1.2relating to education; expanding eligibility for the location equity revenue
1.3program; making technical changes to the calculation of location equity revenue
1.4and referendum revenue;amending Minnesota Statutes 2013 Supplement,
1.5sections 126C.10, subdivision 2e; 126C.17, subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2e,
1.8is amended to read:
1.9    Subd. 2e. Location equity revenue. (a) For a school district with any of its area
1.10located within the seven-county metropolitan area, Location equity revenue for a school
1.11district equals $424 times the adjusted pupil units of the district for that school year.
1.12(b) For all other school districts with more than 2,000 pupils in adjusted average
1.13daily membership for the fiscal year ending in the year before the levy is certified, location
1.14equity revenue equals $212 times the adjusted pupil units of the district for that year.
1.15(c) A district's location equity levy equals its location equity revenue times the lesser
1.16of one or the ratio of its referendum market value per resident pupil unit to $510,000. The
1.17location equity revenue levy must be spread on referendum market value. A district
1.18may levy less than the permitted amount.
1.19(d) (c) A district's location equity aid equals its location equity revenue less its
1.20location equity levy, times the ratio of the actual amount levied to the permitted levy.
1.21(e) A school district may elect not to participate in the location equity revenue
1.22program by a board vote taken prior to September 1 of the fiscal year before the fiscal year
1.23for which the decision not to participate becomes effective. The board resolution must
1.24state which fiscal years the district will not participate. A copy of the board resolution
1.25to not participate must be submitted to the commissioner.
2.1EFFECTIVE DATE.This section is effective for revenue in fiscal year 2016 and
2.2later.

2.3    Sec. 2. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 1, is
2.4amended to read:
2.5    Subdivision 1. Referendum allowance. (a) A district's initial referendum allowance
2.6for fiscal year 2015 equals the result of the following calculations:
2.7(1) multiply the referendum allowance the district would have received for fiscal
2.8year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
2.9elections held before July 1, 2013, by the resident marginal cost pupil units the district
2.10would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
2.11(2) add to the result of clause (1) the adjustment the district would have received
2.12under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
2.13(c), based on elections held before July 1, 2013;
2.14(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
2.15year 2015; and
2.16(4) add to the result of clause (3) any additional referendum allowance per adjusted
2.17pupil unit authorized by elections held between July 1, 2013, and December 31, 2013;
2.18(5) add to the result in clause (4) any additional referendum allowance resulting from
2.19inflation adjustments approved by the voters prior to January 1, 2014;
2.20(6) subtract from the result of clause (5), the sum of a district's actual location
2.21equity levy and location equity aid under section 126C.10, subdivision 2e, divided by the
2.22adjusted pupil units of the district for that school year; and
2.23(4) (7) if the result of clause (3) (6) is less than zero, set the allowance to zero.
2.24(b) A district's referendum allowance equals the sum of the district's initial
2.25referendum allowance for fiscal year 2015, plus any additional referendum allowance per
2.26adjusted pupil unit authorized after June 30 December 31, 2013, minus (i) the location
2.27equity revenue subtraction, and (ii) any allowances expiring in fiscal year 2016 or later,
2.28provided that the allowance may not be less than zero. For a district with more than one
2.29referendum allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17,
2.30the allowance calculated under paragraph (a), clause (3), must be divided into components
2.31such that the same percentage of the district's allowance expires at the same time as the old
2.32allowances would have expired under Minnesota Statutes 2012, section 126C.17. For a
2.33district with more than one allowance for fiscal year 2015 that expires in the same year, the
2.34reduction under paragraph (a), clause (6), to offset location equity revenue shall be made
2.35first from any allowances that do not have an inflation adjustment approved by the voters.
3.1(c) For purposes of this subdivision, a district's location equity revenue subtraction
3.2equals $424 for a district receiving location equity revenue under section 126C.10,
3.3subdivision 2d, paragraph (a), $212 for a district receiving location equity revenue under
3.4section 126C.10, subdivision 2d, paragraph (b), and zero for all other school districts.
3.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
3.6and later.