1.1 	A bill for an act
1.2 	relating to education finance; requiring the Department of Education to examine 
1.3 	cost factors and wage rate differences among Minnesota's school districts; 
1.4 	requiring a report; appropriating money.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. GEOGRAPHIC LABOR COST DIFFERENCES AMONG SCHOOL 
1.7 	DISTRICTS.
 1.8 		Subdivision 1.Study. The Department of Education must examine the impact 
1.9 	of labor cost differentials that exist in different regions of the state and develop 
1.10 	recommendations for adjusting the general education program to account for the 
1.11 	differences.  The department analysis must include an examination of how other states 
1.12 	address labor cost differentials and recommend methods for grouping school districts in 
1.13 	regions for purposes of recognizing labor cost adjustments.
1.14 		Subd. 2.Report required. The Department of Education must report its findings 
1.15 	to the legislative committees having jurisdiction over kindergarten through grade 12 
1.16 	education by January 15, 2007.
1.17 		Subd. 3.Appropriation. $....... is appropriated in fiscal year 2007 from the general 
1.18 	fund to the commissioner of education for costs associated with this section.

1.19 	EFFECTIVE DATE. This section is effective the day following final enactment.