1997 Minnesota Statutes

CHAPTER 124A. General education revenue

  124A.01 Repealed, 1987 c 398 art 1 s 27 subd 3 

     124A.02 Definitions. 

    Subdivision 1.    Applicability.  For the purpose of 
 this chapter and chapter 124, the following terms have the 
 meaning given them.  

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 3.  Renumbered 124A.02 subd 14 

    Subd. 3a.    Adjusted net tax capacity.  "Adjusted net 
 tax capacity" means the net tax capacity of the taxable property 
 of the school district as adjusted by the commissioner of 
 revenue under section 124.2131.  The adjusted net tax capacity 
 for any given calendar year shall be used to compute levy 
 limitations for levies certified in the succeeding calendar year 
 and aid for the school year beginning in the second succeeding 
 calendar year. 

    Subd. 3b.    Referendum market value.  "Referendum 
 market value" means the market value of all taxable property, 
 except that any class of property, or any portion of a class of 
 property, with a class rate of less than one percent under 
 section 273.13 shall have a referendum market value equal to its 
 net tax capacity multiplied by 100. 

    Subd. 4.  Renumbered 124A.02 subd 23 

    Subd. 4a. Repealed, 1Sp1985 c 12 art 1 s 37 subd 1 

    Subd. 5.  Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 5a.  Repealed, 1988 c 486 s 102 

    Subd. 6.  Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 7.  Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 8.    Equalizing factor.  "Equalizing factor" 
 means the ratio, rounded to the nearest dollar, of the formula 
 allowance to the general education tax rate for the 
 corresponding year.  

    Subd. 9.  Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 10.    Levy use.  A levy "for use in a particular 
 school year," "attributable to a particular school year," or 
 "recognized as revenue in a particular school year," means the 
 levy certified in the calendar year ending in the school year 
 preceding that particular school year, and payable in the 
 calendar year in which that school year begins. 

    Subd. 11.  Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 12.  Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 13.  Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 14. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 15.    Pupil units, actual.  "Actual pupil units" 
 means pupil units identified in section 124.17, subdivision 1.  

    Subd. 16.    Pupil units, AFDC.  "AFDC pupil units" for 
 fiscal year 1993 and thereafter means pupil units identified in 
 section 124.17, subdivision 1d.  

    Subd. 17. Repealed, 1Sp1985 c 12 art 1 s 37 subd 1 

    Subd. 18. Repealed, 1Sp1985 c 12 art 1 s 37 subd 1 

    Subd. 19. Repealed, 1991 c 130 s 38; 1991 c 265 art 1 s 
 33 

    Subd. 20.    Shared time average daily membership.  The 
 average daily membership of a pupil enrolled on a shared time 
 basis shall equal the ratio of the total minutes for which the 
 pupil is enrolled and the minimum minutes required during the 
 year for a regularly enrolled public school pupil.  

    Subd. 21.    Shared time aid.  Aid for shared time 
 pupils shall equal the formula allowance times the full-time 
 equivalent actual pupil units for shared time pupils.  Aid for 
 shared time pupils shall be in addition to any other aid to 
 which the district is otherwise entitled.  Shared time average 
 daily membership shall not be used in the computation of pupil 
 units under section 124.17, subdivision 1, for any purpose other 
 than the computation of shared time aid pursuant to subdivisions 
 20 to 22 and section 124A.034, subdivisions 1 to 1b. 

    Subd. 22.    Shared time pupils.  Shared time pupils are 
 defined as those pupils who attend public school programs for 
 part of the regular school day and who otherwise fulfill the 
 requirements of section 120.101 by attendance at a nonpublic 
 school.  

    Subd. 23.    Training and experience index.  "Training 
 and experience index" means a measure of a district's teacher 
 training and experience relative to the education and experience 
 of teachers in the state.  The measure shall be determined 
 pursuant to section 124A.04. 

    Subd. 24.    Average salary for beginning teachers.  
 "Average salary for beginning teachers" means the average salary 
 for all teachers in the state who are in their first year of 
 teaching and who have no additional credits or degrees above a 
 bachelor's degree.  At least biennially, the department shall 
 recompute this average using complete new data. 

    Subd. 25.    Net unappropriated operating fund balance.  
 "Net unappropriated operating fund balance" means the sum of the 
 fund balances in the general, food service, and community 
 service funds minus the balances reserved for statutory 
 operating debt reduction, bus purchase, severance pay, taconite, 
 reemployment insurance, maintenance levy reduction, operating 
 capital, disabled access, health and safety, and encumbrances, 
 computed as of June 30 each year. 

    HIST: 1981 c 358 art 1 s 20,21,25,26; 1Sp1981 c 2 s 5; 3Sp1981 
 c 2 art 2 s 4,5,6; art 4 s 4; 1982 c 548 art 1 s 3,4,8; art 7 s 
 5; 1983 c 314 art 1 s 1,2,4,5,9,22; 1984 c 463 art 1 s 3,4,5; 
 1Sp1985 c 12 art 1 s 9-13; 1Sp1985 c 14 art 4 s 23,24; 1Sp1986 c 
 1 art 9 s 15,16; 1Sp1986 c 3 art 1 s 18; 1987 c 268 art 6 s 5; 
 art 7 s 12,13; 1987 c 398 art 1 s 4-7; 1988 c 486 s 46-48; 1988 
 c 719 art 5 s 4,5,84; 1989 c 209 art 2 s 1; 1989 c 329 art 13 s 
 20; 1Sp1989 c 1 art 2 s 11; 1991 c 265 art 1 s 8,9; 1994 c 488 s 
 8; 1994 c 647 art 1 s 13,14; 1Sp1995 c 3 art 13 s 6; 1996 c 412 
 art 1 s 13 

*   NOTE:  Subdivisions 16, 23, and 24 are repealed effective 
*June 30, 1999.  Laws 1992, chapter 499, article 7, section 31.

     124A.029 Referendum and desegregation revenue conversion.

    Subdivision 1.    Revenue conversion.  Except as 
 provided under subdivision 4, the referendum authority under 
 section 124A.03 and the levy authority under section 124.912, 
 subdivisions 2 and 3, of a school district must be converted by 
 the department according to this section. 

    Subd. 2.    Adjustment ratio.  For assessment years 
 1991, 1992, and 1993, the commissioner of revenue must determine 
 for each school district a ratio equal to: 

    (1) the net tax capacity for taxable property in the 
 district determined by applying the property tax class rates for 
 assessment year 1990 to the market values of taxable property 
 for each assessment year, divided by 

    (2) the net tax capacity of the district for the assessment 
 year. 

    Subd. 3.    Rate adjustment.  The department shall 
 adjust a school district's referendum authority for a referendum 
 approved before July 1, 1991, excluding authority based on a 
 dollar amount, and the levy authority under section 124.912, 
 subdivisions 2 and 3, by multiplying the sum of the rates 
 authorized by a district under section 124A.03 and the rates in 
 section 124.912, subdivisions 2 and 3, by the ratio determined 
 under subdivision 2 for the assessment year for which the 
 revenue is attributable.  The adjusted rates for assessment year 
 1993 shall apply to later years for which the revenue is 
 authorized. 

    Subd. 4.    Per pupil revenue conversion.  (a) The 
 department shall convert each district's referendum revenue 
 authority for fiscal year 2002 and later years to an allowance 
 per pupil unit as follows:  the revenue allowance equals the 
 amount determined by dividing the district's maximum revenue 
 under section 124A.03, for fiscal year 2001 by the district's 
 2000-2001 actual pupil units.  A district's maximum revenue for 
 all later years for which the revenue is authorized equals the 
 revenue allowance times the district's actual pupil units for 
 that year.  

    (b) The referendum allowance reduction shall be applied 
 first to the authority with the earliest expiration date. 

    HIST: 1991 c 130 s 37; 1992 c 499 art 1 s 10; art 12 s 29; 
 1993 c 224 art 15 s 1; 1994 c 647 art 1 s 15; 1996 c 412 art 1 s 
 14 

     124A.03 Referendum revenue. 

    Subdivision 1. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 1a. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 1b.    Referendum allowance.  A district's 
 referendum revenue allowance equals the referendum revenue 
 authority for that year divided by its actual pupil units for 
 that school year. 

    Subd. 1c.    Referendum allowance limit.  
 Notwithstanding subdivision 1b, a district's referendum 
 allowance must not exceed the greater of:  

    (1) the district's referendum allowance for fiscal year 
 1994; 

    (2) 25 percent of the formula allowance minus $300 for 
 fiscal year 1997 and later; or 

    (3) for a newly reorganized district created after July 1, 
 1994, the sum of the referendum revenue authority for the 
 reorganizing districts for the fiscal year preceding the 
 reorganization, divided by the sum of the actual pupil units of 
 the reorganizing districts for the fiscal year preceding the 
 reorganization. 

    Subd. 1d.    Sparsity exception.  A district that 
 qualifies for sparsity revenue under section 124A.22 is not 
 subject to a referendum allowance limit. 

    Subd. 1e.    Total referendum revenue.  The total 
 referendum revenue for each district equals the district's 
 referendum allowance times the actual pupil units for the school 
 year. 

    Subd. 1f.    Referendum equalization revenue.  A 
 district's referendum equalization revenue equals $315 times the 
 district's actual pupil units for that year. 

    Referendum equalization revenue must not exceed a 
 district's total referendum revenue for that year. 

    Subd. 1g.    Referendum equalization levy.  (a) For 
 fiscal year 1999 and thereafter, a district's referendum 
 equalization levy for a referendum levied against the referendum 
 market value of all taxable property as defined in section 
 124A.02, subdivision 3b, equals the district's referendum 
 equalization revenue times the lesser of one or the ratio of the 
 district's referendum market value per actual pupil unit to 
 $476,000. 

    (b) For fiscal year 1999 and thereafter, a district's 
 referendum equalization levy for a referendum levied against the 
 net tax capacity of all taxable property equals the district's 
 referendum equalization revenue times the lesser of one or the 
 ratio of the district's adjusted net tax capacity per actual 
 pupil unit to $10,000. 

    Subd. 1h.    Referendum equalization aid.  (a) A 
 district's referendum equalization aid equals the difference 
 between its referendum equalization revenue and levy. 

    (b) If a district's actual levy for referendum equalization 
 revenue is less than its maximum levy limit, aid shall be 
 proportionately reduced. 

    Subd. 1i.    Unequalized referendum levy.  Each year, a 
 district may levy an amount equal to the difference between its 
 total referendum revenue according to subdivision 1f and its 
 equalized referendum aid and levy according to subdivisions 1g 
 and 1h. 

    Subd. 2.    Referendum revenue.  (a) The revenue 
 authorized by section 124A.22, subdivision 1, may be increased 
 in the amount approved by the voters of the district at a 
 referendum called for the purpose.  The referendum may be called 
 by the school board or shall be called by the school board upon 
 written petition of qualified voters of the district.  The 
 referendum shall be conducted one or two calendar years before 
 the increased levy authority, if approved, first becomes payable.
 Only one election to approve an increase may be held in a 
 calendar year.  Unless the referendum is conducted by mail under 
 paragraph (g), the referendum must be held on the first Tuesday 
 after the first Monday in November.  The ballot shall state the 
 maximum amount of the increased revenue per actual pupil unit, 
 the estimated referendum tax rate as a percentage of market 
 value in the first year it is to be levied, and that the revenue 
 shall be used to finance school operations.  The ballot may 
 state a schedule, determined by the board, of increased revenue 
 per actual pupil units that differs from year to year over the 
 number of years for which the increased revenue is authorized.  
 If the ballot contains a schedule showing different amounts, it 
 shall also indicate the estimated referendum tax rate as a 
 percent of market value for the amount specified for the first 
 year and for the maximum amount specified in the schedule.  The 
 ballot may state that existing referendum levy authority is 
 expiring.  In this case, the ballot may also compare the 
 proposed levy authority to the existing expiring levy authority, 
 and express the proposed increase as the amount, if any, over 
 the expiring referendum levy authority.  The ballot shall 
 designate the specific number of years, not to exceed ten, for 
 which the referendum authorization shall apply.  The notice 
 required under section 275.60 may be modified to read, in cases 
 of renewing existing levies: 

    "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
    FOR A PROPERTY TAX INCREASE." 

