SF 1198

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/09/2025 01:53 p.m.

A bill for an act
relating to education finance; authorizing roof projects as part of the long-term
facilities maintenance program; appropriating money; amending Minnesota Statutes
2024, section 123B.595, subdivisions 1, 4, 8, 10.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 123B.595, subdivision 1, is amended to read:

Subdivision 1.

Long-term facilities maintenance revenue.

(a) Long-term facilities
maintenance revenue equals the greater of (1) the sum of (i) $380 times the district's adjusted
pupil units times the lesser of one or the ratio of the district's average building age to 35
years, plus (ii) the cost approved by the commissioner for indoor air quality, fire alarm and
suppression, and asbestos abatement projects under section 123B.57, subdivision 6, new text begin and
roof repair and replacement new text end with an estimated cost of $100,000 or more per site, plus (iii)
for a school district with an approved voluntary prekindergarten program under section
142D.08, the cost approved by the commissioner for remodeling existing instructional space
to accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district
would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota
Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii)
for a school district with an approved voluntary prekindergarten program under section
142D.08, the cost approved by the commissioner for remodeling existing instructional space
to accommodate prekindergarten instruction.

(b) Notwithstanding paragraph (a), a school district that qualified for eligibility under
Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), for fiscal year 2010
remains eligible for funding under this section as a district that would have qualified for
eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a),
for fiscal year 2017 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2027 and later.
new text end

Sec. 2.

Minnesota Statutes 2024, section 123B.595, subdivision 4, is amended to read:

Subd. 4.

Facilities plans.

(a) To qualify for revenue under this section, a school district
or intermediate district, not including a charter school, must have a ten-year facility plan
adopted by the school board and approved by the commissioner. The plan must include
provisions for implementing a health and safety program that complies with health, safety,
and environmental regulations and best practices, including indoor air quality management
and remediation of lead hazards. new text begin The plan must address the maintenance and repair schedule
for each school's roof for which funding is requested. new text end For planning purposes, the plan must
also address provisions for providing a gender-neutral single-user restroom at each school
site.

(b) The district must annually update the plan, submit the plan to the commissioner for
approval by July 31, and indicate whether the district will issue bonds to finance the plan
or levy for the costs.

(c) For school districts issuing bonds to finance the plan, the plan must include a debt
service schedule demonstrating that the debt service revenue required to pay the principal
and interest on the bonds each year will not exceed the projected long-term facilities revenue
for that year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2027 and later.
new text end

Sec. 3.

Minnesota Statutes 2024, section 123B.595, subdivision 8, is amended to read:

Subd. 8.

Long-term facilities maintenance equalized levy.

(a) A district's long-term
facilities maintenance equalized levy equals the district's long-term facilities maintenance
equalization revenue minus the greater of:

(1) the lesser of the district's long-term facilities maintenance equalization revenue or
the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014,
section 123B.59, subdivision 6; or

(2) the district's long-term facilities maintenance equalization revenue times the greater
of (i) zero, or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit
in the year preceding the year the levy is certified to deleted text begin 123 deleted text end new text begin ....... new text end percent of the state average
adjusted net tax capacity per adjusted pupil unit for all school districts in the year preceding
the year the levy is certified.

(b) For purposes of this subdivision, "adjusted net tax capacity" means the value described
in section 126C.01, subdivision 2, paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2027 and later.
new text end

Sec. 4.

Minnesota Statutes 2024, section 123B.595, subdivision 10, is amended to read:

Subd. 10.

Allowed uses for long-term facilities maintenance revenue.

(a) A district
may use revenue under this section for any of the following:

(1) deferred capital expenditures and maintenance projects necessary to prevent further
erosion of facilities new text begin , including repair and replacement of roofs new text end ;

(2) increasing accessibility of school facilities;

(3) health and safety capital projects under section 123B.57;

(4) remodeling or constructing a gender-neutral single-user restroom at each school site;
or

(5) by board resolution, to transfer money from the general fund reserve for long-term
facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when
due, principal and interest on general obligation bonds issued under subdivision 5.

(b) A charter school may use revenue under this section for any purpose related to the
school.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2027 and later.
new text end

Sec. 5. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Long-term facilities maintenance equalized aid. new text end

new text begin (a) For long-term facilities
maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2026 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2027 new text end

new text begin (b) The 2026 appropriation includes $....... for 2025 and $....... for 2026.
new text end

new text begin (c) The 2027 appropriation includes $....... for 2026 and $....... for 2027.
new text end