1.1 	A bill for an act
1.2 	relating to education finance; increasing the basic
1.3 	formula allowance; amending Minnesota Statutes 2004,
1.4 	section 126C.10, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 126C.10,
1.7 	subdivision 2, is amended to read:
1.8 		Subd. 2.Basic revenue. (a) The basic revenue for each
1.9 	district equals the formula allowance times the adjusted
1.10 	marginal cost pupil units for the school year. The formula
1.11 	allowance for fiscal year 2001 is $3,964.  The formula allowance
1.12 	for fiscal year 2002 is $4,068.The formula allowance for
1.13 	fiscal year 2003 and subsequent years through fiscal year 2005 
1.14 	is $4,601.
1.15 	(b) The basic formula allowance in paragraph (a) is
1.16 	increased by $....... for fiscal year 2006 and by $....... for
1.17 	fiscal year 2007 and later.
1.18 	
EFFECTIVE DATE. This section is effective for revenue for
1.19 	fiscal year 2006.