1.1 	A bill for an act
1.2 	relating to education; establishing expectations and
1.3 	rewarding educational excellence; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. EDUCATION EXCELLENCE REVENUE.
 1.6 	(a) In fiscal year 2007 only, a school district is eligible
1.7 	for education excellence revenue based on the school district's
1.8 	performance on the following five standards:
1.9 	(1) graduation rate;
1.10 	(2) attendance rate;
1.11 	(3) achievement of educational standards;
1.12 	(4) adequate yearly progress; and 
1.13 	(5) school safety.
1.14 	The commissioner of education must establish expectations
1.15 	for improving educational performance in each of the five
1.16 	standards listed in clauses (1) to (5) of this paragraph.  A
1.17 	school district that meets or exceeds the expectations
1.18 	established by the commissioner for that school district is
1.19 	eligible for educational excellence revenue for each standard it
1.20 	meets.
1.21 	(b) Total revenue for education excellence equals $........
1.22 	(c) The commissioner shall determine the education
1.23 	excellence revenue allowance.  The allowance in all school
1.24 	districts equals the total revenue for education excellence
2.1 	under paragraph (b) divided by the sum of the product of the
2.2 	number of adjusted marginal cost pupil units in each school
2.3 	district and the number of standards under paragraph (a) that
2.4 	each school district met or exceeded in the previous school year.
2.5 	(d) A school district's education excellence allowance
2.6 	equals the product of the education excellence allowance, the
2.7 	district's adjusted marginal cost pupil units for that year, and
2.8 	the number of standards that the district met or exceeded in the
2.9 	previous school year.  A school district's education excellence
2.10 	revenue must not exceed $100 times the district's adjusted
2.11 	marginal cost per pupil units for that year.

2.12 	EFFECTIVE DATE. This section is effective for revenue for
2.13 	fiscal year 2007.

2.14 	Sec. 2. REWARDING EDUCATIONAL EXCELLENCE.
 2.15 	For rewarding educational excellence under section 1:
2.16 	$ -0-.....2006 
2.17 	$............2007 
2.18 	This is a onetime appropriation.