Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

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

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 461-S.F.No. 2886 
                  An act relating to state finance; setting the amount 
                  of the budget reserve; reducing the property tax 
                  recognition shift; providing for adjustments to 
                  appropriations following forecasts of general fund 
                  revenues and expenditures; appropriating money; 
                  amending Minnesota Statutes 1995 Supplement, sections 
                  16A.152, subdivision 2; and 121.904, subdivision 4a; 
                  repealing 1996 House File No. 2156, article 14, 
                  section 4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        16A.152, subdivision 2, is amended to read: 
           Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] If on the basis 
        of a forecast of general fund revenues and expenditures the 
        commissioner of finance determines that there will be a positive 
        unrestricted budgetary general fund balance at the close of the 
        biennium, the commissioner of finance must allocate money to the 
        budget reserve until the total amount in the account is 
        $220,000,000 $270,000,000.  An amount equal to any additional 
        biennial unrestricted budgetary general fund balances balance 
        made available after November 1 of every as the result of a 
        forecast in an odd-numbered calendar year are after November 1 
        is appropriated in January of the following year to reduce the 
        property tax levy recognition percent under section 121.904, 
        subdivision 4a, to zero before additional money 
        beyond $220,000,000 $270,000,000 is allocated to the budget 
        reserve account.  The amount appropriated is the full amount 
        forecast to be available at the end of the biennium and is not 
        limited to the amount forecast to be available at the end of the 
        current fiscal year. 
           The amounts necessary to meet the requirements of this 
        section are appropriated from the general fund. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, 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 124.914, subdivision 1. 
           (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 May, 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 an amount equal to the levy 
        recognized as revenue in June of the prior year plus 48 31 
        percent for fiscal year 1996 and thereafter 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) 48 18.1 percent for fiscal year 1996, the percent 
        determined under section 3 for fiscal year 1997 and that same 
        percent thereafter 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 124.914, 
        subdivision 1; 
           (iii) retirement and severance pay pursuant to sections 
        122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
        124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
        1975, chapter 261, section 4; 
           (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, 
        and amounts levied pursuant to section 136C.411; and 
           (v) amounts levied under section 124.755.  
           Notwithstanding the foregoing, the levy recognition 
        percentage for the referendum levy certified according to 
        section 124A.03, subdivision 2, is 31 percent. 
           (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. 3.  [1997 PROPERTY TAX RECOGNITION SHIFT ADJUSTMENT.] 
           Subdivision 1.  [ADJUSTMENT.] The commissioner of finance 
        shall adjust the property tax recognition shift percentage for 
        fiscal year 1997 under Minnesota Statutes, section 121.904, 
        subdivision 4a, paragraph (b), clause (3), according to this 
        section. 
           Subd. 2.  [APPROPRIATION.] $180,000,000 is appropriated 
        from the general fund to the commissioner of children, families, 
        and learning for fiscal year 1997 to reduce the property tax 
        levy recognition percentage under Minnesota Statutes, section 
        121.904, subdivision 4a, paragraph (b), clause (3).  This 
        appropriation replaces the appropriation for fiscal year 1997 
        made under Minnesota Statutes, section 16A.152, subdivision 2, 
        as a result of the November 1995 forecast. 
           Subd. 3.  [NOVEMBER 1996 DEFICIT CONTINGENCY.] 
        Notwithstanding Minnesota Statutes, section 16A.152, subdivision 
        4, if the commissioner of finance determines on the basis of a 
        forecast of general fund revenues and expenditures issued before 
        January 1, 1997, that the unrestricted budgetary general fund 
        balance at the close of the 1996-1997 biennium will show a 
        deficit, the commissioner of finance shall first act to reduce 
        the deficit by increasing the property tax recognition 
        percentage under Minnesota Statutes, section 121.904, 
        subdivision 4a, paragraph (b), clause (3), but not above 18.1 
        percent.  The appropriation in subdivision 2 is reduced 
        accordingly.  The commissioner of finance shall make up any 
        additional deficit by reducing the amount in the budget reserve 
        in accordance with Minnesota Statutes, section 16A.152, 
        subdivision 4. 
           Subd. 4.  [NOVEMBER 1996 SURPLUS CONTINGENCY.] 
        Notwithstanding Minnesota Statutes, section 16A.152, subdivision 
        4, if the commissioner of finance determines on the basis of a 
        forecast of general fund revenues and expenditures issued before 
        January 1, 1997, that the unrestricted budgetary general fund 
        balance at the close of the 1996-1997 biennium will show a 
        surplus, the amount of the surplus is appropriated from the 
        general fund to an education aid reserve account, except that 
        the amount appropriated must not exceed the forecast value of 
        the cost of reducing the property tax levy recognition 
        percentage under Minnesota Statutes, section 121.904, 
        subdivision 4a, paragraph (b), clause (3), to zero in fiscal 
        year 1997.  The balance in the account does not cancel but may 
        not be expended until appropriated by law for education aid for 
        fiscal years 1998 and 1999. 
           Subd. 5.  [PERCENTAGE CERTIFICATION.] The commissioner of 
        finance shall determine the amount available to reduce the 
        property tax levy recognition percentage after giving effect to 
        subdivisions 2 and 3, and shall certify it to the commissioner 
        of children, families, and learning by January 5, 1997.  The 
        commissioner of children, families, and learning shall calculate 
        the percentage using the method specified in section 121.904, 
        subdivision 4c, and shall notify school districts of the 
        resulting change in the levy recognition percentage by January 
        15, 1997. 
           Sec. 4.  [BUDGET RESERVE 1996.] 
           The amount necessary to bring the budget reserve to 
        $270,000,000 on July 1, 1996, is appropriated from the general 
        fund to the commissioner of finance for transfer to the budget 
        reserve on that date. 
           Sec. 5.  [REPEALER.] 
           1996 H.F. No. 2156, article 14, section 4, if enacted, is 
        repealed. 
           Sec. 6.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 11, 1996, 12:02 p.m.