1.1                          A bill for an act
  1.2             relating to education; establishing an alternative 
  1.3             calculation for compensatory revenue; appropriating 
  1.4             money; amending Minnesota Statutes 1997 Supplement, 
  1.5             section 124.17, subdivision 1d. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.8   124.17, subdivision 1d, is amended to read: 
  1.9      Subd. 1d.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  1.10  revenue pupil units for fiscal year 1998 1999 and thereafter 
  1.11  must be computed according to this subdivision.  
  1.12     (a) The compensation revenue concentration percentage for 
  1.13  each building in a district equals the product of 100 times the 
  1.14  ratio of:  
  1.15     (1) the sum of the number of pupils enrolled in the 
  1.16  building eligible to receive free lunch plus one-half of the 
  1.17  pupils eligible to receive reduced priced lunch on October 1 of 
  1.18  the previous fiscal year; to 
  1.19     (2) the number of pupils enrolled in the building on 
  1.20  October 1 of the previous fiscal year. 
  1.21     (b) The compensation revenue pupil weighting factor for a 
  1.22  building equals the lesser of one or the quotient obtained by 
  1.23  dividing the building's compensation revenue concentration 
  1.24  percentage by 80.0.  
  1.25     (c) The compensation revenue pupil units for a building 
  2.1   equals the product of:  
  2.2      (1) the sum of the number of pupils enrolled in the 
  2.3   building eligible to receive free lunch and one-half of the 
  2.4   pupils eligible to receive reduced priced lunch on October 1 of 
  2.5   the previous fiscal year times the equity adjustment factor; 
  2.6   times 
  2.7      (2) the compensation revenue pupil weighting factor for the 
  2.8   building times the equity adjustment factor; times 
  2.9      (3) .60. 
  2.10     (d) A district qualifies for the equity adjustment factor 
  2.11  if the district served more than 5,000 pupils eligible to 
  2.12  receive free or reduced price lunch during the previous fiscal 
  2.13  year and if the district's percentage of pupils eligible to 
  2.14  receive free or reduced price lunch during the previous fiscal 
  2.15  year is less than the statewide average percentage for that year.
  2.16  The equity adjustment factor equals the ratio of the statewide 
  2.17  percentage of pupils eligible to receive free or reduced price 
  2.18  lunch during the previous fiscal year to the district's 
  2.19  percentage of pupils eligible to receive free or reduced price 
  2.20  lunch. 
  2.21     (e) The percentages in this subdivision must be based on 
  2.22  the count of individual pupils and not on a building average or 
  2.23  minimum. 
  2.24     Sec. 2.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective July 1, 1998, for revenue for fiscal 
  2.26  years 1999 and later.