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Minnesota Legislature

TWENTY-FOURTH MEETING - Education Finance Division

2019-2020 Regular Session

STATE OF MINNESOTA TWENTY-FOURTH MEETING
MN HOUSE OF REPRESENTATIVES NINETY FIRST SESSION

EDUCATION FINANCE DIVISION
MINUTES

Representative Jim Davnie, Chair of the Education Finance Division, called the meeting to order at 9:54 am on March 19, 2019 in Room 5 of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:

DAVNIE, Jim
SANDSTEDE, Julie
KRESHA, Ron
BENNETT, Peggy
DANIELS, Brian
DEMUTH, Lisa
DETTMER, Bob
EDELSON, Heather
ERICKSON, Sondra
HUOT, John
JURGENS, Tony
KOTYZA-WITTHUHN, Carlie
KUNESH-PODEIN, Mary
MARQUART, Paul
MURPHY, Mary
NORNES, Bud
PRYOR, Laurie
RICHARDSON, Ruth
SANDELL, Steve
YOUAKIM, Cheryl

A quorum was present

HF 194 (Murphy) Simplifies the number of calculations for special education aid, increases special education funding by about $360 million per year beginning in the 2020-21 school year, and reduces the amount of a serving school district or charter school’s unreimbursed costs that can be billed back to the resident school district from 90 to 50 percent. It also increases general education aid for charter schools to offset a portion of the revenue that charter schools will no longer receive from billing school districts for 90 percent of their unreimbursed special education costs.

Rep. Murphy moved that HF 194 be presented before the committee; be laid over for possible inclusion in a future division report.

Rep. Murphy moved that the amendment to HF 194, A1, be adopted by the committee. Motion prevailed.

Rep. Murphy renewed the motion that HF 194, as amended, be laid over for possible inclusion in a future division report. The bill was laid over.

HF 1162 (Wolgamott) Proposes to fund an increasing percentage of the special education cross subsidy, starting with 3.3 percent in fiscal year 2020 and increasing to 13.2 percent in fiscal year 2023 and later at a cost of roughly $30 million in fiscal year 2020 and $60 million in fiscal year 2021.

Rep. Edelson moved that HF 1162 be presented before the committee; be laid over for possible inclusion in a future division report.

Rep. Wolgamott presented HF 1162.

Rep. Edelson renewed the motion that HF 1162 be laid over for possible inclusion in a future division report. The bill was laid over.

HF 1879 (Loeffler) Phases in a new state aid to cover an increasing portion of the tuition bill backs that would otherwise have been charged to the resident school districts.

Chair Davnie moved that HF 1879 be presented before the committee; be laid over for possible inclusion in a future division report.

Rep. Loeffler presented HF 1879.

Chair Davnie renewed the motion that HF 1879 be laid over for possible inclusion in a future division report. The bill was laid over.

HF 1025 (Carlson, L.) Proposes to eliminate the remaining special education aid shift by applying to it any future budget surplus above the amounts currently reserved (roughly $37 million to eliminate this extra special education aid shift). This is a onetime cost.

Chair Davnie moved that HF 1025 be presented before the committee; be laid over for possible inclusion in a future division report.

Chair Davnie moved that the amendment to HF 1025, A1, be adopted by the committee. Motion prevailed.

Rep. Carlson presented HF 1025, as amended.

Chair Davnie renewed the motion that HF 1025, as amended, be laid over for possible inclusion in a future division report. The bill was laid over.

Testifiers:

Cindy Rourke, Special Education Teacher, Ordean East Middle School
Casper Hill, Charter School Advocate
Erin Wanat, Director, Indigo Education
Geri Swanson, Teacher, Clearview Elementary, St. Cloud
Al Dahlgren, School Board Member, St. Cloud
Pat Devine, Superintendent, Waconia Public Schools
Lori Posch, Executive Director of Teaching & Learning, St. Cloud Schools
Erin Clotfelter, Parent
Steve Unowsky, Superintendent, Richfield Schools


The meeting of the Education Finance Division was adjourned at 11:15 am.




______________________________________________
Representative Jim Davnie, Chair


______________________________________________
Adam Kopel, (Substitution) Committee Legislative Assistant


More Info On This Meeting..
Agenda:

HF 194 (Murphy) Special education funding increased for school districts, tuition bill backs to resident school districts reduced, and local optional revenue and operating referendum revenue added to general education revenue for charter schools. HF 1162 (Wolgamott) Special education funding increased. HF 1879 (Loeffler) Unreimbursed special education costs state fund created, report required, and money appropriated. HF 1025 (Carlson, L) Forecasted positive general fund balances required to be allocated to restore special education aid payment percentage. More bills may be added and the agenda order may change.

Bills Added:
  • HF194 (Murphy) - Special education funding increased for school districts, tuition billbacks to resident school districts reduced, and local optional revenue and operating referendum revenue added to general education revenue for charter schools.
  • HF1162 (Wolgamott) - Special education funding increased.
  • HF1025 (Carlson) - Forecasted positive general fund balances required to be allocated to restore special education aid payment percentage.
  • HF1879 (Loeffler) - Unreimbursed special education costs state fund created, report required, and money appropriated.
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01:04 - HF194 (Murphy) Special education funding increased for school districts, tuition bill backs to resident school districts reduced, and local optional revenue and operating referendum revenue added to general education revenue for charter schools. 38:55 - HF1162 (Wolgamott) Special education funding increased. 1:06:20 - HF1879 (Loeffler) Unreimbursed special education costs state fund created, report required, and money appropriated. 1:16:01 - HF1025 (Carlson, L) Forecasted positive general fund balances required to be allocated to restore special education aid payment percentage. Runs 1 hour, 21 minutes.