    The ballot may contain a textual portion with the 
 information required in this subdivision and a question stating 
 substantially the following:  

    "Shall the increase in the revenue proposed by (petition 
 to) the board of ........., School District No. .., be approved?"

    If approved, an amount equal to the approved revenue per 
 actual pupil unit times the actual pupil units for the school 
 year beginning in the year after the levy is certified shall be 
 authorized for certification for the number of years approved, 
 if applicable, or until revoked or reduced by the voters of the 
 district at a subsequent referendum. 

    (b) The school board shall prepare and deliver by first 
 class mail at least 15 days but no more than 30 days prior to 
 the day of the referendum to each taxpayer a notice of the 
 referendum and the proposed revenue increase.  The school board 
 need not mail more than one notice to any taxpayer.  For the 
 purpose of giving mailed notice under this subdivision, owners 
 shall be those shown to be owners on the records of the county 
 auditor or, in any county where tax statements are mailed by the 
 county treasurer, on the records of the county treasurer.  Every 
 property owner whose name does not appear on the records of the 
 county auditor or the county treasurer shall be deemed to have 
 waived this mailed notice unless the owner has requested in 
 writing that the county auditor or county treasurer, as the case 
 may be, include the name on the records for this purpose.  The 
 notice must project the anticipated amount of tax increase in 
 annual dollars and annual percentage for typical residential 
 homesteads, agricultural homesteads, apartments, and 
 commercial-industrial property within the school district. 

    The notice for a referendum may state that an existing 
 referendum levy is expiring and project the anticipated amount 
 of increase over the existing referendum levy in the first year, 
 if any, in annual dollars and annual percentage for typical 
 residential homesteads, agricultural homesteads, apartments, and 
 commercial-industrial property within the school district. 

    The notice must include the following statement:  "Passage 
 of this referendum will result in an increase in your property 
 taxes."  However, in cases of renewing existing levies, the 
 notice may include the following statement:  "Passage of this 
 referendum may result in an increase in your property taxes." 

    (c) A referendum on the question of revoking or reducing 
 the increased revenue amount authorized pursuant to paragraph 
 (a) may be called by the school board and shall be called by the 
 school board upon the written petition of qualified voters of 
 the district.  A referendum to revoke or reduce the levy amount 
 must be based upon the dollar amount, local tax rate, or amount 
 per actual pupil unit, that was stated to be the basis for the 
 initial authorization.  Revenue approved by the voters of the 
 district pursuant to paragraph (a) must be received at least 
 once before it is subject to a referendum on its revocation or 
 reduction for subsequent years.  Only one revocation or 
 reduction referendum may be held to revoke or reduce referendum 
 revenue for any specific year and for years thereafter. 

    (d) A petition authorized by paragraph (a) or (c) shall be 
 effective if signed by a number of qualified voters in excess of 
 15 percent of the registered voters of the school district on 
 the day the petition is filed with the school board.  A 
 referendum invoked by petition shall be held on the date 
 specified in paragraph (a). 

    (e) The approval of 50 percent plus one of those voting on 
 the question is required to pass a referendum authorized by this 
 subdivision. 

    (f) At least 15 days prior to the day of the referendum, 
 the district shall submit a copy of the notice required under 
 paragraph (b) to the commissioner of children, families, and 
 learning and to the county auditor of each county in which the 
 school district is located.  Within 15 days after the results of 
 the referendum have been certified by the school board, or in 
 the case of a recount, the certification of the results of the 
 recount by the canvassing board, the district shall notify the 
 commissioner of children, families, and learning of the results 
 of the referendum. 

    (g) Except for a referendum held under subdivision 2b, any 
 referendum under this section held on a day other than the first 
 Tuesday after the first Monday in November must be conducted by 
 mail in accordance with section 204B.46.  Notwithstanding 
 paragraph (b) to the contrary, in the case of a referendum 
 conducted by mail under this paragraph, the notice required by 
 paragraph (b) shall be prepared and delivered by first class 
 mail at least 20 days before the referendum. 

    Subd. 2a.    School referendum levy; market value.  
 Notwithstanding the provisions of subdivision 2, a school 
 referendum levy approved after November 1, 1992, for taxes 
 payable in 1993 and thereafter, shall be levied against the 
 referendum market value of all taxable property as defined in 
 section 124A.02, subdivision 3b.  Any referendum levy amount 
 subject to the requirements of this subdivision shall be 
 certified separately to the county auditor under section 275.07. 

    All other provisions of subdivision 2 that do not conflict 
 with this subdivision shall apply to referendum levies under 
 this subdivision.  

    Subd. 2b.    Referendum date.  In addition to the 
 referenda allowed in subdivision 2, clause (a), the commissioner 
 may authorize a referendum for a different day.  

    (a) The commissioner may grant authority to a district to 
 hold a referendum on a different day if the district is in 
 statutory operating debt and has an approved plan or has 
 received an extension from the department to file a plan to 
 eliminate the statutory operating debt.  

    (b) The commissioner may grant authority for a district to 
 hold a referendum on a different day if:  (1) the district will 
 conduct a bond election under chapter 475 on that same day; and 
 (2) the proceeds of the referendum will provide only additional 
 operating revenue necessitated by the facility for which bonding 
 authority is sought.  The commissioner may only grant authority 
 under this paragraph if the district demonstrates to the 
 commissioner's satisfaction that the district's ability to 
 operate the new facility will be significantly affected if the 
 operating referendum is not conducted until the November general 
 election.  Authority under this paragraph expires November 30, 
 1998. 

    (c) The commissioner must approve, deny, or modify each 
 district's request for a referendum levy on a different day 
 within 60 days of receiving the request from a district. 

    Subd. 3. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 3a. Repealed, 1988 c 486 s 102 

    Subd. 3b.    Fiscal year 1997 referendum allowance 
 reduction.  For fiscal year 1997, a district's referendum 
 allowance under subdivision 1c is reduced by the amounts 
 calculated in paragraphs (a), (b), (c), and (d). 

    (a) The referendum allowance reduction equals the amount by 
 which a district's supplemental revenue reduction exceeds the 
 district's supplemental revenue allowance for fiscal year 1993. 

    (b) Notwithstanding paragraph (a), if a district's initial 
 referendum allowance is less than ten percent of the formula 
 allowance for that year, the reduction equals the lesser of (1) 
 an amount equal to $100, or (2) the amount calculated in 
 paragraph (a). 

    (c) Notwithstanding paragraph (a) or (b), a school 
 district's referendum allowance reduction equals (1) an amount 
 equal to $100, times (2) one minus the ratio of 20 percent of 
 the formula allowance minus the district's initial referendum 
 allowance limit to 20 percent of the formula allowance for that 
 year if: 

    (i) the district's adjusted net tax capacity for assessment 
 year 1992 per actual pupil unit for fiscal year 1995 is less 
 than $3,000; 

    (ii) the district's net unappropriated operating fund 
 balance as of June 30, 1993, divided by the actual pupil units 
 for fiscal year 1995 is less than $200; 

    (iii) the district's supplemental revenue allowance for 
 fiscal year 1993 is equal to zero; and 

    (iv) the district's initial referendum revenue authority 
 for the current year divided by the district's net tax capacity 
 for assessment year 1992 is greater than ten percent. 

    (d) Notwithstanding paragraph (a), (b), or (c), the 
 referendum revenue reduction for a newly reorganized district is 
 computed as follows: 

    (1) for a newly reorganized district created effective July 
 1, 1994, the referendum revenue reduction equals the lesser of 
 the amount calculated for the combined district under paragraph 
 (a), (b), or (c), or the sum of the amounts by which each of the 
 reorganizing district's supplemental revenue reduction exceeds 
 its respective supplemental revenue allowances calculated for 
 the districts as if they were still in existence for fiscal year 
 1995; or 

    (2) for a newly reorganized district created after July 1, 
 1994, the referendum revenue reduction equals the lesser of the 
 amount calculated for the combined district under paragraph (a), 
 (b), or (c), or the sum of the amounts by which each of the 
 reorganizing district's supplemental revenue reduction exceeds 
 its respective supplemental revenue allowances calculated for 
 the year preceding the year of reorganization. 

    Subd. 3c.    Referendum allowance reduction.  For fiscal 
 year 1998 and later, a district's referendum allowance for 
 referendum authority under subdivision 1c is reduced as provided 
 in this subdivision.  

    (a) For referendum revenue authority approved before June 
 1, 1996, and effective for fiscal year 1997, the reduction 
 equals the amount of the reduction computed for fiscal year 1997 
 under subdivision 3b.  

    (b) For referendum revenue authority approved before June 
 1, 1996, and effective beginning in fiscal year 1998, the 
 reduction equals the amount of the reduction computed for fiscal 
 year 1998 under subdivision 3b.  

    (c) For referendum revenue authority approved after May 31, 
 1996, there is no reduction.  

    (d) For districts with more than one referendum authority, 
 the reduction shall be computed separately for each authority.  
 The reduction shall be applied first to authorities levied 
 against tax capacity, and then to authorities levied against 
 referendum market value.  For districts with more than one 
 authority levied against net tax capacity or against referendum 
 market value, the referendum allowance reduction shall be 
 applied first to the authority with the earliest expiration date.

    (e) For a newly reorganized district created after July 1, 
 1996, the referendum revenue reduction equals the lesser of the 
 amount calculated for the combined district, or the sum of the 
 amounts by which each of the reorganizing district's 
 supplemental revenue reduction exceeds its respective 
 supplemental revenue allowances calculated for the year 
 preceding the year of reorganization. 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 5. Repealed, 1Sp1985 c 12 art 1 s 37 subd 1; art 8 
 s 65 

    Subd. 6. Repealed, 1987 c 398 art 1 s 27 subd 1 

    HIST: Ex1971 c 31 art 20 s 8; 1973 c 683 s 18,19; 1974 c 521 s 
 29-31; 1975 c 432 s 74-81; 1976 c 2 s 97; 1976 c 134 s 78; 1976 
 c 271 s 80-90; 1977 c 307 s 29; 1977 c 423 art 3 s 12; 1977 c 
 447 art 1 s 19,20; art 2 s 8; art 4 s 5; art 5 s 12; art 6 s 
 8-10; art 7 s 26; 1978 c 764 s 103-111; 1979 c 303 art 2 s 22; 
 1979 c 334 art 1 s 14-24; art 2 s 13; art 4 s 4; art 6 s 23; 
 1980 c 509 s 112; 1980 c 607 art 7 s 9; 1980 c 609 art 1 s 9-13; 
 art 2 s 3,4; art 4 s 15-18,22; art 5 s 19; 1981 c 224 s 38; 1981 
 c 356 s 248; 1981 c 358 art 1 s 31-42,48; art 4 s 10; art 6 s 
 32,33; 3Sp1981 c 2 art 2 s 10; art 4 s 7; 1982 c 548 art 1 s 
 12-14; art 2 s 4-6; art 3 s 26; art 6 s 19-22; art 7 s 6; 1983 c 
 216 art 1 s 45; 1983 c 314 art 1 s 18-21,22; art 2 s 3-6; art 3 
 s 13-15; art 4 s 6; art 6 s 24-29; art 7 s 34; 1983 c 323 s 2-4; 
 1984 c 463 art 1 s 11; art 2 s 6,7; art 4 s 5,6; art 5 s 36; art 
 6 s 6-11; art 7 s 20; 1984 c 502 art 7 s 7-9; 1984 c 583 s 32; 
 1985 c 248 s 33; 1Sp1985 c 12 art 1 s 14-16; 1Sp1986 c 1 art 9 s 
 17; 1987 c 398 art 1 s 8; 1988 c 486 s 49; 1988 c 719 art 5 s 
 84; 1989 c 329 art 1 s 4; 1Sp1989 c 1 art 2 s 11; art 9 s 5; 
 1990 c 562 art 1 s 3; 1991 c 265 art 1 s 10; 1991 c 291 art 1 s 
 5,6; 1992 c 499 art 1 s 11-14; 1992 c 603 s 13; 1993 c 44 s 1; 
 1993 c 224 art 1 s 7-10; 1993 c 374 s 1; 1994 c 647 art 1 s 
 16-19; 1Sp1995 c 3 art 1 s 20-23; art 16 s 13; 1996 c 412 art 1 
 s 15-18; 1996 c 471 art 3 s 2; 1Sp1997 c 4 art 1 s 33,34 

*   NOTE:  Subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i, are 
*repealed effective June 30, 1999.  Laws 1992, chapter 499, 
*article 7, section 31.

