Minnesota Legislature
SF 177
1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/08/2013 09:54am
Current Version - 1st Engrossment
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A bill for an act
relating to education finance; increasing equalization aid levels for the operating
referendum and debt service equalization aid programs; creating education
advancement revenue; appropriating money; amending Minnesota Statutes 2012,
sections 123B.53, subdivision 5; 126C.01, by adding subdivisions; 126C.10,
subdivision 1, by adding subdivisions; 126C.13, subdivision 4; 126C.17,
subdivisions 1, 2, 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, 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 $3,049deleted text end new text begin the product of $6,098 and the ratio of the current year adjusted net tax
capacity equalizing factor to the adjusted net tax capacity equalizing factor as calculated
for revenue in fiscal year 2015new 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 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 $7,622deleted text end new text begin the product of $7,622 and the ratio of the current year adjusted net tax
capacity equalizing factor to the adjusted net tax capacity equalizing factor as calculated
for revenue in fiscal year 2015new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2015
and later.
new text end
Sec. 2.
Minnesota Statutes 2012, section 126C.01, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Adjusted net tax capacity equalizing factor. new text end
new text begin
The adjusted net tax
capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax
capacity of all school districts in the state for the year before the year the levy is certified by
the total number of adjusted marginal cost pupil units in the state for the current school year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and later.
new text end
Sec. 3.
Minnesota Statutes 2012, section 126C.01, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Referendum market value equalizing factor. new text end
new text begin
The referendum market
value equalizing factor equals the quotient derived by dividing the total referendum market
value of all school districts in the state for the year before the year the levy is certified by
the total number of resident marginal cost pupil units in the state for the current school year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and later.
new text end
Sec. 4.
Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
Subdivision 1.
General education revenue.
The general education revenue for
each district equals the sum of the district's basic revenue, extended time revenue, gifted
and talented revenue, small schools revenue, basic skills revenue, training and experience
revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
revenue, total operating capital revenue, new text begin education advancement revenue, new text end equity revenue,
alternative teacher compensation revenue, and transition revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2015
and later.
new text end
Sec. 5.
Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
to read:
new text begin Subd. 37. new text end
new text begin Education advancement revenue. new text end
new text begin
The education advancement revenue
for each district equals the advancement allowance times the resident marginal cost
pupil units for the school year. The advancement allowance for fiscal year 2015 and
later years is $300.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2015
and later.
new text end
Sec. 6.
Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
to read:
new text begin Subd. 39. new text end
new text begin Education advancement levy. new text end
new text begin
To obtain education advancement revenue,
a district may levy an amount not more than the product of its education advancement
revenue for the fiscal year times the lesser of one or the ratio of its referendum market
value per resident marginal cost pupil unit to the education advancement revenue
equalizing factor. The education advancement revenue equalizing factor equals $868,513.
If a district adopts a board resolution to levy less than the permitted levy, the district's
education advancement aid shall be reduced proportionately.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2015
and later.
new text end
Sec. 7.
Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
to read:
new text begin Subd. 40. new text end
new text begin Education advancement aid. new text end
new text begin
For fiscal year 2015 and later, a school
district's education advancement aid is the product of: (1) the difference between the
district's education advancement revenue and the education advancement levy; times (2)
the ratio of the actual amount levied to the permitted levy.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2015
and later.
new text end
Sec. 8.
Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
Subd. 4.
General education aid.
new text begin (a) new text end For fiscal years deleted text begin 2007deleted text end new text begin 2013new text end and deleted text begin laterdeleted text end new text begin 2014new text end , a
district's general education aid is the sum of the following amounts:
(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;
(2) operating capital aid under section 126C.10, subdivision 13b;
(3) equity aid under section 126C.10, subdivision 30;
(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
(5) transition aid under section 126C.10, subdivision 33;
(6) shared time aid under section 126C.01, subdivision 7;
(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
(8) online learning aid according to section 124D.096.
new text begin
(b) For fiscal year 2015 and later, a district's general education aid is the sum of
the following amounts:
new text end
new text begin
(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, education advancement revenue, and
transition revenue;
new text end
new text begin
(2) operating capital aid under section 126C.10, subdivision 13b;
new text end
new text begin
(3) equity aid under section 126C.10, subdivision 30;
new text end
new text begin
(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
new text end
new text begin
(5) education advancement aid under section 126C.10, subdivision 41;
new text end
new text begin
(6) transition aid under section 126C.10, subdivision 33;
new text end
new text begin
(7) shared time aid under section 126C.01, subdivision 7;
new text end
new text begin
(8) referendum aid under section 126C.17, subdivisions 7 and 7a; and
new text end
new text begin
(9) online learning aid according to section 124D.096.
new text end
Sec. 9.
