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Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1989 

                        CHAPTER 222-H.F.No. 141 
           An act relating to education; correcting, clarifying, 
          and changing certain education statutes; amending 
          Minnesota Statutes 1988, sections 120.062, 
          subdivisions 1 and 12; 120.075, subdivision 5; 
          120.0751, subdivision 6; 120.0752, subdivision 4; 
          121.904, subdivision 4a; 121.912, subdivision 1; 
          123.3515, subdivision 9; 123.36, subdivision 13; 
          123.705, subdivision 1; 124.155, subdivision 2; 
          124.214, subdivisions 2 and 3; 124.225, subdivisions 
          1, 4b, 7a, 7b, 8a, 8b, 8i, 8j, 8k, 8l, 10, and by 
          adding a subdivision; 124.2445; 124.245, subdivision 
          6; 124.575, subdivision 1; 124A.24; 126.22, 
          subdivisions 2 and 3; and 275.125, subdivisions 5b, 
          5c, 5e, 9, and 11d; Laws 1987, chapter 398, article 6, 
          section 19, subdivision 9. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1988, section 120.062, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CERTAIN DISTRICTS EXCLUDED.] For the 
1989-1990 school year only, this section applies to a district 
that has more than 1,000 actual pupil units in kindergarten 
through grade 12 during the 1987-1988 school year.  
    Sec. 2.  Minnesota Statutes 1988, section 120.062, 
subdivision 12, is amended to read: 
    Subd. 12.  [GENERAL EDUCATION AID.] Adjustments to general 
education aid, capital expenditure facilities aid, and equipment 
aid for the resident and nonresident districts shall be made 
according to section sections 124A.036, subdivision 5, and 
124.245, subdivision 6, respectively.  
    Sec. 3.  Minnesota Statutes 1988, section 120.075, 
subdivision 5, is amended to read:  
    Subd. 5.  General education aid, capital expenditure 
facilities aid, capital expenditure equipment aid, and 
transportation aid attributable to pupils covered by programs 
under this section must be paid according to sections 124A.036, 
subdivision 5, 124.245, subdivision 6, and 124.225, subdivision 
8l, respectively. 
    Sec. 4.  Minnesota Statutes 1988, section 120.0751, 
subdivision 6, is amended to read: 
    Subd. 6.  [AID.] General education aid, capital expenditure 
facilities aid, capital expenditure equipment aid, and 
transportation aid for pupils covered by programs under this 
section must be paid according to sections 124A.036, subdivision 
5, 124.245, subdivision 6, and 124.225, subdivision 8l, 
respectively.  
    Sec. 5.  Minnesota Statutes 1988, section 120.0752, 
subdivision 4, is amended to read: 
    Subd. 4.  General education aid, capital expenditure 
facilities aid, capital expenditure equipment aid, and 
transportation aid for pupils covered by programs under this 
section must be paid according to sections 124A.036, subdivision 
5, 124.245, subdivision 6, and 124.225, subdivision 8l, 
respectively. 
    Sec. 6.  Minnesota Statutes 1988, section 121.904, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
settlement revenue" means the current, delinquent, and 
manufactured home property tax receipts collected by the county 
and distributed to the school district, including distributions 
made pursuant to section 279.37, subdivision 7, and excluding 
the amount levied pursuant to section 275.125, subdivision 9a, 
and Laws 1976, chapter 20, section 4.  
     (b) In June of each year, the school district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
     (1) the June and July school district tax settlement 
revenue received in that calendar year; or 
     (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2, which are for the fiscal year 
payable in that fiscal year plus 27 percent of the amount of the 
levy certified in the prior calendar year according to section 
124A.03, subdivision 2, plus or minus auditor's adjustments, not 
including levy portions that are assumed by the state; or 
     (3) 27 percent of the amount of the levy certified in the 
prior calendar year, plus or minus auditor's adjustments, not 
including levy portions that are assumed by the state, which 
remains after subtracting, by fund, the amounts levied for the 
following purposes:  
     (i) reducing or eliminating projected deficits in the 
reserved fund balance accounts for unemployment insurance and 
bus purchases; 
      (ii) statutory operating debt pursuant to section 275.125, 
subdivision 9a, and Laws 1976, chapter 20, section 4; and 
      (iii) retirement and severance pay pursuant to section 
275.125, subdivision 6a, and Laws 1975, chapter 261, section 4; 
and 
    (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, amounts 
levied for down payments under section 124.82, subdivision 3, 
amounts levied for education district bonds under section 
122.96, subdivision 5, and amounts levied pursuant to section 
275.125, subdivision 14a. 
    (c) In July of each year, the school district shall 
recognize as revenue that portion of the school district tax 
settlement revenue received in that calendar year and not 
recognized as revenue for the previous fiscal year pursuant to 
clause (b).  
    (d) All other school district tax settlement revenue shall 
be recognized as revenue in the fiscal year of the settlement. 
Portions of the school district levy assumed by the state, 
including prior year adjustments and the amount to fund the 
school portion of the reimbursement made pursuant to section 
273.425, shall be recognized as revenue in the fiscal year 
beginning in the calendar year for which the levy is payable. 
    Sec. 7.  Minnesota Statutes 1988, section 121.912, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIMITATIONS.] Except as provided in this 
subdivision, sections 121.9121, 123.36, 124.243, 475.61, and 
475.65, a school district may not permanently transfer money 
from (1) an operating fund to a nonoperating fund; (2) a 
nonoperating fund to another nonoperating fund; or (3) a 
nonoperating fund to an operating fund.  Permanent transfers may 
be made from any fund to any other fund to correct for prior 
fiscal years' errors discovered after the books have been closed 
for that year.  Permanent transfers may be made from the general 
fund to any other operating funds according to section 10 or if 
the resources of the other fund are not adequate to finance 
approved expenditures from that other fund.  Permanent transfers 
may also be made from the general fund to eliminate deficits in 
another fund when that other fund is being discontinued.  When a 
district discontinues operation of a district-owned bus fleet or 
a substantial portion of a fleet, permanent transfers may be 
made from the fund balance account entitled "pupil 
transportation fund reserved for bus purchases" to the capital 
expenditure fund, with the approval of the commissioner.  