    124A.031 Subdivision 1. Repealed, 1987 c 398 art 7 
 s 43 

    Subd. 2. Repealed, 1Sp1986 c 1 art 5 s 12 

    Subd. 3. Repealed, 1988 c 486 s 102 

    Subd. 4. Repealed, 1987 c 268 art 6 s 53 

     124A.0311 Referendum authority. 

    Subdivision 1.    Expiration.  Unless scheduled to 
 expire sooner, a referendum levy authorized under section 
 124A.03 expires July 1, 2000.  This subdivision does not apply 
 to a referendum levy that is authorized for ten or fewer years 
 and that is levied against the referendum market value of all 
 taxable property located within the school district. 

    Subd. 2.    Conversion to market value.  (a) Prior to 
 June 1, 1997, by June 1 of each year, a school board may, by 
 resolution of a majority of its board, convert any remaining 
 portion of its referendum authority under section 124A.03, 
 subdivision 2, that is authorized to be levied against net tax 
 capacity to referendum authority that is authorized to be levied 
 against the referendum market value of all taxable property 
 located within the school district.  At the option of the school 
 board, any remaining portion of its referendum authority may be 
 converted in two or more parts at separate times.  The 
 referendum authority may be converted from net tax capacity to 
 referendum market value according to a schedule adopted by 
 resolution of the school board for years prior to taxes payable 
 in 2001, provided that, for taxes payable in 2001 and later, the 
 full amount of the referendum authority is levied against 
 referendum market value.  The board must notify the commissioner 
 of children, families, and learning of the amount of referendum 
 authority that has been converted from net tax capacity to 
 referendum market value, if any, by June 15, of each year.  The 
 maximum length of a referendum converted under this paragraph is 
 ten years. 

    (b) For referendum levy amounts converted between June 1, 
 1997, and June 1, 1998, all other conditions of this subdivision 
 apply except that the maximum length of the referendum is 
 limited to seven years. 

    (c) For referendum levy amounts converted between June 1, 
 1998, and June 1, 1999, all other conditions of this subdivision 
 apply except that the maximum length of the referendum is 
 limited to six years. 

    (d) For referendum levy amounts converted between June 1, 
 1999, and June 1, 2000, all other conditions of this subdivision 
 apply except that the maximum length of the referendum is 
 limited to five years. 

    Subd. 3.    Alternative conversion.  A school district 
 that has a referendum that is levied against net tax capacity 
 that expires before taxes payable in 1998 may convert its 
 referendum authority according to this subdivision.  In the 
 payable year prior to the year of expiration, the school board 
 may authorize a referendum under section 124A.03.  
 Notwithstanding any other law to the contrary, the district may 
 propose, and if approved by its electors, have its referendum 
 authority reauthorized in part on tax capacity and in part on 
 referendum market value according to a schedule adopted by 
 resolution of the school board for years prior to taxes payable 
 in 2001, provided that, for taxes payable in 2001 and later, the 
 full amount of referendum authority is levied against referendum 
 market value.  If the full amount of the referendum is 
 reauthorized on referendum market value prior to taxes payable 
 in 1998, the referendum may extend for ten years.  If the 
 referendum becomes fully reauthorized on referendum market value 
 for a later year, the referendum shall not extend for more than 
 the maximum number of years allowed under subdivision 2. 

    Subd. 4.    Referendum.  The school board must prepare 
 and publish in the official legal newspaper of the school 
 district a notice of the public meeting on the district's intent 
 to convert any portion of its referendum levy to market value 
 not less than 30 days before the scheduled date of the meeting.  
 The resolution converting a portion of the district's referendum 
 levy to referendum market value becomes final unless within 30 
 days after the meeting where the resolution was adopted a 
 petition requesting an election signed by a number of qualified 
 voters in excess of 15 percent of the registered voters of the 
 school district on the day the petition is filed with the school 
 board.  If a petition is filed, then the school board resolution 
 has no effect and the amount of referendum revenue authority 
 specified in the resolution cancels for taxes payable in the 
 following year and thereafter.  The school board shall schedule 
 a referendum under section 124A.03, subdivision 2. 

    HIST: 1994 c 647 art 1 s 20; 1Sp1995 c 3 art 1 s 24; art 16 s 
 13; 1996 c 412 art 1 s 19,20 

     124A.032 Annual foundation or general education aid 
  appropriation. 

    There is annually appropriated from the general fund to the 
 department of children, families, and learning the amount 
 necessary for general education aid.  This amount shall be 
 reduced by the amount of any money specifically appropriated for 
 the same purpose in any year from any state fund.  

    HIST: 1961 c 562 s 14; 1969 c 399 s 15,16; 1973 c 492 s 7; 
 1975 c 432 s 20; 1977 c 447 art 1 s 3; art 2 s 1; 1979 c 334 art 
 6 s 19; 1981 c 358 art 7 s 23-26; 1982 c 548 art 7 s 4; 1983 c 
 314 art 1 s 22; art 7 s 22; 1987 c 398 art 1 s 9; 1988 c 486 s 
 50; 1Sp1995 c 3 art 16 s 13 

  124A.033 Repealed, 1987 c 398 art 1 s 27 subd 2 

     124A.034 Shared time aid. 

    Subdivision 1.    To resident district.  Aid for shared 
 time pupils shall be paid to the district of the pupil's 
 residence.  If a pupil attends shared time classes in another 
 district, the resident district shall pay to the district of 
 attendance an amount of tuition equal to the ratio in section 
 124A.02, subdivision 20, times the amount of tuition which would 
 be charged and paid for a nonresident public school pupil in a 
 similar circumstance.  The district of residence shall not be 
 obligated for tuition except by previous agreement. 

    Subd. 1a.    Exception.  Notwithstanding the provisions 
 of subdivision 1, the resident district of a shared time pupil 
 attending shared time classes in another district may grant the 
 district of attendance, upon its request, permission to claim 
 the pupil as a resident for state aid purposes.  In this case, 
 state aid shall be paid to the district of attendance and, upon 
 agreement, the district of attendance may bill the resident 
 district for any unreimbursed education costs, but not for 
 unreimbursed transportation costs.  The agreement may, however, 
 provide for the resident district to pay the cost of any of the 
 particular transportation categories specified in section 
 124.225, subdivision 1, and in this case, aid for those 
 categories shall be paid to the district of residence rather 
 than to the district of attendance.  

    Subd. 1b.    Section 123.935 services.  Minutes of 
 enrollment in a public school during which a nonpublic school 
 pupil receives services pursuant to section 123.935 shall not be 
 used in the computation of shared time aid. 

    Subd. 2.    Location of services.  Public school 
 programs may be provided to shared time pupils only at a public 
 school building; provided, however, that special instruction and 
 services for children with a disability required pursuant to 
 section 120.17 may also be provided at a neutral site as defined 
 in section 123.932, and diagnostic and health services required 
 pursuant to section 120.17 may also be provided at a nonpublic 
 school building.  As used in this subdivision, "diagnostic 
 services" means speech, hearing, vision, psychological, medical 
 and dental diagnostic services and "health services" means 
 physician, nursing or optometric services provided to pupils in 
 the field of physical and mental health.  

    HIST: 1981 c 358 art 1 s 26; 1983 c 314 art 1 s 5,22; 1988 c 
 486 s 51,52; 1991 c 265 art 3 s 38 

     124A.035 Deductions from general education aid. 

    Subdivision 1.  Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 2.    Permanent school fund.  The amount of money 
 received by a school district as income from the permanent 
 school fund for any year, shall be deducted from the general 
 education aid earned by the district for the same year or from 
 aid earned from other state sources.  

    Subd. 3.    Minimum.  In no event shall the amount 
 payable to any district from state sources for any one year be 
 reduced below the amount payable as apportionment of the school 
 endowment fund pursuant to sections 124.08 to 124.10.  

    Subd. 4.    County apportionment deduction.  Each year 
 the amount of money apportioned to a school district for that 
 year pursuant to section 124.10, subdivision 2, excluding any 
 district where the general education levy is determined 
 according to section 124A.23, subdivision 3, shall be deducted 
 from the general education aid earned by that district for the 
 same year or from aid earned from other state sources.  

    Subd. 5.    Taconite deductions.  (1) Notwithstanding 
 any provisions of any other law to the contrary, the adjusted 
 net tax capacity used in calculating general education aid shall 
 include only that property which is currently taxable in the 
 district.  

    (2) For districts that received payments under sections 
 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
 and 298.405; any law imposing a tax upon severed mineral values, 
 or recognized revenue pursuant to section 477A.15; the general 
 education aid shall be reduced in the final adjustment payment 
 by the difference between the dollar amount of the payments 
 received pursuant to those sections, or revenue recognized 
 pursuant to section 477A.15 in the fiscal year to which the 
 final adjustment is attributable and the amount which was 
 calculated, pursuant to section 124.918, subdivision 8, as a 
 reduction of the levy attributable to the fiscal year to which 
 the final adjustment is attributable.  If the final adjustment 
 of a district's general education aid for a fiscal year is a 
 negative amount because of this clause, the next fiscal year's 
 general education aid to that district shall be reduced by this 
 negative amount in the following manner:  there shall be 
 withheld from each scheduled general education aid payment due 
 the district in such fiscal year, 15 percent of the total 
 negative amount, until the total negative amount has been 
 withheld.  The amount reduced from general education aid 
 pursuant to this clause shall be recognized as revenue in the 
 fiscal year to which the final adjustment payment is 
 attributable.  

    Subd. 6. Repealed, 1985 c 248 s 34; 1Sp1985 c 12 art 1 s 
 37 subd 1 

    HIST: 1981 c 358 art 1 s 27; 1982 c 548 art 1 s 10; 1983 c 314 
 art 1 s 6,17,22; 1987 c 268 art 9 s 5; 1988 c 486 s 53-55; 1988 
 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1991 c 130 s 37; 1992 
 c 499 art 12 s 29; 1996 c 412 art 1 s 21 

     124A.036 Payments to resident and nonresident districts. 

    Subdivision 1.    Aid to district of residence.  General 
 education aid shall be paid to the district of residence unless 
 otherwise specifically provided by law.  

    Subd. 1a.    Reporting; revenue for homeless.  For all 
 school purposes, unless otherwise specifically provided by law, 
 a homeless pupil must be considered a resident of the school 
 district that enrolls the pupil. 

    Subd. 2.    District without schools.  Except as 
 otherwise provided in law, any district not maintaining 
 classified elementary or secondary schools shall pay the tuition 
 required in order to enable resident pupils to attend school in 
 another district when necessary, and shall receive general 
 education aid on the same basis as other districts.  The aid 
 shall be computed as if the pupils were enrolled in the district 
 of residence.  

    Subd. 3.    Notification of resident district.  A 
 district educating a pupil who is a resident of another district 
 shall notify the district of residence within 60 days of the 
 date the pupil is determined by the district to be a 
 nonresident, but not later than August 1 following the end of 
 the school year in which the pupil is educated.  If the district 
 of residence does not receive a notification from the providing 
 district pursuant to this subdivision, it shall not be liable to 
 that district for any tuition billing received after August 1 of 
 the next school year.  

    Subd. 4.    State agency and court placements.  If a 
 state agency or a court of the state desires to place a child in 
 a school district which is not the child's district of 
 residence, that agency or court shall, prior to placement, allow 
 the district of residence an opportunity to participate in the 
 placement decision and notify the district of residence, the 
 district of attendance and the commissioner of children, 
 families, and learning of the placement decision.  When a state 
 agency or court determines that an immediate emergency placement 
 is necessary and that time does not permit district 
 participation in the placement decision or notice to the 
 districts and the commissioner of children, families, and 
 learning of the placement decision prior to the placement, the 
 agency or court may make the decision and placement without that 
 participation or prior notice.  The agency or court shall notify 
 the district of residence, the district of attendance and the 
 commissioner of children, families, and learning of an emergency 
 placement within 15 days of the placement.  

    Subd. 5.    Alternative attendance programs.  The 
 general education aid for districts must be adjusted for each 
 pupil attending a nonresident district under sections 120.062, 
 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 The adjustments must be made according to this subdivision. 

    (a) General education aid paid to a resident district must 
 be reduced by an amount equal to the general education revenue 
 exclusive of compensatory revenue attributable to the pupil in 
 the resident district. 

