1.1 	A bill for an act
1.2 	relating to education; increasing the basic revenue formula allowance; modifying 
1.3 	general education aid;amending Minnesota Statutes 2006, sections 126C.10, 
1.4 	subdivision 2; 126C.13, subdivision 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:
1.7 		Subd. 2.Basic revenue. (a) The basic revenue for each district equals the formula 
1.8 	allowance times the adjusted marginal cost pupil units for the school year. The formula 
1.9 	allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is 
1.10 	$4,783. The formula allowance for fiscal year 2007 and subsequent years is $4,974.
1.11 	(b) The basic formula allowance in paragraph (a) is increased by $421 for fiscal year 
1.12 	2008 and by $453 for fiscal year 2009 and later. The increase in the formula allowance 
1.13 	under this paragraph applies only for general education basic revenue and does not affect 
1.14 	any other school formula.

1.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

1.16 	Sec. 2. Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:
1.17 		Subd. 4.General education aid. (a) For fiscal year 2006, a district's general 
1.18 	education aid is the sum of the following amounts:
1.19 	(1) general education revenue, excluding equity revenue, total operating capital, and 
1.20 	transition revenue;
1.21 	(2) operating capital aid according to section 126C.10, subdivision 13b;
1.22 	(3) equity aid according to section 126C.10, subdivision 30;
1.23 	(4) transition aid according to section 126C.10, subdivision 33;
2.1 	(5) shared time aid according to section 126C.01, subdivision 7;
2.2 	(6) referendum aid according to section 126C.17; and
2.3 	(7) online learning aid according to section 124D.096.
2.4 	(b) For fiscal year 20072008 and later, a district's general education aid is the sum of 
2.5 	the following amounts:
2.6 	(1) general education revenue, excluding equity revenue, total operating capital 
2.7 	revenue, alternative teacher compensation revenue, and transition revenue;
2.8 	(2) operating capital aid under section 126C.10, subdivision 13b;
2.9 	(3) equity aid under section 126C.10, subdivision 30;
2.10 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
2.11 	(5) transition aid under section 126C.10, subdivision 33;
2.12 	(6) shared time aid under section 126C.01, subdivision 7;
2.13 	(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
2.14 	(8) online learning aid according to section 124D.096.