1.1                          A bill for an act
  1.2             relating to education; removing appropriations caps; 
  1.3             establishing an education funding stabilization 
  1.4             account; amending Minnesota Statutes 1995 Supplement, 
  1.5             sections 124.17, subdivision 1; and 124A.22, 
  1.6             subdivision 2; repealing Laws 1995, First Special 
  1.7             Session chapter 3, article 14, section 5.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.10  124.17, subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
  1.12  pupil in average daily membership shall be counted according to 
  1.13  this subdivision.  
  1.14     (a) A prekindergarten pupil with a disability who is 
  1.15  enrolled in a program approved by the commissioner and has an 
  1.16  individual education plan is counted as the ratio of the number 
  1.17  of hours of assessment and education service to 825 with a 
  1.18  minimum of 0.28, but not more than one. 
  1.19     (b) A prekindergarten pupil who is assessed but determined 
  1.20  not to be handicapped is counted as the ratio of the number of 
  1.21  hours of assessment service to 825.  
  1.22     (c) A kindergarten pupil with a disability who is enrolled 
  1.23  in a program approved by the commissioner is counted as the 
  1.24  ratio of the number of hours of assessment and education 
  1.25  services required in the fiscal year by the pupil's individual 
  1.26  education program plan to 875, but not more than one. 
  2.1      (d) A kindergarten pupil who is not included in paragraph 
  2.2   (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
  2.3   thereafter. 
  2.4      (e) A pupil who is in any of grades 1 to 6 is counted as 
  2.5   1.06 pupil units for fiscal year 1995 and thereafter. 
  2.6      (f) ~~For fiscal year 1996 and fiscal year 1997,~~ A pupil who 
  2.7   is in any of grades 7 to 12 is counted as 1.3 pupil units.  ~~For~~ 
  2.8   ~~fiscal year 1998, a pupil who is in any of grades 7 to 12 is~~ 
  2.9   ~~counted as 1.25 pupil units.  For fiscal year 1999 and later~~ 
  2.10  ~~years, a pupil who is in any of grades 7 to 12 is counted as 1.2~~ 
  2.11  ~~pupil units.~~ 
  2.12     (g) ~~For fiscal year 1996 and fiscal year 1997,~~ A pupil who 
  2.13  is in the post-secondary enrollment options program is counted 
  2.14  as 1.3 pupil units.  ~~For fiscal year 1998, a pupil who is in the~~ 
  2.15  ~~post-secondary enrollment options program is counted as 1.25~~ 
  2.16  ~~pupil units.  For fiscal year 1999 and later years, a pupil who~~ 
  2.17  ~~is in the post-secondary enrollment options program is counted~~ 
  2.18  ~~as 1.2 pupil units.~~ 
  2.19     ~~(h) In fiscal year 1998, the sum of a district's general~~ 
  2.20  ~~education revenue and referendum revenue may not be reduced by~~ 
  2.21  ~~more than two percent due to the reduction in the secondary~~ 
  2.22  ~~pupil weight from 1.3 as specified in paragraphs (f) and (g).~~  
  2.23  ~~In fiscal year 1999 and later years, the sum of a district's~~ 
  2.24  ~~general education revenue and referendum revenue may not be~~ 
  2.25  ~~decreased by more than four percent due to the reduction in the~~ 
  2.26  ~~secondary weight from 1.3 as specified in paragraphs (f) and (g).~~
  2.27     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.28  124A.22, subdivision 2, is amended to read: 
  2.29     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  2.30  district equals the formula allowance times the actual pupil 
  2.31  units for the school year.  The formula allowance for fiscal 
  2.32  year 1995 is $3,150.  The formula allowance for fiscal year 1996 
  2.33  is $3,205.  The formula allowance for fiscal year 1997 and 
  2.34  subsequent fiscal years is $3,505 ~~and for fiscal year 1998 and~~ 
  2.35  ~~subsequent fiscal years the formula allowance is $3,430~~. 
  2.36     Sec. 3.  [EDUCATION FUNDING STABILIZATION ACCOUNT.] 
  3.1      Subdivision 1.  [ESTABLISHMENT.] An education funding 
  3.2   stabilization account is established in the general fund of the 
  3.3   state treasury to ensure that adequate funds are available in 
  3.4   fiscal years 1998 and 1999 to fund the K-12 education programs 
  3.5   at or above the per pupil funding levels in effect for fiscal 
  3.6   year 1997. 
  3.7      Subd. 2.  [TRANSFER.] The commissioner of finance shall 
  3.8   transfer $291,768,000 from the general fund to the education 
  3.9   funding stabilization account as that revenue becomes available 
  3.10  during the biennium ending June 30, 1997, but the transfer must 
  3.11  be made no later than June 30, 1997. 
  3.12     Subd. 3.  [EXPIRATION OF ACCOUNT.] The education funding 
  3.13  stabilization account expires on July 1, 1997.  All funding in 
  3.14  the account on that date is transferred to the general fund. 
  3.15     Sec. 4.  [REPEALER.] 
  3.16     Laws 1995, First Special Session chapter 3, article 14, 
  3.17  section 5, is repealed. 
  3.18     Sec. 5.  [EFFECTIVE DATE.] 
  3.19     Sections 1 to 4 are effective the day following final 
  3.20  enactment.