1.1                          A bill for an act 
  1.2             relating to education finance; increasing the formula 
  1.3             allowance; adjusting the general education levy; 
  1.4             reducing the referendum allowance; adjusting the 
  1.5             referendum allowance limit; appropriating money; 
  1.6             amending Minnesota Statutes 2000, sections 126C.10, 
  1.7             subdivision 2; 126C.13, subdivision 1; 126C.17, 
  1.8             subdivisions 1, 2, 8; repealing Minnesota Statutes 
  1.9             2000, section 126C.17, subdivisions 5, 6, 7. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 126C.10, 
  1.12  subdivision 2, is amended to read: 
  1.13     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  1.14  district equals the formula allowance times the adjusted 
  1.15  marginal cost pupil units for the school year.  ~~The formula~~ 
  1.16  ~~allowance for fiscal year 1998 is $3,581.  The formula allowance~~ 
  1.17  ~~for fiscal year 1999 is $3,530.  The formula allowance for~~ 
  1.18  ~~fiscal year 2000 is $3,740.~~  The formula allowance for fiscal 
  1.19  year 2001 ~~and subsequent fiscal years~~ and fiscal year 2002 is 
  1.20  $3,964.  The formula allowance for fiscal year 2003 and 
  1.21  subsequent fiscal years is $4,379. 
  1.22     Sec. 2.  Minnesota Statutes 2000, section 126C.13, 
  1.23  subdivision 1, is amended to read: 
  1.24     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
  1.25  commissioner must establish the general education tax rate by 
  1.26  July 1 of each year for levies payable in the following year.  
  1.27  The general education tax capacity rate must be a rate, rounded 
  2.1   up to the nearest hundredth of a percent, that, when applied to 
  2.2   the adjusted net tax capacity for all districts, raises the 
  2.3   amount specified in this subdivision.  The general education tax 
  2.4   rate must be the rate that raises $1,330,000,000 for fiscal year 
  2.5   2001 and fiscal year 2002, and $1,515,000,000 for fiscal year 
  2.6   2003, and later fiscal years.  The general education tax rate 
  2.7   may not be changed due to changes or corrections made to a 
  2.8   district's adjusted net tax capacity after the tax rate has been 
  2.9   established.  
  2.10     Sec. 3.  Minnesota Statutes 2000, section 126C.17, 
  2.11  subdivision 1, is amended to read: 
  2.12     Subdivision 1.  [REFERENDUM ALLOWANCE.] (a) For fiscal year 
  2.13  2002, a district's referendum revenue allowance equals the 
  2.14  referendum revenue authority for that year divided by its 
  2.15  resident marginal cost pupil units for that school year.  
  2.16     (b) For fiscal year 2003 and later fiscal years, a 
  2.17  district's referendum revenue allowance equals the referendum 
  2.18  revenue authority for that year minus $415 divided by its 
  2.19  resident marginal cost pupil units for that school year.  A 
  2.20  district's referendum revenue allowance may not be less than 
  2.21  zero. 
  2.22     Sec. 4.  Minnesota Statutes 2000, section 126C.17, 
  2.23  subdivision 2, is amended to read: 
  2.24     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
  2.25  subdivision 1, for fiscal year 2002, a district's referendum 
  2.26  allowance must not exceed the greater of:  
  2.27     (1) the district's referendum allowance for fiscal year 
  2.28  1994; 
  2.29     (2) 25 percent of the formula allowance; or 
  2.30     (3) for a newly reorganized district created after July 1, 
  2.31  1994, the sum of the referendum revenue authority for the 
  2.32  reorganizing districts for the fiscal year preceding the 
  2.33  reorganization, divided by the sum of the resident marginal cost 
  2.34  pupil units of the reorganizing districts for the fiscal year 
  2.35  preceding the reorganization. 
  2.36     (b) Notwithstanding subdivision 1, for fiscal year 2003 and 
  3.1   later fiscal years, a district's referendum allowance must not 
  3.2   exceed the greater of: 
  3.3      (1) the district's referendum allowance for fiscal year 
  3.4   1994 minus $415; 
  3.5      (2) 22.6 percent of the formula allowance; or 
  3.6      (3) for a newly reorganized district created after July 1, 
  3.7   1994, the sum of the referendum revenue authority for the 
  3.8   reorganizing districts for the fiscal year preceding the 
  3.9   reorganization minus $415 divided by the sum of the resident 
  3.10  marginal cost pupil units of the reorganizing districts for the 
  3.11  fiscal year preceding the reorganization. 
  3.12     Sec. 5.  Minnesota Statutes 2000, section 126C.17, 
  3.13  subdivision 8, is amended to read: 
  3.14     Subd. 8.  [UNEQUALIZED REFERENDUM LEVY.] ~~Each~~ (a) For 
  3.15  fiscal year 2002, a district may levy an amount equal to the 
  3.16  difference between its total referendum revenue according to 
  3.17  subdivision 5 and its equalized referendum aid and levy 
  3.18  according to subdivisions 6 and 7. 
  3.19     (b) For fiscal year 2003 and later fiscal years, a district 
  3.20  may levy an amount equal to the total referendum revenue 
  3.21  according to subdivision 4. 
  3.22     Sec. 6.  [REPEALER.] 
  3.23     Minnesota Statutes 2000, section 126C.17, subdivisions 5, 
  3.24  6, and 7, are repealed. 
  3.25     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.26  fiscal year 2003.