SF 1989

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education; creating marginal cost pupil 
  1.3             units; adjusting the general education and referendum 
  1.4             formulas by marginal cost pupil units; amending 
  1.5             Minnesota Statutes 1998, sections 120B.05; 126C.05, 
  1.6             subdivision 5, and by adding a subdivision; 126C.10, 
  1.7             subdivisions 2, 5, 9, 13, 18, 19, and 20; 126C.12, 
  1.8             subdivision 1; and 126C.17, subdivisions 1, 2, 4, 5, 
  1.9             and 6. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 120B.05, is 
  1.12  amended to read: 
  1.13     120B.05 [GRADUATION STANDARDS IMPLEMENTATION REVENUE.] 
  1.14     (a) A school district's graduation standards implementation 
  1.15  revenue is equal to $52 times its resident pupil units for 
  1.16  fiscal year 1999 plus $14 times its resident pupil units for 
  1.17  fiscal year 1999 if the district implements the graduation rule 
  1.18  under section 120B.03, subdivision 1, paragraph (b), and.  A 
  1.19  school district's graduation standards implementation revenue is 
  1.20  equal to $43 per times its marginal cost pupil unit for all 
  1.21  districts units for fiscal year 2000 and later.  Graduation 
  1.22  standards implementation revenue is reserved and must be used 
  1.23  according to paragraphs (b) and (c). 
  1.24     (b) For fiscal year 1999, revenue must be reserved for 
  1.25  programs according to clauses (1) to (3). 
  1.26     (1) At least $20 per resident pupil unit plus $14 per 
  1.27  resident pupil unit for a district that implements the 
  2.1   graduation rule under section 120B.03, subdivision 1, paragraph 
  2.2   (b), must be allocated to school sites in proportion to the 
  2.3   number of students enrolled at each school site weighted 
  2.4   according to section 126C.05, subdivision 1, and is reserved for 
  2.5   programs designed to enhance the implementation of the 
  2.6   graduation rule through intensive staff development and 
  2.7   decentralized decision making. 
  2.8      (2) At least $5 per resident pupil unit is reserved for 
  2.9   gifted and talented programs that are integrated with the 
  2.10  graduation rule.  This aid must supplement, not supplant, money 
  2.11  spent on gifted and talented programs authorized under Laws 
  2.12  1997, First Special Session chapter 4, article 5, section 24. 
  2.13     (3) Remaining aid under this paragraph must be used: 
  2.14     (i) for technology purposes including wiring, network 
  2.15  connections, and other technology-related infrastructure 
  2.16  improvements; purchase or lease of computer software and 
  2.17  hardware to be used in classrooms and for instructional 
  2.18  purposes; purchase or lease of interactive television network 
  2.19  equipment and network support; purchase or lease of computer 
  2.20  software and hardware designed to support special needs 
  2.21  programming and limited English proficiency programming; network 
  2.22  and technical support; and purchase of textbooks and other 
  2.23  instructional materials; or 
  2.24     (ii) to reduce class size. 
  2.25     (c) For fiscal year 2000 and later, revenue must be 
  2.26  allocated to school sites in proportion to the number of 
  2.27  students enrolled at each school site weighted according to 
  2.28  section 126C.05, subdivision 1, and reserved for programs 
  2.29  designed to enhance the implementation of the graduation rule 
  2.30  through:  (1) staff development programs; (2) technology 
  2.31  purposes under paragraph (b), clause (3); (3) gifted and 
  2.32  talented programs; or (4) class size reduction programs based at 
  2.33  the school site. 
  2.34     (d) To the extent possible, school districts shall make 
  2.35  opportunities for graduation standards implementation available 
  2.36  to teachers employed by intermediate school districts.  If the 
  3.1   commissioner determines that the supplemental appropriation made 
  3.2   for this subdivision under Laws 1998, chapter 398, article 1, 
  3.3   section 40, subdivision 2, is in excess of the amount needed for 
  3.4   this subdivision, the commissioner shall make equal payments of 
  3.5   one-third of the excess to each intermediate school district for 
  3.6   the purpose of paragraph (a). 
