1.1                          A bill for an act 
  1.2             relating to education finance; providing for a balance 
  1.3             requirement in general education revenue; amending 
  1.4             Minnesota Statutes 2002, section 126C.10, by adding a 
  1.5             subdivision; Minnesota Statutes 2003 Supplement, 
  1.6             section 126C.10, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.9   126C.10, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
  1.11  year 2003, the general education revenue for each district 
  1.12  equals the sum of the district's basic revenue, basic skills 
  1.13  revenue, training and experience revenue, secondary sparsity 
  1.14  revenue, elementary sparsity revenue, transportation sparsity 
  1.15  revenue, total operating capital revenue, and equity revenue. 
  1.16     (b) For fiscal year 2004 and later, the general education 
  1.17  revenue for each district equals the sum of the district's basic 
  1.18  revenue, extended time revenue, basic skills revenue, training 
  1.19  and experience revenue, secondary sparsity revenue, elementary 
  1.20  sparsity revenue, transportation sparsity revenue, total 
  1.21  operating capital revenue, equity revenue, and transition 
  1.22  revenue. 
  1.23     (c) For fiscal year 2005 and later, the commissioner shall 
  1.24  adjust general education revenue, excluding referendum revenue, 
  1.25  for each district to meet the balance requirement of subdivision 
  1.26  34. 
  2.1      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.2   fiscal year 2005. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 126C.10, is 
  2.4   amended by adding a subdivision to read: 
  2.5      Subd. 34.  [BALANCE REQUIREMENT.] The sum of a district's 
  2.6   general education revenue under subdivision 1, paragraph (b), 
  2.7   integration revenue under section 124D.86, and career and 
  2.8   technical revenue under section 126C.457 divided by its average 
  2.9   daily membership shall not exceed the greater of: 
  2.10     (1) the product of the formula allowance multiplied by 1.5; 
  2.11  or 
  2.12     (2) the sum of the district's fiscal year 2004 general 
  2.13  education revenue under subdivision 1, paragraph (b), 
  2.14  integration revenue under section 124D.86, and career and 
  2.15  technical revenue under section 126C.457 divided by its fiscal 
  2.16  year 2004 average daily membership. 
  2.17     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.18  fiscal year 2005.