SF 3790

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

A bill for an act
relating to education finance; reestablishing categorical funding for pupil
transportation costs; amending Minnesota Statutes 2004, section 123B.92, by
adding subdivisions; Minnesota Statutes 2005 Supplement, section 123B.92,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter
123B.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1, is
amended to read:

Subdivision 1.

Definitions.

For purposes of this section and section 125A.76, the
terms defined in this subdivision have the meanings given to them.

(a) "Actual expenditure per pupil transported in the regular and excess transportation
categories" means the quotient obtained by dividing:

(1) the sum of:

(i) all expenditures for transportation in the regular category, as defined in paragraph
(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus

(ii) an amount equal to one year's depreciation on the district's school bus fleet
and mobile units computed on a straight line basis at the rate of 15 percent per year for
districts operating a program under section 124D.128 for grades 1 to 12 for all students in
the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus

(iii) an amount equal to one year's depreciation on the district's type three school
buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a
majority of the time for pupil transportation purposes, computed on a straight line basis at
the rate of 20 percent per year of the cost of the type three school buses by:

(2) the number of pupils eligible for transportation in the regular category, as defined
in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).

(b) "Transportation category" means a category of transportation service provided to
pupils as follows:

(1) Regular transportation is:

(i) transportation to and from school during the regular school year for resident
elementary pupils residing one mile or more from the public or nonpublic school they
attend, and resident secondary pupils residing two miles or more from the public
or nonpublic school they attend, excluding desegregation transportation and noon
kindergarten transportation; but with respect to transportation of pupils to and from
nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;

(ii) transportation of resident pupils to and from language immersion programs;

(iii) transportation of a pupil who is a custodial parent and that pupil's child between
the pupil's home and the child care provider and between the provider and the school, if
the home and provider are within the attendance area of the school;

(iv) transportation to and from or board and lodging in another district, of resident
pupils of a district without a secondary school; and

(v) transportation to and from school during the regular school year required under
subdivision 3 for nonresident elementary pupils when the distance from the attendance
area border to the public school is one mile or more, and for nonresident secondary pupils
when the distance from the attendance area border to the public school is two miles or
more, excluding desegregation transportation and noon kindergarten transportation.

For the purposes of this paragraph, a district may designate a licensed day care
facility, respite care facility, the residence of a relative, or the residence of a person chosen
by the pupil's parent or guardian as the home of a pupil for part or all of the day, if
requested by the pupil's parent or guardian, and if that facility or residence is within the
attendance area of the school the pupil attends.

(2) Excess transportation is:

(i) transportation to and from school during the regular school year for resident
secondary pupils residing at least one mile but less than two miles from the public or
nonpublic school they attend, and transportation to and from school for resident pupils
residing less than one mile from school who are transported because of extraordinary
traffic, drug, or crime hazards; and

(ii) transportation to and from school during the regular school year required under
subdivision 3 for nonresident secondary pupils when the distance from the attendance area
border to the school is at least one mile but less than two miles from the public school
they attend, and for nonresident pupils when the distance from the attendance area border
to the school is less than one mile from the school and who are transported because of
extraordinary traffic, drug, or crime hazards.

(3) Desegregation transportation is transportation within and outside of the district
during the regular school year of pupils to and from schools located outside their normal
attendance areas under a plan for desegregation mandated by the commissioner or under
court order.

(4) "Transportation services for pupils with disabilities" is:

(i) transportation of pupils with disabilities who cannot be transported on a regular
school bus between home or a respite care facility and school;

(ii) necessary transportation of pupils with disabilities from home or from school to
other buildings, including centers such as developmental achievement centers, hospitals,
and treatment centers where special instruction or services required by sections 125A.03
to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
where services are provided;

(iii) necessary transportation for resident pupils with disabilities required by sections
125A.12, and 125A.26 to 125A.48;

(iv) board and lodging for pupils with disabilities in a district maintaining special
classes;

(v) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, and necessary
transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
with disabilities who are provided special instruction and services on a shared-time basis
or if resident pupils are not transported, the costs of necessary travel between public
and private schools or neutral instructional sites by essential personnel employed by the
district's program for children with a disability;

(vi) transportation for resident pupils with disabilities to and from board and lodging
facilities when the pupil is boarded and lodged for educational purposes; and

(vii) services described in clauses (i) to (vi), when provided for pupils with
disabilities in conjunction with a summer instructional program that relates to the pupil's
individual education plan or in conjunction with a learning year program established
under section 124D.128.

