1.1                          A bill for an act 
  1.2             relating to education finance; creating a mechanism to 
  1.3             allow compensatory revenue amounts to follow the 
  1.4             student to a nonresident school district; 
  1.5             appropriating money; amending Minnesota Statutes 2002, 
  1.6             section 126C.10, subdivision 4, by adding a 
  1.7             subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 126C.10, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 3a.  [ENROLLMENT OPTIONS COMPENSATORY REVENUE.] A 
  1.12  nonresident pupil's enrollment options compensatory revenue 
  1.13  equals the greater of zero, or the difference between the 
  1.14  average compensatory revenue per adjusted marginal cost pupil 
  1.15  unit in the pupil's resident school district and the pupil's 
  1.16  serving school district for that school year.  A school 
  1.17  district's enrollment options compensatory revenue equals the 
  1.18  sum of its nonresident pupils' enrollment options compensatory 
  1.19  revenue. 
  1.20     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  1.21  fiscal year 2004. 
  1.22     Sec. 2.  Minnesota Statutes 2002, section 126C.10, 
  1.23  subdivision 4, is amended to read: 
  1.24     Subd. 4.  [BASIC SKILLS REVENUE.] (a) For fiscal year 2002, 
  1.25  a school district's basic skills revenue equals the sum of: 
  1.26     (1) compensatory revenue under subdivision 3; plus 
  2.1      (2) limited English proficiency revenue according to 
  2.2   section 124D.65, subdivision 5; plus 
  2.3      (3) $190 times the limited English proficiency pupil units 
  2.4   according to section 126C.05, subdivision 17; plus 
  2.5      (4) $22.50 times the number of adjusted marginal cost pupil 
  2.6   units in kindergarten to grade 8. 
  2.7      (b) For fiscal year 2003 and later, A school district's 
  2.8   basic skills revenue equals the sum of: 
  2.9      (1) compensatory revenue under subdivision subdivisions 3 
  2.10  and 3a; plus 
  2.11     (2) limited English proficiency revenue under section 
  2.12  124D.65, subdivision 5; plus 
  2.13     (3) $190 times the limited English proficiency pupil units 
  2.14  under section 126C.05, subdivision 17. 
  2.15     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.16  fiscal year 2004.