1.1                          A bill for an act
  1.2             relating to education; restoring pupil transportation 
  1.3             formulas; establishing inflation factors; 
  1.4             appropriating money; amending Minnesota Statutes 1996, 
  1.5             sections 124.225, subdivisions 1, 3a, 7b, 7d, and 8a; 
  1.6             124.226, subdivisions 4 and 9; and 124A.22, 
  1.7             subdivisions 1, 2, as amended, and 13b; repealing 
  1.8             Minnesota Statutes 1996, sections 124.225, 
  1.9             subdivisions 13, 14, 15, 16, and 17; 124.226, 
  1.10            subdivisions 1, 3, 3a, and 10; and 124A.22, 
  1.11            subdivisions 13 and 13a. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 124.225, 
  1.14  subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.16  section, the terms defined in this subdivision have the meanings 
  1.17  given to them. 
  1.18     (a) "FTE" means a full-time equivalent pupil whose 
  1.19  transportation is authorized for aid purposes by section 124.223.
  1.20     (b) "Authorized cost for regular transportation "Actual 
  1.21  expenditure in the regular and excess transportation categories" 
  1.22  means the sum of: 
  1.23     (1) all expenditures for transportation in the regular 
  1.24  category, as defined in paragraph (c), clause (1), for which aid 
  1.25  is authorized in section 124.223 and the excess category, as 
  1.26  defined in paragraph (c), clause (3), plus 
  1.27     (2) an amount equal to one year's depreciation on the 
  1.28  district's school bus fleet and mobile units computed on a 
  2.1   straight line basis at the rate of 15 percent per year for 
  2.2   districts operating a program under section 121.585 for grades 1 
  2.3   to 12 for all students in the district and 12-1/2 percent per 
  2.4   year for other districts of the cost of the fleet, plus 
  2.5      (3) an amount equal to one year's depreciation on district 
  2.6   school buses reconditioned by the department of corrections 
  2.7   computed on a straight line basis at the rate of 33-1/3 percent 
  2.8   per year of the cost to the district of the reconditioning, plus 
  2.9      (4) an amount equal to one year's depreciation on the 
  2.10  district's type three school buses, as defined in section 
  2.11  169.01, subdivision 6, clause (5), which must be used a majority 
  2.12  of the time for the pupil transportation purposes in sections 
  2.13  124.223 and 124.226, subdivisions 5, 8, and 9, and were 
  2.14  purchased after July 1, 1982, for authorized transportation of 
  2.15  pupils, computed on a straight line basis at the rate of 20 
  2.16  percent per year of the cost of the type three school buses.  
  2.17     (c) "Transportation category" means a category of 
  2.18  transportation service provided to pupils as follows:  
  2.19     (1) Regular transportation is transportation services 
  2.20  provided during the regular school year under section 124.223, 
  2.21  subdivisions 1 and 2, excluding the following transportation 
  2.22  services provided under section 124.223, subdivision 1:  
  2.23  transportation between schools; transportation to and from 
  2.24  service-learning programs; noon transportation to and from 
  2.25  school for kindergarten pupils attending half-day sessions; 
  2.26  transportation of pupils to and from schools located outside 
  2.27  their normal attendance areas under the provisions of a plan for 
  2.28  desegregation mandated by the state board of education or under 
  2.29  court order; and transportation of elementary pupils to and from 
  2.30  school within a mobility zone.: 
  2.31     (i) transportation to and from school during the regular 
  2.32  school year for resident elementary pupils residing one mile or 
  2.33  more from the public or nonpublic school they attend, and 
  2.34  resident secondary pupils residing two miles or more from the 
  2.35  public or nonpublic school they attend, excluding desegregation 
  2.36  transportation and noon kindergarten transportation; but with 
  3.1   respect to transportation of pupils to and from nonpublic 
  3.2   schools, only to the extent permitted by sections 123.76 to 
  3.3   123.79; 
  3.4      (ii) transportation of resident pupils to and from language 
  3.5   immersion programs; 
  3.6      (iii) transportation of a pupil who is a custodial parent 
  3.7   and that pupil's child between the pupil's home and the child 
  3.8   care provider and between the provider and the school, if the 
  3.9   home and provider are within the attendance area of the school; 
  3.10  and 
  3.11     (iv) transportation to and from or board and lodging in 
  3.12  another district, of resident pupils of a district without a 
  3.13  secondary school. 
