Purpose

To modify how transportation sparsity funding (pupil transportation adjustment) is calculated for independent common or special school districts, with the goal of aligning sparsity revenue more closely to districts’ transportation costs and related funding components.

Main Provisions

• Pupil transportation adjustment (pupil transportation sparsity revenue)
  • For independent districts, the transportation sparsity revenue is increased by the greater of zero or a specified amount based on a comparison between costs and a set of revenue components.
  • The increase is calculated as the greater of zero or a percentage of the difference between:
  • The lesser of the district’s total cost for regular and excess pupil transportation under section 123B.92 subdivision 1 paragraph b (including depreciation for the previous fiscal year), and
  • 105 percent of the district’s total cost for the second previous fiscal year.
  • The difference is compared to the sum of several components for the previous year, specifically:
  • 4.66 percent of the district’s basic revenue for the previous fiscal year
  • transportation sparsity revenue under subdivision 18 for the previous fiscal year
  • the district’s charter school transportation adjustment for the previous fiscal year
  • the district’s reimbursement for transportation provided under section 123B.92 subdivision 1 paragraph b clause 1 item vi
  • the district’s area learning center transportation aid under section 123B.92 subdivision 1
• Charter schools adjustment
  • A charter schools pupil transportation adjustment equals the school district per pupil unit adjustment under the related paragraph (i.e., it mirrors the district’s per pupil unit adjustment).

Significant Changes to Existing Law

• Replaces or restates how the transportation sparsity revenue is increased for independent districts, tying the increase to a differential between current costs (including depreciation) and prior-year benchmarks, with the amount further defined by the sum of multiple revenue components.
• Establishes that charter school transportation adjustments are linked to the district’s per pupil unit adjustment, creating parity between charter school funding adjustments and district-level adjustments.

Key Terms and Concepts

• Pupil transportation adjustment
• Transportation sparsity revenue
• Subdivision 18a
• Independent common or special school districts
• Regular and excess pupil transportation
• Section 123B.92 subdivision 1 paragraph b
• Depreciation
• Basic revenue
• Previous fiscal year
• Second previous fiscal year
• Charter school transportation adjustment
• Reimbursement for transportation under section 123B.92 subdivision 1 paragraph b clause 1 item vi
• Area learning center transportation aid

Relevant Terms - Pupil transportation adjustment - Transportation sparsity revenue - Depreciation - Basic revenue - Previous fiscal year - Second previous fiscal year - Section 123B.92 - Charter school transportation adjustment - Area learning center transportation aid - Reimbursement for transportation - Independent school districts - Regular and excess pupil transportation