1.1                          A bill for an act
  1.2             relating to education; increasing the general 
  1.3             education formula allowance; offsetting operating 
  1.4             referenda; increasing operating referenda equalization 
  1.5             aid; appropriating money; amending Minnesota Statutes 
  1.6             1996, section 124A.03, subdivisions 1b, 1f, and 3c; 
  1.7             Minnesota Statutes 1997 Supplement, sections 124A.03, 
  1.8             subdivision 1c; and 124A.22, subdivision 2. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 124A.03, 
  1.11  subdivision 1b, is amended to read: 
  1.12     Subd. 1b.  [REFERENDUM ALLOWANCE.] A district's referendum 
  1.13  revenue allowance equals the referendum revenue authority for 
  1.14  that year divided by its actual pupil units for that school year 
  1.15  less the referendum revenue subtraction computed under 
  1.16  subdivisions 3b and 3c. 
  1.17     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  1.18  124A.03, subdivision 1c, is amended to read: 
  1.19     Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
  1.20  subdivision 1b, a district's referendum allowance must not 
  1.21  exceed the greater of:  
  1.22     (1) the district's referendum allowance for fiscal year 
  1.23  1994; 
  1.24     (2) 25 16 percent of the formula allowance minus $300 for 
  1.25  fiscal year 1997 2000 and later; or 
  1.26     (3) for a newly reorganized district created after July 1, 
  1.27  1994, the sum of the referendum revenue authority for the 
  2.1   reorganizing districts for the fiscal year preceding the 
  2.2   reorganization, divided by the sum of the actual pupil units of 
  2.3   the reorganizing districts for the fiscal year preceding the 
  2.4   reorganization. 
  2.5      Sec. 3.  Minnesota Statutes 1996, section 124A.03, 
  2.6   subdivision 1f, is amended to read: 
  2.7      Subd. 1f.  [REFERENDUM EQUALIZATION REVENUE.] A district's 
  2.8   referendum equalization revenue equals $315 16 percent times the 
  2.9   formula allowance for that year times the district's actual 
  2.10  pupil units for that year. 
  2.11     Referendum equalization revenue must not exceed a 
  2.12  district's total referendum revenue for that year. 
  2.13     Sec. 4.  Minnesota Statutes 1996, section 124A.03, 
  2.14  subdivision 3c, is amended to read: 
  2.15     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
  2.16  year 1998 2000 and later, a district's referendum allowance for 
  2.17  referendum authority under subdivision 1c is reduced as provided 
  2.18  in this subdivision.  
  2.19     (a) For referendum revenue authority approved before June 
  2.20  1, 1996, and effective for fiscal year 1997, the reduction 
  2.21  equals the amount of the reduction computed for fiscal year 1997 
  2.22  under subdivision 3b plus $315 per pupil unit.  
  2.23     (b) For referendum revenue authority approved before June 
  2.24  1, 1996, and effective beginning in fiscal year 1998, the 
  2.25  reduction equals the amount of the reduction computed for fiscal 
  2.26  year 1998 under subdivision 3b plus $315 per pupil unit.  
  2.27     (c) For referendum revenue authority approved after May 31, 
  2.28  1996, and before July 1, 1999, the reduction is $315 per pupil 
  2.29  unit. 
  2.30     (d) For referendum revenue authority approved after June 
  2.31  30, 1999, there is no reduction.  
  2.32     (d) (e) For districts with more than one referendum 
  2.33  authority, the reduction shall be computed separately for each 
  2.34  authority.  The reduction shall be applied first to authorities 
  2.35  levied against tax capacity, and then to authorities levied 
  2.36  against referendum market value.  For districts with more than 
  3.1   one authority levied against net tax capacity or against 
  3.2   referendum market value, the referendum allowance reduction 
  3.3   shall be applied first to the authority with the earliest 
  3.4   expiration date. 
  3.5      (e) (f) For a newly reorganized district created after July 
  3.6   1, 1996, the referendum revenue reduction equals the lesser of 
  3.7   the amount calculated for the combined district, or the sum of 
  3.8   the amounts by which each of the reorganizing district's 
  3.9   supplemental revenue reduction exceeds its respective 
  3.10  supplemental revenue allowances calculated for the year 
  3.11  preceding the year of reorganization. 
  3.12     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
  3.13  124A.22, subdivision 2, is amended to read: 
  3.14     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  3.15  district equals the formula allowance times the actual pupil 
  3.16  units for the school year.  The formula allowance for fiscal 
  3.17  year 1997 is $3,505.  The formula allowance for fiscal year 1998 
  3.18  is $3,581 and, the formula allowance for fiscal year 1999 is 
  3.19  $3,530, and the formula allowance for fiscal year 2000 and 
  3.20  subsequent fiscal years is $3,530 $3,845. 
  3.21     Sec. 6.  [EFFECTIVE DATE.] 
  3.22     Sections 1 to 5 are effective July 1, 1998, for revenue for 
  3.23  fiscal year 2000 and later.