Minnesota Legislature
HF 2508
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:31pm
Current Version - as introduced
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7.1
A bill for an act
relating to education finance; statutorily establishing the state aid payment shift
and the property tax recognition shift; clarifying the repayment of the shift;
amending Minnesota Statutes 2008, sections 123B.75, subdivision 5; 127A.441;
127A.45, subdivisions 2, 3, 13, by adding a subdivision; Minnesota Statutes
2009 Supplement, section 16A.152, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2009 Supplement, section 16A.152, subdivision 2,
is amended to read:
Subd. 2.
Additional revenues; priority.
(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;
(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;
(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;
(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, deleted text begin paragraph (b), and Laws 2003, First Special Session chapter 9,
article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
20,deleted text end by the same amount; and
(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5.
(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.
(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:
Subd. 5.
Levy recognition.
(a) "School district tax settlement revenue" means the
current, delinquent, and manufactured home property tax receipts collected by the county
and distributed to the school district.
(b) deleted text begin For fiscal year 2004 and later years, in June of each yeardeleted text end new text begin In June of 2010new text end , the
school district must recognize as revenue, in the fund for which the levy was made, the
lesser of:
(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
(2) the sum of:
(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and
(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
6.
new text begin
(c) For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:
new text end
new text begin
(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
new text end
new text begin
(2) the sum of:
new text end
new text begin
(i) the greater of 49.1 percent of the referendum levy certified according to section
126C.17, in the prior calendar year or 31 percent of the referendum levy certified
according to section 126C.17, in calendar year 2000; plus
new text end
new text begin
(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
6; plus
new text end
new text begin
(iii) 49.1 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to clause (ii).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2008, section 127A.441, is amended to read:
127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b)new text begin or (c)new text end , minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph (b)new text begin or (c)new text end . For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
be adjusted pursuant to this section. The school district shall be notified of the amount of
the adjustment made to each payment pursuant to this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) deleted text begin The termdeleted text end "Other district receipts" means payments by
county treasurers pursuant to section 276.10, apportionments from the school endowment
fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
section 127A.34, subdivision 2, and payments to school districts by the commissioner of
revenue pursuant to chapter 298.
(b) deleted text begin The termdeleted text end "Cumulative amount guaranteed" means the product of
(1) the cumulative disbursement percentage shown in subdivision 3; times
(2) the sum of
(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus
(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
(iii) the other district receipts.
(c) deleted text begin The termdeleted text end "Payment date" means the date on which state payments to districts
are made by the electronic funds transfer method. If a payment date falls on a Saturday,
a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
immediately preceding business day. The commissioner may make payments on dates
other than those listed in subdivision 3, but only for portions of payments from any
preceding payment dates which could not be processed by the electronic funds transfer
method due to documented extenuating circumstances.
(d) The current year aid payment percentage equals deleted text begin 90deleted text end new text begin 73new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal years 2010
and later.
new text end
Sec. 5.
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 (a) the district's other
district receipts through the current payment, and (b) 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 |
deleted text begin
(b) 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 273.1392 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 new text begin (b) new text end In addition to the amounts paid under paragraph (a), deleted text begin for fiscal year 2005 and
later,deleted 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 EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision
to read:
new text begin Subd. 7b. new text end
new text begin Advance final payment. new text end
new text begin
(a) Notwithstanding subdivisions 3 and 7,
a school district or charter school exceeding its expenditure limitations under section
123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment
for the current fiscal year on June 20, if requested by the district or charter school. The
amount paid under this subdivision must not exceed the lesser of:
new text end
new text begin
(1) the difference between 90 percent and the current year payment percentage in
subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or
charter school's general education aid plus the aid adjustment in section 127A.50 for
the current fiscal year; or
new text end
new text begin
(2) the amount by which the district's or charter school's net negative unreserved
general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
district or charter school's expenditures for that fiscal year.
new text end
new text begin
(b) The state total advance final payment under this subdivision for any year must
not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final
payment for each eligible district must be reduced proportionately.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal years 2010
and later.
new text end
Sec. 7.
Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:
Subd. 13.
Aid payment percentage.
Except as provided in subdivisions 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. deleted text begin For the purposes of this subdivision, a district's estimated
entitlement for special education excess cost aid under section 125A.79 for fiscal year
2005 equals 70 percent of the district's entitlement for the second prior fiscal year.deleted text end For the
purposes of this subdivision, a district's estimated entitlement for special education excess
cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
district's entitlement for the current fiscal year. The final adjustment payment, according
to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the entitlement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end