MN SF489

Department of Education shall hire a consultant on a three-year contract (fiscal years 2012-2014) to study and recommend ways for school districts and charter schools to combine services and improve efficiency, with the consultant paid up to 5% of documented savings.

School districts and charter schools are encouraged to develop shared services arrangements and measure resulting savings, which must be allocated to classroom education and reported to the commissioner by January 15 each year.

General education aid for participating districts shall be reduced by 5% of calculated savings (or the contracted consultant percentage if lower) in fiscal years 2012-2014, with the deducted funds appropriated to pay for the consultant contract.

School districts within each economic development region compete annually to generate the most savings per adjusted average daily membership, with the winning region's participating districts eligible for shared services grants of up to $500 per adjusted average daily membership (maximum $5,000,000 per year).

Appropriates $5,000,000 for shared services grants in fiscal year 2012 and $5,000,000 in fiscal year 2013, with a base of $5,000,000 for fiscal year 2014 and $0 for fiscal year 2015.