    (b) General education aid paid to a district serving a 
 pupil in programs listed in this subdivision shall be increased 
 by an amount equal to the general education revenue exclusive of 
 compensatory revenue attributable to the pupil in the 
 nonresident district.  

    (c) If the amount of the reduction to be made from the 
 general education aid of the resident district is greater than 
 the amount of general education aid otherwise due the district, 
 the excess reduction must be made from other state aids due the 
 district. 

    (d) The district of residence shall pay tuition to a 
 district or an area learning center, operated according to 
 paragraph (e), providing special instruction and services to a 
 pupil with a disability, as defined in section 120.03, or a 
 pupil, as defined in section 120.181, who is enrolled in a 
 program listed in this subdivision.  The tuition shall be equal 
 to (1) the actual cost of providing special instruction and 
 services to the pupil, including a proportionate amount for debt 
 service and for capital expenditure facilities and equipment, 
 and debt service but not including any amount for 
 transportation, minus (2) the amount of general education aid 
 and special education aid, attributable to that pupil, that is 
 received by the district providing special instruction and 
 services. 

    (e) An area learning center operated by a service 
 cooperative, intermediate district, education district, or a 
 joint powers cooperative may elect through the action of the 
 constituent boards to charge tuition for pupils rather than to 
 calculate general education aid adjustments under paragraph (a), 
 (b), or (c).  The tuition must be equal to the greater of the 
 average general education revenue per pupil unit attributable to 
 the pupil, or the actual cost of providing the instruction, 
 excluding transportation costs, if the pupil meets the 
 requirements of section 120.03 or 120.181. 

    Subd. 6.    Charter schools.  (a) The general education 
 aid for districts must be adjusted for each pupil attending a 
 charter school under section 120.064.  The adjustments must be 
 made according to this subdivision. 

    (b) General education aid paid to a resident district must 
 be reduced by an amount equal to the general education revenue 
 exclusive of compensatory revenue. 

    (c) General education aid paid to a district in which a 
 charter school not providing transportation according to section 
 120.064, subdivision 15, is located shall be increased by an 
 amount equal to the product of:  (1) the sum of $170, plus the 
 transportation sparsity allowance for the district, plus the 
 transportation transition allowance for the district; times (2) 
 the pupil units attributable to the pupil.  

    (d) If the amount of the reduction to be made from the 
 general education aid of the resident district is greater than 
 the amount of general education aid otherwise due the district, 
 the excess reduction must be made from other state aids due the 
 district. 

    HIST: 1981 c 358 art 1 s 28; 1982 c 548 art 1 s 11; 1983 c 314 
 art 1 s 22; 1987 c 398 art 8 s 10; 1988 c 486 s 56,57; 1988 c 
 718 art 7 s 32,33; 1989 c 329 art 7 s 5; 1990 c 562 art 3 s 7; 
 1991 c 130 s 21; 1991 c 199 art 2 s 12; 1991 c 265 art 3 s 38; 
 1993 c 224 art 3 s 29; 1Sp1995 c 3 art 16 s 13; 1996 c 305 art 1 
 s 138; 1996 c 412 art 1 s 22; 1997 c 7 art 1 s 65 

  124A.037 Repealed, 1Sp1985 c 12 s 37 subd 2 

     124A.04 Training and experience index. 

    Subdivision 1. Repealed, 1Sp1995 c 3 art 1 s 63 

    Subd. 2.    1999 and later.  The training and experience 
 index for fiscal year 1999 and later must be constructed in the 
 following manner:  

    (a) The department shall construct a matrix that classifies 
 teachers by the extent of training received in accredited 
 institutions of higher education and by the years of experience 
 that districts take into account in determining teacher salaries.

    (b) The average salary for each cell of the matrix must be 
 computed as follows using data from fiscal year 1997:  

    (1) For each school district, multiply the salary paid to 
 full-time equivalent teachers with that combination of training 
 and experience according to the district's teacher salary 
 schedule by the number of actual pupil units in that district.  

    (2) Add the amounts computed in clause (1) for all 
 districts in the state and divide the resulting sum by the total 
 number of actual pupil units in all districts in the state that 
 employ teachers.  

    (c) For each cell in the matrix, compute the ratio of the 
 average salary in that cell to the average salary for all 
 teachers in the state during fiscal year 1997.  

    (d) The index for each district that employs teachers 
 equals the sum of:  (i) for teachers employed in that district 
 during fiscal year 1997 and the current fiscal year, the ratios 
 for each teacher computed using data for fiscal year 1997; and 
 (ii) for teachers employed in that district during the current 
 fiscal year but not during fiscal year 1997, the ratio for 
 teachers who are in their first year of teaching and who have no 
 additional credits or degrees above a bachelor's degree divided 
 by the number of teachers in that district.  The index for a 
 district that employs no teachers is zero. 

    HIST: 1983 c 314 art 1 s 10; 1991 c 265 art 1 s 11; 1993 c 224 
 art 1 s 11; 1Sp1997 c 4 art 1 s 35 

*   NOTE:  This section is repealed effective June 30, 1999.  
*Laws 1992, chapter 499, article 7, section 31.

    124A.06 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 1a. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 1b. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 3. Renumbered 124A.06 subd 4 

    Subd. 3a. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 1 

    124A.08 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 3. Renumbered 124A.08 subd 4 

    Subd. 3a. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 5. Repealed, 1987 c 398 art 1 s 27 subd 3 

    124A.10 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 3. Renumbered 124A.10 subd 4 

    Subd. 3a. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 3 

    124A.12 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 3. Renumbered 124A.12 subd 4 

    Subd. 3a. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 3 

    124A.14 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 3. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 5. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 5a. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 6. Repealed, 1987 c 398 art 1 s 27 subd 3 

  124A.16 Repealed, 1987 c 398 art 1 s 27 subd 3 

    124A.20 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 1 

    Subd. 3. Repealed, 1987 c 398 art 1 s 27 subd 3 

  124A.21 Repealed, 1987 c 398 art 1 s 27 subd 3 

     124A.22 General education revenue. 

    Subdivision 1.    General education revenue.  (a) For 
 fiscal years 1997 and 1998, the general education revenue for 
 each district equals the sum of the district's basic revenue, 
 compensatory education revenue, secondary sparsity revenue, 
 elementary sparsity revenue, transportation sparsity revenue, 
 total operating capital revenue, transition revenue, and 
 supplemental revenue. 

    (b) For fiscal year 1999 and thereafter, the general 
 education revenue for each district equals the sum of the 
 district's basic revenue, basic skills revenue, training and 
 experience revenue, secondary sparsity revenue, elementary 
 sparsity revenue, transportation sparsity revenue, total 
 operating capital revenue, transition revenue, and supplemental 
 revenue. 

    Subd. 2.    Basic revenue.  The basic revenue for each 
 district equals the formula allowance times the actual pupil 
 units for the school year.  The formula allowance for fiscal 
 year 1997 is $3,505.  The formula allowance for fiscal year 1998 
 is $3,581 and the formula allowance for fiscal year 1999 and 
 subsequent fiscal years is $3,530. 

    Subd. 2a.    Contract deadline and penalty.  (a) The 
 following definitions apply to this subdivision:  

    (1) "Public employer" means:  

    (i) a school district; and 

    (ii) a public employer, as defined by section 179A.03, 
 subdivision 15, other than a school district that (i) negotiates 
 a contract under chapter 179A with teachers, and (ii) is 
 established by, receives state money, or levies under chapters 
 120 to 129, or 136D, or 268A. 

    (2) "Teacher" means a person, other than a superintendent 
 or assistant superintendent, principal, assistant principal, or 
 a supervisor or confidential employee who occupies a position 
 for which the person must be licensed by the board of teaching, 
 state board of education, the former board of technical 
 colleges, or the board of trustees of the Minnesota state 
 colleges and universities. 

    (b) Notwithstanding any law to the contrary, a public 
 employer and the exclusive representative of the teachers shall 
 both sign a collective bargaining agreement on or before January 
 15 of an even-numbered calendar year.  If a collective 
 bargaining agreement is not signed by that date, state aid paid 
 to the public employer for that fiscal year shall be reduced.  
 However, state aid shall not be reduced if: 

    (1) a public employer and the exclusive representative of 
 the teachers have submitted all unresolved contract items to 
 interest arbitration according to section 179A.16 before 
 December 31 of an odd-numbered year and filed required final 
 positions on all unresolved items with the commissioner of 
 mediation services before January 15 of an even-numbered year; 
 and 

    (2) the arbitration panel has issued its decision within 60 
 days after the date the final positions were filed. 

    (c)(1) For a district that reorganizes according to section 
 122.22, 122.23, or 122.241 to 122.248 effective July 1 of an 
 odd-numbered year, state aid shall not be reduced according to 
 this subdivision if the school board and the exclusive 
 representative of the teachers both sign a collective bargaining 
 agreement on or before the March 15 following the effective date 
 of reorganization.  

    (2) For a district that jointly negotiates a contract prior 
 to the effective date of reorganization under section 122.22, 
 122.23, or 122.241 to 122.248 that, for the first time, includes 
 teachers in all districts to be reorganized, state aid shall not 
 be reduced according to this subdivision if the school board and 
 the exclusive representative of the teachers sign a collective 
 bargaining agreement on or before the March 15 following the 
 expiration of the teacher contracts in each district involved in 
 the joint negotiation. 

    (3) Only one extension of the contract deadline is 
 available to a district under this paragraph. 

    (d) The reduction shall equal $25 times the number of fund 
 balance pupil units:  

    (1) for a school district, that are in the district during 
 that fiscal year; or 

    (2) for a public employer other than a school district, 
 that are in programs provided by the employer during the 
 preceding fiscal year. 

    The department of children, families, and learning shall 
 determine the number of full-time equivalent actual pupil units 
 in the programs.  The department of children, families, and 
 learning shall reduce general education aid; if general 
 education aid is insufficient or not paid, the department shall 
 reduce other state aids. 

    (e) Reductions from aid to school districts and public 
 employers other than school districts shall be returned to the 
 general fund. 

    Subd. 3.    Compensatory education revenue.  The 
 compensatory education revenue for each building in the district 
 equals the formula allowance times the compensation revenue 
 pupil units computed according to section 124.17, subdivision 
 1d.  Revenue shall be paid to the district and must be allocated 
 according to section 124A.28, subdivision 1a. 

    Subd. 3a.    Basic skills revenue.  For fiscal year 1999 
 and thereafter, a school district's basic skills revenue equals 
 the sum of: 

    (1) compensatory revenue under subdivision 3; plus 

    (2) limited English proficiency revenue according to 
 section 124.273, subdivision 1g; plus 

    (3) $190 times the limited English proficiency pupil units 
 according to section 124.17, subdivision 7; plus 

    (4) the lesser of:  (i) $22.50 times the number of fund 
 balance pupil units in kindergarten to grade 8; or (ii) the 
 amount of district money provided to match basic skills revenue 
 for the purposes described in section 124A.28. 

    Subd. 4.    Training and experience revenue.  The 
 training and experience revenue for each district equals the 
 greater of zero or the result of the following computation:  

    (1) subtract .8 from the training and experience index; 

    (2) multiply the result in clause (1) by the product of 
 $660 times the actual pupil units for the school year.  

    Subd. 4a. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 4b. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 5.    Definitions.  The definitions in this 
 subdivision apply only to subdivisions 6 and 6a.  

    (a) "High school" means a secondary school that has pupils 
 enrolled in at least the 10th, 11th, and 12th grades.  If there 
 is no secondary school in the district that has pupils enrolled 
 in at least the 10th, 11th, and 12th grades, and the school is 
 at least 19 miles from the next nearest school, the commissioner 
 shall designate one school in the district as a high school for 
 the purposes of this section. 

    (b) "Secondary average daily membership" means, for a 
 district that has only one high school, the average daily 
 membership of resident pupils in grades 7 through 12.  For a 
 district that has more than one high school, "secondary average 
 daily membership" for each high school means the product of the 
 average daily membership of resident pupils in grades 7 through 
 12 in the high school, times the ratio of six to the number of 
 grades in the high school. 

    (c) "Attendance area" means the total surface area of the 
 district, in square miles, divided by the number of high schools 
 in the district.  For a district that does not operate a high 
 school and is less than 19 miles from the nearest operating high 
 school, the attendance area equals zero. 

