1.1                          A bill for an act 
  1.2             relating to education finance; modifying the 
  1.3             calculation of transition revenue; amending Minnesota 
  1.4             Statutes 2003 Supplement, section 126C.10, subdivision 
  1.5             31.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   126C.10, subdivision 31, is amended to read: 
  1.9      Subd. 31.  [TRANSITION REVENUE.] (a) A district's 
  1.10  transition allowance for fiscal years 2004 through 2008 equals 
  1.11  the greater of zero or the product of the ratio of the number of 
  1.12  adjusted marginal cost pupil units the district would have 
  1.13  counted for fiscal year 2004 under Minnesota Statutes 2002 to 
  1.14  the district's adjusted marginal cost pupil units for fiscal 
  1.15  year 2004, times the difference between:  (1) the lesser of the 
  1.16  district's general education revenue less its compensatory 
  1.17  revenue for that year plus the compensatory revenue it would 
  1.18  have received for fiscal year 2004 according to Minnesota 
  1.19  Statutes 2002 per adjusted marginal cost pupil unit for fiscal 
  1.20  year 2003 or the amount of general education revenue the 
  1.21  district would have received per adjusted marginal cost pupil 
  1.22  unit for fiscal year 2004 according to Minnesota Statutes 2002, 
  1.23  and (2) the district's general education revenue for fiscal year 
  1.24  2004 excluding transition revenue divided by the number of 
  1.25  adjusted marginal cost pupil units the district would have 
  2.1   counted for fiscal year 2004 under Minnesota Statutes 2002.  A 
  2.2   district's transition allowance for fiscal year 2009 and later 
  2.3   is zero. 
  2.4      (b) A district's transition revenue for fiscal year 2004 
  2.5   and later equals the product of the district's transition 
  2.6   allowance times the district's adjusted marginal cost pupil 
  2.7   units. 
  2.8      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.9   fiscal year 2004.