarten student without a disability,
2.25 	that pupil may be counted as more than one pupil in average
2.26 	daily membership for purposes of section 126C.10, subdivision
2.27 	2a.  The amount in excess of one pupil must be determined by the
2.28 	ratio of the number of hours of instruction provided to that
2.29 	pupil in excess of:  (i) the greater of 1,020 hours or the
2.30 	number of hours required for a full-time secondary pupil in the
2.31 	district to 1,020 for a secondary pupil; (ii) the greater of 935
2.32 	hours or the number of hours required for a full-time elementary
2.33 	pupil in the district to 935 for an elementary pupil in grades 1
2.34 	through 6; and (iii) the greater of 425 hours or the number of
2.35 	hours required for a full-time kindergarten student without a
2.36 	disability in the district to 425 for a kindergarten student
3.1 	without a disability.  Hours that occur after the close of the
3.2 	instructional year in June shall be attributable to the
3.3 	following fiscal year.  A kindergarten student must not be
3.4 	counted as more than 1.2 pupils in average daily membership
3.5 	under this subdivision.  A student in grades 1 through 12 must
3.6 	not be counted as more than 1.2 pupils in average daily
3.7 	membership under this subdivision except for a secondary student
3.8 	enrolled in an area learning center who may be counted up to 1.5
3.9 	pupils in average daily membership under this subdivision.
3.10 	(b)(i) To receive general education revenue for a pupil in
3.11 	an alternative program that has an independent study component,
3.12 	a district must meet the requirements in this paragraph.  The
3.13 	district must develop, for the pupil, a continual learning plan
3.14 	consistent with section 124D.128, subdivision 3.  Each school
3.15 	district that has a state-approved public alternative program
3.16 	must reserve revenue in an amount equal to at least 90 percent
3.17 	of the district average general education revenue per pupil unit
3.18 	less compensatory revenue per pupil unit times the number of
3.19 	pupil units generated by students attending a state-approved
3.20 	public alternative program.  The amount of reserved revenue
3.21 	available under this subdivision may only be spent for program
3.22 	costs associated with the state-approved public alternative
3.23 	program.  Compensatory revenue must be allocated according to
3.24 	section 126C.15, subdivision 2.
3.25 	(ii) General education revenue for a pupil in an approved
3.26 	alternative program without an independent study component must
3.27 	be prorated for a pupil participating for less than a full year,
3.28 	or its equivalent.  The district must develop a continual
3.29 	learning plan for the pupil, consistent with section 124D.128,
3.30 	subdivision 3.  Each school district that has a state-approved
3.31 	public alternative program must reserve revenue in an amount
3.32 	equal to at least 90 percent of the district average general
3.33 	education revenue per pupil unit less compensatory revenue per
3.34 	pupil unit times the number of pupil units generated by students
3.35 	attending a state-approved public alternative program.  The
3.36 	amount of reserved revenue available under this subdivision may
4.1 	only be spent for program costs associated with the
4.2 	state-approved public alternative program.  Compensatory revenue
4.3 	must be allocated according to section 126C.15, subdivision 2.
4.4 	(iii) General education revenue for a pupil in an approved
4.5 	alternative program that has an independent study component must
4.6 	be paid for each hour of teacher contact time and each hour of
4.7 	independent study time completed toward a credit or graduation
4.8 	standards necessary for graduation.  Average daily membership
4.9 	for a pupil shall equal the number of hours of teacher contact
4.10 	time and independent study time divided by 1,020.
4.11 	(iv) For an alternative program having an independent study
4.12 	component, the commissioner shall require a description of the
4.13 	courses in the program, the kinds of independent study involved,
4.14 	the expected learning outcomes of the courses, and the means of
4.15 	measuring student performance against the expected outcomes.

4.16 	Sec. 3. Minnesota Statutes 2004, section 126C.10,
4.17 	subdivision 2, is amended to read:
4.18 		Subd. 2.Basic revenue. (a) The basic revenue for each
4.19 	district equals the formula allowance times the adjusted
4.20 	marginal cost pupil units for the school year. The formula
4.21 	allowance for fiscal year 2001 is $3,964.  The formula allowance
4.22 	for fiscal year 2002 is $4,068.The formula allowance for
4.23 	fiscal year years 2003 and subsequent years through 2005 is
4.24 	$4,601.
4.25 	(b) The basic formula allowance in paragraph (a) is
4.26 	increased by $150 for fiscal year 2006 and by $250 for fiscal
4.27 	year 2007 and later.

4.28 	Sec. 4. Minnesota Statutes 2004, section 126C.10,
4.29 	subdivision 2a, is amended to read:
4.30 		Subd. 2a.Extended time revenue.  (a) A school district's
4.31 	extended time revenue is equal to the product of $4,601 and the
4.32 	sum of the adjusted marginal cost pupil units of the district
4.33 	for each pupil in average daily membership in excess of 1.0 and
4.34 	less than 1.2 1.5 according to section 126C.05, subdivision 8.
4.35 	(b) A school district's extended time revenue may be used
4.36 	for extended day programs, extended week programs, summer
5.1 	school, and other programming authorized under the learning year
5.2 	program.