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SF 258

Introduction - 86th Legislature (2009 - 2010)

Posted on 02/09/2010 02:12 a.m.

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education; removing certain restrictions on distribution of staff
development revenue; reducing reserve account limits for school readiness,
community education, and early childhood family education; adjusting
the maintenance of effort penalty on regional library basic support grants;
temporarily eliminating teacher contract settlement penalty; creating flexibility
on use of learning and development revenue; creating flexibility on use of the
safe schools levy revenue; permitting school districts to transfer operating capital
revenue to the unrestricted general fund; eliminating reserve requirement for
school districts on area learning centers; amending Minnesota Statutes 2008,
sections 122A.61, subdivision 1; 124D.135, subdivision 8; 124D.16, subdivision
6; 124D.20, subdivision 11; 134.34, subdivision 4; repealing Minnesota Statutes
2008, section 123A.05, subdivision 2.

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

Section 1.

Minnesota Statutes 2008, section 122A.61, subdivision 1, is amended to
read:


Subdivision 1.

Staff development revenue.

A district is required to reserve
an amount equal to at least two percent of the basic revenue under section 126C.10,
subdivision 2
, for in-service education for programs under section 120B.22, subdivision
2
, for staff development plans, including plans for challenging instructional activities
and experiences under section 122A.60, and for curriculum development and programs,
other in-service education, teachers' workshops, teacher conferences, the cost of
substitute teachers staff development purposes, preservice and in-service education for
special education professionals and paraprofessionals, and other related costs for staff
development efforts. A district may annually waive the requirement to reserve deleted text begin theirdeleted text end new text begin its
new text end basic revenue under this section if a majority vote of the licensed teachers in the district
and a majority vote of the school board agree to a resolution to waive the requirement. A
district in statutory operating debt is exempt from reserving basic revenue according to
this section. Districts may expend an additional amount of unreserved revenue for staff
development based on their needs. deleted text begin With the exception of amounts reserved for staff
development from revenues allocated directly to school sites, the board must initially
allocate 50 percent of the reserved revenue to each school site in the district on a per
teacher basis, which must be retained by the school site until used. The board may retain
25 percent to be used for district wide staff development efforts. The remaining 25 percent
of the revenue must be used to make grants to school sites for best practices methods.
deleted text end
deleted text begin A grantdeleted text end new text begin The revenuenew text end may be used for any purpose authorized under section 120B.22,
subdivision 2
, 122A.60, or for the costs of curriculum development and programs, other
in-service education, teachers' workshops, teacher conferences, substitute teachers for
staff development purposes, and other staff development efforts, and determined by
the site professional development team. The site professional development team must
demonstrate to the school board the extent to which staff at the site have met the outcomes
of the program. The board may withhold deleted text begin a portion of initial allocation ofdeleted text end new text begin thenew text end revenue if
new text begin the board determines that new text end the staff development outcomes are not being met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 124D.135, subdivision 8, is amended to read:


Subd. 8.

Reserve account limit.

(a) Under this section, the average balance, during
the most recent three-year period in a district's early childhood family education reserve
account on June 30 of each year, adjusted for any prior reductions under this subdivision,
must not be greater than deleted text begin 25deleted text end new text begin 20 new text end percent of the sum of the district's maximum early
childhood family education annual revenue under subdivision 1, excluding adjustments
under this subdivision, plus any fees, grants, or other revenue received by the district for
early childhood family education programs for the prior year.

(b) If a district's adjusted average early childhood family education reserve over
the three-year period is in excess of the limit under paragraph (a), the district's early
childhood family education state aid and levy authority for the current school year must
be reduced by the lesser of the current year revenue under subdivision 1 or the excess
reserve amount. The aid reduction equals the product of the lesser of the excess reserve
amount or the current year revenue under subdivision 1 times the ratio of the district's
aid for the current year under subdivision 4 to the district's revenue for the current year
under subdivision 1. The levy reduction equals the excess reserve amount minus the aid
reduction. For purposes of this paragraph, if a district does not levy the entire amount
permitted under subdivision 3, the revenue under subdivision 1 must be reduced in
proportion to the actual amount levied.

deleted text begin (c) Notwithstanding paragraph (a), for fiscal year 2003, the excess reserve amount
shall be computed using the balance in a district's early childhood family education
reserve account on June 30, 2002. For fiscal year 2004, the excess reserve amount shall
be computed using the adjusted average balance in a district's early childhood family
education reserve account on June 30, 2002, and June 30, 2003.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010
and later.
new text end

Sec. 3.

Minnesota Statutes 2008, section 124D.16, subdivision 6, is amended to read:


Subd. 6.

Reserve account limit.

(a) Under this section, the average balance, during
the most recent three-year period, in a district's school readiness reserve account on June
30 of each year, adjusted for any prior reductions under this subdivision, must not be
greater than deleted text begin 25deleted text end new text begin 20 new text end percent of the district's school readiness annual revenue for the prior
year, excluding adjustments under this subdivision.

