HF 2180

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

A bill for an act
relating to education finance; increasing the general
education basic formula allowance; increasing funding
for declining enrollment; reinstating a general
education levy; promoting alternative teacher
compensation programs; creating a new revenue source
for deferred maintenance; authorizing funding for
school district telecommunication and Internet access;
providing incentives for school districts delivering
exceptional education services; authorizing state
funding for unfunded federal mandates; appropriating
money; amending Minnesota Statutes 2004, sections
122A.414; 122A.415, subdivisions 1, 3; 123B.59, by
adding subdivisions; 126C.05, subdivisions 5, 6;
126C.10, subdivisions 1, 2, by adding subdivisions;
126C.13, by adding subdivisions; 127A.45, subdivision
11; proposing coding for new law in Minnesota
Statutes, chapter 125B.

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

Section 1.

Minnesota Statutes 2004, section 122A.414, is
amended to read:

122A.414 ALTERNATIVE TEACHER COMPENSATION.

Subdivision 1.

Restructured pay system.

A restructured
teacher compensation system is established under subdivision 2
to provide incentives for teachers to improve their knowledge
and skills and for school districts new text begin and charter schools new text end to
recruit and retain highly qualified teachers, and to support
teachers' roles in improving students' educational achievement.

Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this program, a school district new text begin or charter
school new text end must have an educational improvement plan as described in
section 122A.413 and an alternative teacher professional pay
system as described in paragraph (b).

(b) The alternative teacher professional pay system must:

(1) describe deleted text begin the conditions necessary for deleted text end new text begin how teachers can
achieve new text end career advancement and additional compensation;

(2) new text begin describe how the school district will new text end provide career
advancement options for teachers deleted text begin retaining deleted text end new text begin which allow them to
retain new text end primary roles in student instruction new text begin . These options
shall include positions that provide multiple career paths such
as master and mentor teaching positions to help peers increase
their teaching skills new text end ;

(3) use a professional pay system that replaces the deleted text begin step
deleted text end new text begin lockstep steps new text end and deleted text begin lane deleted text end new text begin lanes new text end salary deleted text begin schedule and is not based
on years of service deleted text end new text begin system and allows school districts and
charter schools to compensate teachers for satisfactory service
and completion of annual performance goals;
new text end

new text begin (4) include performance compensation for teachers in
districts or charter schools based on, at a minimum:
new text end

new text begin (i) student achievement gains and school achievement gains
under section 120B.35, locally selected standardized
assessments, or both; and
new text end

new text begin (ii) results of individual teacher evaluations based on
classroom observations by a locally selected evaluation team new text end ;

deleted text begin (4) encourage teachers' continuous improvement in content
knowledge, pedagogy, and use of best practices deleted text end new text begin (5) provide staff
development for teachers that:
new text end

new text begin (i) utilize best practice research;
new text end

new text begin (ii) are integrated and collaborative;
new text end

new text begin (iii) provide for ongoing site-based and teacher-led
professional growth activities aligned with student needs as
outlined in sections 122A.413 and 122A.601; and
new text end

new text begin (iv) focus on the identified needs of students, which may
include skill development in reading strategies, methods to
align curriculum with learning standards, intervention with
students not meeting proficiency level, and use of state and
local assessment data new text end ; and

deleted text begin (5) deleted text end new text begin (6) new text end implement deleted text begin an objective deleted text end new text begin a teacher performance
new text end evaluation deleted text begin system deleted text end new text begin that is a comprehensive system based on
scientifically based education research and on specific
performance and accountability goals aligned with the
district's, the charter school's, or the site's educational
improvement plan as described in section 122A.413 and the staff
development plan described in section 122A.601. The evaluation
shall include the locally selected evaluation team. The
evaluation of each teacher's performance in the school shall
occur several times during the school year new text end , including classroom
observation deleted text begin , that is aligned with the district's or the site's
educational improvement plan as described in section 122A.413 deleted text end .

Subd. 3.

Report.

Participating districts new text begin , charter
schools, new text end and school sites must report on the implementation and
effectiveness of the alternative teacher compensation plan,
particularly addressing each requirement under subdivision 2 and
make biennial recommendations by January 1 to their school
boards. The school boards shall transmit new text begin a copy of the report
with new text end a summary of the findings and recommendations of their
district new text begin or charter school new text end to the commissioner new text begin of education new text end .

