1.1                          A bill for an act 
  1.2             relating to education finance; including a growth 
  1.3             factor in the referendum revenue cap; restoring the 
  1.4             original referendum revenue cap percentage; amending 
  1.5             Minnesota Statutes 2000, section 126C.17, subdivision 
  1.6             2.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 126C.17, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
  1.11  subdivision 1, a district's referendum allowance must not exceed 
  1.12  the greater of:  
  1.13     (1) the district's referendum allowance for fiscal year 
  1.14  1994 multiplied by the referendum growth factor established in 
  1.15  paragraph (b); 
  1.16     (2) 25 35 percent of the formula allowance; or 
  1.17     (3) for a newly reorganized district created after July 1, 
  1.18  1994, the sum of the referendum revenue authority for the 
  1.19  reorganizing districts for the fiscal year preceding the 
  1.20  reorganization, divided by the sum of the resident marginal cost 
  1.21  pupil units of the reorganizing districts for the fiscal year 
  1.22  preceding the reorganization. 
  1.23     (b) The referendum growth factor equals the greater of 1.0 
  1.24  or the ratio of the change in the gross domestic product 
  1.25  implicit price deflator as prepared by the United States 
  1.26  Department of Commerce, for the most recently available year, to 
  2.1   the 1994 implicit price deflator. 
  2.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
  2.3   for revenue for fiscal years 2002 and later.