1.1 	A bill for an act
1.2 	relating to education; modifying equalized debt service levy;amending 
1.3 	Minnesota Statutes 2006, sections 123B.53, subdivisions 4, 5; 126C.01, by 
1.4 	adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 123B.53, subdivision 4, is amended to read:
1.7 		Subd. 4.Debt service equalization revenue. (a) The debt service equalization 
1.8 	revenue of a district equals the sum of the first tier debt service equalization revenue and 
1.9 	the second tier debt service equalization revenue.
1.10 	(b) The first tier debt service equalization revenue of a district equals the greater 
1.11 	of zero or the eligible debt service revenue minus the amount raised by a levy of ~~15~~ 12
1.12 	percent times the adjusted net tax capacity of the district minus the second tier debt service 
1.13 	equalization revenue of the district.
1.14 	(c) The second tier debt service equalization revenue of a district equals the greater 
1.15 	of zero or the eligible debt service revenue, excluding alternative facilities levies under 
1.16 	section 123B.59, subdivision 5, minus the amount raised by a levy of ~~25~~ 22 percent times 
1.17 	the adjusted net tax capacity of the district. 

1.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

1.19 	Sec. 2. Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:
1.20 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
1.21 	district equals the sum of the first tier equalized debt service levy and the second tier 
1.22 	equalized debt service levy.
2.1 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
2.2 	service equalization revenue times the lesser of one or the ratio of:
2.3 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
2.4 	the year before the year the levy is certified by the adjusted pupil units in the district for 
2.5 	the school year ending in the year prior to the year the levy is certified; to
2.6 	(2) ~~$3,200~~ $5,500 times the equalizing factor adjustment under section 126C.01, 
2.7 	subdivision 12.
2.8 	(c) A district's second tier equalized debt service levy equals the district's second tier 
2.9 	debt service equalization revenue times the lesser of one or the ratio of:
2.10 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
2.11 	the year before the year the levy is certified by the adjusted pupil units in the district for 
2.12 	the school year ending in the year prior to the year the levy is certified; to
2.13 	(2) $8,000 times the equalizing factor adjustment under section 126C.01, subdivision 
2.14 	12.

2.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

2.16 	Sec. 3. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision 
2.17 	to read:
2.18 		Subd. 12.Net tax capacity equalizing factor adjustment. The net tax capacity 
2.19 	equalizing factor adjustment equals the greater of one or the ratio of the statewide net 
2.20 	tax capacity for the most recent assessment year divided by the statewide adjusted 
2.21 	marginal cost pupil units for the third subsequent year to the statewide net tax capacity 
2.22 	for assessment year 2005 divided by the statewide adjusted marginal cost pupil units 
2.23 	for fiscal year 2008.

2.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.