1.1 	A bill for an act
1.2 	relating to education finance; restoring funding for
1.3 	certain early childhood education programs; assuring
1.4 	access to full-day kindergarten for at-risk students;
1.5 	appropriating money; amending Minnesota Statutes 2004,
1.6 	section 126C.05, subdivision 1; proposing coding for
1.7 	new law in Minnesota Statutes, chapters 124D; 126C.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. [124D.175] KINDERGARTEN READINESS.
1.10 		Subdivision 1.Program. A school district may offer a
1.11 	kindergarten program for four-year-old children.
1.12 		Subd. 2.Levy authority. A district that offers a
1.13 	program under subdivision 1 may annually levy an amount equal to
1.14 	$100 times the number of four-year-old children in the district
1.15 	on October 1 of the previous school year.
1.16 		Subd. 3.Revenue uses. Revenue raised under this section
1.17 	must be used to provide kindergarten readiness services to four-
1.18 	and five-year-old children who are not enrolled in kindergarten.
1.19 	
EFFECTIVE DATE. This section is effective for taxes
1.20 	payable in 2006.

1.21 	Sec. 2. Minnesota Statutes 2004, section 126C.05,
1.22 	subdivision 1, is amended to read:
1.23 		Subdivision 1.Pupil unit.  Pupil units for each
1.24 	Minnesota resident pupil in average daily membership enrolled in
1.25 	the district of residence, in another district under sections
1.26 	123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or
2.1 	124D.68; in a charter school under section 124D.10; or for whom
2.2 	the resident district pays tuition under section 123A.18,
2.3 	123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
2.4 	subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or
2.5 	125A.65, shall be counted according to this subdivision.
2.6 	(a) A prekindergarten pupil with a disability who is
2.7 	enrolled in a program approved by the commissioner and has an
2.8 	individual education plan is counted as the ratio of the number
2.9 	of hours of assessment and education service to 825 times 1.25
2.10 	with a minimum average daily membership of 0.28, but not more
2.11 	than 1.25 pupil units.
2.12 	(b) A prekindergarten pupil who is assessed but determined
2.13 	not to be handicapped is counted as the ratio of the number of
2.14 	hours of assessment service to 825 times 1.25.
2.15 	(c) A kindergarten pupil with a disability who is enrolled
2.16 	in a program approved by the commissioner is counted as the
2.17 	ratio of the number of hours of assessment and education
2.18 	services required in the fiscal year by the pupil's individual
2.19 	education program plan to 875, but not more than one.
2.20 	(d) A kindergarten pupil who is not included in paragraph
2.21 	(c) or (i) is counted as .557 of a pupil unit for fiscal year
2.22 	2000 and thereafter.
2.23 	(e) A pupil who is in any of grades 1 to 3 is counted as
2.24 	1.115 pupil units for fiscal year 2000 and thereafter.
2.25 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06
2.26 	pupil units for fiscal year 1995 and thereafter.
2.27 	(g) A pupil who is in any of grades 7 to 12 is counted as
2.28 	1.3 pupil units.
2.29 	(h) A pupil who is in the postsecondary enrollment options
2.30 	program is counted as 1.3 pupil units.
2.31 	(i) A kindergarten pupil who is determined to be "at risk"
2.32 	is counted as 1.0 pupil units for fiscal year 2006 and later.  A
2.33 	kindergarten pupil is defined as "at risk" if the pupil
2.34 	qualifies for free or reduced-price lunches under subdivision 16.
2.35 	
EFFECTIVE DATE. This section is effective for revenue for
2.36 	fiscal year 2006.

3.1 	Sec. 3. [126C.205] FUNDING FOR FULL-DAY KINDERGARTEN.
3.2 		Subdivision 1.Full-day kindergarten revenue. The
3.3 	commissioner must annually calculate for each district the
3.4 	difference in general education revenue between the amounts
3.5 	resulting when at-risk kindergarten pupils are counted under
3.6 	section 126C.05, subdivision 1, paragraph (i), and when the
3.7 	kindergarten pupils are counted under section 126C.05,
3.8 	subdivision 1, paragraph (d).  Notwithstanding section 126C.20,
3.9 	the annual aid appropriation for general education revenue
3.10 	attributable to full-day kindergarten is calculated under this
3.11 	section.
3.12 		Subd. 2.Appropriation. $....... is annually
3.13 	appropriated from the general fund to the commissioner of
3.14 	education for payment of full-day kindergarten aid to school
3.15 	districts.
3.16 		Subd. 3.Levy. A district may annually levy the
3.17 	difference between the full-day kindergarten revenue amount
3.18 	determined in subdivision 1 and the kindergarten aid entitlement
3.19 	appropriated in subdivision 2.
3.20 	
EFFECTIVE DATE. This section is effective for revenue for
3.21 	fiscal year 2006.

3.22 	Sec. 4. COMMISSIONER STUDY.
 3.23 	The commissioner of education must undertake a study of
3.24 	definitions for at-risk pupils for purposes of qualifying the
3.25 	pupil for full-day kindergarten.  If the commissioner determines
3.26 	that there is a better standard than the student qualifying for
3.27 	free or reduced-price meals, the commissioner shall submit that
3.28 	definition to the 2006 legislature.

3.29 	EFFECTIVE DATE. This section is effective the day
3.30 	following final enactment.