  3.7      (e) A district that qualifies for the referendum allowance 
  3.8   reduction under section 126C.17, subdivision 12, and whose 
  3.9   referendum allowance under section 126C.17, subdivision 1, as 
  3.10  adjusted under section 126C.17, subdivisions 2 and 12, does not 
  3.11  exceed the referendum allowance limit under section 126C.17, 
  3.12  subdivision 2, clause (2), shall receive a graduation standards 
  3.13  implementation equity adjustment.  In fiscal year 1999, the 
  3.14  equity adjustment aid is equal to $34 per resident pupil unit.  
  3.15  In fiscal year 2000 and thereafter, the equity adjustment is 
  3.16  equal to $25 per resident marginal cost pupil unit. 
  3.17     Sec. 2.  Minnesota Statutes 1998, section 126C.05, 
  3.18  subdivision 5, is amended to read: 
  3.19     Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
  3.20  for a district means the sum of: 
  3.21     (1) the number of resident pupil units, according to 
  3.22  subdivision 1g, plus 
  3.23     (2) shared time pupil units, according to section 126C.01, 
  3.24  subdivision 6, plus 
  3.25     (3) pupil units according to subdivision 1 for pupils 
  3.26  attending the district for which general education aid 
  3.27  adjustments are made according to section 127A.47, subdivision 
  3.28  7; minus 
  3.29     (4) pupil units according to subdivision 1 for resident 
  3.30  pupils attending other districts for which general education aid 
  3.31  adjustments are made according to section 127A.47, subdivision 7.
  3.32     (b) For the purpose of revenue, adjusted pupil units shall 
  3.33  be equal to the sum of the calculation in paragraph (a) times 
  3.34  .77 for the current school year and the sum of the calculation 
  3.35  in paragraph (a) times .23 for the previous school year. 
  3.36     Sec. 3.  Minnesota Statutes 1998, section 126C.05, is 
  4.1   amended by adding a subdivision to read: 
  4.2      Subd. 18.  [MARGINAL COST PUPIL UNIT.] "Marginal cost pupil 
  4.3   unit" means the sum of .77 times the pupil units defined in 
  4.4   section 126C.05, subdivision 1, for the current school year and 
  4.5   .23 times the pupil units for the previous school year. 
  4.6      Sec. 4.  Minnesota Statutes 1998, section 126C.10, 
  4.7   subdivision 2, is amended to read: 
  4.8      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  4.9   district equals the formula allowance times the resident 
  4.10  marginal cost pupil units for the school year.  The formula 
  4.11  allowance for fiscal year 1997 is $3,505.  The formula allowance 
  4.12  for fiscal year 1998 is $3,581 and the formula allowance for 
  4.13  fiscal year 1999 and fiscal year 2000 is $3,530.  The formula 
  4.14  allowance for fiscal year 2001 and subsequent fiscal years is 
  4.15  $3,597. 
  4.16     Sec. 5.  Minnesota Statutes 1998, section 126C.10, 
  4.17  subdivision 5, is amended to read: 
  4.18     Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] The training 
  4.19  and experience revenue for each district equals the greater of 
  4.20  zero or the result of the following computation:  
  4.21     (1) subtract .8 from the training and experience index; 
  4.22     (2) multiply the result in clause (1) by the product of 
  4.23  $660 times the resident marginal cost pupil units for the school 
  4.24  year.  
  4.25     Sec. 6.  Minnesota Statutes 1998, section 126C.10, 
  4.26  subdivision 9, is amended to read: 
  4.27     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
  4.28  supplemental revenue allowance for fiscal year 1994 and later 
  4.29  fiscal years equals the district's supplemental revenue for 
  4.30  fiscal year 1993 divided by the district's 1992-1993 resident 
  4.31  pupil units. 
  4.32     (b) A district's supplemental revenue allowance is reduced 
  4.33  for fiscal year 1995 and later according to subdivision 12. 
  4.34     (c) A district's supplemental revenue equals the 
  4.35  supplemental revenue allowance, if any, times its resident 
  4.36  marginal cost pupil units for that year.  
  5.1      (d) A district may cancel its supplemental revenue by 
  5.2   notifying the commissioner of education prior to June 30, 1994.  
  5.3   A district that is reorganizing under section 122A.35, 123A.46, 
  5.4   or 123A.48 may cancel its supplemental revenue by notifying the 
  5.5   commissioner of children, families, and learning before July 1 
  5.6   of the year of the reorganization.  If a district cancels its 
  5.7   supplemental revenue according to this paragraph, its 
  5.8   supplemental revenue allowance for fiscal year 1993 for purposes 
  5.9   of subdivision 12 and section 124A.03, subdivision 3b, equals 
  5.10  zero. 
