Bill Text: MN SF719 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Special education tuition reimbursement for nonresident students phase out

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2013-02-25 - Referred to Education [SF719 Detail]

Download: Minnesota-2013-SF719-Introduced.html

1.1A bill for an act
1.2relating to education finance; phasing out the special education tuition
1.3reimbursement for nonresident students;amending Minnesota Statutes 2012,
1.4sections 125A.11, subdivision 1; 127A.47, subdivision 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:
1.7    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006,
1.8when a school district provides instruction and services outside the district of residence,
1.9board and lodging, and any tuition to be paid, shall be paid by the district of residence.
1.10The tuition rate to be charged for any child with a disability, excluding a pupil for whom
1.11tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
1.12the sum of (1) the actual cost of providing special instruction and services to the child
1.13including a proportionate amount for special transportation and unreimbursed building
1.14lease and debt service costs for facilities used primarily for special education, plus (2)
1.15the amount of general education revenue and referendum aid attributable to the pupil,
1.16minus (3) the amount of special education aid for children with a disability received
1.17on behalf of that child, minus (4) if the pupil receives special instruction and services
1.18outside the regular classroom for more than 60 percent of the school day, the amount of
1.19general education revenue and referendum aid, excluding portions attributable to district
1.20and school administration, district support services, operations and maintenance, capital
1.21expenditures, and pupil transportation, attributable to that pupil for the portion of time
1.22the pupil receives special instruction and services outside of the regular classroom. If
1.23the boards involved do not agree upon the tuition rate, either board may apply to the
1.24commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
2.1a date for a hearing or request a written statement from each board, giving each board
2.2at least ten days' notice, and after the hearing or review of the written statements the
2.3commissioner must make an order fixing the tuition rate, which is binding on both school
2.4districts. General education revenue and referendum equalization aid attributable to a
2.5pupil must be calculated using the resident district's average general education revenue
2.6and referendum equalization aid per adjusted pupil unit.
2.7    (b) (a) For fiscal year 2007 2014 and later, when a school district provides special
2.8instruction and services for a pupil with a disability as defined in section 125A.02 outside
2.9the district of residence, excluding a pupil for whom an adjustment to special education
2.10aid is calculated according to section 127A.47, subdivision 7, paragraph (e) (d), special
2.11education aid paid to the resident district must be reduced by an amount equal to (1)
2.12the actual cost of providing special instruction and services to the pupil, including a
2.13proportionate amount for special transportation and unreimbursed building lease and
2.14debt service costs for facilities used primarily for special education, plus (2) the amount
2.15of general education revenue and referendum equalization aid attributable to that pupil,
2.16calculated using the resident district's average general education revenue and referendum
2.17equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity
2.18revenue and secondary sparsity revenue, minus (3) the amount of special education aid for
2.19children with a disability received on behalf of that child, minus (4) if the pupil receives
2.20special instruction and services outside the regular classroom for more than 60 percent
2.21of the school day, the amount of general education revenue and referendum equalization
2.22aid, excluding portions attributable to district and school administration, district support
2.23services, operations and maintenance, capital expenditures, and pupil transportation,
2.24attributable to that pupil for the portion of time the pupil receives special instruction
2.25and services outside of the regular classroom, calculated using the resident district's
2.26average general education revenue and referendum equalization aid per adjusted pupil unit
2.27excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
2.28and the serving district's basic skills revenue, elementary sparsity revenue and secondary
2.29sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
2.30served by a cooperative unit without a fiscal agent school district, the general education
2.31revenue and referendum equalization aid attributable to a pupil must be calculated using
2.32the resident district's average general education revenue and referendum equalization aid
2.33excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
2.34revenue. Special education aid paid to the district or cooperative providing special
2.35instruction and services for the pupil must be increased by the amount of the reduction in
2.36the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
3.1and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
3.2expenditures on the resident school district's books of account under sections 123B.75
3.3and 123B.76. If the resident district's special education aid is insufficient to make the full
3.4adjustment, the remaining adjustment shall be made to other state aid due to the district.
3.5    (c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 127A.47,
3.6subdivision 7
, paragraphs paragraph (d) and (e), a charter school where more than 30
3.7percent of enrolled students receive special education and related services, a site approved
3.8under section 125A.515, an intermediate district, a special education cooperative, or a
3.9school district that served as the applicant agency for a group of school districts for federal
3.10special education aids for fiscal year 2006 may apply to the commissioner for authority to
3.11charge the resident district an additional amount to recover any remaining unreimbursed
3.12costs of serving pupils with a disability. The application must include a description of the
3.13costs and the calculations used to determine the unreimbursed portion to be charged to the
3.14resident district. Amounts approved by the commissioner under this paragraph must be
3.15included in the tuition billings or aid adjustments under paragraph (a) or (b), or section
3.16127A.47, subdivision 7 , paragraph (d) or (e), as applicable.
3.17    (d) (c) For purposes of this subdivision and section 127A.47, subdivision 7,
3.18paragraphs paragraph (d) and (e), "general education revenue and referendum equalization
3.19aid" means the sum of the general education revenue according to section 126C.10,
3.20subdivision 1, excluding alternative teacher compensation revenue, plus the referendum
3.21equalization aid according to section 126C.17, subdivision 7, as adjusted according to
3.22section 127A.47, subdivision 7, paragraphs (a) to (c).
3.23EFFECTIVE DATE.This section is effective July 1, 2013.

