1.1 	A bill for an act
1.2 	relating to education finance; increasing the equalizing factor for the debt service 
1.3 	equalization program;amending Minnesota Statutes 2006, section 123B.53, 
1.4 	subdivision 5.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:
1.7 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
1.8 	district equals the sum of the first tier equalized debt service levy and the second tier 
1.9 	equalized debt service levy.
1.10 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
1.11 	service equalization revenue times the lesser of one or the ratio of:
1.12 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
1.13 	the year before the year the levy is certified by the adjusted pupil units in the district for 
1.14 	the school year ending in the year prior to the year the levy is certified; to
1.15 	(2) $3,200 in fiscal year 2007 and 2008, and $5,500 in fiscal year 2009 and later.
1.16 	(c) A district's second tier equalized debt service levy equals the district's second tier 
1.17 	debt service equalization revenue times the lesser of one or the ratio of:
1.18 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
1.19 	the year before the year the levy is certified by the adjusted pupil units in the district for 
1.20 	the school year ending in the year prior to the year the levy is certified; to
1.21 	(2) $8,000.

1.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.