Bill Text: MN SF177 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: School districts equalization aid levels increase for operating referendum and debt service equalization aid programs; education advancement revenue creation
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced - Dead) 2013-03-07 - Comm report: To pass as amended and re-refer to Finance [SF177 Detail]
Download: Minnesota-2013-SF177-Engrossed.html
1.2relating to education finance; increasing equalization aid levels for the operating
1.3referendum and debt service equalization aid programs; creating education
1.4advancement revenue; appropriating money;amending Minnesota Statutes 2012,
1.5sections 123B.53, subdivision 5; 126C.01, by adding subdivisions; 126C.10,
1.6subdivision 1, by adding subdivisions; 126C.13, subdivision 4; 126C.17,
1.7subdivisions 1, 2, 6.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 123B.53, subdivision 5, is amended to read:
1.10 Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
1.11district equals the sum of the first tier equalized debt service levy and the second tier
1.12equalized debt service levy.
1.13(b) A district's first tier equalized debt service levy equals the district's first tier debt
1.14service equalization revenue times the lesser of one or the ratio of:
1.15(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.16the year before the year the levy is certified by the adjusted pupil units in the district for
1.17the school year ending in the year prior to the year the levy is certified; to
1.18(2)$3,049 the product of $6,098 and the ratio of the current year adjusted net tax
1.19capacity equalizing factor to the adjusted net tax capacity equalizing factor as calculated
1.20for revenue in fiscal year 2015.
1.21(c) A district's second tier equalized debt service levy equals the district's second tier
1.22debt service equalization revenue times the lesser of one or the ratio of:
1.23(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.24the year before the year the levy is certified by the adjusted pupil units in the district for
1.25the school year ending in the year prior to the year the levy is certified; to
2.1(2)$7,622 the product of $7,622 and the ratio of the current year adjusted net tax
2.2capacity equalizing factor to the adjusted net tax capacity equalizing factor as calculated
2.3for revenue in fiscal year 2015.
2.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.5and later.
2.6 Sec. 2. Minnesota Statutes 2012, section 126C.01, is amended by adding a subdivision
2.7to read:
2.8 Subd. 2a. Adjusted net tax capacity equalizing factor. The adjusted net tax
2.9capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax
2.10capacity of all school districts in the state for the year before the year the levy is certified by
2.11the total number of adjusted marginal cost pupil units in the state for the current school year.
2.12EFFECTIVE DATE.This section is effective for taxes payable in 2014 and later.
2.13 Sec. 3. Minnesota Statutes 2012, section 126C.01, is amended by adding a subdivision
2.14to read:
2.15 Subd. 3a. Referendum market value equalizing factor. The referendum market
2.16value equalizing factor equals the quotient derived by dividing the total referendum market
2.17value of all school districts in the state for the year before the year the levy is certified by
2.18the total number of resident marginal cost pupil units in the state for the current school year.
2.19EFFECTIVE DATE.This section is effective for taxes payable in 2014 and later.
2.20 Sec. 4. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
2.21 Subdivision 1. General education revenue. The general education revenue for
2.22each district equals the sum of the district's basic revenue, extended time revenue, gifted
2.23and talented revenue, small schools revenue, basic skills revenue, training and experience
2.24revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
2.25revenue, total operating capital revenue, education advancement revenue, equity revenue,
2.26alternative teacher compensation revenue, and transition revenue.
2.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.28and later.
2.29 Sec. 5. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.30to read:
3.1 Subd. 37. Education advancement revenue. The education advancement revenue
3.2for each district equals the advancement allowance times the resident marginal cost
3.3pupil units for the school year. The advancement allowance for fiscal year 2015 and
3.4later years is $300.
3.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.6and later.
3.7 Sec. 6. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
3.8to read:
3.9 Subd. 39. Education advancement levy. To obtain education advancement revenue,
3.10a district may levy an amount not more than the product of its education advancement
3.11revenue for the fiscal year times the lesser of one or the ratio of its referendum market
3.12value per resident marginal cost pupil unit to the education advancement revenue
3.13equalizing factor. The education advancement revenue equalizing factor equals $868,513.
3.14If a district adopts a board resolution to levy less than the permitted levy, the district's
3.15education advancement aid shall be reduced proportionately.
3.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.17and later.
3.18 Sec. 7. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
3.19to read:
3.20 Subd. 40. Education advancement aid. For fiscal year 2015 and later, a school
3.21district's education advancement aid is the product of: (1) the difference between the
3.22district's education advancement revenue and the education advancement levy; times (2)
3.23the ratio of the actual amount levied to the permitted levy.
