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S.F. No. 76 - Long-term Facilities Maintenance Revenue (as modified by author's A-1 amendment)
 
Author: Senator Kevin L. Dahle
 
Prepared By: Bjorn E. Arneson, Senate Analyst (651/296-3812)
 
Date: January 20, 2015



 

This bill establishes a new, equalized, long-term facilities maintenance revenue for school districts, charter schools, intermediate school districts, and other cooperative units.  It combines certain elements of three existing programs into the new revenue program: alternative facilities revenue, health and safety revenue, and deferred maintenance revenue.  Beginning in fiscal year 2017, the per-pupil revenue allowance for districts not currently eligible for alternative facilities revenue would increase year by year until 2019.  Beginning in fiscal year 2020, a school board would have the authority to levy the amount necessary to implement its approved ten-year facility plan.

Section 1. Definitions [Debt Service Revenue]. Makes conforming change related to repeal of alternative facilities revenue and establishment of long-term facilities maintenance revenue.

Effective date. Section effective for revenue in fiscal year 2017 and later (taxes payable 2016).

Section 2. Debt service equalization revenue. Makes conforming change related to repeal of alternative facilities revenue.

Effective date. Section effective for revenue in fiscal year 2017 and later (taxes payable 2016).

Section 3. Capital expenditure; health and safety. Repeals subdivisions related to a district’s health and safety revenue application and information required for audits, health and safety revenue/levy/aid, restrictions on allowed uses, appeals process, and aid proration.  Preserves the list of allowed expenditures for health and safety revenue under current law and the authority of the department to contract for optional project management assistance for districts.

Effective date. Section effective for revenue in fiscal year 2017 and later (taxes payable 2016).

Section 4. Long-term facilities maintenance revenue.

Subdivision 1. Long-term facilities maintenance revenue. Beginning in fiscal year 2017, establishes long-term facilities maintenance revenue.  In fiscal years 2017, 2018, and 2019, provides that the maximum revenue per pupil is the greater of $300, $400, and $500, respectively, or the amount the district would have received in that year under the old law.  For fiscal year 2020 and later, authorizes the school board to make the levy necessary to implement the district’s ten year plan with no per-pupil cap.

Subdivision 2. Long-term facilities maintenance revenue for a charter school. In fiscal years 2017, 2018, and 2019, provides that the revenue per pupil is $59, $108, and $163, respectively.  For fiscal year 2020 and later, provides that the revenue per pupil is adjusted for inflation (2019 base year).

Subdivision 3. Intermediate districts and other cooperative units. Authorizes a district that is a member of an intermediate district or other cooperative unit to levy for its proportionate share of the costs of long-term facilities maintenance costs of the intermediate districts or cooperative unit.  Requires approval of each member board and the Commissioner of Education.

Subdivision 4. Facilities plans. Requires that a district or intermediate district have a ten-year facilities maintenance plan adopted by its board and approved by the commissioner in order to generate revenue.  Requires certain elements in the plan and that the plan be updated annually.

Subdivision 5. Bond authorization. Authorizes districts to issue bonds to finance facilities plans under this section.

Subdivision 6. Levy authorization. Authorizes districts to make a levy to service outstanding bonds or to pay project costs on an annual basis.

Subdivision 7. Long-term facilities maintenance equalization revenue. Equalizes the long-term facilities maintenance revenue.  Provides that the portion of revenue eligible for equalization in 2017, 2018, and 2019, is capped at $300, $400, and $500 per pupil respectively.  In fiscal year 2020, a district’s entire long-term facilities maintenance revenue is eligible for equalization.

Subdivision 8. Long-term facilities maintenance equalization levy. Establishes the long-term facilities maintenance equalization levy.  Provides that the equalizing factor is 125 percent of the state average adjusted net tax capacity per adjusted pupil unit in the third prior year.

Subdivision 9. Long-term facilities maintenance equalization aid. Provides that a district's long-term facilities maintenance equalization aid equals the difference between its long-term facilities maintenance equalization revenue and its long-term facilities maintenance equalization levy.

Subdivision 10. Long-term facilities maintenance unequalized levy. Authorizes a district to make an unequalized levy for the revenue that exceeds the equalized portion.

Subdivision 11. Allowed uses for long-term facilities maintenance revenue. Specifies the allowed uses for long-term facilities maintenance revenue.

Subdivision 12. Restrictions on long-term facilities maintenance revenue. Specifies the restrictions on uses of long-term facilities maintenance revenue.

Subdivision 13. Reserve account. Requires that revenue used for projects on a pay-as-you-go basis be maintained in a reserve account in the general fund.

 Effective date. Section effective for revenue in fiscal year 2017 and later (taxes payable 2016).

Section 5. Appropriations. Appropriates money for long-term facilities maintenance equalization aid in fiscal year 2017.

Section 6. Repealer. Repeals sections 123B.59 (Alternative Facilities Program) and 123B.591 (Deferred Maintenance Revenue Program).

Effective date. Section effective for revenue in fiscal year 2017 and later (taxes payable 2016).

 

 

 

 

 

 
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