    (d) "Isolation index" for a high school means the square 
 root of 55 percent of the attendance area plus the distance in 
 miles, according to the usually traveled routes, between the 
 high school and the nearest high school.  For a district in 
 which there is located land defined in section 84A.01, 84A.20, 
 or 84A.31, the distance in miles is the sum of: 

    (1) the square root of one-half of the attendance area; and 

    (2) the distance from the border of the district to the 
 nearest high school. 

    (e) "Qualifying high school" means a high school that has 
 an isolation index greater than 23 and that has secondary 
 average daily membership of less than 400.  

    (f) "Qualifying elementary school" means an elementary 
 school that is located 19 miles or more from the nearest 
 elementary school or from the nearest elementary school within 
 the district and, in either case, has an elementary average 
 daily membership of an average of 20 or fewer per grade. 

    (g) "Elementary average daily membership" means, for a 
 district that has only one elementary school, the average daily 
 membership of resident pupils in kindergarten through grade 6.  
 For a district that has more than one elementary school, 
 "average daily membership" for each school means the average 
 daily membership of kindergarten through grade 6 multiplied by 
 the ratio of seven to the number of grades in the elementary 
 school.  For a building in a district where the nearest 
 elementary school is at least 65 miles distant, pupils served 
 shall be used to determine average daily membership. 

    Subd. 6.    Secondary sparsity revenue.  (a) A 
 district's secondary sparsity revenue for a school year equals 
 the sum of the results of the following calculation for each 
 qualifying high school in the district: 

    (1) the formula allowance for the school year, multiplied 
 by 

    (2) the secondary average daily membership of the high 
 school, multiplied by 

    (3) the quotient obtained by dividing 400 minus the 
 secondary average daily membership by 400 plus the secondary 
 daily membership, multiplied by 

    (4) the lesser of 1.5 or the quotient obtained by dividing 
 the isolation index minus 23 by ten. 

    (b) A newly formed school district that is the result of 
 districts combining under the cooperation and combination 
 program or consolidating under section 122.23 shall receive 
 secondary sparsity revenue equal to the greater of:  (1) the 
 amount calculated under paragraph (a) for the combined district; 
 or (2) the sum of the amounts of secondary sparsity revenue the 
 former school districts had in the year prior to consolidation, 
 increased for any subsequent changes in the secondary sparsity 
 formula. 

    Subd. 6a.    Elementary sparsity revenue.  A district's 
 elementary sparsity revenue equals the sum of the following 
 amounts for each qualifying elementary school in the district:  

    (1) the formula allowance for the year, multiplied by 

    (2) the elementary average daily membership of the school, 
 multiplied by 

    (3) the quotient obtained by dividing 140 minus the 
 elementary average daily membership by 140 plus the average 
 daily membership. 

    Subd. 7. Repealed, 1988 c 718 art 1 s 14 

    Subd. 8.    Supplemental revenue.  (a) A district's 
 supplemental revenue allowance for fiscal year 1994 and later 
 fiscal years equals the district's supplemental revenue for 
 fiscal year 1993 divided by the district's 1992-1993 actual 
 pupil units. 

    (b) A district's supplemental revenue allowance is reduced 
 for fiscal year 1995 and later according to subdivision 9. 

    (c) A district's supplemental revenue equals the 
 supplemental revenue allowance, if any, times its actual pupil 
 units for that year.  

    (d) A school district may cancel its supplemental revenue 
 by notifying the commissioner of education prior to June 30, 
 1994.  A school district that is reorganizing under section 
 122.22, 122.23, or 122.241 may cancel its supplemental revenue 
 by notifying the commissioner of children, families, and 
 learning prior to July 1 of the year of the reorganization.  If 
 a district cancels its supplemental revenue according to this 
 paragraph, its supplemental revenue allowance for fiscal year 
 1993 for purposes of subdivision 9 and section 124A.03, 
 subdivision 3b, equals zero. 

    Subd. 8a.    Supplemental levy.  To obtain supplemental 
 revenue, a district may levy an amount not more than the product 
 of its supplemental revenue for the school year times the lesser 
 of one or the ratio of its adjusted net tax capacity per actual 
 pupil unit to $10,000. 

    Subd. 8b.    Supplemental aid.  A district's 
 supplemental aid equals its supplemental revenue minus its 
 supplemental levy times the ratio of the actual amount levied to 
 the permitted levy. 

    Subd. 9.    Supplemental revenue reduction.  A 
 district's supplemental revenue allowance is reduced by the sum 
 of: 

    (1) the sum of one-fourth of the difference of:  

    (i) the sum of the district's training and experience 
 revenue and compensatory revenue per actual pupil unit for 
 fiscal year 1996, and 

    (ii) the sum of district's training and experience revenue 
 and compensatory revenue per actual pupil unit for fiscal year 
 1994; and 

    (2) $100.  

    A district's supplemental revenue allowance may not be less 
 than zero. 

    Subd. 10.    Total operating capital revenue.  (a) For 
 fiscal year 1999 and thereafter, total operating capital revenue 
 for a district equals the amount determined under paragraph (b) 
 or (c), plus $68 times the actual pupil units for the school 
 year.  The revenue must be placed in a reserved account in the 
 general fund and may only be used according to subdivision 11. 

    (b) For fiscal years 1999 and later, capital revenue for a 
 district equals $100 times the district's maintenance cost index 
 times its actual pupil units for the school year. 

    (c) For 1996 and later fiscal years, the previous formula 
 revenue for a district equals $128 times its actual pupil units 
 for the school year. 

    (d) For fiscal years 1998 and later, the revenue for a 
 district that operates a program under section 121.585, is 
 increased by an amount equal to $30 times the number of actual 
 pupil units at the site where the program is implemented. 

    Subd. 11.    Uses of total operating capital revenue.  
 Total operating capital revenue may be used only for the 
 following purposes: 

    (1) to acquire land for school purposes; 

    (2) to acquire or construct buildings for school purposes, 
 up to $400,000; 

    (3) to rent or lease buildings, including the costs of 
 building repair or improvement that are part of a lease 
 agreement; 

    (4) to improve and repair school sites and buildings, and 
 equip or reequip school buildings with permanent attached 
 fixtures; 

    (5) for a surplus school building that is used 
 substantially for a public nonschool purpose; 

    (6) to eliminate barriers or increase access to school 
 buildings by individuals with a disability; 

    (7) to bring school buildings into compliance with the 
 uniform fire code adopted according to chapter 299F; 

    (8) to remove asbestos from school buildings, encapsulate 
 asbestos, or make asbestos-related repairs; 

    (9) to clean up and dispose of polychlorinated biphenyls 
 found in school buildings; 

    (10) to clean up, remove, dispose of, and make repairs 
 related to storing heating fuel or transportation fuels such as 
 alcohol, gasoline, fuel oil, and special fuel, as defined in 
 section 296.01; 

    (11) for energy audits for school buildings and to modify 
 buildings if the audit indicates the cost of the modification 
 can be recovered within ten years; 

    (12) to improve buildings that are leased according to 
 section 123.36, subdivision 10; 

    (13) to pay special assessments levied against school 
 property but not to pay assessments for service charges; 

    (14) to pay principal and interest on state loans for 
 energy conservation according to section 216C.37 or loans made 
 under the Northeast Minnesota Economic Protection Trust Fund Act 
 according to sections 298.292 to 298.298; 

    (15) to purchase or lease interactive telecommunications 
 equipment; 

    (16) by school board resolution, to transfer money into the 
 debt redemption fund to:  (i) pay the amounts needed to meet, 
 when due, principal and interest payments on certain obligations 
 issued according to chapter 475; or (ii) pay principal and 
 interest on debt service loans or capital loans according to 
 section 124.44; 

    (17) to pay capital expenditure equipment-related 
 assessments of any entity formed under a cooperative agreement 
 between two or more districts; 

    (18) to purchase or lease computers and related materials, 
 copying machines, telecommunications equipment, and other 
 noninstructional equipment; 

    (19) to purchase or lease assistive technology or equipment 
 for instructional programs; 

    (20) to purchase textbooks; 

    (21) to purchase new and replacement library books; 

    (22) to purchase vehicles; 

    (23) to purchase or lease telecommunications equipment, 
 computers, and related equipment for integrated information 
 management systems for: 

    (i) managing and reporting learner outcome information for 
 all students under a results-oriented graduation rule; 

    (ii) managing student assessment, services, and achievement 
 information required for students with individual education 
 plans; and 

    (iii) other classroom information management needs; and 

    (24) to pay personnel costs directly related to the 
 acquisition, operation, and maintenance of telecommunications 
 systems, computers, related equipment, and network and 
 applications software. 

    Subd. 11a.    Uses of revenue.  Except as otherwise 
 prohibited by law, a district may spend general fund money for 
 capital purposes. 

    Subd. 12.    Maintenance cost index.  (a) A district's 
 maintenance cost index is equal to the ratio of: 

    (1) the total weighted square footage for all eligible 
 district-owned facilities; and 

    (2) the total unweighted square footage of these facilities.

    (b) The department shall determine a district's maintenance 
 cost index annually.  Eligible district-owned facilities shall 
 include only instructional or administrative square footage 
 owned by the district.  The commissioner of children, families, 
 and learning may adjust the age of a building or addition for 
 major renovation projects. 

    (c) The square footage weighting factor for each original 
 building or addition equals the lesser of: 

    (1) one plus the ratio of the age in years to 100; or 

    (2) 1.5. 

    (d) The weighted square footage for each original building 
 or addition equals the product of the unweighted square footage 
 times the square footage weighting factor. 

    Subd. 13.    Transportation sparsity definitions.  The 
 definitions in this subdivision apply to subdivisions 13a and 
 13b. 

    (a) "Sparsity index" for a school district means the 
 greater of .2 or the ratio of the square mile area of the school 
 district to the actual pupil units of the school district. 

    (b) "Density index" for a school district means the ratio 
 of the square mile area of the school district to the actual 
 pupil units of the school district.  However, the density index 
 for a school district cannot be greater than .2 or less than 
 .005. 

    (c) "Fiscal year 1996 base allowance" for a school district 
 means the result of the following computation: 

    (1) sum the following amounts: 

    (i) the fiscal year 1996 regular transportation revenue for 
 the school district according to section 124.225, subdivision 
 7d, paragraph (a), excluding the revenue attributable nonpublic 
 school pupils and to pupils with disabilities receiving special 
 transportation services; plus 

    (ii) the fiscal year 1996 nonregular transportation revenue 
 for the school district according to section 124.225, 
 subdivision 7d, paragraph (b), excluding the revenue for 
 desegregation transportation according to section 124.225, 
 subdivision 1, paragraph (c), clause (4), and the revenue 
 attributable to nonpublic school pupils and to pupils with 
 disabilities receiving special transportation services or board 
 and lodging; plus 

    (iii) the fiscal year 1996 excess transportation levy for 
 the school district according to section 124.226, subdivision 5, 
 excluding the levy attributable to nonpublic school pupils; plus 

    (iv) the fiscal year 1996 late activity bus levy for the 
 school district according to section 124.226, subdivision 9, 
 excluding the levy attributable to nonpublic school pupils; plus 

    (v) an amount equal to one-third of the fiscal year 1996 
 bus depreciation for the school district according to section 
 124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4).

    (2) divide the result in clause (1) by the school 
 district's 1995-1996 fund balance pupil units. 

    Subd. 13a.    Transportation sparsity revenue allowance. 
  (a) A district's transportation sparsity allowance equals the 
 greater of zero or the result of the following computation: 

    (i) Multiply the formula allowance according to section 
 124A.22, subdivision 2, by .1469. 

    (ii) Multiply the result in clause (i) by the district's 
 sparsity index raised to the 26/100 power. 

    (iii) Multiply the result in clause (ii) by the district's 
 density index raised to the 13/100 power. 

    (iv) Multiply the formula allowance according to section 
 124A.22, subdivision 2, by .0485. 

    (v) Subtract the result in clause (iv) from the result in 
 clause (iii). 

    (b) Transportation sparsity revenue is equal to the 
 transportation sparsity allowance times the actual pupil units. 

