1997 Minnesota Statutes

     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.