3.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.25and later.
3.26 Sec. 8. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
3.27 Subd. 4. General education aid. (a) For fiscal years2007 2013 and later 2014, a
3.28district's general education aid is the sum of the following amounts:
3.29 (1) general education revenue, excluding equity revenue, total operating capital
3.30revenue, alternative teacher compensation revenue, and transition revenue;
3.31 (2) operating capital aid under section126C.10, subdivision 13b ;
3.32 (3) equity aid under section126C.10, subdivision 30 ;
4.1 (4) alternative teacher compensation aid under section126C.10, subdivision 36 ;
4.2 (5) transition aid under section126C.10, subdivision 33 ;
4.3 (6) shared time aid under section126C.01, subdivision 7 ;
4.4 (7) referendum aid under section126C.17 , subdivisions 7 and 7a; and
4.5 (8) online learning aid according to section124D.096 .
4.6(b) For fiscal year 2015 and later, a district's general education aid is the sum of
4.7the following amounts:
4.8(1) general education revenue, excluding equity revenue, total operating capital
4.9revenue, alternative teacher compensation revenue, education advancement revenue, and
4.10transition revenue;
4.11(2) operating capital aid under section 126C.10, subdivision 13b;
4.12(3) equity aid under section 126C.10, subdivision 30;
4.13(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
4.14(5) education advancement aid under section 126C.10, subdivision 41;
4.15(6) transition aid under section 126C.10, subdivision 33;
4.16(7) shared time aid under section 126C.01, subdivision 7;
4.17(8) referendum aid under section 126C.17, subdivisions 7 and 7a; and
4.18(9) online learning aid according to section 124D.096.
4.19 Sec. 9. Minnesota Statutes 2012, section 126C.17, subdivision 1, is amended to read:
4.20 Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
4.21initial referendum revenue allowance equals the sum of the allowance under section
4.22126C.16, subdivision 2
, plus any additional allowance per resident marginal cost pupil
4.23unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
4.24plus the referendum conversion allowance approved under subdivision 13, minus $415.
4.25For districts with more than one referendum authority, the reduction must be computed
4.26separately for each authority. The reduction must be applied first to the referendum
4.27conversion allowance and next to the authority with the earliest expiration date. A
4.28district's initial referendum revenue allowance may not be less than zero.
4.29(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
4.30referendum allowance plus any additional allowance per resident marginal cost pupil unit
4.31authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
4.32fiscal year 2003 and later.
4.33(c) (b) For fiscal year 2004 and later years 2013 and 2014, a district's referendum
4.34revenue allowance equals the sum of:
5.1(1) the product of (i) the ratio of the resident marginal cost pupil units the district
5.2would have counted for fiscal year 2004 under Minnesota Statutes 2002, section126C.05 ,
5.3to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
5.4referendum allowance plus any additional allowance per resident marginal cost pupil unit
5.5authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
5.6year 2003 and later, plus
5.7(2) any additional allowance per resident marginal cost pupil unit authorized under
5.8subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
5.9(c) For fiscal year 2015 and later, a district's referendum revenue allowance equals
5.10the total of:
5.11(1) the product of (i) the ratio of the resident marginal cost pupil units the district
5.12would have counted for fiscal year 2004 under Minnesota Statutes 2002, section126C.05 ,
5.13to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
5.14referendum allowance plus any additional allowance per resident marginal cost pupil unit
5.15authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
5.16year 2003 and later, plus
5.17(2) any additional allowance per resident marginal cost pupil unit authorized under
5.18subdivision 9 after May 30, 2003, for fiscal year 2005 and later, minus
5.19(3) $300.
5.20A district's referendum revenue allowance may not be less than zero.
5.21 Sec. 10. Minnesota Statutes 2012, section 126C.17, subdivision 2, is amended to read:
5.22 Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for
5.23fiscalyear 2007 and later years 2013 and 2014, a district's referendum allowance must
5.24not exceed the greater of:
5.25(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
5.26times the annual inflationary increase as calculated under paragraph(b) (c) plus (ii) its
5.27referendum conversion allowance for fiscal year 2003, minus (iii) $215;
5.28(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
5.29annual inflationary increase as calculated under paragraph(b) (c); or
5.30(3) for a newly reorganized district created after July 1, 2006, the referendum
5.31revenue authority for each reorganizing district in the year preceding reorganization
5.32divided by its resident marginal cost pupil units for the year preceding reorganization.
