1.1 	A bill for an act
1.2 	relating to education finance; fully funding unreimbursed special education 
1.3 	expenses;amending Minnesota Statutes 2015 Supplement, section 125A.79, 
1.4 	subdivision 5.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2015 Supplement, section 125A.79, subdivision 5, 
1.7 	is amended to read:
1.8 		Subd. 5. Excess cost aid. For fiscal year 2016 and later, a district's excess cost 
1.9 	aid equals the greater of:
1.10 	(1) ~~56 percent of the difference between (i)~~ the sum of the district's unreimbursed 
1.11 	nonfederal special education expenditures and ~~(ii) 7.0 percent of the product of the ratio of~~ 
1.12 	~~$5,831 to the formula allowance for the prior year and the district's general revenue;~~
1.13 	~~(2) 62 percent of the difference between (i)~~ the district's unreimbursed old formula 
1.14 	special education expenditures ~~and (ii) 2.5 percent of the product of the ratio of $5,831 to~~ 
1.15 	~~the formula allowance for the prior year and the district's general revenue~~; or
1.16 	~~(3)~~(2) zero.

1.17 	EFFECTIVE DATE. This section is effective for aid for fiscal year 2017 and later.