1.1                          A bill for an act 
  1.2             relating to education finance; granting an 
  1.3             inflationary increase in operating referendum revenue 
  1.4             allowances; amending Minnesota Statutes 2000, section 
  1.5             126C.17, subdivision 2.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 126C.17, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
  1.10  subdivision 1, a district's referendum allowance must not exceed 
  1.11  the greater of:  
  1.12     (1) the district's referendum allowance for fiscal year 
  1.13  1994 multiplied by the inflation factor established in paragraph 
  1.14  (b); 
  1.15     (2) 25 percent of the formula allowance; or 
  1.16     (3) for a newly reorganized district created after July 1, 
  1.17  1994, the sum of the referendum revenue authority for the 
  1.18  reorganizing districts for the fiscal year preceding the 
  1.19  reorganization, divided by the sum of the resident marginal cost 
  1.20  pupil units of the reorganizing districts for the fiscal year 
  1.21  preceding the reorganization. 
  1.22     (b) The operating referendum inflation factor equals the 
  1.23  ratio of the consumer price index for urban consumers as 
  1.24  prepared by the United States Department of Labor, for the most 
  1.25  recently available year to the consumer price index for urban 
  2.1   consumers for 1994. 
  2.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
  2.3   for revenue for fiscal years 2002 and later.