  3.14     For the purposes of this paragraph, a district may 
  3.15  designate a licensed day care facility, respite care facility, 
  3.16  the residence of a relative, or the residence of a person chosen 
  3.17  by the pupil's parent or guardian as the home of a pupil for 
  3.18  part or all of the day, if requested by the pupil's parent or 
  3.19  guardian, and if that facility or residence is within the 
  3.20  attendance area of the school the pupil attends. 
  3.21     (2) Nonregular transportation is: 
  3.22     (i) transportation services provided under section 124.223, 
  3.23  subdivision 1, that are excluded from the regular 
  3.24  category between schools a resident pupil attends for 
  3.25  instructional classes or to and from a service learning program 
  3.26  under section 124.223, subdivision 1, paragraph (a); 
  3.27     (ii) transportation of an elementary pupil within a 
  3.28  mobility zone under section 124.223, subdivision 1, paragraphs 
  3.29  (c), (d), and (e); and 
  3.30     (iii) transportation services provided under section 
  3.31  124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
  3.32     (3) Excess transportation is transportation to and from 
  3.33  school during the regular school year for secondary pupils 
  3.34  residing at least one mile but less than two miles from the 
  3.35  public school they could attend or from the nonpublic school 
  3.36  actually attended they attend, and transportation to and from 
  4.1   school for pupils residing less than one mile from school who 
  4.2   are transported because of extraordinary traffic, drug, or crime 
  4.3   hazards. 
  4.4      (4) Desegregation transportation is transportation within 
  4.5   and outside of the district during the regular school year of 
  4.6   pupils to and from schools located outside their normal 
  4.7   attendance areas under a plan for desegregation mandated by the 
  4.8   state board or under court order.  
  4.9      (5) Handicapped transportation is transportation provided 
  4.10  under section 124.223, subdivision 4, for pupils with a 
  4.11  disability between home or a respite care facility and school or 
  4.12  other buildings where special instruction required by sections 
  4.13  120.17 and 120.1701 is provided "Transportation services for 
  4.14  pupils with disabilities" is: 
  4.15     (i) transportation of pupils with disabilities who cannot 
  4.16  be transported on a regular school bus between home or a respite 
  4.17  care facility and school; 
  4.18     (ii) necessary transportation of pupils with disabilities 
  4.19  from home or from school to other buildings, including centers 
  4.20  such as developmental achievement centers, hospitals, and 
  4.21  treatment centers where special instruction or services required 
  4.22  by sections 120.17 and 120.1701 are provided, within or outside 
  4.23  the district where services are provided; 
  4.24     (iii) necessary transportation for resident pupils with 
  4.25  disabilities required by sections 120.17, subdivision 4a, and 
  4.26  120.1701; 
  4.27     (iv) board and lodging for pupils with disabilities in a 
  4.28  district maintaining special classes; 
  4.29     (v) transportation from one educational facility to another 
  4.30  within the district for resident pupils enrolled on a 
  4.31  shared-time basis in educational programs, and necessary 
  4.32  transportation required by sections 120.17, subdivision 9, and 
  4.33  120.1701, for resident pupils with disabilities who are provided 
  4.34  special instruction and services on a shared-time basis; 
  4.35     (vi) transportation for resident pupils with disabilities 
  4.36  to and from board and lodging facilities when the pupil is 
  5.1   boarded and lodged for educational purposes; and 
  5.2      (vii) services described in clauses (i) to (vi), when 
  5.3   provided for pupils with disabilities in conjunction with a 
  5.4   summer instructional program that relates to the pupil's 
  5.5   individual education plan or in conjunction with a learning year 
  5.6   program established under section 121.585. 
