1.1                          A bill for an act 
  1.2             relating to education; discontinuing the referendum 
  1.3             allowance reduction; amending Minnesota Statutes 1994, 
  1.4             sections 124.2725, subdivision 16; 124A.22, 
  1.5             subdivision 8; and 298.28, subdivision 4; repealing 
  1.6             Minnesota Statutes 1994, section 124A.03, subdivision 
  1.7             3b. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 124.2725, 
  1.10  subdivision 16, is amended to read: 
  1.11     Subd. 16.  [EXCLUSION FROM FUND BALANCE.] Revenue received 
  1.12  by a district under this section for each year of cooperation 
  1.13  and the first three years of combination shall be excluded from 
  1.14  the net unreserved operating fund balance, for the purposes 
  1.15  of sections 124A.03, subdivision 3b, paragraph (c), and section 
  1.16  124A.26.  
  1.17     Sec. 2.  Minnesota Statutes 1994, section 124A.22, 
  1.18  subdivision 8, is amended to read: 
  1.19     Subd. 8.  [SUPPLEMENTAL REVENUE.] (a) A district's 
  1.20  supplemental revenue allowance for fiscal year 1994 and later 
  1.21  fiscal years equals the district's supplemental revenue for 
  1.22  fiscal year 1993 divided by the district's 1992-1993 actual 
  1.23  pupil units. 
  1.24     (b) A district's supplemental revenue allowance is reduced 
  1.25  for fiscal year 1995 and later according to subdivision 9. 
  1.26     (c) A district's supplemental revenue equals the 
  2.1   supplemental revenue allowance, if any, times its actual pupil 
  2.2   units for that year.  
  2.3      (d) A school district may cancel its supplemental revenue 
  2.4   by notifying the commissioner of education prior to June 30, 
  2.5   1994.  A school district that is reorganizing under section 
  2.6   122.22, 122.23, or 122.241 may cancel its supplemental revenue 
  2.7   by notifying the commissioner of education prior to July 1 of 
  2.8   the year of the reorganization.  If a district cancels its 
  2.9   supplemental revenue according to this paragraph, its 
  2.10  supplemental revenue allowance for fiscal year 1993 for purposes 
  2.11  of subdivision 9 and section 124A.03, subdivision 3b, equals 
  2.12  zero. 
  2.13     Sec. 3.  Minnesota Statutes 1994, section 298.28, 
  2.14  subdivision 4, is amended to read: 
  2.15     Subd. 4.  [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable 
  2.16  ton plus the increase provided in paragraph (d) must be 
  2.17  allocated to qualifying school districts to be distributed, 
  2.18  based upon the certification of the commissioner of revenue, 
  2.19  under paragraphs (b) and (c). 
  2.20     (b) 5.5 cents per taxable ton must be distributed to the 
  2.21  school districts in which the lands from which taconite was 
  2.22  mined or quarried were located or within which the concentrate 
  2.23  was produced.  The distribution must be based on the 
  2.24  apportionment formula prescribed in subdivision 2. 
  2.25     (c)(i) 22 cents per taxable ton, less any amount 
  2.26  distributed under paragraph (e), shall be distributed to a group 
  2.27  of school districts comprised of those school districts in which 
  2.28  the taconite was mined or quarried or the concentrate produced 
  2.29  or in which there is a qualifying municipality as defined by 
  2.30  section 273.134 in direct proportion to school district indexes 
  2.31  as follows:  for each school district, its pupil units 
  2.32  determined under section 124.17 for the prior school year shall 
  2.33  be multiplied by the ratio of the average adjusted net tax 
  2.34  capacity per pupil unit for school districts receiving aid under 
  2.35  this clause as calculated pursuant to chapter 124A for the 
  2.36  school year ending prior to distribution to the adjusted net tax 
  3.1   capacity per pupil unit of the district.  Each district shall 
  3.2   receive that portion of the distribution which its index bears 
  3.3   to the sum of the indices for all school districts that receive 
  3.4   the distributions.  
