HF 2838

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

A bill for an act
relating to education finance; increasing the equalizing factors for the debt
service equalization aid and referendum equalization aid programs; indexing
the equalizing factors; amending Minnesota Statutes 2004, sections 123B.53,
subdivisions 4, 5; 126C.01, by adding subdivisions; 126C.17, subdivision 6.

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

Section 1.

Minnesota Statutes 2004, section 123B.53, subdivision 4, is amended to read:

Subd. 4.

Debt service equalization revenue.

(a) The debt service equalization
revenue of a district equals the sum of the first tier debt service equalization revenue and
the second tier debt service equalization revenue.

(b) The first tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue minus the amount raised by a levy of deleted text begin 15 deleted text end new text begin 10 new text end
percent times the adjusted net tax capacity of the district minus the second tier debt service
equalization revenue of the district.

(c) The second tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue, excluding alternative facilities levies under
section 123B.59, subdivision 5, minus the amount raised by a levy of deleted text begin 25 deleted text end new text begin 20 new text end percent times
the adjusted net tax capacity of the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123B.53, subdivision 5, is amended to read:

Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $3,200 deleted text end new text begin $5,000 times the equalizing factor adjustment under section 126C.01,
subdivision 12 new text end .

(c) A district's second tier equalized debt service levy equals the district's second
tier debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the deleted text begin adjusted deleted text end new text begin debt service new text end net tax capacity of the
district for the year before the year the levy is certified by the adjusted pupil units in the
district for the school year ending in the year prior to the year the levy is certified; to

(2) $8,000 new text begin times the equalizing factor adjustment under section 126C.01, subdivision
12 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 3.

Minnesota Statutes 2004, section 126C.01, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Net tax capacity equalizing factor adjustment. new text end

new text begin The net tax capacity
equalizing factor adjustment equals the greater of one or the ratio of the statewide net
tax capacity for the most recent assessment year divided by the statewide adjusted
marginal cost pupil units for the third subsequent year to the statewide net tax capacity
for assessment year 2004 divided by the statewide adjusted marginal cost pupil units
for fiscal year 2007.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 4.

Minnesota Statutes 2004, section 126C.01, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Referendum market value equalizing factor adjustment. new text end

new text begin The
referendum market value equalizing factor adjustment equals the greater of one or the ratio
of the statewide referendum market value for the most recent assessment year divided
by the statewide adjusted marginal cost pupil units for the third subsequent year to the
statewide referendum market value for assessment year 2004 divided by the statewide
adjusted marginal cost pupil units for fiscal year 2007.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 5.

Minnesota Statutes 2004, section 126C.17, subdivision 6, is amended to read:

Subd. 6.

Referendum equalization levy.

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

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin $476,000 deleted text end new text begin $650,000 times
the equalizing factor adjustment under section 126C.01, subdivision 13 new text end .

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to $270,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end