HF 195

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; modifying the
referendum aid adjustment for open enrollment
students; altering the statewide property tax;
amending Minnesota Statutes 2004, sections 127A.47,
subdivision 7; 275.025, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 127A.47,
subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general
education aid for districts must be adjusted for each pupil
attending a nonresident district under sections 123A.05 to
123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The
adjustments must be made according to this subdivision.

(a) General education aid paid to a resident district must
be reduced by an amount equal to the referendum equalization aid
attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a
pupil in programs listed in this subdivision must be increased
by an amount equal to the new text begin greater of (1) the new text end referendum
equalization aid attributable to the pupil in the nonresident
district deleted text begin . deleted text end new text begin ; or (2) the product of the district's open enrollment
concentration index, the maximum amount of referendum revenue in
the first tier, and the district's net open enrollment pupil
units for that year. A district's open enrollment concentration
equals the greater of zero, or the lesser of 1.0, or the ratio
of the district's number of net open enrollment pupil units for
that year divided by its resident pupil units for that year to
.50.
new text end

(c) If the amount of the reduction to be made from the
general education aid of the resident district is greater than
the amount of general education aid otherwise due the district,
the excess reduction must be made from other state aids due the
district.

(d) The district of residence must pay tuition to a
district or an area learning center, operated according to
paragraph (e), providing special instruction and services to a
pupil with a disability, as defined in section 125A.02, or a
pupil, as defined in section 125A.51, who is enrolled in a
program listed in this subdivision. The tuition must be equal
to (1) the actual cost of providing special instruction and
services to the pupil, including a proportionate amount for debt
service and for capital expenditure facilities and equipment,
and debt service but not including any amount for
transportation, minus (2) the amount of general education
revenue and special education aid but not including any amount
for transportation, attributable to that pupil, that is received
by the district providing special instruction and services.

(e) An area learning center operated by a service
cooperative, intermediate district, education district, or a
joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for
pupils rather than to have the general education revenue paid to
a fiscal agent school district. Except as provided in paragraph
(d), the district of residence must pay tuition equal to at
least 90 percent of the district average general education
revenue per pupil unit minus an amount equal to the product of
the formula allowance according to section 126C.10, subdivision
2, times .0485, calculated without basic skills revenue and
transportation sparsity revenue, times the number of pupil units
for pupils attending the area learning center, plus the amount
of compensatory revenue generated by pupils attending the area
learning center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 275.025,
subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

The state general levy is
levied against commercial-industrial property and seasonal
residential recreational property, as defined in this section.
The state general levy base amount is $592,000,000 for taxes
payable in 2002. new text begin The base amount is increased by $2,000,000 for
taxes payable in 2006 and later. new text end For taxes payable in
subsequent years, the levy base amount is increased each year by
multiplying the levy base amount for the prior year by the sum
of one plus the rate of increase, if any, in the implicit price
deflator for government consumption expenditures and gross
investment for state and local governments prepared by the
Bureau of Economic Analysts of the United States Department of
Commerce for the 12-month period ending March 31 of the year
prior to the year the taxes are payable. The tax under this
section is not treated as a local tax rate under section 469.177
and is not the levy of a governmental unit under chapters 276A
and 473F.

The commissioner shall increase or decrease the preliminary
or final rate for a year as necessary to account for errors and
tax base changes that affected a preliminary or final rate for
either of the two preceding years. Adjustments are allowed to
the extent that the necessary information is available to the
commissioner at the time the rates for a year must be certified,
and for the following reasons:

(1) an erroneous report of taxable value by a local
official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for
commercial-industrial or seasonal residential recreational
property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of
assessment submitted under section 270.11, subdivision 2, for
the same year.

The commissioner may, but need not, make adjustments if the
total difference in the tax levied for the year would be less
than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end