HF 2128

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

A bill for an act
relating to education finance; restoring regular
special education revenue; adding an additional
priority for the state budget reserve; amending
Minnesota Statutes 2004, sections 16A.152, subdivision
2; 125A.76, subdivision 4.

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

Section 1.

Minnesota Statutes 2004, 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 finance determines that there will be a
positive unrestricted budgetary general fund balance at the
close of the biennium, the commissioner of finance 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) new text begin the amount necessary to eliminate state aid reductions
to school districts caused by the statewide special education
regular revenue cap under section 125A.76;
new text end

new text begin (4) new text end 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; and

deleted text begin (4) deleted text end new text begin (5) new text end 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, paragraph (c), and Laws 2003, First Special
Session chapter 9, article 5, section 34, as amended by Laws
2003, First Special Session chapter 23, section 20, by the same
amount.

(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 (5) new text end , as necessary
to meet the appropriations schedules otherwise established in
statute.

(c) To the extent that a positive unrestricted budgetary
general fund balance is projected, appropriations under this
section must be made before any transfer is made under section
16A.1522.

(d) The commissioner of finance 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 (5) new text end , to the commissioner of education. The
commissioner of education shall increase the aid payment
percentage and reduce the property tax shift percentage 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 the day
following final enactment and applies for the June 30, 2005,
fund balance and later.
new text end

Sec. 2.

Minnesota Statutes 2004, section 125A.76,
subdivision 4, is amended to read:

Subd. 4.

State total special education aid.

deleted text begin The state
total special education aid for fiscal year 2004 equals
$530,642,000. deleted text end The state total special education aid for fiscal
year 2005 equals $529,164,000. The state total special
education aid for later fiscal years equals:

(1) the state total special education aid for the preceding
fiscal year new text begin plus the amount of any state general fund surplus
provided under section 16A.152, subdivision 2, but not to exceed
the total adjusted special education base revenue calculated
under subdivision 3 new text end ; times

(2) the program growth factor; times

(3) the ratio of the state total average daily membership
for the current fiscal year to the state total average daily
membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

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