1.1                          A bill for an act 
  1.2             relating to education finance; eliminating the 
  1.3             concentration factor in compensatory revenue; amending 
  1.4             Minnesota Statutes 2000, sections 126C.05, subdivision 
  1.5             3; 126C.10, subdivision 19; 126C.15, subdivisions 1, 
  1.6             5; repealing Minnesota Statutes 2000, section 126C.10, 
  1.7             subdivision 3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 126C.05, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [~~COMPENSATION~~ REMEDIAL REVENUE PUPIL UNITS.] (a) 
  1.12  ~~Compensation~~ Remedial revenue pupil units ~~for fiscal year 1998~~ 
  1.13  ~~and thereafter~~ must be computed according to this subdivision.  
  1.14     ~~(a) The compensation revenue concentration percentage for~~ 
  1.15  ~~each building in a district equals the product of 100 times the~~ 
  1.16  ~~ratio of:~~  
  1.17     ~~(1) the sum of the number of pupils enrolled in the~~ 
  1.18  ~~building eligible to receive free lunch plus one-half of the~~ 
  1.19  ~~pupils eligible to receive reduced priced lunch on October 1 of~~ 
  1.20  ~~the previous fiscal year; to~~ 
  1.21     ~~(2) the number of pupils enrolled in the building on~~ 
  1.22  ~~October 1 of the previous fiscal year.~~ 
  1.23     (b) ~~The compensation revenue pupil weighting factor for a~~ 
  1.24  ~~building equals the lesser of one or the quotient obtained by~~ 
  1.25  ~~dividing the building's compensation revenue concentration~~ 
  1.26  ~~percentage by 80.0.~~  
  2.1      ~~(c)~~ The ~~compensation~~ remedial revenue pupil units for a 
  2.2   building equals the product of:  
  2.3      (1) the sum of the number of pupils enrolled in the 
  2.4   building eligible to receive free lunch and one-half of the 
  2.5   pupils eligible to receive reduced priced lunch on October 1 of 
  2.6   the previous fiscal year; times 
  2.7      (2) ~~the compensation revenue pupil weighting factor for the~~ 
  2.8   ~~building; times~~ 
  2.9      ~~(3) .60~~ .305. 
  2.10     ~~(d)~~ (c) Notwithstanding ~~paragraphs (a) to (c)~~ paragraph 
  2.11  (b), for charter schools and contracted alternative programs in 
  2.12  the first year of operation, ~~compensation~~ remedial revenue pupil 
  2.13  units shall be computed using data for the current fiscal year.  
  2.14  If the charter school or contracted alternative program begins 
  2.15  operation after October 1, ~~compensatory~~ remedial revenue pupil 
  2.16  units shall be computed based on pupils enrolled on an alternate 
  2.17  date determined by the commissioner, and the ~~compensation~~ 
  2.18  remedial revenue pupil units shall be prorated based on the 
  2.19  ratio of the number of days of student instruction to 170 days. 
  2.20     ~~(e)~~ (d) The percentages in this subdivision must be based 
  2.21  on the count of individual pupils and not on a building average 
  2.22  or minimum. 
  2.23     Sec. 2.  Minnesota Statutes 2000, section 126C.10, 
  2.24  subdivision 19, is amended to read: 
  2.25     Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
  2.26  transportation transition allowance for fiscal year ~~1998~~ 2002 
  2.27  and later equals the result of the following: 
  2.28     (1) if the result in subdivision 18, paragraph (a), clause 
  2.29  (iii), for fiscal year 1998 is less than the fiscal year 1996 
  2.30  base allowance, the transportation transition allowance equals 
  2.31  the fiscal year 1996 base allowance minus the result in 
  2.32  subdivision 18, paragraph (a), clause (iii); or 
  2.33     (2) if the result in subdivision 18, paragraph (a), clause 
  2.34  (iii), for fiscal year 1998 and later is greater than or equal 
  2.35  to the fiscal year 1996 base allowance, the transportation 
  2.36  transition allowance equals zero. 
  3.1      (b) ~~A district's compensatory transition allowance equals~~ 
  3.2   ~~the greater of zero or the difference between:~~  
  3.3      ~~(1) the amount of compensatory revenue the district would~~ 
  3.4   ~~have received under Minnesota Statutes 1996, section 124A.22,~~ 
  3.5   ~~subdivision 3, for fiscal year 1998 computed using a basic~~ 
  3.6   ~~formula allowance of $3,281; and~~ 
  3.7      ~~(2) the amount the district receives under subdivision 3;~~ 
  3.8   ~~divided by~~ 
  3.9      ~~(3) the district's actual pupil units for fiscal year 1998.~~ 
  3.10     ~~(c)~~ A district's cooperation transition allowance for 
  3.11  fiscal year 2001 and later equals the greater of zero or the 
  3.12  difference between:  
  3.13     (1) $25,000; and 
  3.14     (2) $67 times the district's resident pupil units for 
  3.15  fiscal year 2001; divided by 
  3.16     (3) the district's resident pupil units for fiscal year 
  3.17  2001. 
