1.1                          A bill for an act 
  1.2             relating to education finance; increasing the 
  1.3             referendum revenue cap by the rate of inflation; 
  1.4             amending Minnesota Statutes 2002, section 126C.17, 
  1.5             subdivision 2.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 126C.17, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
  1.10  subdivision 1, for fiscal year 2002, a district's referendum 
  1.11  allowance must not exceed the greater of:  
  1.12     (1) the district's referendum allowance for fiscal year 
  1.13  1994; 
  1.14     (2) 25 percent of the formula allowance; or 
  1.15     (3) for a newly reorganized district created after July 1, 
  1.16  1994, the sum of the referendum revenue authority for the 
  1.17  reorganizing districts for the fiscal year preceding the 
  1.18  reorganization, divided by the sum of the resident marginal cost 
  1.19  pupil units of the reorganizing districts for the fiscal year 
  1.20  preceding the reorganization. 
  1.21     (b) Notwithstanding subdivision 1, for fiscal year 2003 and 
  1.22  later fiscal years, a district's referendum allowance must not 
  1.23  exceed the greater of: 
  1.24     (1) the sum of:  (i) a district's referendum allowance for 
  1.25  fiscal year 1994 times 1.162 times the annual inflationary 
  2.1   increase as calculated under paragraph (b); plus (ii) its 
  2.2   referendum conversion allowance for fiscal year 2003,; 
  2.3   minus (iii) $415; 
  2.4      (2) 18.2 percent of the formula allowance times the annual 
  2.5   inflationary increase as calculated under paragraph (b); 
  2.6      (3) for a newly reorganized district created on July 1, 
  2.7   2002, the referendum revenue authority for each reorganizing 
  2.8   district in the year preceding reorganization divided by its 
  2.9   resident marginal cost pupil units for the year preceding 
  2.10  reorganization, minus $415; or 
  2.11     (4) for a newly reorganized district created after July 1, 
  2.12  2002, the referendum revenue authority for each reorganizing 
  2.13  district in the year preceding reorganization divided by its 
  2.14  resident marginal cost pupil units for the year preceding 
  2.15  reorganization. 
  2.16     (b) For purposes of this subdivision, "inflationary 
  2.17  increase" means one plus the percentage change in the Consumer 
  2.18  Price Index for urban consumers, as prepared by the United 
  2.19  States Bureau of Labor Standards, for the most recent year for 
  2.20  which data is available to the previous year.  
  2.21     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.22  payable in 2004.