1.1 	A bill for an act
1.2 	relating to education finance; increasing the annual program growth factor for 
1.3 	adult basic education aid;amending Minnesota Statutes 2012, section 124D.531, 
1.4 	subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2012, section 124D.531, subdivision 1, is amended to 
1.7 	read:
1.8 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
1.9 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
1.10 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
1.11 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
1.12 	fiscal years equals:
1.13 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
1.14 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
1.15 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
1.16 	(2) the lesser of:
1.17 	(i) 1.02 1.03; or
1.18 	(ii) the average growth in state total contact hours over the prior ten program years.
1.19 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
1.20 	aid must be set aside for adult basic education supplemental service grants under section 
1.21 	124D.522.
1.22 	(b) The state total adult basic education aid, excluding basic population aid, equals 
1.23 	the difference between the amount computed in paragraph (a), and the state total basic 
1.24 	population aid under subdivision 2.

2.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
2.2 	and later.