Sec. 2.

Minnesota Statutes 2004, section 122A.415,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin aid deleted text end new text begin revenue new text end amount.

(a) A school district
new text begin or charter school new text end that meets the conditions of section 122A.414
and submits an application approved by the commissioner is
eligible for alternative compensation deleted text begin aid deleted text end new text begin revenue new text end .

new text begin (b) new text end The commissioner must consider only applications
submitted jointly by a school district and the exclusive
representative of the teachers for participation in the
program. The application must contain a formally adopted
collective bargaining agreement, memorandum of understanding, or
other binding agreement that implements an alternative teacher
professional pay system consistent with section 122A.414 new text begin , is in
compliance with the Public Employment Labor Relations Act under
chapter 179A, new text end and includes all teachers in a district deleted text begin , deleted text end new text begin or new text end all
teachers at a school site deleted text begin , or at least 25 percent of the
teachers in a district deleted text end . deleted text begin The commissioner, in approving
applications, may give preference to applications involving
entire districts or sites or to applications that align measures
of teacher performance with student academic achievement and
progress under section 120B.35, subdivision 1.
deleted text end

deleted text begin (b) deleted text end Alternative compensation deleted text begin aid deleted text end new text begin revenue new text end for a qualifying
school district deleted text begin , deleted text end new text begin or new text end site deleted text begin , or portion of a district or school
site is as follows:
deleted text end

deleted text begin (1) for a school district deleted text end in which the school board and the
exclusive representative of the teachers agree to place all
teachers in the district or at the site on the alternative
compensation schedule, alternative compensation deleted text begin aid deleted text end new text begin revenue
new text end equals deleted text begin $150 deleted text end new text begin $225 new text end times the district's or the site's number of
pupils enrolled on October 1 of the previous fiscal year deleted text begin ; or
deleted text end

deleted text begin (2) for a district in which the school board and the
exclusive representative of the teachers agree that at least 25
percent of the district's licensed teachers will be paid on the
alternative compensation schedule, alternative compensation aid
equals $150 times the percentage of participating teachers times
the district's number of pupils enrolled as of October 1 of the
previous fiscal year deleted text end .

new text begin (c) Charter school applications must be submitted by the
chair of the charter school board of directors and must
contain: (1) an agreement that implements an alternative
teacher compensation program consistent with section 122A.414;
(2) a resolution by the charter school board of directors
adopting the agreement; and (3) documentation of a vote of the
teachers showing that at least 70 percent of the teachers
supporting the agreement that implements the alternative teacher
compensation program.
new text end

new text begin Alternative compensation revenue for a qualifying charter
school must be calculated under section 126C.10, subdivision 34,
paragraph (b).
new text end

Sec. 3.

Minnesota Statutes 2004, section 122A.415,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin aid deleted text end new text begin revenue new text end timing.

(a) Districts deleted text begin or deleted text end new text begin , school
new text end sites new text begin , or charter schools new text end with approved applications must
receive alternative compensation deleted text begin aid deleted text end new text begin revenue new text end for each school
year that the district deleted text begin or deleted text end new text begin , school new text end site new text begin , or charter school,
new text end participates in the program as described in this subdivision.
Districts deleted text begin or deleted text end new text begin , school new text end sites new text begin , or charter schools new text end with applications
deleted text begin received deleted text end new text begin approved new text end by the commissioner deleted text begin before June 1 of the first
year of a two-year contract deleted text end shall receive alternative
compensation deleted text begin aid deleted text end new text begin revenue new text end for deleted text begin both deleted text end new text begin the school new text end years deleted text begin of the
contract. Districts or sites with applications received by the
commissioner after June 1 of the first year of a two-year
contract shall receive alternative compensation aid only for the
second year of the contract deleted text end new text begin in which the alternative teacher
compensation program is implemented for the full school
year new text end . new text begin For fiscal year 2007 and later, new text end a qualifying district deleted text begin or deleted text end new text begin ,
school new text end site new text begin , or charter school new text end that received alternative
compensation deleted text begin aid deleted text end new text begin revenue new text end for the previous fiscal year must
receive at least an amount new text begin of alternative compensation revenue
new text end equal to the lesser of the amount it received for the previous
fiscal year or deleted text begin its proportionate share of the previous year's
appropriation deleted text end new text begin the amount it qualifies for under subdivision 1
for the current fiscal year new text end if the district new text begin , charter school, new text end or
site submits a timely application and the commissioner
determines that the district new text begin , charter school, new text end or site continues
to implement an alternative teacher professional pay system,
consistent with its application under this section. deleted text begin The
commissioner must approve initial applications for school
districts qualifying under subdivision 1, paragraph (b), clause
(1), by January 15 of each year. If any money remains, the
commissioner must approve aid amounts for school districts
qualifying under subdivision 1, paragraph (b), clause (2), by
February 15 of each year.
deleted text end