The levy sum of the levies authorized pursuant to sections 
124.243 and, 124.244, and 124.83, shall be reduced by an amount 
equal to the amount transferred.  Any school district may 
transfer any amount from the undesignated fund balance account 
in its transportation fund to any other operating fund or to the 
reserved fund balance account for bus purchases in its 
transportation fund. 
     Sec. 8.  Minnesota Statutes 1988, section 123.3515, 
subdivision 9, is amended to read: 
    Subd. 9.  [AID.] General education aid, capital expenditure 
facilities aid, capital expenditure equipment aid, and 
transportation aid attributable to pupils covered by programs 
under this section must be paid according to sections 124A.036, 
subdivision 5, 124.245, subdivision 6, and 124.225, subdivision 
8l, respectively. 
    Sec. 9.  Minnesota Statutes 1988, section 123.36, 
subdivision 13, is amended to read: 
    Subd. 13.  [PROCEEDS OF SALE OR EXCHANGE.] Proceeds of the 
sale or exchange of school buildings or real property of the 
school district shall be used as provided in this subdivision. 
    (1) In districts with outstanding bonds, the proceeds of 
the sale or exchange shall first be deposited in the debt 
retirement fund of the district in an amount sufficient to meet 
when due that percentage of the principal and interest payments 
for outstanding bonds which is ascribable to the payment of 
expenses necessary and incidental to the construction or 
purchase of the particular building or property which is sold.  
    (2) After satisfying the requirements of clause (1), a 
district with outstanding bonds may deposit proceeds of the sale 
or exchange in its capital expenditure fund if the amount 
deposited is used for the following:  
    (a) for expenditures for the removal of asbestos from 
school buildings or property or for asbestos encapsulation, if 
the method for asbestos removal or encapsulation is approved by 
the department of education; 
    (b) for expenditures for the cleanup of polychlorinated 
biphenyls, if the method for cleanup is approved by the 
department of education; 
     (c) for capital expenditures for the betterment, as defined 
in section 475.51, subdivision 8, of district-owned school 
buildings, other than as provided in clause (a); or 
     (d) to replace the building or property sold.  
    The amount of the proceeds used for the purposes specified 
in clauses (a) and (b) shall be deducted from the levy 
limitation computed for the levy authorized in section 275.125, 
subdivision 11c 124.83, subdivision 4, in the first year after 
the deposit and from levy limitations computed for this levy in 
succeeding years until the entire amount is deducted.  
    (3) In a district with outstanding bonds, the amount of the 
proceeds of the sale or exchange remaining after the application 
of clauses (1) and (2), which is sufficient to meet when due 
that percentage of the principal and interest payments for the 
district's outstanding bonds which is not governed by clause 
(1), shall be deposited in the debt retirement fund.  
    (4) Any proceeds of the sale or exchange remaining in 
districts with outstanding bonds after the application of 
clauses (1), (2), and (3), and all proceeds of the sale or 
exchange in districts without outstanding bonds shall be 
deposited in the capital expenditure fund of the district. 
    (5) Notwithstanding clauses (2) and (3), a district with 
outstanding bonds may deposit in its capital expenditure fund 
and use for any lawful capital expenditure without the reduction 
of any levy limitation the same percentage of the proceeds of 
the sale or exchange of a building or property as the percentage 
of the initial cost of purchasing or constructing the building 
or property which was paid using revenue from the capital 
expenditure fund.  
     (6) Every district which sells or exchanges a building or 
property shall report to the commissioner in the form and at the 
time the commissioner prescribes on the disposition of the 
proceeds of the sale or exchange. 
    Sec. 10.  Minnesota Statutes 1988, section 123.705, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AID AMOUNTS.] The state shall pay each 
school district for the cost of screening services provided 
according to sections 123.701 to 123.705 an amount equal to 
$8.15 per child screened.  If this amount of aid is not 
sufficient, the district may permanently transfer from the 
general fund an amount that, when added to the aid, is 
sufficient.  
    Sec. 11.  Minnesota Statutes 1988, section 124.155, 
subdivision 2, is amended to read: 
    Subd. 2.  [ADJUSTMENT TO AIDS.] The amount specified in 
subdivision 1 shall be used to adjust the following state aids 
and credits in the order listed: 
    (a) general education aid authorized in section 124A.23; 
    (b) secondary vocational aid authorized in section 124.573; 
    (c) special education aid authorized in section 124.32; 
    (d) secondary vocational aid for handicapped children 
authorized in section 124.574; 
    (e) aid for pupils of limited English proficiency 
authorized in section 124.273; 
    (f) transportation aid authorized in section 124.225; 
    (g) community education programs aid authorized in section 
124.271; 
    (h) adult education aid authorized in section 124.26; 
    (i) early childhood family education aid authorized in 
section 124.2711; 
    (j) capital expenditure aid authorized in sections 124.243, 
124.244, and 124.245 124.83; 
    (k) homestead credit under section 273.13 for taxes payable 
in 1989 and under section 273.1398 for taxes payable in 1990 and 
thereafter; 
    (l) agricultural credit under section 273.132 for taxes 
payable in 1989 and under section 273.1398 for taxes payable in 
1990 and thereafter; and 
    (m) transition aid and disparity reduction aid authorized 
in section 273.1398; 
     (n) attached machinery aid authorized in section 273.138, 
subdivision 3.  
     The commissioner of education shall schedule the timing of 
the adjustments to state aids and credits specified in 
subdivision 1, as close to the end of the fiscal year as 
possible. 
