SF 3023

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

A bill for an act
relating to education finance; creating a location equity index; modifying the
general education revenue formula; increasing revenue for some school districts;
amending Minnesota Statutes 2006, sections 126C.01, by adding a subdivision;
126C.10, subdivision 1, by adding a subdivision.

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. 12. new text end

new text begin Location equity index. new text end

new text begin (a) A school district's wage equity index equals
each district's composite wage level divided by the statewide average wage for the same
period. The composite wage level for a school district equals the sum of 80 percent of the
district's county wage level and 20 percent of the district's economic development region
composite wage level. The composite wage level is computed by using the most recent
three-year weighted wage data with the coefficient weights set at 0.5 for the most recent
year, 0.3 for the prior year, and 0.15 for the second prior year.
new text end

new text begin (b) a school district's housing equity index equals the ratio of each district's county
median home value to the statewide median home value.
new text end

new text begin (c) a school district's location equity index equals the greater of one, or the sum of
(i) 0.65 times the district's wage equity index, and (ii) 0.35 times the district's housing
equity index.
new text end

new text begin (d) The commissioner of education annually must recalculate the indexes in this
section. For purposes of this subdivision, the commissioner must locate a school district
with boundaries that cross county borders in the county that generates the highest location
equity index for that district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 2.

Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

deleted text begin For fiscal year 2006 and later, deleted text end The
general education revenue for each district equals the sum of the district's basic revenue,
extended time revenue, gifted and talented revenue, new text begin location equity revenue, new text end basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue, and transition revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 3.

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 Location equity revenue. new text end

new text begin A school district's location equity revenue
equals the product of:
new text end

new text begin (1) the basic formula allowance for that year;
new text end

new text begin (2) the district's adjusted marginal cost pupil units for that year; and
new text end

new text begin (3) the district's location equity index minus one.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end