MN HF557

Department of Education must enter a three-year contract with a consultant to study and recommend combining services across school districts and charter schools, with consultant paid up to 5% of documented shared services savings in fiscal years 2012-2014.

School districts and charter schools are encouraged to develop shared services arrangements and measure resulting savings, which must be reported annually to the commissioner by January 15 in 2013, 2014, and 2015.

School districts within each economic development region compete to generate the highest savings per adjusted average daily membership, with the winning region's districts eligible for shared services grants of up to $500 per adjusted average daily membership, capped at $5,000,000 per year.

General education aid is reduced by 5% of documented shared services savings (or the contracted consultant percentage if lower) in fiscal years 2012-2014, with remaining savings allocated to classroom education.

$5,000,000 is appropriated to the Department of Education for fiscal years 2012 and 2013, with a base of $5,000,000 for fiscal year 2014 and $0 for fiscal year 2015.