1.1                          A bill for an act
  1.2             relating to education; modifying the payment of state 
  1.3             aids to school districts; amending Minnesota Statutes 
  1.4             1996, sections 124.155, subdivision 1; and 124.195, 
  1.5             subdivisions 2, 7, 10, and 11; repealing Minnesota 
  1.6             Statutes 1996, section 121.904, subdivision 4d. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 124.155, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
  1.11  aids and credits enumerated in subdivision 2 payable to any 
  1.12  school district for that fiscal year shall be adjusted, in the 
  1.13  order listed, by an amount equal to (1) the amount the district 
  1.14  recognized as revenue for the prior fiscal year pursuant to 
  1.15  section 121.904, subdivision 4a, clause (b), minus (2) the 
  1.16  amount the district recognizes as revenue for the current fiscal 
  1.17  year pursuant to section 121.904, subdivision 4a, clause (b).  
  1.18  For the purposes of making the aid adjustment under this 
  1.19  subdivision, the amount the district recognizes as revenue for 
  1.20  either the prior fiscal year or the current fiscal year pursuant 
  1.21  to section 121.904, subdivision 4a, clause (b), shall not 
  1.22  include any amount levied pursuant to sections 124.226, 
  1.23  subdivision 9, 124.912, subdivisions 2 and 3, or a successor 
  1.24  provision only for those districts affected, 124.916, 
  1.25  subdivisions 1 and, 2, and 3, paragraphs (4), (5), and (6), 
  1.26  124.918, subdivision 6, and 124A.03, subdivision 2; and Laws 
  2.1   1992, chapter 499, articles 1, section 20, and 6, section 36.  
  2.2   Payment from the permanent school fund shall not be adjusted 
  2.3   pursuant to this section.  The school district shall be notified 
  2.4   of the amount of the adjustment made to each payment pursuant to 
  2.5   this section. 
  2.6      Sec. 2.  Minnesota Statutes 1996, section 124.195, 
  2.7   subdivision 2, is amended to read: 
  2.8      Subd. 2.  [DEFINITIONS.] (a) The term "other district 
  2.9   receipts" means payments by county treasurers pursuant to 
  2.10  section 276.10, apportionments from the school endowment fund 
  2.11  pursuant to section 124.09, apportionments by the county auditor 
  2.12  pursuant to section 124.10, subdivision 2, and payments to 
  2.13  school districts by the commissioner of revenue pursuant to 
  2.14  chapter 298.  
  2.15     (b) The term "cumulative amount guaranteed" means the sum 
  2.16  of the following: 
  2.17     (1) one-third of the final adjustment payment according to 
  2.18  subdivision 6; plus 
  2.19     (2) the product of 
  2.20     (i) the cumulative disbursement percentage shown in 
  2.21  subdivision 3; times 
  2.22     (ii) the sum of 
  2.23     85 90 percent of the estimated aid and credit entitlements 
  2.24  paid according to subdivision 10; plus 
  2.25     100 percent of the entitlements paid according to 
  2.26  subdivisions 8 and 9; plus 
  2.27     the other district receipts; plus 
  2.28     the final adjustment payment according to subdivision 6.  
  2.29     (c) The term "payment date" means the date on which state 
  2.30  payments to school districts are made by the electronic funds 
  2.31  transfer method.  If a payment date falls on a Saturday, a 
  2.32  Sunday, or a weekday which is a legal holiday, the payment shall 
  2.33  be made on the immediately following business day.  The 
  2.34  commissioner of children, families, and learning may make 
  2.35  payments on dates other than those listed in subdivision 3, but 
  2.36  only for portions of payments from any preceding payment dates 
  3.1   which could not be processed by the electronic funds transfer 
  3.2   method due to documented extenuating circumstances. 
  3.3      Sec. 3.  Minnesota Statutes 1996, section 124.195, 
  3.4   subdivision 7, is amended to read: 
  3.5      Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
  3.6   fiscal year state general fund payments for a district 
  3.7   nonoperating fund shall be made at 85 90 percent of the 
  3.8   estimated entitlement during the fiscal year of the entitlement, 
  3.9   unless a higher rate has been established according to section 
  3.10  121.904, subdivision 4d.  This amount shall be paid in 12 equal 
  3.11  monthly installments.  The amount of the actual entitlement, 
  3.12  after adjustment for actual data, minus the payments made during 
  3.13  the fiscal year of the entitlement shall be paid prior to 
  3.14  October 31 of the following school year.  The commissioner may 
  3.15  make advance payments of homestead and agricultural credit aid 
  3.16  for a district's debt service fund earlier than would occur 
  3.17  under the preceding schedule if the district submits evidence 
  3.18  showing a serious cash flow problem in the fund.  The 
  3.19  commissioner may make earlier payments during the year and, if 
  3.20  necessary, increase the percent of the entitlement paid to 
  3.21  reduce the cash flow problem. 
  3.22     Sec. 4.  Minnesota Statutes 1996, section 124.195, 
  3.23  subdivision 10, is amended to read: 
  3.24     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
  3.25  subdivisions 8, 9, and 11, each fiscal year, all education aids 
  3.26  and credits in this chapter and chapters 121, 123, 124A, 124B, 
  3.27  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
  3.28  for districts operating a program under section 121.585 for 
  3.29  grades 1 to 12 for all students in the district and 85 percent 
  3.30  for other districts of the estimated entitlement during the 
  3.31  fiscal year of the entitlement, unless a higher rate has been 
  3.32  established according to section 121.904, subdivision 4d.  
  3.33  Districts operating a program under section 121.585 for grades 1 
  3.34  to 12 for all students in the district shall receive 85 percent 
  3.35  of the estimated entitlement plus an additional amount of 
  3.36  general education aid equal to five percent of the estimated 
  4.1   entitlement.  For all districts,.  The final adjustment payment, 
  4.2   according to subdivision 6, shall be the amount of the actual 
  4.3   entitlement, after adjustment for actual data, minus the 
  4.4   payments made during the fiscal year of the entitlement. 
  4.5      Sec. 5.  Minnesota Statutes 1996, section 124.195, 
  4.6   subdivision 11, is amended to read: 
  4.7      Subd. 11.  [NONPUBLIC AIDS.] The state shall pay aid 
  4.8   according to sections 123.931 to 123.947 for pupils attending 
  4.9   nonpublic schools as follows: 
  4.10     (1) an advance payment by November 30 equal to 85 90 
  4.11  percent of the estimated entitlement for the current fiscal 
  4.12  year; and 
  4.13     (2) a final payment by October 31 of the following fiscal 
  4.14  year, adjusted for actual data.  
  4.15     If a payment advance to meet cash flow needs is requested 
  4.16  by a district and approved by the commissioner, the state shall 
  4.17  pay basic nonpublic pupil transportation aid according to 
  4.18  section 124.225 attributable to pupils attending nonpublic 
  4.19  schools by October 31. 
  4.20     Sec. 6.  [REPEALER.] 
  4.21     Minnesota Statutes 1996, section 121.904, subdivision 4d, 
  4.22  is repealed. 
  4.23     Sec. 7.  [EFFECTIVE DATE.] 
  4.24     Section 1 is effective the day following final enactment.