Laserfiche WebLink
<br />Legislative Change from Page 5 <br /> <br />Permanent Funding for Schools <br />. Marginal Cost Pupil Units. The calculation of marginal <br />cost pupil units was changed to the greater of (a) 100 <br />percent of the current year's pupil units or (b) 77 percent of <br />the current year's pupil units plus 23 percent of the prior <br />year's pupil units. The change provides additional help to <br />districts with declining enrollment while removing the <br />current reduction for growing districts. <br />. lncrease in basic revenue. Beginning in FY 2001 the <br />general education formula allowance is increased from <br />$3,925 to $3,964 per adjusted marginal cost pupil unit. The <br />additional revenue must be reserved for staff development. <br />. Special education aid growth factor. The growth factor <br />used to calculate the state total special education-regular <br />revenue is increase from 1.012 to 1.08 for FY 2002 and to <br />1.046 for FY 2003 and later. <br />. Operating capital revenue. Beginning in FY 2001, districts <br />will receive additional operating capital revenue equal to $5 <br />per pupil unit. For FY 2000 and FY 2001, the additional <br />revenue must be reserved for telecommunications access <br />costs. <br />. Telecommunications access revenue. Districts will receive <br />a new categorical aid to fund telecommunications access. <br />The aid for FY 2000 and FY 2001 will be based on the net <br />eligible cost after reductions for e-rate revenue and the <br />additional operating capital revenue ($5 per pupil unit). <br /> <br />Other School Legislation <br />. Capital Loan Districts - Bond Sale Limitations. Previous <br />law prohibited districts with existing capital loans from <br />issuing any bonds more than 20 years after they have <br />received their capital loan; this has now been extended to <br />30 years. <br />. Maximum Effort Capital Loans. Five districts received <br />new capital loans to finance their building programs. <br />However, the Department of CFL was directed to study <br />other means of financing facilities, without capital loans, <br />and was prohibited from accepting new loans until after the <br />2001 legislative session. <br /> <br />. Education Agricultural Credit. The Legislature increased <br />the education agricultural credit from 54 percent to 70 <br />percent for agricultural homestead property up to $600,000 in <br />market value and from 50 percent to 63 percent for other <br />agricultural property or timberland. <br /> <br /> <br /> <br />Resu Its of <br />Bond Sales <br /> <br />This edition of The Ehlers <br />Advisor does not contain the <br />results of recent bond sales in Minnesota. We encourage you to <br />visit our website for bond sale information. <br /> <br />Ehlers website contains two types of bond sale data. We <br />maintain an annual summary of Minnesota bond issues. We <br />also post the results of bond sales conducted by Ehlers. These <br />two sources of information let you follow trends in the bond <br />market. <br /> <br />, <br /> <br />Ehlers & Associates is committed to helping local governments <br />better understand the issues that shape public finance. <br /> <br /> <br />Roseville (MN) Office <br />3060 Centre Pointe Drive, Roseville, MN 55113-1105 <br />651.697.8500 <br /> <br />Brookfield (WI) Office <br />375 Bishops Way, Suite 225, Brookfield, WI 53005-6202 <br />262.785.1520 <br /> <br />Naperville (IL) Office <br />1001 East Chicago Avenue, Suite 135, Naperville, IL 60540 <br />630.355.6100 <br /> <br />On the Internet at www.ehlers-inc.com <br /> <br />~* <br />~. <br /> <br />Bond Buyer's 20-Year G.O. Index <br /> <br />_~__,_,~__,_~,~"-""-,,,,,~~''1''''''''''''''~'''-':~'''''''':''O:'^'' <br /> <br />#' <br />i....-----. <br />5.40% i_,,,_~?,L <br />...--"'" . <br />I .",.___..,,,,-'" <br />4.90% ~- . ,~.-r'-' <br />1999 <br /> <br />6.40% l <br /> <br />5.90% <br /> <br />i,} <br /> <br />r-:'~~"'~-';~~ <br />*...J ."' <br /> <br /> <br />, -T'--~'---'------'---'---'-: -r-r--,-'---'~--'--T'-~' <br /> <br />2000 <br /> <br />6 <br />