3.24    Sec. 2. Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:
3.25    Subd. 7. Alternative attendance programs. The general education aid and special
3.26education aid for districts must be adjusted for each pupil attending a nonresident district
3.27under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
3.28must be made according to this subdivision.
3.29    (a) General education aid paid to a resident district must be reduced by an amount
3.30equal to the referendum equalization aid attributable to the pupil in the resident district.
3.31    (b) General education aid paid to a district serving a pupil in programs listed in this
3.32subdivision must be increased by an amount equal to the greater of (1) the referendum
3.33equalization aid attributable to the pupil in the nonresident district; or (2) the product of
3.34the district's open enrollment concentration index, the maximum amount of referendum
3.35revenue in the first tier, and the district's net open enrollment pupil units for that year. A
4.1district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
4.2lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
4.3served to its resident pupil units for that year and 0.2. This clause does not apply to a
4.4school district where more than 50 percent of the open enrollment students are enrolled
4.5solely in online learning courses.
4.6    (c) If the amount of the reduction to be made from the general education aid of the
4.7resident district is greater than the amount of general education aid otherwise due the
4.8district, the excess reduction must be made from other state aids due the district.
4.9    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
4.10area learning center, operated according to paragraph (f), providing special instruction and
4.11services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
4.12section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
4.13be equal to (1) the actual cost of providing special instruction and services to the pupil,
4.14including a proportionate amount for special transportation and unreimbursed building
4.15lease and debt service costs for facilities used primarily for special education, minus (2)
4.16if the pupil receives special instruction and services outside the regular classroom for
4.17more than 60 percent of the school day, the amount of general education revenue and
4.18referendum aid attributable to that pupil for the portion of time the pupil receives special
4.19instruction and services outside of the regular classroom, excluding portions attributable to
4.20district and school administration, district support services, operations and maintenance,
4.21capital expenditures, and pupil transportation, minus (3) special education aid attributable
4.22to that pupil, that is received by the district providing special instruction and services.
4.23For purposes of this paragraph, general education revenue and referendum equalization
4.24aid attributable to a pupil must be calculated using the serving district's average general
4.25education revenue and referendum equalization aid per adjusted pupil unit.
4.26    (e) For fiscal year 2007 and later, special education aid paid to a resident district must
4.27be reduced by an amount equal to (d) For purposes of this subdivision, the "unreimbursed
4.28cost of providing special education and services" means the difference between: (1) the
4.29actual cost of providing special instruction and services, including special transportation
4.30and unreimbursed building lease and debt service costs for facilities used primarily for
4.31special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as
4.32defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus (2)
4.33if the pupil receives special instruction and services outside the regular classroom for more
4.34than 60 percent of the school day, the amount of general education revenue and referendum
4.35equalization aid attributable to that pupil for the portion of time the pupil receives special
4.36instruction and services outside of the regular classroom, excluding portions attributable to
5.1district and school administration, district support services, operations and maintenance,
5.2capital expenditures, and pupil transportation, minus (3) special education aid attributable
5.3to that pupil, that is received by the district providing special instruction and services.
5.4For purposes of this paragraph, general education revenue and referendum equalization
5.5aid attributable to a pupil must be calculated using the serving district's average general
5.6education revenue and referendum equalization aid per adjusted pupil unit.
5.7(e) Special education aid paid to a resident district must be reduced by the following
5.8amounts:
5.9(1) for fiscal year 2015, by an amount equal to 90 percent of the unreimbursed cost
5.10of providing special education and services;
5.11(2) for fiscal year 2016, by an amount equal to 66 percent of the unreimbursed cost
5.12of providing special education and services; and
5.13(3) for fiscal year 2017, by an amount equal to 33 percent of the unreimbursed cost
5.14of providing special education and services.
5.15For fiscal years 2018 and later, special education aid paid to a resident district is not
5.16reduced except as provided in paragraph (f).
5.17(f) Notwithstanding paragraph (e), special education aid paid to a resident district
5.18must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
5.19education and services provided to students at an intermediate district, a cooperative, or a
5.20charter school where the percentage of students eligible for special education services is at
5.21least 70 percent of the charter school's total enrollment.
5.22(g) Special education aid paid to the district or cooperative providing special
5.23instruction and services for the pupil, or to the fiscal agent district for a cooperative,
5.24must be increased by the amount of the reduction in the aid paid to the resident district
5.25 under paragraphs (e) and (f). If the resident district's special education aid is insufficient
5.26to make the full adjustment, the remaining adjustment shall be made to other state aids
5.27due to the district.
5.28    (f) (h) An area learning center operated by a service cooperative, intermediate
5.29district, education district, or a joint powers cooperative may elect through the action of
5.30the constituent boards to charge the resident district tuition for pupils rather than to have
5.31the general education revenue paid to a fiscal agent school district. Except as provided in
5.32paragraph (d) or (e) or (f), the district of residence must pay tuition equal to at least 90
5.33percent of the district average general education revenue per pupil unit minus an amount
5.34equal to the product of the formula allowance according to section 126C.10, subdivision
5.352
, times .0485, calculated without compensatory revenue and transportation sparsity
5.36revenue, times the number of pupil units for pupils attending the area learning center.
6.1EFFECTIVE DATE.This section is effective July 1, 2013.
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