Bill Text: MN SF576 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Education advancement revenue establishment and appropriation
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-02-25 - Withdrawn and re-referred to Taxes [SF576 Detail]
Download: Minnesota-2013-SF576-Introduced.html
1.2relating to education finance; creating education advancement revenue; reducing
1.3the operating referendum; reducing property taxes; appropriating money;
1.4amending Minnesota Statutes 2012, sections 126C.10, subdivision 1, by adding
1.5subdivisions; 126C.13, subdivision 4; 126C.17, subdivisions 1, 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
1.8 Subdivision 1. General education revenue. The general education revenue for
1.9each district equals the sum of the district's basic revenue, extended time revenue, gifted
1.10and talented revenue, small schools revenue, basic skills revenue, training and experience
1.11revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
1.12revenue, total operating capital revenue, education advancement revenue, equity revenue,
1.13alternative teacher compensation revenue, and transition revenue.
1.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
1.15and later.
1.16 Sec. 2. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
1.17to read:
1.18 Subd. 37. Education advancement revenue. The education advancement revenue
1.19for each district equals the advancement allowance times the resident marginal cost
1.20pupil units for the school year. The advancement allowance for fiscal year 2015 and
1.21later years is $300.
1.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
1.23and later.
2.1 Sec. 3. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.2to read:
2.3 Subd. 38. Education advancement rate. The commissioner must establish the
2.4education advancement rate by July 1 of each year for levies payable in the following year.
2.5The education advancement tax capacity rate must be a rate rounded up to the nearest
2.6hundredth of a percent that, when applied to the adjusted net tax capacity for all districts,
2.7raises the amounts specified in this subdivision. The education advancement rate must
2.8be the rate that raises $100,000,000 for fiscal year 2015 and later years. The education
2.9advancement rate may not be changed due to changes or corrections made to a district's
2.10adjusted net tax capacity after the tax rate has been established. A school district may
2.11adopt a resolution to reduce its levy below the amount calculated in this subdivision.
2.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.13and later.
2.14 Sec. 4. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.15to read:
2.16 Subd. 39. Education advancement levy. (a) To obtain education advancement
2.17revenue, a district may levy an amount not to exceed the education advancement rate
2.18times the adjusted net tax capacity of the district for the preceding year. If the amount
2.19of the education advancement levy would exceed the education advancement revenue,
2.20the education advancement levy must be determined according to paragraph (b). If a
2.21district adopts a board resolution to reduce its education advancement levy according to
2.22subdivision 38, the district's education advancement aid shall be reduced proportionately.
2.23(b) If the amount of the education advancement levy for a district exceeds the
2.24district's education advancement revenue, the amount of the education advancement levy
2.25must be limited to the district's education advancement revenue.
2.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.27and later.
2.28 Sec. 5. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.29to read:
2.30 Subd. 40. Education advancement aid. For fiscal year 2015 and later, a school
2.31district's education advancement aid is the product of: (1) the difference between the
2.32district's education advancement revenue and the education advancement levy; times (2)
2.33the ratio of the actual amount levied to the permitted levy.
3.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.2and later.
3.3 Sec. 6. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
3.4 Subd. 4. General education aid. (a) For fiscal years2007 2013 and later 2014, a
3.5district's general education aid is the sum of the following amounts:
3.6 (1) general education revenue, excluding equity revenue, total operating capital
3.7revenue, alternative teacher compensation revenue, and transition revenue;
3.8 (2) operating capital aid under section126C.10, subdivision 13b ;
3.9 (3) equity aid under section126C.10, subdivision 30 ;
3.10 (4) alternative teacher compensation aid under section126C.10, subdivision 36 ;
3.11 (5) transition aid under section126C.10, subdivision 33 ;
3.12 (6) shared time aid under section126C.01, subdivision 7 ;
3.13 (7) referendum aid under section126C.17 , subdivisions 7 and 7a; and
3.14 (8) online learning aid according to section124D.096 .
3.15(b) For fiscal year 2015 and later, a district's general education aid is the sum of
3.16the following amounts:
3.17(1) general education revenue, excluding equity revenue, total operating capital
3.18revenue, alternative teacher compensation revenue, education advancement revenue, and
3.19transition revenue;
3.20(2) operating capital aid under section 126C.10, subdivision 13b;
3.21(3) equity aid under section 126C.10, subdivision 30;
3.22(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
3.23(5) education advancement aid under section 126C.10, subdivision 41;
3.24(6) transition aid under section 126C.10, subdivision 33;
3.25(7) shared time aid under section 126C.01, subdivision 7;
3.26(8) referendum aid under section 126C.17, subdivisions 7 and 7a; and
3.27(9) online learning aid according to section 124D.096.