  5.7      (d) "Mobile unit" means a vehicle or trailer designed to 
  5.8   provide facilities for educational programs and services, 
  5.9   including diagnostic testing, guidance and counseling services, 
  5.10  and health services.  A mobile unit located off nonpublic school 
  5.11  premises is a neutral site as defined in section 123.932, 
  5.12  subdivision 9. 
  5.13     (e) "Current year" means the school year for which aid will 
  5.14  be paid.  
  5.15     (f) "Base year" means the second school year preceding the 
  5.16  school year for which aid will be paid.  
  5.17     (g) "Base cost" means the ratio of: 
  5.18     (1) the sum of the authorized cost actual expenditures in 
  5.19  the base year for regular transportation as defined in paragraph 
  5.20  (b) (c) plus the actual cost expenditures in the base year for 
  5.21  excess transportation as defined in paragraph (c); 
  5.22     (2) to the sum of the number of weighted FTE's in the 
  5.23  regular and excess categories in the base year. 
  5.24     (h) "Pupil weighting factor" for the excess transportation 
  5.25  category for a school district means the lesser of one, or the 
  5.26  result of the following computation: 
  5.27     (1) Divide the square mile area of the school district by 
  5.28  the number of FTE's in the regular and excess categories in the 
  5.29  base year. 
  5.30     (2) Raise the result in clause (1) to the one-fifth power. 
  5.31     (3) Divide four-tenths by the result in clause (2). 
  5.32     The pupil weighting factor for the regular transportation 
  5.33  category is one.  
  5.34     (i) "Weighted FTE's"  means the number of FTE's in each 
  5.35  transportation category multiplied by the pupil weighting factor 
  5.36  for that category. 
  6.1      (j) "Sparsity index" for a school district means the 
  6.2   greater of .005 or the ratio of the square mile area of the 
  6.3   school district to the sum of the number of weighted FTE's by 
  6.4   the district in the regular and excess categories in the base 
  6.5   year. 
  6.6      (k) "Density index" for a school district means the greater 
  6.7   of one or the result obtained by subtracting the product of the 
  6.8   district's sparsity index times 20 from two. 
  6.9      (l) "Contract transportation index" for a school district 
  6.10  means the greater of one or the result of the following 
  6.11  computation: 
  6.12     (1) Multiply the district's sparsity index by 20. 
  6.13     (2) Select the lesser of one or the result in clause (1). 
  6.14     (3) Multiply the district's percentage of regular FTE's in 
  6.15  the current year using vehicles that are not owned by the school 
  6.16  district by the result in clause (2). 
  6.17     (m) "Adjusted predicted base cost" means the predicted base 
  6.18  cost as computed in subdivision 3a as adjusted under subdivision 
  6.19  7a. 
  6.20     (n) "Regular transportation allowance" means the adjusted 
  6.21  predicted base cost, inflated and adjusted under subdivision 7b. 
  6.22     Sec. 2.  Minnesota Statutes 1996, section 124.225, 
  6.23  subdivision 3a, is amended to read: 
  6.24     Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
  6.25  base cost equals the result of the following computation:  
  6.26     (a) Multiply the transportation formula allowance by the 
  6.27  district's sparsity index raised to the one-fourth power.  The 
  6.28  transportation formula allowance is $477 $521 for the 1993-1994 
  6.29  1996-1997 base year.  
  6.30     (b) Multiply the result in paragraph (a) by the district's 
  6.31  density index raised to the 1/2 power.  
  6.32     (c) Multiply the result in paragraph (b) by the district's 
  6.33  contract transportation index raised to the 1/20 power. 
  6.34     Sec. 3.  Minnesota Statutes 1996, section 124.225, 
  6.35  subdivision 7b, is amended to read: 
  6.36     Subd. 7b.  [INFLATION FACTORS.] (a) The adjusted predicted 
  7.1   base cost determined for a district under subdivision 7a for the 
  7.2   base year must be increased by zero six percent to determine the 
  7.3   district's regular transportation allowance for the 1995-1996 
  7.4   current school year. 