    Sec. 12.  Minnesota Statutes 1988, section 124.214, 
subdivision 2, is amended to read: 
    Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
sections 270.07, 375.192, or otherwise, the gross tax capacity 
of any school district for any taxable year is changed after the 
taxes for that year have been spread by the county auditor and 
the tax capacity rate as determined by the county auditor based 
upon the original gross tax capacity is applied upon the changed 
gross tax capacities, the county auditor shall, prior to 
February 1 of each year, certify to the commissioner of 
education the amount of any resulting net revenue loss that 
accrued to the school district during the preceding year.  Each 
year, the commissioner shall pay an abatement adjustment to the 
district in an amount calculated according to the provisions of 
this subdivision.  This amount shall be deducted from the amount 
of the levy authorized by section 275.48.  The abatement 
adjustment shall be recognized as revenue in the fiscal year in 
which it is received.  The amount of the abatement adjustment 
shall be the product of:  
     (1) the net revenue loss as certified by the county 
auditor, times 
     (2) the ratio of:  
     (a) the sum of the amounts of the district's certified levy 
in the preceding October according to the following:  
     (i) section 124A.23 if the district receives general 
education aid according to that section; 
    (ii) section 275.125, subdivisions 5 and 5c, if the 
district receives transportation aid according to section 
124.225; 
    (iii) section 124.243, if the district receives capital 
expenditure facilities aid according to that section; 
     (iv) section 124.244, if the district receives capital 
expenditure equipment aid according to that section; 
    (iv) (v) section 275.125, subdivision 11c 124.83, if the 
district receives hazardous substance health and safety aid 
according to that section 124.245; 
    (v) (vi) section 275.125, subdivision 8, clauses (a) and 
(b), if the district receives community education aid according 
to section 124.271; 
    (vi) (vii) section 275.125, subdivision 8b, if the district 
receives early childhood family education aid according to 
section 124.2711; and 
    (vii) (viii) section 275.125, subdivision 6f, if the 
district receives exceptional need aid according to section 
124.217; 
    (b) to the total amount of the district's certified levy in 
the preceding October, plus or minus auditor's adjustments.  
    Sec. 13.  Minnesota Statutes 1988, section 124.214, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCESS TAX INCREMENT.] If a return of excess tax 
increment is made to a school district pursuant to section 
469.176, subdivision 2, or upon decertification of a tax 
increment district, the school district's aid and levy 
limitations must be adjusted for the fiscal year in which the 
excess tax increment is paid under the provisions of this 
subdivision. 
    (a) An amount must be subtracted from the school district's 
aid for the current fiscal year equal to the product of: 
    (1) the amount of the payment of excess tax increment to 
the school district, times 
    (2) the ratio of: 
    (A) the sum of the amounts of the school district's 
certified levy for the fiscal year in which the excess tax 
increment is paid according to the following: 
    (i) section 124A.23 if the district receives general 
education aid according to that section; 
    (ii) section 275.125, subdivisions 5 and 5c, if the school 
district receives transportation aid according to section 
124.225; 
    (iii) section 124.244 124.243, if the district receives 
capital expenditure facilities aid according to that section; 
    (iv) section 124.244, if the district receives capital 
expenditure equipment aid according to that section; 
    (v) section 275.125, subdivision 11c 124.83, if the 
district receives hazardous substance health and safety aid 
according to that section 124.245; 
    (v) (vi) section 275.125, subdivision 8, clauses (a) and 
(b), if the district receives community education aid according 
to section 124.271; 
    (vi) (vii) section 275.125, subdivision 8b, if the district 
receives early childhood family education aid according to 
section 124.2711; and 
    (vii) (viii) section 275.125, subdivision 6f, if the 
district receives exceptional need aid according to section 
124.217; 
    (B) to the total amount of the school district's certified 
levy for the fiscal year, plus or minus auditor's adjustments. 
    (b) An amount must be subtracted from the school district's 
levy limitation for the next levy certified equal to the 
difference between: 
    (1) the amount of the distribution of excess increment, and 
    (2) the amount subtracted from aid pursuant to clause (a). 
    If the aid and levy reductions required by this subdivision 
cannot be made to the aid for the fiscal year specified or to 
the levy specified, the reductions must be made from aid for 
subsequent fiscal years, and from subsequent levies.  The school 
district shall use the payment of excess tax increment to 
replace the aid and levy revenue reduced under this subdivision. 
    This subdivision applies only to the total amount of excess 
increments received by a school district for a calendar year 
that exceeds $25,000. 
    Sec. 14.  Minnesota Statutes 1988, section 124.225, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
     (a) "FTE" means a transported full-time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
     (b) "Authorized cost for regular transportation" means the 
sum of: 
     (1) all expenditures for transportation in the regular 
category, as defined in clause (e)(1), for which aid is 
authorized in section 124.223, plus 
     (2) 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 12-1/2 percent per year of 
the cost of the fleet, plus 
     (3) an amount equal to one year's depreciation on district 
school buses reconditioned by the department of corrections 
computed on a straight line basis at the rate of 33-1/3 percent 
per year of the cost to the district of the reconditioning, plus 
     (4) an amount equal to one year's depreciation on the 
district's type three school buses, as defined in section 
169.44, subdivision 15, which were purchased after July 1, 1982, 
for authorized transportation of pupils, with the prior approval 
of the commissioner, computed on a straight line basis at the 
rate of 20 percent per year of the cost of the type three school 
buses.  
    (c) "Adjusted authorized predicted cost per FTE" means the 
authorized cost predicted by a multiple regression formula 
determined by the department of education, and adjusted pursuant 
to subdivision 7a. 
    (d) "Aid entitlement per FTE Regular transportation 
allowance" means the adjusted authorized predicted cost per FTE, 
inflated pursuant to subdivision 7b.  
    (e) "Transportation category" means a category of 
transportation service provided to pupils.  
    (1) For the purposes of this section, transportation 
categories for the 1986-1987 and 1987-1988 school years are as 
follows: 
    (i) regular transportation is transportation services 
provided during the regular school year under section 124.223, 
clauses (1) and (2), excluding transportation between schools 
under section 124.223, clause (1); and 
    (ii) nonregular transportation is transportation services 
provided between schools under section 124.223, clause (1); and 
transportation services provided under section 124.223, clauses 
(3), (4), (5), (6), (7), (8), (9), and (10). 
