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SF 422

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:43am

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 finance; prioritizing basic revenue funding; modifying
education finance formulas; amending Minnesota Statutes 2010, sections
124D.86, subdivision 3; 126C.10, subdivisions 3, 7, 8, 18; proposing coding for
new law in Minnesota Statutes, chapter 126C.

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

Section 1.

Minnesota Statutes 2010, section 124D.86, subdivision 3, is amended to
read:


Subd. 3.

Integration revenue.

Integration revenue equals the following amounts:

deleted text begin (1) for Independent School District No. 709, Duluth, $206 times the adjusted pupil
units for the school year;
deleted text end

deleted text begin (2) for Independent School District No. 625, St. Paul, $445 times the adjusted
pupil units for the school year;
deleted text end

deleted text begin (3) for Special School District No. 1, Minneapolis, the sum of $445 times the
adjusted pupil units for the school year and an additional $35 times the adjusted pupil units
for the school year that is provided entirely through a local levy;
deleted text end

deleted text begin (4)deleted text end new text begin (1)new text end for new text begin Independent School District No. 709, Duluth, Independent School
District No. 625, St. Paul, Special School District No. 1, Minneapolis, or
new text end a district deleted text begin not
listed in clause (1), (2), or (3),
deleted text end that must implement a plan under Minnesota Rules, parts
3535.0100 to 3535.0180, where the district's enrollment of protected students, as defined
under Minnesota Rules, part 3535.0110, exceeds 15 percent, the lesser ofnew text begin :
new text end

(i) the actual cost of implementing the plan during the fiscal year minus the aid
received under subdivision 6deleted text begin ,deleted text end new text begin ;new text end or

(ii) $129 times the adjusted pupil units for the school year;

deleted text begin (5)deleted text end new text begin (2)new text end for a district not listed in clause (1)deleted text begin , (2), (3), or (4),deleted text end that is required to
implement a plan according to the requirements of Minnesota Rules, parts 3535.0100 to
3535.0180, the lesser ofnew text begin :
new text end

(i) the actual cost of implementing the plan during the fiscal year minus the aid
received under subdivision 6deleted text begin ,deleted text end new text begin ;new text end or

(ii) $92 times the adjusted pupil units for the school yeardeleted text begin .deleted text end new text begin ; and
new text end

deleted text begin Any money received by districts in clauses (1) to (3) which exceeds the amount
received in fiscal year 2000 shall be subject to the budget requirements in subdivision
1a; and
deleted text end

deleted text begin (6)deleted text end new text begin (3)new text end for a member district of a multidistrict integration collaborative that files a
plan with the commissioner, but is not contiguous to a racially isolated district, integration
revenue equals the amount defined in clause deleted text begin (5)deleted text end new text begin (2)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2013 and later.
new text end

Sec. 2.

new text begin [126C.09] EDUCATION FUNDING POLICY.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin It is the policy of the legislature to prioritize the basic revenue
component of general education revenue and to minimize differences in total per student
general education revenue funding statewide.
new text end

new text begin Subd. 2. new text end

new text begin Additional state aid. new text end

new text begin In any fiscal year that the formulas determining state
appropriations for elementary and secondary education are being increased compared to
the previous fiscal year, no less than 90 percent of the increase shall be used to raise the
basic revenue formula allowance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2013 and later.
new text end

Sec. 3.

Minnesota Statutes 2010, section 126C.10, subdivision 3, is amended to read:


Subd. 3.

Compensatory education revenue.

(a) The compensatory education
revenue for each building in the district equals deleted text begin the formula allowancedeleted text end new text begin $5,124new text end minus $415
times the compensation revenue pupil units computed according to section 126C.05,
subdivision 3
. Revenue shall be paid to the district and must be allocated according to
section 126C.15, subdivision 2.

(b) When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the
alternative program for the prior school year.

(c) When the fiscal agent district for an area learning center changes prior to the start
of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2013 and later.
new text end

Sec. 4.

Minnesota Statutes 2010, section 126C.10, subdivision 7, is amended to read:


Subd. 7.

Secondary sparsity revenue.

(a) A district's secondary sparsity revenue
for a school year equals the sum of the results of the following calculation for each
qualifying high school in the district:

(1) deleted text begin the formula allowance for the school year,deleted text end new text begin $5,124new text end multiplied by

(2) the secondary average daily membership of pupils served in the high school,
multiplied by

(3) the quotient obtained by dividing 400 minus the secondary average daily
membership by 400 plus the secondary daily membership, multiplied by

(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
23 by ten.

(b) A newly formed district that is the result of districts combining under the
cooperation and combination program or consolidating under section 123A.48 must
receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
sparsity revenue the former districts had in the year prior to consolidation, increased for
any subsequent changes in the secondary sparsity formula.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2013 and later.
new text end

Sec. 5.

Minnesota Statutes 2010, section 126C.10, subdivision 8, is amended to read:


Subd. 8.

Elementary sparsity revenue.

A district's elementary sparsity revenue
equals the sum of the following amounts for each qualifying elementary school in the
district:

(1) deleted text begin the formula allowance for the year,deleted text end new text begin $5,124new text end multiplied by

(2) the elementary average daily membership of pupils served in the school,
multiplied by

(3) the quotient obtained by dividing 140 minus the elementary average daily
membership by 140 plus the average daily membership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2013 and later.
new text end

Sec. 6.

Minnesota Statutes 2010, section 126C.10, subdivision 18, is amended to read:


Subd. 18.

Transportation sparsity revenue allowance.

(a) A district's
transportation sparsity allowance equals the greater of zero or the result of the following
computation:

deleted text begin (i)deleted text end new text begin (1)new text end multiply deleted text begin the formula allowance according to subdivision 2,deleted text end new text begin $5,124new text end by .1469deleted text begin .deleted text end new text begin ;
new text end

deleted text begin (ii)deleted text end new text begin (2)new text end multiply the result in clause deleted text begin (i)deleted text end new text begin (1)new text end by the district's sparsity index raised to
the 26/100 powerdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (iii)deleted text end new text begin (3)new text end multiply the result in clause deleted text begin (ii)deleted text end new text begin (2)new text end by the district's density index raised to
the 13/100 powerdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (iv)deleted text end new text begin (4)new text end multiply deleted text begin the formula allowance according to subdivision 2,deleted text end new text begin $5,124new text end by
.0485deleted text begin .deleted text end new text begin ; and
new text end

deleted text begin (v)deleted text end new text begin (5)new text end subtract the result in clause deleted text begin (iv)deleted text end new text begin (4)new text end from the result in clause deleted text begin (iii)deleted text end new text begin (3)new text end .

(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
times the adjusted marginal cost pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2013 and later.
new text end