(b) The commissioner shall select applicants that qualify
for this program, notify school districts new text begin , charter schools, new text end and
school sites about the program, develop and disseminate
application materials, and carry out other activities needed to
implement this section.

Sec. 4.

Minnesota Statutes 2004, section 123B.59, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Deferred maintenance revenue. new text end

new text begin A school district
that does not qualify for revenue under subdivision 1 is
eligible for deferred maintenance revenue equal to the product
of: (1) the district's adjusted marginal cost pupil units for
that year; (2) $50; and (3) the district's building maintenance
index as calculated under section 126C.10, subdivision 16.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 5.

Minnesota Statutes 2004, section 123B.59, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Deferred maintenance levy. new text end

new text begin To receive deferred
maintenance revenue under subdivision 9, a school district must
levy an amount equal to the revenue under subdivision 9
multiplied by the lesser of one or the ratio of the quotient
derived by dividing the adjusted net tax capacity of the
district for the year preceding the year the levy is certified
by the adjusted marginal cost pupil units in the district for
the year to which the levy is attributable, to $3,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 6.

Minnesota Statutes 2004, section 123B.59, is
amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Deferred maintenance aid. new text end

new text begin A school district's
deferred maintenance aid is equal to the difference between its
deferred maintenance revenue and its deferred maintenance levy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 7.

new text begin [125B.26] TELECOMMUNICATIONS AND INTERNET ACCESS
EQUITY AID.
new text end

new text begin Subdivision 1. new text end

new text begin Costs to be submitted. new text end

new text begin (a) A district or
charter school shall submit its actual telecommunications and
Internet access costs for the previous fiscal year, adjusted for
any e-rate revenue received, to the department by August 15 of
each year as prescribed by the commissioner. Costs eligible for
reimbursement under this program are limited to the following:
new text end

new text begin (1) ongoing or recurring telecommunications and Internet
access costs associated with Internet access, data lines, and
video links providing:
new text end

new text begin (i) the equivalent of one data line, video link, or
integrated data and video link that relies on a transport medium
that operates at a speed of 1.544 megabytes per second (T1) for
each elementary school, middle school, or high school under
section 120A.05, subdivisions 9, 11, and 13, including the
recurring telecommunications line lease costs and ongoing
Internet access service fees; or
new text end

new text begin (ii) the equivalent of one data line or video circuit or
integrated data and video link that relies on a transport medium
that operates at a minimum speed of 1.544 megabytes per second
(T1) for each district, including recurring telecommunications
line lease costs and ongoing Internet access service fees;
new text end

new text begin (2) recurring costs of contractual or vendor-provided
maintenance on the school district's wide area network to the
point of presence at the school building up to the router,
codec, or other service delivery equipment located at the point
of presence termination at the school or school district;
new text end

new text begin (3) recurring costs of cooperative, shared arrangements for
regional delivery of telecommunications and Internet access
between school districts, postsecondary institutions, and public
libraries including network gateways, peering points, regional
network infrastructure, Internet2 access, and network support,
maintenance, and coordination; and
new text end

new text begin (4) service provider installation fees for installation of
new telecommunications lines or increased bandwidth.
new text end

new text begin (b) Costs not eligible for reimbursement under this program
include:
new text end

