1.1 	A bill for an act
1.2 	relating to education finance; providing an increase
1.3 	in equity revenue for districts with low levels of
1.4 	referendum revenue per pupil unit; amending Minnesota
1.5 	Statutes 2004, section 126C.10, subdivision 24.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 126C.10,
1.8 	subdivision 24, is amended to read:
1.9 		Subd. 24.Equity revenue.  (a) A school district
1.10 	qualifies for equity revenue if:
1.11 	(1) the school district's adjusted marginal cost pupil unit
1.12 	amount of basic revenue, supplemental revenue, transition
1.13 	revenue, and referendum revenue is less than the value of the
1.14 	school district at or immediately above the 95th percentile of
1.15 	school districts in its equity region for those revenue
1.16 	categories; and
1.17 	(2) the school district's administrative offices are not
1.18 	located in a city of the first class on July 1, 1999.
1.19 	(b) Equity revenue for a qualifying district that receives
1.20 	referendum revenue under section 126C.17, subdivision 4, equals
1.21 	the product of (1) the district's adjusted marginal cost pupil
1.22 	units for that year; times (2) the sum of (i) $13, plus (ii)
1.23 	$75, times the school district's equity index computed under
1.24 	subdivision 27.
1.25 	(c) Equity revenue for a qualifying district that does not
2.1 	receive referendum revenue under section 126C.17, subdivision 4,
2.2 	equals the product of the district's adjusted marginal cost
2.3 	pupil units for that year times $13.
2.4 	(d) A school district's equity revenue is increased by the
2.5 	greater of zero or an amount equal to the district's resident
2.6 	marginal pupil units times the difference between ten percent of
2.7 	the statewide average amount of referendum revenue per resident
2.8 	marginal cost pupil unit for that year and the district's
2.9 	referendum revenue per resident marginal cost pupil unit.
2.10 	
EFFECTIVE DATE. This section is effective for revenue for
2.11 	fiscal year 2006.