1.1 	A bill for an act
1.2 	relating to education finance; providing full funding for K-12 pupil transportation;
1.3 	amending Minnesota Statutes 2010, section 126C.10, subdivisions 1, 18.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:
1.6 		Subdivision 1.General education revenue. For fiscal year 2006 and later, 
1.7 	the general education revenue for each district equals the sum of the district's basic 
1.8 	revenue, extended time revenue, gifted and talented revenue, basic skills revenue, training 
1.9 	and experience revenue, secondary sparsity revenue, elementary sparsity revenue, 
1.10 	transportation ~~sparsity~~ revenue, total operating capital revenue, equity revenue, alternative 
1.11 	teacher compensation revenue, and transition revenue.

1.12 	Sec. 2. Minnesota Statutes 2010, section 126C.10, subdivision 18, is amended to read:
1.13 		Subd. 18.Transportation ~~sparsity~~ revenue ~~allowance~~. (a) A district's pupil
1.14 	transportation  revenue equals the sum of the district's transportation sparsity revenue and 
1.15 	its transportation cost revenue.
1.16 	(b) A district's transportation sparsity allowance equals the greater of zero or the 
1.17 	result of the following computation:
1.18 	(i) Multiply the formula allowance according to subdivision 2, by .1469.
1.19 	(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 
1.20 	26/100 power.
1.21 	(iii) Multiply the result in clause (ii) by the district's density index raised to the 
1.22 	13/100 power.
1.23 	(iv) Multiply the formula allowance according to subdivision 2, by .0485.
2.1 	(v) Subtract the result in clause (iv) from the result in clause (iii).
2.2 	~~(b)~~ (c) Transportation sparsity revenue is equal to the transportation sparsity 
2.3 	allowance times the adjusted marginal cost pupil units.
2.4 	(d) A district's transportation cost revenue equals the greater of zero or the difference 
2.5 	between:
2.6 	(1) the district's total cost for pupil transportation, including depreciation, for the 
2.7 	previous year; and
2.8 	(2) the sum of (i) 4.85 percent of the district's basic revenue for the previous fiscal 
2.9 	year, (ii) transportation sparsity revenue under paragraph (c), and (iii) the district's charter 
2.10 	school transportation adjustment for the previous year.

2.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2012 
2.12 	and later.