1.1                          A bill for an act 
  1.2             relating to education; eliminating levy recognition 
  1.3             for fiscal year 1997 and thereafter; appropriating 
  1.4             money; amending Minnesota Statutes 1996, section 
  1.5             121.904, subdivision 4a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 121.904, 
  1.8   subdivision 4a, is amended to read: 
  1.9      Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  1.10  settlement revenue" means the current, delinquent, and 
  1.11  manufactured home property tax receipts collected by the county 
  1.12  and distributed to the school district, including distributions 
  1.13  made pursuant to section 279.37, subdivision 7, and excluding 
  1.14  the amount levied pursuant to section 124.914, subdivision 1. 
  1.15     (b) In June of each year, the school district shall 
  1.16  recognize as revenue, in the fund for which the levy was made, 
  1.17  the lesser of:  
  1.18     (1) the May, June, and July school district tax settlement 
  1.19  revenue received in that calendar year; or 
  1.20     (2) the sum of the state aids and credits enumerated in 
  1.21  section 124.155, subdivision 2, which are for the fiscal year 
  1.22  payable in that fiscal year plus an amount equal to the levy 
  1.23  recognized as revenue in June of the prior year plus 31 percent 
  1.24  for fiscal year 1996 and thereafter of the amount of the levy 
  1.25  certified in the prior calendar year according to section 
  2.1   124A.03, subdivision 2, plus or minus auditor's adjustments, not 
  2.2   including levy portions that are assumed by the state; or 
  2.3      (3) 18.1 percent for fiscal year 1996, the zero percent 
  2.4   determined under Laws 1996, chapter 461, section 3, for fiscal 
  2.5   year 1997 and that same percent thereafter of the amount of the 
  2.6   levy certified in the prior calendar year, plus or minus 
  2.7   auditor's adjustments, not including levy portions that are 
  2.8   assumed by the state, which remains after subtracting, by fund, 
  2.9   the amounts levied for the following purposes:  
  2.10     (i) reducing or eliminating projected deficits in the 
  2.11  reserved fund balance accounts for unemployment insurance and 
  2.12  bus purchases; 
  2.13     (ii) statutory operating debt pursuant to section 124.914, 
  2.14  subdivision 1; 
  2.15     (iii) retirement and severance pay pursuant to sections 
  2.16  122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  2.17  124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  2.18  1975, chapter 261, section 4; 
  2.19     (iv) amounts levied for bonds issued and interest thereon, 
  2.20  amounts levied for debt service loans and capital loans, amounts 
  2.21  levied for down payments under section 124.82, subdivision 3; 
  2.22  and 
  2.23     (v) amounts levied under section 124.755.  
  2.24     Notwithstanding the foregoing, the levy recognition 
  2.25  percentage for the referendum levy certified according to 
  2.26  section 124A.03, subdivision 2, is 31 percent. 
  2.27     (c) In July of each year, the school district shall 
  2.28  recognize as revenue that portion of the school district tax 
  2.29  settlement revenue received in that calendar year and not 
  2.30  recognized as revenue for the previous fiscal year pursuant to 
  2.31  clause (b).  
  2.32     (d) All other school district tax settlement revenue shall 
  2.33  be recognized as revenue in the fiscal year of the settlement. 
  2.34  Portions of the school district levy assumed by the state, 
  2.35  including prior year adjustments and the amount to fund the 
  2.36  school portion of the reimbursement made pursuant to section 
  3.1   273.425, shall be recognized as revenue in the fiscal year 
  3.2   beginning in the calendar year for which the levy is payable. 
  3.3      Sec. 2.  [APPROPRIATION.] 
  3.4      $117,000,000 is appropriated from the general fund for 
  3.5   fiscal year 1997 to the commissioner of children, families, and 
  3.6   learning for the purposes of section 1. 
  3.7      Sec. 3.  [EFFECTIVE DATE.] 
  3.8      Sections 1 and 2 are effective the day following final 
  3.9   enactment.