1.1                          A bill for an act 
  1.2             relating to education finance; creating a new 
  1.3             component of general education aid to promote small 
  1.4             school sustainability; eliminating alternative 
  1.5             facilities aid; dedicating the growth in the statewide 
  1.6             general property tax; appropriating money; amending 
  1.7             Minnesota Statutes 2002, sections 126C.10, subdivision 
  1.8             1, by adding a subdivision; 275.025, subdivision 1; 
  1.9             repealing Minnesota Statutes 2002, section 123B.59, 
  1.10            subdivisions 6, 7.  
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2002, section 126C.10, 
  1.13  subdivision 1, is amended to read: 
  1.14     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
  1.15  year 2002, the general education revenue for each district 
  1.16  equals the sum of the district's basic revenue, basic skills 
  1.17  revenue, training and experience revenue, secondary sparsity 
  1.18  revenue, elementary sparsity revenue, transportation sparsity 
  1.19  revenue, total operating capital revenue, equity revenue, 
  1.20  transition revenue, and supplemental revenue. 
  1.21     (b) For fiscal year 2003 and later, the General education 
  1.22  revenue for each district equals the sum of the district's basic 
  1.23  revenue, basic skills revenue, training and experience revenue, 
  1.24  secondary sparsity revenue, elementary sparsity revenue, 
  1.25  transportation sparsity revenue, small school sustainability 
  1.26  revenue, total operating capital revenue, and equity revenue. 
  1.27     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  1.28  fiscal year 2005.  
  2.1      Sec. 2.  Minnesota Statutes 2002, section 126C.10, is 
  2.2   amended by adding a subdivision to read: 
  2.3      Subd. 18a.  [SMALL SCHOOL SUSTAINABILITY REVENUE.] (a) A 
  2.4   school district's small school sustainability revenue equals 
  2.5   one-half of its transportation sparsity revenue computed under 
  2.6   subdivision 18.  
  2.7      (b) Small school sustainability revenue must be reserved 
  2.8   and may only be used for: 
  2.9      (1) efforts related to attracting and retaining teachers of 
  2.10  quality; 
  2.11     (2) technology improvements, including Internet access, 
  2.12  hardware and software improvements, and interactive television 
  2.13  opportunities; 
  2.14     (3) deferred maintenance and facilities repair; 
  2.15     (4) curriculum enhancements; and 
  2.16     (5) collaborative activities with other school districts.  
  2.17     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.18  fiscal year 2005.  
  2.19     Sec. 3.  Minnesota Statutes 2002, section 275.025, 
  2.20  subdivision 1, is amended to read: 
  2.21     Subdivision 1.  [LEVY AMOUNT.] (a) The state general levy 
  2.22  is levied against commercial-industrial property and seasonal 
  2.23  recreational property, as defined in this section.  The state 
  2.24  general levy is $592,000,000 for taxes payable in 2002.  For 
  2.25  taxes payable in subsequent years, the levy is increased each 
  2.26  year by multiplying the amount for the prior year by the sum of 
  2.27  one plus the rate of increase, if any, in the implicit price 
  2.28  deflator for government consumption expenditures and gross 
  2.29  investment for state and local governments prepared by the 
  2.30  Bureau of Economic Analysts of the United States Department of 
  2.31  Commerce for the 12-month period ending March 31 of the year 
  2.32  prior to the year the taxes are payable.  The tax under this 
  2.33  section is not treated as a local tax rate under section 469.177 
  2.34  and is not the levy of a governmental unit under chapters 276A 
  2.35  and 473F.  
  2.36     (b) Beginning in fiscal year 2004, and in each year 
  3.1   thereafter, the commissioner of finance shall deposit in an 
  3.2   education reserve account, which account is hereby established, 
  3.3   the increased amount of the state general levy received for 
  3.4   deposit in the general fund for that year over the amount of the 
  3.5   state general levy received for deposit in the general fund in 
  3.6   fiscal year 2003.  The amounts in the education reserve 
  3.7   account are appropriated for payment of small school 
  3.8   sustainability revenue under section 2.  Remaining amounts, if 
  3.9   any, do not lapse or cancel each year, but remain until 
  3.10  appropriated by law for education aid or higher education 
  3.11  funding. 
  3.12     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.13  fiscal year 2005.  
  3.14     Sec. 4.  [REPEALER.] 
  3.15     Minnesota Statutes 2002, section 123B.59, subdivisions 6 
  3.16  and 7, are repealed.  
  3.17     <b>[EFFECTIVE DATE.]</b> This section is effective for aid for 
  3.18  fiscal year 2005.