  5.11     Sec. 7.  Minnesota Statutes 1998, section 126C.10, 
  5.12  subdivision 13, is amended to read: 
  5.13     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
  5.14  fiscal year 1999 2000 and thereafter, total operating capital 
  5.15  revenue for a district equals the amount determined under 
  5.16  paragraph (b) or (c), plus $68 times the resident marginal cost 
  5.17  pupil units for the school year.  The revenue must be placed in 
  5.18  a reserved account in the general fund and may only be used 
  5.19  according to subdivision 14. 
  5.20     (b) For fiscal years 1999 2000 and later, capital revenue 
  5.21  for a district equals $100 times the district's maintenance cost 
  5.22  index times its resident marginal cost pupil units for the 
  5.23  school year. 
  5.24     (c) For 1996 2000 and later fiscal years, the previous 
  5.25  formula revenue for a district equals $128 times its resident 
  5.26  marginal cost pupil units for the school year. 
  5.27     (d) For fiscal years 1998 2000 and later, the revenue for a 
  5.28  district that operates a program under section 124D.128, is 
  5.29  increased by an amount equal to $30 times the number of resident 
  5.30  marginal cost pupil units at the site where the program is 
  5.31  implemented. 
  5.32     Sec. 8.  Minnesota Statutes 1998, section 126C.10, 
  5.33  subdivision 18, is amended to read: 
  5.34     Subd. 18.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 
  5.35  A district's transportation sparsity allowance equals the 
  5.36  greater of zero or the result of the following computation: 
  6.1      (i) Multiply the formula allowance according to subdivision 
  6.2   2, by .1469. 
  6.3      (ii) Multiply the result in clause (i) by the district's 
  6.4   sparsity index raised to the 26/100 power. 
  6.5      (iii) Multiply the result in clause (ii) by the district's 
  6.6   density index raised to the 13/100 power. 
  6.7      (iv) Multiply the formula allowance according to 
  6.8   subdivision 2, by .0485. 
  6.9      (v) Subtract the result in clause (iv) from the result in 
  6.10  clause (iii). 
  6.11     (b) Transportation sparsity revenue is equal to the 
  6.12  transportation sparsity allowance times the resident marginal 
  6.13  cost pupil units. 
  6.14     Sec. 9.  Minnesota Statutes 1998, section 126C.10, 
  6.15  subdivision 19, is amended to read: 
  6.16     Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
  6.17  transportation transition allowance for fiscal year 1998 2000 
  6.18  and later equals the result of the following: 
  6.19     (1) if the result in subdivision 18, paragraph (a), clause 
  6.20  (iii), for fiscal year 1998 is less than the fiscal year 1996 
  6.21  base allowance, the transportation transition allowance equals 
  6.22  the fiscal year 1996 base allowance minus the result in 
  6.23  subdivision 18, paragraph (a), clause (iii); or 
  6.24     (2) if the result in subdivision 18, paragraph (a), clause 
  6.25  (iii), for fiscal year 1998 and later is greater than or equal 
  6.26  to the fiscal year 1996 base allowance, the transportation 
  6.27  transition allowance equals zero. 
  6.28     (b) A district's compensatory transition allowance equals 
  6.29  the greater of zero or the difference between:  
  6.30     (1) the amount of compensatory revenue the district would 
  6.31  have received under subdivision 3 for fiscal year 1998 computed 
  6.32  using a basic formula allowance of $3,281; and 
  6.33     (2) the amount the district receives under subdivision 3; 
  6.34  divided by 
  6.35     (3) the district's actual marginal cost pupil units for 
  6.36  fiscal year 1998 2000. 
  7.1      (c) A district's cooperation transition allowance for 
  7.2   fiscal year 2001 and later equals the greater of zero or the 
  7.3   difference between:  
  7.4      (1) $25,000; and 
  7.5      (2) $67 times the district's resident marginal cost pupil 
  7.6   units for fiscal year 2001. 