    Subd. 13b.    Transition allowance.  (a) A district's 
 transportation transition allowance for fiscal year 1998 and 
 later equals the result of the following: 

    (1) if the result in subdivision 13a, paragraph (a), clause 
 (iii), for fiscal year 1998 is less than the fiscal year 1996 
 base allowance, the transportation transition allowance equals 
 the fiscal year 1996 base allowance minus the result in 
 subdivision 13a, paragraph (a), clause (iii); or 

    (2) if the result in subdivision 13a, paragraph (a), clause 
 (iii), for fiscal year 1998 and later is greater than or equal 
 to the fiscal year 1996 base allowance, the transportation 
 transition allowance equals zero. 

    (b) For fiscal years 1997 and 1998, a district's training 
 and experience transition allowance is equal to the training and 
 experience revenue the district would have received under 
 Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 by the actual pupil units for fiscal year 1997 minus $130.  For 
 fiscal year 1999 and later, a district's training and experience 
 transition allowance equals zero.  

    If the training and experience transition allowance is less 
 than zero, the reduction shall be determined according to the 
 following schedule: 

    (1) for fiscal year 1997, the reduction is equal to .9 
 times the amount initially determined; 

    (2) for fiscal year 1998, the reduction is equal to .75 
 times the amount initially determined; and 

    (c) A district's transition compensatory allowance equals 
 the greater of zero or the difference between:  

    (1) the amount of compensatory revenue the district would 
 have received under subdivision 3 for fiscal year 1998 computed 
 using a basic formula allowance of $3,281; and 

    (2) the amount the district receives under subdivision 3; 
 divided by 

    (3) the district's actual pupil units for fiscal year 1998. 

    (d) A district's transition allowance for fiscal year 1998 
 is equal to the sum of its transportation transition allowance, 
 its training and experience transition allowance, and its 
 transition compensatory allowance.  A district's transition 
 allowance for fiscal year 1999 and thereafter is equal to the 
 sum of its transportation transition allowance and its 
 transition compensatory allowance. 

    Subd. 13c.    Transition revenue adjustment.  A 
 district's transition revenue adjustment equals the district's 
 transition allowance times the actual pupil units for the school 
 year. 

    Subd. 13d.    Transition levy adjustment.  A district's 
 general education levy shall be adjusted by an amount equal to 
 the district's transition revenue times the lesser of 1 or the 
 ratio of its adjusted net tax capacity per actual pupil unit to 
 $10,000. 

    Subd. 13e.    Transition aid adjustment.  A district's 
 transition aid adjustment is the difference between the 
 transition revenue and the transition levy. 

    Subd. 13f.    Training and experience revenue.  Training 
 and experience revenue for each district equals the greater of 
 zero or the result of the following computation: 

    (1) subtract .8 from the training and experience index; 

    (2) multiply the result in clause (1) by the product of 
 $660 times the actual pupil units for that school year. 

    HIST: 1987 c 398 art 1 s 11; 1988 c 486 s 58-60; 1988 c 718 
 art 1 s 1-3; 1989 c 329 art 1 s 5-12; 1990 c 375 s 3; 1990 c 562 
 art 8 s 28; 1991 c 130 s 37; 1991 c 265 art 1 s 12-19; 1992 c 
 499 art 6 s 20; art 12 s 13,14,29; 1993 c 224 art 1 s 12-17; 
 1993 c 374 s 2; 1994 c 647 art 1 s 21-24; 1995 c 212 art 4 s 64; 
 1Sp1995 c 3 art 1 s 25-44; art 13 s 7; art 16 s 13; 1996 c 412 
 art 1 s 23-25; art 9 s 6; 1997 c 1 s 4; 1997 c 2 s 6; 1Sp1997 c 
 4 art 1 s 36-45; art 4 s 22,23 

*   NOTE:  Subdivisions 2, 3, 4, 4a, 4b, 8, and 9, are repealed 
*effective June 30, 1999.  Laws 1992, chapter 499, article 7, 
*section 31. 

*   NOTE:  Subdivision 13f, as added by Laws 1995, First 
*Special Session chapter 3, article 1, section 44, is effective 
*for revenue for fiscal year 1999 and thereafter.  Laws 1995, 
*First Special Session chapter 3, article 1, section 64. 

*   NOTE:  The amendments to subdivisions 8a and 13d by Laws 
*1997, First Special Session chapter 4, article 1, sections 42 
*and 45, are effective for fiscal year 1999.  Laws 1997, First 
*Special Session chapter 4, article 1, section 64. 

*   NOTE:  The amendment to subdivision 10 by Laws 1997, First 
*Special Session chapter 4, article 4, section 22, is effective 
*for revenue for fiscal year 1999, except that the allowance 
*increase is effective for revenue for fiscal year 1998, and the 
*change in previous formula revenue under paragraph (c) is 
*effective immediately.  Laws 1997, First Special Session chapter 
*4, article 4, section 37.

     124A.225 Learning and development revenue amount and use.

    Subdivision 1.    Revenue.  Of a district's general 
 education revenue an amount equal to the sum of the number of 
 elementary fund balance pupils in average daily membership 
 defined in section 124.17, subdivision 1f, and one-half of the 
 number of kindergarten fund balance pupils in average daily 
 membership as defined in section 124.17, subdivision 1f, times 
 .06 for fiscal year 1995 and thereafter times the formula 
 allowance must be reserved according to this section. 

    Subd. 2.    Instructor defined.  Primary instructor 
 means a public employee licensed by the board of teaching whose 
 duties are full-time instruction, excluding a teacher for whom 
 categorical aids are received pursuant to sections 124.3201 and 
 124.321.  Except as provided in section 125.230, subdivision 6, 
 instructor does not include supervisory and support personnel, 
 except school social workers as defined in section 125.03.  An 
 instructor whose duties are less than full-time instruction must 
 be included as an equivalent only for the number of hours of 
 instruction in grades kindergarten through 6. 

    Subd. 3.    Instruction contact time.  Instruction may 
 be provided by a primary instructor, by a team of instructors, 
 or by teacher resident supervised by a primary instructor.  The 
 district must maximize instructor to learner average 
 instructional contact time. 

    Subd. 4.    Revenue use.  (a) Revenue must be used 
 according to either paragraph (b), (c), or (d). 

    (b) Revenue shall be used to reduce and maintain the 
 district's instructor to learner ratios in kindergarten through 
 grade 6 to a level of 1 to 17 on average.  The district must 
 prioritize the use of the revenue to attain this level initially 
 in kindergarten and grade 1 and then through the subsequent 
 grades as revenue is available.  

    (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
 district with exceptional need as defined in subdivision 6, 
 paragraph (a), may use the revenue to reduce and maintain the 
 district's instructor-to-learner ratios in kindergarten through 
 grade 6 to a level that is at least 2.0 less than the district's 
 adopted staffing ratio, if the remaining learning and 
 development revenue is used to continue or initiate staffing 
 patterns that meet the needs of a diverse student population.  
 Programs to meet the needs of a diverse student population may 
 include programs for at-risk pupils and learning enrichment 
 programs. 

    (d) For fiscal year 1995 only, in any school building that 
 meets the characteristics of exceptional need as defined in 
 subdivision 6, paragraph (b), a district may use the revenue to 
 employ education assistants or aides supervised by a learner's 
 regular instructor to assist learners in those school buildings. 

    (e) The revenue may be used to prepare and use an 
 individualized learning plan for each learner.  A district must 
 not increase the district wide instructor-learner ratios in 
 other grades as a result of reducing instructor-learner ratios 
 in kindergarten through grade 6.  Revenue may not be used to 
 provide instructor preparation time or to provide the district's 
 share of revenue required under section 124.311.  A school 
 district may use a portion of the revenue reserved under this 
 section to employ up to the same number of full-time equivalent 
 education assistants or aides as the district employed during 
 the 1992-1993 school year under Minnesota Statutes 1992, section 
 124.331, subdivision 2. 

    Subd. 5.    Additional revenue use.  If the school board 
 of a school district determines that the district has achieved 
 and is maintaining the instructor-learner ratios specified in 
 subdivision 4 and is using individualized learning plans, the 
 school board may use the revenue to purchase material and 
 services or provide staff development needed for reduced 
 instructor-learner ratios.  If additional revenue remains, the 
 district must use the revenue to improve program offerings, 
 including programs provided through interactive television, 
 throughout the district or other general education purposes. 

    Subd. 6.    Exceptional need defined.  (a) A school 
 district is considered to have exceptional need if the district 
 has the following characteristics: 

    (1) ten percent or more of the district's pupils are 
 eligible for free and reduced lunch as of October 1 of the 
 previous fiscal year; 

    (2) ten percent or more of the district's pupils are 
 students of color; 

    (3) the district's adjusted net tax capacity divided by its 
 pupil units for the current year is less than $3,500; and 

    (4) the district's general education revenue per pupil unit 
 is less than the average general education revenue per pupil 
 unit for the economic development region in which the district 
 is located. 

    (b) A school building is considered to have exceptional 
 need if the school building has the following characteristics: 

    (1) 50 percent or more of the school building's pupils are 
 eligible for free and reduced lunch as of October 1 of the 
 previous fiscal year; 

    (2) the adjusted net tax capacity of the district in which 
 the school building is located, divided by the district's pupil 
 units for the current year, is less than $3,500; and 

    (3) the district's general education revenue per pupil unit 
 is less than the average general education revenue per pupil 
 unit for the economic development region in which the district 
 is located. 

    HIST: 1993 c 224 art 1 s 18; 1993 c 374 s 3; 1994 c 647 art 1 
 s 25; art 7 s 2; art 8 s 12,13; 1Sp1995 c 3 art 1 s 45; art 13 s 
 8; 1997 c 7 art 1 s 66; 1Sp1997 c 4 art 11 s 3 

     124A.23 General education levy and aid. 

    Subdivision 1.    General education tax rate.  The 
 commissioner shall establish the general education tax rate by 
 July 1 of each year for levies payable in the following year.  
 The general education tax capacity rate shall be a rate, rounded 
 up to the nearest hundredth of a percent, that, when applied to 
 the adjusted net tax capacity for all districts, raises the 
 amount specified in this subdivision.  The general education tax 
 rate shall be the rate that raises $1,359,000,000 for fiscal 
 year 1998 and $1,385,500,000 for fiscal year 1999 and later 
 fiscal years.  The general education tax rate may not be changed 
 due to changes or corrections made to a district's adjusted net 
 tax capacity after the tax rate has been established.  If the 
 levy target for fiscal year 1999 is changed by another law 
 enacted during the 1997 session, the commissioner shall reduce 
 the target in this bill by the amount of the reduction in the 
 enacted law. 

    Subd. 2.    General education levy.  To obtain general 
 education revenue, excluding transition revenue and supplemental 
 revenue, a district may levy an amount not to exceed the general 
 education tax rate times the adjusted net tax capacity of the 
 district for the preceding year.  If the amount of the general 
 education levy would exceed the general education revenue, 
 excluding supplemental revenue, the general education levy shall 
 be determined according to subdivision 3.  

    Subd. 2a. Repealed, 1992 c 499 art 12 s 30 

    Subd. 3.    General education levy; districts off the 
 formula.  If the amount of the general education levy for a 
 district exceeds the district's general education revenue, 
 excluding transition revenue and supplemental revenue, the 
 amount of the general education levy shall be limited to the 
 following: 

    (1) the district's general education revenue, excluding 
 transition revenue and supplemental revenue; plus 

    (2) the amount of the aid reduction for the same school 
 year according to section 124A.24; minus 

    (3) payments made for the same school year according to 
 section 124A.035, subdivision 4. 

    For purposes of statutory cross-reference, a levy made 
 according to this subdivision shall be construed to be the levy 
 made according to subdivision 2. 

    Subd. 4.    General education aid.  A district's general 
 education aid is the sum of the following amounts:  

    (1) the product of (i) the difference between the general 
 education revenue, excluding transition revenue and supplemental 
 revenue, and the general education levy, times (ii) the ratio of 
 the actual amount levied to the permitted levy; 

    (2) transition aid according to section 124A.22, 
 subdivision 13e; 

    (3) supplemental aid according to section 124.214, 
 subdivision 2; 

    (4) shared time aid according to section 124A.02, 
 subdivision 21; and 

    (5) referendum aid according to section 124A.03. 

    Subd. 5.    Uses of revenue.  Except as provided in 
 sections 124A.22, subdivision 11; 124A.225; and 124A.28, general 
 education revenue may be used during the regular school year and 
 the summer for general and special school purposes. 