3.28 Sec. 7. Minnesota Statutes 2012, section 126C.17, subdivision 1, is amended to read:
3.29 Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
3.30initial referendum revenue allowance equals the sum of the allowance under section
3.31126C.16, subdivision 2
, plus any additional allowance per resident marginal cost pupil
3.32unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
3.33plus the referendum conversion allowance approved under subdivision 13, minus $415.
3.34For districts with more than one referendum authority, the reduction must be computed
4.1separately for each authority. The reduction must be applied first to the referendum
4.2conversion allowance and next to the authority with the earliest expiration date. A
4.3district's initial referendum revenue allowance may not be less than zero.
4.4(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
4.5referendum allowance plus any additional allowance per resident marginal cost pupil unit
4.6authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
4.7fiscal year 2003 and later.
4.8(c) (b) For fiscal year 2004 and later years 2013 and 2014, a district's referendum
4.9revenue allowance equals the sum of:
4.10(1) the product of (i) the ratio of the resident marginal cost pupil units the district
4.11would have counted for fiscal year 2004 under Minnesota Statutes 2002, section126C.05 ,
4.12to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
4.13referendum allowance plus any additional allowance per resident marginal cost pupil unit
4.14authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
4.15year 2003 and later, plus
4.16(2) any additional allowance per resident marginal cost pupil unit authorized under
4.17subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
4.18(c) For fiscal year 2015 and later, a district's referendum revenue allowance equals
4.19the total of:
4.20(1) the product of (i) the ratio of the resident marginal cost pupil units the district
4.21would have counted for fiscal year 2004 under Minnesota Statutes 2002, section126C.05 ,
4.22to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
4.23referendum allowance plus any additional allowance per resident marginal cost pupil unit
4.24authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
4.25year 2003 and later, plus
4.26(2) any additional allowance per resident marginal cost pupil unit authorized under
4.27subdivision 9 after May 30, 2003, for fiscal year 2005 and later, minus
4.28(3) $300.
4.29A district's referendum revenue allowance may not be less than zero.
4.30 Sec. 8. Minnesota Statutes 2012, section 126C.17, subdivision 2, is amended to read:
4.31 Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for
4.32fiscalyear 2007 and later years 2013 and 2014, a district's referendum allowance must
4.33not exceed the greater of:
5.1(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
5.2times the annual inflationary increase as calculated under paragraph(b) (c) plus (ii) its
5.3referendum conversion allowance for fiscal year 2003, minus (iii) $215;
5.4(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
5.5annual inflationary increase as calculated under paragraph(b) (c); or
5.6(3) for a newly reorganized district created after July 1, 2006, the referendum
5.7revenue authority for each reorganizing district in the year preceding reorganization
5.8divided by its resident marginal cost pupil units for the year preceding reorganization.
5.9(b) Notwithstanding subdivision 1, for fiscal year 2015 and later, a district's
5.10referendum allowance must not exceed the greater of:
5.11(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times
5.121.177 times the annual inflationary increase as calculated under paragraph (c) plus (ii) its
5.13referendum conversion allowance for fiscal year 2003, minus (iii) $515;
5.14(2) the greater of: (i) 20.26 percent of the formula allowance or (ii) $1,294 times the
5.15annual inflationary increase as calculated under paragraph (c); or
5.16(3) for a newly reorganized district created after July 1, 2006, the referendum
5.17revenue authority for each reorganizing district in the year preceding reorganization
5.18divided by its resident marginal cost pupil units for the year preceding reorganization.
5.19(b) (c) For purposes of this subdivision, for fiscal year 2005 and later, "inflationary
5.20increase" means one plus the percentage change in the Consumer Price Index for
5.21urban consumers, as prepared by the United States Bureau of Labor Standards, for the
5.22current fiscal year to fiscal year 2004. For fiscal years 2009 and later, for purposes of
5.23paragraph (a), clause (1), and paragraph (b), clause (1), the inflationary increase equals the
5.24inflationary increase for fiscal year 2008 plus one-fourth of the percentage increase in the
5.25formula allowance for that year compared with the formula allowance for fiscal year 2008.
5.26 Sec. 9. DIRECTION TO THE COMMISSIONER.
5.27In computing the reduction to a school district's referendum allowance, the
5.28commissioner of education must first reduce a district's referendum allowance with the
5.29earliest expiration date and then, if necessary, reduce to additional referendum authority
5.30allowances based on the next earliest expiration date.
