1.1                          A bill for an act
  1.2             relating to education; creating a virtual school 
  1.3             district; appropriating money; proposing coding for 
  1.4             new law in Minnesota Statutes, chapter 126C. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [126C.155] [VIRTUAL SCHOOL DISTRICT REVENUE.] 
  1.7      Subdivision 1.  [POLICY AND PURPOSE.] It is the goal of the 
  1.8   legislature to ensure that all school children receive the 
  1.9   highest level of instruction possible.  The legislature 
  1.10  recognizes that school district boundaries have been locally 
  1.11  determined and may mask certain concentrations of low income 
  1.12  students.  The legislature further recognizes that existing 
  1.13  school funding formulas may not properly recognize the learning 
  1.14  needs of some school children because of the existing school 
  1.15  district boundaries.  It is the purpose of the virtual school 
  1.16  district program to ensure adequate revenue to the affected 
  1.17  school sites.  
  1.18     Subd. 2.  [VIRTUAL DISTRICT.] A school district that is 
  1.19  contiguous to a city of the first class that has a population 
  1.20  exceeding 300,000 or that is immediately adjacent to a school 
  1.21  district that is contiguous to a city of the first class that 
  1.22  has a population exceeding 300,000 is located within the 
  1.23  boundaries of the virtual school district. 
  1.24     Subd. 3.  [VIRTUAL BUILDING.] A school building located 
  1.25  within the boundaries of the virtual school district is eligible 
  2.1   for revenue under this section if the following conditions are 
  2.2   met: 
  2.3      (1) more than 25 percent of the students enrolled at the 
  2.4   school site on October 1 of the previous school year are 
  2.5   eligible for free or reduced price meals; 
  2.6      (2) the school site has a mobility index in excess of 15 
  2.7   percent. 
  2.8      Subd. 4.  [REVENUE.] (a) A school site that qualifies as a 
  2.9   virtual school building is eligible for additional compensatory 
  2.10  revenue.  The additional compensatory revenue equals the greater 
  2.11  of zero, or the difference between the district average 
  2.12  compensatory revenue per pupil unit for a school district 
  2.13  located in a city of the first class that has a population 
  2.14  exceeding 300,000 and the virtual school building's compensatory 
  2.15  revenue per pupil unit.  
  2.16     (b) For fiscal year 2002 only, a building's revenue under 
  2.17  this subdivision equals one-third of the amount calculated in 
  2.18  paragraph (a). 
  2.19     (c) For fiscal year 2003 only, a building's revenue under 
  2.20  this subdivision equals two-thirds of the amount calculated 
  2.21  under paragraph (a).  
  2.22     Subd. 5.  [REVENUE USES.] Revenue received under this 
  2.23  section must be reserved by the school district and allocated to 
  2.24  the school site that generated the revenue.  The additional 
  2.25  compensatory revenue must be used only for the purposes 
  2.26  authorized under section 126C.15. 
  2.27     Sec. 2.  [APPROPRIATION.] 
  2.28     The following sums are appropriated from the general fund 
  2.29  to the commissioner of children, families, and learning in the 
  2.30  fiscal years designated for the purposes of section 1: 
  2.31       $.,...,...     .....     2002 
  2.32       $.,...,...     .....     2003