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KEY: stricken = removed, old language.underscored = new language to be added

sc9302-5

1.1A bill for an act
1.2relating to education funding; providing for general education, student
1.3accountability, education excellence, charter schools, special programs,
1.4facilities, and technology; nutrition, libraries, and accounting; early childhood,
1.5self-sufficiency, and lifelong learning; state agencies; forecast adjustments;
1.6amending Minnesota Statutes 2012, sections 120A.20, subdivision 1; 123A.73,
1.7subdivisions 3, 4, 5; 123B.41, subdivision 7; 123B.42, subdivision 3; 123B.92,
1.8subdivision 9; 124D.02, subdivision 1; 126C.05, subdivisions 1, 5, 6, 15;
1.9126C.10, subdivisions 1, 2, 2a, 2c, 3, 7, 8, 13, 13a, 13b, 17, 18, 24, 27, 29, 31,
1.1032, 34, 35, 36, by adding subdivisions; 126C.12, subdivisions 1, 5; 126C.126;
1.11126C.13, subdivisions 4, 5, by adding subdivisions; 126C.15, subdivision 1;
1.12126C.17; 126C.20; 126C.40, subdivisions 1, 6; 126C.44; 127A.47, subdivisions
1.137, 8; 127A.51; 128D.11, subdivision 3; Laws 2007, chapter 146, article 4, section
1.1412; proposing coding for new law in Minnesota Statutes, chapter 126C; repealing
1.15Minnesota Statutes 2012, sections 120B.08; 120B.09; 126C.10, subdivisions 13a,
1.1613b, 25, 26, 28, 31a, 31b, 31c, 34, 35, 36; 126C.17, subdivision 13; 127A.50,
1.17subdivisions 1, 5.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19ARTICLE 1
1.20GENERAL EDUCATION

1.21    Section 1. Minnesota Statutes 2012, section 120A.20, subdivision 1, is amended to read:
1.22    Subdivision 1. Age limitations; pupils. (a) All schools supported in whole or
1.23in part by state funds are public schools. Admission to a public school is free to any
1.24person who: (1) resides within the district that operates the school; (2) is under 21 years of
1.25age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age
1.26requirements imposed by this section. Notwithstanding the provisions of any law to the
1.27contrary, the conduct of all students under 21 years of age attending a public secondary
1.28school is governed by a single set of reasonable rules and regulations promulgated by the
1.29school board.
2.1(b) A person shall not be admitted to a public school (1) as a kindergarten pupil,
2.2unless the pupil is at least five years of age on September 1 of the calendar year in which
2.3the school year for which the pupil seeks admission commences; or (2) as a 1st grade
2.4student, unless the pupil is at least six years of age on September 1 of the calendar year in
2.5which the school year for which the pupil seeks admission commences or has completed
2.6kindergarten; except that any school board may establish a policy for admission of
2.7selected pupils at an earlier age under section 124D.02.
2.8(c) A pupil who becomes age 21 after enrollment is eligible for continued free public
2.9school enrollment until at least one of the following occurs: (1) the first September 1 after
2.10the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3)
2.11the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4)
2.12the end of the school year.

2.13    Sec. 2. Minnesota Statutes 2012, section 123A.73, subdivision 3, is amended to read:
2.14    Subd. 3. Voluntary dissolution; referendum revenue. As of the effective date of
2.15the voluntary dissolution of a district and its attachment to one or more existing districts
2.16pursuant to section 123A.46, the authorization for all referendum revenues previously
2.17approved by the voters of all affected districts for those districts pursuant to section
2.18126C.17, subdivision 9 , or its predecessor provision, is canceled. However, if all of the
2.19territory of any independent district is included in the enlarged district, and if the adjusted
2.20net tax capacity of taxable property in that territory comprises 90 percent or more of
2.21the adjusted net tax capacity of all taxable property in an enlarged district, the enlarged
2.22district's referendum revenue shall be determined as follows:
2.23The referendum revenue shall be the revenue per resident marginal cost adjusted
2.24 pupil unit times the number of resident marginal cost adjusted pupil units in the enlarged
2.25district. Any new referendum revenue shall be authorized only after approval is granted
2.26by the voters of the entire enlarged district in an election pursuant to section 126C.17,
2.27subdivision 9
.
2.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
2.29and later.

2.30    Sec. 3. Minnesota Statutes 2012, section 123A.73, subdivision 4, is amended to read:
2.31    Subd. 4. Consolidation; maximum authorized referendum revenues. (a) As
2.32of the effective date of a consolidation pursuant to section 123A.48, if the plan for
2.33consolidation so provides, or if the plan for consolidation makes no provision concerning
2.34referendum revenues, the authorization for all referendum revenues previously approved
3.1by the voters of all affected districts for those districts pursuant to section 126C.17,
3.2subdivision 9
, or its predecessor provision shall be recalculated as provided in this
3.3subdivision. The referendum revenue authorization for the newly created district shall
3.4be the revenue per resident marginal cost adjusted pupil unit that would raise an amount
3.5equal to the combined dollar amount of the referendum revenues authorized by each of
3.6the component districts for the year preceding the consolidation, unless the referendum
3.7revenue authorization of the newly created district is subsequently modified pursuant to
3.8section 126C.17, subdivision 9.
3.9(b) The referendum allowance for a consolidated district in the years following
3.10consolidation equals the average of the consolidating districts' existing authorities for those
3.11years, weighted by the districts' resident marginal cost adjusted pupil units in the year
3.12preceding consolidation. For purposes of this calculation, the referendum authorities used
3.13for individual districts shall not decrease from year to year until such time as all existing
3.14authorities for all the consolidating districts have fully expired, but shall increase if they
3.15were originally approved with consumer price index-based or other annual increases.
3.16(c) The referendum revenue authorization for the newly created district shall continue
3.17for a period of time equal to the longest period authorized for any component district.
3.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.19and later.

3.20    Sec. 4. Minnesota Statutes 2012, section 123A.73, subdivision 5, is amended to read:
3.21    Subd. 5. Alternative method. (a) As of the effective date of a consolidation
3.22pursuant to section 123A.48, if the plan for consolidation so provides, the authorization
3.23for all referendum revenues previously approved by the voters of all affected districts for
3.24those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision
3.25shall be combined as provided in this subdivision. The referendum revenue authorization
3.26for the newly created district may be any allowance per resident marginal cost adjusted
3.27 pupil unit provided in the plan for consolidation, but may not exceed the allowance
3.28per resident marginal cost adjusted pupil unit that would raise an amount equal to the
3.29combined dollar amount of the referendum revenues authorized by each of the component
3.30districts for the year preceding the consolidation.
3.31(b) The referendum allowance for a consolidated district in the years following
3.32consolidation equals the average of the consolidating districts' existing authorities for those
3.33years, weighted by the districts' resident marginal cost adjusted pupil units in the year
3.34preceding consolidation. For purposes of this calculation, the referendum authorities used
3.35for individual districts shall not decrease from year to year until such time as all existing
4.1authorities for all the consolidating districts have fully expired, but shall increase if they
4.2were originally approved with consumer price index-based or other annual increases.
4.3(c) The referendum revenue authorization for the newly created district shall
4.4continue for a period of time equal to the longest period authorized for any component
4.5district. The referendum revenue authorization for the newly created district may be
4.6modified pursuant to section 126C.17, subdivision 9.
4.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
4.8and later.

4.9    Sec. 5. Minnesota Statutes 2012, section 123B.41, subdivision 7, is amended to read:
4.10    Subd. 7. Elementary pupils. "Elementary pupils" means pupils in grades
4.11kindergarten through 6; provided, each kindergarten pupil in a half-day program shall be
4.12counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42,
4.13and 123B.44 to 123B.48.
4.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015.

4.15    Sec. 6. Minnesota Statutes 2012, section 123B.42, subdivision 3, is amended to read:
4.16    Subd. 3. Cost; limitation. (a) The cost per pupil of the textbooks, individualized
4.17instructional or cooperative learning materials, software or other educational technology,
4.18and standardized tests provided for in this section for each school year must not exceed the
4.19statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota
4.20public elementary and secondary schools for textbooks, individualized instructional
4.21materials and standardized tests as computed and established by the department by February
4.221 of the preceding school year from the most recent public school year data then available.
4.23(b) The cost computed in clause (a) shall be increased by an inflation adjustment
4.24equal to the percent of increase in the formula allowance, pursuant to section 126C.10,
4.25subdivision 2
, from the second preceding school year to the current school year.
4.26 Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in
4.27section 126C.10, subdivision 2, the commissioner shall use the amount of the formula
4.28allowance for the current year minus $411 in determining the inflation adjustment for
4.29fiscal years 2015 and 2016.
4.30(c) The commissioner shall allot to the districts or intermediary service areas the
4.31total cost for each school year of providing or loaning the textbooks, individualized
4.32instructional or cooperative learning materials, software or other educational technology,
4.33and standardized tests for the pupils in each nonpublic school. The allotment shall not
5.1exceed the product of the statewide average expenditure per pupil, according to clause
5.2(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils
5.3who make requests pursuant to this section and who are enrolled as of September 15 of
5.4the current school year.

5.5    Sec. 7. Minnesota Statutes 2012, section 123B.92, subdivision 9, is amended to read:
5.6    Subd. 9. Nonpublic pupil transportation aid. (a) A district's nonpublic pupil
5.7transportation aid for the 1996-1997 and later school years for transportation services for
5.8nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this
5.9section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does
5.10not limit the obligation to transport pupils under sections 123B.84 to 123B.87.
5.11(b) For regular and excess transportation according to subdivision 1, paragraph (b),
5.12clauses (1) and (2), an amount equal to the product of:
5.13(1) the district's actual expenditure per pupil transported in the regular and excess
5.14transportation categories during the second preceding school year; times
5.15(2) the number of nonpublic school pupils residing in the district who receive regular
5.16or excess transportation service or reimbursement for the current school year; times
5.17(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
5.18the current school year to the formula allowance pursuant to section 126C.10, subdivision
5.192
, for the second preceding school year.
5.20(c) For nonpublic nonregular transportation according to subdivision 1, paragraph
5.21(b), clause (5), an amount equal to the product of:
5.22(1) the district's actual expenditure for nonpublic nonregular transportation during
5.23the second preceding school year; times
5.24(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
5.25the current school year to the formula allowance pursuant to section 126C.10, subdivision
5.262
, for the second preceding school year.
5.27(d) Notwithstanding the amount of the formula allowance for fiscal year 2004
5.28 years 2015 and 2016 in section 126C.10, subdivision 2, the commissioner shall use the
5.29amount of the formula allowance for the current year minus $415 $411 in determining
5.30the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal year 2004
5.31 years 2015 and 2016.
5.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
5.33and later.

