1.1 	A bill for an act
1.2 	relating to education finance; authorizing an
1.3 	equalized aid and levy for certain unfunded pupil
1.4 	transportation costs; amending Minnesota Statutes
1.5 	2004, section 123B.92, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 123B.92, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 11.Pupil transportation revenue. (a) A school
1.10 	board is eligible for pupil transportation revenue equal to the
1.11 	sum of certain bus depreciation costs as defined in paragraph
1.12 	(b) and the estimated amounts necessary for pupil transportation
1.13 	costs not otherwise reimbursed in each of the following
1.14 	categories:
1.15 	(1) extraordinary hazardous transportation;
1.16 	(2) special education pupil transportation;
1.17 	(3) pupil transportation to and from area learning centers;
1.18 	(4) pupil transportation to and from programs serving
1.19 	English language learners;
1.20 	(5) pupil transportation of school-age parents and their
1.21 	children to and from school;
1.22 	(6) charter school pupil transportation;
1.23 	(7) nonpublic pupil transportation;
1.24 	(8) pupil transportation to and from programs operating a
1.25 	flexible learning year program;
2.1 	(9) pupil transportation to and from programs offering
2.2 	extended learning year services;
2.3 	(10) noon kindergarten transportation;
2.4 	(11) pupil transportation to and from kindergarten
2.5 	preparation programs; and 
2.6 	(12) pupil transportation costs of homeless pupils to and
2.7 	from school.
2.8 	(b) A school board's bus depreciation revenue equals the
2.9 	sum of:
2.10 	(1) 2.7 percent of the district's total school bus fleet
2.11 	depreciation amount as of June 30 of that year; and 
2.12 	(2) 2.7 percent of 10.7 percent of amount of contracted bus
2.13 	services for, to, and from school pupil transportation.  For a
2.14 	school district that operates a district-owned school bus, the
2.15 	entire amount earned under this paragraph must be reserved for
2.16 	the purchase of new buses.
2.17 	(c) In order to qualify for revenue under this subdivision,
2.18 	a school district must submit all necessary information to the
2.19 	Department of Education in the form and manner specified by the
2.20 	department.
2.21 	(d) A school district's pupil transportation levy equals
2.22 	the district's pupil transportation revenue computed under this
2.23 	subdivision multiplied by the lesser of one or the ratio of:
2.24 	(1) the quotient derived by dividing the adjusted net tax
2.25 	capacity of the district for the year preceding the year the
2.26 	levy is certified, by the adjusted marginal cost pupil in the
2.27 	district for the school year to which the levy is attributable;
2.28 	to 
2.29 	(2) 150 percent of statewide average adjusted net tax
2.30 	capacity per pupil unit for the same year.
2.31 	(e) A school district's pupil transportation aid is the
2.32 	difference between its revenue under paragraph (a) and its levy
2.33 	under paragraph (d).
2.34 	
EFFECTIVE DATE. This section is effective for taxes
2.35 	payable in 2006.