5.33(b) Notwithstanding subdivision 1, for fiscal year 2015 and later, a district's
5.34referendum allowance must not exceed the greater of:
6.1(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times
6.21.177 times the annual inflationary increase as calculated under paragraph (c) plus (ii) its
6.3referendum conversion allowance for fiscal year 2003, minus (iii) $515;
6.4(2) the greater of: (i) 26 percent of the formula allowance minus $300 or (ii) $1,294
6.5times the annual inflationary increase as calculated under paragraph (c), minus $300; or
6.6(3) for a newly reorganized district created after July 1, 2006, the referendum
6.7revenue authority for each reorganizing district in the year preceding reorganization
6.8divided by its resident marginal cost pupil units for the year preceding reorganization.
6.9(b) (c) For purposes of this subdivision, for fiscal year 2005 and later, "inflationary
6.10increase" means one plus the percentage change in the Consumer Price Index for
6.11urban consumers, as prepared by the United States Bureau of Labor Standards, for the
6.12current fiscal year to fiscal year 2004. For fiscal years 2009 and later, for purposes of
6.13paragraph (a), clause (1), and paragraph (b), clause (1), the inflationary increase equals the
6.14inflationary increase for fiscal year 2008 plus one-fourth of the percentage increase in the
6.15formula allowance for that year compared with the formula allowance for fiscal year 2008.
6.16 Sec. 11. Minnesota Statutes 2012, section 126C.17, subdivision 6, is amended to read:
6.17 Subd. 6. Referendum equalization levy. (a)For fiscal year 2003 and later,
6.18 A district's referendum equalization levy equals the sum of the first tier referendum
6.19equalization levy and the second tier referendum equalization levy.
6.20(b) A district's first tier referendum equalization levy equals the district's first tier
6.21referendum equalization revenue times the lesser of one or the ratio of the district's
6.22referendum market value per resident marginal cost pupil unit to$476,000 the product of
6.23$952,000 and the ratio of the current year referendum market value equalizing factor to the
6.24referendum market value equalizing factor as calculated for revenue in fiscal year 2015.
6.25(c) A district's second tier referendum equalization levy equals the district's second
6.26tier referendum equalization revenue times the lesser of one or the ratio of the district's
6.27referendum market value per resident marginal cost pupil unit to$270,000 the product of
6.28$540,000 and the ratio of the current year referendum market value equalizing factor to the
6.29referendum market value equalizing factor as calculated for revenue in fiscal year 2015.
6.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
6.31and later.
6.32 Sec. 12. DIRECTION TO THE COMMISSIONER.
6.33In computing the reduction to a school district's referendum allowance, the
6.34commissioner of education must first reduce a district's referendum allowance with the
7.1earliest expiration date and then, if necessary, reduce to additional referendum authority
7.2allowances based on the next earliest expiration date.
7.3 Sec. 13. OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.
7.4Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school district
7.5may not authorize an increase to its operating referendum in fiscal year 2015. A school
7.6district may reauthorize an operating referendum that is expiring in fiscal year 2015. If a
7.7school district asks the voters to reauthorize operating referendum authority that is expiring
7.8in fiscal year 2015, it may request a reauthorization of that expiring authority minus $300.
1.3referendum and debt service equalization aid programs; creating education
1.4advancement revenue; appropriating money;amending Minnesota Statutes 2012,
1.5sections 123B.53, subdivision 5; 126C.01, by adding subdivisions; 126C.10,
1.6subdivision 1, by adding subdivisions; 126C.13, subdivision 4; 126C.17,
1.7subdivisions 1, 2, 6.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 123B.53, subdivision 5, is amended to read:
1.10 Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
1.11district equals the sum of the first tier equalized debt service levy and the second tier
1.12equalized debt service levy.
1.13(b) A district's first tier equalized debt service levy equals the district's first tier debt
1.14service equalization revenue times the lesser of one or the ratio of:
1.15(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.16the year before the year the levy is certified by the adjusted pupil units in the district for
1.17the school year ending in the year prior to the year the levy is certified; to
1.18(2)
1.19capacity equalizing factor to the adjusted net tax capacity equalizing factor as calculated
1.20for revenue in fiscal year 2015.
1.21(c) A district's second tier equalized debt service levy equals the district's second tier
1.22debt service equalization revenue times the lesser of one or the ratio of:
1.23(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.24the year before the year the levy is certified by the adjusted pupil units in the district for
1.25the school year ending in the year prior to the year the levy is certified; to
2.1(2)
2.2capacity equalizing factor to the adjusted net tax capacity equalizing factor as calculated
2.3for revenue in fiscal year 2015.
2.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.5and later.
