• Compensatory. School sites receive compensatory revenue based on the percentage of students eligible for free- and reduced-priced lunch; however, the percent is capped. Compensatory revenue must be allocated to the school site in which the pupil who generated the revenue receives instruction, and must be used to meet the educational needs of pupils whose educational progress related to state or local content or performance standards is below the level that is appropriate for pupils at that age level. Each school’s site decision-making team, or instruction and curriculum advisory committee if there is no site decision-making team, must make recommendations on how the revenue is to be spent. Districts that receive compensatory revenue must maintain separate accounts for the revenue and report on its expenditure.
  
  
• Limited English Proficiency (LEP). Districts receive LEP revenue based on the number of students with limited proficiency in English for their first five years of enrollment in Minnesota public schools. In addition, a per pupil amount is provided to districts with concentrations of LEP students. The per pupil funding increases as the concentration increases (though the concentration percentage is capped).
  
  An LEP student is defined as one whose primary language is not English, whose English language skills do not allow full classroom participation, whose prior year score on an emerging academic English test is below the cutoff score, and who is enrolled in an LEP educational program but has not been enrolled in Minnesota public schools for five or more years.
  
  In 2003, Minnesota capped funding for ELL services at five years even though districts are still required to provide services to ELL students regardless of their funding status. 

Resources

December 2004 - Learning English as a Second Language Takes Time -One of the most extensive studies of Limited English Proficient (LEP) students to-date provides evidence that the five-year limit imposed by the Minnesota Legislature is inappropriate and potentially harmful to Minnesota’s LEP students. The study shows the long-term benefits of bilingual education only occur when students have access to bilingual education for a minimum of four to seven years, AMSD Connections (scroll to page 3).

Minnesota Department of Education

• ELL Education Program Guidelines (pdf)
  
  
• Basic Skills Cross-Subsidy Reports (html)