1.1 	A bill for an act
1.2 	relating to education; modifying and repealing certain education funding 
1.3 	provisions;amending Minnesota Statutes 2006, sections 126C.10, subdivisions 
1.4 	1, 13a, 13b, 29, 30, 32, 33, 34, 35, 36, by adding subdivisions; 126C.13, 
1.5 	subdivision 4, by adding subdivisions; repealing Minnesota Statutes 2006, 
1.6 	section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33, 35, 36.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:
1.9 		Subdivision 1.General education revenue. For fiscal year 2006 and later, 
1.10 	the general education revenue for each district equals the sum of the district's basic 
1.11 	revenue, extended time revenue, gifted and talented revenue, basic skills revenue, training 
1.12 	and experience revenue, secondary sparsity revenue, elementary sparsity revenue, 
1.13 	transportation sparsity revenue, total operating capital revenue, equity revenue, alternative 
1.14 	teacher compensation revenue under section 122A.415, and transition revenue.

1.15 	Sec. 2. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:
1.16 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
1.17 	yearyears 2007 and later 2008, a district may levy an amount not more than the product 
1.18 	of its operating capital revenue for the fiscal year times the lesser of one or the ratio of 
1.19 	its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
1.20 	equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 
1.21 	2006, and $10,700 for fiscal yearyears 2007 and later 2008.

1.22 	Sec. 3. Minnesota Statutes 2006, section 126C.10, subdivision 13b, is amended to read:
2.1 		Subd. 13b.Operating capital aid. For fiscal years 2007 and 2008, a district's 
2.2 	operating capital aid equals its operating capital revenue minus its operating capital levy 
2.3 	times the ratio of the actual amount levied to the permitted levy.

2.4 	Sec. 4. Minnesota Statutes 2006, section 126C.10, subdivision 29, is amended to read:
2.5 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 years 2007 and 
2.6 	later 2008, a district may levy an amount not more than the product of its equity revenue 
2.7 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
2.8 	resident marginal cost pupil unit to $476,000.

2.9 	Sec. 5. Minnesota Statutes 2006, section 126C.10, subdivision 30, is amended to read:
2.10 		Subd. 30.Equity aid. For fiscal years 2007 and 2008, a district's equity aid equals 
2.11 	its equity revenue minus its equity levy times the ratio of the actual amount levied to 
2.12 	the permitted levy.

2.13 	Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 32, is amended to read:
2.14 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005years 
2.15 	2007 and later 2008, a district may levy an amount not more than the product of its 
2.16 	transition revenue for the fiscal year times the lesser of one or the ratio of its referendum 
2.17 	market value per resident marginal cost pupil unit to $476,000.

2.18 	Sec. 7. Minnesota Statutes 2006, section 126C.10, subdivision 33, is amended to read:
2.19 		Subd. 33.Transition aid. (a) For fiscal year 2004, a district's transition aid equals 
2.20 	its transition revenue.
2.21 	(b) For fiscal year 2005 years 2007 and later 2008, a district's transition aid equals its 
2.22 	transition revenue minus its transition levy times the ratio of the actual amount levied to 
2.23 	the permitted levy.

2.24 	Sec. 8. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:
2.25 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal year 2006, 
2.26 	the basic alternative teacher compensation aid for a school district or an intermediate 
2.27 	school district with a plan approved under section 122A.414, subdivision 2b, equals the 
2.28 	alternative teacher compensation revenue under section 122A.415, subdivision 1. The 
2.29 	basic alternative teacher compensation aid for a charter school with an approved plan 
2.30 	under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 
3.1 	in the school on October 1 of the previous school year, or on October 1 of the current 
3.2 	fiscal year for a charter school in the first year of operation.
3.3 	(b) For fiscal year 2007 and later, the basic alternative teacher compensation aid for 
3.4 	a school district with a plan approved under section 122A.414, subdivision 2b, equals 
3.5 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
3.6 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
3.7 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
3.8 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
3.9 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
3.10 	year for a charter school in the first year of operation, times the ratio of the sum of the 
3.11 	alternative teacher compensation aid and alternative teacher compensation levy for all 
3.12 	participating school districts to the maximum alternative teacher compensation revenue 
3.13 	for those districts under section 122A.415, subdivision 1.
3.14 	(c) (b) Notwithstanding paragraphsparagraph (a) and (b) and section 122A.415, 
3.15 	subdivision 1, the state total basic alternative teacher compensation aid entitlement 
3.16 	must not exceed $19,329,000 for fiscal year 2006 and $75,636,000 for fiscal yearyears 
3.17 	2007 and later 2008. The commissioner must limit the amount of alternative teacher 
3.18 	compensation aid approved under section 122A.415 so as not to exceed these limits.
3.19 	(c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, 
3.20 	the state total basic alternative teacher compensation aid entitlement must not exceed 
3.21 	$99,135,000 for fiscal year 2009, $100,093,000 for fiscal year 2010, and $99,656,000 for 
3.22 	fiscal year 2011 and later. The commissioner must limit the amount of alternative teacher 
3.23 	compensation aid approved under section 122A.415 so as not to exceed these limits.

3.24 	Sec. 9. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:
3.25 		Subd. 35.Alternative teacher compensation levy. For fiscal year years 2007 
3.26 	and later 2008, the alternative teacher compensation levy for a district receiving basic 
3.27 	alternative teacher compensation aid equals the product of (1) the difference between the 
3.28 	district's alternative teacher compensation revenue and the district's basic alternative 
3.29 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
3.30 	net tax capacity per adjusted pupil unit to $5,913.