5.34    Sec. 8. Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:
6.1    Subdivision 1. Kindergarten instruction. The board may establish and maintain
6.2one or more kindergartens for the instruction of children and after July 1, 1974, shall
6.3provide kindergarten instruction for all eligible children, either in the district or in
6.4another district. All children to be eligible for kindergarten must be at least five years
6.5of age on September 1 of the calendar year in which the school year commences. In
6.6addition all children selected under an early admissions policy established by the school
6.7board may be admitted. If established, a board-adopted early admissions policy must
6.8describe the process and procedures for comprehensive evaluation in cognitive, social,
6.9and emotional developmental domains to help determine the child's ability to meet
6.10kindergarten grade expectations and progress to first grade in the subsequent year. The
6.11comprehensive evaluation must use valid and reliable instrumentation, be aligned with
6.12state kindergarten expectations, and include a parent report and teacher observations of
6.13the child's knowledge, skills, and abilities. The early admissions policy must be made
6.14available to parents in an accessible format and is subject to review by the commissioner
6.15of education. The evaluation is subject to section 127A.41. Nothing in this section
6.16shall prohibit a school district from establishing Head Start, prekindergarten, or nursery
6.17school classes for children below kindergarten age. Any school board with evidence that
6.18providing kindergarten will cause an extraordinary hardship on the school district may
6.19apply to the commissioner of education for an exception.

6.20    Sec. 9. Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:
6.21    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the
6.22age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
6.23in average daily membership enrolled in the district of residence, in another district under
6.24sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
6.25section 124D.10; or for whom the resident district pays tuition under section 123A.18,
6.26123A.22 , 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
6.27124D.05 , 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
6.28subdivision.
6.29    (a) A prekindergarten pupil with a disability who is enrolled in a program approved
6.30by the commissioner and has an individualized education program is counted as the ratio
6.31of the number of hours of assessment and education service to 825 times 1.25 1.0 with a
6.32minimum average daily membership of 0.28, but not more than 1.25 1.0 pupil units.
6.33    (b) A prekindergarten pupil who is assessed but determined not to be disabled is
6.34counted as the ratio of the number of hours of assessment service to 825 times 1.25 1.0.
7.1    (c) A kindergarten pupil with a disability who is enrolled in a program approved
7.2by the commissioner is counted as the ratio of the number of hours of assessment and
7.3education services required in the fiscal year by the pupil's individualized education
7.4program to 875, but not more than one.
7.5    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .612
7.6pupil units A kindergarten pupil who is not included in paragraph (c) is counted as 1.0
7.7pupil units if the pupil is enrolled in a free all-day, every day kindergarten program
7.8available to all kindergarten pupils at the pupil's school, or is counted as .55 pupil units, if
7.9the pupil is not enrolled in a free all-day, every day kindergarten program available to all
7.10kindergarten pupils at the pupil's school.
7.11    (e) A pupil who is in any of grades 1 to 3 6 is counted as 1.115 1.0 pupil units for
7.12fiscal year 2000 and thereafter.
7.13    (f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
7.14year 1995 and thereafter.
7.15    (g) A pupil who is in any of grades 7 to 12 is counted as 1.3 1.2 pupil units.
7.16    (h) (g) A pupil who is in the postsecondary enrollment options program is counted
7.17as 1.3 1.2 pupil units.
7.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
7.19and later.

7.20    Sec. 10. Minnesota Statutes 2012, section 126C.05, subdivision 5, is amended to read:
7.21    Subd. 5. Adjusted pupil units. (a) Adjusted pupil units for a district or charter
7.22school means the sum of:
7.23(1) the number of pupil units served, according to subdivision 7, plus
7.24(2) pupil units according to subdivision 1 for whom the district or charter school pays
7.25tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
7.26subdivision 4
, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus
7.27(3) pupil units according to subdivision 1 for whom the district or charter school
7.28receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
7.29123B.88, subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.
7.30(b) Adjusted marginal cost pupil units means the greater of:
7.31(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
7.32year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
7.33(2) the number of adjusted pupil units defined in paragraph (a) for the current school
7.34year.
8.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
8.2and later.

8.3    Sec. 11. Minnesota Statutes 2012, section 126C.05, subdivision 6, is amended to read:
8.4    Subd. 6. Resident pupil units. (a) Resident pupil units for a district means the
8.5number of pupil units according to subdivision 1 residing in the district.
8.6(b) Resident marginal cost pupil units means the greater of:
8.7(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
8.8and .23 times the pupil units defined in paragraph (a) for the previous school year; or
8.9(2) the number of resident pupil units defined in paragraph (a) for the current school
8.10year.
8.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
8.12and later.

8.13    Sec. 12. Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:
8.14    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
8.15year program under section 124D.128, an area learning center or an alternative learning
8.16program approved by the commissioner under sections 123A.05 and 123A.06, or a
8.17contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
8.18subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more
8.19than 935 hours in a school year for an elementary student, more than 850 hours in a school
8.20year for a kindergarten student without a disability in a full-day kindergarten program,
8.21or more than 425 hours in a school year for a half-day kindergarten student without a
8.22disability, that pupil may be counted as more than one pupil in average daily membership
8.23for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
8.24be determined by the ratio of the number of hours of instruction provided to that pupil in
8.25excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
8.26secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
8.27or the number of hours required for a full-time elementary pupil in the district to 935 for
8.28an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or the number
8.29of hours required for a full-time kindergarten student without a disability in the district to
8.30425 for a kindergarten student without a disability; and (iv) the greater of 425 hours or the
8.31number of hours required for a half-time kindergarten student without a disability in the
8.32district to 425 for a half-day kindergarten student without a disability. Hours that occur
8.33after the close of the instructional year in June shall be attributable to the following fiscal
8.34year. A kindergarten student must not be counted as more than 1.2 pupils in average daily
9.1membership under this subdivision. A student in kindergarten or grades 1 through 12 must
9.2not be counted as more than 1.2 pupils in average daily membership under this subdivision.
9.3(b)(i) To receive general education revenue for a pupil in an area learning center
9.4or alternative learning program that has an independent study component, a district
9.5must meet the requirements in this paragraph. The district must develop, for the pupil,
9.6a continual learning plan consistent with section 124D.128, subdivision 3. Each school
9.7district that has an area learning center or alternative learning program must reserve
9.8revenue in an amount equal to at least 90 percent of the district average general education
9.9revenue per pupil unit, minus an amount equal to the product of the formula allowance
9.10according to section 126C.10, subdivision 2, times .0485 .0465, calculated without basic
9.11skills and transportation sparsity revenue, times the number of pupil units generated by
9.12students attending an area learning center or alternative learning program. The amount of
9.13reserved revenue available under this subdivision may only be spent for program costs
9.14associated with the area learning center or alternative learning program. Basic skills
9.15revenue generated according to section 126C.10, subdivision 4, by pupils attending the
9.16eligible program must be allocated to the program.
9.17(ii) General education revenue for a pupil in a state-approved alternative program
9.18without an independent study component must be prorated for a pupil participating for less
9.19than a full year, or its equivalent. The district must develop a continual learning plan for the
9.20pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area
9.21learning center or alternative learning program must reserve revenue in an amount equal to
9.22at least 90 percent of the district average general education revenue per pupil unit, minus
9.23an amount equal to the product of the formula allowance according to section 126C.10,
9.24subdivision 2
, times .0485 .0465, calculated without basic skills and transportation sparsity
9.25revenue, times the number of pupil units generated by students attending an area learning
9.26center or alternative learning program. The amount of reserved revenue available under this
9.27subdivision may only be spent for program costs associated with the area learning center or
9.28alternative learning program. Basic skills revenue generated according to section 126C.10,
9.29subdivision 4
, by pupils attending the eligible program must be allocated to the program.
9.30(iii) General education revenue for a pupil in a state-approved alternative program
9.31that has an independent study component must be paid for each hour of teacher contact
9.32time and each hour of independent study time completed toward a credit or graduation
9.33standards necessary for graduation. Average daily membership for a pupil shall equal the
9.34number of hours of teacher contact time and independent study time divided by 1,020.
9.35(iv) For a state-approved alternative program having an independent study
9.36component, the commissioner shall require a description of the courses in the program, the
10.1kinds of independent study involved, the expected learning outcomes of the courses, and
10.2the means of measuring student performance against the expected outcomes.
10.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015.

10.4    Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
10.5    Subdivision 1. General education revenue. (a) For fiscal years 2013 and 2014, the
10.6general education revenue for each district equals the sum of the district's basic revenue,
10.7extended time revenue, gifted and talented revenue, small schools revenue, basic skills
10.8revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
10.9revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
10.10alternative teacher compensation revenue, and transition revenue.
10.11(b) For fiscal year 2015 and later, the general education revenue for each district
10.12equals the sum of the district's basic revenue, extended time revenue, gifted and talented
10.13revenue, declining enrollment revenue, small schools revenue, basic supplemental
10.14revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
10.15transportation sparsity revenue, total operating capital revenue, equity revenue, teacher
10.16development and evaluation revenue, pension adjustment revenue, safe schools revenue,
10.17and transition revenue.

10.18    Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:
10.19    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
10.20equals the formula allowance times the adjusted marginal cost pupil units for the school
10.21year. The formula allowance for fiscal year 2011 is $5,124. The formula allowance for
10.22fiscal year 2012 is $5,174. For fiscal year 2015 and later, the basic revenue for each district
10.23equals the formula allowance times the adjusted pupil units for the school year. The formula
10.24allowance for fiscal year 2013 and subsequent years is $5,224. The formula allowance for
10.25fiscal year 2014 is $5,276. The formula allowance for fiscal year 2015 and later is $5,687.

10.26    Sec. 15. Minnesota Statutes 2012, section 126C.10, subdivision 2a, is amended to read:
10.27    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue
10.28is equal to the product of $4,601 $4,945 and the sum of the adjusted marginal cost pupil
10.29units of the district for each pupil in average daily membership in excess of 1.0 and less
10.30than 1.2 according to section 126C.05, subdivision 8.
10.31(b) A school district's extended time revenue may be used for extended day
10.32programs, extended week programs, summer school, and other programming authorized
10.33under the learning year program.

11.1    Sec. 16. Minnesota Statutes 2012, section 126C.10, subdivision 2c, is amended to read:
11.2    Subd. 2c. Small schools revenue. A school district, not including a charter school,
11.3is eligible for small schools revenue equal to the product of:
11.4(1) $5,224 $540;
11.5(2) the district's adjusted marginal cost pupil units for that year; and
11.6(3) the greater of zero or the ratio of (i) 1,000 960 less the district's adjusted marginal
11.7cost pupil units for that year, to (ii) 1,000; and 960.
11.8(4) 0.10.
11.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
11.10and later.

11.11    Sec. 17. Minnesota Statutes 2012, section 126C.10, is amended by adding a
11.12subdivision to read:
11.13    Subd. 2d. Declining enrollment revenue. A school district's declining enrollment
11.14revenue equals the greater of zero or the product of: (1) 28 percent of the formula
11.15allowance for that year and (2) the difference between the adjusted pupil units for the
11.16preceding year and the adjusted pupil units for the current year.
11.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
11.18and later.