2.6 Sec. 2. Minnesota Statutes 2012, section 126C.01, is amended by adding a subdivision
2.7to read:
2.8 Subd. 2a. Adjusted net tax capacity equalizing factor. The adjusted net tax
2.9capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax
2.10capacity of all school districts in the state for the year before the year the levy is certified by
2.11the total number of adjusted marginal cost pupil units in the state for the current school year.
2.12EFFECTIVE DATE.This section is effective for taxes payable in 2014 and later.
2.13 Sec. 3. Minnesota Statutes 2012, section 126C.01, is amended by adding a subdivision
2.14to read:
2.15 Subd. 3a. Referendum market value equalizing factor. The referendum market
2.16value equalizing factor equals the quotient derived by dividing the total referendum market
2.17value of all school districts in the state for the year before the year the levy is certified by
2.18the total number of resident marginal cost pupil units in the state for the current school year.
2.19EFFECTIVE DATE.This section is effective for taxes payable in 2014 and later.
2.20 Sec. 4. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
2.21 Subdivision 1. General education revenue. The general education revenue for
2.22each district equals the sum of the district's basic revenue, extended time revenue, gifted
2.23and talented revenue, small schools revenue, basic skills revenue, training and experience
2.24revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
2.25revenue, total operating capital revenue, education advancement revenue, equity revenue,
2.26alternative teacher compensation revenue, and transition revenue.
2.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.28and later.
2.29 Sec. 5. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
2.30to read:
3.1 Subd. 37. Education advancement revenue. The education advancement revenue
3.2for each district equals the advancement allowance times the resident marginal cost
3.3pupil units for the school year. The advancement allowance for fiscal year 2015 and
3.4later years is $300.
3.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.6and later.
3.7 Sec. 6. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
3.8to read:
3.9 Subd. 39. Education advancement levy. To obtain education advancement revenue,
3.10a district may levy an amount not more than the product of its education advancement
3.11revenue for the fiscal year times the lesser of one or the ratio of its referendum market
3.12value per resident marginal cost pupil unit to the education advancement revenue
3.13equalizing factor. The education advancement revenue equalizing factor equals $868,513.
3.14If a district adopts a board resolution to levy less than the permitted levy, the district's
3.15education advancement aid shall be reduced proportionately.
3.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.17and later.
3.18 Sec. 7. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
3.19to read:
3.20 Subd. 40. Education advancement aid. For fiscal year 2015 and later, a school
3.21district's education advancement aid is the product of: (1) the difference between the
3.22district's education advancement revenue and the education advancement levy; times (2)
3.23the ratio of the actual amount levied to the permitted levy.
3.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.25and later.
3.26 Sec. 8. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
3.27 Subd. 4. General education aid. (a) For fiscal years
3.28district's general education aid is the sum of the following amounts:
3.29 (1) general education revenue, excluding equity revenue, total operating capital
3.30revenue, alternative teacher compensation revenue, and transition revenue;
3.31 (2) operating capital aid under section
3.32 (3) equity aid under section
4.1 (4) alternative teacher compensation aid under section
4.2 (5) transition aid under section
4.3 (6) shared time aid under section
4.4 (7) referendum aid under section
4.5 (8) online learning aid according to section
4.6(b) For fiscal year 2015 and later, a district's general education aid is the sum of
4.7the following amounts:
4.8(1) general education revenue, excluding equity revenue, total operating capital
4.9revenue, alternative teacher compensation revenue, education advancement revenue, and
4.10transition revenue;
4.11(2) operating capital aid under section 126C.10, subdivision 13b;
4.12(3) equity aid under section 126C.10, subdivision 30;
4.13(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
4.14(5) education advancement aid under section 126C.10, subdivision 41;
4.15(6) transition aid under section 126C.10, subdivision 33;
4.16(7) shared time aid under section 126C.01, subdivision 7;
4.17(8) referendum aid under section 126C.17, subdivisions 7 and 7a; and
4.18(9) online learning aid according to section 124D.096.
4.19 Sec. 9. Minnesota Statutes 2012, section 126C.17, subdivision 1, is amended to read:
4.20 Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
4.21initial referendum revenue allowance equals the sum of the allowance under section
4.23unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
4.24plus the referendum conversion allowance approved under subdivision 13, minus $415.
4.25For districts with more than one referendum authority, the reduction must be computed
4.26separately for each authority. The reduction must be applied first to the referendum
4.27conversion allowance and next to the authority with the earliest expiration date. A
4.28district's initial referendum revenue allowance may not be less than zero.
