DIVISION OF PROGRAM FINANCE
This document provides a brief summary of integration revenue, levy, and aid calculations, as well as the reporting requirements for integration revenue and expenditures. Statutes and Rules are linked to the Minnesota Revisor of Statutes Office website, where you can read full text.
Districts required to file a desegregation plan under Minnesota Rules, parts 3535.0100 to 3535.0180, are eligible to receive integration revenue according to Minnesota Statutes, section 124D.86. Subdivision 1 of this section states that integration revenue “must be used for students to have increased and sustained interracial contacts and improved educational opportunities and outcomes designed to close the academic achievement gap between white students and protected students…through classroom experiences, staff initiatives, and other educationally related programs….” All integration revenue expenditures must be consistent with the approved budget plan required for receipt of integration revenue.
All eligible districts—including Minneapolis, St. Paul, and Duluth—must annually submit a board-approved integration plan budget according to the requirements of Minnesota Rules 3535.0100 to 3535.0180 to the Minnesota Department of Education before they may receive integration revenue (Minn. Stat. § 124D.86, Subd. 1a).
Budgets for the fiscal year beginning on July 1 must be submitted to MDE Division of Equity and Innovation by March 15 for review and approval by May 15.
Minneapolis = $480 x adjusted pupil units:
St. Paul = $445 x adjusted pupil units.
Duluth = $206 x adjusted pupil units.
Districts with Racially Identifiable Schools have one or more schools with a protected race student enrollment concentration that is at least 20 percentage points greater than the entire district’s for the same grade levels (Minnesota Rules Part 3535.0160).
Racially Isolated Districts have a protected race student enrollment concentration that is at least 20 percentage points greater than that of adjoining districts (Minnesota Rules 3535.0170).
Adjoining Districts are contiguous to, and have a protected race student enrollment concentration that is at least 20 percentage points less than that of a racially isolated district, and participate in a multidistrict collaboration council with the racially isolated district.
Voluntary Districts are not contiguous to a racially isolated district, but belong to a multidistrict integration collaborative and, upon submission and approval of an integration plan and budget, may receive integration revenue (Minn. Stat. § 124D.86, Subd. 3, paragraph (6)).
Integration Revenue equals the lesser of:
Minneapolis, St. Paul, and Duluth:
All Other Eligible Districts, the lesser of:
Levy adjustment is calculated if revenue estimate changes due to budget or pupil data updates:
Final levy authority is based on final revenue
Final adjustment reflects difference between initial and final levy authority, less any earlier adjustment certified.
Integration aid is not pro-rated if a district levies less than the levy limitation.
Final aid entitlement is calculated at 70 percent of final revenue, which is the lesser of the formula rate x adjusted pupils, the approved integration plan budget or the district’s actual integration expenditures.
Districts eligible to receive integration revenue, except for Minneapolis, St. Paul and Duluth, can receive additional aid for serving Minneapolis, St. Paul, or Duluth residents whose enrollment contributes to desegregation or integration purposes.
Maximum Alternative Attendance aid allowance per adjusted pupil unit equals the integration revenue rate of the student’s district of residence ($480-Minneapolis, $445-St. Paul, $206-Duluth), less the amount of per-pupil integration (aid/levy) revenue the student generates for the enrolling district.
Alternative Attendance aid is the lesser of the maximum formula allowance or actual expenditures reported on UFARS, Finance code 312.
Districts must have an MDE-approved integration plan budget by June 15 to be able to begin receiving payments on current year integration aid entitlements on July 15.
31 percent of the current fiscal year’s aid entitlement is paid on July 15 (Minn. Stat. § 127A.45, Subd. 12a (a)).
Districts are paid to 100 percent of final aid entitlements in the following fiscal year.
Levies and levy adjustments certified in December are recognized as revenue in the fiscal year that begins on July 1 of the following calendar year by all districts, except for Minneapolis, St. Paul, and Duluth.
Minneapolis, St. Paul and Duluth must early-recognize 100 percent of the integration levy and adjustments certified in the prior calendar year as revenue for the current fiscal year (Minn. Stat. § 123B.75, Subd. 5 (b)).
Integration aid is recognized as revenue in the same year as the integration levy is recognized (Minn. Stat. § 127A.45, Subd. 12a(a)).
Use Finance 315 to record integration aid and levy revenue AND expenditures.
Use Finance 315 to record alternative attendance aid revenues, but use Finance 312 to record alternative attendance expenditures.
Joint powers districts and collaboration councils implementing multi-district integration plans must use Finance 000 and Course code 315 to record integration expenditures, to prevent duplication.