HF 2417

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:04am

A bill for an act
relating to education finance; modifying the state aid payment schedule
for charter schools; amending Minnesota Statutes 2008, section 127A.45,
subdivisions 3, 4.

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

Section 1.

Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to
read:

Subd. 3.

Payment dates and percentages.

(a) deleted text begin For fiscal year 2004 and later, deleted text end The
commissioner shall pay to a district on the dates indicated an amount computed as follows:
the cumulative amount guaranteed minus the sum of deleted text begin (a) deleted text end new text begin (1) new text end the district's other district
receipts through the current payment, and deleted text begin (b) deleted text end new text begin (2) new text end the aid and credit payments through the
immediately preceding payment. For purposes of this computation, the payment dates and
the cumulative disbursement percentages are as follows:

	Payment date	Percentage
Payment 1	July 15:	5.5
Payment 2	July 30:	8.0
Payment 3	August 15:	17.5
Payment 4	August 30:	20.0
Payment 5	September 15:	22.5
Payment 6	September 30:	25.0
Payment 7	October 15:	27.0
Payment 8	October 30:	30.0
Payment 9	November 15:	32.5
Payment 10	November 30:	36.5
Payment 11	December 15:	42.0
Payment 12	December 30:	45.0
Payment 13	January 15:	50.0
Payment 14	January 30:	54.0
Payment 15	February 15:	58.0
Payment 16	February 28:	63.0
Payment 17	March 15:	68.0
Payment 18	March 30:	74.0
Payment 19	April 15:	78.0
Payment 20	April 30:	85.0
Payment 21	May 15:	90.0
Payment 22	May 30:	95.0
Payment 23	June 20:	100.0

(b) deleted text begin In addition to the amounts paid under paragraph (a), for fiscal year 2004, the
commissioner shall pay to a district on the dates indicated an amount computed as follows:
deleted text end

deleted text begin Payment 3 deleted text end	deleted text begin August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section deleted text end
deleted text begin Payment 4 deleted text end	deleted text begin August 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits deleted text end
deleted text begin Payment 6 deleted text end	deleted text begin September 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits deleted text end
deleted text begin Payment 8 deleted text end	deleted text begin October 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits deleted text end

deleted text begin (c) deleted text end In addition to the amounts paid under paragraph (a), for deleted text begin fiscal year 2005 and later deleted text end new text begin
districts other than charter schools new text end , the commissioner shall pay to a district on the dates
indicated an amount computed as follows:

Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
Payment 4	August 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
Payment 6	September 30: 40 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
Payment 8	October 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits

new text begin (c) In addition to the amounts paid under paragraph (a), for charter schools, the
commissioner shall pay to a charter on the dates indicated an amount computed as follows:
new text end

new text begin Payment 1 new text end	new text begin July 15: 100 percent of the final adjustment for the prior fiscal year for all aid entitlements including the state paid property tax credits established in section 273.1392 new text end
new text begin Payment 8 new text end	new text begin October 30: The amount of any adjustment, positive or negative, necessary to conform the July 15th payment to the final aid entitlement amount for the previous year new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2008, section 127A.45, subdivision 4, is amended to read:

Subd. 4.

Appeal.

(a) The commissioner, in consultation with the commissioner of
management and budget, may revise the payment dates and percentages in subdivision 3
for a district if it is determined that:

(1) there is an emergency; or

(2) there are serious cash flow problems in the district that cannot be resolved by
issuing warrants or other forms of indebtedness; deleted text begin or
deleted text end

(3) new text begin the interest rate on the warrants or other forms of indebtedness issued by a
charter school exceed by more than two percentage points the rate commonly paid by
school districts for borrowing under sections 126C.50 to 126C.56 for that year; or
new text end

new text begin (4) new text end the district is facing a serious cash flow problem because of an abatement that
exceeds $100 times the resident pupil units of the district.

(b) The commissioner shall establish a process and criteria for districts to appeal the
payment dates and percentages established in subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end