1.1                          A bill for an act 
  1.2             relating to education; providing for regional 
  1.3             equalization aid; appropriating money; amending 
  1.4             Minnesota Statutes 1996, section 124A.73; proposing 
  1.5             coding for new law in Minnesota Statutes, chapter 124A.
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 124A.73, is 
  1.8   amended to read: 
  1.9      124A.73 [EDUCATION TRUST FUND.] 
  1.10     Subdivision 1.  [CREATION.] The commissioner shall deposit 
  1.11  to the credit of the education trust fund all money available to 
  1.12  the credit of the trust.  The commissioner shall maintain the 
  1.13  trust as a separate fund to be used only to pay money as 
  1.14  provided by law to school districts or to repay advances made 
  1.15  from the general fund, as provided under subdivision 4. 
  1.16     Subd. 1a.  [TRUST FUND RESOURCE USE.] Each year, the 
  1.17  commissioner of finance shall determine the investment earnings 
  1.18  from the balance in the trust fund.  This income shall be 
  1.19  annually transferred to the general fund for the purposes of 
  1.20  section 124A.78.  By May 15 of each year, the commissioner of 
  1.21  children, families, and learning shall determine the aid 
  1.22  available based on the income from the trust fund.  The 
  1.23  commissioner may establish dates and requirements for 
  1.24  information from districts to accurately determine the 
  1.25  adjustment. 
  2.1      Subd. 2.  [APPROPRIATION.] The money to be paid by law from 
  2.2   the education trust fund is appropriated annually. 
  2.3      Subd. 3.  [ESTIMATES; REDUCTION OF PAYMENTS.] (a) At the 
  2.4   beginning of each fiscal year, the commissioner, in consultation 
  2.5   with the commissioner of revenue, shall estimate for the fiscal 
  2.6   year: 
  2.7      (1) the amount of revenues to be deposited in the trust 
  2.8   fund and other law; and 
  2.9      (2) the payments authorized by law to be made out of the 
  2.10  trust. 
  2.11     (b) If the estimated payments exceed the estimated receipts 
  2.12  of the trust fund, the appropriations from the trust to each 
  2.13  program are proportionately reduced, unless otherwise provided 
  2.14  by law. 
  2.15     Subd. 4.  [GENERAL FUND ADVANCE.] If the money in the trust 
  2.16  fund is insufficient to make payments on the dates provided by 
  2.17  law, but the commissioner estimates receipts for the fiscal year 
  2.18  will be sufficient, the commissioner shall advance money from 
  2.19  the general fund to the trust fund necessary to make the 
  2.20  payments.  On or before the close of the biennium, the trust 
  2.21  shall repay the advances with interest, calculated at the rate 
  2.22  of earnings on invested treasurer's cash, to the general fund. 
  2.23     Sec. 2.  [124A.78] [REGIONAL EQUALIZATION AID.] 
  2.24     Subdivision 1.  [REGIONAL AID.] A district is eligible to 
  2.25  receive regional equalization aid according to this section. 
  2.26     Subd. 2.  [AID AMOUNT.] The commissioner shall determine 
  2.27  the average per pupil amount for each district and each region.  
  2.28  The amount shall be computed as the sum of basic revenue, 
  2.29  referendum revenue, supplemental revenue, and transition revenue 
  2.30  divided by the number of pupil units.  A district's regional 
  2.31  equalization aid allowance is the difference between the 
  2.32  regional average and the district per pupil amount.  The 
  2.33  allowance may not be less than zero.  Regional equalization aid 
  2.34  is equal to the allowance times the number of pupil units. 
  2.35     Subd. 3.  [REGIONAL DEFINITION.] (a) Except as provided in 
  2.36  paragraph (b), a district's region shall be the economic 
  3.1   development region defined in chapter 462 in which the 
  3.2   district's administrative offices are located.  
  3.3      (b) School districts located outside of economic 
  3.4   development region number 11 with average daily membership in 
  3.5   excess of 2,500 shall be considered as a separate region for the 
  3.6   determination of aid under this section. 
  3.7      Subd. 4.  [PRORATION.] Aid under this section shall be 
  3.8   funded with available resources under section 124A.73.  If the 
  3.9   amount available is insufficient to fully fund the amount 
  3.10  determined in subdivision 2, the commissioner shall prorate the 
  3.11  aid to eligible districts. 
  3.12     Sec. 3.  [APPROPRIATION.] 
  3.13     $300,000,000 is appropriated in fiscal year 1998 from the 
  3.14  general fund for transfer to the education trust fund under 
  3.15  Minnesota Statutes, section 124A.73.