1.1                          A bill for an act 
  1.2             relating to education finance; using a five-year 
  1.3             average enrollment to calculate declining pupil 
  1.4             revenue; amending Minnesota Statutes 2000, section 
  1.5             126C.05, subdivisions 5, 6, and 14.  
  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 times the pupil units defined in 
  1.25  paragraph (a) for the current school year and .23 times the 
  2.1   pupil units defined in paragraph (a) for the four previous 
  2.2   school year years divided by five; 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 times the pupil units defined in 
  2.14  paragraph (a) for the current year and .23 times the pupil units 
  2.15  defined in paragraph (a) for the four previous school year years 
  2.16  divided by five; or 
  2.17     (2) the number of resident pupil units defined in paragraph 
  2.18  (a) for the current school year. 
  2.19     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.20  fiscal years 2002 and later. 
  2.21     Sec. 3.  Minnesota Statutes 2000, section 126C.05, 
  2.22  subdivision 14, is amended to read: 
  2.23     Subd. 14.  [COMPUTING PUPIL UNITS FOR A PRIOR YEAR YEARS.] 
  2.24  In computing pupil units for a prior year years, the number of 
  2.25  pupil units shall be adjusted to reflect any change for the 
  2.26  current year in relative weightings by grade level or category 
  2.27  of special assistance, any change in measurement from average 
  2.28  daily attendance to average daily membership and any change in 
  2.29  school district boundaries, but not for the addition for the 
  2.30  first time in the current year of a specified category of 
  2.31  special assistance as provided in subdivision 1, clause (4), or 
  2.32  for the change from resident to adjusted pupil units. 
  2.33     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.34  fiscal years 2002 and later.