Bill Text: MN HF1574 | 2013-2014 | 88th Legislature | Introduced


Bill Title: State general fund budget priority created for funding unreimbursed special education costs, funding provided, and money appropriated.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-03-14 - Introduction and first reading, referred to Education Finance [HF1574 Detail]

Download: Minnesota-2013-HF1574-Introduced.html

1.1A bill for an act
1.2relating to education finance; creating a state general fund budget priority for
1.3funding unreimbursed special education costs; appropriating money;amending
1.4Minnesota Statutes 2012, sections 16A.152, subdivision 2; 127A.065.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 16A.152, subdivision 2, is amended to read:
1.7    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
1.8fund revenues and expenditures, the commissioner of management and budget determines
1.9that there will be a positive unrestricted budgetary general fund balance at the close of
1.10the biennium, the commissioner of management and budget must allocate money to the
1.11following accounts and purposes in priority order:
1.12    (1) the cash flow account established in subdivision 1 until that account reaches
1.13$350,000,000;
1.14    (2) the budget reserve account established in subdivision 1a until that account
1.15reaches $653,000,000;
1.16    (3) the amount necessary to increase the aid payment schedule for school district
1.17aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
1.18nearest tenth of a percent without exceeding the amount available and with any remaining
1.19funds deposited in the budget reserve;
1.20    (4) the amount necessary to restore all or a portion of the net aid reductions under
1.21section 127A.441 and to reduce the property tax revenue recognition shift under section
1.22123B.75, subdivision 5 , by the same amount; and
2.1(5) to the state airports fund, the amount necessary to restore the amount transferred
2.2from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
2.3subdivision 5; and
2.4(6) to pay school districts for their unreimbursed special education costs under
2.5section 127A.065.
2.6    (b) The amounts necessary to meet the requirements of this section are appropriated
2.7from the general fund within two weeks after the forecast is released or, in the case of
2.8transfers under paragraph (a), clauses (3) and, (4), and (6), as necessary to meet the
2.9appropriations schedules otherwise established in statute.
2.10    (c) The commissioner of management and budget shall certify the total dollar amount
2.11of the reductions under paragraph (a), clauses (3) and, (4), and (6), to the commissioner
2.12of education. The commissioner of education shall increase the aid payment percentage
2.13and, reduce the property tax shift percentage, and increase the special education funding
2.14to reduce the unreimbursed costs by these amounts and apply those reductions to the
2.15current fiscal year and thereafter.
2.16EFFECTIVE DATE.This section is effective for state general fund forecasts
2.17occurring after July 1, 2013.

2.18    Sec. 2. Minnesota Statutes 2012, section 127A.065, is amended to read:
2.19127A.065 CROSS-SUBSIDY REPORT.
2.20    (a) By January 10, the commissioner of education shall submit an annual report
2.21to the legislative committees having jurisdiction over kindergarten through grade 12
2.22education on the amount each district is cross-subsidizing special education costs with
2.23general education revenue.
2.24(b) Any payments allocated under section 16A.152, subdivision 2, paragraph (a),
2.25clause (6), are appropriated from the general fund to the commissioner of education
2.26for proportionate payment of unreimbursed special education costs incurred by school
2.27districts for the most recent year as measured by the report required in paragraph (a), for
2.28each district's adjusted net special education cross-subsidy.
2.29EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.
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