5.31 Sec. 10. OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.
5.32Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school
5.33district may not authorize an increase to its operating revenue in fiscal year 2015. A school
5.34district may reauthorize an operating referendum that is expiring in fiscal year 2015. If a
6.1school district asks the voters to reauthorize operating referendum authority that is expiring
6.2in fiscal year 2015, it may request a reauthorization of that expiring authority minus $300.
1.3the operating referendum; reducing property taxes; appropriating money;
1.4amending Minnesota Statutes 2012, sections 126C.10, subdivision 1, by adding
1.5subdivisions; 126C.13, subdivision 4; 126C.17, subdivisions 1, 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
1.8 Subdivision 1. General education revenue. The general education revenue for
1.9each district equals the sum of the district's basic revenue, extended time revenue, gifted
1.10and talented revenue, small schools revenue, basic skills revenue, training and experience
1.11revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
1.12revenue, total operating capital revenue, education advancement revenue, equity revenue,
1.13alternative teacher compensation revenue, and transition revenue.
1.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
1.15and later.
1.16 Sec. 2. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
1.17to read:
1.18 Subd. 37. Education advancement revenue. The education advancement revenue
1.19for each district equals the advancement allowance times the resident marginal cost
1.20pupil units for the school year. The advancement allowance for fiscal year 2015 and
1.21later years is $300.
1.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
1.23and later.
2.1 Sec. 3. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.2to read:
2.3 Subd. 38. Education advancement rate. The commissioner must establish the
2.4education advancement rate by July 1 of each year for levies payable in the following year.
2.5The education advancement tax capacity rate must be a rate rounded up to the nearest
2.6hundredth of a percent that, when applied to the adjusted net tax capacity for all districts,
2.7raises the amounts specified in this subdivision. The education advancement rate must
2.8be the rate that raises $100,000,000 for fiscal year 2015 and later years. The education
2.9advancement rate may not be changed due to changes or corrections made to a district's
2.10adjusted net tax capacity after the tax rate has been established. A school district may
2.11adopt a resolution to reduce its levy below the amount calculated in this subdivision.
2.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.13and later.
2.14 Sec. 4. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.15to read:
2.16 Subd. 39. Education advancement levy. (a) To obtain education advancement
2.17revenue, a district may levy an amount not to exceed the education advancement rate
2.18times the adjusted net tax capacity of the district for the preceding year. If the amount
2.19of the education advancement levy would exceed the education advancement revenue,
2.20the education advancement levy must be determined according to paragraph (b). If a
2.21district adopts a board resolution to reduce its education advancement levy according to
2.22subdivision 38, the district's education advancement aid shall be reduced proportionately.
2.23(b) If the amount of the education advancement levy for a district exceeds the
2.24district's education advancement revenue, the amount of the education advancement levy
2.25must be limited to the district's education advancement revenue.
2.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.27and later.
2.28 Sec. 5. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.29to read:
2.30 Subd. 40. Education advancement aid. For fiscal year 2015 and later, a school
2.31district's education advancement aid is the product of: (1) the difference between the
2.32district's education advancement revenue and the education advancement levy; times (2)
2.33the ratio of the actual amount levied to the permitted levy.
3.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.2and later.
3.3 Sec. 6. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
3.4 Subd. 4. General education aid. (a) For fiscal years
3.5district's general education aid is the sum of the following amounts:
3.6 (1) general education revenue, excluding equity revenue, total operating capital
3.7revenue, alternative teacher compensation revenue, and transition revenue;
3.8 (2) operating capital aid under section
3.9 (3) equity aid under section
3.10 (4) alternative teacher compensation aid under section
3.11 (5) transition aid under section
3.12 (6) shared time aid under section
3.13 (7) referendum aid under section
3.14 (8) online learning aid according to section
3.15(b) For fiscal year 2015 and later, a district's general education aid is the sum of
3.16the following amounts:
3.17(1) general education revenue, excluding equity revenue, total operating capital
3.18revenue, alternative teacher compensation revenue, education advancement revenue, and
3.19transition revenue;
3.20(2) operating capital aid under section 126C.10, subdivision 13b;
3.21(3) equity aid under section 126C.10, subdivision 30;
3.22(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
3.23(5) education advancement aid under section 126C.10, subdivision 41;
3.24(6) transition aid under section 126C.10, subdivision 33;
3.25(7) shared time aid under section 126C.01, subdivision 7;
3.26(8) referendum aid under section 126C.17, subdivisions 7 and 7a; and
3.27(9) online learning aid according to section 124D.096.