  7.5      (b) Notwithstanding paragraph (a), the regular 
  7.6   transportation allowance for a district for the 1995-1996 
  7.7   current school year cannot be less than the district's minimum 
  7.8   regular transportation allowance according to Minnesota Statutes 
  7.9   1990, section 124.225, subdivision 1, paragraph (t). 
  7.10     Sec. 4.  Minnesota Statutes 1996, section 124.225, 
  7.11  subdivision 7d, is amended to read: 
  7.12     Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
  7.13  for each district equals the sum of the district's regular 
  7.14  transportation revenue and the district's nonregular 
  7.15  transportation revenue. 
  7.16     (a) The regular transportation revenue for each district 
  7.17  equals the district's regular transportation allowance according 
  7.18  to subdivision 7b times the sum of the number of FTE's by the 
  7.19  district in the regular, desegregation, and handicapped pupils 
  7.20  with disabilities categories in the current school year. 
  7.21     (b) For the 1995-1996 school year, The nonregular 
  7.22  transportation revenue for each district equals the lesser of 
  7.23  the district's actual cost in the current school year for 
  7.24  nonregular transportation services or the product of the 
  7.25  district's actual cost in the base year for nonregular 
  7.26  transportation services as defined for the current year in 
  7.27  subdivision 1, paragraph (c), times the ratio of the district's 
  7.28  average daily membership for the current year to the district's 
  7.29  average daily membership for the base year according to section 
  7.30  124.17, subdivision 2, times the nonregular transportation 
  7.31  inflation factor for the current year, minus the amount of 
  7.32  regular transportation revenue attributable to FTE's in the 
  7.33  desegregation and handicapped pupils with disabilities 
  7.34  categories in the current school year, plus the excess 
  7.35  nonregular transportation revenue for the current year according 
  7.36  to subdivision 7e.  The nonregular transportation inflation 
  8.1   factor is 1.0 1.06 for the 1995-1996 1998-1999 and later school 
  8.2   year years.  
  8.3      Sec. 5.  Minnesota Statutes 1996, section 124.225, 
  8.4   subdivision 8a, is amended to read: 
  8.5      Subd. 8a.  [TRANSPORTATION AID.] (a) A district's 
  8.6   transportation aid equals the product of: 
  8.7      (1) the difference between the transportation revenue and 
  8.8   the sum of: 
  8.9      (i) the maximum basic transportation levy for that school 
  8.10  year under section 124.226, subdivision 1, plus 
  8.11     (ii) the maximum nonregular transportation levy for that 
  8.12  school year under section 124.226, subdivision 4, plus 
  8.13     (iii) (ii) the contracted services aid reduction under 
  8.14  subdivision 8k, 
  8.15     (2) times the ratio of the sum of the actual amounts levied 
  8.16  under section 124.226, subdivisions 1 and subdivision 4, to the 
  8.17  sum of the permitted maximum levies under section 
  8.18  124.226, subdivisions 1 and subdivision 4. 
  8.19     (b) If the total appropriation for transportation aid for 
  8.20  any fiscal year is insufficient to pay all districts the full 
  8.21  amount of aid earned, the department of children, families, and 
  8.22  learning shall reduce each district's aid in proportion to the 
  8.23  number of resident pupils in average daily membership in the 
  8.24  district to the state total average daily membership, and shall 
  8.25  reduce the transportation levy of off-formula districts in the 
  8.26  same proportion. 
  8.27     Sec. 6.  Minnesota Statutes 1996, section 124.226, 
  8.28  subdivision 4, is amended to read: 
  8.29     Subd. 4.  [NONREGULAR TRANSPORTATION.] A school district 
  8.30  may also make a levy for unreimbursed nonregular transportation 
  8.31  costs pursuant to this subdivision.  
