1.1 	A bill for an act
1.2 	relating to education finance; reestablishing funding for hazardous transportation; 
1.3 	amending Minnesota Statutes 2004, section 126C.10, subdivision 18, by adding 
1.4 	subdivisions; Minnesota Statutes 2005 Supplement, section 126C.13, subdivision 
1.5 	4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 126C.10, subdivision 18, is amended to 
1.8 	read:
1.9 		Subd. 18.Pupil transportation sparsity and safety revenue ~~allowance~~. (a) A 
1.10 	district's transportation sparsity allowance equals the greater of zero or the result of the 
1.11 	following computation:
1.12 	(i) Multiply the formula allowance according to subdivision 2, by .1469.
1.13 	(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 
1.14 	26/100 power.
1.15 	(iii) Multiply the result in clause (ii) by the district's density index raised to the 
1.16 	13/100 power.
1.17 	(iv) Multiply the formula allowance according to subdivision 2, by .0485.
1.18 	(v) Subtract the result in clause (iv) from the result in clause (iii).
1.19 	(b) Transportation sparsity revenue is equal to the transportation sparsity allowance 
1.20 	times the adjusted marginal cost pupil units.
1.21 	(c) Pupil transportation safety revenue is available to a school district that has 
1.22 	established a pupil transportation safety committee under section 123B.88, subdivision 
1.23 	3a.  Pupil transportation safety revenue equals the costs necessary to transport pupils who 
1.24 	face hazardous transportation conditions and are being transported according to a plan 
1.25 	developed under section 123B.88, subdivision 3a, and adopted by the school board.  
2.1 		(d)  Pupil transportation revenue equals the sum of a district's transportation sparsity 
2.2 	revenue and its pupil transportation safety revenue.

2.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007. 

2.4 	Sec. 2. Minnesota Statutes 2004, section 126C.10, is amended by adding a subdivision 
2.5 	to read:
2.6 		Subd. 18a.Pupil transportation safety levy. A school district's pupil transportation 
2.7 	safety levy equals a district's pupil transportation safety revenue under subdivision 18 
2.8 	times the lesser of one or the ratio of the quotient derived by dividing the adjusted net 
2.9 	tax capacity of the district for the year preceding the year the levy is certified by the 
2.10 	adjusted marginal cost pupil units in the district for the school year to which the levy is 
2.11 	attributable, to $12,000.

2.12 	EFFECTIVE DATE. This section is effective for taxes payable in 2007. 

2.13 	Sec. 3. Minnesota Statutes 2004, section 126C.10, is amended by adding a subdivision 
2.14 	to read:
2.15 		Subd. 18b.Pupil transportation safety aid. A school district's pupil transportation 
2.16 	safety aid equals the difference between the district's pupil transportation safety revenue 
2.17 	under subdivision 18 and its pupil transportation levy under subdivision 18a. If a district 
2.18 	does not levy the entire amount permitted, pupil transportation safety aid must be reduced 
2.19 	in proportion to the actual amount levied.

2.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007. 

2.21 	Sec. 4. Minnesota Statutes 2005 Supplement, section 126C.13, subdivision 4, is 
2.22 	amended to read:
2.23 		Subd. 4.General education aid. ~~(a) For fiscal year 2006, a district's general~~ 
2.24 	~~education aid is the sum of the following amounts:~~
2.25 	~~(1) general education revenue, excluding equity revenue, total operating capital, and~~ 
2.26 	~~transition revenue;~~
2.27 	~~(2) operating capital aid according to section 126C.10, subdivision 13b;~~
2.28 	~~(3) equity aid according to section 126C.10, subdivision 30;~~
2.29 	~~(4) transition aid according to section 126C.10, subdivision 33;~~
2.30 	~~(5) shared time aid according to section 126C.01, subdivision 7;~~
2.31 	~~(6) referendum aid according to section 126C.17; and~~
2.32 	~~(7) online learning aid according to section 124D.096.~~
3.1 	~~(b)~~ For fiscal year 2007 and later, a district's general education aid is the sum of 
3.2 	the following amounts:
3.3 	(1) general education revenue, excluding equity revenue, total operating capital 
3.4 	revenue, alternative teacher compensation revenue, pupil transportation safety revenue, 
3.5 	and transition revenue;
3.6 	(2) operating capital aid under section 126C.10, subdivision 13b;
3.7 	(3) equity aid under section 126C.10, subdivision 30;
3.8 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
3.9 	(5) transition aid under section 126C.10, subdivision 33;
3.10 	(6) shared time aid under section 126C.01, subdivision 7;
3.11 	(7) referendum aid under section 126C.17; ~~and~~
3.12 	(8) online learning aid according to section 124D.096; and 
3.13 	(9) pupil transportation safety aid under section 126C.10, subdivision 18b.

3.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007. 

3.15 	Sec. 5. FISCAL YEAR 2007 ONLY.
 3.16 	For fiscal year 2007 only, a school district's pupil transportation safety revenue 
3.17 	is provided entirely in state aid.