  7.7      (d) A district's transition allowance for fiscal year 1999 
  7.8   is equal to the sum of its transportation transition allowance 
  7.9   and its compensatory transition allowance.  A district's 
  7.10  transition allowance for fiscal year 2000 and thereafter is 
  7.11  equal to the sum of its transportation transition allowance, its 
  7.12  compensatory transition allowance, and its cooperation 
  7.13  transition allowance. 
  7.14     Sec. 10.  Minnesota Statutes 1998, section 126C.10, 
  7.15  subdivision 20, is amended to read: 
  7.16     Subd. 20.  [TRANSITION REVENUE ADJUSTMENT.] A district's 
  7.17  transition revenue adjustment equals the district's transition 
  7.18  allowance times the resident marginal cost pupil units for the 
  7.19  school year. 
  7.20     Sec. 11.  Minnesota Statutes 1998, section 126C.12, 
  7.21  subdivision 1, is amended to read: 
  7.22     Subdivision 1.  [REVENUE.] Of a district's general 
  7.23  education revenue an amount equal to the sum of the number of 
  7.24  elementary fund balance pupils adjusted pupil units in average 
  7.25  daily membership defined in section 126C.05, subdivision 5, and 
  7.26  one-half of the number of kindergarten fund balance pupils 
  7.27  adjusted pupil units in average daily membership as defined in 
  7.28  section 126C.05, subdivision 5, times .06 for fiscal year 1995 
  7.29  and thereafter times the formula allowance must be reserved 
  7.30  according to this section. 
  7.31     Sec. 12.  Minnesota Statutes 1998, section 126C.17, 
  7.32  subdivision 1, is amended to read: 
  7.33     Subdivision 1.  [REFERENDUM ALLOWANCE.] A district's 
  7.34  referendum revenue allowance equals the referendum revenue 
  7.35  authority for that year divided by its resident marginal cost 
  7.36  pupil units for that school year. 
  8.1      Sec. 13.  Minnesota Statutes 1998, section 126C.17, 
  8.2   subdivision 2, is amended to read: 
  8.3      Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
  8.4   subdivision 1, a district's referendum allowance must not exceed 
  8.5   the greater of:  
  8.6      (1) the district's referendum allowance for fiscal year 
  8.7   1994; 
  8.8      (2) 25 percent of the formula allowance minus $300 for 
  8.9   fiscal year 1997 and later; or 
  8.10     (3) for a newly reorganized district created after July 1, 
  8.11  1994, the sum of the referendum revenue authority for the 
  8.12  reorganizing districts for the fiscal year preceding the 
  8.13  reorganization, divided by the sum of the resident marginal cost 
  8.14  pupil units of the reorganizing districts for the fiscal year 
  8.15  preceding the reorganization. 
  8.16     Sec. 14.  Minnesota Statutes 1998, section 126C.17, 
  8.17  subdivision 4, is amended to read: 
  8.18     Subd. 4.  [TOTAL REFERENDUM REVENUE.] The total referendum 
  8.19  revenue for each district equals the district's referendum 
  8.20  allowance times the resident marginal cost pupil units for the 
  8.21  school year. 
  8.22     Sec. 15.  Minnesota Statutes 1998, section 126C.17, 
  8.23  subdivision 5, is amended to read: 
  8.24     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] A district's 
  8.25  referendum equalization revenue equals $350 times the district's 
  8.26  resident marginal cost pupil units for that year. 
  8.27     Referendum equalization revenue must not exceed a 
  8.28  district's total referendum revenue for that year. 
  8.29     Sec. 16.  Minnesota Statutes 1998, section 126C.17, 
  8.30  subdivision 6, is amended to read: 
  8.31     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
  8.32  year 1999 2000 and thereafter, a district's referendum 
  8.33  equalization levy for a referendum levied against the referendum 
  8.34  market value of all taxable property as defined in section 
  8.35  126C.01, subdivision 3, equals the district's referendum 
  8.36  equalization revenue times the lesser of one or the ratio of the 
  9.1   district's referendum market value per resident marginal cost 
  9.2   pupil unit to $476,000. 
  9.3      (b) For fiscal year 1999 2000 and thereafter, a district's 
  9.4   referendum equalization levy for a referendum levied against the 
  9.5   net tax capacity of all taxable property equals the district's 
  9.6   referendum equalization revenue times the lesser of one or the 
  9.7   ratio of the district's adjusted net tax capacity per resident 
  9.8   marginal cost pupil unit to $10,000.