SF 1643

as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 09:13am

A bill for an act
relating to education finance; modifying the calculation of compensation revenue
pupil units; amending Minnesota Statutes 2014, section 126C.05, subdivision 3.

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

Section 1.

Minnesota Statutes 2014, section 126C.05, subdivision 3, is amended to read:

Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units
for fiscal year 1998 and thereafter must be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each building in a
district equals the product of 100 times the ratio of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free
lunch plus one-half of the pupils eligible to receive reduced priced lunch on October
1 of the previous fiscal year; to

(2) the number of pupils enrolled in the building on October 1 of the previous fiscal
year.

(b) The compensation revenue pupil weighting factor for a building equals the
lesser of one or the quotient obtained by dividing the building's compensation revenue
concentration percentage by 80.0.

(c) The new text begin initial new text end compensation revenue pupil units for a building equals the product of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free
lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1
of the previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the building; times

(3) .60.

(d) new text begin For fiscal year 2016 and later, the declining compensation revenue pupil units
for a building equal the greater of zero or (1) the sum of the initial compensation revenue
pupil units calculated for the building for the current year and each of the two previous
fiscal years, divided by three; minus (2) the initial compensation revenue pupil units
for the building calculated for the current fiscal year. For a charter school or contracted
alternative program in the first or second year of operation, declining compensation
revenue pupil units equal zero.
new text end

new text begin (e) The compensation revenue pupil units for a building equals the sum of the pupil
units calculated under paragraphs (c) and (d).
new text end

new text begin (f) new text end Notwithstanding paragraphs (a) to (c), for charter schools and contracted
alternative programs in the first year of operation, new text begin initial new text end compensation revenue pupil units
shall be computed using data for the current fiscal year. If the charter school or contracted
alternative program begins operation after October 1, new text begin initial new text end compensatory revenue pupil
units shall be computed based on pupils enrolled on an alternate date determined by the
commissioner, and the new text begin initial new text end compensation revenue pupil units shall be prorated based on
the ratio of the number of days of student instruction to 170 days.

deleted text begin (e) deleted text end new text begin (g) new text end The percentages in this subdivision must be based on the count of individual
pupils and not on a building average or minimum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2016 and
later.
new text end