1.1 	A bill for an act
1.2 	relating to education finance; authorizing school districts to replace special 
1.3 	education revenue lost to the statewide special education appropriations caps;
1.4 	proposing coding for new law in Minnesota Statutes, chapter 125A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [125A.795] SPECIAL EDUCATION PRORATION REPLACEMENT 
1.7 	REVENUE.
1.8 		Subdivision 1.Revenue. A school district's special education proration replacement 
1.9 	revenue equals the sum of:
1.10 	(1) the difference between its initial special education aid under section 125A.76, 
1.11 	subdivision 2, and its special education aid under section 125A.76, subdivision 5, for 
1.12 	that year; and
1.13 	(2) the difference between the district's initial special education excess cost aid 
1.14 	under section 125A.79, subdivision 5, recalculated to reflect the computation of the 
1.15 	regular special education aid with no statewide appropriations cap, and the district's actual 
1.16 	excess cost aid for that year.
1.17 		Subd. 2.Equalized levy. A district's special education equalized levy equals the 
1.18 	district's special education proration replacement revenue times the lesser of one or the 
1.19 	ratio of the district's referendum market value per resident marginal cost pupil unit to 
1.20 	$476,000.
1.21 		Subd. 3.Equalized aid. A school district's special education equalized aid equals 
1.22 	the difference between its special education proration replacement revenue and its special 
1.23 	education equalized levy. If the district does not levy the entire amount permitted under 
1.24 	subdivision 2, the equalized aid must be reduced in proportion to the actual amount levied. 

2.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2014 
2.2 	and later.