Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2534 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to education finance; increasing the minimum share of general education
3	3	1.3 funding transferred to an area learning center; amending Minnesota Statutes 2024,
4	4	1.4 sections 123A.05, subdivision 2; 127A.47, subdivision 7.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 123A.05, subdivision 2, is amended to read:
7	7	1.7 Subd. 2.Reserve revenue.Each district that is a member of an area learning center or
8	8	1.8alternative learning program must reserve revenue in an amount equal to the sum of (1) at
9	9	1.9least 90 and no more than 100 percent of the district average general education revenue per
10	10	1.10adjusted pupil unit minus an amount equal to the product of the formula allowance according
11	11	1.11to section 126C.10, subdivision 2, times .0466, calculated without basic skills revenue, local
12	12	1.12optional revenue, and transportation sparsity revenue, times the number of pupil units
13	13	1.13attending an area learning center or alternative learning program under this section, plus
14	14	1.14(2) the amount of basic skills revenue generated by pupils attending the area learning center
15	15	1.15or alternative learning program. The amount of reserved revenue under this subdivision
16	16	1.16may only be spent on program costs associated with the area learning center or alternative
17	17	1.17learning program.
18	18	1.18 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.
19	19	1.19 Sec. 2. Minnesota Statutes 2024, section 127A.47, subdivision 7, is amended to read:
20	20	1.20 Subd. 7.Alternative attendance programs.(a) The general education aid and special
21	21	1.21education aid for districts must be adjusted for each pupil attending a nonresident district
22	22	1Sec. 2.
23	23	REVISOR CR/VJ 25-0485703/11/25
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 2534
29	29	NINETY-FOURTH SESSION
30	30	Authored by Bennett, Mueller and Quam03/20/2025
31	31	The bill was read for the first time and referred to the Committee on Education Finance 2.1under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
32	32	2.2must be made according to this subdivision.
33	33	2.3 (b) For purposes of this subdivision, the "unreimbursed cost of providing special
34	34	2.4education and services" means the difference between: (1) the actual cost of providing
35	35	2.5special instruction and services, including special transportation and unreimbursed building
36	36	2.6lease and debt service costs for facilities used primarily for special education, for a pupil
37	37	2.7with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51,
38	38	2.8who is enrolled in a program listed in this subdivision, minus (2) if the pupil receives special
39	39	2.9instruction and services outside the regular classroom for more than 60 percent of the school
40	40	2.10day, the amount of general education revenue, excluding local optional revenue, plus local
41	41	2.11optional aid and referendum equalization aid as defined in section 125A.11, subdivision 1,
42	42	2.12paragraph (d), attributable to that pupil for the portion of time the pupil receives special
43	43	2.13instruction and services outside of the regular classroom, excluding portions attributable to
44	44	2.14district and school administration, district support services, operations and maintenance,
45	45	2.15capital expenditures, and pupil transportation, minus (3) special education aid under section
46	46	2.16125A.76, excluding cross subsidy reduction aid under section 125A.76, subdivision 2e,
47	47	2.17attributable to that pupil, that is received by the district providing special instruction and
48	48	2.18services. For purposes of this paragraph, general education revenue and referendum
49	49	2.19equalization aid attributable to a pupil must be calculated using the serving district's average
50	50	2.20general education revenue and referendum equalization aid per adjusted pupil unit.
51	51	2.21 (c) For fiscal year 2020, special education aid paid to a resident district must be reduced
52	52	2.22by an amount equal to 85 percent of the unreimbursed cost of providing special education
53	53	2.23and services. For fiscal year 2021 and later, special education aid paid to a resident district
54	54	2.24must be reduced by an amount equal to 80 percent of the unreimbursed cost of providing
55	55	2.25special education and services.
56	56	2.26 (d) Notwithstanding paragraph (c), special education aid paid to a resident district must
57	57	2.27be reduced by an amount equal to 100 percent of the unreimbursed cost of special education
58	58	2.28and services provided to students at an intermediate district, cooperative, or charter school
59	59	2.29where the percent of students eligible for special education services is at least 70 percent
60	60	2.30of the charter school's total enrollment.
61	61	2.31 (e) Notwithstanding paragraph (c), special education aid paid to a resident district must
62	62	2.32be reduced under paragraph (d) for students at a charter school receiving special education
63	63	2.33aid under section 124E.21, subdivision 3, calculated as if the charter school received special
64	64	2.34education aid under section 124E.21, subdivision 1.
65	65	2Sec. 2.
66	66	REVISOR CR/VJ 25-0485703/11/25 3.1 (f) Special education aid paid to the district or cooperative providing special instruction
67	67	3.2and services for the pupil, or to the fiscal agent district for a cooperative, must be increased
68	68	3.3by the amount of the reduction in the aid paid to the resident district under paragraphs (c)
69	69	3.4and (d). If the resident district's special education aid is insufficient to make the full
70	70	3.5adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be made to
71	71	3.6other state aids due to the district.
72	72	3.7 (g) Notwithstanding paragraph (a), general education aid paid to the resident district of
73	73	3.8a nonspecial education student for whom an eligible special education charter school receives
74	74	3.9general education aid under section 124E.20, subdivision 1, paragraph (c), must be reduced
75	75	3.10by an amount equal to the difference between the general education aid attributable to the
76	76	3.11student under section 124E.20, subdivision 1, paragraph (c), and the general education aid
77	77	3.12that the student would have generated for the charter school under section 124E.20,
78	78	3.13subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial education student"
79	79	3.14means a student who does not meet the definition of pupil with a disability as defined in
80	80	3.15section 125A.02 or the definition of a pupil in section 125A.51.
81	81	3.16 (h) An area learning center operated by a service cooperative, intermediate district,
82	82	3.17education district, or a joint powers cooperative may elect through the action of the
83	83	3.18constituent boards to charge the resident district tuition for pupils rather than to have the
84	84	3.19general education revenue paid to a fiscal agent school district. Except as provided in
85	85	3.20paragraph (f), the district of residence must pay tuition equal to at least 90 and no more than
86	86	3.21100 percent of the district average general education revenue per pupil unit minus an amount
87	87	3.22equal to the product of the formula allowance according to section 126C.10, subdivision 2,
88	88	3.23times .0466, calculated without compensatory revenue, local optional revenue, and
89	89	3.24transportation sparsity revenue, times the number of pupil units for pupils attending the area
90	90	3.25learning center.
91	91	3.26 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.
92	92	3Sec. 2.
93	93	REVISOR CR/VJ 25-0485703/11/25