SF 412

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education; increasing the general 
  1.3             education formula allowance; increasing training and 
  1.4             experience revenue; lowering the referendum allowance 
  1.5             limit; equalizing referendum revenue; creating a 
  1.6             discretionary aid and levy program; limiting total 
  1.7             general education revenue; repealing supplemental 
  1.8             revenue; amending Minnesota Statutes 1994, sections 
  1.9             124A.03, subdivisions 1c and 1f; 124A.22, subdivisions 
  1.10            1, 2, and 4; 124A.24; and 273.1398, subdivision 1; 
  1.11            proposing coding for new law in Minnesota Statutes, 
  1.12            chapter 124A; repealing Minnesota Statutes 1994, 
  1.13            sections 122.531, subdivision 5a; and 124A.22, 
  1.14            subdivisions 8, 8a, 8b, and 9. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1994, section 124A.03, 
  1.17  subdivision 1c, is amended to read: 
  1.18     Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
  1.19  subdivision 1b, a district's referendum allowance must not 
  1.20  exceed the greater of:  
  1.21     (1) the district's referendum allowance for fiscal year 
  1.22  1994 1995; or 
  1.23     (2) 25 12.5 percent of the formula allowance for the fiscal 
  1.24  year 1995 and later for which it is attributable.  
  1.25     Sec. 2.  Minnesota Statutes 1994, section 124A.03, 
  1.26  subdivision 1f, is amended to read: 
  1.27     Subd. 1f.  [REFERENDUM EQUALIZATION REVENUE.] A district's 
  1.28  referendum equalization revenue equals $315 its referendum 
  1.29  allowance times the district's actual pupil units for that year. 
  1.30     Referendum equalization revenue must not exceed a 
  2.1   district's total referendum revenue for that year. 
  2.2      Sec. 3.  Minnesota Statutes 1994, section 124A.22, 
  2.3   subdivision 1, is amended to read: 
  2.4      Subdivision 1.  [GENERAL EDUCATION REVENUE.] The general 
  2.5   education revenue for each district equals the sum of the 
  2.6   district's basic revenue, compensatory education revenue, 
  2.7   training and experience revenue, secondary sparsity revenue, and 
  2.8   elementary sparsity revenue, and supplemental revenue. 
  2.9      Sec. 4.  Minnesota Statutes 1994, section 124A.22, 
  2.10  subdivision 2, is amended to read: 
  2.11     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  2.12  district equals the formula allowance times the actual pupil 
  2.13  units for the school year.  The formula allowance for fiscal 
  2.14  years 1993 and 1994 is $3,050.  The formula allowance for fiscal 
  2.15  year 1995 and subsequent fiscal years is $3,150.  The formula 
  2.16  allowance is $3,400 for fiscal year 1996 and $3,500 for fiscal 
  2.17  year 1997 and subsequent fiscal years. 
  2.18     Sec. 5.  Minnesota Statutes 1994, section 124A.22, 
  2.19  subdivision 4, is amended to read: 
  2.20     Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] (a) The 
  2.21  previous formula training and experience revenue for each 
  2.22  district equals the greater of zero or the result of the 
  2.23  following computation:  
  2.24     (1) subtract 1.6 from the training and experience index; 
  2.25     (2) multiply the result in clause (1) by the product of 
  2.26  $700 times the actual pupil units for the school year. 
  2.27     (b) The maximum training and experience revenue for each 
  2.28  district equals the greater of zero or the result of the 
  2.29  following computation:  
  2.30     (1) subtract .8 .75 from the training and experience index; 
  2.31     (2) multiply the result in clause (1) by the product of 
  2.32  $660 $1,600 times the actual pupil units for the school year.  
  2.33     (c) For fiscal year 1994, the training and experience 
  2.34  revenue for each district equals the district's previous formula 
  2.35  training and experience revenue plus one-half of the difference 
  2.36  between the district's maximum training and experience revenue 
  3.1   and the district's previous formula training and experience 
  3.2   revenue.  
  3.3      (d) For fiscal year 1995, the training and experience 
  3.4   revenue for each district equals the district's previous formula 
  3.5   training and experience revenue plus three-fourths of the 
  3.6   difference between the district's maximum training and 
  3.7   experience revenue and the district's previous formula training 
  3.8   and experience revenue. 
  3.9      (e) (d) For fiscal year 1996 and thereafter, the training 
  3.10  and experience revenue for each district equals the district's 
  3.11  maximum training and experience revenue.  
