1.1                          A bill for an act 
  1.2             relating to education; requiring that school district 
  1.3             contracts with employees be structurally balanced; 
  1.4             amending Minnesota Statutes 2000, section 179A.20, by 
  1.5             adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 179A.20, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 2b.  [NO SCHOOL DISTRICT CONTRACTS WITH EMPLOYEES 
  1.10  THAT ARE NOT STRUCTURALLY BALANCED.] (a) A school board must not 
  1.11  enter into a contract with the exclusive representative of the 
  1.12  employees that is not structurally balanced for a time period 
  1.13  that corresponds to the term of the contract and the following 
  1.14  two years beginning on the July 1 following the specified end 
  1.15  date of that contract.  Failure to enter into a contract to 
  1.16  implement a proposed contract settlement or an interest 
  1.17  arbitration decision that violates the provisions of this 
  1.18  subdivision shall not be an unfair labor practice under section 
  1.19  179A.13, subdivision 2.  The provisions of section 123B.05 shall 
  1.20  not apply to a contract or an interest arbitration decision that 
  1.21  is not structurally balanced and that is not approved by the 
  1.22  date specified therein. 
  1.23     (b) The school board must make a good-faith determination 
  1.24  as to whether a proposed contract settlement is structurally 
  1.25  balanced for the time period specified prior to its approval of 
  2.1   that contract.  The resolution adopted by the school board 
  2.2   making the determination that the proposed contract is 
  2.3   structurally balanced must include or incorporate written 
  2.4   findings and specific calculations to support the 
  2.5   determination.  The findings and calculations must be available 
  2.6   to members of the school board and the public at the meeting at 
  2.7   which the resolution is adopted.  A copy of the resolution with 
  2.8   supporting findings and calculations shall also be attached to 
  2.9   the uniform collective bargaining agreement settlement document 
  2.10  filed with the commissioner of finance under section 179A.07, 
  2.11  subdivision 7. 
  2.12     (c) An arbitrator in an interest arbitration must make a 
  2.13  good-faith determination as to whether an interest arbitration 
  2.14  decision for an employee contract is structurally balanced for 
  2.15  the time period specified and must prove that structural balance 
  2.16  in the decision.  The school board must review the arbitrator's 
  2.17  decision to determine whether the arbitrator has correctly 
  2.18  determined that the arbitration decision is structurally 
  2.19  balanced.  If the school board makes a good-faith determination 
  2.20  that the arbitration decision is not structurally balanced for 
  2.21  the time period specified, it must return the decision to the 
  2.22  arbitrator with a detailed explanation of why the board has 
  2.23  determined that the decision is not structurally balanced.  The 
  2.24  arbitrator must revise the decision until the school board can 
  2.25  make a good-faith determination that the decision is 
  2.26  structurally balanced for the time period specified.  The 
  2.27  resolution adopted by the school board making the determination 
  2.28  that the interest arbitration decision is structurally balanced 
  2.29  must include or incorporate written findings and specific 
  2.30  calculations to support the determination.  The findings and 
  2.31  calculations must be available to members of the school board 
  2.32  and the public at the meeting at which the resolution is 
  2.33  adopted.  A copy of the resolution with supporting findings and 
  2.34  calculations shall also be attached to the uniform collective 
  2.35  bargaining agreement settlement document filed with the 
  2.36  commissioner of finance under section 179A.07, subdivision 7. 
  3.1      (d) In making a determination as to whether a contract 
  3.2   settlement or interest arbitration decision is structurally 
  3.3   balanced for the term of the contract and the following two 
  3.4   years, the board shall review the general fund revenue and 
  3.5   expenditure projections for the four-year time period specified 
  3.6   based on laws in effect at the time the determination is made. 
  3.7      (1) Revenue projections must be based on the general 
  3.8   education and other formulas in effect for the time period 
  3.9   specified at the time the determination is made. 
  3.10     (2) Revenue projections must be based on pupil unit 
  3.11  projections for the time period specified.  
  3.12     (3) Expenditure projections must be based on the costs of 
  3.13  this contract and the projected costs of the contract with the 
  3.14  employees for the second two years of the time period specified. 
  3.15     (4) Expenditure projections must be based on the projected 
  3.16  seniority of the staff during each year of the time period 
  3.17  specified and on current teacher-to-student ratios.  The 
  3.18  projections must include projected movement through contract 
  3.19  steps and lanes each year during the time period specified to 
  3.20  reflect increased seniority leading to step changes and 
  3.21  increased education or training leading to lane changes. 
  3.22     (5) Expenditure projections must include anticipated costs 
  3.23  of fringe benefits, including but not limited to health 
  3.24  insurance, during each year of the time period specified. 
  3.25     (6) Expenditure projections must include projected staff 
  3.26  retirements and the hiring of projected new employees during the 
  3.27  time period specified.  The projections must include projected 
  3.28  payouts of severance pay, accumulated sick leave or other leave 
  3.29  if any, vacation pay if any, and other benefits to retiring 
  3.30  employees or employees leaving employment in the district. 
  3.31     (7) Expenditure projections must include all other 
  3.32  projected contract-related general fund expenditures for the 
  3.33  time period specified. 
  3.34     (e) A school board may determine that a contract with the 
  3.35  exclusive representative of the employees is structurally 
  3.36  balanced for the time period specified if, taking into account 
  4.1   at least the projections specified in paragraph (d) and such 
  4.2   other projections as may be necessary, the projected general 
  4.3   fund expenditures for each year of the time period specified 
  4.4   will not exceed projected general fund revenues for that year.  
  4.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  4.6   following final enactment and applies to contracts between 
  4.7   school boards and exclusive representatives of employees for the 
  4.8   time period July 1, 2001, to June 30, 2003, and thereafter.