1.1 	A bill for an act
1.2 	relating to education finance; providing for an
1.3 	approved school finance system; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. SCHOOL FINANCE STUDY.
 1.6 	(a) The commissioner of education must contract with an
1.7 	independent contractor that has extensive experience working
1.8 	with various states on education finance systems to continue and
1.9 	complete the work done by the governor's education funding task
1.10 	force included in the June 2004 report, Investing in Our
1.11 	Future.  The commissioner must contract with a firm other than
1.12 	the consulting firm performing services for and submitting a
1.13 	report on behalf of the governor's education funding task force.
1.14 	(b) The contractor must do the following:
1.15 	(1) conduct an in-depth analysis of the governor's
1.16 	education funding task force report, Investing in Our Future,
1.17 	dated June 2004, focusing on the data produced by the
1.18 	professional judgment panel study included in the report;
1.19 	(2) convene a meeting in Minnesota to help gather any
1.20 	necessary additional data that is not contained in the
1.21 	governor's task force report or to further validate some of the
1.22 	report's existing data;
1.23 	(3) determine the dollar value of an instructional services
1.24 	allocation, including cost estimates for each school district
2.1 	adjusting the allocation for individual student and school
2.2 	district characteristics; and 
2.3 	(4) conduct outreach and support to explain its findings to
2.4 	appropriate officials in Minnesota.
2.5 	(c) In addition to the requirements in paragraph (b), the
2.6 	contractor must analyze data from Minnesota school districts
2.7 	that have proven to be successful in educating their students to
2.8 	meet the state's academic standards.  The contractor must use a
2.9 	statistical analysis to help explain differences in spending
2.10 	across school districts while controlling for student
2.11 	performance.
2.12 	(d) The commissioner must report on the findings on the
2.13 	contract to the legislative committees having jurisdiction over
2.14 	kindergarten through grade 12 finance before December 15, 2005.

2.15 	EFFECTIVE DATE. This section is effective the day
2.16 	following final enactment.

2.17 	Sec. 2. APPROPRIATION.
 2.18 		Subdivision 1.Department of education. The sum
2.19 	indicated in this section is appropriated from the general fund
2.20 	to the Department of Education for the fiscal year designated.
2.21 		Subd. 2.Improved school finance system contract. For a
2.22 	contract to follow up on the work of the governor's education
2.23 	funding task force:
2.24 	$175,000 .....2006