  3.12     Sec. 6.  Minnesota Statutes 1994, section 124A.24, is 
  3.13  amended to read: 
  3.14     124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
  3.15     If a district's general education levy is determined 
  3.16  according to section 124A.23, subdivision 3, an amount must be 
  3.17  deducted from state aid authorized in this chapter and chapters 
  3.18  124 and 124B, receivable for the same school year, and from 
  3.19  other state payments receivable for the same school year 
  3.20  authorized in chapter 273.  The aid in section 124.646 must not 
  3.21  be reduced. 
  3.22     The amount of the deduction equals the difference between: 
  3.23     (1) the general education tax rate, according to section 
  3.24  124A.23, times the district's adjusted net tax capacity used to 
  3.25  determine the general education aid for the same school year; 
  3.26  and 
  3.27     (2) the district's general education revenue, excluding 
  3.28  training and experience revenue and supplemental revenue, for 
  3.29  the same school year, according to section 124A.22. 
  3.30     Sec. 7.  [124A.32] [DISCRETIONARY REVENUE.] 
  3.31     Subdivision 1.  [PURPOSE.] Property wealth-based revenue 
  3.32  disparities in the Minnesota school finance system result in 
  3.33  disparities in the educational opportunities provided to 
  3.34  children in different school districts.  These disparities place 
  3.35  school children on an unequal footing dependent upon the 
  3.36  property wealth of their school districts in their pursuit of 
  4.1   higher education, job opportunities, and other competitive 
  4.2   aspects of adult life.  It is the purpose of the discretionary 
  4.3   equity levy and aid program to eliminate the significant 
  4.4   advantage higher wealth districts have over lower wealth 
  4.5   districts in areas of programs such as curriculum, summer 
  4.6   schools, advanced placement, gifted and talented, access to 
  4.7   computers, and extracurricular activities. 
  4.8      Subd. 2.  [DISCRETIONARY REVENUE.] A school district's 
  4.9   discretionary revenue equals 12.5 percent of basic revenue under 
  4.10  section 124A.22, subdivision 2, for that year.  A school 
  4.11  district is eligible for discretionary revenue if the school 
  4.12  board adopts an annual resolution to that effect.  A school 
  4.13  district may convert its referendum revenue authority to 
  4.14  discretionary revenue.  However, the sum of a district's 
  4.15  discretionary revenue and its referendum revenue cannot exceed 
  4.16  25 percent of basic revenue for that year.  A district is 
  4.17  authorized to levy for any remaining referendum revenue 
  4.18  authority approved before July 1, 1995, under section 124A.03. 
  4.19     Subd. 3.  [DISCRETIONARY LEVY.] Discretionary levy equals 
  4.20  the discretionary revenue times the lesser of one or the ratio 
  4.21  of: 
  4.22     (1) adjusted net tax capacity divided by the number of 
  4.23  pupil units for the year the revenue is attributable, to 
  4.24     (2) the equalizing factor. 
  4.25     Subd. 4.  [DISCRETIONARY AID.] Discretionary aid equals 
  4.26  discretionary revenue minus discretionary levy.  If a district 
  4.27  levies less than the authorized amount, the aid must be 
  4.28  proportionately reduced. 
  4.29     Sec. 8.  [124A.33] [GENERAL EDUCATION REVENUE LIMIT.] 
  4.30     Subdivision 1.  [REVENUE LIMIT.] The sum of (1) general 
  4.31  education basic revenue under section 124A.22, subdivision 2, (2)
  4.32  general education training and experience revenue under section 
  4.33  124A.22, subdivision 4, (3) referendum revenue under section 
  4.34  124A.03, and (4) discretionary revenue under section 124A.32, 
  4.35  must not exceed $4,800 per pupil unit for fiscal year 1996 and 
  4.36  $4,900 for fiscal year 1997.  A district shall reduce its 
  5.1   referendum revenue authority under section 124A.03 by the amount 
  5.2   by which this limit is exceeded. 
  5.3      Subd. 2.  [EXCEPTION.] If a district's revenue in fiscal 
  5.4   year 1995 exceeds the limit established in subdivision 1, the 
  5.5   district may continue to receive that amount of general 
  5.6   education revenue and referendum revenue per pupil unit for 
  5.7   fiscal year 1996 and following fiscal years. 
  5.8      Sec. 9.  Minnesota Statutes 1994, section 273.1398, 
  5.9   subdivision 1, is amended to read: 
  5.10     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
  5.11  terms defined in this subdivision have the meanings given them. 
  5.12     (b) "Unique taxing jurisdiction" means the geographic area 
  5.13  subject to the same set of local tax rates. 