    (2) For purposes of this section, for the 1988-1989 school 
year and after: 
    (i) (1) regular transportation is transportation services 
provided during the regular school year under section 124.223, 
clauses (1) and (2), excluding the following transportation 
services provided under section 124.223, clause (1):  
transportation between schools; noon transportation to and from 
school for kindergarten pupils attending half-day sessions; late 
transportation home from school for pupils involved in after 
school activities; transportation of pupils to and from schools 
located outside their normal attendance areas under the 
provisions of a plan for desegregation mandated by the state 
board of education or under court order; and 
    (ii) (2) nonregular transportation is transportation 
services provided under section 124.223, clause (1), that are 
excluded from the regular category, and transportation services 
provided under section 124.223, clauses (3), (4), (5), (6), (7), 
(8), (9), and (10); and 
    (3) excess transportation is transportation to and from 
school for secondary pupils residing at least one mile but less 
than two miles from the public school they could attend or from 
the nonpublic school actually attended, and transportation to 
and from school for pupils residing less than one mile from 
school who are transported because of extraordinary traffic 
hazards. 
    (f) "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 123.932, 
subdivision 9. 
    (g) "Current year" means the school year for which aid will 
be paid.  
    (h) "Base year" means the second school year preceding the 
school year for which aid will be paid.  
    (i) "Base cost" for the 1984-1985 and 1985-1986 base years 
means the authorized regular transportation cost per FTE in the 
base year in the regular transportation category, excluding 
summer school transportation.  Base cost for the 1986-1987 base 
year and after means the ratio of: 
    (1) the sum of: 
    (i) the authorized cost in the base year for regular 
transportation as defined in clause (b), plus 
    (ii) the actual cost in the base year for excess 
transportation to and from school of secondary pupils who live 
more than one mile but less than two miles from the public 
school that they could attend or from the nonpublic school 
actually attended, plus 
    (iii) the actual cost in the base year for transportation 
costs which are necessary because of extraordinary traffic 
hazards as defined in paragraph (e), clause (3), 
    (2) to the sum of: 
    (i) the number of FTE pupils transported in the regular 
category in the base year, plus 
    (ii) the number of secondary FTE pupils transported to and 
from school in the base year who live more than one mile but 
less than two miles from the public school that they could 
attend or from the nonpublic school actually attended, plus 
    (iii) the number of FTE pupils residing less than one mile 
from school who were transported to and from school in the base 
year because of extraordinary traffic hazards in the excess 
category. 
    (j) "Predicted base cost" means the base cost as predicted 
by subdivision 3.  
    Sec. 15.  Minnesota Statutes 1988, section 124.225, 
subdivision 4b, is amended to read: 
    Subd. 4b.  [FORMULA TERMS.] (a) To predict the logarithm of 
the base cost for each district pursuant to subdivision 3 for 
the 1985-1986 base year, the multiple regression formula shall 
use the following terms for each district: 
    (1) the logarithm of the lesser of (a) the number of 
authorized FTE's per square mile transported by the district in 
the regular transportation category, or (b) 200; 
    (2) whether the district is nonrural, based upon criteria 
established by the department of education; and 
    (3) the logarithm of the percentage of all FTE's 
transported in the regular category using buses that are not 
owned by the district.  
    (b) To predict the logarithm of the base cost for each 
district according to subdivision 3 for the 1986-1987 base year 
and thereafter, the multiple regression formula shall use the 
following terms for each district: 
    (1) the logarithm of the lesser of: 
    (A) 200; or 
    (B) the quotient obtained by dividing the sum of: 
    (i) the number of FTE pupils transported in the regular 
category in the base year, plus 
    (ii) the number of secondary FTE pupils transported to and 
from school in the base year who live more than one mile but 
less than two miles from the public school that they could 
attend or from the nonpublic school actually attended, plus 
    (iii) the number of FTE pupils residing less than one mile 
from school who were transported to and from school in the base 
year because of extraordinary traffic hazards in the excess 
category, 
    (C) by the area of the district in square miles; 
    (2) whether the district is nonrural, based upon criteria 
established by the department of education; and 
    (3) the logarithm of the percentage of all FTE's 
transported in the regular category using buses that are not 
owned by the district. 
    Sec. 16.  Minnesota Statutes 1988, section 124.225, 
subdivision 7a, is amended to read: 
    Subd. 7a.  [BASE YEAR SOFTENING FORMULA.] Each district's 
predicted base cost determined for each school year according to 
subdivision 3 shall be adjusted as provided in this 
clause subdivision to determine the district's adjusted 
authorized predicted cost per FTE for that year.  
    (a) If the base cost of the district is within five percent 
of the predicted base cost, the district's adjusted authorized 
predicted cost per FTE shall be equal to the base cost.  
    (b) If the base cost of the district is more than five 
percent greater than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 105 
percent of the predicted base cost, plus 40 percent of the 
difference between (i) the base cost, and (ii) 105 percent of 
the predicted base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be less than 80 
percent of base cost.  
    (c) If the base cost of the district is more than five 
percent less than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 95 
percent of the predicted base cost, minus 40 percent of the 
difference between (i) 95 percent of predicted base cost, and 
(ii) the base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be more than 120 
percent of base cost.  
    Sec. 17.  Minnesota Statutes 1988, section 124.225, 
subdivision 7b, is amended to read: 
    Subd. 7b.  [INFLATION FACTORS.] The adjusted authorized 
predicted cost per FTE determined for a district under 
subdivision 7a for the base year shall be increased by 6.0 
percent to determine the district's aid entitlement per FTE for 
the 1986-1987 school year, by 4.9 percent to determine the 
district's aid entitlement per FTE for the 1987-1988 school 
year, and by 4.1 percent to determine the district's aid 
entitlement per FTE regular transportation allowance for the 
1988-1989 school year. 
    Sec. 18.  Minnesota Statutes 1988, section 124.225, is 
amended by adding a subdivision to read: 
     Subd. 7c.  [TRANSPORTATION REVENUE.] A district's 
transportation revenue for each school year equals the sum of 
its regular transportation revenue under subdivision 8b and its 
actual cost in the current year for nonregular transportation as 
defined in subdivision 1, paragraph (e), clause (2). 
