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SF 1206

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 08/09/2017 10:17am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to education finance; enhancing equalization aid; increasing state aid for
the debt service equalization aid program; modifying the calculation of referendum
equalization revenue, aid, and levy; appropriating money; amending Minnesota
Statutes 2016, sections 123B.53, subdivisions 4, 5, 6; 126C.17, subdivisions 5, 6.

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

Section 1.

Minnesota Statutes 2016, section 123B.53, subdivision 4, is amended to read:


Subd. 4.

Debt service equalization revenue.

deleted text begin (a)deleted text end The debt service equalization revenue
of a district equals deleted text begin the sum of the first tier debt service equalization revenue and the second
tier debt service equalization revenue.
deleted text end

deleted text begin (b) The first tier debt service equalization revenue of a district equalsdeleted text end the greater of zero
or the eligible debt service revenue minus the amount raised by a levy of deleted text begin 15.74deleted text end new text begin 11new text end percent
times the adjusted net tax capacity of the district deleted text begin minus the second tier debt service
equalization revenue of the district
deleted text end .

deleted text begin (c) The second tier debt service equalization revenue of a district equals the greater of
zero or the eligible debt service revenue, minus the amount raised by a levy of 26.24 percent
times the adjusted net tax capacity of the district.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 2.

Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read:


Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a district
equals deleted text begin the sum of the first tier equalized debt service levy and the second tier equalized debt
service levy.
deleted text end

deleted text begin (b) A district's first tier equalized debt service levy equalsdeleted text end the district's deleted text begin first tierdeleted text end debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or
55.33
deleted text end new text begin 100new text end percent of the initial equalizing factor in fiscal year deleted text begin 2018deleted text end new text begin 2019new text end and later.

deleted text begin (c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:
deleted text end

deleted text begin (1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to
deleted text end

deleted text begin (2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent of
the initial equalizing factor in fiscal year 2018 and later.
deleted text end

deleted text begin (d)deleted text end new text begin (b)new text end For the purposes of this subdivision, the initial equalizing factor equals the quotient
derived by dividing the total adjusted net tax capacity of all school districts in the state for
the year before the year the levy is certified by the total number of adjusted pupil units in
all school districts in the state in the year before the year the levy is certified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 3.

Minnesota Statutes 2016, section 123B.53, subdivision 6, is amended to read:


Subd. 6.

Debt service equalization aid.

deleted text begin (a)deleted text end A district's debt service equalization aid deleted text begin is
the sum of the district's first tier debt service equalization aid and the district's second tier
debt service equalization aid.
deleted text end

deleted text begin (b) A district's first tier debt service equalization aiddeleted text end equals the difference between the
district's deleted text begin first tierdeleted text end debt service equalization revenue and the district's deleted text begin first tierdeleted text end equalized debt
service levy.

deleted text begin (c) A district's second tier debt service equalization aid equals the difference between
the district's second tier debt service equalization revenue and the district's second tier
equalized debt service levy.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 4.

Minnesota Statutes 2016, section 126C.17, subdivision 5, is amended to read:


Subd. 5.

Referendum equalization revenue.

(a) A district's referendum equalization
revenue equals the sum of the first tier referendum equalization revenue and the second tier
referendum equalization revenue, and the third tier referendum equalization revenue.

(b) A district's first tier referendum equalization revenue equals the district's first tier
referendum equalization allowance times the district's adjusted pupil units for that year.

(c) A district's first tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or $300.

(d) A district's second tier referendum equalization revenue equals the district's second
tier referendum equalization allowance times the district's adjusted pupil units for that year.

(e) A district's second tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or deleted text begin $760deleted text end new text begin $1,000new text end , minus the district's
first tier referendum equalization allowance.

(f) A district's third tier referendum equalization revenue equals the district's third tier
referendum equalization allowance times the district's adjusted pupil units for that year.

(g) A district's third tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or 25 percent of the formula allowance,
minus the sum of the district's first tier referendum equalization allowance and second tier
referendum equalization allowance.

(h) Notwithstanding paragraph (g), the third tier referendum allowance for a district
qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or elementary
sparsity revenue under section 126C.10, subdivision 8, equals the district's referendum
allowance under subdivision 1 minus the sum of the district's first tier referendum
equalization allowance and second tier referendum equalization allowance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 5.

Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:


Subd. 6.

Referendum equalization levy.

(a) A district's referendum equalization levy
equals the sum of the first tier referendum equalization levy, the second tier referendum
equalization levy, and the third tier referendum equalization levy.

(b) 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 pupil unit to $880,000.

(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 pupil unit to deleted text begin $510,000deleted text end new text begin $640,000new text end .

(d) A district's third tier referendum equalization levy equals the district's third tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to deleted text begin $290,000deleted text end new text begin $400,000new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end