  5.14     (c) "Net tax capacity" means the product of (i) the 
  5.15  appropriate net class rates for the year in which the aid is 
  5.16  payable, except that for aid payable in 1993 the class rate 
  5.17  applicable to class 4a shall be 3.5 percent; and the class rate 
  5.18  applicable to class 4b shall be 2.65 percent; and for aid 
  5.19  payable in 1994 the class rate applicable to class 4b shall be 
  5.20  2.4 percent and the class rate applicable to class 2a property 
  5.21  over $115,000 market value and less than 320 acres is 1.15 
  5.22  percent, and (ii) estimated market values for the assessment two 
  5.23  years prior to that in which aid is payable.  The exclusion of 
  5.24  the value of the house, garage, and one acre from the first tier 
  5.25  of agricultural homestead property must not be considered in 
  5.26  determining net tax capacity for purposes of this paragraph for 
  5.27  aids payable in 1994.  "Total net tax capacity" means the net 
  5.28  tax capacities for all property within the unique taxing 
  5.29  jurisdiction.  The total net tax capacity used shall be reduced 
  5.30  by the sum of (1) the unique taxing jurisdiction's net tax 
  5.31  capacity of commercial industrial property as defined in section 
  5.32  473F.02, subdivision 3, multiplied by the ratio determined 
  5.33  pursuant to section 473F.08, subdivision 6, for the 
  5.34  municipality, as defined in section 473F.02, subdivision 8, in 
  5.35  which the unique taxing jurisdiction is located, (2) the net tax 
  5.36  capacity of the captured value of tax increment financing 
  6.1   districts as defined in section 469.177, subdivision 2, and (3) 
  6.2   the net tax capacity of transmission lines deducted from a local 
  6.3   government's total net tax capacity under section 273.425.  For 
  6.4   purposes of determining the net tax capacity of property 
  6.5   referred to in clauses (1), (2), and (3), the net tax capacity 
  6.6   shall be multiplied by the ratio of the highest class rate for 
  6.7   class 3a property for taxes payable in the year in which the aid 
  6.8   is payable to the highest class rate for class 3a property in 
  6.9   the prior year.  Net tax capacity cannot be less than zero. 
  6.10     (d) "Previous net tax capacity" means the product of the 
  6.11  appropriate net class rates for the year previous to the year in 
  6.12  which the aid is payable, and estimated market values for the 
  6.13  assessment two years prior to that in which aid is payable.  
  6.14  "Total previous net tax capacity" means the previous net tax 
  6.15  capacities for all property within the unique taxing 
  6.16  jurisdiction.  The total previous net tax capacity shall be 
  6.17  reduced by the sum of (1) the unique taxing jurisdiction's 
  6.18  previous net tax capacity of commercial-industrial property as 
  6.19  defined in section 473F.02, subdivision 3, multiplied by the 
  6.20  ratio determined pursuant to section 473F.08, subdivision 6, for 
  6.21  the municipality, as defined in section 473F.02, subdivision 8, 
  6.22  in which the unique taxing jurisdiction is located, (2) the 
  6.23  previous net tax capacity of the captured value of tax increment 
  6.24  financing districts as defined in section 469.177, subdivision 
  6.25  2, and (3) the previous net tax capacity of transmission lines 
  6.26  deducted from a local government's total net tax capacity under 
  6.27  section 273.425.  Previous net tax capacity cannot be less than 
  6.28  zero. 
  6.29     (e) "Equalized market values" are market values that have 
  6.30  been equalized by dividing the assessor's estimated market value 
  6.31  for the second year prior to that in which the aid is payable by 
  6.32  the assessment sales ratios determined by class in the 
  6.33  assessment sales ratio study conducted by the department of 
  6.34  revenue pursuant to section 124.2131 in the second year prior to 
  6.35  that in which the aid is payable.  The equalized market values 
  6.36  shall equal the unequalized market values divided by the 
  7.1   assessment sales ratio. 
  7.2      (f) "Equalized school levies" means the amounts levied for: 
  7.3      (1) general education under section 124A.23, subdivision 2; 
  7.4      (2) supplemental revenue under section 124A.22, subdivision 
  7.5   8a; 
  7.6      (3) capital expenditure facilities revenue under section 
  7.7   124.243, subdivision 3; 
  7.8      (4) (3) capital expenditure equipment revenue under section 
  7.9   124.244, subdivision 2; 
  7.10     (5) (4) basic transportation under section 124.226, 
  7.11  subdivision 1; and 
  7.12     (6) (5) referendum revenue under section 124A.03. 
  7.13     (g) "Current local tax rate" means the quotient derived by 
  7.14  dividing the taxes levied within a unique taxing jurisdiction 
  7.15  for taxes payable in the year prior to that for which aids are 
  7.16  being calculated by the total previous net tax capacity of the 
  7.17  unique taxing jurisdiction.  