11.19    Sec. 18. Minnesota Statutes 2012, section 126C.10, is amended by adding a
11.20subdivision to read:
11.21    Subd. 2e. Basic supplemental revenue. The basic supplemental revenue for each
11.22district equals the supplemental allowance times the adjusted pupil units for the school
11.23year. The supplemental allowance for fiscal year 2015 and later years is $56.
11.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
11.25and later.

11.26    Sec. 19. Minnesota Statutes 2012, section 126C.10, is amended by adding a
11.27subdivision to read:
11.28    Subd. 2f. Safe schools revenue. The safe schools revenue for each district, not
11.29including charter schools, equals the safe schools allowance times the district's adjusted
11.30pupil units for the school year. The safe schools allowance for fiscal year 2015 and
11.31later years is $34.

12.1    Sec. 20. Minnesota Statutes 2012, section 126C.10, is amended by adding a
12.2subdivision to read:
12.3    Subd. 2g. Uses of safe schools revenue. (a) Safe schools revenue, under subdivision
12.42f, must be reserved and used for directly funding the following purposes or for reimbursing
12.5the cities and counties who contract with the district for the following purposes:
12.6(1) to pay the costs incurred for the salaries, benefits, and transportation costs of
12.7peace officers and sheriffs for liaison in services in the district's schools;
12.8(2) to pay the costs for a drug abuse prevention program as defined in section
12.9609.101, subdivision 3, paragraph (e), in the elementary schools;
12.10(3) to pay the costs for a gang resistance education training curriculum in the
12.11district's schools;
12.12(4) to pay the costs for security in the district's schools and on school property;
12.13(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
12.14voluntary opt-in suicide prevention tools, and violence prevention measures taken by
12.15the school district;
12.16(6) to pay the costs for licensed school counselors, licensed school nurses, licensed
12.17school social workers, licensed school psychologists, and licensed alcohol and chemical
12.18dependency counselors to help provide early responses to problems; or
12.19(7) to pay the costs for colocating and collaborating with mental health professionals
12.20who are not district employees or contractors.
12.21For expenditures under clause (1), the district must initially attempt to contract for
12.22services to be provided by peace officers or sheriffs with the police department of each
12.23city or the sheriff's department of the county within the district containing the school
12.24receiving the services. If a local police department or a county sheriff's department does
12.25not wish to provide the necessary services, the district may contract for these services with
12.26any other police or sheriff's department located entirely or partially within the school
12.27district's boundaries.
12.28(b) A school district may reserve up to $2 per adjusted pupil unit of safe schools
12.29revenue for laminated glass for security in the district's schools.

12.30    Sec. 21. Minnesota Statutes 2012, section 126C.10, subdivision 3, is amended to read:
12.31    Subd. 3. Compensatory education revenue. (a) For fiscal year 2014, the
12.32compensatory education revenue for each building in the district equals the formula
12.33allowance minus $415 times the compensation revenue pupil units computed according
12.34to section 126C.05, subdivision 3. For fiscal year 2015 and later, the compensatory
12.35education revenue for each building in the district equals the formula allowance minus
13.1$826 times the compensation revenue pupil units computed according to section 126C.05,
13.2subdivision 3. Revenue shall be paid to the district and must be allocated according to
13.3section 126C.15, subdivision 2.
13.4(b) When the district contracting with an alternative program under section 124D.69
13.5changes prior to the start of a school year, the compensatory revenue generated by pupils
13.6attending the program shall be paid to the district contracting with the alternative program
13.7for the current school year, and shall not be paid to the district contracting with the
13.8alternative program for the prior school year.
13.9(c) When the fiscal agent district for an area learning center changes prior to the start
13.10of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
13.11current school year, and shall not be paid to the fiscal agent district for the prior school year.

13.12    Sec. 22. Minnesota Statutes 2012, section 126C.10, subdivision 7, is amended to read:
13.13    Subd. 7. Secondary sparsity revenue. (a) A district's secondary sparsity revenue
13.14for a school year equals the sum of the results of the following calculation for each
13.15qualifying high school in the district:
13.16(1) the formula allowance for the school year minus $411, multiplied by
13.17(2) the secondary average daily membership of pupils served in the high school,
13.18multiplied by
13.19(3) the quotient obtained by dividing 400 minus the secondary average daily
13.20membership by 400 plus the secondary daily membership, multiplied by
13.21(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
13.2223 by ten.
13.23(b) A newly formed district that is the result of districts combining under the
13.24cooperation and combination program or consolidating under section 123A.48 must
13.25receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
13.26under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
13.27sparsity revenue the former districts had in the year prior to consolidation, increased for
13.28any subsequent changes in the secondary sparsity formula.
13.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
13.30and later.

13.31    Sec. 23. Minnesota Statutes 2012, section 126C.10, subdivision 8, is amended to read:
13.32    Subd. 8. Elementary sparsity revenue. A district's elementary sparsity revenue
13.33equals the sum of the following amounts for each qualifying elementary school in the
13.34district:
14.1(1) the formula allowance for the year minus $411, multiplied by
14.2(2) the elementary average daily membership of pupils served in the school,
14.3multiplied by
14.4(3) the quotient obtained by dividing 140 minus the elementary average daily
14.5membership by 140 plus the average daily membership.
14.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
14.7and later.

14.8    Sec. 24. Minnesota Statutes 2012, section 126C.10, subdivision 13, is amended to read:
14.9    Subd. 13. Total operating capital revenue. (a) Total operating capital revenue for
14.10a district equals the amount determined under paragraph (b) or (c), plus $73 $79 times the
14.11adjusted marginal cost pupil units for the school year. The revenue must be placed in a
14.12reserved account in the general fund and may only be used according to subdivision 14.
14.13(b) Capital revenue for a district equals $100 $108 times the district's maintenance
14.14cost index times its adjusted marginal cost pupil units for the school year.
14.15(c) The revenue for a district that operates a program under section 124D.128, is
14.16increased by an amount equal to $30 times the number of marginal cost adjusted pupil
14.17units served at the site where the program is implemented.
14.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
14.19and later.

14.20    Sec. 25. Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:
14.21    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
14.22year 2007 years 2013 and later 2014 only, a district may levy an amount not more than the
14.23product of its operating capital revenue for the fiscal year times the lesser of one or the
14.24ratio of its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating
14.25capital equalizing factor. The operating capital equalizing factor equals $10,194.

14.26    Sec. 26. Minnesota Statutes 2012, section 126C.10, subdivision 13b, is amended to read:
14.27    Subd. 13b. Operating capital aid. For fiscal years 2013 and 2014 only, a district's
14.28operating capital aid equals its operating capital revenue minus its operating capital levy
14.29times the ratio of the actual amount levied to the permitted levy.

14.30    Sec. 27. Minnesota Statutes 2012, section 126C.10, subdivision 17, is amended to read:
15.1    Subd. 17. Transportation sparsity definitions. The definitions in this subdivision
15.2apply to subdivisions 18 and 19.
15.3(a) "Sparsity index" for a district means the greater of .2 or the ratio of the square
15.4mile area of the district to the resident adjusted pupil units of the district.
15.5(b) "Density index" for a district means the ratio of the square mile area of the
15.6district to the resident adjusted pupil units of the district. However, the density index for a
15.7district cannot be greater than .2 or less than .005.
15.8EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

15.9    Sec. 28. Minnesota Statutes 2012, section 126C.10, subdivision 18, is amended to read:
15.10    Subd. 18. Transportation sparsity revenue allowance. (a) A district's
15.11transportation sparsity allowance equals the greater of zero or the result of the following
15.12computation:
15.13(i) Multiply the formula allowance according to subdivision 2, by .1469 .141.
15.14(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
15.1526/100 power.
15.16(iii) Multiply the result in clause (ii) by the district's density index raised to the
15.1713/100 power.
15.18(iv) Multiply the formula allowance according to subdivision 2, by .0485 .0465.
15.19(v) Subtract the result in clause (iv) from the result in clause (iii).
15.20(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
15.21times the adjusted marginal cost pupil units.
15.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
15.23and later.

15.24    Sec. 29. Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:
15.25    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
15.26    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
15.27transition revenue, and referendum revenue is less than the value of the school district at
15.28or immediately above the 95th percentile of school districts in its equity region for those
15.29revenue categories; and
15.30    (2) the school district's administrative offices are not located in a city of the first
15.31class on July 1, 1999.
15.32    (b) A school district's equity revenue for a qualifying district that receives
15.33referendum revenue under section 126C.17, subdivision 4, equals the product of (1) the
16.1district's adjusted marginal cost pupil units for that year; times (2) the sum of (i) $13, plus
16.2(ii) $75 $100, times the school district's equity index computed under subdivision 27.
16.3    (c) Equity revenue for a qualifying district that does not receive referendum revenue
16.4under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
16.5cost pupil units for that year times $13.
16.6    (d) A school district's equity revenue is increased by the greater of zero or an amount
16.7equal to the district's resident marginal cost pupil units times the difference between ten
16.8percent of the statewide average amount of referendum revenue per resident marginal cost
16.9pupil unit for that year and the district's referendum revenue per resident marginal cost
16.10pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
16.11that year.
16.12    (e) A school district's equity revenue for a school district located in the metro equity
16.13region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
16.14    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
16.15district that has per pupil referendum revenue below the 95th percentile qualifies for
16.16additional equity revenue equal to $46 times its adjusted marginal cost pupil units.
16.17    (g) A district that does not qualify for revenue under paragraph (f) qualifies for
16.18equity revenue equal to $46 times its adjusted marginal cost pupil units.
16.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
16.20and later.

16.21    Sec. 30. Minnesota Statutes 2012, section 126C.10, subdivision 27, is amended to read:
16.22    Subd. 27. District equity index. (a) A district's equity index equals the greater
16.23of zero or the ratio of the sum of the district equity gap amount to the regional equity
16.24gap amount $2,000 minus the district's referendum revenue under section 126C.17,
16.25subdivision 4, per adjusted pupil unit to $2,000.
16.26(b) A charter school's equity index equals the greater of zero or the ratio of $2,000
16.27minus the school's general education revenue attributable to referendum equalization aid
16.28under section 124D.11, subdivision 1, per adjusted pupil unit to $2,000.
16.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
16.30and later.

16.31    Sec. 31. Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:
16.32    Subd. 29. Equity levy. To obtain equity revenue for fiscal year 2005 2015 and later,
16.33a district may levy an amount not more than the product of its equity revenue for the
17.1fiscal year times the lesser of one or the ratio of its referendum market value per resident
17.2marginal cost pupil unit to $476,000 $538,200.
17.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.4and later.

