1.1                          A bill for an act 
  1.2             relating to education finance; creating an education 
  1.3             price index; adjusting the general education formula 
  1.4             allowance; appropriating money; amending Minnesota 
  1.5             Statutes 2002, sections 126C.05, by adding a 
  1.6             subdivision; 126C.10, subdivision 2; proposing coding 
  1.7             for new law in Minnesota Statutes, chapter 126C.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 126C.05, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 19.  [EDUCATION PRICE INDEX.] "Education price index" 
  1.12  means a measure of the relative wage rates across Minnesota 
  1.13  school districts.  The index must be determined according to 
  1.14  section 126C.115.  
  1.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003.  
  1.16     Sec. 2.  Minnesota Statutes 2002, section 126C.10, 
  1.17  subdivision 2, is amended to read: 
  1.18     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  1.19  district equals the formula allowance times the adjusted 
  1.20  marginal cost pupil units for the school year.  ~~The formula~~ 
  1.21  ~~allowance for fiscal year 2001 is $3,964.  The formula allowance~~ 
  1.22  ~~for fiscal year 2002 is $4,068.~~  The formula allowance for 
  1.23  fiscal year 2003 is $4,601.  The formula allowance for fiscal 
  1.24  year 2004 and subsequent years is $4,601 times the education 
  1.25  price index for that year. 
  1.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003.  
  2.1      Sec. 3.  [126C.115] [EDUCATION PRICE INDEX.] 
  2.2      Subdivision 1.  [INDEX.] For fiscal years 2004 and later, 
  2.3   the education price index equals the annual average weekly wage 
  2.4   as calculated by the department of economic security under the 
  2.5   ES-202 program.  The education price index for each school 
  2.6   district equals the greater of one, or the index number for that 
  2.7   district's region divided by the state annual average weekly 
  2.8   wage. 
  2.9      Subd. 2.  [REGIONS.] For fiscal years 2004 and later, the 
  2.10  department of children, families, and learning, in consultation 
  2.11  with the department of economic security, shall determine the 
  2.12  appropriate education price index regions in the state and 
  2.13  assign each school district to a region. 
  2.14     Subd. 3.  [ANNUAL COMPUTATION.] The department shall 
  2.15  calculate the education price index every year based on the most 
  2.16  recent annual report of average weekly wages as calculated by 
  2.17  the department of economic security through the ES-202 program. 
  2.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003.