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126C.21 DEDUCTIONS FROM GENERAL EDUCATION AID.
    Subdivision 1. Permanent school fund. The amount of money received by a district as
income from the permanent school fund for any year must be deducted from the general education
aid earned by the district for the same year or from aid earned from other state sources.
    Subd. 2. Minimum. The amount payable to any district from state sources for any one
year may not be reduced below the amount payable as apportionment of the school endowment
fund pursuant to sections 127A.32 to 127A.34.
    Subd. 3. County apportionment deduction. Each year the amount of money apportioned
to a district for that year pursuant to sections 127A.34, subdivision 2, and 272.029, subdivision
6
, must be deducted from the general education aid earned by that district for the same year
or from aid earned from other state sources.
    Subd. 4. Taconite deductions. For districts that have revenue under sections 298.018;
298.225; 298.24 to 298.28, excluding 298.26 and 298.28, subdivision 4, paragraph (d); 298.34
to 298.39; 298.391 to 298.396; 298.405; and 477A.15, or any law imposing a tax upon severed
mineral values; the general education aid must be reduced in the final adjustment payment by
(1) the amount of the revenue recognized pursuant to those sections for the fiscal year to which
the final adjustment is attributable, less (2) the amount that was calculated, pursuant to section
126C.48, 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 subdivision, the next fiscal year's general education aid
to that district must be reduced by this negative amount in the following manner: there must 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 subdivision must reduce revenue in
the fiscal year to which the final adjustment payment is attributable.
    Subd. 5. Adjustment for failure to meet federal maintenance of effort. (a) The general
education aid paid to a school district or charter school that failed to meet federal special
education maintenance of effort for the previous fiscal year must be reduced by the amount that
must be paid to the federal government due to the shortfall.
    (b) The general education aid paid to school districts that were members of a cooperative
that failed to meet federal special education maintenance of effort must be reduced by the
amount that must be paid to the federal government due to the shortfall. The commissioner
must apportion the aid reduction amount to the member school districts based on each district's
individual shortfall in maintaining effort, and on each member district's proportionate share of
any shortfall in expenditures made by the cooperative. Each district's proportionate share of
shortfall in expenditures made by the cooperative must be calculated using the adjusted marginal
pupil units of each member school district.
    (c) The amounts recovered under this subdivision shall be paid to the federal government to
meet the state's obligations resulting from the district's, charter school's, or cooperative's failure to
meet federal special education maintenance of effort.
History: 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; 1998 c 397 art 7 s 143,164; art 11 s 3; 1999 c
86 art 1 s 34; 1Sp2001 c 5 art 6 s 2; 2002 c 377 art 8 s 1; 1Sp2003 c 9 art 1 s 42; 1Sp2005 c
5 art 1 s 34; 2006 c 263 art 3 s 12; 2007 c 146 art 1 s 12,13
NOTE: The amendment to subdivision 3 by Laws 2007, chapter 146, article 1, section 12,
is effective for revenue for fiscal year 2009. Laws 2007, chapter 146, article 1, section 12, the
effective date.