HF 1008

as introduced - 87th Legislature (2011 - 2012) Posted on 03/10/2011 09:38am

A bill for an act
relating to education finance; modifying charter school revenue formulas;
amending Minnesota Statutes 2010, section 124D.11, subdivisions 1, 4.

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

Section 1.

Minnesota Statutes 2010, section 124D.11, subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

(a) General education revenue must
be paid to a charter school as though it were a district. The general education revenue
for each adjusted marginal cost pupil unit is the state average general education revenue
per pupil unit, plus the referendum equalization aid allowance in the pupil's district of
residence, new text begin plus savings aid under subdivision 4, paragraph (c), new text end 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, extended time revenue, alternative
teacher compensation revenue, transition revenue, and transportation sparsity revenue,
plus basic skills revenue, extended time revenue, basic alternative teacher compensation
aid according to section 126C.10, subdivision 34, and transition revenue as though the
school were a school district. The general education revenue for each extended time
marginal cost pupil unit equals $4,378.

(b) Notwithstanding paragraph (a), for charter schools in the first year of operation,
general education revenue shall be computed using the number of adjusted pupil units
in the current fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 2.

Minnesota Statutes 2010, section 124D.11, subdivision 4, is amended to read:

Subd. 4.

Building lease new text begin and savings new text end aid.

new text begin (a) new text end When a charter school finds it
economically advantageous to rent or lease a building or land for any instructional
purposes and it determines that the total operating capital revenue under section 126C.10,
subdivision 13, is insufficient for this purpose, it may apply to the commissioner for
building lease aid for this purpose. The commissioner must review and either approve or
deny a lease aid application using the following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school.

new text begin (b) new text end A charter school must not use the building lease aid it receives for custodial,
maintenance service, utility, or other operating costs. The amount of building lease aid
per pupil unit served for a charter school for any year shall not exceed the lesser of deleted text begin (a) deleted text end new text begin
(1) new text end 90 percent of the approved cost or deleted text begin (b) deleted text end new text begin (2) new text end the product of the pupil units served for the
current school year times the greater of the charter school's building lease aid per pupil
unit served for fiscal year 2003, excluding the adjustment under Laws 2002, chapter
392, article 6, section 4, or $1,200.

new text begin (c) If a charter school, currently receiving aid under this subdivision, negotiates a
lease that would decrease the lease aid per pupil unit that the charter school receives, the
charter school's savings aid shall equal one-half of that difference. If a charter school
has not previously received aid under this subdivision, the charter school's savings aid
shall equal one-half of the difference between $1,200 and the school's initial lease aid
per pupil unit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end