HF 1574

as introduced - 88th Legislature (2013 - 2014) Posted on 03/14/2013 02:30pm

A bill for an act
relating to education finance; creating a state general fund budget priority for
funding unreimbursed special education costs; appropriating money; amending
Minnesota Statutes 2012, sections 16A.152, subdivision 2; 127A.065.

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

Section 1.

Minnesota Statutes 2012, section 16A.152, subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount; deleted text begin and
deleted text end

(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5 new text begin ; and
new text end

new text begin (6) to pay school districts for their unreimbursed special education costs under
section 127A.065 new text end .

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) deleted text begin and deleted text end new text begin , new text end (4), new text begin and (6), new text end as necessary to meet the
appropriations schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) deleted text begin and deleted text end new text begin , new text end (4), new text begin and (6), new text end to the commissioner
of education. The commissioner of education shall increase the aid payment percentage
deleted text begin and deleted text end new text begin , new text end reduce the property tax shift percentage new text begin , and increase the special education funding
to reduce the unreimbursed costs new text end by these amounts and apply those reductions to the
current fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state general fund forecasts
occurring after July 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 127A.065, is amended to read:

127A.065 CROSS-SUBSIDY REPORT.

new text begin (a) new text end By January 10, the commissioner of education shall submit an annual report
to the legislative committees having jurisdiction over kindergarten through grade 12
education on the amount each district is cross-subsidizing special education costs with
general education revenue.

new text begin (b) Any payments allocated under section 16A.152, subdivision 2, paragraph (a),
clause (6), are appropriated from the general fund to the commissioner of education
for proportionate payment of unreimbursed special education costs incurred by school
districts for the most recent year as measured by the report required in paragraph (a), for
each district's adjusted net special education cross-subsidy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
new text end