17.5    Sec. 32. Minnesota Statutes 2012, section 126C.10, subdivision 31, is amended to read:
17.6    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
17.7sum of the transition revenue the district would have received for fiscal year 2015 under
17.8Minnesota Statutes 2012, section 126C.10, subdivision 31, and the greater of zero or the
17.9product of the ratio of the number of adjusted marginal cost pupil units the district would
17.10have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's adjusted
17.11marginal cost pupil units for fiscal year 2004, times the difference between:
17.12    (1) the lesser sum of:
17.13    (i) the district's general education revenue per adjusted marginal cost pupil unit
17.14for fiscal year 2003 or the amount of general education revenue the district would have
17.15received per adjusted marginal cost pupil unit for fiscal year 2004 2015 according to
17.16Minnesota Statutes 2002, 2012, section 126C.10;
17.17(ii) the safe school levy the district certified for fiscal year 2014 under Minnesota
17.18Statutes 2012, section 126C.44;
17.19(iii) 70 percent of the integration revenue the district received for fiscal year 2013
17.20under Minnesota Statutes 2012, section 124D.86;
17.21(iv) the pension adjustment the district would have received for fiscal year 2015
17.22under Minnesota Statutes 2012, section 127A.50;
17.23(v) the special education aid the district would have received for fiscal year 2015
17.24under Minnesota Statutes 2012, section 124D.11;
17.25(vi) the special education excess cost aid the district would have received for fiscal
17.26year 2015 under Minnesota Statutes 2012, section 125A.79; and
17.27(vii) the charter school lease aid the district would have received under Minnesota
17.28Statutes 2012, section 124D.11; and
17.29(2) the sum of district's:
17.30(i) general education revenue for fiscal year 2004 2015 excluding transition revenue
17.31under section 126C.10;
17.32(ii) integration revenue for fiscal year 2015 under section 124D.862;
17.33(iii) special education aid for fiscal year 2015 under section 125A.76; and
17.34(iv) the charter school lease aid for fiscal year 2015 under section 124D.11;
18.1divided by the number of adjusted marginal cost pupil units the district would have
18.2counted for fiscal year 2004 under Minnesota Statutes 2002 2015.
18.3    (b) A district's transition revenue for fiscal years 2006 through 2009 equals the sum of
18.4the product of the district's transition allowance times the district's adjusted marginal cost
18.5pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
18.6    (c) (b) A district's transition revenue for fiscal year 2010 2015 and later equals the
18.7sum of the product of the district's transition allowance times the district's adjusted marginal
18.8cost pupil units plus the district's transition for prekindergarten revenue under subdivision
18.931a plus the district's transition for tuition reciprocity revenue under subdivision 31c.
18.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
18.11and later.

18.12    Sec. 33. Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:
18.13    Subd. 32. Transition levy. To obtain transition revenue for fiscal year 2005 2015
18.14 and later, a district may levy an amount not more than the product of its transition revenue
18.15for the fiscal year times the lesser of one or the ratio of its referendum market value per
18.16resident marginal cost pupil unit to $476,000 $538,200.
18.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
18.18and later.

18.19    Sec. 34. Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:
18.20    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years 2007,
18.212008, and 2009, the basic alternative teacher compensation aid for a school district
18.22with a plan approved under section 122A.414, subdivision 2b, equals 73.1 percent of
18.23the alternative teacher compensation revenue under section 122A.415, subdivision 1.
18.24The basic alternative teacher compensation aid for an intermediate school district or
18.25charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
18.26the recipient is a charter school, equals $260 times the number of pupils enrolled in the
18.27school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
18.28year for a charter school in the first year of operation, times the ratio of the sum of the
18.29alternative teacher compensation aid and alternative teacher compensation levy for all
18.30participating school districts to the maximum alternative teacher compensation revenue
18.31for those districts under section 122A.415, subdivision 1.
18.32    (b) For fiscal years 2010 and later 2013 and 2014 only, the basic alternative
18.33teacher compensation aid for a school with a plan approved under section 122A.414,
19.1subdivision 2b
, equals 65 percent of the alternative teacher compensation revenue under
19.2section 122A.415, subdivision 1. The basic alternative teacher compensation aid for
19.3an intermediate school district or charter school with a plan approved under section
19.4122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
19.5the number of pupils enrolled in the school on October 1 of the previous year, or on
19.6October 1 of the current year for a charter school in the first year of operation, times
19.7the ratio of the sum of the alternative teacher compensation aid and alternative teacher
19.8compensation levy for all participating school districts to the maximum alternative teacher
19.9compensation revenue for those districts under section 122A.415, subdivision 1.
19.10(c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 122A.415,
19.11subdivision 1
, the state total basic alternative teacher compensation aid entitlement must
19.12not exceed $75,636,000 for fiscal year 2007 and later. The commissioner must limit the
19.13amount of alternative teacher compensation aid approved under section 122A.415 so as
19.14not to exceed these limits.

19.15    Sec. 35. Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:
19.16    Subd. 35. Alternative teacher compensation levy. For fiscal year 2007 years 2013
19.17 and later 2014 only, the alternative teacher compensation levy for a district receiving basic
19.18alternative teacher compensation aid equals the product of (1) the difference between the
19.19district's alternative teacher compensation revenue and the district's basic alternative
19.20teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
19.21net tax capacity per adjusted pupil unit to $5,634.

19.22    Sec. 36. Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:
19.23    Subd. 36. Alternative teacher compensation aid. (a) For fiscal year 2007 years
19.242013 and later 2014 only, a district's alternative teacher compensation equalization aid
19.25equals the district's alternative teacher compensation revenue minus the district's basic
19.26alternative teacher compensation aid minus the district's alternative teacher compensation
19.27levy. If a district does not levy the entire amount permitted, the alternative teacher
19.28compensation equalization aid must be reduced in proportion to the actual amount levied.
19.29(b) A district's alternative teacher compensation aid equals the sum of the
19.30district's basic alternative teacher compensation aid and the district's alternative teacher
19.31compensation equalization aid.

19.32    Sec. 37. Minnesota Statutes 2012, section 126C.10, is amended by adding a
19.33subdivision to read:
20.1    Subd. 37. Teacher development and evaluation revenue. (a) Teacher development
20.2and evaluation revenue for an eligible school district or site equals the teacher development
20.3and evaluation allowance times the number of pupils enrolled at the district or site on
20.4October 1 of the previous fiscal year. The teacher development and evaluation allowance
20.5equals $0 for fiscal year 2015 and $22 for fiscal year 2016 and later.
20.6(b) A district or site is eligible for teacher development and evaluation revenue if it
20.7does not qualify for alternative compensation revenue under section 122A.415, subdivision
20.81, and a school board and exclusive representative of the teachers have reached a joint
20.9agreement under section 122A.40, subdivision 8, paragraph (c), or 122A.41, subdivision 5,
20.10paragraph (c). A charter school is eligible for teacher development and evaluation revenue
20.11if it does not qualify for alternative compensation revenue under section 122A.415,
20.12subdivision 1, and has implemented a process for development, evaluation, and peer
20.13coaching of teachers meeting the criteria in section 122A.40, subdivision 8, paragraph (b).
20.14(c) For school districts, teacher development and evaluation revenue must be
20.15reserved and used to implement plans under section 122A.40, subdivision 8, or 122A.41,
20.16subdivision 5.
20.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
20.18and later.

20.19    Sec. 38. Minnesota Statutes 2012, section 126C.10, is amended by adding a
20.20subdivision to read:
20.21    Subd. 38. Pension adjustment revenue. A school district's pension adjustment
20.22revenue equals the greater of zero or the product of:
20.23(1) the difference between the district's adjustment under Minnesota Statutes 2012,
20.24section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state
20.25average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for
20.26fiscal year 2014 per adjusted pupil unit; and
20.27(2) the district's adjusted pupil units for the fiscal year.
20.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
20.29and later.

20.30    Sec. 39. Minnesota Statutes 2012, section 126C.12, subdivision 1, is amended to read:
20.31    Subdivision 1. Revenue. Of a district's general education revenue for fiscal year
20.322000 2015 and thereafter each school district shall reserve an amount equal to the formula
20.33allowance multiplied by the following calculation:
21.1(1) the sum of adjusted marginal cost pupils in average daily membership, according
21.2to section 126C.05, subdivision 5, in kindergarten times .057 $299; plus
21.3(2) the sum of adjusted marginal cost pupils in average daily membership, according
21.4to section 126C.05, subdivision 5, in grades 1 to 3 6 times .115; plus $459.
21.5(3) the sum of adjusted marginal cost pupils in average daily membership, according
21.6to section 126C.05, subdivision 5, in grades 4 to 6 times .06.
21.7EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

21.8    Sec. 40. Minnesota Statutes 2012, section 126C.12, subdivision 5, is amended to read:
21.9    Subd. 5. Additional revenue use. If the board of a district determines that the
21.10district has achieved and is maintaining the class sizes specified in subdivision 4, the board
21.11may use the revenue to reduce class size in grades 4, 5, and 6, provide all-day, everyday
21.12kindergarten, prepare and use individualized learning plans, improve program offerings,
21.13purchase instructional material, services, or technology, or provide staff development
21.14needed for reduced class sizes.
21.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015.

21.16    Sec. 41. Minnesota Statutes 2012, section 126C.126, is amended to read:
21.17126C.126 USE OF GENERAL EDUCATION REVENUE FOR ALL-DAY
21.18KINDERGARTEN AND PREKINDERGARTEN.
21.19     A school district may spend general education revenue on extended time
21.20kindergarten and prekindergarten programs. At the school board's discretion, the district
21.21may use revenue generated by the full-day kindergarten pupil count under section
21.22126C.05, subdivision 1, paragraph (d), to meet the needs of three- and four-year olds in
21.23the district. A school district may not use these funds on programs for three- and four-year
21.24old children while maintaining a fee-based full-day kindergarten program.
21.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
21.26and later.

21.27    Sec. 42. Minnesota Statutes 2012, section 126C.13, is amended by adding a
21.28subdivision to read:
21.29    Subd. 3a. General education rate. The commissioner must establish the general
21.30education rate by July 1 of each year for levies payable in the following year. The general
21.31education rate must be a rate, rounded up to the nearest hundredth of a percent, that, when
22.1applied to the adjusted net tax capacity for all districts, raises the amount specified in this
22.2subdivision. The general education rate must be the rate that raises $19,520,000 for fiscal
22.3year 2015; $26,219,000 for fiscal year 2016; and $30,004,000 for fiscal year 2017 and
22.4later years. The general education rate may not be changed due to changes or corrections
22.5made to a district's adjusted net tax capacity after the rate has been established.

22.6    Sec. 43. Minnesota Statutes 2012, section 126C.13, is amended by adding a
22.7subdivision to read:
22.8    Subd. 3b. General education levy. To obtain general education revenue, a district
22.9may levy an amount not to exceed the general education rate times the adjusted net tax
22.10capacity of the district for the preceding year. If the amount of the general education
22.11levy would exceed the general education revenue, the general education levy must be
22.12determined according to subdivision 3c.

22.13    Sec. 44. Minnesota Statutes 2012, section 126C.13, is amended by adding a
22.14subdivision to read:
22.15    Subd. 3c. General education levy; districts off the formula. (a) If the sum of the
22.16amount of the general education levy and equity levy for a district exceeds the district's
22.17general education revenue, the amount of the general education levy must be limited to
22.18the following:
22.19(1) the district's general education revenue; minus
22.20(2) payments made for the same school year according to section 126C.21,
22.21subdivision 3.
22.22    (b) A levy made according to this subdivision shall also be construed to be the levy
22.23made according to subdivision 3b.

