HF 1295

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education finance; creating a funding 
  1.3             mechanism for rewarding excellent education results; 
  1.4             appropriating money; amending Minnesota Statutes 2002, 
  1.5             sections 126C.10, subdivisions 1, 2, by adding a 
  1.6             subdivision; 275.025, subdivision 1.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 126C.10, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
  1.11  year 2002, the general education revenue for each district 
  1.12  equals the sum of the district's basic revenue, basic skills 
  1.13  revenue, training and experience revenue, secondary sparsity 
  1.14  revenue, elementary sparsity revenue, transportation sparsity 
  1.15  revenue, total operating capital revenue, equity revenue, 
  1.16  transition revenue, and supplemental revenue. 
  1.17     (b) For fiscal year 2003 and later, the general education 
  1.18  revenue for each district equals the sum of the district's basic 
  1.19  revenue, basic skills revenue, training and experience revenue, 
  1.20  secondary sparsity revenue, elementary sparsity revenue, 
  1.21  transportation sparsity revenue, total operating capital 
  1.22  revenue, and equity revenue. 
  1.23     (b) For fiscal year 2004 and later, the general education 
  1.24  revenue for each district equals the sum of the district's basic 
  1.25  revenue, education excellence revenue, basic skills revenue, 
  1.26  training and experience revenue, secondary sparsity revenue, 
  2.1   elementary sparsity revenue, transportation sparsity revenue, 
  2.2   total operating capital revenue, and equity revenue. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 126C.10, 
  2.4   subdivision 2, is amended to read: 
  2.5      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  2.6   district equals the formula allowance times the adjusted 
  2.7   marginal cost pupil units for the school year.  The formula 
  2.8   allowance for fiscal year 2001 is $3,964.  The formula allowance 
  2.9   for fiscal year 2002 is $4,068. (a) The formula allowance for 
  2.10  fiscal year 2003 and subsequent years is $4,601. 
  2.11     (b) Beginning in fiscal year 2006, three percent of each 
  2.12  district's basic revenue is recaptured and reserved in the state 
  2.13  education excellence account for redistribution to school 
  2.14  districts achieving excellent results under subdivision 2a. 
  2.15     Sec. 3.  Minnesota Statutes 2002, section 126C.10, is 
  2.16  amended by adding a subdivision to read: 
  2.17     Subd. 2a.  [EDUCATION EXCELLENCE REVENUE.] (a) A school 
  2.18  district is eligible for education excellence revenue based on 
  2.19  the school district's performance on the following six standards:
  2.20     (1) graduation rate; 
  2.21     (2) attendance rate; 
  2.22     (3) achievement of educational standards; 
  2.23     (4) adequate yearly progress; 
  2.24     (5) school safety; and 
  2.25     (6) publication of a school report card. 
  2.26     The commissioner of children, families, and learning must 
  2.27  establish minimum qualifying benchmarks for each of the six 
  2.28  standards listed in this paragraph.  A school district that 
  2.29  meets or exceeds the benchmarks established by the commissioner 
  2.30  for that school district is eligible for educational excellence 
  2.31  revenue for each standard that is met. 
  2.32     (b) Total revenue in the education excellence account 
  2.33  equals the sum of the amounts deposited each year in the 
  2.34  education excellence account under subdivision 2 and section 
  2.35  275.025, subdivision 1. 
  2.36     (c) Each year, the commissioner shall determine the 
  3.1   education excellence revenue allowance.  The allowance is equal 
  3.2   to the total amount of revenue deposited in the account under 
  3.3   paragraph (b) divided by the number adjusted marginal cost pupil 
  3.4   units in each school district multiplied by the number of 
  3.5   standards under paragraph (a) that have been met or exceeded for 
  3.6   the school district for the previous school year. 
  3.7      (d) The revenue in the education excellence account is 
  3.8   annually appropriated for the purpose of paying educational 
  3.9   excellence revenue to school districts. 
  3.10     (e) A school district's education excellence allowance 
  3.11  equals the product of the education excellence allowance, the 
  3.12  district's adjusted marginal cost pupil units for that year, and 
  3.13  the number of standards that have been met or exceeded for the 
  3.14  previous school year. 
  3.15     Sec. 4.  Minnesota Statutes 2002, section 275.025, 
  3.16  subdivision 1, is amended to read: 
  3.17     Subdivision 1.  [LEVY AMOUNT.] The state general levy is 
  3.18  levied against commercial-industrial property and seasonal 
  3.19  recreational property, as defined in this section.  The state 
  3.20  general levy is $592,000,000 for taxes payable in 2002.  For 
  3.21  taxes payable in subsequent years, the levy is increased each 
  3.22  year by multiplying the amount for the prior year by the sum of 
  3.23  one plus the rate of increase, if any, in the implicit price 
  3.24  deflator for government consumption expenditures and gross 
  3.25  investment for state and local governments prepared by the 
  3.26  Bureau of Economic Analysts of the United States Department of 
  3.27  Commerce for the 12-month period ending March 31 of the year 
  3.28  prior to the year the taxes are payable.  The tax under this 
  3.29  section is not treated as a local tax rate under section 469.177 
  3.30  and is not the levy of a governmental unit under chapters 276A 
  3.31  and 473F.  Beginning in fiscal year 2004, and in each year 
  3.32  thereafter, the commissioner of finance shall deposit in an the 
  3.33  education excellence reserve account, which account is hereby 
  3.34  established, the increased amount of the state general levy 
  3.35  received for deposit in the general fund for that year over the 
  3.36  amount of the state general levy received for deposit in the 
  4.1   general fund in fiscal year 2003.  The amounts in the education 
  4.2   reserve account do not lapse or cancel each year, but remain 
  4.3   until appropriated by law for education aid or higher education 
  4.4   funding under section 126C.10, subdivision 2a.