HF 2544

as introduced - 88th Legislature (2013 - 2014) Posted on 02/27/2014 03:22pm

A bill for an act
relating to education finance; clarifying the calculation of location equity
revenue; amending Minnesota Statutes 2013 Supplement, sections 126C.10,
subdivision 2e; 126C.17, subdivisions 1, 6, 7b, 9, 9a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2e,
is amended to read:

Subd. 2e.

Location equity revenue.

(a) For a school district with any of its area
located within the seven-county metropolitan area, location equity revenue equals $424
times the adjusted pupil units of the district for that school year.

(b) For all other school districts deleted text begin with more than 2,000 pupils in adjusted average
daily membership deleted text end new text begin not eligible for small schools revenue under subdivision 2c, new text end for the
fiscal year ending in the year before the levy is certified, location equity revenue equals
$212 times the adjusted pupil units of the district for that year.

(c) A district's location equity levy equals its location equity revenue times the lesser
of one or the ratio of its referendum market value per resident pupil unit to $510,000. The
location equity revenue levy must be spread on referendum market value.

(d) A district's location equity aid equals its location equity revenue less its location
equity levy, times the ratio of the actual amount levied to the permitted levy.

(e) A school district may elect not to participate in the location equity revenue
program by a board vote taken prior to September 1 of the fiscal year before the fiscal year
for which the decision not to participate becomes effective. The board resolution must
state which fiscal years the district will not participate. A copy of the board resolution
to not participate must be submitted to the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2016
and later.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 1, is
amended to read:

Subdivision 1.

Referendum allowance.

(a) A district's initial referendum allowance
for fiscal year 2015 equals the result of the following calculations:

(1) multiply the referendum allowance the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
elections held before July 1, 2013, by the resident marginal cost pupil units the district
would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;

(2) add to the result of clause (1) the adjustment the district would have received
under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
(c), based on elections held before July 1, 2013;

(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
year 2015; deleted text begin and
deleted text end

(4) new text begin add to the result of clause (3) any additional referendum allowance per adjusted
pupil unit authorized by elections held between July 1, 2013, and December 31, 2013;
new text end

new text begin (5) add to the result of clause (4) any additional referendum allowance resulting
from inflation adjustments approved by the voters prior to January 1, 2014;
new text end

new text begin (6) subtract from the result of clause (5) $424 for a district receiving location equity
revenue under section 126C.10, subdivision 2e, paragraph (a), or $212 for a district
receiving location equity revenue under section 126C.10, subdivision 2e, paragraph (b); and
new text end

new text begin (7) new text end if the result of clause deleted text begin (3) deleted text end new text begin (6) new text end is less than zero, set the allowance to zero.

(b) A district's referendum allowance equals the sum of the district's initial
referendum allowance deleted text begin for fiscal year 2015 deleted text end , plus any additional referendum allowance per
adjusted pupil unit authorized after deleted text begin June 30 deleted text end new text begin December 31 new text end , 2013, minus deleted text begin (i) the location
equity revenue subtraction, and (ii) deleted text end any allowances expiring in fiscal year 2016 or later,
provided that the allowance may not be less than zero. For a district with more than one
referendum allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17,
the allowance calculated under paragraph (a) new text begin , clause (3), new text end must be divided into components
such that the same percentage of the district's allowance expires at the same time as the old
allowances would have expired under Minnesota Statutes 2012, section 126C.17. new text begin For a
district with more than one allowance for fiscal year 2015 that expires in the same year, the
reduction under paragraph (a), clause (6), to offset location equity revenue shall be made
first from any allowances that do not have an inflation adjustment approved by the voters.
new text end

deleted text begin (c) For purposes of this subdivision, a district's location equity revenue subtraction
equals $424 for a district receiving location equity revenue under section 126C.10,
subdivision 2d, paragraph (a), $212 for a district receiving location equity revenue under
section 126C.10, subdivision 2d, paragraph (b), and zero for all other school districts.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2016
and later.
new text end

Sec. 3.

Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
amended to read:

Subd. 6.

Referendum equalization levy.