  3.18     ~~(d) A district's transition allowance for fiscal years 1999~~ 
  3.19  ~~and 2000 is equal to the sum of its transportation transition~~ 
  3.20  ~~allowance and its compensatory transition allowance.~~  (c) A 
  3.21  district's transition allowance for fiscal year 2001 and 
  3.22  thereafter is equal to the sum of its transportation transition 
  3.23  allowance~~, its compensatory transition allowance,~~ and its 
  3.24  cooperation transition allowance. 
  3.25     Sec. 3.  Minnesota Statutes 2000, section 126C.15, 
  3.26  subdivision 1, is amended to read: 
  3.27     Subdivision 1.  [USE OF THE REVENUE.] The basic skills 
  3.28  revenue under section 126C.10, subdivision 4, ~~and the portion of~~ 
  3.29  ~~the transition revenue adjustment under section 126C.10,~~ 
  3.30  ~~subdivision 20, attributable to the compensatory transition~~ 
  3.31  ~~allowance under section 126C.10, subdivision 19, paragraph (b),~~ 
  3.32  must be reserved and used to meet the educational needs of 
  3.33  pupils who enroll under-prepared to learn and whose progress 
  3.34  toward meeting state or local content or performance standards 
  3.35  is below the level that is appropriate for learners of their 
  3.36  age.  Any of the following may be provided to meet these 
  4.1   learners' needs: 
  4.2      (1) direct instructional services under the assurance of 
  4.3   mastery program according to section 124D.66; 
  4.4      (2) remedial instruction in reading, language arts, 
  4.5   mathematics, other content areas, or study skills to improve the 
  4.6   achievement level of these learners; 
  4.7      (3) additional teachers and teacher aides to provide more 
  4.8   individualized instruction to these learners through individual 
  4.9   tutoring, lower instructor-to-learner ratios, or team teaching; 
  4.10     (4) a longer school day or week during the regular school 
  4.11  year or through a summer program that may be offered directly by 
  4.12  the site or under a performance-based contract with a 
  4.13  community-based organization; 
  4.14     (5) comprehensive and ongoing staff development consistent 
  4.15  with district and site plans according to section 122A.60, for 
  4.16  teachers, teacher aides, principals, and other personnel to 
  4.17  improve their ability to identify the needs of these learners 
  4.18  and provide appropriate remediation, intervention, 
  4.19  accommodations, or modifications; 
  4.20     (6) instructional materials and technology appropriate for 
  4.21  meeting the individual needs of these learners; 
  4.22     (7) programs to reduce truancy, encourage completion of 
  4.23  high school, enhance self-concept, provide health services, 
  4.24  provide nutrition services, provide a safe and secure learning 
  4.25  environment, provide coordination for pupils receiving services 
  4.26  from other governmental agencies, provide psychological services 
  4.27  to determine the level of social, emotional, cognitive, and 
  4.28  intellectual development, and provide counseling services, 
  4.29  guidance services, and social work services; 
  4.30     (8) bilingual programs, bicultural programs, and programs 
  4.31  for learners of limited English proficiency; 
  4.32     (9) all day kindergarten; 
  4.33     (10) extended school day and extended school year programs; 
  4.34  and 
  4.35     (11) substantial parent involvement in developing and 
  4.36  implementing remedial education or intervention plans for a 
  5.1   learner, including learning contracts between the school, the 
  5.2   learner, and the parent that establish achievement goals and 
  5.3   responsibilities of the learner and the learner's parent or 
  5.4   guardian~~; and~~ 
  5.5      ~~(12) other methods to increase achievement, as needed~~.  
  5.6      Sec. 5.  Minnesota Statutes 2000, section 126C.15, 
  5.7   subdivision 5, is amended to read: 
  5.8      Subd. 5.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
  5.9   that receives basic skills revenue must submit a report 
  5.10  identifying the expenditures it incurred to meet the needs of 
  5.11  eligible learners under subdivision 1.  The report must conform 
  5.12  to uniform financial and reporting standards established for 
  5.13  this purpose.  The report must also identify the effects of the 
  5.14  expenditures on student achievement levels. 
  5.15     Sec. 6.  [REVISOR INSTRUCTION.] 
  5.16     In the next and subsequent editions of Minnesota Statutes, 
  5.17  the revisor shall change all references to "compensatory 
  5.18  revenue" to "remedial revenue." 
  5.19     Sec. 7.  [REPEALER.] 
  5.20     Minnesota Statutes 2000, section 126C.10, subdivision 3, is 
  5.21  repealed for revenue for fiscal year 2006.