22.24    Sec. 45. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
22.25    Subd. 4. General education aid. (a) For fiscal years 2007 2013 and later 2014 only,
22.26a district's general education aid is the sum of the following amounts:
22.27    (1) general education revenue, excluding equity revenue, total operating capital
22.28revenue, alternative teacher compensation revenue, and transition revenue;
22.29    (2) operating capital aid under section 126C.10, subdivision 13b;
22.30    (3) equity aid under section 126C.10, subdivision 30;
22.31    (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
22.32    (5) transition aid under section 126C.10, subdivision 33;
22.33    (6) shared time aid under section 126C.01, subdivision 7;
23.1    (7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
23.2    (8) online learning aid according to section 124D.096.
23.3(b) For fiscal year 2015 and later, a district's general education aid equals:
23.4(1) general education revenue, excluding equity revenue and transition revenue,
23.5minus the general education levy, multiplied times the ratio of the actual amount of general
23.6education levied to the permitted general education levy; plus
23.7(2) equity aid under section 126C.10, subdivision 30; plus
23.8(3) transition aid under section 126C.10, subdivision 33; plus
23.9(4) shared time aid under section 126C.10, subdivision 7; plus
23.10(5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
23.11(6) online learning aid under section 124D.096.

23.12    Sec. 46. Minnesota Statutes 2012, section 126C.13, subdivision 5, is amended to read:
23.13    Subd. 5. Uses of revenue. Except as provided in sections 126C.10, subdivision
23.14 subdivisions 14 and 39
; 126C.12; and 126C.15, general education revenue may be used
23.15during the regular school year and the summer for general and special school purposes.
23.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
23.17and later.

23.18    Sec. 47. Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:
23.19    Subdivision 1. Use of revenue. The basic skills revenue under section 126C.10,
23.20subdivision 4
, must be reserved and used to meet the educational needs of pupils who
23.21enroll under-prepared to learn and whose progress toward meeting state or local content
23.22or performance standards is below the level that is appropriate for learners of their age.
23.23Basic skills revenue may also be used for programs designed to prepare children and their
23.24families for kindergarten, provided such programming is cost-effective, research-based,
23.25and includes an evaluation component to measure, record, and publicly report its level of
23.26effectiveness. Any of the following may be provided to meet these learners' needs:
23.27(1) direct instructional services under the assurance of mastery program according
23.28to section 124D.66;
23.29(2) remedial instruction in reading, language arts, mathematics, other content areas,
23.30or study skills to improve the achievement level of these learners;
23.31(3) additional teachers and teacher aides to provide more individualized instruction
23.32to these learners through individual tutoring, lower instructor-to-learner ratios, or team
23.33teaching;
24.1(4) a longer school day or week during the regular school year or through a summer
24.2program that may be offered directly by the site or under a performance-based contract
24.3with a community-based organization;
24.4(5) comprehensive and ongoing staff development consistent with district and site
24.5plans according to section 122A.60, for teachers, teacher aides, principals, and other
24.6personnel to improve their ability to identify the needs of these learners and provide
24.7appropriate remediation, intervention, accommodations, or modifications;
24.8(6) instructional materials, digital learning, and technology appropriate for meeting
24.9the individual needs of these learners;
24.10(7) programs to reduce truancy, encourage completion of high school, enhance
24.11self-concept, provide health services, provide nutrition services, provide a safe and secure
24.12learning environment, provide coordination for pupils receiving services from other
24.13governmental agencies, provide psychological services to determine the level of social,
24.14emotional, cognitive, and intellectual development, and provide counseling services,
24.15guidance services, and social work services;
24.16(8) bilingual programs, bicultural programs, and programs for English learners;
24.17(9) all day kindergarten;
24.18(10) early education programs, parent-training programs, school readiness programs,
24.19kindergarten programs for four-year-olds, and other outreach efforts designed to prepare
24.20children for kindergarten;
24.21(11) extended school day and extended school year programs; and
24.22(11) (12) substantial parent involvement in developing and implementing remedial
24.23education or intervention plans for a learner, including learning contracts between the
24.24school, the learner, and the parent that establish achievement goals and responsibilities of
24.25the learner and the learner's parent or guardian.
24.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
24.27and later.

