1.1                          A bill for an act 
  1.2             relating to education finance; increasing the general 
  1.3             education formula allowance; authorizing a levy for 
  1.4             districts in statutory operating debt; amending 
  1.5             Minnesota Statutes 2000, sections 126C.10, subdivision 
  1.6             2; 126C.42, by adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 126C.10, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  1.11  district equals the formula allowance times the adjusted 
  1.12  marginal cost pupil units for the school year.  The formula 
  1.13  allowance for fiscal year 1998 is $3,581.  The formula allowance 
  1.14  for fiscal year 1999 is $3,530.  The formula allowance for 
  1.15  fiscal year 2000 is $3,740.  The formula allowance for fiscal 
  1.16  year 2001 and subsequent fiscal years is $3,964 $4,375. 
  1.17     Sec. 2.  Minnesota Statutes 2000, section 126C.42, is 
  1.18  amended by adding a subdivision to read: 
  1.19     Subd. 5.  [2000 OPERATING DEBT.] (a) For taxes payable for 
  1.20  calendar year 2012 and earlier, a district that has filed a plan 
  1.21  according to section 123B.83, subdivision 4, may levy, with the 
  1.22  approval of the commissioner, to eliminate a deficit in the net 
  1.23  unappropriated balance in the operating funds of the district, 
  1.24  determined as of June 30, 2000, and certified and adjusted by 
  1.25  the commissioner.  Each year this levy may be an amount not to 
  1.26  exceed the lesser of: 
  2.1      (1) an amount raised by a levy of a net tax rate of three 
  2.2   percent times the adjusted net tax capacity of the district; or 
  2.3      (2) $300,000. 
  2.4   However, the total amount of this levy for all years it is made 
  2.5   must not exceed the amount of the deficit in the net 
  2.6   unappropriated balance in the operating funds of the district as 
  2.7   of June 30, 2000.  When the cumulative levies made pursuant to 
  2.8   this subdivision equals the total amount permitted by this 
  2.9   subdivision, the levy must be discontinued.  
  2.10     (b) The proceeds of this levy must be used only for cash 
  2.11  flow requirements and must not be used to supplement district 
  2.12  revenues or income for the purposes of increasing the district's 
  2.13  expenditures or budgets. 
  2.14     (c) Any district that levies under this subdivision must 
  2.15  certify the maximum levy allowable under section 126C.13, 
  2.16  subdivision 2, in that same year.