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HF 1600

as introduced - 88th Legislature (2013 - 2014) Posted on 03/18/2013 01:47pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education finance; modifying and repealing certain education funding
provisions; establishing a general education levy; eliminating existing general
education levies; rolling the alternative compensation programs out of general
education; appropriating money; amending Minnesota Statutes 2012, sections
122A.415, by adding subdivisions; 126C.10, subdivisions 1, 13a, 13b, 29, 30,
32, 33, 34, 35, 36; 126C.13, subdivision 4, by adding subdivisions; repealing
Minnesota Statutes 2012, section 126C.10, subdivisions 13a, 13b, 29, 30, 32,
33, 34, 35, 36.

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

Section 1.

Minnesota Statutes 2012, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Basic alternative teacher compensation aid. new text end

new text begin (a) For fiscal year 2015
and later, the basic alternative teacher compensation aid for a school with a plan approved
under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher
compensation revenue under subdivision 1. The basic alternative teacher compensation
aid for an intermediate school district or charter school with a plan approved under section
122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
the number of pupils enrolled in the school on October 1 of the previous year, or on
October 1 of the current year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under subdivision 1.
new text end

new text begin (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
teacher compensation aid entitlement must not exceed $75,636,000 for fiscal year 2015
and later. The commissioner must limit the amount of alternative teacher compensation
aid approved under this section so as not to exceed these limits.
new text end

Sec. 2.

Minnesota Statutes 2012, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Alternative teacher compensation levy. new text end

new text begin For fiscal year 2015 and later,
the alternative teacher compensation levy for a district receiving basic alternative teacher
compensation aid equals the product of (1) the difference between the district's alternative
teacher compensation revenue and the district's basic alternative teacher compensation
aid times, (2) the lesser of one or the ratio of the district's adjusted net tax capacity per
adjusted pupil unit to $5,634.
new text end

Sec. 3.

Minnesota Statutes 2012, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin Alternative teacher compensation equalization aid. new text end

new text begin (a) For fiscal year
2015 and later, a district's alternative teacher compensation equalization aid equals the
district's alternative teacher compensation revenue minus the district's basic alternative
teacher compensation aid minus the district's alternative teacher compensation levy. If a
district does not levy the entire amount permitted, the alternative teacher compensation
equalization aid must be reduced in proportion to the actual amount levied.
new text end

new text begin (b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.
new text end

Sec. 4.

Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

new text begin (a) For fiscal years 2013 and 2014
only,
new text end the general education revenue for each district equals the sum of the district's basic
revenue, extended time revenue, gifted and talented revenue, small schools revenue, basic
skills revenue, training and experience revenue, secondary sparsity revenue, elementary
sparsity revenue, transportation sparsity revenue, total operating capital revenue, equity
revenue, alternative teacher compensation revenue, and transition revenue.

new text begin (b) For fiscal year 2015 and later, the general education revenue for each district
equals the sum of the district's basic revenue, extended time revenue, gifted and talented
revenue, small schools revenue, basic skills revenue, training and experience revenue,
secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue,
total operating capital revenue, equity revenue, and transition revenue.
new text end

Sec. 5.

Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:


Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
deleted text begin year 2007deleted text end new text begin years 2013new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district may levy an amount not more than the
product of its operating capital revenue for the fiscal year times the lesser of one or the
ratio of its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating
capital equalizing factor. The operating capital equalizing factor equals $10,194.

Sec. 6.

Minnesota Statutes 2012, section 126C.10, subdivision 13b, is amended to read:


Subd. 13b.

Operating capital aid.

new text begin For fiscal years 2013 and 2014 only, new text end a district's
operating capital aid equals its operating capital revenue minus its operating capital levy
times the ratio of the actual amount levied to the permitted levy.

Sec. 7.

Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:


Subd. 29.

Equity levy.

To obtain equity revenue for fiscal deleted text begin year 2005deleted text end new text begin years 2013
new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district may levy an amount not more than the product of its equity
revenue for the fiscal year times the lesser of one or the ratio of its referendum market
value per resident marginal cost pupil unit to $476,000.

Sec. 8.

Minnesota Statutes 2012, section 126C.10, subdivision 30, is amended to read:


Subd. 30.

Equity aid.

new text begin For fiscal years 2013 and 2014 only, new text end a district's equity aid
equals its equity revenue minus its equity levy times the ratio of the actual amount levied
to the permitted levy.

Sec. 9.

Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:


Subd. 32.

Transition levy.

To obtain transition revenue for fiscal deleted text begin year 2005deleted text end new text begin years
2013
new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district may levy an amount not more than the product of its
transition revenue for the fiscal year times the lesser of one or the ratio of its referendum
market value per resident marginal cost pupil unit to $476,000.

Sec. 10.

Minnesota Statutes 2012, section 126C.10, subdivision 33, is amended to read:


Subd. 33.

Transition aid.

deleted text begin (a) For fiscal year 2004, a district's transition aid equals
its transition revenue.
deleted text end

deleted text begin (b)deleted text end For fiscal deleted text begin year 2005deleted text end new text begin years 2013new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district's transition aid
equals its transition revenue minus its transition levy times the ratio of the actual amount
levied to the permitted levy.

Sec. 11.

Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:


Subd. 34.

Basic alternative teacher compensation aid.

(a) deleted text begin For fiscal years 2007,
2008, and 2009, the basic alternative teacher compensation aid for a school district
with a plan approved under section 122A.414, subdivision 2b, equals 73.1 percent of
the alternative teacher compensation revenue under section 122A.415, subdivision 1.
The basic alternative teacher compensation aid for an intermediate school district or
charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
the recipient is a charter school, equals $260 times the number of pupils enrolled in the
school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.
deleted text end

deleted text begin (b)deleted text end For fiscal years deleted text begin 2010 and laterdeleted text end new text begin 2013 and 2014 onlynew text end , the basic alternative
teacher compensation aid for a school with a plan approved under section 122A.414,
subdivision 2b
, equals 65 percent of the alternative teacher compensation revenue under
section 122A.415, subdivision 1. The basic alternative teacher compensation aid for
an intermediate school district or charter school with a plan approved under section
122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
the number of pupils enrolled in the school on October 1 of the previous year, or on
October 1 of the current year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under section 122A.415, subdivision 1.

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding deleted text begin paragraphsdeleted text end new text begin paragraph new text end (a) deleted text begin and (b)deleted text end and section 122A.415,
subdivision 1
, the state total basic alternative teacher compensation aid entitlement must
not exceed $75,636,000 for fiscal year 2007 and later. The commissioner must limit the
amount of alternative teacher compensation aid approved under section 122A.415 so as
not to exceed these limits.

Sec. 12.

Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:


Subd. 35.

Alternative teacher compensation levy.

For fiscal deleted text begin year 2007deleted text end new text begin years 2013
new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , the alternative teacher compensation levy for a district receiving basic
alternative teacher compensation aid equals the product of (1) the difference between the
district's alternative teacher compensation revenue and the district's basic alternative
teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
net tax capacity per adjusted pupil unit to $5,634.

Sec. 13.

Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:


Subd. 36.

Alternative teacher compensation aid.

(a) For fiscal deleted text begin year 2007deleted text end new text begin years
2013
new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district's alternative teacher compensation equalization aid
equals the district's alternative teacher compensation revenue minus the district's basic
alternative teacher compensation aid minus the district's alternative teacher compensation
levy. If a district does not levy the entire amount permitted, the alternative teacher
compensation equalization aid must be reduced in proportion to the actual amount levied.

(b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.

Sec. 14.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin General education rate. new text end

new text begin The commissioner must establish the general
education rate by July 1 of each year for levies payable in the following year. The general
education rate must be a rate, rounded up to the nearest hundredth of a percent, that, when
applied to the adjusted net tax capacity for all districts, raises the amount specified in this
subdivision. The general education rate must be the rate that raises $100,000,000 for fiscal
year 2015 and later years. The general education rate may not be changed due to changes or
corrections made to a district's adjusted net tax capacity after the rate has been established.
new text end

Sec. 15.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3b. new text end

new text begin General education levy. new text end

new text begin To obtain general education revenue, a district
may levy an amount not to exceed the general education rate times the adjusted net tax
capacity of the district for the preceding year. If the amount of the general education
levy would exceed the general education revenue, the general education levy must be
determined according to subdivision 3c.
new text end

Sec. 16.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3c. new text end

new text begin General education levy; districts off the formula. new text end

new text begin (a) If the amount of
the general education levy for a district exceeds the district's general education revenue,
the amount of the general education levy must be limited to the following:
new text end

new text begin (1) the district's general education revenue; minus
new text end

new text begin (2) payments made for the same school year according to section 126C.21,
subdivision 3.
new text end

new text begin (b) A levy made according to this subdivision shall also be construed to be the levy
made according to subdivision 3b.
new text end

Sec. 17.

Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:


Subd. 4.

General education aid.

new text begin (a) new text end For fiscal years deleted text begin 2007deleted text end new text begin 2013new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end ,
a district's general education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) alternative teacher compensation aid under section 126C.10, subdivision 36;

(5) transition aid under section 126C.10, subdivision 33;

(6) shared time aid under section 126C.01, subdivision 7;

(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and

(8) online learning aid according to section 124D.096.

new text begin (b) For fiscal year 2015 and later, a district's general education aid is the sum of
the following amounts:
new text end

new text begin (1) the product of:
new text end

new text begin (i) the difference between the general education revenue and the general education
levy; times
new text end

new text begin (ii) the ratio of the actual amount levied to the permitted levy;
new text end

new text begin (2) shared time aid according to section 126C.01, subdivision 7;
new text end

new text begin (3) referendum aid according to section 126C.17; and
new text end

new text begin (4) online learning aid according to section 124D.096.
new text end

Sec. 18. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin General education. new text end

new text begin For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:
new text end

new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2014
new text end
new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2015
new text end

new text begin Subd. 3. new text end

new text begin Alternative compensation. new text end

new text begin For alternative teacher compensation aid
under Minnesota Statutes, section 122A.415, subdivision 4:
new text end

new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2015
new text end

new text begin The 2015 appropriation includes $0 for 2014 and $....... for 2015.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33, 34,
35, and 36,
new text end new text begin are repealed for revenue for fiscal year 2015.
new text end