    Sec. 19.  Minnesota Statutes 1988, section 124.225, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [TRANSPORTATION AID.] (a) For the 1988-1989 and 
1989-1990 school year and thereafter years, a district's 
transportation aid is equal to the sum of its basic regular 
transportation aid revenue under subdivision 8b, its nonregular 
transportation aid under subdivision 8i, and its nonregular 
transportation levy equalization aid under subdivision 8j, minus 
its contracted services aid reduction under subdivision 8k and 
minus its basic transportation levy limitation for the levy 
attributable to that school year under section 275.125, 
subdivision 5. 
    (b) For the 1990-1991 school year and after, a district's 
transportation aid equals the product of: 
    (1) the difference between the transportation revenue and 
the sum of: 
    (i) the basic transportation levy for that school year 
under section 275.125, subdivision 5, plus 
    (ii) the nonregular transportation levy for that school 
year under section 275.125, subdivision 5c, plus 
    (iii) the contracted services aid reduction under 
subdivision 8k, times 
    (2) the ratio of the sum of the actual amounts levied under 
section 275.125, subdivisions 5 and 5c, to the sum of the 
permitted levies under those subdivisions. 
    (c) If the total appropriation for transportation aid for 
any fiscal year is insufficient to pay all districts the full 
amount of aid earned, the department of education shall reduce 
each district's aid in proportion to the number of resident 
pupils in average daily membership in the district to the state 
total average daily membership, and shall reduce the 
transportation levy of off-formula districts in the same 
proportion. 
    Sec. 20.  Minnesota Statutes 1988, section 124.225, 
subdivision 8b, is amended to read: 
    Subd. 8b.  [BASIC AID COMPUTATION REGULAR TRANSPORTATION 
REVENUE.] A district's basic transportation aid regular 
transportation revenue pursuant to this section for each school 
year shall equal the district's aid entitlement per FTE regular 
transportation allowance determined according to subdivision 7b, 
times the total number of authorized FTE's transported in the 
regular category in the district in the current school year.  
    Sec. 21.  Minnesota Statutes 1988, section 124.225, 
subdivision 8i, is amended to read: 
    Subd. 8i.  [NONREGULAR TRANSPORTATION AID.] (a) A 
district's nonregular transportation aid shall be determined 
according to this subdivision.  
    (b) For the 1986-1987 and 1987-1988 school years, 
nonregular transportation aid shall equal (1) 20 percent of the 
first $10 of actual cost in the current year for nonregular 
transportation services per total pupil unit, plus 40 percent of 
the next $10 of actual cost in the current year for nonregular 
transportation services per total pupil unit, plus 60 percent of 
the actual cost in the current year for nonregular 
transportation services per total pupil unit which exceeds $20, 
times (2) the number of total pupil units in the district in the 
current year.  
    (c) For the 1988-1989 school year and thereafter, 
nonregular transportation aid equals (1) 60 percent of the 
actual cost in the current year for nonregular transportation 
services per total pupil unit which exceeds $30, times (2) the 
number of total pupil units in the district in the current year. 
    Sec. 22.  Minnesota Statutes 1988, section 124.225, 
subdivision 8j, is amended to read: 
    Subd. 8j.  [NONREGULAR TRANSPORTATION LEVY EQUALIZATION 
AID.] For the 1984-1985 school year and each year thereafter, A 
district's nonregular transportation levy equalization aid shall 
be determined pursuant to this subdivision.  
    (a) Unreimbursed nonregular transportation revenue shall 
equal the actual cost in the current year for nonregular 
transportation services, minus the district's nonregular 
transportation aid computed pursuant to subdivision 8i.  
    (b) The nonregular transportation levy is the levy 
authorized by section 275.125, subdivision 5c.  
    (c) Nonregular transportation levy equalization aid for a 
district shall equal the product of (1) its unreimbursed 
nonregular transportation revenue, minus the nonregular 
transportation levy limitation for that year, times (2) the 
ratio of the district's actual nonregular transportation levy to 
its nonregular transportation levy limitation.  
    Sec. 23.  Minnesota Statutes 1988, section 124.225, 
subdivision 8k, is amended to read: 
    Subd. 8k.  [CONTRACTED SERVICES AID REDUCTION.] For the 
1984-1985 school year and Each year thereafter, each 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.  The department of education shall compute 
this subtraction by conducting the multiple regression analysis 
specified in subdivision 3 and computing the district's aid 
under two circumstances, once including the coefficient of the 
factor specified in subdivision 4b, clause (3), and once 
excluding the coefficient of that factor.  The aid subtraction 
shall equal the difference between the district's aid computed 
under these two circumstances.  
    Sec. 24.  Minnesota Statutes 1988, section 124.225, 
subdivision 8l, is amended to read: 
    Subd. 8l.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
that serves enrolls nonresident pupils in programs under 
sections 120.062, 120.075, 120.0751, 120.0752, 123.3515, 126.22, 
and 129B.52 to 129B.55 shall provide authorized transportation 
to the pupil within the attendance area for the school that the 
pupil attends.  The state shall pay transportation aid 
attributable to the pupil to the serving nonresident district 
according to this section.  The resident district of the pupil's 
residence need not provide or pay for transportation between the 
pupil's residence and the district's border.  
    Sec. 25.  Minnesota Statutes 1988, section 124.225, 
subdivision 10, is amended to read: 
    Subd. 10.  [DEPRECIATION.] Any school district which that 
owns school buses or mobile units shall transfer annually from 
the undesignated fund balance account in its transportation fund 
to the reserved fund balance account for bus purchases in its 
transportation fund at least an amount equal to 12-1/2 percent 
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, clause 
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; provided, if the 
district's transportation aid or levy is reduced pursuant to 
subdivision 8a because the appropriation for that year is 
insufficient, this amount shall be reduced in proportion to the 
reduction pursuant to subdivision 8a as a percentage of the sum 
of 
    (1) the district's total transportation aid without the 
reduction pursuant to subdivision 8a, plus 
    (2) the district's basic transportation levy limitation 
under section 275.125, subdivision 5, plus 
    (3) the district's contract services aid reduction under 
subdivision 8k, plus 
    (4) the district's nonregular transportation levy 
limitation under section 275.125, subdivision 5c district's 
transportation revenue under subdivision 7c.  