24.28    Sec. 48. Minnesota Statutes 2012, section 126C.17, is amended to read:
24.29126C.17 REFERENDUM REVENUE.
24.30    Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
24.31initial referendum revenue allowance equals the sum of the allowance under section
24.32126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
24.33unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
24.34plus the referendum conversion allowance approved under subdivision 13, minus $415.
25.1For districts with more than one referendum authority, the reduction must be computed
25.2separately for each authority. The reduction must be applied first to the referendum
25.3conversion allowance and next to the authority with the earliest expiration date. A
25.4district's initial referendum revenue allowance may not be less than zero.
25.5(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
25.6referendum allowance plus any additional allowance per resident marginal cost pupil unit
25.7authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
25.8fiscal year 2003 and later.
25.9(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals
25.10the sum of:
25.11(1) the product of (i) the ratio of the resident marginal cost pupil units the district
25.12would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
25.13to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
25.14referendum allowance plus any additional allowance per resident marginal cost pupil unit
25.15authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
25.16year 2003 and later, plus
25.17(2) any additional allowance per resident marginal cost pupil unit authorized under
25.18subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
25.19(a) A district's initial referendum allowance for fiscal year 2015 equals the result of
25.20the following calculations:
25.21(1) multiply the referendum allowance the district would have received for fiscal
25.22year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
25.23elections held before July 1, 2013, by the resident marginal cost pupil units the district
25.24would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
25.25(2) add to the result of clause (1) the adjustment the district would have received
25.26under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
25.27(c), based on elections held before July 1, 2013;
25.28(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
25.29year 2015; and
25.30(4) if the result of clause (3) is less than zero, set the allowance to zero.
25.31(b) A district's referendum allowance equals the sum of the district's initial
25.32referendum allowance for fiscal year 2015, plus any additional referendum allowance per
25.33adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in
25.34fiscal year 2016 or later.
25.35    Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal
25.36year 2007 2015 and later, a district's referendum allowance must not exceed the greater of:
26.1(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
26.2times the annual inflationary increase as calculated under paragraph (b) plus (ii) its
26.3referendum conversion allowance for fiscal year 2003, minus (iii) $215;
26.4(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
26.5annual inflationary increase as calculated under paragraph (b); or times the greatest of:
26.6(1) $1,845;
26.7(2) the sum of the referendum revenue the district would have received for fiscal
26.8year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on
26.9elections held before July 1, 2013, and the adjustment the district would have received
26.10under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
26.11(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil
26.12units for fiscal year 2015; or
26.13(3) the product of the referendum allowance limit the district would have received
26.14for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and
26.15the resident marginal cost pupil units the district would have received for fiscal year 2015
26.16under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the
26.17district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
26.187, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by
26.19the district's adjusted pupil units for fiscal year 2015; or
26.20(3) (4) for a newly reorganized district created after July 1, 2006 2013, the referendum
26.21revenue authority for each reorganizing district in the year preceding reorganization divided
26.22by its resident marginal cost adjusted pupil units for the year preceding reorganization.
26.23(b) For purposes of this subdivision, for fiscal year 2005 2016 and later, "inflationary
26.24increase" means one plus the percentage change in the Consumer Price Index for urban
26.25consumers, as prepared by the United States Bureau of Labor Standards, for the current
26.26fiscal year to fiscal year 2004 2015. For fiscal years 2009 year 2016 and later, for purposes
26.27of paragraph (a), clause (1) (3), the inflationary increase equals the inflationary increase
26.28for fiscal year 2008 plus one-fourth of the percentage increase in the formula allowance
26.29for that year compared with the formula allowance for fiscal year 2008 2015.
26.30    Subd. 3. Sparsity exception. A district that qualifies for sparsity revenue under
26.31section 126C.10 is not subject to a referendum allowance limit.
26.32    Subd. 4. Total referendum revenue. The total referendum revenue for each district
26.33equals the district's referendum allowance times the resident marginal cost adjusted pupil
26.34units for the school year.
27.1    Subd. 5. Referendum equalization revenue. (a) For fiscal year 2003 and later,
27.2 A district's referendum equalization revenue equals the sum of the first tier referendum
27.3equalization revenue and the second tier referendum equalization revenue.
27.4(b) A district's first tier referendum equalization revenue equals the district's first
27.5tier referendum equalization allowance times the district's resident marginal cost adjusted
27.6 pupil units for that year.
27.7(c) For fiscal year 2006, a district's first tier referendum equalization allowance
27.8equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
27.9fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
27.10of the district's referendum allowance under subdivision 1 or $600.
27.11For fiscal year 2008 and later, A district's first tier referendum equalization allowance
27.12equals the lesser of the district's referendum allowance under subdivision 1 or $700.
27.13(d) A district's second tier referendum equalization revenue equals the district's
27.14second tier referendum equalization allowance times the district's resident marginal cost
27.15 adjusted pupil units for that year.
27.16(e) For fiscal year 2006, a district's second tier referendum equalization allowance
27.17equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
27.18of the formula allowance, minus the district's first tier referendum equalization allowance.
27.19For fiscal year 2007 and later, A district's second tier referendum equalization allowance
27.20equals the lesser of the district's referendum allowance under subdivision 1 or 26 25 percent
27.21of the formula allowance, minus the district's first tier referendum equalization allowance.
27.22(f) Notwithstanding paragraph (e), the second tier referendum allowance for a
27.23district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
27.24elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
27.25referendum allowance under subdivision 1 minus the district's first tier referendum
27.26equalization allowance.
27.27    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
27.28a district's referendum equalization levy equals the sum of the first tier referendum
27.29equalization levy and the second tier referendum equalization levy.
27.30(b) A district's first tier referendum equalization levy equals the district's first tier
27.31referendum equalization revenue times the lesser of one or the ratio of the district's
27.32referendum market value per resident marginal cost pupil unit to $476,000 $538,200.
27.33(c) A district's second tier referendum equalization levy equals the district's second
27.34tier referendum equalization revenue times the lesser of one or the ratio of the district's
27.35referendum market value per resident marginal cost pupil unit to $270,000 $259,415.
28.1    Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid
28.2equals the difference between its referendum equalization revenue and levy.
28.3(b) If a district's actual levy for first or second tier referendum equalization revenue
28.4is less than its maximum levy limit for that tier, aid shall be proportionately reduced.
28.5(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
28.6where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
28.7referendum revenue, must not exceed 26 25 percent of the formula allowance times the
28.8district's resident marginal cost adjusted pupil units. A district's referendum levy is
28.9increased by the amount of any reduction in referendum aid under this paragraph.
28.10    Subd. 7a. Referendum tax base replacement aid. For each school district that
28.11had a referendum allowance for fiscal year 2002 exceeding $415, for each separately
28.12authorized referendum levy, the commissioner of revenue, in consultation with the
28.13commissioner of education, shall certify the amount of the referendum levy in taxes
28.14payable year 2001 attributable to the portion of the referendum allowance exceeding $415
28.15levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section
28.16273.13 , excluding the portion of the tax paid by the portion of class 2a property consisting
28.17of the house, garage, and surrounding one acre of land. The resulting amount must be
28.18used to reduce the district's referendum levy amount otherwise determined, and must be
28.19paid to the district each year that the referendum authority remains in effect, is renewed,
28.20or new referendum authority is approved. The aid payable under this subdivision must
28.21be subtracted from the district's referendum equalization aid under subdivision 7. The
28.22referendum equalization aid after the subtraction must not be less than zero.
28.23    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, a
28.24district's referendum equalization aid for fiscal year 2015 must not be less than the sum
28.25of the referendum equalization aid the district would have received for fiscal year 2015
28.26under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the
28.27district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
28.287, paragraphs (a), (b), and (c).
28.29(b) Notwithstanding subdivision 7, a district's referendum equalization aid for fiscal
28.30year 2016 and later must not be less than the product of (1) the district's referendum
28.31equalization aid for fiscal year 2015, times (2) the lesser of one or the ratio of the district's
28.32referendum revenue for that school year to the district's referendum revenue for fiscal year
28.332015, times (3) the lesser of one or the ratio of the district's referendum market value used
28.34for fiscal year 2015 referendum equalization calculations to the district's referendum
28.35market value used for that year's referendum equalization calculations.
29.1    Subd. 8. Unequalized referendum levy. Each year, a district may levy an amount
29.2equal to the difference between its total referendum revenue according to subdivision 4
29.3and its referendum equalization revenue according to subdivision 5.
29.4    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
29.5subdivision 1
, may be increased in the amount approved by the voters of the district
29.6at a referendum called for the purpose. The referendum may be called by the board.
29.7The referendum must be conducted one or two calendar years before the increased levy
29.8authority, if approved, first becomes payable. Only one election to approve an increase
29.9may be held in a calendar year. Unless the referendum is conducted by mail under
29.10subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
29.11first Monday in November. The ballot must state the maximum amount of the increased
29.12revenue per resident marginal cost adjusted pupil unit. The ballot may state a schedule,
29.13determined by the board, of increased revenue per resident marginal cost adjusted pupil
29.14unit that differs from year to year over the number of years for which the increased revenue
29.15is authorized or may state that the amount shall increase annually by the rate of inflation.
29.16For this purpose, the rate of inflation shall be the annual inflationary increase calculated
29.17under subdivision 2, paragraph (b). The ballot may state that existing referendum levy
29.18authority is expiring. In this case, the ballot may also compare the proposed levy authority
29.19to the existing expiring levy authority, and express the proposed increase as the amount, if
29.20any, over the expiring referendum levy authority. The ballot must designate the specific
29.21number of years, not to exceed ten, for which the referendum authorization applies. The
29.22ballot, including a ballot on the question to revoke or reduce the increased revenue amount
29.23under paragraph (c), must abbreviate the term "per resident marginal cost adjusted pupil
29.24unit" as "per pupil." The notice required under section 275.60 may be modified to read, in
29.25cases of renewing existing levies at the same amount per pupil as in the previous year:
29.26"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
29.27TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
29.28SCHEDULED TO EXPIRE."
29.29    The ballot may contain a textual portion with the information required in this
29.30subdivision and a question stating substantially the following:
29.31    "Shall the increase in the revenue proposed by (petition to) the board of .........,
29.32School District No. .., be approved?"
29.33    If approved, an amount equal to the approved revenue per resident marginal cost
29.34 adjusted pupil unit times the resident marginal cost adjusted pupil units for the school
29.35year beginning in the year after the levy is certified shall be authorized for certification
30.1for the number of years approved, if applicable, or until revoked or reduced by the voters
30.2of the district at a subsequent referendum.
30.3    (b) The board must prepare and deliver by first class mail at least 15 days but no more
30.4than 30 days before the day of the referendum to each taxpayer a notice of the referendum
30.5and the proposed revenue increase. The board need not mail more than one notice to any
30.6taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
30.7those shown to be owners on the records of the county auditor or, in any county where
30.8tax statements are mailed by the county treasurer, on the records of the county treasurer.
30.9Every property owner whose name does not appear on the records of the county auditor
30.10or the county treasurer is deemed to have waived this mailed notice unless the owner
30.11has requested in writing that the county auditor or county treasurer, as the case may be,
30.12include the name on the records for this purpose. The notice must project the anticipated
30.13amount of tax increase in annual dollars for typical residential homesteads, agricultural
30.14homesteads, apartments, and commercial-industrial property within the school district.
30.15    The notice for a referendum may state that an existing referendum levy is expiring
30.16and project the anticipated amount of increase over the existing referendum levy in
30.17the first year, if any, in annual dollars for typical residential homesteads, agricultural
30.18homesteads, apartments, and commercial-industrial property within the district.
30.19    The notice must include the following statement: "Passage of this referendum will
30.20result in an increase in your property taxes." However, in cases of renewing existing levies,
30.21the notice may include the following statement: "Passage of this referendum extends an
30.22existing operating referendum at the same amount per pupil as in the previous year."
30.23    (c) A referendum on the question of revoking or reducing the increased revenue
30.24amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
30.25revoke or reduce the revenue amount must state the amount per resident marginal cost
30.26pupil unit by which the authority is to be reduced. Revenue authority approved by the
30.27voters of the district pursuant to paragraph (a) must be available to the school district at
30.28least once before it is subject to a referendum on its revocation or reduction for subsequent
30.29years. Only one revocation or reduction referendum may be held to revoke or reduce
30.30referendum revenue for any specific year and for years thereafter.
30.31    (d) The approval of 50 percent plus one of those voting on the question is required to
30.32pass a referendum authorized by this subdivision.
30.33    (e) At least 15 days before the day of the referendum, the district must submit a
30.34copy of the notice required under paragraph (b) to the commissioner and to the county
30.35auditor of each county in which the district is located. Within 15 days after the results
30.36of the referendum have been certified by the board, or in the case of a recount, the
31.1certification of the results of the recount by the canvassing board, the district must notify
31.2the commissioner of the results of the referendum.
31.3    Subd. 9a. Board-approved extension. (a) Notwithstanding subdivision 9, a school
31.4district with any of its area located within the seven-county metropolitan area that, in one
31.5or more elections, has approved a referendum allowance of at least $400 for at least ten
31.6years, may reauthorize any expiring referendum authority equal to a total of $400 or less
31.7by a board vote. The board may reauthorize this authority for up to five years and may
31.8subsequently reauthorize that authority in increments of five years.
31.9(b) Notwithstanding subdivision 9, a school district with any of its area located
31.10within the seven-county metropolitan area that, in one or more elections, has approved
31.11a referendum allowance of less than $400 for at least ten years, may reauthorize the
31.12value of any expiring referendum authority by a board vote. The board may reauthorize
31.13this authority for up to five years and may subsequently reauthorize that authority in
31.14increments of five years.
31.15(c) Notwithstanding subdivision 9, a school district with none of its area located
31.16within the seven-county metropolitan area with more than 2,000 pupils in adjusted average
31.17daily membership that, in one or more elections, has approved a referendum allowance of
31.18at least $200 for at least ten years, may reauthorize any expiring referendum authority equal
31.19to a total of $200 or less by a board vote. The board may reauthorize this authority for up
31.20to five years and may subsequently reauthorize that authority in increments of five years.
31.21(d) Notwithstanding subdivision 9, a school district with none of its area located
31.22within the seven-county metropolitan area with more than 2,000 pupils in adjusted average
31.23daily membership that, in one or more elections, has approved a referendum allowance of
31.24less than $200 for at least ten years, may reauthorize the value of any expiring referendum
31.25authority by a board vote. The board may reauthorize this authority for up to five years
31.26and may subsequently reauthorize that authority in increments of five years.
31.27    Subd. 10. School referendum levy; market value. A school referendum levy must
31.28be levied against the referendum market value of all taxable property as defined in section
31.29126C.01, subdivision 3 . Any referendum levy amount subject to the requirements of this
31.30subdivision must be certified separately to the county auditor under section 275.07.
31.31    Subd. 11. Referendum date. (a) Except for a referendum held under paragraph (b),
31.32any referendum under this section held on a day other than the first Tuesday after the first
31.33Monday in November must be conducted by mail in accordance with section 204B.46.
31.34Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum
31.35conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b),
31.36must be prepared and delivered by first-class mail at least 20 days before the referendum.
32.1(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner
32.2may grant authority to a district to hold a referendum on a different day if the district is in
32.3statutory operating debt and has an approved plan or has received an extension from the
32.4department to file a plan to eliminate the statutory operating debt.
32.5(c) The commissioner must approve, deny, or modify each district's request for a
32.6referendum levy on a different day within 60 days of receiving the request from a district.
32.7    Subd. 13. Referendum conversion allowance. A school district that received
32.8supplemental or transition revenue in fiscal year 2002 may convert its supplemental
32.9revenue conversion allowance and transition revenue conversion allowance to additional
32.10referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority
32.11of the school board must approve the conversion at a public meeting before November 1,
32.122001. For a district with other referendum authority, the referendum conversion allowance
32.13approved by the board continues until the portion of the district's other referendum
32.14authority with the earliest expiration date after June 30, 2006, expires. For a district
32.15with no other referendum authority, the referendum conversion allowance approved by
32.16the board continues until June 30, 2012.
32.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
32.18and later.

32.19    Sec. 49. [126C.195] COMPENSATORY SUPPLEMENTAL FORMULA AID.
32.20A district that has a pupil unit count that is in the top 20 largest pupil unit counts
32.21is eligible for the greater of zero or $1,400 times the sum of the district's pupils eligible
32.22for free lunch and one-half of the district's pupils who are eligible for reduced lunch,
32.23minus the amount of compensatory education revenue received by the district under
32.24section 126C.10, subdivision 3, times .35.

32.25    Sec. 50. Minnesota Statutes 2012, section 126C.20, is amended to read:
32.26126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
32.27There is annually appropriated from the general fund to the department the
32.28amount necessary for general education aid under section 126C.13, the early graduation
32.29achievement scholarship program under section 120B.08, and the early graduation
32.30military service award program under section 120B.09. This amount must be reduced by
32.31the amount of any money specifically appropriated for the same purpose in any year
32.32from any state fund.
33.1EFFECTIVE DATE.This section is effective for revenue in fiscal year 2014 and
33.2later.