  3.5      (ii) Notwithstanding clause (i), each school district that 
  3.6   receives a distribution under sections 298.018; 298.23 to 
  3.7   298.28, exclusive of any amount received under this clause; 
  3.8   298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
  3.9   imposing a tax on severed mineral values that is less than the 
  3.10  amount of its levy reduction under section 124.918, subdivision 
  3.11  8, for the second year prior to the year of the distribution 
  3.12  shall receive a distribution equal to the difference; the amount 
  3.13  necessary to make this payment shall be derived from 
  3.14  proportionate reductions in the initial distribution to other 
  3.15  school districts under clause (i).  
  3.16     (d) Any school district described in paragraph (c) where a 
  3.17  levy increase pursuant to section 124A.03, subdivision 2, is 
  3.18  authorized by referendum, shall receive a distribution according 
  3.19  to the following formula.  In 1994, the amount distributed per 
  3.20  ton shall be equal to the amount per ton distributed in 1991 
  3.21  under this paragraph increased in the same proportion as the 
  3.22  increase between the fourth quarter of 1989 and the fourth 
  3.23  quarter of 1992 in the implicit price deflator as defined in 
  3.24  section 298.24, subdivision 1.  On July 15, 1995, and subsequent 
  3.25  years, the increase over the amount established for the prior 
  3.26  year shall be determined according to the increase in the 
  3.27  implicit price deflator as provided in section 298.24, 
  3.28  subdivision 1.  Each district shall receive the product of: 
  3.29     (i) $175 times the pupil units identified in section 
  3.30  124.17, subdivision 1, enrolled in the second previous year or 
  3.31  the 1983-1984 school year, whichever is greater, less the 
  3.32  product of 1.8 percent times the district's taxable net tax 
  3.33  capacity in the second previous year; times 
  3.34     (ii) the lesser of: 
  3.35     (A) one, or 
  3.36     (B) the ratio of the sum of the amount certified pursuant 
  4.1   to section 124A.03, subdivision 1g, in the previous year, plus 
  4.2   the amount certified pursuant to section 124A.03, subdivision 
  4.3   1i, in the previous year, plus the referendum aid according to 
  4.4   section 124A.03, subdivision 1h, for the current year, plus an 
  4.5   amount equal to the reduction under section 124A.03, subdivision 
  4.6   3b, to the product of 1.8 percent times the district's taxable 
  4.7   net tax capacity in the second previous year. 
  4.8      If the total amount provided by paragraph (d) is 
  4.9   insufficient to make the payments herein required then the 
  4.10  entitlement of $175 per pupil unit shall be reduced uniformly so 
  4.11  as not to exceed the funds available.  Any amounts received by a 
  4.12  qualifying school district in any fiscal year pursuant to 
  4.13  paragraph (d) shall not be applied to reduce general education 
  4.14  aid which the district receives pursuant to section 124A.23 or 
  4.15  the permissible levies of the district.  Any amount remaining 
  4.16  after the payments provided in this paragraph shall be paid to 
  4.17  the commissioner of iron range resources and rehabilitation who 
  4.18  shall deposit the same in the taconite environmental protection 
  4.19  fund and the northeast Minnesota economic protection trust fund 
  4.20  as provided in subdivision 11. 
  4.21     Each district receiving money according to this paragraph 
  4.22  shall reserve $25 times the number of pupil units in the 
  4.23  district.  It may use the money for early childhood programs or 
  4.24  for outcome-based learning programs that enhance the academic 
  4.25  quality of the district's curriculum.  The outcome-based 
  4.26  learning programs must be approved by the commissioner of 
  4.27  education.  
  4.28     (e) There shall be distributed to any school district the 
  4.29  amount which the school district was entitled to receive under 
  4.30  section 298.32 in 1975. 
  4.31     Sec. 4.  [REPEALER.] 
  4.32     Minnesota Statutes 1994, section 124A.03, subdivision 3b, 
  4.33  is repealed. 
  4.34     Sec. 5.  [EFFECTIVE DATE.] 
  4.35     Sections 1 to 4 are effective for revenue for fiscal year 
  4.36  1997 and thereafter.