3.28 Sec. 7. Minnesota Statutes 2012, section 126C.17, subdivision 1, is amended to read:
3.29 Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
3.30initial referendum revenue allowance equals the sum of the allowance under section
3.32unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
3.33plus the referendum conversion allowance approved under subdivision 13, minus $415.
3.34For districts with more than one referendum authority, the reduction must be computed
4.1separately for each authority. The reduction must be applied first to the referendum
4.2conversion allowance and next to the authority with the earliest expiration date. A
4.3district's initial referendum revenue allowance may not be less than zero.
4.4
4.5
4.6
4.7
4.8
4.9revenue allowance equals the sum of:
4.10(1) the product of (i) the ratio of the resident marginal cost pupil units the district
4.11would have counted for fiscal year 2004 under Minnesota Statutes 2002, section
4.12to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
4.13referendum allowance plus any additional allowance per resident marginal cost pupil unit
4.14authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
4.15year 2003 and later, plus
4.16(2) any additional allowance per resident marginal cost pupil unit authorized under
4.17subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
4.18(c) For fiscal year 2015 and later, a district's referendum revenue allowance equals
4.19the total of:
4.20(1) the product of (i) the ratio of the resident marginal cost pupil units the district
4.21would have counted for fiscal year 2004 under Minnesota Statutes 2002, section
4.22to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
4.23referendum allowance plus any additional allowance per resident marginal cost pupil unit
4.24authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
4.25year 2003 and later, plus
4.26(2) any additional allowance per resident marginal cost pupil unit authorized under
4.27subdivision 9 after May 30, 2003, for fiscal year 2005 and later, minus
4.28(3) $300.
4.29A district's referendum revenue allowance may not be less than zero.
4.30 Sec. 8. Minnesota Statutes 2012, section 126C.17, subdivision 2, is amended to read:
4.31 Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for
4.32fiscal
4.33not exceed the greater of:
5.1(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
5.2times the annual inflationary increase as calculated under paragraph
5.3referendum conversion allowance for fiscal year 2003, minus (iii) $215;
5.4(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
5.5annual inflationary increase as calculated under paragraph
5.6(3) for a newly reorganized district created after July 1, 2006, the referendum
5.7revenue authority for each reorganizing district in the year preceding reorganization
5.8divided by its resident marginal cost pupil units for the year preceding reorganization.
5.9(b) Notwithstanding subdivision 1, for fiscal year 2015 and later, a district's
5.10referendum allowance must not exceed the greater of:
5.11(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times
5.121.177 times the annual inflationary increase as calculated under paragraph (c) plus (ii) its
5.13referendum conversion allowance for fiscal year 2003, minus (iii) $515;
5.14(2) the greater of: (i) 20.26 percent of the formula allowance or (ii) $1,294 times the
5.15annual inflationary increase as calculated under paragraph (c); or
5.16(3) for a newly reorganized district created after July 1, 2006, the referendum
5.17revenue authority for each reorganizing district in the year preceding reorganization
5.18divided by its resident marginal cost pupil units for the year preceding reorganization.
5.19
5.20increase" means one plus the percentage change in the Consumer Price Index for
5.21urban consumers, as prepared by the United States Bureau of Labor Standards, for the
5.22current fiscal year to fiscal year 2004. For fiscal years 2009 and later, for purposes of
5.23paragraph (a), clause (1), and paragraph (b), clause (1), the inflationary increase equals the
5.24inflationary increase for fiscal year 2008 plus one-fourth of the percentage increase in the
5.25formula allowance for that year compared with the formula allowance for fiscal year 2008.
5.26 Sec. 9. DIRECTION TO THE COMMISSIONER.
5.27In computing the reduction to a school district's referendum allowance, the
5.28commissioner of education must first reduce a district's referendum allowance with the
5.29earliest expiration date and then, if necessary, reduce to additional referendum authority
5.30allowances based on the next earliest expiration date.
5.31 Sec. 10. OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.
5.32Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school
5.33district may not authorize an increase to its operating revenue in fiscal year 2015. A school
5.34district may reauthorize an operating referendum that is expiring in fiscal year 2015. If a
6.1school district asks the voters to reauthorize operating referendum authority that is expiring
6.2in fiscal year 2015, it may request a reauthorization of that expiring authority minus $300.
