1.1 	A bill for an act
1.2 	relating to education finance; modifying the equity revenue formula;amending 
1.3 	Minnesota Statutes 2009 Supplement, section 126C.10, subdivision 24.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2009 Supplement, section 126C.10, subdivision 24, 
1.6 	is amended to read:
1.7 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if~~:~~
1.8 	~~(1) the school district's adjusted marginal cost pupil unit amount of basic revenue,~~ 
1.9 	~~transition revenue, and referendum revenue is less than the value of the school district at~~ 
1.10 	~~or immediately above the 95th percentile of school districts in its equity region for those~~ 
1.11 	~~revenue categories; and~~
1.12 	~~(2)~~ the school district's administrative offices are not located in a city of the first 
1.13 	class on July 1, 1999.
1.14 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
1.15 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
1.16 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
1.17 	district's equity index computed under subdivision 27.
1.18 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
1.19 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
1.20 	cost pupil units for that year times $13.
1.21 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
1.22 	equal to the district's resident marginal cost pupil units times the difference between ten 
1.23 	percent of the statewide average amount of referendum revenue per resident marginal cost 
1.24 	pupil unit for that year and the district's referendum revenue per resident marginal cost 
2.1 	pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
2.2 	that year.
2.3 	(e) A school district's equity revenue for a school district located in the metro equity 
2.4 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
2.5 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 
2.6 	district that has per pupil referendum revenue below the 95th percentile qualifies for 
2.7 	additional equity revenue equal to $46 times its adjusted marginal cost pupil units.
2.8 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
2.9 	equity revenue equal to $46 times its adjusted marginal cost pupil units.

2.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2011 
2.11 	and later.