  7.18     (h) For purposes of calculating and allocating homestead 
  7.19  and agricultural credit aid authorized pursuant to subdivision 2 
  7.20  and the disparity reduction aid authorized in subdivision 3, 
  7.21  "gross taxes levied on all properties," "gross taxes," or "taxes 
  7.22  levied" means the total net tax capacity based taxes levied on 
  7.23  all properties except that levied on the captured value of tax 
  7.24  increment districts as defined in section 469.177, subdivision 
  7.25  2, and that levied on the portion of commercial industrial 
  7.26  properties' assessed value or gross tax capacity, as defined in 
  7.27  section 473F.02, subdivision 3, subject to the areawide tax as 
  7.28  provided in section 473F.08, subdivision 6, in a unique taxing 
  7.29  jurisdiction.  "Gross taxes" are before any reduction for 
  7.30  disparity reduction aid but "taxes levied" are after any 
  7.31  reduction for disparity reduction aid.  Gross taxes levied or 
  7.32  taxes levied cannot be less than zero.  
  7.33     "Taxes levied" excludes equalized school levies. 
  7.34     (i) "Human services aids" means: 
  7.35     (1) aid to families with dependent children under sections 
  7.36  256.82, subdivision 1, and 256.935, subdivision 1; 
  8.1      (2) medical assistance under sections 256B.041, subdivision 
  8.2   5, and 256B.19, subdivision 1; 
  8.3      (3) general assistance medical care under section 256D.03, 
  8.4   subdivision 6; 
  8.5      (4) general assistance under section 256D.03, subdivision 
  8.6   2; 
  8.7      (5) work readiness under section 256D.03, subdivision 2; 
  8.8      (6) emergency assistance under section 256.871, subdivision 
  8.9   6; 
  8.10     (7) Minnesota supplemental aid under section 256D.36, 
  8.11  subdivision 1; 
  8.12     (8) preadmission screening and alternative care grants; 
  8.13     (9) work readiness services under section 256D.051; 
  8.14     (10) case management services under section 256.736, 
  8.15  subdivision 13; 
  8.16     (11) general assistance claims processing, medical 
  8.17  transportation and related costs; and 
  8.18     (12) medical assistance, medical transportation and related 
  8.19  costs. 
  8.20     (j) "Household adjustment factor" means the number of 
  8.21  households for the second most recent year preceding that in 
  8.22  which the aids are payable divided by the number of households 
  8.23  for the third most recent year.  The household adjustment factor 
  8.24  cannot be less than one.  
  8.25     (k) "Growth adjustment factor" means the household 
  8.26  adjustment factor in the case of counties.  In the case of 
  8.27  cities, towns, school districts, and special taxing districts, 
  8.28  the growth adjustment factor equals one.  The growth adjustment 
  8.29  factor cannot be less than one.  
  8.30     (l) For aid payable in 1992 and subsequent years, 
  8.31  "homestead and agricultural credit base" means the previous 
  8.32  year's certified homestead and agricultural credit aid 
  8.33  determined under subdivision 2 less any permanent aid reduction 
  8.34  in the previous year to homestead and agricultural credit aid 
  8.35  under section 477A.0132, plus, for aid payable in 1992, fiscal 
  8.36  disparity homestead and agricultural credit aid under 
  9.1   subdivision 2b.  
  9.2      (m) "Net tax capacity adjustment" means (1) the total 
  9.3   previous net tax capacity minus the total net tax capacity, 
  9.4   multiplied by (2) the unique taxing jurisdiction's current local 
  9.5   tax rate.  The net tax capacity adjustment cannot be less than 
  9.6   zero. 
  9.7      (n) "Fiscal disparity adjustment" means the difference 
  9.8   between (1) a taxing jurisdiction's fiscal disparity 
  9.9   distribution levy under section 473F.08, subdivision 3, clause 
  9.10  (a), for taxes payable in the year prior to that for which aids 
  9.11  are being calculated, and (2) the same distribution levy 
  9.12  multiplied by the ratio of the highest class rate for class 3 
  9.13  property for taxes payable in the year prior to that for which 
  9.14  aids are being calculated to the highest class rate for class 3 
  9.15  property for taxes payable in the second prior year to that for 
  9.16  which aids are being calculated.  In the case of school 
  9.17  districts, the fiscal disparity distribution levy shall exclude 
  9.18  that part of the levy attributable to equalized school levies. 
  9.19     Sec. 10.  [REPEALER.] 
  9.20     Minnesota Statutes 1994, sections 122.531, subdivision 5a; 
  9.21  and 124A.22, subdivisions 8, 8a, 8b, and 9, are repealed July 1, 
  9.22  1995, for 1996-1997 and later school years. 
  9.23     Sec. 11.  [EFFECTIVE DATE.] 
  9.24     Sections 3, 4, and 6 are effective July 1, 1995.  Sections 
  9.25  1, 2, 5, and 7 are effective for revenue for fiscal year 1997.