SF 2959

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; reducing education property tax levies; eliminating
alternative compensation revenue from the general education program;
creating an alternative compensation aid program; amending Minnesota
Statutes 2004, sections 126C.10, subdivisions 29, 32; 126C.17, subdivision
6; Minnesota Statutes 2005 Supplement, sections 122A.415, subdivision 1;
126C.10, subdivision 13a; 126C.13, subdivision 4; proposing coding for new
law in Minnesota Statutes, chapter 122A; repealing Minnesota Statutes 2005
Supplement, section 126C.10, subdivisions 34, 35, 36.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 1,
is amended to read:

Subdivision 1.

deleted text begin Revenue deleted text end new text begin Aid new text end amount.

(a) new text begin In fiscal years 2006 and 2007, new text end a school
district, intermediate school district, school site, or charter school that meets the conditions
of section 122A.414 and submits an application approved by the commissioner is eligible
for alternative teacher compensation revenue new text begin under section 126C.10, subdivision 34. In
fiscal year 2008 and later, a school district, intermediate school district, school site, or
charter school that meets the conditions of section 122A.414, and submits an application
approved by the commissioner, is eligible for alternative teacher compensation revenue
aid under section 122A.416 new text end .

(b) For school district and intermediate school district applications, the commissioner
must consider only those applications to participate that are submitted jointly by a
district and the exclusive representative of the teachers. The application must contain an
alternative teacher professional pay system agreement that:

(1) implements an alternative teacher professional pay system consistent with
section 122A.414; and

(2) is negotiated and adopted according to the Public Employment Labor Relations
Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
district may enter into a contract for a term of two or four years.

new text begin In fiscal years 2006 and 2007, new text end alternative teacher compensation revenue new text begin , under
section 126C.10, subdivision 34, new text end for a qualifying school district or site in which the
school board and the exclusive representative of the teachers agree to place teachers in
the district or at the site on the alternative teacher professional pay system equals $260
times the number of pupils enrolled at the district or site on October 1 of the previous
fiscal year. new text begin For fiscal year 2008 and later, alternative teacher compensation revenue under
section 122A.416, for a qualifying school district or site in which the school board and the
exclusive representative of the teachers agree to place teachers in the district or at the site
on the alternative teacher professional pay system, equals $260 times the number of pupils
enrolled at the district or site on October 1 of the previous fiscal year. new text end Alternative teacher
compensation revenue for a qualifying intermediate school district must be calculated
under section 126C.10, subdivision 34, paragraphs (a) and (b) new text begin for fiscal years 2006 and
2007. Alternative teacher compensation aid for a qualifying intermediate school district
must be calculated under section 122A.416 for fiscal year 2008 and later new text end .

(c) For a newly combined or consolidated district, the revenue new text begin under section
126C.10, subdivision 34, in fiscal years 2006 and 2007, and the aid in fiscal year 2008 and
later, new text end shall be computed using the sum of pupils enrolled on October 1 of the previous
year in the districts entering into the combination or consolidation. The commissioner
may adjust the revenue new text begin or aid new text end computed for a site using prior year data to reflect changes
attributable to school closings, school openings, or grade level reconfigurations between
the prior year and the current year.

(d) The revenue new text begin in fiscal years 2006 and 2007, and aid in fiscal year 2008 and later,
new text end is available only to school districts, intermediate school districts, school sites, and charter
schools that fully implement an alternative teacher professional pay system by October 1
of the current school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately.
new text end

Sec. 2.

new text begin [122A.416] BASIC ALTERNATIVE TEACHER COMPENSATION AID.
new text end

new text begin (a) For fiscal year 2008 and later, the basic alternative teacher compensation aid for
a school district with a plan approved under section 122A.414, subdivision 2b, equals
73.1 percent of the alternative teacher compensation revenue under section 122A.415,
subdivision 1. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.
new text end

new text begin (b) Notwithstanding paragraphs (a) and (b), and section 122A.415, subdivision 1,
the state total basic alternative teacher compensation aid entitlement must not exceed
$101,205,800 for fiscal year 2008 and later. The commissioner must limit the amount
of alternative teacher compensation aid approved under section 122A.415, so as not to
exceed these limits.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately.
new text end

Sec. 3.

Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 13a,
is amended to read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year 2007 and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year
2006, deleted text begin and deleted text end $10,700 for fiscal year 2007 new text begin , and $22,222 for fiscal year 2008 new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for taxes payable 2007.
new text end

Sec. 4.

Minnesota Statutes 2004, section 126C.10, subdivision 29, is amended to read:

Subd. 29.

Equity levy.

To obtain equity revenue for fiscal deleted text begin year deleted text end new text begin years new text end 2005 deleted text begin and
later deleted text end new text begin through 2007 new text end , a district may levy an amount not more than the product of its equity
revenue for the fiscal year times the lesser of one or the ratio of its referendum market
value per resident marginal cost pupil unit to $476,000. new text begin To obtain equity revenue for fiscal
year 2008 and later, a district may levy an amount not more than the product of its equity
revenue for the fiscal year times the lesser of one or the ratio of its referendum market
value per resident marginal cost pupil unit to $600,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for taxes payable 2007.
new text end

Sec. 5.

Minnesota Statutes 2004, section 126C.10, subdivision 32, is amended to read:

Subd. 32.

Transition levy.

To obtain transition revenue for fiscal deleted text begin year deleted text end new text begin years new text end 2005
deleted text begin and later deleted text end new text begin through 2007 new text end , a district may levy an amount not more than the product of its
transition revenue for the fiscal year times the lesser of one or the ratio of its referendum
market value per resident marginal cost pupil unit to $476,000. new text begin To obtain transition
revenue for fiscal year 2008 and later, a district may levy an amount not more than the
product of its transition revenue for the fiscal year times the lesser of one or the ratio of its
referendum market value per resident marginal cost pupil unit to $600,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for taxes payable 2007.
new text end

Sec. 6.

Minnesota Statutes 2005 Supplement, section 126C.13, subdivision 4, is
amended to read:

Subd. 4.

General education aid.

(a) For fiscal year 2006, a district's general
education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital, and
transition revenue;

(2) operating capital aid according to section 126C.10, subdivision 13b;

(3) equity aid according to section 126C.10, subdivision 30;

(4) transition aid according to section 126C.10, subdivision 33;

(5) shared time aid according to section 126C.01, subdivision 7;

(6) referendum aid according to section 126C.17; and

(7) online learning aid according to section 124D.096.

(b) For fiscal year 2007 and later, a district's general education aid is the sum of
the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) alternative teacher compensation aid under section 126C.10, subdivision 36;

(5) transition aid under section 126C.10, subdivision 33;

(6) shared time aid under section 126C.01, subdivision 7;

(7) referendum aid under section 126C.17; and

(8) online learning aid according to section 124D.096.

new text begin (c) For fiscal year 2008 and later, a district's general education aid is the sum of
the following amounts:
new text end

new text begin (1) general education revenue, excluding equity revenue, total operating capital
revenue, and transition revenue;
new text end

new text begin (2) operating capital aid under section 126C.10, subdivision 13b;
new text end

new text begin (3) equity aid under section 126C.10, subdivision 30;
new text end

new text begin (4) transition aid under section 126C.10, subdivision 33;
new text end

new text begin (5) shared-time aid under section 126C.01, subdivision 7;
new text end

new text begin (6) referendum aid under section 126C.17; and
new text end

new text begin (7) online-learning aid according to section 124D.096.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2004, section 126C.17, subdivision 6, is amended to read:

Subd. 6.

Referendum equalization levy.

(a) For fiscal year 2003 and later,
a district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) new text begin For fiscal years 2006 and 2007, new text end a district's first tier referendum equalization levy
equals the district's first tier referendum equalization revenue times the lesser of one or
the ratio of the district's referendum market value per resident marginal cost pupil unit
to $476,000. new text begin For fiscal year 2008 and later, a district's first tier referendum equalization
levy equals the district's first tier referendum equalization revenue times the lesser of one
or the ratio of the district's referendum market value per resident marginal cost pupil
unit to $600,000.
new text end

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to $270,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for taxes payable 2007.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2005 Supplement, section 126C.10, subdivisions 34, 35, and
36, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for taxes payable 2007.
new text end