1.1 	A bill for an act
1.2 	relating to education finance; increasing basic education aid;amending 
1.3 	Minnesota Statutes 2006, section 124D.531, subdivision 1.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2006, section 124D.531, subdivision 1, is amended to 
1.6 	read:
1.7 		Subdivision 1.State total adult basic education aid. (a) ~~The state total adult basic~~ 
1.8 	~~education aid for fiscal year 2005 is $36,509,000. The state total adult basic education~~ 
1.9 	~~aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during~~ 
1.10 	~~the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a),~~ 
1.11 	~~or section 124D.52, subdivision 3.~~ The state total adult basic education aid for fiscal 
1.12 	year 2007 equals $37,673,000 plus any amount that is not paid for during the previous 
1.13 	fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 
1.14 	124D.52, subdivision 3. The state total basic education aid for fiscal year 2008 equals 
1.15 	$75,352,000 plus any amount that is not paid for during the previous fiscal year, as a result 
1.16 	of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 
1.17 	state total adult basic education aid for later fiscal years equals:
1.18 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
1.19 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
1.20 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
1.21 	(2) the lesser of:
1.22 	(i) 1.03; or
1.23 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
1.24 	program year to the state total contact hours in the second prior program year.
2.1 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
2.2 	aid must be set aside for adult basic education supplemental service grants under section 
2.3 	124D.522.
2.4 	(b) The state total adult basic education aid, excluding basic population aid, equals 
2.5 	the difference between the amount computed in paragraph (a), and the state total basic 
2.6 	population aid under subdivision 2.