(b) If a district's adjusted average school readiness reserve over the three-year period
is in excess of the limit under paragraph (a), the district's current year school readiness
state aid must be reduced by the lesser of the excess reserve amount or the current year aid.

deleted text begin (c) Notwithstanding paragraph (a), for fiscal year 2003, the excess reserve amount
shall be computed using the balance in a district's school readiness reserve account on
June 30, 2002. For fiscal year 2004, the excess reserve amount shall be computed using
the adjusted average balance in a district's school readiness reserve account on June 30,
2002, and June 30, 2003.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010
and later.
new text end

Sec. 4.

Minnesota Statutes 2008, section 124D.20, subdivision 11, is amended to read:


Subd. 11.

Reserve account limit.

(a) Under this section, the sum of the average
balances during the most recent three-year period in a district's community education
reserve account and unreserved/undesignated community service fund account on June
30 of each year, adjusted for any prior reductions under this subdivision, must not be
greater than deleted text begin 25deleted text end new text begin 20 new text end percent of the sum of the district's maximum total community education
revenue under subdivision 1, excluding adjustments under this subdivision, plus any
fees, grants, or other revenue received by the district for community education programs
for the prior year. For purposes of this paragraph, "community education programs"
means programs according to subdivisions 8, paragraph (a), and 9, and section 124D.19,
subdivision 12
, excluding early childhood family education programs under section
124D.13, school readiness programs under section 124D.15, and adult basic education
programs under section 124D.52.

(b) If the sum of the average balances during the most recent three-year period in a
district's community education reserve account and unreserved/undesignated community
service fund account on June 30 of each year, adjusted for any prior reductions under
this subdivision, is in excess of the limit under paragraph (a), the district's community
education state aid and levy authority for the current school year must be reduced by the
lesser of the current year revenue under subdivision 1 or the excess reserve amount.
The aid reduction equals the product of the lesser of the excess reserve amount or the
current year revenue under subdivision 1 times the ratio of the district's aid for the current
year under subdivision 7 to the district's revenue for the current year under subdivision
1. The levy reduction equals the excess reserve amount minus the aid reduction. For
purposes of this paragraph, if a district does not levy the entire amount permitted under
subdivision 5 or 6, the revenue under subdivision 1 must be reduced in proportion to
the actual amount levied.

deleted text begin (c) Notwithstanding paragraph (a), for fiscal year 2003, the excess reserve amount
shall be computed using the balances in a district's community education reserve account
and unreserved/undesignated community service fund account on June 30, 2002. For
fiscal year 2004, the excess reserve amount shall be computed using the adjusted average
balances in a district's community education reserve account and unreserved/undesignated
community service fund account on June 30, 2002, and June 30, 2003.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010
and later.
new text end

Sec. 5.

Minnesota Statutes 2008, section 134.34, subdivision 4, is amended to read:


Subd. 4.

Limitation.

A regional library basic system support grant deleted text begin shall not be
made
deleted text end to a regional public library system for a participating city or county which decreases
the dollar amount provided for support for operating purposes of public library service
below the amount provided by it for the second preceding yearnew text begin shall be reduced. The
regional library basic system support grant shall be reduced in the same proportion that the
participating city or county decreased its participation below the amount it provided for
the second preceding year
new text end . For purposes of this subdivision and subdivision 1, any funds
provided under section 473.757, subdivision 2, for extending library hours of operation
shall not be considered amounts provided by a city or county for support for operating
purposes of public library service. This subdivision shall not apply to participating cities
or counties where the adjusted net tax capacity of that city or county has decreased, if the
dollar amount of the reduction in support is not greater than the dollar amount by which
support would be decreased if the reduction in support were made in direct proportion to
the decrease in adjusted net tax capacity.

Sec. 6. new text begin DEADLINE AND PENALTY WAIVED.
new text end

new text begin The deadline and penalty under Minnesota Statutes, section 123B.05, subdivision 2,
do not apply for aid payments for the 2010-2011 biennium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 7. new text begin LEARNING AND DEVELOPMENT REVENUE; TEMPORARY
SUSPENSION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 126C.12, subdivisions 4 and 5, for
fiscal years 2010 and 2011 only, a school district or charter school may use the learning
and development revenue reserve under Minnesota Statutes, section 126C.12, subdivision
1, according to the requirements of general education revenue under Minnesota Statutes,
section 126C.13, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 8. new text begin SAFE SCHOOLS LEVY; TEMPORARY SUSPENSION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 126C.44, for fiscal years 2010 and
2011 only, a school district that receives safe school levy funds under Minnesota Statutes,
section 126C.44, may use those funds according to the requirement of general education
revenue under Minnesota Statutes, section 126C.13, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 9. new text begin CAPITAL ACCOUNT FUND TRANSFER.
new text end

new text begin Notwithstanding any law to the contrary, on June 30, 2009, a school district may
transfer money from its reserved for operating capital account to its undesignated balance
in the general fund. The amount transferred by any school district must not exceed $102
times the district's adjusted marginal cost pupil units for fiscal year 2008. The transfer
may occur only after the school board has adopted a written resolution stating the amount
of the transfer and declaring that the school district's operating capital needs are met.
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. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 123A.05, subdivision 2, new text end new text begin is repealed effective
July 1, 2009.
new text end