    Sec. 26.  Minnesota Statutes 1988, section 124.2445, is 
amended to read: 
    124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
    The board of a school district may issue certificates of 
indebtedness or capital notes subject to the school district 
debt limits to purchase vehicles other than school buses, 
computers, telephone systems, cable equipment, photocopy and 
office equipment, technological equipment for instruction, and 
other capital equipment having an expected useful life at least 
as long as the terms of the certificates or notes.  The 
certificates or notes must be payable in not more than five 
years and must be issued on the terms and in the manner 
determined by the board.  The certificates or notes may be 
issued by resolution and without the requirement for an 
election.  A tax levy must be made for the payment of the 
principal and interest on the certificates or notes, in 
accordance with section 475.61, as in the case of bonds.  That 
tax levy for each year must not exceed the amount of the 
district's capital expenditure equipment levy under section 
124.244 for the year the initial debt service levies are 
certified.  The district's capital expenditure levy under 
section 124.244 for each year must be reduced by the amount of 
the tax levies for debt service certified for each year for 
payment of the principal and interest on the certificates or 
notes as required by section 475.61.  
    Sec. 27.  Minnesota Statutes 1988, section 124.245, 
subdivision 6, is amended to read: 
    Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The capital 
expenditure facilities aid under section 124.243 and the capital 
expenditure equipment aid under section 124.244 for districts 
must be adjusted for each pupil, excluding a handicapped pupil 
as defined in section 120.03, attending a nonresident district 
under sections 120.062, 120.075, 120.0751, 120.0752, 123.3515, 
126.22, and 129B.52 to 129B.55.  The adjustments must be made 
according to this subdivision. 
    (a) capital expenditure Aid paid to a district of the 
pupil's residence must be reduced by an amount equal to the 
revenue amount per actual pupil unit of the resident district 
times the number of pupil units of pupils enrolled in 
nonresident districts. 
    (b) capital expenditure Aid paid to a district serving 
nonresidents in programs listed in subdivision 1 must be 
increased by an amount equal to the revenue amount per actual 
pupil unit of the nonresident district times the number of pupil 
units of nonresident pupils enrolled in the district.  
    (c) If the amount of the reduction to be made from the 
capital expenditure aid of a district is greater than the amount 
of capital expenditure aid otherwise due the district, the 
excess reduction must be made from other state aids due the 
district. 
    Sec. 28.  Minnesota Statutes 1988, section 124.575, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY.] A secondary vocational 
cooperative established under section 123.351 is eligible for 
secondary vocational cooperative revenue if it meets the size 
requirements specified in section 122.96 122.91, subdivision 3, 
and the cooperative offers programs authorized under section 
123.351, subdivision 4, paragraph (b), clause (1), and clause 
(2) or (3).  The pupil units of a district that is a member of 
intermediate school district No. 287, 916, or 917 may not be 
used to obtain revenue under this section.  The pupil units of a 
district may not be used to obtain revenue under this section 
and section 124.2721. 
    Sec. 29.  Minnesota Statutes 1988, section 124A.24, is 
amended to read: 
    124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
    If a district's general education levy is determined 
according to section 124A.23, subdivision 3, an amount must be 
deducted from state aid authorized in this chapter and chapter 
124, receivable for the same school year, and from other state 
payments receivable for the same school year authorized in 
sections 273.115; 273.116; 273.123, subdivision 6; 273.13, 
subdivision 15a; and Laws 1983, chapter 342, article 8, section 
8 chapter 273.  The aid in section 124.646 must not be reduced. 
    The amount of the deduction equals the difference between: 
    (1) the general education tax capacity rate, according to 
section 124A.23, times the district's adjusted gross tax 
capacity used to determine the general education aid for the 
same school year; and 
    (2) the district's general education revenue, excluding 
supplemental revenue, for the same school year, according to 
section 124A.22. 
    However, for fiscal year 1989, the amount of the deduction 
shall be one-fourth of the difference between clauses (1) and 
(2); for fiscal year 1990, the amount of the deduction shall be 
one-third of the difference between clauses (1) and (2); for 
fiscal year 1991, the amount of the deduction shall be one-half 
of the difference between clauses (1) and (2); for fiscal year 
1992, the amount of the deduction shall be four-sixths of the 
difference between clauses (1) and (2); and for fiscal year 
1993, the amount of the deduction shall be five-sixths of the 
difference between clauses (1) and (2).  
    Sec. 30.  Minnesota Statutes 1988, section 126.22, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
eligible to participate in the high school graduation incentives 
program: 
     (a) any pupil who is between the ages of 12 and 16 and who: 
     (1) is at least two grade levels below the performance 
level for pupils of the same age in a locally determined 
achievement test; or 
     (2) is at least one year behind in obtaining credits for 
graduation; or 
     (3) is pregnant or is a parent; or 
     (4) has been assessed as chemically dependent; or 
     (5) has been absent from attendance at school without 
lawful excuse for more than 15 consecutive school days in the 
preceding or current school year; 
     (b) any pupil who is between the ages of 16 and 19 who is 
attending school, and who is at least two grade levels below the 
performance level for pupils of the same age in a locally 
determined achievement test, or is at least one year behind in 
obtaining credits for graduation, or is pregnant or is a parent, 
or has been assessed as chemically dependent; or 
     (c) any person between 16 and 21 years of age who has not 
attended a high school program for at least 15 consecutive 
school days, excluding those days when school is not in session, 
and who is at least two grade levels below the performance level 
for pupils of the same age in a locally determined achievement 
test, or is at least one year behind in obtaining credits for 
graduation, or has been assessed as chemically dependent; or 
    (d) any person who is at least 21 years of age and who: 
    (1) has received less than 14 years of public or nonpublic 
education, beginning at age 5; 
    (2) has already completed the studies ordinarily required 
in the 10th grade but has not completed the requirements for a 
high school diploma or the equivalent; and 
    (3) at the time of application, (i) is eligible for 
unemployment compensation benefits or has exhausted the 
benefits, (ii) is eligible for or is receiving income 
maintenance and support services, as defined in section 
268.0111, subdivision 5, or (iii) is eligible for services under 
the displaced homemaker program, state wage-subsidy program, or 
any programs under the federal Jobs Training Partnership Act or 
its successor. 
