Bill Text: MN HF218 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Location equity index created, general education revenue formula modified, and revenue increased for some school districts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2011-01-26 - Introduction and first reading, referred to Education Finance [HF218 Detail]
Download: Minnesota-2011-HF218-Introduced.html
1.2relating to education finance; creating a location equity index; modifying the
1.3general education revenue formula; increasing revenue for some school districts;
1.4amending Minnesota Statutes 2010, sections 126C.01, by adding a subdivision;
1.5126C.10, subdivision 1, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 126C.01, is amended by adding a
1.8subdivision to read:
1.9 Subd. 12. Location equity index. (a) A school district's wage equity index equals
1.10each district's composite wage level divided by the statewide average wage for the same
1.11period. The composite wage level for a school district equals the sum of 80 percent of the
1.12district's county wage level and 20 percent of the district's economic development region
1.13composite wage level. The composite wage level is computed by using the most recent
1.14three-year weighted wage data with the coefficient weights set at 0.5 for the most recent
1.15year, 0.3 for the prior year, and 0.15 for the second prior year.
1.16(b) A school district's housing equity index equals the ratio of each district's county
1.17median home value to the statewide median home value.
1.18(c) A school district's location equity index equals the greater of one, or the sum of
1.19(1) 0.65 times the district's wage equity index, and (2) 0.35 times the district's housing
1.20equity index.
1.21(d) The commissioner of education annually must recalculate the indexes in this
1.22section. For purposes of this subdivision, the commissioner must locate a school district
1.23with boundaries that cross county borders in the county that generates the highest location
1.24equity index for that district.
2.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
2.2and later.
2.3 Sec. 2. Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:
2.4 Subdivision 1. General education revenue.For fiscal year 2006 and later, The
2.5general education revenue for each district equals the sum of the district's basic revenue,
2.6extended time revenue, gifted and talented revenue, location equity revenue, basic skills
2.7revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
2.8revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
2.9alternative teacher compensation revenue, and transition revenue.
2.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
2.11and later.
2.12 Sec. 3. Minnesota Statutes 2010, section 126C.10, is amended by adding a subdivision
2.13to read:
2.14 Subd. 2c. Location equity revenue. A school district's location equity revenue
2.15equals the product of:
2.16(1) the basic formula allowance for that year;
2.17(2) the district's adjusted marginal cost pupil units for that year; and
2.18(3) the district's location equity index minus one.
2.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
2.20and later.
1.3general education revenue formula; increasing revenue for some school districts;
1.4amending Minnesota Statutes 2010, sections 126C.01, by adding a subdivision;
1.5126C.10, subdivision 1, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 126C.01, is amended by adding a
1.8subdivision to read:
1.9 Subd. 12. Location equity index. (a) A school district's wage equity index equals
1.10each district's composite wage level divided by the statewide average wage for the same
1.11period. The composite wage level for a school district equals the sum of 80 percent of the
1.12district's county wage level and 20 percent of the district's economic development region
1.13composite wage level. The composite wage level is computed by using the most recent
1.14three-year weighted wage data with the coefficient weights set at 0.5 for the most recent
1.15year, 0.3 for the prior year, and 0.15 for the second prior year.
1.16(b) A school district's housing equity index equals the ratio of each district's county
1.17median home value to the statewide median home value.
1.18(c) A school district's location equity index equals the greater of one, or the sum of
1.19(1) 0.65 times the district's wage equity index, and (2) 0.35 times the district's housing
1.20equity index.
1.21(d) The commissioner of education annually must recalculate the indexes in this
1.22section. For purposes of this subdivision, the commissioner must locate a school district
1.23with boundaries that cross county borders in the county that generates the highest location
1.24equity index for that district.
2.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
2.2and later.
2.3 Sec. 2. Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:
2.4 Subdivision 1. General education revenue.
2.5general education revenue for each district equals the sum of the district's basic revenue,
2.6extended time revenue, gifted and talented revenue, location equity revenue, basic skills
2.7revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
2.8revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
2.9alternative teacher compensation revenue, and transition revenue.
2.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
2.11and later.
2.12 Sec. 3. Minnesota Statutes 2010, section 126C.10, is amended by adding a subdivision
2.13to read:
2.14 Subd. 2c. Location equity revenue. A school district's location equity revenue
2.15equals the product of:
2.16(1) the basic formula allowance for that year;
2.17(2) the district's adjusted marginal cost pupil units for that year; and
2.18(3) the district's location equity index minus one.
2.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
2.20and later.