4.29
4.30
4.31
4.32
4.33
4.34revenue allowance equals the sum of:
5.1(1) the product of (i) the ratio of the resident marginal cost pupil units the district
5.2would have counted for fiscal year 2004 under Minnesota Statutes 2002, section
5.3to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
5.4referendum allowance plus any additional allowance per resident marginal cost pupil unit
5.5authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
5.6year 2003 and later, plus
5.7(2) any additional allowance per resident marginal cost pupil unit authorized under
5.8subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
5.9(c) For fiscal year 2015 and later, a district's referendum revenue allowance equals
5.10the total of:
5.11(1) the product of (i) the ratio of the resident marginal cost pupil units the district
5.12would have counted for fiscal year 2004 under Minnesota Statutes 2002, section
5.13to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
5.14referendum allowance plus any additional allowance per resident marginal cost pupil unit
5.15authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
5.16year 2003 and later, plus
5.17(2) any additional allowance per resident marginal cost pupil unit authorized under
5.18subdivision 9 after May 30, 2003, for fiscal year 2005 and later, minus
5.19(3) $300.
5.20A district's referendum revenue allowance may not be less than zero.
5.21 Sec. 10. Minnesota Statutes 2012, section 126C.17, subdivision 2, is amended to read:
5.22 Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for
5.23fiscal
5.24not exceed the greater of:
5.25(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
5.26times the annual inflationary increase as calculated under paragraph
5.27referendum conversion allowance for fiscal year 2003, minus (iii) $215;
5.28(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
5.29annual inflationary increase as calculated under paragraph
5.30(3) for a newly reorganized district created after July 1, 2006, the referendum
5.31revenue authority for each reorganizing district in the year preceding reorganization
5.32divided by its resident marginal cost pupil units for the year preceding reorganization.
5.33(b) Notwithstanding subdivision 1, for fiscal year 2015 and later, a district's
5.34referendum allowance must not exceed the greater of:
6.1(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times
6.21.177 times the annual inflationary increase as calculated under paragraph (c) plus (ii) its
6.3referendum conversion allowance for fiscal year 2003, minus (iii) $515;
6.4(2) the greater of: (i) 26 percent of the formula allowance minus $300 or (ii) $1,294
6.5times the annual inflationary increase as calculated under paragraph (c), minus $300; or
6.6(3) for a newly reorganized district created after July 1, 2006, the referendum
6.7revenue authority for each reorganizing district in the year preceding reorganization
6.8divided by its resident marginal cost pupil units for the year preceding reorganization.
6.9
6.10increase" means one plus the percentage change in the Consumer Price Index for
6.11urban consumers, as prepared by the United States Bureau of Labor Standards, for the
6.12current fiscal year to fiscal year 2004. For fiscal years 2009 and later, for purposes of
6.13paragraph (a), clause (1), and paragraph (b), clause (1), the inflationary increase equals the
6.14inflationary increase for fiscal year 2008 plus one-fourth of the percentage increase in the
6.15formula allowance for that year compared with the formula allowance for fiscal year 2008.
6.16 Sec. 11. Minnesota Statutes 2012, section 126C.17, subdivision 6, is amended to read:
6.17 Subd. 6. Referendum equalization levy. (a)
6.18 A district's referendum equalization levy equals the sum of the first tier referendum
6.19equalization levy and the second tier referendum equalization levy.
6.20(b) A district's first tier referendum equalization levy equals the district's first tier
6.21referendum equalization revenue times the lesser of one or the ratio of the district's
6.22referendum market value per resident marginal cost pupil unit to
6.23$952,000 and the ratio of the current year referendum market value equalizing factor to the
6.24referendum market value equalizing factor as calculated for revenue in fiscal year 2015.
6.25(c) A district's second tier referendum equalization levy equals the district's second
6.26tier referendum equalization revenue times the lesser of one or the ratio of the district's
6.27referendum market value per resident marginal cost pupil unit to
6.28$540,000 and the ratio of the current year referendum market value equalizing factor to the
6.29referendum market value equalizing factor as calculated for revenue in fiscal year 2015.
6.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
6.31and later.
6.32 Sec. 12. DIRECTION TO THE COMMISSIONER.
6.33In computing the reduction to a school district's referendum allowance, the
6.34commissioner of education must first reduce a district's referendum allowance with the
7.1earliest expiration date and then, if necessary, reduce to additional referendum authority
7.2allowances based on the next earliest expiration date.
7.3 Sec. 13. OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.
7.4Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school district
7.5may not authorize an increase to its operating referendum in fiscal year 2015. A school
7.6district may reauthorize an operating referendum that is expiring in fiscal year 2015. If a
7.7school district asks the voters to reauthorize operating referendum authority that is expiring
7.8in fiscal year 2015, it may request a reauthorization of that expiring authority minus $300.