new text begin (1) recurring costs of school district staff providing
network infrastructure support;
new text end

new text begin (2) recurring costs associated with voice and standard
telephone service;
new text end

new text begin (3) costs associated with purchase of network hardware,
telephones, computers, or other peripheral equipment needed to
deliver telecommunications access to the school or school
district;
new text end

new text begin (4) costs associated with laying fiber for
telecommunications access;
new text end

new text begin (5) costs associated with wiring school or school district
buildings;
new text end

new text begin (6) costs associated with purchase and installation of
Internet filtering; and
new text end

new text begin (7) costs associated with digital content, including online
learning or distance learning programming, and information
databases.
new text end

new text begin Subd. 2. new text end

new text begin E-rates. new text end

new text begin To be eligible for aid under this
section, a district or charter school is required to file an
e-rate application either separately or through its
telecommunications access cluster and to have a current
technology plan on file with the Department of Education.
Discounts received on telecommunications expenditures shall be
reflected in the costs submitted to the department for aid under
this section.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement criteria. new text end

new text begin The commissioner shall
develop criteria for approving costs submitted by school
districts and charter schools under subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin District aid. new text end

new text begin For fiscal year 2006 and later, a
district or charter school's Internet access equity aid equals
90 percent of the district or charter school's approved cost for
the previous fiscal year according to subdivision 1 exceeding
$15 times the district's adjusted marginal cost pupil units for
the previous fiscal year.
new text end

new text begin Subd. 5. new text end

new text begin Telecommunications and internet access services
for nonpublic schools. new text end

new text begin (a) Districts shall provide each year
upon formal request by or on behalf of a nonpublic school, not
including home schools located in that district or area, ongoing
or recurring telecommunications access services to the nonpublic
school either through existing district providers or through
separate providers.
new text end

new text begin (b) The amount of district aid for telecommunications
access services for each nonpublic school under this subdivision
equals the lesser of:
new text end

new text begin (1) 90 percent of the nonpublic school's approved cost for
the previous fiscal year according to subdivision 1 exceeding
$10 times the number of weighted pupils enrolled at the
nonpublic school as of October 1 of the previous school year; or
new text end

new text begin (2) the product of the district's aid per adjusted marginal
cost pupil unit according to subdivision 4 times the number of
weighted pupils enrolled at the nonpublic school as of October 1
of the previous school year.
new text end

new text begin (c) For purposes of this subdivision, nonpublic school
pupils shall be weighted by grade level using the weighing
factors defined in section 126C.05, subdivision 1.
new text end

new text begin (d) Each year, a district providing services under
paragraph (a) may claim up to five percent of the aid determined
in paragraph (b) for costs of administering this subdivision.
No district may expend an amount for these telecommunications
access services which exceeds the amount allocated under this
subdivision. The nonpublic school is responsible for the
Internet access costs not covered by this section.
new text end

new text begin (e) At the request of a nonpublic school, districts may
allocate the amount determined in paragraph (b) directly to the
nonpublic school to pay for or offset the nonpublic school's
costs for telecommunications access services; however, the
amount allocated directly to the nonpublic school may not exceed
the actual amount of the school's ongoing or recurring
telecommunications access costs.
new text end

new text begin Subd. 6. new text end

new text begin Severability. new text end

new text begin If any portion of this section is
found by a court to be unconstitutional, the remaining portions
of the section shall remain in effect.
new text end

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. 8.

Minnesota Statutes 2004, section 126C.05,
subdivision 5, is amended to read:

Subd. 5.

Adjusted pupil units.

(a) Adjusted pupil units
for a district or charter school means the sum of:

(1) the number of pupil units served, according to
subdivision 7, plus

(2) pupil units according to subdivision 1 for whom the
district or charter school pays tuition under section 123A.18,
123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or
125A.65, minus

(3) pupil units according to subdivision 1 for whom the
district or charter school receives tuition under section
123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or
125A.65.

(b) Adjusted marginal cost pupil units means the greater of:

(1) the sum of deleted text begin .77 deleted text end new text begin .50 new text end times the pupil units defined in
paragraph (a) for the current school year and deleted text begin .23 deleted text end new text begin .50 new text end times the
pupil units defined in paragraph (a) for the previous school
year; or

(2) the number of adjusted pupil units defined in paragraph
(a) for the current school year.