33.3    Sec. 51. Minnesota Statutes 2012, section 126C.40, subdivision 1, is amended to read:
33.4    Subdivision 1. To lease building or land. (a) When an independent or a special
33.5school district or a group of independent or special school districts finds it economically
33.6advantageous to rent or lease a building or land for any instructional purposes or for
33.7school storage or furniture repair, and it determines that the operating capital revenue
33.8authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
33.9apply to the commissioner for permission to make an additional capital expenditure levy
33.10for this purpose. An application for permission to levy under this subdivision must contain
33.11financial justification for the proposed levy, the terms and conditions of the proposed
33.12lease, and a description of the space to be leased and its proposed use.
33.13    (b) The criteria for approval of applications to levy under this subdivision must
33.14include: the reasonableness of the price, the appropriateness of the space to the proposed
33.15activity, the feasibility of transporting pupils to the leased building or land, conformity
33.16of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
33.17the proposed lease to the space needs and the financial condition of the district. The
33.18commissioner must not authorize a levy under this subdivision in an amount greater than
33.19the cost to the district of renting or leasing a building or land for approved purposes.
33.20The proceeds of this levy must not be used for custodial or other maintenance services.
33.21A district may not levy under this subdivision for the purpose of leasing or renting a
33.22district-owned building or site to itself.
33.23    (c) For agreements finalized after July 1, 1997, a district may not levy under this
33.24subdivision for the purpose of leasing: (1) a newly constructed building used primarily
33.25for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
33.26building addition or additions used primarily for regular kindergarten, elementary, or
33.27secondary instruction that contains more than 20 percent of the square footage of the
33.28previously existing building.
33.29    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
33.30purpose of leasing or renting a district-owned building or site to itself only if the amount
33.31is needed by the district to make payments required by a lease purchase agreement,
33.32installment purchase agreement, or other deferred payments agreement authorized by law,
33.33and the levy meets the requirements of paragraph (c). A levy authorized for a district by
33.34the commissioner under this paragraph may be in the amount needed by the district to
33.35make payments required by a lease purchase agreement, installment purchase agreement,
34.1or other deferred payments agreement authorized by law, provided that any agreement
34.2include a provision giving the school districts the right to terminate the agreement
34.3annually without penalty.
34.4    (e) The total levy under this subdivision for a district for any year must not exceed
34.5$150 $162 times the resident adjusted pupil units for the fiscal year to which the levy
34.6is attributable.
34.7    (f) For agreements for which a review and comment have been submitted to the
34.8Department of Education after April 1, 1998, the term "instructional purpose" as used in
34.9this subdivision excludes expenditures on stadiums.
34.10    (g) The commissioner of education may authorize a school district to exceed the
34.11limit in paragraph (e) if the school district petitions the commissioner for approval. The
34.12commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
34.13for not more than five years if the district meets the following criteria:
34.14    (1) the school district has been experiencing pupil enrollment growth in the
34.15preceding five years;
34.16    (2) the purpose of the increased levy is in the long-term public interest;
34.17    (3) the purpose of the increased levy promotes colocation of government services; and
34.18    (4) the purpose of the increased levy is in the long-term interest of the district by
34.19avoiding over construction of school facilities.
34.20    (h) A school district that is a member of an intermediate school district may include
34.21in its authority under this section the costs associated with leases of administrative and
34.22classroom space for intermediate school district programs. This authority must not
34.23exceed $43 $46 times the adjusted marginal cost pupil units of the member districts. This
34.24authority is in addition to any other authority authorized under this section.
34.25    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
34.262012 to 2023, a district that is a member of the "Technology and Information Education
34.27Systems" data processing joint board, that finds it economically advantageous to enter into
34.28a lease agreement to finance improvements to a building and land for a group of school
34.29districts or special school districts for staff development purposes, may levy for its portion
34.30of lease costs attributed to the district within the total levy limit in paragraph (e). The total
34.31levy authority under this paragraph shall not exceed $632,000.
34.32(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
34.33purpose of leasing administrative space if the district can demonstrate to the satisfaction of
34.34the commissioner that the lease cost for the administrative space is no greater than the
34.35lease cost for instructional space that the district would otherwise lease. The commissioner
34.36must deny this levy authority unless the district passes a resolution stating its intent to
35.1lease instructional space under this section if the commissioner does not grant authority
35.2under this paragraph. The resolution must also certify that the lease cost for administrative
35.3space under this paragraph is no greater than the lease cost for the district's proposed
35.4instructional lease.
35.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
35.6and later.

35.7    Sec. 52. Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:
35.8    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
35.9by, the commissioner in accordance with the procedures and limits in subdivision 1,
35.10paragraphs (a) and (b), a district, as defined in this subdivision, may:
35.11(1) purchase real or personal property under an installment contract or may lease
35.12real or personal property with an option to purchase under a lease purchase agreement, by
35.13which installment contract or lease purchase agreement title is kept by the seller or vendor
35.14or assigned to a third party as security for the purchase price, including interest, if any; and
35.15(2) annually levy the amounts necessary to pay the district's obligations under the
35.16installment contract or lease purchase agreement.
35.17(b) The obligation created by the installment contract or the lease purchase
35.18agreement must not be included in the calculation of net debt for purposes of section
35.19475.53 , and does not constitute debt under other law. An election is not required in
35.20connection with the execution of the installment contract or the lease purchase agreement.
35.21(c) The proceeds of the levy authorized by this subdivision must not be used to
35.22acquire a facility to be primarily used for athletic or school administration purposes.
35.23(d) For the purposes of this subdivision, "district" means:
35.24(1) a school district which is eligible for revenue under section 124D.86, subdivision
35.253
, clause (1), (2), or (3), and whose Special School District No. 1, Minneapolis,
35.26Independent School District No. 625, St. Paul, Independent School District No. 709,
35.27Duluth, or Independent School District No. 535, Rochester, if the district's desegregation
35.28 plan has been determined by the commissioner to be in compliance with Department of
35.29Education rules relating to equality of educational opportunity and school desegregation
35.30and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4)
35.31or (5), where the acquisition of property under this subdivision is determined by the
35.32commissioner to contribute to the implementation of the desegregation plan; or
35.33(2) a school district that participates in a joint program for interdistrict desegregation
35.34with a district defined in clause (1) other districts eligible for revenue under section
35.35124D.862 if the facility acquired under this subdivision is to be primarily used for the a
36.1 joint program for interdistrict desegregation and the commissioner determines that the
36.2joint programs are being undertaken to implement the districts' desegregation plan.
36.3(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
36.4or rent a district-owned building to itself does not apply to levies otherwise authorized
36.5by this subdivision.
36.6(f) For the purposes of this subdivision, any references in subdivision 1 to building
36.7or land shall include personal property.

36.8    Sec. 53. Minnesota Statutes 2012, section 126C.44, is amended to read:
36.9126C.44 SAFE SCHOOLS SUPPLEMENTAL LEVY; INTERMEDIATE
36.10SCHOOL DISTRICTS.
36.11    (a) Each district may make a levy on all taxable property located within the district
36.12for the purposes specified in this section. The maximum amount which may be levied
36.13for all costs under this section shall be equal to $30 multiplied by the district's adjusted
36.14marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
36.15used for directly funding the following purposes or for reimbursing the cities and counties
36.16who contract with the district for the following purposes: (1) to pay the costs incurred for
36.17the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
36.18services in the district's schools; (2) to pay the costs for a drug abuse prevention program
36.19as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
36.20(3) to pay the costs for a gang resistance education training curriculum in the district's
36.21schools; (4) to pay the costs for security in the district's schools and on school property; (5)
36.22to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
36.23opt-in suicide prevention tools, and violence prevention measures taken by the school
36.24district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
36.25school social workers, licensed school psychologists, and licensed alcohol and chemical
36.26dependency counselors to help provide early responses to problems. For expenditures
36.27under clause (1), the district must initially attempt to contract for services to be provided
36.28by peace officers or sheriffs with the police department of each city or the sheriff's
36.29department of the county within the district containing the school receiving the services. If
36.30a local police department or a county sheriff's department does not wish to provide the
36.31necessary services, the district may contract for these services with any other police or
36.32sheriff's department located entirely or partially within the school district's boundaries.
36.33    (b) A school district that is a member of an intermediate school district may include
36.34in its authority under this section make a levy on all taxable property located within the
36.35district for the costs associated with safe schools activities authorized under paragraph
37.1(a) for intermediate school district programs section 126C.10, subdivision 2g, at an
37.2intermediate school district. This authority must not exceed $10 $11 times the adjusted
37.3marginal cost pupil units of the member districts. This authority is in addition to any other
37.4authority authorized under this section. Revenue raised under this paragraph section must
37.5be transferred to the intermediate school district.

37.6    Sec. 54. Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:
37.7    Subd. 7. Alternative attendance programs. (a) The general education aid and
37.8special education aid for districts must be adjusted for each pupil attending a nonresident
37.9district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
37.10adjustments must be made according to this subdivision.
37.11    (a) General education aid paid to a resident district must be reduced by an amount
37.12equal to the referendum equalization aid attributable to the pupil in the resident district.
37.13    (b) General education aid paid to a district serving a pupil in programs listed in this
37.14subdivision must be increased by an amount equal to the greater of (1) the referendum
37.15equalization aid attributable to the pupil in the nonresident district; or (2) the product of
37.16the district's open enrollment concentration index, the maximum amount of referendum
37.17revenue in the first tier, and the district's net open enrollment pupil units for that year. A
37.18district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
37.19lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
37.20served to its resident pupil units for that year and 0.2. This clause does not apply to a
37.21school district where more than 50 percent of the open enrollment students are enrolled
37.22solely in online learning courses.
37.23    (c) If the amount of the reduction to be made from the general education aid of the
37.24resident district is greater than the amount of general education aid otherwise due the
37.25district, the excess reduction must be made from other state aids due the district.
37.26    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
37.27area learning center, operated according to paragraph (f), providing special instruction and
37.28services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
37.29section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
37.30be equal to (1) the actual cost of providing special instruction and services to the pupil,
37.31including a proportionate amount for special transportation and unreimbursed building
37.32lease and debt service costs for facilities used primarily for special education, minus (2)
37.33if the pupil receives special instruction and services outside the regular classroom for
37.34more than 60 percent of the school day, the amount of general education revenue and
37.35referendum aid attributable to that pupil for the portion of time the pupil receives special
38.1instruction and services outside of the regular classroom, excluding portions attributable to
38.2district and school administration, district support services, operations and maintenance,
38.3capital expenditures, and pupil transportation, minus (3) special education aid attributable
38.4to that pupil, that is received by the district providing special instruction and services.
38.5For purposes of this paragraph, general education revenue and referendum equalization
38.6aid attributable to a pupil must be calculated using the serving district's average general
38.7education revenue and referendum equalization aid per adjusted pupil unit.
38.8    (e) For fiscal year 2007 and later, special education aid paid to a resident district must
38.9be reduced by an amount equal to (b) For purposes of this subdivision, the "unreimbursed
38.10cost of providing special education and services" means the difference between: (1) the
38.11actual cost of providing special instruction and services, including special transportation
38.12and unreimbursed building lease and debt service costs for facilities used primarily for
38.13special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as
38.14defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus
38.15(2) if the pupil receives special instruction and services outside the regular classroom for
38.16more than 60 percent of the school day, the amount of general education revenue and
38.17referendum equalization aid attributable to that pupil for the portion of time the pupil
38.18receives special instruction and services outside of the regular classroom, excluding
38.19portions attributable to district and school administration, district support services,
38.20operations and maintenance, capital expenditures, and pupil transportation, minus (3)
38.21special education aid under section 125A.76 attributable to that pupil, that is received by
38.22the district providing special instruction and services. For purposes of this paragraph,
38.23general education revenue and referendum equalization aid attributable to a pupil must be
38.24calculated using the serving district's average general education revenue and referendum
38.25equalization aid per adjusted pupil unit.
38.26(c) For fiscal year 2015 and later, special education aid paid to a resident district
38.27must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
38.28special education and services.
38.29(d) Notwithstanding paragraph (c), special education aid paid to a resident district
38.30must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
38.31education and services provided to students at an intermediate district, cooperative, or
38.32charter school where the percent of students eligible for special education services is at
38.33least 70 percent of the charter school's total enrollment.
38.34    (e) Special education aid paid to the district or cooperative providing special
38.35instruction and services for the pupil, or to the fiscal agent district for a cooperative,
38.36must be increased by the amount of the reduction in the aid paid to the resident district
39.1 under paragraphs (c) and (d). If the resident district's special education aid is insufficient
39.2to make the full adjustment, the remaining adjustment shall be made to other state aids
39.3due to the district.
39.4    (f) An area learning center operated by a service cooperative, intermediate district,
39.5education district, or a joint powers cooperative may elect through the action of the
39.6constituent boards to charge the resident district tuition for pupils rather than to have the
39.7general education revenue paid to a fiscal agent school district. Except as provided in
39.8paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
39.9of the district average general education revenue per pupil unit minus an amount equal
39.10to the product of the formula allowance according to section 126C.10, subdivision 2,
39.11times .0485 .0465, calculated without compensatory revenue and transportation sparsity
39.12revenue, times the number of pupil units for pupils attending the area learning center.
39.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
39.14and later.