    HIST: 1987 c 398 art 1 s 12; 1988 c 486 s 61-64; 1988 c 718 
 art 1 s 4-6; 1988 c 719 art 5 s 84; 1989 c 329 art 1 s 13; art 
 13 s 20; 1Sp1989 c 1 art 2 s 11; art 6 s 7; art 9 s 6; 1990 c 
 562 art 1 s 4; 1991 c 265 art 1 s 20-22; 1992 c 499 art 1 s 15; 
 art 12 s 15,16; 1992 c 511 art 4 s 1; 1993 c 224 art 1 s 19,20; 
 1994 c 647 art 1 s 26; 1Sp1995 c 3 art 1 s 46,47; 1996 c 412 art 
 1 s 26; 1Sp1997 c 4 art 1 s 46-49 

*   NOTE:  Subdivisions 1, 2, 3, 4, and 5, are repealed 
*effective June 30, 1999.  Laws 1992, chapter 499, article 7, 
*section 31.

     124A.24 General education levy equity. 

    If a district's general education levy is determined 
 according to section 124A.23, subdivision 3, an amount must be 
 deducted from state aid authorized in this chapter and chapters 
 124 and 124B, receivable for the same school year, and from 
 other state payments receivable for the same school year 
 authorized in chapter 273.  The aid in section 124.646 must not 
 be reduced. 

    The amount of the deduction equals the difference between: 

    (1) the general education tax rate, according to section 
 124A.23, times the district's adjusted net tax capacity used to 
 determine the general education aid for the same school year; 
 and 

    (2) the district's general education revenue, excluding 
 transition revenue and supplemental revenue, for the same school 
 year, according to section 124A.22. 

    HIST: 1987 c 398 art 1 s 13; 1988 c 486 s 65; 1988 c 718 art 1 
 s 7; 1988 c 719 art 5 s 84; 1989 c 209 art 2 s 9; 1989 c 222 s 
 29; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; 1991 c 130 s 
 22; 1991 c 265 art 1 s 23; 1992 c 499 art 12 s 17; 1993 c 224 
 art 1 s 21; 1Sp1995 c 3 art 1 s 48 

*   NOTE:  This section is repealed effective June 30, 1999.  
*Laws 1992, chapter 499, article 7, section 31.

  124A.25 Repealed, 1988 c 486 s 102 

     124A.26 Fund balance pupil units. 

    Subdivision 1.    Fund balance pupil unit definition.  
 Fund balance pupil units means the number of resident pupil 
 units in average daily membership, including shared time pupils, 
 according to section 124A.02, subdivision 20, plus 

    (1) pupils attending the district for which general 
 education aid adjustments are made according to section 
 124A.036, subdivision 5; minus 

    (2) the sum of the resident pupils attending other 
 districts for which general education aid adjustments are made 
 according to section 124A.036, subdivision 5, plus pupils for 
 whom payment is made according to section 126.22, subdivision 8, 
 or 126.23.  

    Subd. 1a. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 2. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 3. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 4. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 5. Repealed, 1Sp1997 c 4 art 1 s 63 

    HIST: 1987 c 398 art 1 s 15; 1988 c 486 s 66; 1Sp1989 c 1 art 
 9 s 7; 1990 c 562 art 1 s 5; 1991 c 265 art 1 s 24; 1992 c 499 
 art 1 s 16,17; art 12 s 18; 1993 c 224 art 1 s 22,23; 1994 c 647 
 art 1 s 27; 1Sp1995 c 3 art 1 s 63 subd 2; 1996 c 412 art 1 s 
 30; 1997 c 7 art 1 s 67; 1Sp1997 c 4 art 1 s 50 

*   NOTE:  Subdivisions 1, 2, and 3, are repealed effective 
*June 30, 1999.  Laws 1992, chapter 499, article 7, section 31.

    124A.27 Subdivision 1. MS 1992 Repealed, 1992 c 499 art 7 
 s 31; 1993 c 224 art 7 s 31 

    Subd. 2. MS 1992 Repealed, 1992 c 499 art 7 s 31; 1993 c 
 224 art 7 s 31 

    Subd. 3. MS 1992 Repealed, 1992 c 499 art 7 s 31; 1993 c 
 224 art 7 s 31 

    Subd. 4. MS 1992 Repealed, 1992 c 499 art 7 s 31; 1993 c 
 224 art 7 s 31 

    Subd. 5. MS 1992 Repealed, 1992 c 499 art 7 s 31; 1993 c 
 224 art 7 s 31 

    Subd. 6. MS 1992 Repealed, 1992 c 499 art 7 s 31; 1993 c 
 224 art 7 s 31 

    Subd. 7. MS 1988 Repealed, 1989 c 329 art 9 s 34; 1992 c 
 499 art 7 s 31; 

    Subd. 8. MS 1992 Repealed, 1992 c 499 art 7 s 31; 1993 c 
 224 art 7 s 31 

    Subd. 9. MS 1992 Repealed, 1992 c 499 art 7 s 31; 1993 c 
 224 art 7 s 31 

    Subd. 10. MS 1987 Supp Repealed, 1988 c 718 art 1 s 14; 
 1992 c 
 499 art 7 s 31; 

    Subd. 11. MS 1994 Repealed, 1992 c 499 art 7 s 31; 1Sp1995 
 c 3 art 1 s 63 

     124A.28 Compensatory education revenue. 

    Subdivision 1.    Use of the revenue.  The compensatory 
 education revenue under section 124A.22, subdivision 3, must be 
 used to meet the educational needs of pupils whose progress 
 toward meeting state or local content or performance standards 
 is below the level that is appropriate for learners of their age.
 Any of the following may be provided to meet these learners' 
 needs: 

    (1) direct instructional services under the assurance of 
 mastery program according to section 124.3111; 

    (2) remedial instruction in reading, language arts, 
 mathematics, other content areas, or study skills to improve the 
 achievement level of these learners; 

    (3) additional teachers and teacher aides to provide more 
 individualized instruction to these learners through individual 
 tutoring, lower instructor-to-learner ratios, or team teaching; 

    (4) a longer school day or week during the regular school 
 year or through a summer program that may be offered directly by 
 the site or under a performance-based contract with a 
 community-based organization; 

    (5) comprehensive and ongoing staff development consistent 
 with district and site plans according to section 126.70, for 
 teachers, teacher aides, principals, and other personnel to 
 improve their ability to identify the needs of these learners 
 and provide appropriate remediation, intervention, 
 accommodations, or modifications; 

    (6) instructional materials and technology appropriate for 
 meeting the individual needs of these learners; 

    (7) programs to reduce truancy, encourage completion of 
 high school, enhance self-concept, provide health services, 
 provide nutrition services, provide a safe and secure learning 
 environment, provide coordination for pupils receiving services 
 from other governmental agencies, provide psychological services 
 to determine the level of social, emotional, cognitive, and 
 intellectual development, and provide counseling services, 
 guidance services, and social work services; 

    (8) bilingual programs, bicultural programs, and programs 
 for learners of limited English proficiency; 

    (9) all day kindergarten; 

    (10) extended school day and extended school year programs; 

    (11) substantial parent involvement in developing and 
 implementing remedial education or intervention plans for a 
 learner, including learning contracts between the school, the 
 learner, and the parent that establish achievement goals and 
 responsibilities of the learner and the learner's parent or 
 guardian; and 

    (12) other methods to increase achievement, as needed.  

    Subd. 1a.    Building allocation.  A district must 
 allocate revenue to each school building in the district where 
 the children who have generated the revenue are served. 

    If the pupil is served at a site other than one owned and 
 operated by the district, the revenue shall be paid to the 
 district and used for services for pupils who generate the 
 revenue. 

    Subd. 1b.    Recommendation.  A school site 
 decision-making team, as defined in section 123.951, subdivision 
 3, paragraph (a), or the instruction and curriculum advisory 
 committee under section 123.972, if the school has no school 
 site decision team, shall recommend how the revenue will be used 
 to carry out the purpose of this section. 

    Subd. 2.    Separate accounts.  Each district that 
 receives compensatory education revenue shall maintain separate 
 accounts to identify expenditures for salaries and programs 
 related to basic skills revenue. 

    Subd. 3.    Annual expenditure report.  Each year a 
 district that receives compensatory education revenue shall 
 submit a report identifying the expenditures it incurred to meet 
 the needs of eligible learners under subdivision 1.  The report 
 must conform to uniform financial and reporting standards 
 established for this purpose. 

    HIST: 1987 c 398 art 1 s 17; 1988 c 718 art 1 s 9,10; 1989 c 
 329 art 3 s 19; 1994 c 647 art 1 s 28; 1996 c 412 art 1 s 27; 
 1Sp1997 c 4 art 1 s 51 

*   NOTE:  This section is repealed effective June 30, 1999.  
*Laws 1992, chapter 499, article 7, section 31.

     124A.29 Reserved revenue for staff development. 

    Subdivision 1.    Staff development and parental 
 involvement revenue.  A district is encouraged to reserve 
 general education revenue for in-service education for programs 
 under section 126.77, subdivision 2, for staff development 
 plans, including plans for challenging instructional activities 
 and experiences under section 126.70, and for curriculum 
 development and programs, other in-service education, teachers' 
 workshops, teacher conferences, the cost of substitute teachers 
 staff development purposes, and other related costs for staff 
 development efforts.  Districts may expend an additional amount 
 of basic revenue for staff development based on their needs.  
 The school board shall initially allocate 50 percent of the 
 revenue to each school site in the district on a per teacher 
 basis, which shall be retained by the school site until used.  
 The board may retain 25 percent to be used for district wide 
 staff development efforts.  The remaining 25 percent of the 
 revenue shall be used to make grants to school sites that 
 demonstrate exemplary use of allocated staff development 
 revenue.  A grant may be used for any purpose authorized under 
 section 126.70, 126.77, subdivision 2, or for the costs of 
 curriculum development and programs, other in-service education, 
 teachers' workshops, teacher conferences, substitute teachers 
 for staff development purposes, and other staff development 
 efforts, and determined by the site decision-making team.  The 
 site decision-making team must demonstrate to the school board 
 the extent to which staff at the site have met the outcomes of 
 the program.  The board may withhold a portion of initial 
 allocation of revenue if the staff development outcomes are not 
 being met. 

    Subd. 2.    Career teacher staff development.  Of a 
 district's basic revenue under section 124A.22, subdivision 2, 
 an amount equal to $5 times the number of actual pupil units 
 shall be reserved by a district operating a career teacher 
 program according to sections 125.701 to 125.705.  The revenue 
 may be used only to provide staff development for the career 
 teacher program. 

    HIST: 1987 c 398 art 1 s 18; 1989 c 329 art 7 s 6; 1991 c 130 
 s 37; 1991 c 265 art 1 s 25; 1992 c 499 art 1 s 18; art 12 s 29; 
 1992 c 571 art 10 s 3; 1993 c 224 art 4 s 33; art 7 s 14; 1994 c 
 647 art 7 s 3; 1Sp1995 c 3 art 1 s 49 

*   NOTE:  Subdivisions 1 and 2 are repealed effective June 30, 
*1999.  Laws 1992, chapter 499, article 7, section 31.

     124A.291 Reserved revenue for certain teacher program. 

    A district that has a family connections program or a 
 mentor-teacher program may reserve part of the basic revenue 
 under section 124A.22, subdivision 2, for the district's share, 
 of the portion of the teaching contract that is in addition to 
 the standard teaching contract of the district. 

    HIST: 1989 c 329 art 7 s 7; 1993 c 224 art 7 s 15; 1996 c 412 
 art 4 s 11 

     124A.292 Staff development incentive. 

    Subdivision 1.    Eligibility.  A school site is 
 eligible for revenue under this section if it has implemented an 
 outplacement program on an ongoing basis to counsel staff and 
 has implemented a program according to section 125.231. 

    Subd. 2.    Revenue.  Staff development incentive 
 revenue is equal to the number of teachers at the site times $25.

    Subd. 3.    Staff development levy.  A district's levy 
 equals its revenue times the lesser of one or the ratio of: 

    (1) the quotient derived by dividing the district's 
 adjusted net tax capacity for the year before the year the levy 
 is certified by the district's actual pupil units for the school 
 year to which the levy is attributable, to 

    (2) the equalizing factor for the school year to which the 
 levy is attributable. 