For purposes of computing special education base revenue under section 125A.76,
subdivision 2, the cost of providing transportation for children with disabilities includes
(A) the additional cost of transporting a homeless student from a temporary nonshelter
home in another district to the school of origin, or a formerly homeless student from a
permanent home in another district to the school of origin but only through the end of the
academic year; and (B) depreciation on district-owned school buses purchased after July 1,
2005, and used primarily for transportation of pupils with disabilities, calculated according
to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
transportation category must be excluded in calculating the actual expenditure per pupil
transported in the regular and excess transportation categories according to paragraph (a).

(5) "Nonpublic nonregular transportation" is:

(i) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, excluding
transportation for nonpublic pupils with disabilities under clause (4);

(ii) transportation within district boundaries between a nonpublic school and a
public school or a neutral site for nonpublic school pupils who are provided pupil support
services pursuant to section 123B.44; and

(iii) late transportation home from school or between schools within a district for
nonpublic school pupils involved in after-school activities.

new text begin (6) "Nonregular transportation" for public school pupils is:
new text end

new text begin (i) transportation from one educational facility to another within the district,
excluding transportation for pupils with disabilities under clause (4);
new text end

new text begin (ii) late transportation home from school or between schools within a district for
pupils involved in after-school activities.
new text end

(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
educational programs and services, including diagnostic testing, guidance and counseling
services, and health services. A mobile unit located off nonpublic school premises is a
neutral site as defined in section 123B.41, subdivision 13.

new text begin (d) "FTE" means a full time equivalent pupil who is transported by a school district
under any of the categories authorized in paragraph (b).
new text end

new text begin (e) "Current year" means the school year for which aid will be paid.
new text end

new text begin (f) "Base year" means the second school year preceding the school year for which
aid will be paid.
new text end

new text begin (g) "Base cost" means the ratio of:
new text end

new text begin (1) the sum of the authorized cost in the base year for regular transportation plus the
actual cost in the base year for excess transportation as defined in paragraph (b);
new text end

new text begin (2) to the sum of the number of weighted FTE's in the regular and excess categories
in the base year.
new text end

new text begin (h) "Pupil weighting factor" for the excess transportation category for a school
district means the lesser of one, or the result of the following computation:
new text end

new text begin (1) Divide the square mile area of the school district by the number of FTE's in the
regular and excess categories in the base year.
new text end

new text begin (2) Raise the result in clause (1) to the one-fifth power.
new text end

new text begin (3) Divide four-tenths by the result in clause (2).
new text end

new text begin The pupil weighting factor for the regular transportation category is one.
new text end

new text begin (i) "Weighted FTE's" means the number of FTE's in each transportation category
multiplied by the pupil weighting factor for that category.
new text end

new text begin (j) "Sparsity index" for a school district means the greater of .005 or the ratio of the
square mile area of the school district to the sum of the number of weighted FTE's by the
district in the regular and excess categories in the base year.
new text end

new text begin (k) "Density index" for a school district means the greater of one or the result
obtained by subtracting the product of the district's sparsity index times 20 from two.
new text end

new text begin (l) "Contract transportation index" for a school district means the greater of one or
the result of the following computation:
new text end

new text begin (1) Multiply the district's sparsity index by 20.
new text end

new text begin (2) Select the lesser of one or the result in clause (1).
new text end

new text begin (3) Multiply the district's percentage of regular FTE's in the current year using
vehicles that are not owned by the school district by the result in clause (2).
new text end

new text begin (m) "Adjusted predicted base cost" means the predicted base cost as computed in
subdivision 3a as adjusted under subdivision 1b.
new text end

new text begin (n) "Regular transportation allowance" means the adjusted predicted base cost,
inflated and adjusted under subdivision 1c.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Predicted base cost. new text end

new text begin (a) A district's predicted base cost equals the result
of the following computation:
new text end

new text begin (b) Multiply the transportation formula allowance by the district's sparsity index
raised to the one-fourth power. The transportation formula allowance is $800 for the
2005-2006 base year.
new text end

new text begin (c) Multiply the result in paragraph (b) by the district's density index raised to
the one-half power.
new text end

new text begin (d) Multiply the result in paragraph (c) by the district's contract transportation index
raised to the one-twentieth power.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Base year softening formula. new text end

new text begin Each district's predicted base cost
determined according to subdivision 1a must be adjusted as provided in this subdivision to
determine the district's adjusted predicted base cost for that year. The adjusted predicted
base cost equals 50 percent of the district's base cost plus 50 percent of the district's
predicted base cost, but the adjusted predicted base cost cannot be less than 80 percent,
nor more than 105 percent, of the base cost.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Inflation factors. new text end

new text begin (a) The adjusted predicted base cost determined for
a district under subdivision 1b for the base year must be increased by six percent to
determine the district's regular transportation allowance for the current school year.
new text end

