HF 2310

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

A bill for an act
relating to education funding; increasing referendum
equalization aid; increasing the referendum revenue
cap; amending Minnesota Statutes 2004, section
126C.17, subdivisions 2, 5.

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

Section 1.

Minnesota Statutes 2004, section 126C.17,
subdivision 2, is amended to read:

Subd. 2.

Referendum allowance limit.

(a) deleted text begin Notwithstanding
subdivision 1, for fiscal year 2003, a district's referendum
allowance must not exceed the greater of:
deleted text end

deleted text begin (1) the sum of a district's referendum allowance for fiscal
year 1994 times 1.162 plus its referendum conversion allowance
for fiscal year 2003, minus $415;
deleted text end

deleted text begin (2) 18.2 percent of the formula allowance;
deleted text end

deleted text begin (3) for a newly reorganized district created on July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization, minus $415; or
deleted text end

deleted text begin (4) for a newly reorganized district created after July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization.
deleted text end

deleted text begin (b) deleted text end Notwithstanding subdivision 1, deleted text begin for fiscal year 2004 and
later, deleted text end a district's referendum allowance must not exceed the
greater of:

(1) the sum of: (i) a district's referendum allowance for
fiscal year 1994 times 1.177 times the annual inflationary
increase as calculated under paragraph (c) plus (ii) its
referendum conversion allowance for fiscal year 2003, minus
(iii) $415;

(2) the greater of (i) deleted text begin 18.6 deleted text end new text begin 28 new text end percent of the formula
allowance or (ii) deleted text begin $855.79 deleted text end new text begin $1,288 new text end times the annual inflationary
increase as calculated under paragraph (c); or

(3) for a newly reorganized district created after July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization.

deleted text begin (c) deleted text end new text begin (b) new text end For purposes of this subdivision, for fiscal year
2005 and later, "inflationary increase" means one plus the
percentage change in the Consumer Price Index for urban
consumers, as prepared by the United States Bureau of Labor
Standards, for the current fiscal year to fiscal year 2004. For
fiscal years 2009 and later, for purposes of paragraph deleted text begin (b) deleted text end new text begin (a) new text end ,
clause (1), the inflationary increase equals the inflationary
increase for fiscal year 2008 plus one-fourth of the percentage
increase in the formula allowance for that year compared with
the formula allowance for fiscal year 2008.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 126C.17,
subdivision 5, is amended to read:

Subd. 5.

Referendum equalization revenue.

(a) deleted text begin For fiscal
year 2003 and later, deleted text end A district's referendum equalization
revenue equals the sum of the first tier referendum equalization
revenue and the second tier referendum equalization revenue.

(b) A district's first tier referendum equalization revenue
equals the district's first tier referendum equalization
allowance times the district's resident marginal cost pupil
units for that year.

(c) deleted text begin For fiscal years 2003 and 2004, a district's first tier
referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or $126.
For fiscal year 2005, a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $405. For fiscal
year 2006 and later, deleted text end A district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or deleted text begin $500 deleted text end new text begin $800 new text end .

(d) A district's second tier referendum equalization
revenue equals the district's second tier referendum
equalization allowance times the district's resident marginal
cost pupil units for that year.

(e) A district's second tier referendum equalization
allowance equals the lesser of the district's referendum
allowance under subdivision 1 or deleted text begin 18.6 deleted text end new text begin 28 new text end percent of the formula
allowance, minus the district's first tier referendum
equalization allowance.

(f) Notwithstanding paragraph (e), the second tier
referendum allowance for a district qualifying for secondary
sparsity revenue under section 126C.10, subdivision 7, or
elementary sparsity revenue under section 126C.10, subdivision
8, equals the district's referendum allowance under subdivision
1 minus the district's first tier referendum equalization
allowance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end