Bill Text: MN HF557 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Department of Education required to hire a consultant to work with districts to share services, competition among school districts created, shared services incentive created for districts, and money appropriated.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2011-03-03 - Author added Bills [HF557 Detail]

Download: Minnesota-2011-HF557-Introduced.html

1.1A bill for an act
1.2relating to education finance; requiring the Department of Education to hire a
1.3consultant to work with districts to share services; creating a competition among
1.4school districts; creating an incentive for districts to share services; appropriating
1.5money.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. SHARED SERVICES CONSULTATION SERVICES.
1.8The commissioner of education shall enter into a three-year contract with a
1.9consultant to study specific services or activities across school districts and charter schools
1.10to make recommendations about combining services and activities in order to promote
1.11improved service delivery, efficiency, and economy of operation. The commissioner of
1.12education shall require the consultant to develop an implementation plan for all school
1.13districts to participate in shared services. The consultant must work cooperatively with
1.14school districts, charter schools, regional service cooperatives, regional management
1.15information centers, and their employees to develop this plan. The department must
1.16contract with a consultant that agrees to receive payment as a percentage of shared
1.17services savings as measured under section 2, subdivision 2. The percentage must not
1.18exceed five percent of the savings computed according to section 2, subdivision 2, in
1.19fiscal years 2012, 2013, and 2014.
1.20EFFECTIVE DATE.This section is effective the day following final enactment.

1.21    Sec. 2. SHARED SERVICES.
1.22    Subdivision 1. Shared services arrangement. School districts, charter schools, and
1.23their employees may work with a shared services consultant intermediate school district, a
2.1regional service cooperative, or a regional management information center to create and
2.2implement a plan that maximizes the benefits of shared services.
2.3    Subd. 2. Savings measurement. School districts and charter schools that develop
2.4a shared services arrangement under subdivision 1 are encouraged to work with their
2.5employees and a shared services consultant to develop a method for measuring school
2.6district or charter school savings as a result of utilizing shared services under this section.
2.7This method must calculate savings for each individual district or charter school. The
2.8savings must be allocated to classroom education in each school district or charter school.
2.9Each school district and charter school must annually report the savings calculated under
2.10this section to the commissioner of education by January 15, 2013; January 15, 2014; and
2.11January 15, 2015.
2.12    Subd. 3. Report. The commissioner of education must annually report by February
2.1315, 2013; February 15, 2014; and February 15, 2015, to the education finance committees
2.14of the legislature on the savings that shared services generate for the state's school districts
2.15and charter schools. In addition, the report shall evaluate the total savings per adjusted
2.16average daily membership within each economic development region under Minnesota
2.17Statutes, section 462.385, in the state. The report shall identify the economic development
2.18region that generated the largest savings per adjusted average daily membership. Savings
2.19per adjusted average daily membership must be calculated as the total savings of
2.20participating school districts and charter schools divided by the adjusted average daily
2.21membership of participating school districts and charter schools.

2.22    Sec. 3. SHARED SERVICES DEDUCTION.
2.23(a) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, for fiscal
2.24years 2012 , 2013, and 2014 only, a school district's or charter school's general education
2.25aid must equal the amount computed under Minnesota Statutes, section 126C.13,
2.26subdivision 4, minus five percent of the savings computed under section 2, subdivision 2.
2.27(b) Notwithstanding paragraph (a), the deduction under this section shall be equal to
2.28the contracted percentage under section 1 between the Department of Education and the
2.29consultant. The department must reduce the deduction under this section if the department
2.30and the consultant agree to a contract under section 1, in which the consultant is paid as a
2.31percentage of savings that is less than five percent.
2.32EFFECTIVE DATE.This section is effective the day following final enactment.

2.33    Sec. 4. SAVINGS ALLOCATION.
3.1Notwithstanding section 2, in fiscal years 2012, 2013, and 2014 only, savings
3.2computed according to section 2, subdivision 2, minus the contracted percentage paid to
3.3the shared services consultant under section 1 must be allocated to classroom education
3.4in each school district or charter school.
3.5EFFECTIVE DATE.This section is effective the day following final enactment.

3.6    Sec. 5. SHARED SERVICES COMPETITION.
3.7(a) School districts within each economic development region under Minnesota
3.8Statutes, section 462.385, are encouraged to work together to share services to maximize
3.9the savings generated per adjusted average daily membership. For fiscal years 2012,
3.102013, and 2014, the school districts and charter schools in each economic development
3.11region with the most shared services savings in each year are eligible for a shared services
3.12savings grant under paragraph (b).
3.13(b) The commissioner shall award a shared services grant to the participating
3.14school districts and charter schools of the economic development region that generates
3.15the most savings per adjusted average daily membership, as reported according to section
3.162, subdivision 3. The shared services grants shall be equal per adjusted average daily
3.17membership among all participating school districts and charter schools, and may be up to
3.18$500 per adjusted average daily membership. The total grant per year may not exceed
3.19$5,000,000 each year.

3.20    Sec. 6. APPROPRIATION; SHARED SERVICES CONSULTANT.
3.21For fiscal years 2012 and 2013, the amount deducted from general education aid
3.22under section 3 is appropriated to the Department of Education for the costs of the contract
3.23associated with shared services consultation under section 1.

3.24    Sec. 7. APPROPRIATION.
3.25    Subdivision 1. Department of Education. The sums indicated in this section are
3.26appropriated from the general fund to the Department of Education for the fiscal years
3.27designated.
3.28    Subd. 2. Shared services grants.
3.29
$
5,000,000
.....
2012
3.30
$
5,000,000
.....
2013
3.31The base appropriation is $5,000,000 for fiscal year 2014 and $0 for fiscal year 2015.
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