1.1                          A bill for an act 
  1.2             relating to education finance; enhancing the debt 
  1.3             service equalization aid program; appropriating money; 
  1.4             amending Minnesota Statutes 2001 Supplement, sections 
  1.5             123B.53, subdivisions 4, 5; 123B.54. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.8   123B.53, subdivision 4, is amended to read: 
  1.9      Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 
  1.10  service equalization revenue of a district equals the sum of the 
  1.11  first tier debt service equalization revenue and the second tier 
  1.12  debt service equalization revenue. 
  1.13     (b) The first tier debt service equalization revenue of a 
  1.14  district equals the greater of zero or the eligible debt service 
  1.15  revenue minus the amount raised by a levy of 15 ten percent 
  1.16  times the adjusted net tax capacity of the district minus the 
  1.17  second tier debt service equalization revenue of the district. 
  1.18     (c) The second tier debt service equalization revenue of a 
  1.19  district equals the greater of zero or the eligible debt service 
  1.20  revenue minus the amount raised by a levy of 25 20 percent times 
  1.21  the adjusted net tax capacity of the district. 
  1.22     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  1.23  payable in 2003. 
  1.24     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  1.25  123B.53, subdivision 5, is amended to read: 
  2.1      Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] (a) The equalized 
  2.2   debt service levy of a district equals the sum of the first tier 
  2.3   equalized debt service levy and the second tier equalized debt 
  2.4   service levy. 
  2.5      (b) A district's first tier equalized debt service levy 
  2.6   equals the district's first tier debt service equalization 
  2.7   revenue times the lesser of one or the ratio of: 
  2.8      (1) the quotient derived by dividing the adjusted net tax 
  2.9   capacity of the district for the year before the year the levy 
  2.10  is certified by the adjusted pupil units in the district for the 
  2.11  school year ending in the year prior to the year the levy is 
  2.12  certified; to 
  2.13     (2) $3,200 $5,000. 
  2.14     (c) A district's second tier equalized debt service levy 
  2.15  equals the district's second tier debt service equalization 
  2.16  revenue times the lesser of one or the ratio of: 
  2.17     (1) the quotient derived by dividing the adjusted net tax 
  2.18  capacity of the district for the year before the year the levy 
  2.19  is certified by the adjusted pupil units in the district for the 
  2.20  school year ending in the year prior to the year the levy is 
  2.21  certified; to 
  2.22     (2) $8,000. 
  2.23     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.24  payable in 2003.  
  2.25     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  2.26  123B.54, is amended to read: 
  2.27     123B.54 [DEBT SERVICE APPROPRIATION.] 
  2.28     (a) $25,989,000 in fiscal year 2002, $35,163,000 in fiscal 
  2.29  year 2003, $31,787,000 $109,000,000 in fiscal year 2004, and 
  2.30  $26,453,000 $91,000,000 in fiscal years 2005 and later are 
  2.31  appropriated from the general fund to the commissioner of 
  2.32  children, families, and learning for payment of debt service 
  2.33  equalization aid under section 123B.53.  
  2.34     (b) The appropriations in paragraph (a) must be reduced by 
  2.35  the amount of any money specifically appropriated for the same 
  2.36  purpose in any year from any state fund. 
  3.1      <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  3.2   payable in 2003.