(a) deleted text begin For fiscal year 2003 and later,
deleted text end A district's referendum equalization levy equals the sum of the first tier referendum
equalization levy, the second tier referendum equalization levy, and the third tier
referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $880,000.

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $510,000.

(d) A district's third tier referendum equalization levy equals the district's third
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $290,000.

Sec. 4.

Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b, is
amended to read:

Subd. 7b.

Referendum aid guarantee.

(a) Notwithstanding subdivision 7, new text begin the sum
of new text end a district's referendum equalization aid new text begin and location equity aid under section 126C.10,
subdivision 2e, new text end for fiscal year 2015 must not be less than the sum of the referendum
equalization aid the district would have received for fiscal year 2015 under Minnesota
Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
(a), (b), and (c).

(b) Notwithstanding subdivision 7, new text begin the sum of new text end referendum equalization aid new text begin and
location equity aid under section 126C.10, subdivision 2e, new text end for fiscal year 2016 and later,
for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must
not be less than the product of (1) the district's referendum equalization aid for fiscal year
2015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
of one or the ratio of the district's referendum market value used for fiscal year 2015
referendum equalization calculations to the district's referendum market value used for
that year's referendum equalization calculations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 5.

Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district
at a referendum called for the purpose. The referendum may be called by the board.
The referendum must be conducted one or two calendar years before the increased levy
authority, if approved, first becomes payable. Only one election to approve an increase
may be held in a calendar year. Unless the referendum is conducted by mail under
subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
first Monday in November. The ballot must state the maximum amount of the increased
revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
of increased revenue per adjusted pupil unit that differs from year to year over the number
of years for which the increased revenue is authorized or may state that the amount shall
increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
state that existing referendum levy authority is expiring. In this case, the ballot may also
compare the proposed levy authority to the existing expiring levy authority, and express
the proposed increase as the amount, if any, over the expiring referendum levy authority.
The ballot must designate the specific number of years, not to exceed ten, for which the
referendum authorization applies. The ballot, including a ballot on the question to revoke
or reduce the increased revenue amount under paragraph (c), must abbreviate the term
"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
be modified to read, in cases of renewing existing levies at the same amount per pupil
as in the previous year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
SCHEDULED TO EXPIRE."

The ballot may contain a textual portion with the information required in this
subdivision and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of .........,
School District No. .., be approved?"

If approved, an amount equal to the approved revenue per adjusted pupil unit times
the adjusted pupil units for the school year beginning in the year after the levy is certified
shall be authorized for certification for the number of years approved, if applicable, or
until revoked or reduced by the voters of the district at a subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer.
Every property owner whose name does not appear on the records of the county auditor
or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increase in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring
and project the anticipated amount of increase over the existing referendum levy in
the first year, if any, in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing levies,
the notice may include the following statement: "Passage of this referendum extends an
existing operating referendum at the same amount per pupil as in the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue
amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
revoke or reduce the revenue amount must state the amount per deleted text begin resident marginal cost
deleted text end new text begin adjusted new text end pupil unit by which the authority is to be reduced. Revenue authority approved
by the voters of the district pursuant to paragraph (a) must be available to the school
district at least once before it is subject to a referendum on its revocation or reduction for
subsequent years. Only one revocation or reduction referendum may be held to revoke or
reduce referendum revenue for any specific year and for years thereafter.

(d) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(e) At least 15 days before the day of the referendum, the district must submit a
copy of the notice required under paragraph (b) to the commissioner and to the county
auditor of each county in which the district is located. Within 15 days after the results
of the referendum have been certified by the board, or in the case of a recount, the
certification of the results of the recount by the canvassing board, the district must notify
the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 6.

Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a, is
amended to read:

Subd. 9a.

Board-approved referendum allowance.

Notwithstanding subdivision
9, a school district may convert up to $300 per adjusted pupil unit of referendum authority
from voter approved to board approved by a board vote. A district with less than $300
per adjusted pupil unit of referendum authority new text begin after the location equity subtraction under
subdivision 1 new text end may authorize new referendum authority up to the difference between
$300 per adjusted pupil unit and the district's referendum authority. The board may
authorize this levy for up to five years and may subsequently reauthorize that authority
in increments of up to five years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end