SF 1077

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

A bill for an act
relating to education; providing for school district operating cost differential
revenue; amending Minnesota Statutes 2006, sections 126C.01, by adding a
subdivision; 126C.10, by adding a subdivision; 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 2006, section 126C.01, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Operating cost differential index. new text end

new text begin "Operating cost differential index"
means a measure of operating costs across Minnesota school districts. The index must be
determined according to section 126C.115.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008
and later.
new text end

Sec. 2.

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

new text begin Subd. 2c. new text end

new text begin Operating cost differential cost revenue. new text end

new text begin Operating cost differential
revenue for a district equals:
new text end

new text begin (1) the adjusted marginal cost pupil units for that year, times
new text end

new text begin (2) the formula allowance for that year, times
new text end

new text begin (3) the difference between the operating cost differential index for that year and one.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008
and later.
new text end

Sec. 3.

new text begin [126C.115] OPERATING COST DIFFERENTIAL INDEX.
new text end

new text begin Subdivision 1. new text end

new text begin Index. new text end

new text begin (a) For fiscal years 2008 and later, the state economist shall
develop an operating cost differential index. The operating cost differential index must
be developed by measuring the relative price level of houses in different regions in the
state using the house price index as calculated by the Office of Federal Housing Enterprise
Oversight. The operating cost differential index for each school district equals the greater
of one, or the number for that district's regional house price index divided by the state
regional average house price index. The state economist must calculate the operating cost
differential index each year using the most recent calculated house price index.
new text end

new text begin (b) At a minimum, the regions in paragraph (a) must include regions for the
metropolitan area, the St. Cloud area, the Duluth area, and the Rochester area. Regions
may otherwise be based on county borders or economic development regions.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008
and later.
new text end