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SF 297

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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

Current Version - as introduced

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A bill for an act
relating to education; modifying and repealing certain education funding
provisions; amending Minnesota Statutes 2006, sections 126C.10, subdivisions
1, 13a, 13b, 29, 30, 32, 33, 34, 35, 36, by adding subdivisions; 126C.13,
subdivision 4, by adding subdivisions; repealing Minnesota Statutes 2006,
section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33, 35, 36.

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

Section 1.

Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

For fiscal year 2006 and later,
the general education revenue for each district equals the sum of the district's basic
revenue, extended time revenue, gifted and talented revenue, basic skills revenue, training
and experience revenue, secondary sparsity revenue, elementary sparsity revenue,
transportation sparsity revenue, total operating capital revenue, equity revenue, alternative
teacher compensation revenuenew text begin under section 122A.415new text end , and transition revenue.

Sec. 2.

Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:


Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
deleted text begin yeardeleted text end new text begin years new text end 2007 and deleted text begin laterdeleted text end new text begin 2008new text end , a district may levy an amount not more than the product
of its operating capital revenue for the fiscal year times the lesser of one or the ratio of
its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals deleted text begin $22,222 for fiscal year
2006, and
deleted text end $10,700 for fiscal deleted text begin yeardeleted text end new text begin years new text end 2007 and deleted text begin laterdeleted text end new text begin 2008new text end .

Sec. 3.

Minnesota Statutes 2006, section 126C.10, subdivision 13b, is amended to read:


Subd. 13b.

Operating capital aid.

new text begin For fiscal years 2007 and 2008, new text end a district's
operating capital aid equals its operating capital revenue minus its operating capital levy
times the ratio of the actual amount levied to the permitted levy.

Sec. 4.

Minnesota Statutes 2006, section 126C.10, subdivision 29, is amended to read:


Subd. 29.

Equity levy.

To obtain equity revenue for fiscal deleted text begin year 2005deleted text end new text begin years 2007new text end and
deleted text begin laterdeleted text end new text begin 2008new text end , a district may levy an amount not more than the product of its equity 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 $476,000.

Sec. 5.

Minnesota Statutes 2006, section 126C.10, subdivision 30, is amended to read:


Subd. 30.

Equity aid.

new text begin For fiscal years 2007 and 2008, new text end a district's equity aid equals
its equity revenue minus its equity levy times the ratio of the actual amount levied to
the permitted levy.

Sec. 6.

Minnesota Statutes 2006, section 126C.10, subdivision 32, is amended to read:


Subd. 32.

Transition levy.

To obtain transition revenue for fiscal deleted text begin year 2005deleted text end new text begin years
2007
new text end and deleted text begin laterdeleted text end new text begin 2008new text end , a district may levy an amount not more than the product of its
transition 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 $476,000.

Sec. 7.

Minnesota Statutes 2006, section 126C.10, subdivision 33, is amended to read:


Subd. 33.

Transition aid.

deleted text begin (a) For fiscal year 2004, a district's transition aid equals
its transition revenue.
deleted text end

deleted text begin (b)deleted text end For fiscal deleted text begin year 2005deleted text end new text begin years 2007new text end and deleted text begin laterdeleted text end new text begin 2008new text end , a district's transition aid equals its
transition revenue minus its transition levy times the ratio of the actual amount levied to
the permitted levy.

Sec. 8.

Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:


Subd. 34.

Basic alternative teacher compensation aid.

(a) deleted text begin For fiscal year 2006,
the basic alternative teacher compensation aid for a school district or an intermediate
school district with a plan approved under section 122A.414, subdivision 2b, equals the
alternative teacher compensation revenue under section 122A.415, subdivision 1. The
basic alternative teacher compensation aid for a charter school with an approved plan
under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous school year, or on October 1 of the current
fiscal year for a charter school in the first year of operation.
deleted text end

deleted text begin (b)deleted text end For fiscal year 2007 and later, the basic alternative teacher compensation aid for
a school district with a plan approved under section 122A.414, subdivision 2b, equals
73.1 percent of the alternative teacher compensation revenue under section 122A.415,
subdivision 1
. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b
, if the recipient is a charter school, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding deleted text begin paragraphsdeleted text end new text begin paragraph new text end (a) deleted text begin and (b)deleted text end and section 122A.415,
subdivision 1
, the state total basic alternative teacher compensation aid entitlement
must not exceed deleted text begin $19,329,000 for fiscal year 2006 anddeleted text end $75,636,000 for fiscal deleted text begin yeardeleted text end new text begin years
new text end 2007 and deleted text begin laterdeleted text end new text begin 2008new text end . The commissioner must limit the amount of alternative teacher
compensation aid approved under section 122A.415 so as not to exceed these limits.

new text begin (c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1,
the state total basic alternative teacher compensation aid entitlement must not exceed
$99,135,000 for fiscal year 2009, $100,093,000 for fiscal year 2010, and $99,656,000 for
fiscal year 2011 and later. The commissioner must limit the amount of alternative teacher
compensation aid approved under section 122A.415 so as not to exceed these limits.
new text end

Sec. 9.

Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:


Subd. 35.

