1.1                          A bill for an act 
  1.2             relating to education finance; enhancing equity by 
  1.3             adding a small school enhanced equity revenue 
  1.4             component to general education revenue; amending 
  1.5             Minnesota Statutes 1998, section 126C.10, by adding a 
  1.6             subdivision; Minnesota Statutes 1999 Supplement, 
  1.7             section 126C.10, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.10  126C.10, subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
  1.12  year 2000 2001 and thereafter, the general education revenue for 
  1.13  each district equals the sum of the district's basic revenue, 
  1.14  basic skills revenue, training and experience revenue, secondary 
  1.15  sparsity revenue, elementary sparsity revenue, transportation 
  1.16  sparsity revenue, total operating capital revenue, equity 
  1.17  revenue, small school enhanced equity revenue, referendum offset 
  1.18  adjustment, transition revenue, and supplemental revenue. 
  1.19     Sec. 2.  Minnesota Statutes 1998, section 126C.10, is 
  1.20  amended by adding a subdivision to read: 
  1.21     Subd. 29.  [SMALL SCHOOL ENHANCED EQUITY REVENUE.] (a) A 
  1.22  district qualifies for small school enhanced equity revenue if:  
  1.23  (1) the sum of its basic, transition, supplemental, and 
  1.24  referendum revenue is less than $4,725 per adjusted marginal 
  1.25  cost pupil unit; (2) its total adjusted marginal cost pupil 
  1.26  units for that year is less than $3,000; and (3) its adjusted 
  2.1   marginal cost pupil units are fewer in the current year than in 
  2.2   the previous year. 
  2.3      (b) A district's small school enhanced equity revenue 
  2.4   equals:  (1) $100; times (2) the district's adjusted marginal 
  2.5   cost pupil units for that year; times (3) the lesser of one, or 
  2.6   the ratio of the percent change in the district's adjusted 
  2.7   marginal cost pupil units from the previous year to the current 
  2.8   year to four percent. 
  2.9      Sec. 3.  [EFFECTIVE DATE.] 
  2.10     Sections 1 and 2 are effective for revenue for fiscal years 
  2.11  2001 and later.