Bill Text: MN HF2662 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Special education tuition bill-back procedure phased out, and serving school made responsible for all special education costs.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-03-05 - Introduction and first reading, referred to Education Finance [HF2662 Detail]

Download: Minnesota-2011-HF2662-Introduced.html

1.1A bill for an act
1.2relating to education finance; phasing out the special education tuition bill-back
1.3procedure; making the serving school responsible for all special education costs;
1.4amending Minnesota Statutes 2010, section 127A.47, subdivision 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2010, section 127A.47, subdivision 7, is amended to
1.7read:
1.8    Subd. 7. Alternative attendance programs. The general education aid and special
1.9education aid for districts must be adjusted for each pupil attending a nonresident district
1.10under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
1.11must be made according to this subdivision.
1.12    (a) General education aid paid to a resident district must be reduced by an amount
1.13equal to the referendum equalization aid attributable to the pupil in the resident district.
1.14    (b) General education aid paid to a district serving a pupil in programs listed in this
1.15subdivision must be increased by an amount equal to the greater of (1) the referendum
1.16equalization aid attributable to the pupil in the nonresident district; or (2) the product of
1.17the district's open enrollment concentration index, the maximum amount of referendum
1.18revenue in the first tier, and the district's net open enrollment pupil units for that year. A
1.19district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
1.20lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
1.21served to its resident pupil units for that year and 0.2. This clause does not apply to a
1.22school district where more than 50 percent of the open enrollment students are enrolled
1.23solely in online learning courses.
2.1    (c) If the amount of the reduction to be made from the general education aid of the
2.2resident district is greater than the amount of general education aid otherwise due the
2.3district, the excess reduction must be made from other state aids due the district.
2.4    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
2.5area learning center, operated according to paragraph (f), providing special instruction and
2.6services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
2.7section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
2.8be equal to (1) the actual cost of providing special instruction and services to the pupil,
2.9including a proportionate amount for special transportation and unreimbursed building
2.10lease and debt service costs for facilities used primarily for special education, minus (2)
2.11if the pupil receives special instruction and services outside the regular classroom for
2.12more than 60 percent of the school day, the amount of general education revenue and
2.13referendum aid attributable to that pupil for the portion of time the pupil receives special
2.14instruction and services outside of the regular classroom, excluding portions attributable to
2.15district and school administration, district support services, operations and maintenance,
2.16capital expenditures, and pupil transportation, minus (3) special education aid attributable
2.17to that pupil, that is received by the district providing special instruction and services.
2.18For purposes of this paragraph, general education revenue and referendum equalization
2.19aid attributable to a pupil must be calculated using the serving district's average general
2.20education revenue and referendum equalization aid per adjusted pupil unit.
2.21    (e) For fiscal year 2007 and later, special education aid paid to a resident district
2.22must be reduced by an amount equal to (d) For purposes of this subdivision, the
2.23"unreimbursed cost of providing special education and services" means the difference
2.24between: (1) the actual cost of providing special instruction and services, including
2.25special transportation and unreimbursed building lease and debt service costs for facilities
2.26used primarily for special education, for a pupil with a disability, as defined in section
2.27125A.02 , or a pupil, as defined in section 125A.51, who is enrolled in a program listed
2.28in this subdivision, minus (2) if the pupil receives special instruction and services
2.29outside the regular classroom for more than 60 percent of the school day, the amount
2.30of general education revenue and referendum equalization aid attributable to that pupil
2.31for the portion of time the pupil receives special instruction and services outside of the
2.32regular classroom, excluding portions attributable to district and school administration,
2.33district support services, operations and maintenance, capital expenditures, and pupil
2.34transportation, minus (3) special education aid attributable to that pupil, that is received
2.35by the district providing special instruction and services. For purposes of this paragraph,
2.36general education revenue and referendum equalization aid attributable to a pupil must be
3.1calculated using the serving district's average general education revenue and referendum
3.2equalization aid per adjusted pupil unit.
3.3(e) Special education aid paid to a resident district must be reduced by the following
3.4amounts:
3.5(1) for fiscal year 2014, by an amount equal to 80 percent of the unreimbursed cost
3.6of providing special education and services;
3.7(2) for fiscal year 2015, by an amount equal to 60 percent of the unreimbursed cost
3.8of providing special education and services;
3.9(3) for fiscal year 2016, by an amount equal to 40 percent of the unreimbursed cost
3.10of providing special education and services; and
3.11(4) for fiscal year 2017, by an amount equal to 20 percent of the unreimbursed cost
3.12of providing special education and services.
3.13For fiscal years 2018 and later, special education aid paid to a resident district is not
3.14reduced except as provided in paragraph (f).
3.15(f) Notwithstanding paragraph (e), special education aid paid to a resident district
3.16must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
3.17education and services provided to students at an intermediate district, a cooperative, or a
3.18charter school where the percentage of students eligible for special education services is at
3.19least 70 percent of the charter school's total enrollment.
3.20(g) Special education aid paid to the district or cooperative providing special
3.21instruction and services for the pupil, or to the fiscal agent district for a cooperative,
3.22must be increased by the amount of the reduction in the aid paid to the resident district
3.23under paragraphs (e) and (f). If the resident district's special education aid is insufficient
3.24to make the full adjustment, the remaining adjustment shall be made to other state aids
3.25due to the district.
3.26    (f) (h) An area learning center operated by a service cooperative, intermediate
3.27district, education district, or a joint powers cooperative may elect through the action of
3.28the constituent boards to charge the resident district tuition for pupils rather than to have
3.29the general education revenue paid to a fiscal agent school district. Except as provided in
3.30paragraph (d) or (e) or (f), the district of residence must pay tuition equal to at least 90
3.31percent of the district average general education revenue per pupil unit minus an amount
3.32equal to the product of the formula allowance according to section 126C.10, subdivision
3.332
, times .0485, calculated without compensatory revenue and transportation sparsity
3.34revenue, times the number of pupil units for pupils attending the area learning center.
3.35EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
3.36and later.
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