1.1                          A bill for an act 
  1.2             relating to education finance; modifying the 
  1.3             definition of equity revenue; adding a small schools 
  1.4             factor; appropriating money; amending Minnesota 
  1.5             Statutes 2000, section 126C.10, subdivisions 24, 25, 
  1.6             27; repealing Minnesota Statutes 2000, section 
  1.7             126C.10, subdivision 28. 
  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 24, is amended to read: 
  1.11     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
  1.12  qualifies for equity revenue if: 
  1.13     (1) the school district's adjusted marginal cost pupil unit 
  1.14  amount of basic revenue, supplemental revenue, transition 
  1.15  revenue, and referendum revenue is less than the value of the 
  1.16  school district at or immediately above the ~~90th~~ 95th percentile 
  1.17  of school districts ~~in its equity region~~ for those revenue 
  1.18  categories; and 
  1.19     (2) the school district's administrative offices are not 
  1.20  located in a city of the first class on July 1, 1999. 
  1.21     (b) Equity revenue for a qualifying district ~~that receives~~ 
  1.22  ~~referendum revenue under section 126C.17, subdivision 4,~~ equals 
  1.23  the product of (1) the district's adjusted marginal cost pupil 
  1.24  units for that year; times (2) the sum of (i) ~~$10~~ $8, plus (ii) 
  1.25  ~~$30~~ $64, times the school district's equity index computed under 
  1.26  subdivision 27; times (3) the school district's small school 
  2.1   index number under subdivision 29. 
  2.2      (c) Equity revenue ~~for a qualifying district that does not~~ 
  2.3   ~~receive referendum revenue under section 126C.17, subdivision 4,~~ 
  2.4   ~~equals the product of the district's adjusted marginal cost~~ 
  2.5   ~~pupil units for that year times $10~~ must not exceed $150 times 
  2.6   the adjusted marginal cost pupil units for that year. 
  2.7      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.8   fiscal year 2002 and later. 
  2.9      Sec. 2.  Minnesota Statutes 2000, section 126C.10, 
  2.10  subdivision 25, is amended to read: 
  2.11     Subd. 25.  [~~REGIONAL~~ STATEWIDE EQUITY GAP.] The ~~regional~~ 
  2.12  statewide equity gap equals the difference between the value of 
  2.13  the school district at or immediately above the fifth percentile 
  2.14  of adjusted general revenue per adjusted marginal cost pupil 
  2.15  unit and the value of the school district at or immediately 
  2.16  above the ~~90th~~ 95th percentile of adjusted general revenue per 
  2.17  adjusted marginal cost pupil unit. 
  2.18     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.19  fiscal year 2002 and later. 
  2.20     Sec. 3.  Minnesota Statutes 2000, section 126C.10, 
  2.21  subdivision 27, is amended to read: 
  2.22     Subd. 27.  [DISTRICT EQUITY INDEX.] A district's equity 
  2.23  index equals the ratio of the sum of the district equity gap 
  2.24  amount to the ~~regional~~ statewide equity gap amount. 
  2.25     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.26  fiscal year 2002 and later. 
  2.27     Sec. 4.  [SMALL SCHOOL INDEX.] 
  2.28     The small school index for a district with 1,500 or fewer 
  2.29  adjusted marginal cost pupil units for that school year equals 
  2.30  one plus the product of two and the ratio of 200 to the 
  2.31  district's adjusted marginal cost pupil units for that year.  
  2.32  The small school index for a district with more than 1,500 
  2.33  adjusted marginal cost pupil units for that year equals 1.0.  
  2.34     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.35  fiscal year 2002 and later. 
  2.36     Sec. 5.  [APPROPRIATION.] 
  3.1      $....... in fiscal year 2002 and $....... in fiscal year 
  3.2   2003 are appropriated from the general fund to the commissioner 
  3.3   of children, families, and learning for the purpose of funding 
  3.4   school district equity.  This appropriation is in addition to 
  3.5   any other appropriation for that purpose. 
  3.6      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.7   fiscal year 2002 and later. 
  3.8      Sec. 6.  [REPEALER.] 
  3.9      Minnesota Statutes 2000, section 126C.10, subdivision 28, 
  3.10  is repealed. 
  3.11     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.12  fiscal year 2002 and later.