HF 1563

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; proposing a uniform
increase in the basic general education revenue
amounts; authorizing a uniform school levy; amending
Minnesota Statutes 2004, sections 126C.10, subdivision
2; 126C.13, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2004, section 126C.10,
subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

new text begin (a) new text end The basic revenue for each
district equals the formula allowance times the adjusted
marginal cost pupil units for the school year. deleted text begin The formula
allowance for fiscal year 2001 is $3,964. The formula allowance
for fiscal year 2002 is $4,068. deleted text end The formula allowance for
fiscal year 2003 and subsequent years is $4,601.

new text begin (b) The basic formula allowance in paragraph (a) is
increased by $200 for fiscal year 2006 and by $420 for fiscal
year 2007 and later. The increase in the formula allowance
under this paragraph applies only for general education basic
revenue and does not affect any other school formula.
new text end

new text begin (c) At least 90 percent of the revenue received under
paragraph (b) must be spent on regular classroom instruction as
defined in the uniform financial and accounting standards used
for school accounting.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Our kids are good school levy. new text end

new text begin The our kids are
good school levy equals $147,000,000 for taxes payable in 2006
and $214,000,000 for taxes payable in 2007 and subsequent years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 3.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin General education tax rate. new text end

new text begin The commissioner
must establish the our kids are good tax rate by July 1 of each
year for taxes payable in the following year. The our kids are
good tax rate must be a rate, rounded to the nearest hundredth
of a percent, that, when applied to the adjusted net tax
capacity for all districts, raises the amount specified in
subdivision 6. The our kids are good tax rate may not be
changed due to changes or corrections made to a district's
adjusted net tax capacity after the tax rate has been
established.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 4.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Levy for general education. new text end

new text begin To obtain general
education revenue, a district must levy an amount not to exceed
the our kids are good tax rate times the adjusted net tax
capacity of the district for the preceding year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 5.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin General education aid. new text end

new text begin A district's general
education aid under subdivision 4 is reduced by the amount of
the district's our kids are good levy under subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end