1.1                          A bill for an act 
  1.2             relating to education funding; consolidating 
  1.3             supplemental revenue and transition revenue; providing 
  1.4             state aid for levies that are recognized early; 
  1.5             amending Minnesota Statutes 1998, sections 123B.75, by 
  1.6             adding a subdivision; 126C.10, subdivisions 1 and 19; 
  1.7             126C.13, subdivisions 2, 3, and 4; and 127A.45, 
  1.8             subdivision 13, and by adding a subdivision; repealing 
  1.9             Minnesota Statutes 1998, section 126C.10, subdivisions 
  1.10            9, 10, 11, and 12. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 123B.75, is 
  1.13  amended by adding a subdivision to read: 
  1.14     Subd. 6a.  [INTEGRATION AID.] Integration aid received 
  1.15  under section 127A.45, subdivision 12a, must be recognized in 
  1.16  the same fiscal year as the integration levy. 
  1.17     Sec. 2.  Minnesota Statutes 1998, section 126C.10, 
  1.18  subdivision 1, is amended to read: 
  1.19     Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
  1.20  year ~~1999~~ 2000 and thereafter, the general education revenue for 
  1.21  each district equals the sum of the district's basic revenue, 
  1.22  basic skills revenue, training and experience revenue, secondary 
  1.23  sparsity revenue, elementary sparsity revenue, transportation 
  1.24  sparsity revenue, total operating capital revenue, graduation 
  1.25  standards implementation revenue, and transition revenue~~, and~~ 
  1.26  ~~supplemental revenue~~. 
  1.27     Sec. 3.  Minnesota Statutes 1998, section 126C.10, 
  1.28  subdivision 19, is amended to read: 
  2.1      Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
  2.2   transportation transition allowance ~~for fiscal year 1998 and~~ 
  2.3   ~~later~~ equals the result of the following: 
  2.4      (1) if the result in subdivision 18, paragraph (a), clause 
  2.5   (iii), for fiscal year 1998 is less than the fiscal year 1996 
  2.6   base allowance, the transportation transition allowance equals 
  2.7   the fiscal year 1996 base allowance minus the result in 
  2.8   subdivision 18, paragraph (a), clause (iii); or 
  2.9      (2) if the result in subdivision 18, paragraph (a), clause 
  2.10  (iii), for fiscal year 1998 and later is greater than or equal 
  2.11  to the fiscal year 1996 base allowance, the transportation 
  2.12  transition allowance equals zero. 
  2.13     (b) A district's compensatory transition allowance equals 
  2.14  the greater of zero or the difference between:  
  2.15     (1) the amount of compensatory revenue the district would 
  2.16  have received under subdivision 3 for fiscal year 1998 computed 
  2.17  using a basic formula allowance of $3,281; and 
  2.18     (2) the amount the district receives under subdivision 3; 
  2.19  divided by 
  2.20     (3) the district's actual pupil units for fiscal year 1998. 
  2.21     (c) A district's cooperation transition allowance for 
  2.22  fiscal year 2001 and later equals the greater of zero or the 
  2.23  difference between:  
  2.24     (1) $25,000; and 
  2.25     (2) $67 times the district's resident pupil units for 
  2.26  fiscal year 2001. 
  2.27     (d) A district's supplemental allowance equals its 
  2.28  supplemental revenue allowance for fiscal year 1999. 
  2.29     (e) ~~A district's transition allowance for fiscal year 1999~~ 
  2.30  ~~is equal to the sum of its transportation transition allowance~~ 
  2.31  ~~and its compensatory transition allowance.~~  A district's 
  2.32  transition allowance for fiscal year 2000 and thereafter is 
  2.33  equal to the sum of its transportation transition allowance, its 
  2.34  compensatory transition allowance, supplemental allowance, and 
  2.35  its cooperation transition allowance. 
