1.1                          A bill for an act 
  1.2             relating to education; modifying debt service 
  1.3             equalization aid and levy; amending Minnesota Statutes 
  1.4             1994, section 124.95, subdivisions 3 and 4. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 124.95, 
  1.7   subdivision 3, is amended to read: 
  1.8      Subd. 3.  [DEBT SERVICE EQUALIZATION REVENUE.] ~~(a)~~ For 
  1.9   fiscal years 1995 and later, the debt service equalization 
  1.10  revenue of a district equals the eligible debt service revenue 
  1.11  minus the amount raised by a levy of ten percent times the 
  1.12  adjusted net tax capacity of the district. 
  1.13     ~~(b) For fiscal year 1993, debt service equalization revenue~~ 
  1.14  ~~equals one-third of the amount calculated in paragraph (a).~~ 
  1.15     ~~(c) For fiscal year 1994, debt service equalization revenue~~ 
  1.16  ~~equals two-thirds of the amount calculated in paragraph (a).~~ 
  1.17     Sec. 2.  Minnesota Statutes 1994, section 124.95, 
  1.18  subdivision 4, is amended to read: 
  1.19     Subd. 4.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
  1.20  service equalization revenue for fiscal years 1996 and later, a 
  1.21  district must levy an amount not to exceed the sum of: 
  1.22     (1) the lesser of the district's debt service equalization 
  1.23  revenue or an amount equal to ten percent times the adjusted net 
  1.24  tax capacity of the district times the lesser of one or the 
  1.25  ratio of: 
  2.1      ~~(1)~~ (i) the quotient derived by dividing the adjusted net 
  2.2   tax capacity of the district for the year before the year the 
  2.3   levy is certified by the actual pupil units in the district for 
  2.4   the school year ending in the year prior to the year the levy is 
  2.5   certified; to 
  2.6      ~~(2)~~ (ii) 50 percent of the equalizing factor as defined in 
  2.7   section 124A.02, subdivision 8, for the year to which the levy 
  2.8   is attributable; and 
  2.9      (2) the greater of zero or the amount of a district's debt 
  2.10  service equalization revenue exceeding ten percent times the 
  2.11  adjusted net tax capacity of the district times the lesser of 
  2.12  one or the ratio of: 
  2.13     (i) the quotient derived by dividing the adjusted net tax 
  2.14  capacity of the district for the year before the year the levy 
  2.15  is certified by the actual pupil units in the district for the 
  2.16  school year ending in the year prior to the year the levy is 
  2.17  certified; to 
  2.18     (ii) 100 percent of the equalizing factor as defined in 
  2.19  section 124A.02, subdivision 8, for the year to which the levy 
  2.20  is attributable.