1.1                          A bill for an act 
  1.2             relating to education finance; continuing the same 
  1.3             level of compensatory revenue for districts that 
  1.4             reduce the concentration of students eligible for free 
  1.5             or reduced price meals by closing a school facility; 
  1.6             amending Minnesota Statutes 2000, section 126C.10, 
  1.7             subdivision 19.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 126C.10, 
  1.10  subdivision 19, is amended to read: 
  1.11     Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
  1.12  transportation transition allowance for fiscal year 1998 and 
  1.13  later equals the result of the following: 
  1.14     (1) if the result in subdivision 18, paragraph (a), clause 
  1.15  (iii), for fiscal year 1998 is less than the fiscal year 1996 
  1.16  base allowance, the transportation transition allowance equals 
  1.17  the fiscal year 1996 base allowance minus the result in 
  1.18  subdivision 18, paragraph (a), clause (iii); or 
  1.19     (2) if the result in subdivision 18, paragraph (a), clause 
  1.20  (iii), for fiscal year 1998 and later is greater than or equal 
  1.21  to the fiscal year 1996 base allowance, the transportation 
  1.22  transition allowance equals zero. 
  1.23     (b) A district's compensatory transition allowance equals 
  1.24  the sum of: 
  1.25     (1) the greater of zero or the difference between:  
  1.26     (1) (i) the amount of compensatory revenue the district 
  2.1   would have received under Minnesota Statutes 1996, section 
  2.2   124A.22, subdivision 3, for fiscal year 1998 computed using a 
  2.3   basic formula allowance of $3,281; and 
  2.4      (2) (ii) the amount the district receives under subdivision 
  2.5   3; divided by 
  2.6      (3) (iii) the district's actual pupil units for fiscal year 
  2.7   1998; and 
  2.8      (2) for school building closures that lead to redrawn 
  2.9   school attendance boundaries after July 1, 1999, the greater of 
  2.10  zero, or the sum of: 
  2.11     (i) the district's compensatory revenue for the year prior 
  2.12  to the closure of a school for the closed school building and 
  2.13  the buildings the students attend after the school closure; and 
  2.14     (ii) the sum of the district's compensatory revenue for the 
  2.15  school buildings attended in the year following the closure of a 
  2.16  school building. 
  2.17     (c) A district's cooperation transition allowance for 
  2.18  fiscal year 2001 and later equals the greater of zero or the 
  2.19  difference between:  
  2.20     (1) $25,000; and 
  2.21     (2) $67 times the district's resident pupil units for 
  2.22  fiscal year 2001; divided by 
  2.23     (3) the district's resident pupil units for fiscal year 
  2.24  2001. 
  2.25     (d) A district's transition allowance for fiscal years 1999 
  2.26  and 2000 is equal to the sum of its transportation transition 
  2.27  allowance and its compensatory transition allowance.  A 
  2.28  district's transition allowance for fiscal year 2001 and 
  2.29  thereafter is equal to the sum of its transportation transition 
  2.30  allowance, its compensatory transition allowance, and its 
  2.31  cooperation transition allowance. 
  2.32     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.33  fiscal year 2002 and later.