1.1 	A bill for an act
1.2 	relating to education finance; authorizing school
1.3 	districts to replace state shortfalls in regular
1.4 	special education funding with local levy authority;
1.5 	authorizing a discretionary levy; amending Minnesota
1.6 	Statutes 2004, section 125A.76, by adding a
1.7 	subdivision; proposing coding for new law in Minnesota
1.8 	Statutes, chapter 126C.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 125A.76, is
1.11 	amended by adding a subdivision to read:
1.12 		Subd. 8.Levy to replace regular special education
1.13 	funding lost to state cap. Each year, a district may levy an
1.14 	amount not to exceed the difference between the school
1.15 	district's special education base revenue for that year computed
1.16 	under subdivision 3 and the district's special education aid
1.17 	computed under subdivision 5.
1.18 	
EFFECTIVE DATE. This section is effective for revenue for
1.19 	fiscal year 2006.

1.20 	Sec. 2. [126C.105] DISCRETIONARY LEVY.
1.21 		Subdivision 1.Levy authority. Each school district may
1.22 	make a levy not to exceed $100 times the adjusted marginal cost
1.23 	pupil units of the school district for that year.
1.24 		Subd. 2.Eligible uses. Revenue received under this
1.25 	section must be used for pupil transportation services, deferred
1.26 	maintenance needs, or technology enhancements.
1.27 	
EFFECTIVE DATE. This section is effective for taxes
2.1 	payable in 2006.