39.15    Sec. 55. Minnesota Statutes 2012, section 127A.47, subdivision 8, is amended to read:
39.16    Subd. 8. Charter schools. (a) The general education aid for districts must be
39.17adjusted for each pupil attending a charter school under section 124D.10. The adjustments
39.18must be made according to this subdivision.
39.19(b) General education aid paid to a district in which a charter school not providing
39.20transportation according to section 124D.10, subdivision 16, is located must be increased
39.21by an amount equal to the sum of:
39.22(1) the product of: (i) the sum of an amount equal to the product of the formula
39.23allowance according to section 126C.10, subdivision 2, times .0485 .0465, plus the
39.24transportation sparsity allowance for the district; times (ii) the adjusted marginal cost
39.25 pupil units attributable to the pupil; plus
39.26(2) the product of $223 and the extended time marginal cost pupil units attributable
39.27to the pupil.
39.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
39.29and later.

39.30    Sec. 56. Minnesota Statutes 2012, section 127A.51, is amended to read:
39.31127A.51 STATEWIDE AVERAGE REVENUE.
39.32By October 1 of each year the commissioner must estimate the statewide average
39.33adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted
40.1general revenue among pupils and districts by computing the ratio of the 95th percentile
40.2to the fifth percentile of adjusted general revenue. The commissioner must provide that
40.3information to all districts.
40.4If the disparity in adjusted general revenue as measured by the ratio of the 95th
40.5percentile to the fifth percentile increases in any year, the commissioner shall recommend
40.6to the legislature options for change in the general education formula that will limit the
40.7disparity in adjusted general revenue to no more than the disparity for the previous
40.8school year. The commissioner must submit the recommended options to the education
40.9committees of the legislature by January 15.
40.10For purposes of this section and section 126C.10, adjusted general revenue means:
40.11(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision
40.122
; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue
40.13under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and
40.14equity revenue under section 126C.10, subdivisions 24a and 24b; and
40.15(2) for fiscal year 2003 and later, the sum of basic revenue under section 126C.10,
40.16subdivision 2
; referendum revenue under section 126C.17; and equity revenue under
40.17section 126C.10, subdivisions 24a and 24b subdivision 24.
40.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
40.19and later.

40.20    Sec. 57. Minnesota Statutes 2012, section 128D.11, subdivision 3, is amended to read:
40.21    Subd. 3. No election. Subject to the provisions of subdivisions 7 to 10, the school
40.22district may also by a two-thirds majority vote of all the members of its board of education
40.23and without any election by the voters of the district, issue and sell in each calendar year
40.24general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the
40.25net tax capacity of the taxable property in the district (plus, for calendar years 1990 to
40.262003, an amount not to exceed $7,500,000, and for calendar years 2004 to 2016 2021,
40.27an amount not to exceed $15,000,000; with an additional provision that any amount of
40.28bonds so authorized for sale in a specific year and not sold can be carried forward and
40.29sold in the year immediately following).
40.30EFFECTIVE DATE.This section is effective July 1, 2013.

40.31    Sec. 58. Laws 2007, chapter 146, article 4, section 12, is amended to read:
40.32    Sec. 12. BONDING AUTHORIZATION.
41.1    To provide funds for the acquisition or betterment of school facilities, Independent
41.2School District No. 625, St. Paul, may by two-thirds majority vote of all the members of
41.3the board of directors issue general obligation bonds in one or more series for calendar
41.4years 2008 through 2016 to 2021, as provided in this section. The aggregate principal
41.5amount of any bonds issued under this section for each calendar year must not exceed
41.6$15,000,000. Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or
41.7475.59 . The bonds must otherwise be issued as provided in Minnesota Statutes, chapter
41.8475. The authority to issue bonds under this section is in addition to any bonding authority
41.9authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
41.10authority authorized under this section must be disregarded in calculating the bonding
41.11limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
41.12section 475.53, subdivision 4.
41.13EFFECTIVE DATE.This section is effective July 1, 2013.

41.14    Sec. 59. SCHOOL DISTRICT LEVY ADJUSTMENTS.
41.15    Subdivision 1. Tax rate adjustment. The commissioner of education must adjust
41.16each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
41.17by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
41.182012 as it existed prior to the passage of Regular Session 2013 House File No. 677, or
41.19a similarly styled bill passed in a special session, to the statewide total tax capacity for
41.20assessment year 2012.
41.21    Subd. 2. Equalizing factors. The commissioner of education must adjust each
41.22school district equalizing factor established under Minnesota Statutes, chapters 120B to
41.23127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
41.24assessment year 2012 as it existed prior to the passage of Regular Session 2013 House
41.25File No. 677, or a similarly styled bill passed in a special session, to the statewide total tax
41.26capacity for assessment year 2012.

41.27    Sec. 60. APPROPRIATIONS.
41.28    Subdivision 1. Department of Education. The sums indicated in this section are
41.29appropriated from the general fund to the Department of Education for the fiscal years
41.30designated.
41.31    Subd. 2. General education aid. For general education aid under Minnesota
41.32Statutes, section 126C.13, subdivision 4:
42.1
$
...,...,000
.....
2014
42.2
$
...,...,000
.....
2015
42.3The 2014 appropriation includes $...,...,000 for 2013 and $...,...,000 for 2014.
42.4The 2015 appropriation includes $...,...,000 for 2014 and $...,...,000 for 2015.
42.5$...,000 in fiscal year 2014 is for grants to school districts to participate in the teacher
42.6development and evaluation pilot grant program.
42.7    Subd. 3. Enrollment options transportation. For transportation of pupils attending
42.8postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
42.9of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
42.10
$
...,000
.....
2014
42.11
$
...,000
.....
2015
42.12    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
42.13127A.49:
42.14
$
...,000
.....
2014
42.15
$
...,000
.....
2015
42.16The 2014 appropriation includes $...,000 for 2013 and $...,000 for 2014.
42.17The 2015 appropriation includes $...,000 for 2014 and $...,000 for 2015.
42.18    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
42.19Statutes, section 123A.485:
42.20
$
...,000
.....
2014
42.21
$
...,000
.....
2015
42.22The 2014 appropriation includes $...,000 for 2013 and $...,000 for 2014.
42.23The 2015 appropriation includes $...,000 for 2014 and $...,000 for 2015.
42.24    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
42.25Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
42.26
$
...,...,000
.....
2014
42.27
$
...,...,000
.....
2015
42.28The 2014 appropriation includes $...,000 for 2013 and $...,000 for 2014.
42.29The 2015 appropriation includes $...,000 for 2014 and $...,000 for 2015.
42.30    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
42.31under Minnesota Statutes, section 123B.92, subdivision 9:
42.32
$
...,000
.....
2014
42.33
$
...,000
.....
2015
43.1The 2014 appropriation includes $...,000 for 2013 and $...,000 for 2014.
43.2The 2015 appropriation includes $...,000 for 2014 and $...,000 for 2015.
43.3    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
43.4690, Warroad, to operate the Angle Inlet School:
43.5
$
...,000
.....
2014
43.6
$
...,000
.....
2015
43.7    Subd. 9. Compensatory supplemental formula aid. For grants for compensatory
43.8pilot project formula aid as calculated under Minnesota Statutes, section 126C.195:
43.9
$
.......
.....
2014
43.10
$
.......
.....
2015
43.11The 2014 appropriation includes $...,000 for 2013 and $...,000 for 2014.
43.12The 2015 appropriation includes $...,000 for 2014 and $...,000 for 2015.
43.13    Subd. 10. Compensatory revenue pilot program. For grants for participation in
43.14the compensatory revenue pilot program under Laws 2005, First Special Session chapter
43.155, article 1, section 50:
43.16
$
...,000
.....
2014
43.17
$
...,000
.....
2015
43.18Of this amount, $...,000 each year is for a grant to Independent School District No.
43.1911, Anoka-Hennepin; $...,000 each year is for a grant to Independent School District No.
43.20286, Brooklyn Center; $...,000 each year is for a grant to Independent School District
43.21No. 279, Osseo; $...,000 each year is for a grant to Independent School District No.
43.22281, Robbinsdale; $...,000 each year is for a grant to Independent School District No.
43.23535, Rochester; $...,000 each year is for a grant to Independent School District No. 833,
43.24South Washington; and $...,000 each year is for a grant to Independent School District
43.25No. 241, Albert Lea.
43.26If a grant to a specific school district is not awarded, the commissioner may increase
43.27the aid amounts to any of the remaining participating school districts.
43.28This appropriation is part of the base budget for subsequent fiscal years.

43.29    Sec. 61. REPEALER.
43.30(a) Minnesota Statutes 2012, sections 120B.08; and 120B.09, are repealed for fiscal
43.31year 2014 and later.
44.1(b) Minnesota Statutes 2012, sections 126C.10, subdivisions 13a, 13b, 25, 26, 28,
44.231a, 31b, 31c, 34, 35, and 36; 126C.17, subdivision 13; and 127A.50, subdivisions 1 and
44.35, are repealed for fiscal year 2015 and later.