HF 2610

Introduction - 82nd Legislature (2001 - 2002)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to education finance; authorizing a locally 
  1.3             determined inflationary increase in the basic formula 
  1.4             allowance in years when the state responsibility is 
  1.5             not met; reducing inequities among school district 
  1.6             revenue sources; expanding the alternative facilities 
  1.7             program; restoring training and experience revenue; 
  1.8             modifying equity revenue; continuing authority for a 
  1.9             health benefits levy; creating additional funding for 
  1.10            certain community center programs; amending Minnesota 
  1.11            Statutes 2000, sections 124D.20, by adding a 
  1.12            subdivision; 126C.05, subdivision 3; 126C.11; 
  1.13            Minnesota Statutes 2001 Supplement, sections 123B.59, 
  1.14            subdivision 1; 126C.10, subdivision 24; 126C.17, 
  1.15            subdivision 8; 126C.41, subdivision 2; 126C.455; 
  1.16            127A.51. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.19  123B.59, subdivision 1, is amended to read: 
  1.20     Subdivision 1.  [TO QUALIFY.] An independent or special 
  1.21  school district qualifies to participate in the alternative 
  1.22  facilities bonding and levy program if the district has: 
  1.23     (1) more than 66 students per grade; 
  1.24     (2) over 1,850,000 square feet of space and the average age 
  1.25  of building space is 15 years or older or over 1,500,000 square 
  1.26  feet and the average age of building space is 35 years or older; 
  1.27     (3) insufficient funds from projected health and safety 
  1.28  revenue and capital facilities revenue to meet the requirements 
  1.29  for deferred maintenance, to make accessibility improvements, or 
  1.30  to make fire, safety, or health repairs; and 
  1.31     (4) a ten-year facility plan approved by the commissioner 
  2.1   according to subdivision 2. 
  2.2      [EFFECTIVE DATE.] This section is effective for revenue for 
  2.3   fiscal years 2003 and later.  
  2.4      Sec. 2.  Minnesota Statutes 2000, section 124D.20, is 
  2.5   amended by adding a subdivision to read: 
  2.6      Subd. 7a.  [COMMUNITY CENTER LEVY.] The community center 
  2.7   levy is available to a school district that jointly operates a 
  2.8   community facility with a city or town.  The levy equals $3 
  2.9   times the greater of 1,335 or the population of the school 
  2.10  district.  
  2.11     [EFFECTIVE DATE.] This section is effective for taxes 
  2.12  payable in 2003.  
  2.13     Sec. 3.  Minnesota Statutes 2000, section 126C.05, 
  2.14  subdivision 3, is amended to read: 
  2.15     Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  2.16  revenue pupil units for fiscal year 1998 and thereafter must be 
  2.17  computed according to this subdivision.  
  2.18     (a) The compensation revenue concentration percentage for 
  2.19  each building in a district equals the product of 100 times the 
  2.20  ratio of:  
  2.21     (1) the sum of the number of pupils enrolled in the 
  2.22  building eligible to receive free lunch plus one-half of the 
  2.23  number of pupils enrolled in the building eligible to receive 
  2.24  reduced priced lunch on October 1 of the previous fiscal year; 
  2.25  to 
  2.26     (2) the number of pupils enrolled in the building on 
  2.27  October 1 of the previous fiscal year. 
  2.28     (b) The compensation revenue pupil weighting factor for a 
  2.29  building equals the lesser of one or the quotient obtained by 
  2.30  dividing the building's compensation revenue concentration 
  2.31  percentage by 80.0.  
  2.32     (c) The compensation revenue pupil units for a building 
  2.33  equals the product of:  
  2.34     (1) the sum of the number of pupils enrolled in the 
  2.35  building eligible to receive free lunch and one-half of the 
  2.36  pupils eligible to receive reduced priced lunch on October 1 of 
  3.1   the previous fiscal year; times 
  3.2      (2) the compensation revenue pupil weighting factor for the 
  3.3   building; times 
  3.4      (3) .60. 
