1.1                          A bill for an act 
  1.2             relating to education; authorizing a locally 
  1.3             controlled inflationary increase in the basic formula 
  1.4             allowance in years when the state responsibility is 
  1.5             not met; amending Minnesota Statutes 2001 Supplement, 
  1.6             section 126C.17, subdivision 8. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   126C.17, subdivision 8, is amended to read: 
  1.10     Subd. 8.  [UNEQUALIZED REFERENDUM LEVY.] (a) Each year, a 
  1.11  district may levy an amount equal to the sum of: 
  1.12     (1) the difference between its total referendum revenue 
  1.13  according to subdivision 4 and its referendum equalization 
  1.14  revenue according to subdivision 5~~.~~; and 
  1.15     (2) an amount guaranteeing an annual inflationary increase 
  1.16  in the basic revenue under section 126C.10, subdivision 2. 
  1.17     (b) The guaranteed inflationary increase is determined by 
  1.18  taking the greater of: 
  1.19     (1) zero; or 
  1.20     (2) three percent less the actual percentage increase in 
  1.21  the formula between the current fiscal year and the previous 
  1.22  fiscal year, times the adjusted marginal cost pupil units for 
  1.23  that year.  
  1.24     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  1.25  payable in 2003.