1.1                          A bill for an act
  1.2             relating to education; increasing the general formula 
  1.3             allowance, training and experience revenue, and 
  1.4             transportation revenue by inflationary amounts; 
  1.5             amending Minnesota Statutes 1994, sections 124.225, 
  1.6             subdivisions 3a, 7b, and 7d; and 124A.22, subdivisions 
  1.7             2 and 4. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 124.225, 
  1.10  subdivision 3a, is amended to read: 
  1.11     Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
  1.12  base cost equals the result of the following computation:  
  1.13     (a) Multiply the transportation formula allowance by the 
  1.14  district's sparsity index raised to the one-fourth power.  The 
  1.15  transportation formula allowance is $447 for the 1991-1992 base 
  1.16  year and $463 for the 1992-1993 base year.  The transportation 
  1.17  formula allowance is $486 for the 1993-1994 base year and $510 
  1.18  for the 1994-1995 base year. 
  1.19     (b) Multiply the result in paragraph (a) by the district's 
  1.20  density index raised to the 35/100 power.  
  1.21     (c) Multiply the result in paragraph (b) by the district's 
  1.22  contract transportation index raised to the 1/20 power.  
  1.23     Sec. 2.  Minnesota Statutes 1994, section 124.225, 
  1.24  subdivision 7b, is amended to read: 
  1.25     Subd. 7b.  [INFLATION FACTORS.] The adjusted predicted base 
  1.26  cost determined for a district under subdivision 7a for the base 
  2.1   year must be increased by 2.35 6.0 percent to determine the 
  2.2   district's regular transportation allowance for the 1993-1994 
  2.3   1995-1996 school year and by 3.425 6.0 percent to determine the 
  2.4   district's regular transportation allowance for the 1994-1995 
  2.5   1996-1997 school year, but the regular transportation allowance 
  2.6   for a district cannot be less than the district's minimum 
  2.7   regular transportation allowance according to Minnesota Statutes 
  2.8   1990, section 124.225, subdivision 1, paragraph (t). 
  2.9      Sec. 3.  Minnesota Statutes 1994, section 124.225, 
  2.10  subdivision 7d, is amended to read: 
  2.11     Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
  2.12  for each district equals the sum of the district's regular 
  2.13  transportation revenue and the district's nonregular 
  2.14  transportation revenue. 
  2.15     (a) The regular transportation revenue for each district 
  2.16  equals the district's regular transportation allowance according 
  2.17  to subdivision 7b times the sum of the number of FTE's by the 
  2.18  district in the regular, desegregation, and handicapped 
  2.19  categories in the current school year. 
  2.20     (b) For the 1992-1993 and later school years, the 
  2.21  nonregular transportation revenue for each district equals the 
  2.22  lesser of the district's actual cost in the current school year 
  2.23  for nonregular transportation services or the product of the 
  2.24  district's actual cost in the base year for nonregular 
  2.25  transportation services as defined for the current year in 
  2.26  subdivision 1, paragraph (c), times the ratio of the district's 
  2.27  average daily membership for the current year to the district's 
  2.28  average daily membership for the base year according to section 
  2.29  124.17, subdivision 2, times the nonregular transportation 
  2.30  inflation factor for the current year, minus the amount of 
  2.31  regular transportation revenue attributable to FTE's in the 
  2.32  desegregation and handicapped categories in the current school 
  2.33  year, plus the excess nonregular transportation revenue for the 
  2.34  current year according to subdivision 7e.  The nonregular 
  2.35  transportation inflation factor is 1.0435 1.06 for the 1993-1994 
  2.36  1995-1996 school year and 1.03425 1.06 for the 1994-1995 
  3.1   1996-1997 school year. 
  3.2      Sec. 4.  Minnesota Statutes 1994, section 124A.22, 
  3.3   subdivision 2, is amended to read: 
  3.4      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  3.5   district equals the formula allowance times the actual pupil 
  3.6   units for the school year.  The formula allowance for fiscal 
  3.7   years 1993 and 1994 is $3,050.  The formula allowance for fiscal 
  3.8   year 1995 is $3,150.  The formula allowance for fiscal year 1996 
  3.9   and subsequent fiscal years is $3,150 $3,245.  
  3.10     Sec. 5.  Minnesota Statutes 1994, section 124A.22, 
  3.11  subdivision 4, is amended to read: 
  3.12     Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] (a) The 
  3.13  previous formula training and experience revenue for each 
  3.14  district equals the greater of zero or the result of the 
  3.15  following computation:  
  3.16     (1) subtract 1.6 from the training and experience index; 
  3.17     (2) multiply the result in clause (1) by the product of 
  3.18  $700 times the actual pupil units for the school year. 
  3.19     (b) The maximum training and experience revenue for each 
  3.20  district equals the greater of zero or the result of the 
  3.21  following computation:  
  3.22     (1) subtract .8 from the training and experience index; 
  3.23     (2) multiply the result in clause (1) by the product of 
  3.24  $660 $700 times the actual pupil units for the school year.  
  3.25     (c) For fiscal year 1994, the training and experience 
  3.26  revenue for each district equals the district's previous formula 
  3.27  training and experience revenue plus one-half of the difference 
  3.28  between the district's maximum training and experience revenue 
  3.29  and the district's previous formula training and experience 
  3.30  revenue.  
  3.31     (d) For fiscal year 1995, the training and experience 
  3.32  revenue for each district equals the district's previous formula 
  3.33  training and experience revenue plus three-fourths of the 
  3.34  difference between the district's maximum training and 
  3.35  experience revenue and the district's previous formula training 
  3.36  and experience revenue. 
  4.1      (e) For fiscal year 1996 and thereafter, the training and 
  4.2   experience revenue for each district equals the district's 
  4.3   maximum training and experience revenue.  
  4.4      Sec. 6.  [EFFECTIVE DATE.] 
  4.5      Sections 1 to 5 are effective for revenue for 1995-1996 and 
  4.6   later school years.