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. 9.

Minnesota Statutes 2004, section 126C.05,
subdivision 6, is amended to read:

Subd. 6.

Resident pupil units.

(a) Resident pupil units
for a district means the number of pupil units according to
subdivision 1 residing in the district.

(b) Resident marginal cost pupil units means the greater of:

(1) the sum of deleted text begin .77 deleted text end new text begin .50 new text end times the pupil units defined in
paragraph (a) for the current year and deleted text begin .23 deleted text end new text begin .50 new text end times the pupil
units defined in paragraph (a) for the previous school year; or

(2) the number of resident pupil units defined in paragraph
(a) for the current school year.

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. 10.

Minnesota Statutes 2004, section 126C.10,
subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

deleted text begin (a) For fiscal
year 2003, the general education revenue for each district
equals the sum of the district's basic revenue, basic skills
revenue, training and experience revenue, secondary sparsity
revenue, elementary sparsity revenue, transportation sparsity
revenue, total operating capital revenue, and equity revenue.
deleted text end

deleted text begin (b) For fiscal year 2004 and later, deleted text end The general education
revenue for each district equals the sum of the district's basic
revenue, extended time revenue, new text begin unfunded federal mandates
revenue, education excellence revenue, new text end basic skills revenue,
training and experience revenue, secondary sparsity revenue,
elementary sparsity revenue, transportation sparsity revenue,
total operating capital revenue, equity revenue, new text begin alternative
compensation revenue, new text end and transition revenue.

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. 11.

Minnesota Statutes 2004, section 126C.10,
subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

The basic revenue for each
district equals the formula allowance times the adjusted
marginal cost pupil units for the school year. deleted text begin The formula
allowance for fiscal year 2001 is $3,964. The formula allowance
for fiscal year 2002 is $4,068. deleted text end The formula allowance for
fiscal year 2003 new text begin through fiscal year 2005 is $4,601. The
formula allowance for fiscal year 2006 is $4,765. The formula
allowance for fiscal year 2007 new text end and subsequent years is
deleted text begin $4,601 deleted text end new text begin $4,958 new text end .

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. 12.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Unfunded federal mandates revenue. new text end

new text begin The
unfunded federal mandates revenue equals $50 times the
district's adjusted marginal cost pupil units for that year. A
school district must spend its unfunded federal mandates revenue
only on federally mandated programs, including special education
services and activities required under the federal No Child Left
Behind Act.
new text end

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. 13.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 2c. new text end

new text begin Education excellence revenue. new text end

new text begin (a) Beginning in
fiscal year 2007 a school district is eligible for education
excellence revenue based on the school district's performance on
the following six standards:
new text end

new text begin (1) graduation rate;
new text end

new text begin (2) attendance rate;
new text end

new text begin (3) achievement of educational standards;
new text end

new text begin (4) adequate yearly progress;
new text end

new text begin (5) school safety; and
new text end

new text begin (6) publication of a school report card.
new text end

new text begin The commissioner of education must establish minimum
qualifying benchmarks for each of the six standards listed in
this paragraph. A school district that meets or exceeds the
benchmarks established by the commissioner for that school
district is eligible for educational excellence revenue for each
standard that is met.
new text end

new text begin (b) Total revenue in the education excellence account
equals $10,000,000.
new text end

new text begin (c) Each year, the commissioner shall determine the
education excellence revenue allowance. The allowance is equal
to the total amount of revenue deposited in the account under
paragraph (b) divided by the number adjusted marginal cost pupil
units in each school district multiplied by the number of
standards under paragraph (a) that have been met or exceeded for
the school district for the previous school year.
new text end

new text begin (d) The revenue in the education excellence account is
annually appropriated for the purpose of paying educational
excellence revenue to school districts.
new text end

new text begin (e) A school district's education excellence allowance
equals the product of the education excellence allowance, the
district's adjusted marginal cost pupil units for that year, and
the number of standards that have been met or exceeded for the
previous school year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 14.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 34. new text end

