1.1                          A bill for an act 
  1.2             relating to education finance; increasing funding for 
  1.3             districts with declining enrollment; amending 
  1.4             Minnesota Statutes 2000, section 126C.05, subdivisions 
  1.5             5 and 6.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 126C.05, 
  1.8   subdivision 5, is amended to read: 
  1.9      Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
  1.10  for a district or charter school means the sum of: 
  1.11     (1) the number of pupil units served, according to 
  1.12  subdivision 7, plus 
  1.13     (2) pupil units according to subdivision 1 for whom the 
  1.14  district or charter school pays tuition under section 123A.18, 
  1.15  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  1.16  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  1.17  125A.65, minus 
  1.18     (3) pupil units according to subdivision 1 for whom the 
  1.19  district or charter school receives tuition under section 
  1.20  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  1.21  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  1.22  125A.65. 
  1.23     (b) Adjusted marginal cost pupil units means the greater of:
  1.24     (1) the sum of .77 .50 times the pupil units defined in 
  1.25  paragraph (a) for the current school year and .23 .50 times the 
  2.1   pupil units defined in paragraph (a) for the previous school 
  2.2   year; or 
  2.3      (2) the number of adjusted pupil units defined in paragraph 
  2.4   (a) for the current school year. 
  2.5      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.6   fiscal years 2002 and later.  
  2.7      Sec. 2.  Minnesota Statutes 2000, section 126C.05, 
  2.8   subdivision 6, is amended to read: 
  2.9      Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
  2.10  for a district means the number of pupil units according to 
  2.11  subdivision 1 residing in the district. 
  2.12     (b) Resident marginal cost pupil units means the greater of:
  2.13     (1) the sum of .77 .50 times the pupil units defined in 
  2.14  paragraph (a) for the current year and .23 .50 times the pupil 
  2.15  units defined in paragraph (a) for the previous school year; or 
  2.16     (2) the number of resident pupil units defined in paragraph 
  2.17  (a) for the current school year. 
  2.18     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.19  fiscal years 2002 and later.