  3.5      (d) Notwithstanding paragraphs (a) to (c), for charter 
  3.6   schools and contracted alternative programs in the first year of 
  3.7   operation, compensation revenue pupil units shall be computed 
  3.8   using data for the current fiscal year.  If the charter school 
  3.9   or contracted alternative program begins operation after October 
  3.10  1, compensatory revenue pupil units shall be computed based on 
  3.11  pupils enrolled on an alternate date determined by the 
  3.12  commissioner, and the compensation revenue pupil units shall be 
  3.13  prorated based on the ratio of the number of days of student 
  3.14  instruction to 170 days. 
  3.15     (e) The percentages in this subdivision must be based on 
  3.16  the count of individual pupils and not on a building average or 
  3.17  minimum. 
  3.18     [EFFECTIVE DATE.] This section is effective for revenue for 
  3.19  fiscal year 2003.  
  3.20     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  3.21  126C.10, subdivision 24, is amended to read: 
  3.22     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
  3.23  qualifies for equity revenue if: 
  3.24     (1) the school district's adjusted marginal cost pupil unit 
  3.25  amount of basic general education revenue, supplemental revenue, 
  3.26  transition revenue, and excluding equity revenue but including 
  3.27  referendum revenue is less than the value of the school district 
  3.28  at or immediately above the 95th percentile of school districts 
  3.29  in its equity region for those revenue categories; and 
  3.30     (2) the school district's administrative offices are not 
  3.31  located in a city of the first class on July 1, 1999. 
  3.32     (b) Equity revenue for a qualifying district that receives 
  3.33  referendum revenue under section 126C.17, subdivision 4, equals 
  3.34  the product of (1) the district's adjusted marginal cost pupil 
  3.35  units for that year; times (2) the sum of (i) $10, plus (ii) 
  3.36  $55, times the school district's equity index computed under 
  4.1   subdivision 27. 
  4.2      (c) Equity revenue for a qualifying district that does not 
  4.3   receive referendum revenue under section 126C.17, subdivision 4, 
  4.4   equals the product of the district's adjusted marginal cost 
  4.5   pupil units for that year times $10. 
  4.6      [EFFECTIVE DATE.] This section is effective for revenue for 
  4.7   fiscal year 2003.  
  4.8      Sec. 5.  Minnesota Statutes 2000, section 126C.11, is 
  4.9   amended to read: 
  4.10     126C.11 [TRAINING AND EXPERIENCE INDEX.] 
  4.11     The training and experience index for fiscal year 1999 2003 
  4.12  and later must be constructed in the following manner:  
  4.13     (a) The department must construct a matrix that classifies 
  4.14  teachers by the extent of training received in accredited 
  4.15  institutions of higher education and by the years of experience 
  4.16  that districts take into account in determining teacher salaries.
  4.17     (b) The average salary for each cell of the matrix must be 
  4.18  computed as follows using data from the second previous fiscal 
  4.19  year 1997:  
  4.20     (1) For each district, multiply the salary paid to 
  4.21  full-time equivalent teachers with that combination of training 
  4.22  and experience according to the district's teacher salary 
  4.23  schedule by the number of resident pupil units in that district. 
  4.24     (2) Add the amounts computed in clause (1) for all 
  4.25  districts in the state and divide the resulting sum by the total 
  4.26  number of resident pupil units in all districts in the state 
  4.27  that employ teachers.  
  4.28     (c) For each cell in the matrix, compute the ratio of the 
  4.29  average salary in that cell to the average salary for all 
  4.30  teachers in the state during the second previous fiscal year 
  4.31  1997.  
  4.32     (d) The index for each district that employs teachers 
  4.33  equals the sum of:  (i) for teachers employed in that district 
  4.34  during fiscal year 1997 and the current fiscal year, the ratios 
  4.35  for each teacher computed using data for fiscal year 1997; and 
  4.36  (ii) for teachers employed in that district during the current 
  5.1   fiscal year but not during fiscal year 1997, the ratio for 
  5.2   teachers who are in their first year of teaching and who have no 
  5.3   additional credits or degrees above a bachelor's degree divided 
  5.4   by the number of teachers in that district.  The index for a 
  5.5   district that employs no teachers is zero. 
  5.6      [EFFECTIVE DATE.] This section is effective for revenue for 
  5.7   fiscal year 2003.  
