1.1                          A bill for an act 
  1.2             relating to education finance; modifying the 
  1.3             definition of equity revenue; appropriating money; 
  1.4             amending Minnesota Statutes 2000, section 126C.10, 
  1.5             subdivisions 24, 25, and 27; repealing Minnesota 
  1.6             Statutes 2000, section 126C.10, subdivision 28. 
  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 24, is amended to read: 
  1.10     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
  1.11  qualifies for equity revenue if: 
  1.12     (1) the school district's adjusted marginal cost pupil unit 
  1.13  amount of basic revenue, supplemental revenue, transition 
  1.14  revenue, and referendum revenue is less than the value of the 
  1.15  school district at or immediately above the 90th 95th percentile 
  1.16  of school districts in its equity region for those revenue 
  1.17  categories; 
  1.18     (2) the district's referendum revenue allowance is subject 
  1.19  to the limit in section 126C.17, and the district's referendum 
  1.20  allowance limit is less than the amount established under that 
  1.21  section; and 
  1.22     (3) the school district's administrative offices are not 
  1.23  located in a city of the first class on July 1, 1999. 
  1.24     (b) Equity revenue for a qualifying district that receives 
  1.25  referendum revenue under section 126C.17, subdivision 4, equals 
  1.26  the product of (1) the district's adjusted marginal cost pupil 
  2.1   units for that year; times (2) the sum of (i) $10 $25, plus (ii) 
  2.2   $30 $75, times the school district's equity index computed under 
  2.3   subdivision 27. 
  2.4      (c) Equity revenue for a qualifying district that does not 
  2.5   receive referendum revenue under section 126C.17, subdivision 4, 
  2.6   equals the product of the district's adjusted marginal cost 
  2.7   pupil units for that year times $10. 
  2.8      Sec. 2.  Minnesota Statutes 2000, section 126C.10, 
  2.9   subdivision 25, is amended to read: 
  2.10     Subd. 25.  [REGIONAL STATEWIDE EQUITY GAP.] The regional 
  2.11  statewide equity gap equals the difference between the value of 
  2.12  the school district at or immediately above the fifth percentile 
  2.13  of adjusted general revenue per adjusted marginal cost pupil 
  2.14  unit and the value of the school district at or immediately 
  2.15  above the 90th 95th percentile of adjusted general revenue per 
  2.16  adjusted marginal cost pupil unit. 
  2.17     Sec. 3.  Minnesota Statutes 2000, section 126C.10, 
  2.18  subdivision 27, is amended to read: 
  2.19     Subd. 27.  [DISTRICT EQUITY INDEX.] A district's equity 
  2.20  index equals the ratio of the sum of the district equity gap 
  2.21  amount to the regional statewide equity gap amount. 
  2.22     Sec. 4.  [APPROPRIATION.] 
  2.23     $....... is appropriated in fiscal year 2002 and $....... 
  2.24  is appropriated in fiscal year 2003 from the general fund to the 
  2.25  commissioner of children, families, and learning for the purpose 
  2.26  of funding school district equity.  This appropriation is in 
  2.27  addition to any other appropriation for that purpose. 
  2.28     Sec. 5.  [REPEALER.] 
  2.29     Minnesota Statutes 2000, section 126C.10, subdivision 28, 
  2.30  is repealed. 
  2.31     Sec. 6.  [EFFECTIVE DATE.] 
  2.32     Sections 1 to 5 are effective for revenue for fiscal year 
  2.33  2002 and later.