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HF 2683

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:32pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/03/2010

Current Version - as introduced

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A bill for an act
relating to education finance; adjusting the education aid payment schedule;
amending Minnesota Statutes 2008, sections 123B.75, subdivisions 5, 9, by
adding a subdivision; 126C.48, subdivision 7; 127A.441; 127A.45, subdivisions
2, 3, 13, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 123B.75, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For the purpose of this section, "school district tax settlement
revenue" means the current, delinquent, and manufactured home property tax receipts
collected by the county and distributed to the school district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and applies retroactively
to fiscal year 2010 and later.
new text end

Sec. 2.

Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:


Subd. 5.

Levy recognition.

(a) deleted text begin "School district tax settlement revenue" means the
current, delinquent, and manufactured home property tax receipts collected by the county
and distributed to the school district.
deleted text end

deleted text begin (b)deleted text end For fiscal deleted text begin year 2004 and laterdeleted text end yearsnew text begin 2009 and 2010new text end , in June of each year, the
school district must recognize as revenue, in the fund for which the levy was made, the
lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4
, received in July and August of that calendar year; or

(2) the sum of:

(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
6
new text begin ; plus
new text end

new text begin (iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii)
new text end .

new text begin (b) For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:
new text end

new text begin (1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
new text end

new text begin (2) the sum of:
new text end

new text begin (i) the greater of 49.1 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus
new text end

new text begin (ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and applies retroactively
to fiscal year 2010 and later.
new text end

Sec. 3.

Minnesota Statutes 2008, section 123B.75, subdivision 9, is amended to read:


Subd. 9.

Commissioner shall specify fiscal year.

The commissioner shall specify
the fiscal year or years to which the revenue from any aid or tax levy is applicable if
Minnesota Statutes do not so specify.new text begin The commissioner must report to the house of
representatives and senate committees with jurisdiction over education finance by January
15 of each year any adjustments under this subdivision in the previous year. The legislature
may disapprove any recommendations under this subdivision by a majority vote of the
house of representatives and senate. If the legislature ends the legislative session without
taking action on the commissioner's report, the commissioner's recommendations under
this subdivision are approved.
new text end

Sec. 4.

Minnesota Statutes 2008, section 126C.48, subdivision 7, is amended to read:


Subd. 7.

Reporting.

For each tax settlement, the county auditor shall report to each
school district by fund, the district tax settlement revenue defined in section 123B.75,
subdivision deleted text begin 5deleted text end
deleted text begin , paragraph (a)deleted text end new text begin 1anew text end , on the form specified in section 276.10. The county auditor
shall send to the district a copy of the spread levy report specified in section 275.124.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and applies retroactively
to fiscal year 2010 and later.
new text end

Sec. 5.

Minnesota Statutes 2008, section 127A.441, is amended to read:


127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph new text begin (a) or new text end (b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph new text begin (a) or new text end (b). For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
be adjusted pursuant to this section. The school district shall be notified of the amount of
the adjustment made to each payment pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and applies retroactively
to fiscal year 2010 and later.
new text end

Sec. 6.

Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) The term "other district receipts" means payments by
county treasurers pursuant to section 276.10, apportionments from the school endowment
fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
section 127A.34, subdivision 2, and payments to school districts by the commissioner of
revenue pursuant to chapter 298.

(b) deleted text begin The termdeleted text end "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) deleted text begin The termdeleted text end "Payment date" means the date on which state payments to districts
are made by the electronic funds transfer method. If a payment date falls on a Saturday,
a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
immediately preceding business day. The commissioner may make payments on dates
other than those listed in subdivision 3, but only for portions of payments from any
preceding payment dates which could not be processed by the electronic funds transfer
method due to documented extenuating circumstances.

(d) The current year aid payment percentage equals deleted text begin 90deleted text end new text begin 73new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and applies retroactively
to fiscal year 2010 and later.
new text end

Sec. 7.

Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:


Subd. 3.

Payment dates and percentages.

(a) deleted text begin For fiscal year 2004 and later,deleted text end The
commissioner shall pay to a district on the dates indicated an amount computed as follows:
the cumulative amount guaranteed minus the sum of deleted text begin (a)deleted text end new text begin (1) new text end the district's other district
receipts through the current payment, and deleted text begin (b)deleted text end new text begin (2) new text end the aid and credit payments through the
immediately preceding payment. For purposes of this computation, the payment dates and
the cumulative disbursement percentages are as follows:

Payment date
Percentage
Payment 1
July 15:
5.5
Payment 2
July 30:
8.0
Payment 3
August 15:
17.5
Payment 4
August 30:
20.0
Payment 5
September 15:
22.5
Payment 6
September 30:
25.0
Payment 7
October 15:
27.0
Payment 8
October 30:
30.0
Payment 9
November 15:
32.5
Payment 10
November 30:
36.5
Payment 11
December 15:
42.0
Payment 12
December 30:
45.0
Payment 13
January 15:
50.0
Payment 14
January 30:
54.0
Payment 15
February 15:
58.0
Payment 16
February 28:
63.0
Payment 17
March 15:
68.0
Payment 18
March 30:
74.0
Payment 19
April 15:
78.0
Payment 20
April 30:
85.0
Payment 21
May 15:
90.0
Payment 22
May 30:
95.0
Payment 23
June 20:
100.0

deleted text begin (b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the
commissioner shall pay to a district on the dates indicated an amount computed as follows:
deleted text end

deleted text begin Payment 3
deleted text end
deleted text begin August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
deleted text end
deleted text begin Payment 4
deleted text end
deleted text begin August 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
deleted text end
deleted text begin Payment 6
deleted text end
deleted text begin September 30: one-third of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
deleted text end
deleted text begin Payment 8
deleted text end
deleted text begin October 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end In addition to the amounts paid under paragraph (a), deleted text begin for fiscal year 2005 and
later,
deleted text end the commissioner shall pay to a district on the dates indicated an amount computed
as follows:

Payment 3
August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
Payment 4
August 30: 30 percent of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
Payment 6
September 30: 40 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
Payment 8
October 30: 30 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and applies retroactively
to fiscal year 2010 and later.
new text end

Sec. 8.

Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision
to read:


new text begin Subd. 7b. new text end

new text begin Advance final payment. new text end

new text begin (a) Notwithstanding subdivisions 3 and 7,
a school district or charter school exceeding its expenditure limitations under section
123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment
for the current fiscal year on June 20, if requested by the district or charter school. The
amount paid under this subdivision must not exceed the lesser of:
new text end

new text begin (1) the difference between 90 percent and the current year payment percentage in
subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or
charter school's general education aid plus the aid adjustment in section 127A.50 for
the current fiscal year; or
new text end

new text begin (2) the amount by which the district's or charter school's net negative unreserved
general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
district or charter school's expenditures for that fiscal year.
new text end

new text begin (b) The state total advance final payment under this subdivision for any year must
not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final
payment for each eligible district must be reduced proportionately.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and applies retroactively
to fiscal year 2010 and later.
new text end

Sec. 9.

Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:


Subd. 13.

Aid payment percentage.

Except as provided in subdivisions 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. deleted text begin For the purposes of this subdivision, a district's estimated
entitlement for special education excess cost aid under section 125A.79 for fiscal year
2005 equals 70 percent of the district's entitlement for the second prior fiscal year.
deleted text end For the
purposes of this subdivision, a district's estimated entitlement for special education excess
cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
district's entitlement for the current fiscal year. The final adjustment payment, according
to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the entitlement.