HF 2547

as introduced - 88th Legislature (2013 - 2014) Posted on 03/03/2014 02:37pm

A bill for an act
relating to education; expanding eligibility for the location equity revenue
program; making technical changes to the calculation of location equity revenue
and referendum revenue; amending Minnesota Statutes 2013 Supplement,
sections 126C.10, subdivision 2e; 126C.17, subdivision 1.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2e,
is amended to read:

Subd. 2e.

Location equity revenue.

(a) deleted text begin For a school district with any of its area
located within the seven-county metropolitan area, deleted text end Location equity revenue new text begin for a school
district new text end equals $424 times the adjusted pupil units of the district for that school year.

(b) deleted text begin For all other school districts with more than 2,000 pupils in adjusted average
daily membership for the fiscal year ending in the year before the levy is certified, location
equity revenue equals $212 times the adjusted pupil units of the district for that year.
deleted text end

deleted text begin (c) deleted text end A district's location equity levy equals its location equity revenue times the lesser
of one or the ratio of its referendum market value per resident pupil unit to $510,000. The
location equity revenue levy must be spread on referendum market value. new text begin A district
may levy less than the permitted amount.
new text end

deleted text begin (d) deleted text end new text begin (c) new text end A district's location equity aid equals its location equity revenue less its
location equity levy, times the ratio of the actual amount levied to the permitted levy.

deleted text begin (e) A school district may elect not to participate in the location equity revenue
program by a board vote taken prior to September 1 of the fiscal year before the fiscal year
for which the decision not to participate becomes effective. The board resolution must
state which fiscal years the district will not participate. A copy of the board resolution
to not participate must be submitted to the commissioner.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2016 and
later.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 1, is
amended to read:

Subdivision 1.

Referendum allowance.

(a) A district's initial referendum allowance
deleted text begin for fiscal year 2015 deleted text end equals the result of the following calculations:

(1) multiply the referendum allowance the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
elections held before July 1, 2013, by the resident marginal cost pupil units the district
would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;

(2) add to the result of clause (1) the adjustment the district would have received
under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
(c), based on elections held before July 1, 2013;

(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
year 2015; deleted text begin and
deleted text end

new text begin (4) add to the result of clause (3) any additional referendum allowance per adjusted
pupil unit authorized by elections held between July 1, 2013, and December 31, 2013;
new text end

new text begin (5) add to the result in clause (4) any additional referendum allowance resulting from
inflation adjustments approved by the voters prior to January 1, 2014;
new text end

new text begin (6) subtract from the result of clause (5), the sum of a district's actual location
equity levy and location equity aid under section 126C.10, subdivision 2e, divided by the
adjusted pupil units of the district for that school year; and
new text end

deleted text begin (4) deleted text end new text begin (7) new text end if the result of clause deleted text begin (3) deleted text end new text begin (6) new text end is less than zero, set the allowance to zero.

(b) A district's referendum allowance equals the sum of the district's initial
referendum allowance deleted text begin for fiscal year 2015 deleted text end , plus any additional referendum allowance per
adjusted pupil unit authorized after deleted text begin June 30 deleted text end new text begin December 31 new text end , 2013, minus deleted text begin (i) the location
equity revenue subtraction, and (ii) deleted text end any allowances expiring in fiscal year 2016 or later,
provided that the allowance may not be less than zero. For a district with more than one
referendum allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17,
the allowance calculated under paragraph (a) new text begin , clause (3), new text end must be divided into components
such that the same percentage of the district's allowance expires at the same time as the old
allowances would have expired under Minnesota Statutes 2012, section 126C.17. new text begin For a
district with more than one allowance for fiscal year 2015 that expires in the same year, the
reduction under paragraph (a), clause (6), to offset location equity revenue shall be made
first from any allowances that do not have an inflation adjustment approved by the voters.
new text end

deleted text begin (c) For purposes of this subdivision, a district's location equity revenue subtraction
equals $424 for a district receiving location equity revenue under section 126C.10,
subdivision 2d, paragraph (a), $212 for a district receiving location equity revenue under
section 126C.10, subdivision 2d, paragraph (b), and zero for all other school districts.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2016
and later.
new text end