  8.32     For the 1995-1996 school year, The amount of the levy shall 
  8.33  be the result of the following computation: 
  8.34     (1) multiply 
  8.35     (i) the amount of the district's nonregular transportation 
  8.36  revenue under section 124.225, subdivision 7d, that is more than 
  9.1   the product of $65 times the district's average daily 
  9.2   membership, by 
  9.3      (ii) 50 percent; 
  9.4      (2) subtract the result in clause (1) from the district's 
  9.5   total nonregular transportation revenue; 
  9.6      (3) multiply the result in clause (2) by the lesser of one 
  9.7   or the ratio of 
  9.8      (i) the quotient derived by dividing the adjusted net tax 
  9.9   capacity of the district for the year before the year the levy 
  9.10  is certified by the average daily membership in the district for 
  9.11  the school year to which the levy is attributable, to 
  9.12     (ii) $8,000. 
  9.13     Sec. 7.  Minnesota Statutes 1996, section 124.226, 
  9.14  subdivision 9, is amended to read: 
  9.15     Subd. 9.  [LATE ACTIVITY BUSES.] (a) For taxes payable in 
  9.16  1996, A school district may levy an amount equal to the lesser 
  9.17  of: 
  9.18     (1) the actual cost of late transportation home from 
  9.19  school, between schools within a district, or between schools in 
  9.20  one or more districts that have an agreement under sections 
  9.21  122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
  9.22  involved in after school activities for the that school year 
  9.23  beginning in the year the levy is certified; or 
  9.24     (2) two percent of the sum of the district's regular 
  9.25  transportation revenue and the district's nonregular 
  9.26  transportation revenue for that school year according to section 
  9.27  124.225, subdivision 7d. 
  9.28     (b) A district that levies under this section must provide 
  9.29  late transportation from school for students participating in 
  9.30  any academic-related activities provided by the district if 
  9.31  transportation is provided for students participating in 
  9.32  athletic activities. 
  9.33     (c) Notwithstanding section 121.904, 50 percent of the levy 
  9.34  certified for taxes payable in 1994, and for each year 
  9.35  thereafter the entire amount of this levy, shall be recognized 
  9.36  as revenue for the fiscal year in which the levy is certified. 
 10.1      Sec. 8.  Minnesota Statutes 1996, section 124A.22, 
 10.2   subdivision 1, is amended to read: 
 10.3      Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 10.4   year 1996, the general education revenue for each district 
 10.5   equals the sum of the district's basic revenue, compensatory 
 10.6   education revenue, training and experience revenue, secondary 
 10.7   sparsity revenue, elementary sparsity revenue, and supplemental 
 10.8   revenue. 
 10.9      (b) For fiscal year 1997 1999 and thereafter, the general 
 10.10  education revenue for each district equals the sum of the 
 10.11  district's basic revenue, compensatory education revenue, 
 10.12  secondary sparsity revenue, elementary sparsity revenue, 
 10.13  transportation sparsity, total operating capital revenue, 
 10.14  transition revenue, and supplemental revenue. 
 10.15     Sec. 9.  Minnesota Statutes 1996, section 124A.22, 
 10.16  subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 
 10.17  amended to read: 
 10.18     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 10.19  district equals the formula allowance times the actual pupil 
 10.20  units for the school year.  The formula allowance for fiscal 
 10.21  year 1995 is $3,150.  The formula allowance for fiscal year 1996 
 10.22  is $3,205.  The formula allowance for fiscal year years 1997 and 
 10.23  subsequent fiscal years 1998 is $3,505.  The formula allowance 
 10.24  for fiscal year 1999 and subsequent years is $3,335. 
 10.25     Sec. 10.  Minnesota Statutes 1996, section 124A.22, 
 10.26  subdivision 13b, is amended to read: 
 10.27     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 10.28  transportation transition allowance for fiscal year 1997 equals 
 10.29  the result of the following computation: 
 10.30     (1) if the result in subdivision 13a, paragraph (a), clause 
 10.31  (iii), for fiscal year 1997 is less than the fiscal year 1996 
 10.32  base allowance, the transportation transition allowance equals 
 10.33  the fiscal year 1996 base allowance minus the result in 
 10.34  subdivision 13a, paragraph (a), clause (iii). 
