HF 2960

as introduced - 87th Legislature (2011 - 2012) Posted on 03/22/2012 11:15am

A bill for an act
relating to finance; requiring a reduction in general fund appropriations to
provide an annual increase in the aid payment percentage for school districts;
amending Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.1524] APPROPRIATION REDUCTION AND SCHOOL AID
PAYMENT PERCENTAGE INCREASE.
new text end

new text begin Subdivision 1. new text end

new text begin General fund appropriation reduction. new text end

new text begin By July 15 of each
fiscal year, the commissioner of management and budget shall reduce all general fund
appropriations by one percent and cancel these appropriations to the general fund.
new text end

new text begin Subd. 2. new text end

new text begin Exemptions. new text end

new text begin Appropriations made to the commissioner of education and
the appropriation under section 16A.641 are exempt from subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Increase in school aid payment percentage. new text end

new text begin If the current year aid
payment percentage under section 127A.45 is less than 90 percent, by July 31 of each
fiscal year, the commissioner of management and budget shall certify to the commissioner
of education the total amount of the general fund appropriation reductions under
subdivision 1. The commissioner of education shall increase the aid payment percentage
to not more than 90 percent rounded to the nearest tenth of a percent by the certified
amount for that fiscal year and thereafter. The amounts necessary to meet this requirement
are appropriated from the general fund to the commissioner of education.
new text end

Sec. 2.

Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2, is
amended to read:

Subd. 2.

Definitions.

(a) "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) "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) "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 73 in fiscal year 2010 and 70 in
fiscal year 2011, and deleted text begin 60 deleted text end new text begin 64.3 new text end in fiscal years 2012 and later.

new text begin (e) Notwithstanding paragraph (d), the current year aid payment percentage equals
the amount in paragraph (d), as adjusted by section 16A.152, subdivision 2, or section
16A.1524.
new text end