new text begin Basic alternative compensation aid. new text end

new text begin (a) For
fiscal year 2006, the basic alternative compensation aid for a
district or charter school with an alternative compensation plan
approved under section 122A.415 equals the alternative
compensation revenue according to section 122A.415, subdivision
1.
new text end

new text begin (b) For fiscal year 2007 and later, the basic alternative
compensation aid for a district with an alternative compensation
plan approved under section 122A.415 equals 68.9 percent of the
alternative compensation revenue according to section 122A.415,
subdivision 1. The basic alternative compensation aid for a
charter school with an alternative compensation plan approved
under section 122A.415 equals the school's alternative
compensation revenue according to section 122A.415, subdivision
1, times the ratio of the sum of the alternative compensation
aid and alternative compensation levy for all participating
school districts to the maximum alternative compensation revenue
for those districts according to section 122A.415, subdivision 1.
new text end

new text begin (c) Notwithstanding paragraphs (a) and (b) and section
122A.415, subdivision 1, the state total basic alternative
compensation aid entitlement must not exceed $6,700,000 for
fiscal year 2006 and $20,700,000 for fiscal year 2007 and
later. The commissioner must limit the amount of alternative
compensation revenue approved under section 122A.415, so as not
to exceed these limits.
new text end

Sec. 15.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 35. new text end

new text begin Alternative compensation levy. new text end

new text begin For fiscal year
2007 and later, the alternative compensation levy for a district
receiving basic alternative compensation aid equals the product
of (1) the difference between the district's alternative
compensation revenue and the district's basic alternative
compensation aid times (2) the lesser of one or the ratio of the
district's adjusted net tax capacity per adjusted pupil unit to
$6,900.
new text end

Sec. 16.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 36. new text end

new text begin Alternative compensation aid. new text end

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

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

Sec. 17.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Statewide general education levy. new text end

new text begin The general
education levy is $225,000,000 for taxes payable in 2006 and
subsequent years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 18.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin General education tax rate. new text end

new text begin The commissioner
must establish the general education tax rate by July 1 of each
year for taxes payable in the following year. The general
education tax rate must be a rate, rounded to the nearest
hundredth of a percent, that, when applied to the adjusted net
tax capacity for all districts, raises the amount specified in
subdivision 6. The general education tax rate may not be
changed due to changes or corrections made to a district's
adjusted net tax capacity after the tax rate has been
established.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 19.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Levy for general education. new text end

new text begin To obtain general
education revenue, a district must levy an amount not to exceed
the general education tax rate times the adjusted net tax
capacity of the district for the preceding year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 20.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin General education aid. new text end

new text begin A district's general
education aid under subdivision 4 is reduced by the amount of
the district's levy under subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 21.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Adjusted net tax capacity. new text end

new text begin For the purposes of
this section, adjusted net tax capacity means the adjusted net
tax capacity as otherwise determined under section 127A.48, but
excluding all class 2 property under section 273.13, subdivision
23, except that portion of class 2a property consisting of the
house, garage, and surrounding one acre of land.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 22.

Minnesota Statutes 2004, section 127A.45,
subdivision 11, is amended to read:

Subd. 11.

Payment percentage for reimbursement aids.

One
hundred percent of the aid for the previous fiscal year must be
paid in the current year for the following aids:
new text begin telecommunications and Internet access equity aid according to
section 125B.26; new text end special education special pupil aid according
to section 125A.75, subdivision 3 deleted text begin , deleted text end new text begin ; new text end aid for litigation costs
according to section 125A.75, subdivision 8 deleted text begin , deleted text end new text begin ; new text end aid for
court-placed special education expenses according to section
125A.79, subdivision 4 deleted text begin , deleted text end new text begin ; new text end and aid for special education
out-of-state tuition according to section 125A.79, subdivision 8.

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. 23. 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 Internet access equity aid. new text end

new text begin For
telecommunications and Internet access cost equity aid under
Minnesota Statutes, section 125B.26:
new text end

new text begin $4,500,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $4,500,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin If the appropriation for either fiscal year is
insufficient, the aid for that year shall be prorated among
participating schools and districts so as not to exceed the
total authorized appropriation for that year.
new text end