Alternative teacher compensation levy.

For fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2007
and deleted text begin laterdeleted text end new text begin 2008new text end , the alternative teacher compensation levy for a district receiving basic
alternative teacher compensation aid equals the product of (1) the difference between the
district's alternative teacher compensation revenue and the district's basic alternative
teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
net tax capacity per adjusted pupil unit to $5,913.

Sec. 10.

Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:


Subd. 36.

Alternative teacher compensation aid.

(a) For fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2007
and deleted text begin laterdeleted text end new text begin 2008new text end , a district's alternative teacher compensation equalization aid equals the
district's alternative teacher compensation revenue minus the district's basic alternative
teacher compensation aid minus the district's alternative teacher compensation levy. If a
district does not levy the entire amount permitted, the alternative teacher compensation
equalization aid must be reduced in proportion to the actual amount levied.

(b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.

Sec. 11.

Minnesota Statutes 2006, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 37. new text end

new text begin Secondary alternative teacher compensation aid. new text end

new text begin Any school district
that levied under subdivision 35 for alternative compensation revenue in taxes payable in
2007 is eligible for secondary alternative teacher compensation aid. For fiscal year 2009
and later, an eligible school district's secondary alternative teacher compensation aid
equals the district's alternative teacher compensation revenue minus the district's basic
alternative teacher compensation aid. If an eligible district did not levy the entire amount
permitted in taxes payable in 2007 under subdivision 35, the secondary alternative teacher
compensation aid must not exceed the amount per pupil that the district levied in that year.
new text end

Sec. 12.

Minnesota Statutes 2006, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 38. new text end

new text begin Alternative teacher compensation revenue. new text end

new text begin A district's alternative
teacher compensation revenue equals the sum of the district's basic alternative teacher
compensation aid and the district's secondary alternative teacher compensation aid.
new text end

Sec. 13.

Minnesota Statutes 2006, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin Consolidated tax rate. new text end

new text begin The commissioner must establish the consolidated
tax rate by July 1 of each year for levies payable in the following year. The consolidated
tax capacity rate must be a rate, rounded up to the nearest hundredth of a percent, that,
when applied to the adjusted net tax capacity for all districts, raises the amount specified
in this subdivision. The consolidated tax rate must be the rate that raises $244,937,000 for
fiscal year 2009, $262,293,000 for fiscal year 2010, and $277,324,000 for fiscal year 2011
and later years. The consolidated tax rate may not be changed due to changes or corrections
made to a district's adjusted net tax capacity after the tax rate has been established.
new text end

Sec. 14.

Minnesota Statutes 2006, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3b. new text end

new text begin Consolidated levy. new text end

new text begin To obtain general education revenue, a district may
levy an amount not to exceed the consolidated tax rate times the adjusted net tax capacity
of the district for the preceding year. If the amount of the consolidated levy would exceed
the general education revenue, the consolidated levy must be determined according
to subdivision 3c.
new text end

Sec. 15.

Minnesota Statutes 2006, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3c. new text end

new text begin Consolidated levy; districts off the formula. new text end

new text begin (a) If the amount of the
consolidated levy for a district exceeds the district's general education revenue, the amount
of the consolidated levy must be limited to the following:
new text end

new text begin (1) the district's general education revenue; minus
new text end

new text begin (2) payments made for the same school year according to section 126C.21,
subdivision 3.
new text end

new text begin (b) A levy made according to this subdivision shall also be construed to be the levy
made according to subdivision 3b.
new text end

Sec. 16.

Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:


Subd. 4.

General education aid.

(a) deleted text begin For fiscal year 2006, a district's general
education aid is the sum of the following amounts:
deleted text end

deleted text begin (1) general education revenue, excluding equity revenue, total operating capital, and
transition revenue;
deleted text end

deleted text begin (2) operating capital aid according to section 126C.10, subdivision 13b;
deleted text end

deleted text begin (3) equity aid according to section 126C.10, subdivision 30;
deleted text end

deleted text begin (4) transition aid according to section 126C.10, subdivision 33;
deleted text end

deleted text begin (5) shared time aid according to section 126C.01, subdivision 7;
deleted text end

deleted text begin (6) referendum aid according to section 126C.17; and
deleted text end

deleted text begin (7) online learning aid according to section 124D.096.
deleted text end

deleted text begin (b)deleted text end For fiscal deleted text begin yeardeleted text end new text begin years new text end 2007 and deleted text begin laterdeleted text end new text begin 2008new 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; and

(8) online learning aid according to section 124D.096.

new text begin (b) For fiscal year 2009 and later, a district's general education aid is the sum of
the following amounts:
new text end

new text begin (1) the product of:
new text end

new text begin (i) the difference between the general education revenue and the consolidated levy;
times
new text end

new text begin (ii) the ratio of the actual amount levied to the permitted levy;
new text end

new text begin (2) shared time aid according to section 126C.01, subdivision 7;
new text end

new text begin (3) referendum aid according to section 126C.17; and
new text end

new text begin (4) online learning aid according to section 124D.096.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33,
35, and 36,
new text end new text begin are repealed for revenue for fiscal year 2009.
new text end