1.1                          A bill for an act 
  1.2             relating to education; creating a sparsity revenue 
  1.3             formula for capital facilities and equipment revenue; 
  1.4             allowing levy for special assessments; amending 
  1.5             Minnesota Statutes 1994, sections 124.243, subdivision 
  1.6             2; 124.244, subdivision 1; and 124.912, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 124.243, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a) For 
  1.11  fiscal years 1994 and 1995, capital expenditure facilities 
  1.12  revenue for a district equals $128 times its actual pupil units 
  1.13  for the school year. 
  1.14     (b) For fiscal years 1996 and later, capital expenditure 
  1.15  facilities revenue for a district equals $100 times the 
  1.16  district's maintenance cost index times its actual pupil units 
  1.17  for the school year. 
  1.18     (c) A district's capital expenditure facilities revenue for 
  1.19  a school year shall be reduced if the unreserved balance in the 
  1.20  capital expenditure facilities account on June 30 of the prior 
  1.21  school year exceeds $675 times the fund balance pupil units in 
  1.22  the prior year as defined in section 124A.26, subdivision 1.  If 
  1.23  a district's capital expenditure facilities revenue is reduced, 
  1.24  the reduction equals the lesser of (1) the amount that the 
  1.25  unreserved balance in the capital expenditure facilities account 
  1.26  on June 30 of the prior year exceeds $675 times the fund balance 
  2.1   pupil units in the prior year, or (2) the capital expenditure 
  2.2   facilities revenue for that year. 
  2.3      (d) For 1996 and later fiscal years, the previous formula 
  2.4   revenue equals the amount of revenue computed for the district 
  2.5   according to section 124.243 for fiscal year 1995. 
  2.6      (e) Notwithstanding paragraph (b), for fiscal year 1996, 
  2.7   the revenue for each district equals 25 percent of the amount 
  2.8   determined in paragraph (b) plus 75 percent of the previous 
  2.9   formula revenue. 
  2.10     (f) Notwithstanding paragraph (b), for fiscal year 1997, 
  2.11  the revenue for each district equals 50 percent of the amount 
  2.12  determined in paragraph (b) plus 50 percent of the previous 
  2.13  formula revenue. 
  2.14     (g) Notwithstanding paragraph (b), for fiscal year 1998, 
  2.15  the revenue for each district equals 75 percent of the amount 
  2.16  determined in paragraph (b) plus 25 percent of the previous 
  2.17  formula revenue. 
  2.18     (h) The revenue in paragraph (b) for a district that 
  2.19  operates a program under section 121.585, is increased by an 
  2.20  amount equal to $15 times the number of actual pupil units at 
  2.21  the site where the program is implemented. 
  2.22     (i) Beginning in fiscal year 1997, the revenue in paragraph 
  2.23  (b) is increased by an amount equal to: 
  2.24     (1) $100, multiplied by 
  2.25     (2) the secondary average daily membership of the high 
  2.26  school, multiplied by 
  2.27     (3) the quotient obtained by dividing 400 minus the 
  2.28  secondary average daily membership by 400 plus the secondary 
  2.29  daily membership, multiplied by 
  2.30     (4) the lesser of 1.5 or the quotient obtained by dividing 
  2.31  the isolation index determined according to section 124A.22 
  2.32  minus 23 by ten. 
  2.33     Sec. 2.  Minnesota Statutes 1994, section 124.244, 
  2.34  subdivision 1, is amended to read: 
  2.35     Subdivision 1.  [REVENUE AMOUNT.] (a) For fiscal year 1995, 
  2.36  the capital expenditure equipment revenue for each district 
  3.1   equals $66 times its actual pupil units for the school year. 
  3.2      (b) For fiscal years 1996 and later, the capital 
  3.3   expenditure equipment revenue for each district equals $69 times 
  3.4   its actual pupil units for the school year.  
  3.5      (c) Of a district's capital expenditure equipment revenue, 
  3.6   $3 times its actual pupil units for the school year shall be 
  3.7   reserved and used according to subdivision 4, paragraph (b). 
  3.8      (d) Beginning in fiscal year 1997, the revenue in paragraph 
  3.9   (b) is increased by an amount equal to: 
  3.10     (1) $69, multiplied by 
  3.11     (2) the secondary average daily membership of the high 
  3.12  school, multiplied by 
  3.13     (3) the quotient obtained by dividing 400 minus the 
  3.14  secondary average daily membership by 400 plus the secondary 
  3.15  daily membership, multiplied by 
  3.16     (4) the lesser of 1.5 or the quotient obtained by dividing 
  3.17  the isolation index determined according to section 124A.22 
  3.18  minus 23 by ten. 
  3.19     Sec. 3.  Minnesota Statutes 1994, section 124.912, 
  3.20  subdivision 1, is amended to read: 
  3.21     Subdivision 1.  [STATUTORY OBLIGATIONS.] (a) A school 
  3.22  district may levy the amounts necessary to pay the district's 
  3.23  obligations under section 6.62; the amount authorized for 
  3.24  liabilities of dissolved districts pursuant to section 122.45; 
  3.25  the amounts necessary to pay the district's obligations under 
  3.26  section 268.06, subdivision 25; the amounts necessary to pay for 
  3.27  job placement services offered to employees who may become 
  3.28  eligible for benefits pursuant to section 268.08; the amounts 
  3.29  necessary to pay the district's obligations under section 
  3.30  127.05; the amounts authorized by section 122.531; the amounts 
  3.31  necessary to pay the district's obligations under section 
  3.32  122.533; the amounts necessary to pay for special assessments 
  3.33  according to section 435.19; and for severance pay required by 
  3.34  sections 120.08, subdivision 3, and 122.535, subdivision 6. 
  3.35     (b) An education district that negotiates a collective 
  3.36  bargaining agreement for teachers under section 122.937 may 
  4.1   certify to the department of education the amount necessary to 
  4.2   pay all of the member districts' obligations and the education 
  4.3   district's obligations under section 268.06, subdivision 25. 
  4.4      The department of education must allocate the levy amount 
  4.5   proportionately among the member districts based on adjusted net 
  4.6   tax capacity.  The member districts must levy the amount 
  4.7   allocated. 
  4.8      (c) Each year, a member district of an education district 
  4.9   that levies under this subdivision must transfer the amount of 
  4.10  revenue certified under paragraph (b) to the education district 
  4.11  board according to this subdivision.  By June 20 and November 30 
  4.12  of each year, an amount must be transferred equal to: 
  4.13     (1) 50 percent times 
  4.14     (2) the amount certified in paragraph (b) minus homestead 
  4.15  and agricultural credit aid allocated for that levy according to 
  4.16  section 273.1398, subdivision 6.