Minnesota Statutes 2012, section 126C.17, subdivision 1, is amended to read:
Subdivision 1.
Referendum allowance.
(a) For fiscal year 2003 and later, a district's
initial referendum revenue allowance equals the sum of the allowance under section
126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
plus the referendum conversion allowance approved under subdivision 13, minus $415.
For districts with more than one referendum authority, the reduction must be computed
separately for each authority. The reduction must be applied first to the referendum
conversion allowance and next to the authority with the earliest expiration date. A
district's initial referendum revenue allowance may not be less than zero.
deleted text begin
(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
fiscal year 2003 and later.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end For fiscal deleted text begin year 2004 and laterdeleted text end new text begin years 2013 and 2014new text end , a district's referendum
revenue allowance equals the sum of:
(1) the product of (i) the ratio of the resident marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
year 2003 and later, plus
(2) any additional allowance per resident marginal cost pupil unit authorized under
subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
new text begin
(c) For fiscal year 2015 and later, a district's referendum revenue allowance equals
the total of:
new text end
new text begin
(1) the product of (i) the ratio of the resident marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
year 2003 and later, plus
new text end
new text begin
(2) any additional allowance per resident marginal cost pupil unit authorized under
subdivision 9 after May 30, 2003, for fiscal year 2005 and later, minus
new text end
new text begin
(3) $300.
new text end
new text begin
A district's referendum revenue allowance may not be less than zero.
new text end
Sec. 10.
Minnesota Statutes 2012, section 126C.17, subdivision 2, is amended to read:
Subd. 2.
Referendum allowance limit.
(a) Notwithstanding subdivision 1, for
fiscal deleted text begin year 2007 and laterdeleted text end new text begin years 2013 and 2014new 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 deleted text begin (b)deleted text end new text begin (c)new text end plus (ii) its
referendum conversion allowance for fiscal year 2003, minus (iii) $215;
(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
annual inflationary increase as calculated under paragraph deleted text begin (b)deleted text end new text begin (c)new text end ; or
(3) for a newly reorganized district created after July 1, 2006, 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.
new text begin
(b) Notwithstanding subdivision 1, for fiscal year 2015 and later, a district's
referendum allowance must not exceed the greater of:
new text end
new text begin
(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) $515;
new text end
new text begin
(2) the greater of: (i) 26 percent of the formula allowance minus $300 or (ii) $1,294
times the annual inflationary increase as calculated under paragraph (c), minus $300; or
new text end
new text begin
(3) for a newly reorganized district created after July 1, 2006, 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.
new text end
deleted text begin (b)deleted text end new text begin (c)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 (a), clause (1), new text begin and paragraph (b), clause (1), new text end 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.
Sec. 11.
Minnesota Statutes 2012, 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 $476,000deleted text end new text begin the product of
$952,000 and the ratio of the current year referendum market value equalizing factor to the
referendum market value equalizing factor as calculated for revenue in fiscal year 2015new 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 deleted text begin $270,000deleted text end new text begin the product of
$540,000 and the ratio of the current year referendum market value equalizing factor to the
referendum market value equalizing factor as calculated for revenue in fiscal year 2015new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue for fiscal year 2015
and later.
new text end
Sec. 12. new text begin DIRECTION TO THE COMMISSIONER.
new text end
new text begin
In computing the reduction to a school district's referendum allowance, the
commissioner of education must first reduce a district's referendum allowance with the
earliest expiration date and then, if necessary, reduce to additional referendum authority
allowances based on the next earliest expiration date.
new text end
Sec. 13. new text begin OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school district
may not authorize an increase to its operating referendum in fiscal year 2015. A school
district may reauthorize an operating referendum that is expiring in fiscal year 2015. If a
school district asks the voters to reauthorize operating referendum authority that is expiring
in fiscal year 2015, it may request a reauthorization of that expiring authority minus $300.
new text end