Minnesota Legislature
HF 723
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to education; clarifying the requirements for a structurally balanced
school district budget; amending Minnesota Statutes 2006, section 123B.749.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 123B.749, is amended to read:
123B.749 STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.
new text begin Subdivision 1. new text end
new text begin Board resolution. new text end
(a) deleted text begin Prior todeleted text end new text begin Before new text end approving a collective
bargaining agreement that does not result from an interest arbitration decision, a school
board must determine by board resolution that the proposed agreement will not cause
structural imbalance in the district's budget during the new text begin agreement new text end period deleted text begin of the agreementdeleted text end .
(b) A school board may deleted text begin onlydeleted text end determine that an agreement will not cause structural
imbalance new text begin only new text end if expenditures will not exceed available funds, taking into account:
(1) current state aid formulas; and
(2) reasonable and comprehensive projections of ongoing revenues and expenditures
for the period of the agreement. deleted text begin It is expected thatdeleted text end new text begin The board must not use new text end onetime
revenue deleted text begin may not be useddeleted text end for ongoing expenditures. new text begin Any amount in excess of the board's
resolution for the district's general fund balance is not onetime revenue under this section.
new text end The school board must make available with the resolution a summary of the projections
and calculations supporting the determination. The projections and calculations must
include state aid formulas, pupil units, and employee costsdeleted text begin , includingdeleted text end new text begin that reflect new text end the terms
of new text begin all applicable new text end labor agreements, including the agreement under consideration, new text begin its new text end fringe
benefits, severance pay, and staff changes.
(c) In addition to the determination deleted text begin required indeleted text end new text begin under new text end paragraph (a), the school board
must project revenues, expenditures, and fund balances for deleted text begin one yeardeleted text end new text begin two years new text end following
the period of the agreement. The projections must include the new text begin information new text end categories
deleted text begin of information described indeleted text end new text begin under new text end paragraph (b), be reasonable and comprehensive, and
reference current state aid formulas.
(d) new text begin The board must make available new text end all projections and calculations required by this
section deleted text begin must be made availabledeleted text end new text begin and estimated district employee terminations new text end to the public
deleted text begin prior to anddeleted text end new text begin before, new text end atnew text begin , and after new text end the meeting where the new text begin board adopts the new text end resolution deleted text begin is
adopted in a mannerdeleted text end new text begin ,new text end consistent with state law on public notice and access to public data.
(e) In an interest arbitration, the district must submit, and the exclusive bargaining
representative may submit, proposed determinations with supporting projections and
calculations consistent with paragraph (b) of the effect of the potential decision on the
structural balance of the district's budget. The arbitrator must consider the potential effect
of a decision on the structural balance of the district's budget for the term of the agreement.
The arbitrator's decision must describe the effect of the decision on the structural balance
of the district's budget in a manner consistent with paragraph (b). The arbitrator's decision
new text begin also new text end must deleted text begin alsodeleted text end show the effect of the decision on the school budget for one year following
the term of the contract at issue. Within 30 days of deleted text begin receipt of the decision ordeleted text end when the
board new text begin receives or new text end acts on the decision, whichever is earlier, the deleted text begin schooldeleted text end board must by
resolution determine the effect of the decision on the structural balance of its budget for
the term of the agreement consistent with paragraph (b).
(f) new text begin The board must submit new text end a copy of the resolution with the supporting projections
and calculations deleted text begin must be submitteddeleted text end to the commissioner deleted text begin of educationdeleted text end with the uniform
collective bargaining agreement settlement document within 30 days of deleted text begin adoption ofdeleted text end
new text begin adopting new text end the resolution. The commissioner must develop a model form for deleted text begin use bydeleted text end districts
new text begin to use new text end in reporting projections and calculations. new text begin The commissioner must not accept any
reports that do not comply with this section. new text end The commissioner must make all resolutions,
projections, and calculations available to the public.
(g) Compliance with this section by itself is not an unfair labor practice under
section 179A.13, subdivision 2.
new text begin Subd. 2. new text end
new text begin State aid penalty. new text end
new text begin
(a) If a board does not submit a report to the
commissioner under subdivision 1, paragraph (f), the department must reduce the state aid
paid to the public employer for that fiscal year.
new text end
new text begin
(b) The aid reduction must equal $25 times the number of adjusted pupil units for
the district during that fiscal year.
new text end
new text begin
(c) The department must reduce general education aid; if general education aid is
insufficient or not paid, the department must reduce other state aids.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the 2007-2008 school year and
later.
new text end