Bill Text: MN HF2960 | 2011-2012 | 87th Legislature | Introduced
Bill Title: General fund appropriations reduction required to provide an annual increase in the school district aid payment percentage.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2012-03-22 - Introduction and first reading, referred to Education Finance [HF2960 Detail]
Download: Minnesota-2011-HF2960-Introduced.html
1.2relating to finance; requiring a reduction in general fund appropriations to
1.3provide an annual increase in the aid payment percentage for school districts;
1.4amending Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2;
1.5proposing coding for new law in Minnesota Statutes, chapter 16A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [16A.1524] APPROPRIATION REDUCTION AND SCHOOL AID
1.8PAYMENT PERCENTAGE INCREASE.
1.9 Subdivision 1. General fund appropriation reduction. By July 15 of each
1.10fiscal year, the commissioner of management and budget shall reduce all general fund
1.11appropriations by one percent and cancel these appropriations to the general fund.
1.12 Subd. 2. Exemptions. Appropriations made to the commissioner of education and
1.13the appropriation under section 16A.641 are exempt from subdivision 1.
1.14 Subd. 3. Increase in school aid payment percentage. If the current year aid
1.15payment percentage under section 127A.45 is less than 90 percent, by July 31 of each
1.16fiscal year, the commissioner of management and budget shall certify to the commissioner
1.17of education the total amount of the general fund appropriation reductions under
1.18subdivision 1. The commissioner of education shall increase the aid payment percentage
1.19to not more than 90 percent rounded to the nearest tenth of a percent by the certified
1.20amount for that fiscal year and thereafter. The amounts necessary to meet this requirement
1.21are appropriated from the general fund to the commissioner of education.
1.22 Sec. 2. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2, is
1.23amended to read:
2.1 Subd. 2. Definitions. (a) "Other district receipts" means payments by county
2.2treasurers pursuant to section276.10 , apportionments from the school endowment fund
2.3pursuant to section127A.33 , apportionments by the county auditor pursuant to section
2.4127A.34, subdivision 2
, and payments to school districts by the commissioner of revenue
2.5pursuant to chapter 298.
2.6(b) "Cumulative amount guaranteed" means the product of
2.7(1) the cumulative disbursement percentage shown in subdivision 3; times
2.8(2) the sum of
2.9(i) the current year aid payment percentage of the estimated aid and credit
2.10entitlements paid according to subdivision 13; plus
2.11(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
2.12(iii) the other district receipts.
2.13(c) "Payment date" means the date on which state payments to districts are made
2.14by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
2.15or a weekday which is a legal holiday, the payment shall be made on the immediately
2.16preceding business day. The commissioner may make payments on dates other than
2.17those listed in subdivision 3, but only for portions of payments from any preceding
2.18payment dates which could not be processed by the electronic funds transfer method due
2.19to documented extenuating circumstances.
2.20(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
2.21fiscal year 2011, and60 64.3 in fiscal years 2012 and later.
2.22(e) Notwithstanding paragraph (d), the current year aid payment percentage equals
2.23the amount in paragraph (d), as adjusted by section 16A.152, subdivision 2, or section
2.2416A.1524.
1.3provide an annual increase in the aid payment percentage for school districts;
1.4amending Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2;
1.5proposing coding for new law in Minnesota Statutes, chapter 16A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [16A.1524] APPROPRIATION REDUCTION AND SCHOOL AID
1.8PAYMENT PERCENTAGE INCREASE.
1.9 Subdivision 1. General fund appropriation reduction. By July 15 of each
1.10fiscal year, the commissioner of management and budget shall reduce all general fund
1.11appropriations by one percent and cancel these appropriations to the general fund.
1.12 Subd. 2. Exemptions. Appropriations made to the commissioner of education and
1.13the appropriation under section 16A.641 are exempt from subdivision 1.
1.14 Subd. 3. Increase in school aid payment percentage. If the current year aid
1.15payment percentage under section 127A.45 is less than 90 percent, by July 31 of each
1.16fiscal year, the commissioner of management and budget shall certify to the commissioner
1.17of education the total amount of the general fund appropriation reductions under
1.18subdivision 1. The commissioner of education shall increase the aid payment percentage
1.19to not more than 90 percent rounded to the nearest tenth of a percent by the certified
1.20amount for that fiscal year and thereafter. The amounts necessary to meet this requirement
1.21are appropriated from the general fund to the commissioner of education.
1.22 Sec. 2. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2, is
1.23amended to read:
2.1 Subd. 2. Definitions. (a) "Other district receipts" means payments by county
2.2treasurers pursuant to section
2.3pursuant to section
2.5pursuant to chapter 298.
2.6(b) "Cumulative amount guaranteed" means the product of
2.7(1) the cumulative disbursement percentage shown in subdivision 3; times
2.8(2) the sum of
2.9(i) the current year aid payment percentage of the estimated aid and credit
2.10entitlements paid according to subdivision 13; plus
2.11(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
2.12(iii) the other district receipts.
2.13(c) "Payment date" means the date on which state payments to districts are made
2.14by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
2.15or a weekday which is a legal holiday, the payment shall be made on the immediately
2.16preceding business day. The commissioner may make payments on dates other than
2.17those listed in subdivision 3, but only for portions of payments from any preceding
2.18payment dates which could not be processed by the electronic funds transfer method due
2.19to documented extenuating circumstances.
2.20(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
2.21fiscal year 2011, and
2.22(e) Notwithstanding paragraph (d), the current year aid payment percentage equals
2.23the amount in paragraph (d), as adjusted by section 16A.152, subdivision 2, or section
2.2416A.1524.