    Subd. 4.    Staff development aid.  A district's aid 
 equals its revenue minus its levy times the ratio of the actual 
 amount levied to the permitted levy. 

    Subd. 5.    Use.  The revenue must be used at the site 
 for staff development purposes. 

    HIST: 1993 c 224 art 7 s 16; 1994 c 647 art 7 s 4 

     124A.30 Statewide average revenue. 

    By October 1 of each year the commissioner shall estimate 
 the statewide average general education revenue per actual pupil 
 unit and the range in general education revenue among pupils and 
 districts by computing the difference between the fifth and 
 ninety-fifth percentiles of general education revenue.  The 
 commissioner must provide that information to all school 
 districts. 

    If the disparity in general education revenue as measured 
 by the difference between the fifth and ninety-fifth percentiles 
 increases in any year, the commissioner must propose a change in 
 the general education formula that will limit the disparity in 
 general education revenue to no more than the disparity for the 
 previous school year.  The commissioner must submit the proposal 
 to the education committees of the legislature by January 15. 

    HIST: 1987 c 398 art 1 s 24; 1988 c 486 s 69; 1991 c 265 art 1 
 s 26 

     124A.31 Equitable compensation penalty. 

    Subdivision 1.    Implementation.  A school district 
 subject to sections 471.991 to 471.999 shall implement the plan 
 to establish equitable compensation relationships set forth in 
 its report to the commissioner of employee relations.  The plan 
 shall be implemented by December 31, 1991, unless a later date 
 is approved by the commissioner.  If a report was filed before 
 October 1, 1987, and had an implementation date after December 
 31, 1991, the date in the report shall be approved by the 
 commissioner.  

    Subd. 2.    Aid reduction for administration costs.  By 
 October 1, 1992, the commissioner of employee relations shall 
 certify to the commissioner of education the school districts 
 that have not complied with subdivision 1.  For each of these 
 school districts, the commissioner of education shall reduce 
 general education aid for fiscal year 1993 by an amount equal to 
 five percent of the district's administration costs for the 
 1990-1991 school year.  If the reduction exceeds the district's 
 general education aid, the reduction shall be made from other 
 aids paid to the district.  

    Subd. 3.    Adjustment of years.  The commissioners of 
 employee relations and children, families, and learning shall 
 adjust the years designated in subdivision 2 for school 
 districts with implementation dates after December 31, 1991.  

    Subd. 4.    Extensions.  The commissioner of employee 
 relations must extend an implementation date upon a finding that 
 failure to implement was attributable to severe hardship or to 
 circumstances beyond the control of the district. 

    HIST: 1988 c 718 art 7 s 34; 1Sp1995 c 3 art 16 s 13 

     124A.697 Title. 

    Sections 124A.697 to 124A.73 may be cited as the "Minnesota 
 education finance act of 1992." 

    HIST: 1992 c 499 art 7 s 4 

*   NOTE:  This section, as added by Laws 1992, chapter 499, 
*article 7, section 4, is effective for revenue for fiscal year 
*2000.  Laws 1992, chapter 499, article 7, section 32.

     124A.698 Policy. 

    Financing the education of our children is one of state 
 government's most important functions.  In performing this 
 function, the state seeks to provide sufficient funding while 
 encouraging equity, accountability, and incentives toward 
 quality improvement.  To help achieve these goals and to help 
 control future spending growth, the state will fund core 
 instruction and related support services, will facilitate 
 improvement in the quality and delivery of programs and 
 services, and will equalize revenues raised locally for 
 discretionary purposes. 

    HIST: 1993 c 224 art 1 s 24 

     124A.70 Core instructional aid. 

    Subdivision 1.    Basic outcomes.  Basic outcomes are 
 defined as learner outcomes that must be achieved as a 
 requirement for graduation, specified in rule by the state board 
 of education.  Basic outcomes are the basic knowledge and skills 
 determined necessary by the board for graduates to become 
 productive employees, parents, and citizens.  The board shall 
 review and amend, if necessary, its graduation rule every two 
 years. 

    Subd. 2.    Aid amount.  Core instructional aid is equal 
 to the cost determined necessary by the legislature to achieve 
 the basic outcomes for each student times the number of actual 
 pupil units for the school year plus support services aid for 
 the district as determined under section 124A.711.  The core 
 instructional aid allowance for fiscal year 1998 and thereafter 
 is zero. 

    Subd. 3. Repealed by amendment, 1993 c 224 art 1 s 25 

    Subd. 3a.    Aid to learning sites.  Each district is 
 encouraged to direct core instructional aid to the learning 
 sites in the district and minimize the core instructional aid 
 used for other programs or services.  Each district shall, to 
 the extent possible, facilitate allocation of each learning 
 site's core instructional aid by site management teams 
 consisting of site administrators, teachers, parents, and other 
 interested persons. 

    Subd. 4. Repealed by amendment, 1993 c 224 art 1 s 25 

    Subd. 5.    Aid uses.  Aid received under this section 
 may only be used to deliver instructional services needed to 
 assure that all pupils in the district achieve the basic 
 outcomes through the following programs and services: 

    (1) salaries and benefits for licensed and nonlicensed 
 instructional staff used to instruct or direct instructional 
 delivery or provide academic instructional support services; 

    (2) instructional supplies and resources including, but not 
 limited to, curricular materials, maps, individualized 
 instructional materials, test materials, and other related 
 supplies; 

    (3) payments to other service providers for direct 
 instruction or instructional materials; 

    (4) computers, interactive television, and other 
 technologically related equipment used in the direct delivery of 
 instruction; 

    (5) programs and services related to students' academic and 
 career progression including, but not limited to, community- and 
 work-based learning through mentoring, community service, and 
 youth apprenticeships; 

    (6) early childhood education programs designed to ensure 
 that students are ready to learn when they enter the education 
 system; and 

    (7) activities related to measurement of student progress 
 toward basic outcomes. 

    HIST: 1992 c 499 art 7 s 5; 1993 c 224 art 1 s 25 

*   NOTE:  This section, as added by Laws 1992, chapter 499, 
*article 7, section 5, is effective for revenue for fiscal year 
*2000.  Laws 1992, chapter 499, article 7, section 32.

     124A.71 Elective instructional revenue. 

    Subdivision 1.    Elective outcomes.  Elective outcomes 
 are defined as learner outcomes that may be offered to students 
 that are not defined as basic outcomes.  The standards of 
 achievement of elective outcomes are determined by the local 
 school board. 

    Subd. 2.    Revenue.  Elective instructional revenue is 
 equal to the elective instructional revenue allowance times the 
 number of pupil units for the school year.  The revenue 
 allowance for fiscal year 2000 and thereafter is zero. 

    Subd. 3.    Levy.  Elective instructional levy is equal 
 to elective instructional revenue times the lesser of one or the 
 ratio of: 

    (1) net tax capacity divided by the number of pupil units 
 for the year the revenue is attributable, divided by 

    (2) the equalizing factor. 

    Subd. 4.    Aid.  Elective instructional aid is equal to 
 elective instructional revenue minus elective instructional 
 levy.  If a district levies less than the authorized amount, the 
 aid shall be reduced proportionately. 

    Subd. 5.    Revenue use.  Elective instructional revenue 
 may only be used for the following purposes: 

    (1) salaries and benefits for licensed and nonlicensed 
 instructional staff used to instruct or direct instructional 
 delivery; 

    (2) instructional supplies and resources including, but not 
 limited to, curricular materials, maps, individualized 
 instructional materials, test materials, and other related 
 supplies; 

    (3) tuition payments to other service providers for direct 
 instruction or instructional materials; 

    (4) computers, interactive television, and other 
 technologically related equipment used in the direct delivery of 
 instruction; 

    (5) instructional support services including staff 
 development, curriculum development, and other instructional 
 support services; 

    (6) pupil support services including health, counseling, 
 and psychological services; 

    (7) administrative costs that are not to exceed five 
 percent of the operating budget for the year; and 

    (8) school district facility operations and maintenance. 

    HIST: 1992 c 499 art 7 s 6 

*   NOTE:  This section, as added by Laws 1992, chapter 499, 
*article 7, section 6, is effective for revenue for fiscal year 
*2000.  Laws 1992, chapter 499, article 7, section 32.

     124A.711 Support services aid. 

    Subdivision 1.    Support services.  "Support services" 
 means services and programs beyond the core instruction 
 considered essential to allow students to achieve the basic 
 outcomes including, but not limited to, the following: 

    (1) counselors, psychologists, and social workers; 

    (2) services and programs for students needing special 
 education and handicapped children aged zero to three; 

    (3) health care, including early childhood screening; 

    (4) transportation; 

    (5) nutrition programs; 

    (6) libraries and other media and information centers; 

    (7) programs for specialized curricula relating to programs 
 such as violence prevention, AIDS awareness and prevention, and 
 drug abuse prevention; and 

    (8) programs and services for students judged to be at high 
 risk of not completing their education or otherwise having a 
 social or economic problem in excess of other students. 

    Subd. 2.    Determination of aid.  The total amount of 
 support services aid shall be determined according to indices 
 for each service recommended by the commissioner of children, 
 families, and learning after consultations with appropriate 
 state agencies, educators, and other interested persons.  The 
 indices shall reflect the need for each service based on the 
 economic, geographic, demographic, and other appropriate 
 characteristics of each district. 

    HIST: 1993 c 224 art 1 s 26; 1Sp1995 c 3 art 16 s 13; 1997 c 7 
 art 2 s 12 

     124A.72 Local discretionary revenue. 

    Subdivision 1.    Local discretionary revenue.  Local 
 discretionary revenue is available for districts to implement 
 programs to offer outcomes or to cover other district operating 
 expenditures not provided according to sections 124A.697 and 
 124A.70. 

    Subd. 2.    Revenue.  A district's local discretionary 
 revenue is equal to the amount authorized according to section 
 124A.03.  Revenue may not exceed zero times the actual pupil 
 units for the year the revenue is attributable. 

    Subd. 3.    Levy.  Local discretionary levy is equal to 
 local discretionary revenue times the lesser of one or the ratio 
 of: 

    (1) net tax capacity divided by the number of pupil units 
 for the year the revenue is attributable, divided by 

    (2) the equalizing factor. 

    Subd. 4.    Aid.  Local discretionary aid is equal to 
 local discretionary revenue minus local discretionary levy.  If 
 a district levies less than the authorized amount, the aid shall 
 be reduced proportionately. 

    HIST: 1992 c 499 art 7 s 7 

*   NOTE:  This section, as added by Laws 1992, chapter 499, 
*article 7, section 7, is effective for revenue for fiscal year 
*2000.  Laws 1992, chapter 499, article 7, section 32.

     124A.73 Education trust fund. 

    Subdivision 1.    Creation.  The commissioner shall 
 deposit to the credit of the education trust fund all money 
 available to the credit of the trust.  The commissioner shall 
 maintain the trust as a separate fund to be used only to pay 
 money as provided by law to school districts or to repay 
 advances made from the general fund, as provided under 
 subdivision 4. 

    Subd. 2.    Appropriation.  The money to be paid by law 
 from the education trust fund is appropriated annually. 

    Subd. 3.    Estimates; reduction of payments.  (a) At 
 the beginning of each fiscal year, the commissioner, in 
 consultation with the commissioner of revenue, shall estimate 
 for the fiscal year: 

    (1) the amount of revenues to be deposited in the trust 
 fund and other law; and 

    (2) the payments authorized by law to be made out of the 
 trust. 

    (b) If the estimated payments exceed the estimated receipts 
 of the trust fund, the appropriations from the trust to each 
 program are proportionately reduced, unless otherwise provided 
 by law. 

    Subd. 4.    General fund advance.  If the money in the 
 trust fund is insufficient to make payments on the dates 
 provided by law, but the commissioner estimates receipts for the 
 fiscal year will be sufficient, the commissioner shall advance 
 money from the general fund to the trust fund necessary to make 
 the payments.  On or before the close of the biennium, the trust 
 shall repay the advances with interest, calculated at the rate 
 of earnings on invested treasurer's cash, to the general fund. 

    HIST: 1992 c 499 art 7 s 8 

*   NOTE:  This section, as added by Laws 1992, chapter 499, 
*article 7, section 8, is effective for revenue for fiscal year 
*2000.  Laws 1992, chapter 499, article 7, section 32.