    Notwithstanding section 127.27, subdivision 7, the 
provisions of section 127.29, subdivision 1, do not apply to 
pupils a pupil under age 17 and older 21 who participate 
participates in the high school graduation incentives program. 
    Sec. 31.  Minnesota Statutes 1988, section 126.22, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
according to subdivision 2, clause (a), (b), (c), or (d) may 
enroll in any program approved by the state board of education 
under Minnesota Rules, part 3500.3500, including area learning 
centers under sections 129B.52 to 129B.55, or according to 
section 121.11, subdivision 12. 
    (b) A pupil who is eligible according to subdivision 2, 
clause (b), (c), or (d), may enroll in secondary school courses 
upon a resolution passed by a schoool board approving 
enrollment, or may enroll in post-secondary courses under 
section 123.3514. 
    (c) A pupil who is eligible under subdivision 2, clause 
(a), (b), (c), or (d), may enroll in any public secondary 
education program.  However, a person who is eligible according 
to subdivision 2, clause (d), may enroll only if the school 
board has adopted a resolution approving the enrollment. 
    An eligible institution providing eligible programs as 
defined in this subdivision may contract with an entity 
providing adult basic education programs under the community 
education program contained in section 121.88 for actual program 
costs. 
    Sec. 32.  Minnesota Statutes 1988, section 275.125, 
subdivision 5b, is amended to read: 
    Subd. 5b.  [TRANSPORTATION LEVY OFF-FORMULA ADJUSTMENT.] In 
any fiscal year, if the basic transportation levy under 
subdivision 5 in a district attributable to a particular that 
fiscal year exceeds the transportation aid computation under 
section 124.225, subdivisions 8b, 8i, 8j, and 8k the difference 
between (1) the district's transportation revenue under section 
124.225, subdivision 7c, and (2) the sum of the district's 
permitted nonregular levy under subdivision 5c, the contracted 
services aid reduction under section 124.225, subdivision 8k, 
and the amount of any reduction due to insufficient 
appropriation under section 124.225, subdivision 8a, the 
district's levy limitation shall be adjusted as provided in this 
subdivision.  In the year following each fiscal year, the 
district's transportation levy shall be reduced by an amount 
equal to the difference between (1) the amount of the basic 
transportation levy under subdivision 5, and (2) the sum of the 
district's transportation aid computation pursuant to section 
124.225, subdivisions 8b, 8i, 8j, and 8k, and the amount of any 
subtraction made from special state aids pursuant to section 
124.2138, subdivision 2, less the amount of any aid reduction 
due to an insufficient appropriation as provided in section 
124.225, subdivision 8a transportation levy in the next fiscal 
year shall be reduced by the amount of this excess.  
    Sec. 33.  Minnesota Statutes 1988, section 275.125, 
subdivision 5c, is amended to read: 
    Subd. 5c.  [NONREGULAR TRANSPORTATION LEVY.] A school 
district may also make a levy for unreimbursed nonregular 
transportation costs pursuant to this subdivision.  The amount 
of the levy shall not exceed the product of be the result of the 
following computation:  
    (a) the district's unreimbursed nonregular transportation 
revenue determined pursuant to section 124.225, subdivision 8j, 
clause (a), times 
    (b) the lesser of 
    (i) one, or 
    (ii) the ratio of the district's adjusted gross tax 
capacity for the preceding year per total pupil unit in the 
school year to which the levy is attributable, to $83,800. 
     (a) Multiply the number of total pupil units in the 
district in the current year by 60 percent of the actual cost in 
the current year for nonregular transportation services per 
total pupil unit which exceeds $30. 
     (b) Subtract the result in paragraph (a) from the 
district's total actual cost in the current year for nonregular 
transportation services. 
     (c) Multiply the result in paragraph (b) by the lesser of 
one or the ratio of (1) the quotient derived by dividing the 
adjusted gross tax capacity of the district for the year 
preceding the year the levy is certified by the total pupil 
units in the district for the school year to which the levy is 
attributable, to (2) $10,261.  
    Sec. 34.  Minnesota Statutes 1988, section 275.125, 
subdivision 5e, is amended to read: 
    Subd. 5e.  [EXCESS TRANSPORTATION LEVY.] A school district 
may make a levy for excess transportation costs according to 
this subdivision.  The amount of the levy shall be the result of 
the following computation: 
    (a) Multiply the base cost computed using data for the 
current school year according to section 124.225, subdivision 1, 
paragraph (i), by the sum of the number of secondary FTE pupils 
transported to and from school in the current year who live more 
than one mile but less than two miles from the public school 
which they could attend or the nonpublic school actually 
attended, plus the number of FTE pupils residing less than one 
mile from school who were transported to and from school in the 
current year due to extraordinary traffic hazards number of FTE 
pupils transported in the excess category in the district in the 
current school year. 
    (b) Add to the result in paragraph (a) the actual cost in 
the current year of other related services that are necessary 
because of extraordinary traffic hazards. 
    Sec. 35.  Minnesota Statutes 1988, section 275.125, 
subdivision 9, is amended to read: 
    Subd. 9.  [LEVY REDUCTIONS; TACONITE.] (1) Reductions in 
levies pursuant to subdivision 10, and section 273.138, shall be 
made prior to the reductions in clause (2). 
     (2) Notwithstanding any other law to the contrary, 
districts which received payments pursuant to sections 298.018; 
298.23 to 298.28, except an amount distributed under section 
298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
upon severed mineral values, or recognized revenue pursuant to 
section 477A.15; shall not include a portion of these aids in 
their permissible levies pursuant to those sections, but instead 
shall reduce the permissible levies authorized by this section 
and chapters 124 and 124A by the greater of the following: 
     (a) an amount equal to 50 percent of the total dollar 
amount of the payments received pursuant to those sections or 
revenue recognized pursuant to section 477A.15 in the previous 
fiscal year; or 
     (b) an amount equal to the total dollar amount of the 
payments received pursuant to those sections or revenue 
recognized pursuant to section 477A.15 in the previous fiscal 
year less the product of the same dollar amount of payments or 
revenue times the ratio of the maximum levy allowed the district 
under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 
subdivision 5a, to the total levy allowed the district under 
this section and Minnesota Statutes 1986, sections 124A.03, 
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
5a, and 124A.20, subdivision 2, for levies certified in 1986. 
