1.1 	A bill for an act
1.2 	relating to education finance; restoring funding for certain prekindergarten 
1.3 	programs;amending Minnesota Statutes 2005 Supplement, section 126C.10, 
1.4 	subdivision 31.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 31, 
1.7 	is amended to read:
1.8 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
1.9 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
1.10 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
1.11 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
1.12 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
1.13 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
1.14 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
1.15 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
1.16 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
1.17 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
1.18 	(b) A district's transition revenue for fiscal year 2006 and later equals the sum of (1) 
1.19 	the product of the district's transition allowance times the district's adjusted marginal cost 
1.20 	pupil units plus (2) the amount of referendum revenue under section 126C.17 and general 
1.21 	education revenue, excluding transition revenue, for fiscal year 2004 attributable to pupils 
1.22 	four or five years of age on September 1, 2003, enrolled in a prekindergarten program 
1.23 	implemented by the district before July 1, 2003, and reported as kindergarten pupils under 
1.24 	section 126C.05, subdivision 1, for fiscal year 2004, plus (3) the amount of compensatory 
2.1 	education revenue under subdivision 3 for fiscal year 2005 attributable to pupils four years 
2.2 	of age on September 1, 2003, enrolled in a prekindergarten program implemented by the 
2.3 	district before July 1, 2003, and reported as kindergarten pupils under section 126C.05, 
2.4 	subdivision 1, for fiscal year 2004 multiplied by .04.

2.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007.