new text begin (b) The nonregular transportation inflation factor is six percent.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1d. new text end

new text begin Transportation revenue. new text end

new text begin (a) Transportation revenue for each district
equals the sum of the district's regular, nonregular, and excess transportation revenue less
its transportation sparsity revenue for that year under section 126C.10.
new text end

new text begin (b) The regular transportation revenue for each district equals the district's regular
transportation allowance according to subdivision 1c times the sum of the number of
FTE's by the district in the regular, desegregation, and disabled categories in the current
school year.
new text end

new text begin (c) The nonregular transportation revenue for each district equals the lesser of the
district's actual cost in the current school year for nonregular transportation services or the
product of the district's actual cost in the base year for nonregular transportation services
as defined for the current year in subdivision 1, times the ratio of the district's average
daily membership for the current year to the district's average daily membership for the
base year, times the nonregular transportation inflation factor for the current year, minus
the amount of regular transportation revenue attributable to FTE's in the desegregation and
disabled categories in the current school year, plus the excess nonregular transportation
revenue for the current year.
new text end

new text begin (d) The district's excess nonregular transportation revenue equals an amount equal
to 80 percent of the difference between:
new text end

new text begin (1) the district's actual cost in the current year for nonregular transportation services
as defined for the current year in subdivision 1; and
new text end

new text begin (2) the product of the district's actual cost in the base year for nonregular
transportation services as defined for the current year in subdivision 1, times the
nonregular transportation inflation factor for the current year, times the ratio of the
district's average daily membership for the current year to the district's average daily
membership for the base year.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1e. new text end

new text begin Transportation aid. new text end

new text begin A district's transportation aid equals its
transportation revenue less its contracted services aid reduction computed under
subdivision 1f.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1f. new text end

new text begin Contracted services aid reduction. new text end

new text begin (a) Each year, a district's
transportation aid shall be reduced according to the provisions of this subdivision, if the
district contracted for some or all of the transportation services provided in the regular
category.
new text end

new text begin (b) The Department of Education shall determine the subtraction by computing
the district's regular transportation revenue, excluding revenue based on the district's
minimum regular transportation allowance under two circumstances, once including the
factor specified in subdivision 1a, paragraph (d), and once excluding the factor. The
aid subtraction equals the difference between the district's revenue computed under the
two circumstances.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1g. new text end

new text begin Depreciation. new text end

new text begin Any school district that owns school buses or mobile
units shall transfer annually from the undesignated fund balance account in its general
fund to the reserved fund balance account for bus purchases in its general fund at least an
amount equal to 12.5 percent per year of the original cost of each type one or type two bus
or mobile unit until the original cost of each type one or type two bus or mobile unit is
fully amortized, plus 20 percent of the original cost of each type three bus included in
the district's authorized cost under the provisions of subdivision 1, paragraph (b), clause
(4), until the original cost of each type three bus is fully amortized, plus 33-1/3 percent of
the cost to the district as of July 1 of each year for school bus reconditioning done by the
Department of Corrections until the cost of the reconditioning is fully amortized.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2004, section 123B.92, is amended by adding a subdivision
to read:

new text begin Subd. 1h. new text end

new text begin Bus purchase account. new text end

new text begin Any school district that owns school buses
or mobile units must establish a reserved fund balance account for bus purchases in its
general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

new text begin [123B.925] TRANSPORTATION LEVIES.
new text end

new text begin Subdivision 1. new text end

new text begin Bus purchases. new text end

new text begin A school district may levy the amount necessary to
eliminate any projected deficit in the reserved fund balance account for bus purchases in
its general fund as of June 30 of the school year beginning in the calendar year following
the calendar year the levy is certified.
new text end

new text begin Subd. 2. new text end

new text begin Contracted services. new text end

new text begin A school district may levy an amount equal to the
aid subtraction computed according to section 123B.92, subdivision 1g, for the school
year beginning in the year the levy is certified.
new text end

new text begin Subd. 3. new text end

new text begin Late activity buses. new text end

new text begin (a) A school district may levy an amount equal to
the lesser of:
new text end

new text begin (1) the actual cost of late transportation home from school, between schools within a
district, or between schools for pupils involved in after-school activities for the school
year beginning in the year the levy is certified; or
new text end

new text begin (2) two percent of the sum of the district's regular transportation revenue and the
district's nonregular transportation revenue for that school year.
new text end

new text begin (b) A district that levies under this section must provide late transportation from
school for students participating in any academic-related activities provided by the district
if transportation is provided for students participating in athletic activities.
new text end

new text begin EFFECTIVE DATE. new text end

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