    (3) No reduction pursuant to this subdivision shall reduce 
the levy made by the district pursuant to section 124A.23, to an 
amount less than the amount raised by a levy of 12.5 mills times 
the adjusted gross tax capacity of that district for the 
preceding year as determined by the commissioner.  The amount of 
any increased levy authorized by referendum pursuant to section 
124A.03, subdivision 2, shall not be reduced pursuant to this 
subdivision.  The amount of any levy authorized by subdivision 
4, to make payments for bonds issued and for interest thereon, 
shall not be reduced pursuant to this subdivision.  
    (4) Before computing the reduction pursuant to this 
subdivision of the capital expenditure facilities levy 
authorized by section 124.244, subdivision 2, and subdivisions 
11c, 12, and 12a 124.243, the capital expenditure equipment levy 
authorized by section 124.244, the health and safety levy 
authorized by section 124.83, and subdivision 12a, and the 
community education levy authorized by subdivisions 8 and 8b, 
the commissioner shall ascertain from each affected school 
district the amount it proposes to levy for capital expenditures 
pursuant to section 124.244, subdivision 2, and subdivisions 
11c, 12, and 12a, and for community education pursuant to 
subdivisions 8 and 8b under each section or subdivision.  The 
reduction of the capital expenditure levy and the community 
education levy shall be computed on the basis of the amount so 
ascertained. 
     (5) Notwithstanding any law to the contrary, any amounts 
received by districts in any fiscal year pursuant to sections 
298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
298.405; or any law imposing a tax on severed mineral values; 
and not deducted from general education aid pursuant to section 
124A.035, subdivision 5, clause (2), and not applied to reduce 
levies pursuant to this subdivision shall be paid by the 
district to the St. Louis county auditor in the following amount 
by March 15 of each year, the amount required to be subtracted 
from the previous fiscal year's general education aid pursuant 
to section 124A.035, subdivision 5, which is in excess of the 
general education aid earned for that fiscal year.  The county 
auditor shall deposit any amounts received pursuant to this 
clause in the St. Louis county treasury for purposes of paying 
the taconite homestead credit as provided in section 273.135. 
     Sec. 36.  Minnesota Statutes 1988, section 275.125, 
subdivision 11d, is amended to read: 
    Subd. 11d.  [EXTRA CAPITAL EXPENDITURE LEVY FOR LEASING 
BUILDINGS.] When a district finds it economically advantageous 
to rent or lease a building for a secondary vocational 
cooperative program and it determines that the capital 
expenditure facilities revenues authorized under section 124.243 
are insufficient for this purpose, it may apply to the 
commissioner for permission to make an additional capital 
expenditure levy for this purpose.  An application for 
permission to levy under this subdivision must contain financial 
justification for the proposed levy, the terms and conditions of 
the proposed lease, and a description of the space to be leased 
and its proposed use.  The criteria for approval of applications 
to levy under this subdivision must include:  the reasonableness 
of the price, the appropriateness of the space to the proposed 
activity, the feasibility of transporting pupils to the leased 
building, conformity of the lease to the laws and rules of the 
state of Minnesota, and the appropriateness of the proposed 
lease to the space needs and the financial condition of the 
district.  The commissioner must not authorize a levy under this 
subdivision in an amount greater than the cost to the district 
of renting or leasing a building for approved purposes.  The 
proceeds of this levy must not be used for leasing or renting a 
facility owned by a the district making the levy or for 
custodial or other maintenance services. 
      Sec. 37.  Laws 1987, chapter 398, article 6, section 19, 
subdivision 9, is amended to read: 
    Subd. 9.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] For the 
maximum effort school loan fund there is appropriated: 
      $1,615,200 ..... 1988,
      $2,025,100 ..... 1989.
    These appropriations shall be placed in the loan repayment 
account of the maximum effort school loan fund for the payment 
of the principal and interest on school loan bonds, as provided 
in Minnesota Statutes, section 124.46, to the extent that money 
in the fund is not sufficient to pay when due the full amount of 
principal and interest due on school loan bonds.  The purpose of 
these appropriations is to ensure that sufficient money is 
available in the fund to prevent a statewide property tax levy 
as would otherwise be required pursuant to Minnesota Statutes, 
section 124.46, subdivision 3.  Notwithstanding the provisions 
of Minnesota Statutes, section 124.39, subdivision 5, any amount 
of the appropriation made in this section which is not needed to 
pay when due the principal and interest due on school loan bonds 
shall not be transferred to the debt service loan account of the 
maximum effort school loan fund but instead shall cancel and 
revert to the general fund. 
    Any unexpended balance in fiscal year 1988 does not cancel 
but is available for fiscal year 1989. 
    Sec. 38.  [INSTRUCTION TO REVISOR.] 
    In subsequent editions of Minnesota Statutes, the revisor 
of statutes is requested to change the heading of section 
124.245, from "HAZARDOUS SUBSTANCE REVENUE" to "ADJUSTMENTS TO 
CAPITAL EXPENDITURE AIDS." 
    Sec. 39.  [EFFECTIVE DATE.] 
    Sections 1, 6, 7, 9, 10, 11, 14, 15, 16, 17, 18, 19, 20, 
21, 22, 23, 24, 25, 26, 28, 29, 30, 31, 32, 33, 34, 36, and 37 
are effective the day following final enactment.  Sections 2, 3, 
4, 5, 8, 12, 13, 27, 35, and 38 are effective for the 1989-1990 
school year and thereafter. 
    Presented to the governor May 19, 1989 
    Signed by the governor May 22, 1989, 8:35 p.m.