 10.35     (2) if the result in subdivision 13a, paragraph (b), for 
 10.36  fiscal year 1997 is greater than the fiscal year 1996 base 
 11.1   allowance and less than 110 percent of the fiscal year 1996 base 
 11.2   allowance, the transportation transition allowance equals zero. 
 11.3      (3) if the result in subdivision 13a, paragraph (b), for 
 11.4   fiscal year 1997 is greater than 110 percent of the fiscal year 
 11.5   1996 base allowance, the transportation transition allowance 
 11.6   equals 110 percent of the fiscal year 1996 base allowance minus 
 11.7   the result in subdivision 13a, paragraph (a), clause (iii). 
 11.8      (b) A district's transportation transition allowance for 
 11.9   fiscal year 1998 equals the result of the following: 
 11.10     (1) if the result in subdivision 13a, paragraph (a), clause 
 11.11  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 11.12  base allowance, the transportation transition allowance equals 
 11.13  the fiscal year 1996 base allowance minus the result in 
 11.14  subdivision 13a, paragraph (a), clause (iii); or 
 11.15     (2) if the result in subdivision 13a, paragraph (a), clause 
 11.16  (iii), for fiscal year 1998 is greater than or equal to the 
 11.17  fiscal year 1996 base allowance, the transportation transition 
 11.18  allowance equals zero. 
 11.19     (c) For fiscal years 1997 and 1998, a district's training 
 11.20  and experience transition allowance is equal to the training and 
 11.21  experience revenue the district would have received under 
 11.22  Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 11.23  by the actual pupil units for fiscal year 1997 minus $130.  For 
 11.24  fiscal year 1999 and later, a district's training and experience 
 11.25  transition allowance equals zero.  
 11.26     If the training and experience transition allowance is less 
 11.27  than zero, the reduction shall be determined according to the 
 11.28  following schedule: 
 11.29     (i) (1) for fiscal year 1997, the reduction is equal to .9 
 11.30  times the amount initially determined; 
 11.31     (ii) (2) for fiscal year 1998, the reduction is equal to 
 11.32  .75 times the amount initially determined; 
 11.33     (iii) (3) for fiscal year 1999, the reduction is equal to 
 11.34  .50 times the amount initially determined; 
 11.35     (iv) (4) for fiscal year 2000, the reduction is equal to 
 11.36  .25 times the amount initially determined; and 
 12.1      (v) (5) for fiscal year 2001 and thereafter, the transition 
 12.2   allowance shall not be less than zero.  
 12.3      (d) A district's transition allowance for fiscal year 1997 
 12.4   and thereafter is equal to the sum of its transportation 
 12.5   transition allowance and its training and experience transition 
 12.6   allowance. 
 12.7      Sec. 11.  [APPROPRIATIONS.] 
 12.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 12.9   LEARNING.] The sums indicated in this section are appropriated 
 12.10  from the general fund to the department of children, families, 
 12.11  and learning in the fiscal years designated. 
 12.12     Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
 12.13  according to Minnesota Statutes, section 124.225: 
 12.14        $ 75,728,000     ....    1998
 12.15        $232,794,000     ....    1999
 12.16     The 1998 appropriation includes $7,148,000 for fiscal year 
 12.17  1997 and $68,580,000 for fiscal year 1998.  The 1999 
 12.18  appropriation includes $7,619,000 for fiscal year 1998 and 
 12.19  $225,180,000 for fiscal year 1999. 
 12.20     Sec. 12.  [REPEALER.] 
 12.21     Minnesota Statutes 1996, sections 124.225, subdivisions 13, 
 12.22  14, 15, 16, and 17; 124.226, subdivisions 1, 3, 3a, and 10; 
 12.23  124A.22, subdivisions 13 and 13a, are repealed effective for 
 12.24  revenue for fiscal year 1999. 
 12.25     Sec. 13.  [EFFECTIVE DATE.] 
 12.26     Sections 1 to 10 are effective for fiscal year 1999 and 
 12.27  later.