1.1 	A bill for an act
1.2 	relating to education finance; reducing the operating capital levy by restoring 
1.3 	the operating capital equalizing factor; amending Minnesota Statutes 2005 
1.4 	Supplement, section 126C.10, subdivision 13a.
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 13a, 
1.7 	is amended to read:
1.8 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
1.9 	year 2007 and later, a district may levy an amount not more than the product of its 
1.10 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
1.11 	adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
1.12 	equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 
1.13 	2006, and $10,700 for fiscal year 2007, and $22,222 for fiscal year 2008  and later.

1.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.