1997 Minnesota Statutes

     124.2726 Consolidation transition revenue. 

    Subdivision 1.    Eligibility and use.  A school 
 district that has been reorganized after June 30, 1994, under 
 section 122.23 is eligible for consolidation transition revenue. 
 Revenue is equal to the sum of aid under subdivision 2 and levy 
 under subdivision 3.  Consolidation transition revenue may only 
 be used according to this section.  Revenue must be used for the 
 following purposes and may be distributed among these purposes 
 at the discretion of the district: 

    (1) to offer early retirement incentives as provided by 
 section 122.23, subdivision 20; 

    (2) to reduce operating debt as defined in section 121.915; 

    (3) to enhance learning opportunities for students in the 
 reorganized district; and 

    (4) for other costs incurred in the reorganization. 

    Revenue received and utilized under clause (3) or (4) may 
 be expended for operating, facilities, and/or equipment.  
 Revenue received under this section shall not be included in the 
 determination of the reduction under section 124A.26, 
 subdivision 1.  

    Subd. 2.    Aid.  (a) Consolidation transition aid is 
 equal to $200 times the number of actual pupil units in the 
 newly created district in the year of consolidation and $100 
 times the number of actual pupil units in the first year 
 following the year of consolidation.  The number of pupil units 
 used to calculate aid in either year shall not exceed 1,000 for 
 districts consolidating July 1, 1994, and 1,500 for districts 
 consolidating July 1, 1995, and thereafter.  

    (b) If the total appropriation for consolidation transition 
 aid for any fiscal year, plus any amount transferred under 
 section 124.14, subdivision 7, is insufficient to pay all 
 districts the full amount of aid earned, the department of 
 children, families, and learning shall first pay the districts 
 in the first year following the year of consolidation the full 
 amount of aid earned and distribute any remaining funds to the 
 newly created districts in the first year of consolidation. 

    Subd. 3.    Levy.  If the aid available in subdivision 2 
 is insufficient to cover the costs of the district under section 
 122.23, subdivision 20, the district may levy the difference 
 over a period of time not to exceed three years.  

    Subd. 4.    New districts.  If a district consolidates 
 with another district that has received aid under section 
 124.2725 or 124.2726 within six years of the effective date of 
 the new consolidation, only the pupil units in the district or 
 districts not previously reorganized shall be counted for aid 
 purposes under subdivision 2.  If two or more districts 
 consolidate and all districts received aid under subdivision 2 
 within six years of the effective date of the new consolidation, 
 only one quarter of the pupil units in the newly created 
 district shall be used to determine aid under subdivision 2.  

    HIST: 1994 c 647 art 6 s 23; 1Sp1995 c 3 art 6 s 10-12; art 16 
 s 13