1.1 	A bill for an act
1.2 	relating to education finance; increasing the general education basic formula 
1.3 	allowance; linking the general education basic formula allowance to the rate of 
1.4 	inflation; appropriating money;amending Minnesota Statutes 2021 Supplement, 
1.5 	section 126C.10, subdivision 2.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2021 Supplement, section 126C.10, subdivision 2, is amended 
1.8 	to read:
1.9 		Subd. 2.Basic revenue. (a) The basic revenue for each district equals the formula 
1.10 	allowance times the adjusted pupil units for the school year. ~~The formula allowance for~~ 
1.11 	~~fiscal year 2021 is $6,567.~~ The formula allowance for fiscal year 2022 is $6,728. The formula 
1.12 	allowance for fiscal year 2023 ~~and later~~ is ~~$6,863~~ $7,661.
1.13 	(b) For fiscal year 2024 and later, the formula allowance equals the formula allowance 
1.14 	for fiscal year 2023 times the inflationary increase for that year.
1.15 	(c) For purposes of this subdivision, "inflationary increase" means one plus the percentage 
1.16 	change in the Consumer Price Index for urban consumers, as prepared by the United States 
1.17 	Bureau of Labor Statistics, from the current fiscal year to fiscal year 2023.

1.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2023 and later.