  5.8      Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  5.9   126C.17, subdivision 8, is amended to read: 
  5.10     Subd. 8.  [UNEQUALIZED REFERENDUM LEVY.] (a) Each year, a 
  5.11  district may levy an amount equal to the sum of: 
  5.12     (1) the difference between its total referendum revenue 
  5.13  according to subdivision 4 and its referendum equalization 
  5.14  revenue according to subdivision 5.; and 
  5.15     (2) an amount guaranteeing an annual inflationary increase 
  5.16  in the basic revenue under section 126C.10, subdivision 2. 
  5.17     (b) The guaranteed inflationary increase is determined by 
  5.18  taking the greater of: 
  5.19     (1) zero; or 
  5.20     (2) three percent less the actual percentage increase in 
  5.21  the formula between the current fiscal year and the previous 
  5.22  fiscal year, times the adjusted marginal cost pupil units for 
  5.23  that year.  
  5.24     [EFFECTIVE DATE.] This section is effective for taxes 
  5.25  payable in 2003.  
  5.26     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  5.27  126C.41, subdivision 2, is amended to read: 
  5.28     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] A district 
  5.29  may levy an amount up to the amount the district is required by 
  5.30  the collective bargaining agreement in effect on March 30, 1992, 
  5.31  to pay for health insurance or unreimbursed medical expenses for 
  5.32  licensed and nonlicensed employees who have terminated services 
  5.33  in the employing district and withdrawn from active teaching 
  5.34  service or other active service, as applicable, before July 
  5.35  1, 1992 2001.  The total amount of the levy each year may not 
  5.36  exceed $600,000.  
  6.1      [EFFECTIVE DATE.] This section is effective for taxes 
  6.2   payable in 2003.  
  6.3      Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  6.4   126C.455, is amended to read: 
  6.5      126C.455 [SWIMMING POOL LEVY.] 
  6.6      Each year, a school district with its home office located 
  6.7   in a county that has (i) a population density of ten or fewer 
  6.8   persons per square mile according to the 2000 census of 
  6.9   population; (ii) an international border; and (iii) more than 
  6.10  one school district within its boundaries, may levy for the net 
  6.11  operational costs of a swimming pool.  The levy may not exceed 
  6.12  the net actual costs of operation of the swimming pool for the 
  6.13  previous year.  Net actual costs are defined as operating costs 
  6.14  less any operating revenues and less any payments from other 
  6.15  local governmental units. 
  6.16     [EFFECTIVE DATE.] This section is effective for taxes 
  6.17  payable in 2003.  
  6.18     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
  6.19  127A.51, is amended to read: 
  6.20     127A.51 [STATEWIDE AVERAGE REVENUE.] 
  6.21     By October 1 of each year the commissioner must estimate 
  6.22  the statewide average adjusted general revenue per adjusted 
  6.23  marginal cost pupil unit and the disparity in adjusted general 
  6.24  revenue among pupils and districts by computing the ratio of the 
  6.25  95th percentile to the fifth percentile of adjusted general 
  6.26  revenue.  The commissioner must provide that information to all 
  6.27  districts. 
  6.28     If the disparity in adjusted general revenue as measured by 
  6.29  the ratio of the 95th percentile to the fifth percentile 
  6.30  increases in any year, the commissioner shall recommend to the 
  6.31  legislature options for change in the general education formula 
  6.32  that will limit the disparity in adjusted general revenue to no 
  6.33  more than the disparity for the previous school year.  The 
  6.34  commissioner must submit the recommended options to the 
  6.35  education committees of the legislature by January 15. 
  6.36     For purposes of this section and section 126C.10, adjusted 
  7.1   general revenue means: 
  7.2      (1) for fiscal year 2002, the sum of basic revenue under 
  7.3   section 126C.10, subdivision 2; supplemental revenue under 
  7.4   section 126C.10, subdivisions 9 and 12; transition revenue under 
  7.5   section 126C.10, subdivision 20; referendum revenue under 
  7.6   section 126C.17; and equity revenue under section 126C.10, 
  7.7   subdivisions 24a and 24b; and 
  7.8      (2) for fiscal year 2003 and later, the sum of basic 
  7.9   general education revenue under section 126C.10, subdivision 
  7.10  2; and referendum revenue under section 126C.17; and equity 
  7.11  revenue under section 126C.10, subdivisions 24a and 24b. 
  7.12     [EFFECTIVE DATE.] This section is effective for revenue for 
  7.13  fiscal year 2003.