1.1.................... moves to amend H.F. No. 638 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [120B.361] SCHOOL AND DISTRICT GRADING SYSTEM AND
1.4SCHOOL RECOGNITION PROGRAM.
1.5    Subdivision 1. School and district grades. (a) Consistent with the state growth
1.6targets established under sections 120B.299 and 120B.35, subdivision 3, paragraphs (a)
1.7and (b), and the school performance report cards under section 120B.36, subdivision
1.81, an "A to F" school and district grading system is established to help identify those
1.9schools and districts where students are achieving low, medium, or high growth and
1.10achieving or not achieving proficiency on statewide assessments under section 120B.30.
1.11For purposes of this section, and using the state growth target, the commissioner annually
1.12must grade each public school and district "A" to "F" and then report that grade under
1.13section 120B.36, subdivision 1, based on the following calculations:
1.14(1) 50 percent of a school's grade must be determined based on the numbers and
1.15percentages of students in each applicable student category for which assessment data
1.16is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
1.17paragraph (c), who achieved proficiency on the statewide reading and math assessments
1.18under section 120B.30 in the previous school year;
1.19(2) 25 percent of a school's grade must be determined based on the numbers and
1.20percentages of students in each applicable student category for which assessment data
1.21is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
1.22paragraph (c), who achieved low growth, medium growth, or high growth on the statewide
1.23reading and math assessments under section 120B.30 in the previous school year;
1.24(3) 15 percent of a school's grade must be determined based on the numbers and
1.25percentages of students in each applicable student category for which assessment data
1.26is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
2.1paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
2.2reading assessments under section 120B.30 in the previous school year;
2.3(4) 10 percent of a school's grade must be determined based on the numbers and
2.4percentages of students in each applicable student category for which assessment data
2.5is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
2.6paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
2.7math assessments under section 120B.30 in the previous school year; and
2.8(5) using the calculations in clauses (1) to (4), a school district's grade must be
2.9determined based on the combined average scores of all district schools.
2.10(b) The grade a school or district receives under this subdivision must accurately
2.11reflect the differences in schools' performance based on students' proficiency and growth
2.12and the calculations required under this subdivision. A school or district may appeal its
2.13grade in writing to the commissioner within 30 days of receiving notice of its grade. The
2.14commissioner's decision regarding the grade is final. Grades given under this section are
2.15nonpublic data under section 13.02, subdivision 9, until not later than 10 days after the
2.16appeal under this paragraph is complete.
2.17    Subd. 2. School recognition. (a) A school that received a letter grade of "A" in the
2.18previous school year, improved at least one letter grade in the previous school year, or
2.19improved more than one letter grade and maintained that improved grade for at least two
2.20school years is eligible to receive a school recognition award.
2.21(b) A school recognition award under this subdivision equals $100 per enrollee for
2.22each eligible school. The commissioner must distribute the award to each eligible school.
2.23(c) An eligible school that receives a school recognition award may use the award to:
2.24(1) pay onetime bonuses for licensed staff employed at the school;
2.25(2) pay onetime expenditures for educational equipment or materials to help
2.26maintain or improve student academic achievement;
2.27(3) temporarily employ licensed or otherwise qualified staff to help maintain or
2.28improve student academic achievement.
2.29Notwithstanding other law to the contrary, any award a school receives under this
2.30subdivision is not subject to a collective bargaining agreement.
2.31(d) To distribute the award at the school, and consistent with paragraph (c), an
2.32eligible school may select a site team that includes at least the school principal or other
2.33person having administrative control of the school, teachers employed at the school, the
2.34parent of a student enrolled in the school, and a community representative to decide
2.35how best to use the award. Alternatively, if no site team is selected by November 1 in
3.1the school year in which the award is made, the school principal or other person having
3.2administrative control of the school must distribute the award.
3.3EFFECTIVE DATE.This section is effective the day following final enactment and
3.4requires the education commissioner to use student performance data in the 2011-2012
3.5school year, determine and report a letter grade for each school, and distribute school
3.6recognition awards beginning in the 2012-2013 school year and later.

3.7    Sec. 2. Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:
3.8    Subdivision 1. General education revenue. For fiscal year 2006 and later,
3.9The general education revenue for each district equals the sum of the district's basic
3.10revenue, extended time revenue, gifted and talented revenue, basic skills revenue, training
3.11and experience revenue, secondary sparsity revenue, elementary sparsity revenue,
3.12transportation sparsity revenue, total operating capital revenue, equity revenue, alternative
3.13teacher compensation revenue, school recognition award, and transition revenue.
3.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
3.15and later.

3.16    Sec. 3. REPORT; PLAN FOR IMPLEMENTING SCHOOL AND DISTRICT
3.17GRADING SYSTEM.
3.18The commissioner of education must convene a stakeholder group that includes
3.19assessment and evaluation directors, educators, and researchers to advise the commissioner
3.20on developing a plan to implement the school and district grading system under Minnesota
3.21Statutes, section 120B.361. The commissioner must present the plan in writing to the
3.22education policy and finance committees of the legislature by February 15, 2012, and
3.23include any recommendations for further clarifying Minnesota Statutes, section 120B.361.
3.24EFFECTIVE DATE.This section is effective the day following final enactment.

3.25    Sec. 4. REPORT; RECOMMENDATIONS FOR INCREASING SCHOOLS'
3.26FINANCIAL FLEXIBILITY.
3.27The commissioner of education must submit to the education policy and finance
3.28committees of the legislature by February 1, 2013, written recommendations that identify
3.29fiscal mandates the legislature might waive to give greater financial flexibility to schools
3.30receive a letter grade of "A" or improve more than one letter grade within a school year
3.31under Minnesota Statutes, section 120B.361, subdivision 1.
4.1EFFECTIVE DATE.This section is effective the day following final enactment."
4.2Renumber the sections in sequence and correct the internal references
4.3Amend the title accordingly