  2.36     Sec. 4.  Minnesota Statutes 1998, section 126C.13, 
  3.1   subdivision 2, is amended to read: 
  3.2      Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
  3.3   education revenue, excluding transition revenue ~~and supplemental~~ 
  3.4   ~~revenue~~, a district may levy an amount not to exceed the general 
  3.5   education tax rate times the adjusted net tax capacity of the 
  3.6   district for the preceding year.  If the amount of the general 
  3.7   education levy would exceed the general education revenue, 
  3.8   excluding ~~supplemental~~ transition revenue, the general education 
  3.9   levy must be determined according to subdivision 3.  
  3.10     Sec. 5.  Minnesota Statutes 1998, section 126C.13, 
  3.11  subdivision 3, is amended to read: 
  3.12     Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
  3.13  FORMULA.] If the amount of the general education levy for a 
  3.14  district exceeds the district's general education revenue, 
  3.15  excluding transition revenue ~~and supplemental revenue~~, the 
  3.16  amount of the general education levy must be limited to the 
  3.17  following: 
  3.18     (1) the district's general education revenue, excluding 
  3.19  transition revenue ~~and supplemental revenue~~; plus 
  3.20     (2) the amount of the aid reduction for the same school 
  3.21  year according to section 126C.14; minus 
  3.22     (3) payments made for the same school year according to 
  3.23  section 126C.21, subdivision 3. 
  3.24     For purposes of statutory cross-reference, a levy made 
  3.25  according to this subdivision shall be construed to be the levy 
  3.26  made according to subdivision 2. 
  3.27     Sec. 6.  Minnesota Statutes 1998, section 126C.13, 
  3.28  subdivision 4, is amended to read: 
  3.29     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
  3.30  education aid is the sum of the following amounts:  
  3.31     (1) the product of (i) the difference between the general 
  3.32  education revenue, excluding transition revenue ~~and supplemental~~ 
  3.33  ~~revenue~~, and the general education levy, times (ii) the ratio of 
  3.34  the actual amount levied to the permitted levy; 
  3.35     (2) transition aid according to section 126C.10, 
  3.36  subdivision 22; 
  4.1      (3) ~~supplemental aid according to section 127A.49;~~ 
  4.2      ~~(4)~~ shared time aid according to section 126C.01, 
  4.3   subdivision 7; and 
  4.4      ~~(5)~~ (4) referendum aid according to section 126C.17. 
  4.5      Sec. 7.  Minnesota Statutes 1998, section 127A.45, is 
  4.6   amended by adding a subdivision to read: 
  4.7      Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] Nineteen 
  4.8   percent of the state aid in fiscal year 1999, and 31 percent of 
  4.9   the state aid in fiscal years 2000 and later received under 
  4.10  section 124D.86 must be paid by the state to the recipient 
  4.11  school district on July 15 of that year.  The recipient school 
  4.12  district must recognize this aid in the same fiscal year as the 
  4.13  levy is recognized. 
  4.14     Sec. 8.  Minnesota Statutes 1998, section 127A.45, 
  4.15  subdivision 13, is amended to read: 
  4.16     Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
  4.17  subdivisions 11, 12, 12a, and 14, each fiscal year, all 
  4.18  education aids and credits in this chapter and chapters 120A, 
  4.19  120B, 121A, 122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, 
  4.20  and section 273.1392, shall be paid at 90 percent of the 
  4.21  estimated entitlement during the fiscal year of the 
  4.22  entitlement.  The final adjustment payment, according to 
  4.23  subdivision 9, must be the amount of the actual entitlement, 
  4.24  after adjustment for actual data, minus the payments made during 
  4.25  the fiscal year of the entitlement. 
  4.26     Sec. 9.  [REPEALER.] 
  4.27     Minnesota Statutes 1998, section 126C.10, subdivisions 9, 
  4.28  10, 11, and 12, are repealed July 1, 1999. 
  4.29     Sec. 10.  [EFFECTIVE DATE.] 
  4.30     Sections 1 to 9 are effective for revenue for fiscal year 
  4.31  2000 and later.