3.31 	Sec. 10. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:
3.32 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal year years 2007 
3.33 	and later 2008, a district's alternative teacher compensation equalization aid equals the 
3.34 	district's alternative teacher compensation revenue minus the district's basic alternative 
4.1 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
4.2 	district does not levy the entire amount permitted, the alternative teacher compensation 
4.3 	equalization aid must be reduced in proportion to the actual amount levied.
4.4 	(b) A district's alternative teacher compensation aid equals the sum of the 
4.5 	district's basic alternative teacher compensation aid and the district's alternative teacher 
4.6 	compensation equalization aid.

4.7 	Sec. 11. Minnesota Statutes 2006, section 126C.10, is amended by adding a subdivision 
4.8 	to read:
4.9 		Subd. 37.Secondary alternative teacher compensation aid. Any school district 
4.10 	that levied under subdivision 35 for alternative compensation revenue in taxes payable in 
4.11 	2007 is eligible for secondary alternative teacher compensation aid. For fiscal year 2009 
4.12 	and later, an eligible school district's secondary alternative teacher compensation aid 
4.13 	equals the district's alternative teacher compensation revenue minus the district's basic 
4.14 	alternative teacher compensation aid. If an eligible district did not levy the entire amount 
4.15 	permitted in taxes payable in 2007 under subdivision 35, the secondary alternative teacher 
4.16 	compensation aid must not exceed the amount per pupil that the district levied in that year. 

4.17 	Sec. 12. Minnesota Statutes 2006, section 126C.10, is amended by adding a 
4.18 	subdivision to read:
4.19 		Subd. 38.Alternative teacher compensation revenue. A district's alternative 
4.20 	teacher compensation revenue equals the sum of the district's basic alternative teacher 
4.21 	compensation aid and the district's secondary alternative teacher compensation aid.

4.22 	Sec. 13. Minnesota Statutes 2006, section 126C.13, is amended by adding a 
4.23 	subdivision to read:
4.24 		Subd. 3a.Consolidated tax rate. The commissioner must establish the consolidated 
4.25 	tax rate by July 1 of each year for levies payable in the following year. The consolidated 
4.26 	tax capacity rate must be a rate, rounded up to the nearest hundredth of a percent, that, 
4.27 	when applied to the adjusted net tax capacity for all districts, raises the amount specified 
4.28 	in this subdivision. The consolidated tax rate must be the rate that raises $244,937,000 for 
4.29 	fiscal year 2009, $262,293,000 for fiscal year 2010, and $277,324,000 for fiscal year 2011 
4.30 	and later years. The consolidated tax rate may not be changed due to changes or corrections 
4.31 	made to a district's adjusted net tax capacity after the tax rate has been established. 

5.1 	Sec. 14. Minnesota Statutes 2006, section 126C.13, is amended by adding a 
5.2 	subdivision to read:
5.3 		Subd. 3b.Consolidated levy. To obtain general education revenue, a district may 
5.4 	levy an amount not to exceed the consolidated tax rate times the adjusted net tax capacity 
5.5 	of the district for the preceding year. If the amount of the consolidated levy would exceed 
5.6 	the general education revenue, the consolidated levy must be determined according 
5.7 	to subdivision 3c.

5.8 	Sec. 15. Minnesota Statutes 2006, section 126C.13, is amended by adding a 
5.9 	subdivision to read:
5.10 		Subd. 3c.Consolidated levy; districts off the formula. (a) If the amount of the 
5.11 	consolidated levy for a district exceeds the district's general education revenue, the amount 
5.12 	of the consolidated levy must be limited to the following:
5.13 	(1) the district's general education revenue; minus 
5.14 	(2) payments made for the same school year according to section 126C.21, 
5.15 	subdivision 3. 
5.16 	(b) A levy made according to this subdivision shall also be construed to be the levy 
5.17 	made according to subdivision 3b.

5.18 	Sec. 16. Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:
5.19 		Subd. 4.General education aid. (a) For fiscal year 2006, a district's general 
5.20 	education aid is the sum of the following amounts:
5.21 	(1) general education revenue, excluding equity revenue, total operating capital, and 
5.22 	transition revenue;
5.23 	(2) operating capital aid according to section 126C.10, subdivision 13b;
5.24 	(3) equity aid according to section 126C.10, subdivision 30;
5.25 	(4) transition aid according to section 126C.10, subdivision 33;
5.26 	(5) shared time aid according to section 126C.01, subdivision 7;
5.27 	(6) referendum aid according to section 126C.17; and
5.28 	(7) online learning aid according to section 124D.096.
5.29 	(b) For fiscal yearyears 2007 and later 2008, a district's general education aid is the 
5.30 	sum of the following amounts:
5.31 	(1) general education revenue, excluding equity revenue, total operating capital 
5.32 	revenue, alternative teacher compensation revenue, and transition revenue;
5.33 	(2) operating capital aid under section 126C.10, subdivision 13b;
5.34 	(3) equity aid under section 126C.10, subdivision 30;
6.1 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
6.2 	(5) transition aid under section 126C.10, subdivision 33;
6.3 	(6) shared time aid under section 126C.01, subdivision 7;
6.4 	(7) referendum aid under section 126C.17; and
6.5 	(8) online learning aid according to section 124D.096.
6.6 	(b) For fiscal year 2009 and later, a district's general education aid is the sum of 
6.7 	the following amounts:
6.8 	(1) the product of:
6.9 	(i) the difference between the general education revenue and the consolidated levy; 
6.10 	times
6.11 	(ii) the ratio of the actual amount levied to the permitted levy;
6.12 	(2) shared time aid according to section 126C.01, subdivision 7; 
6.13 	(3) referendum aid according to section 126C.17; and 
6.14 	(4) online learning aid according to section 124D.096.

6.15 	Sec. 17.  REPEALER.
 6.16 	Minnesota Statutes 2006, section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33, 
6.17 	35, and 36, are repealed for revenue for fiscal year 2009.