SF 857

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/09/2025 01:52 p.m.

A bill for an act
relating to education finance; authorizing additional long-term facilities maintenance
revenue and revenue uses for school districts with facilities on the National Register
of Historic Places; appropriating money; amending Minnesota Statutes 2024,
section 123B.595, subdivisions 1, 10, 11.

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, 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.

new text begin (b) In addition to the revenue authorized in paragraph (a), a school district operating and
enrolling students in a school building listed on the National Register is eligible for additional
long-term facilities maintenance revenue equal to $....... times the district's adjusted pupil
units for that year.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Notwithstanding deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin and (b) new text end , 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 2026 and later.
new text end

Sec. 2.

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;

(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;
deleted text begin or
deleted text end

new text begin (5) for a facility on the National Register of Historic Places, all heating, ventilation, and
air conditioning projects, and any other remodeling projects specifically related to maintaining
the historic nature of the facility; or
new text end

deleted text begin (5) deleted text end new text begin (6) new text end 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 2026 and later.
new text end

Sec. 3.

Minnesota Statutes 2024, section 123B.595, subdivision 11, is amended to read:

Subd. 11.

Restrictions on long-term facilities maintenance revenue.

Notwithstanding
subdivision 10, long-term facilities maintenance revenue may not be used:

(1) for new text begin :
new text end

new text begin (i) new text end the construction of new facilities deleted text begin , deleted text end new text begin ;
new text end

new text begin (ii) new text end remodeling of existing facilities, new text begin except as allowed for facilities on the National
Register of Historic Places under subdivision 10, paragraph (a), clause (5); new text end or

new text begin (iii) new text end the purchase of portable classrooms, except for the costs associated with constructing
or remodeling existing facilities to include at least one gender-neutral single-user restroom
authorized under subdivision 10;

(2) to finance a lease purchase agreement, installment purchase agreement, or other
deferred payments agreement;

(3) for energy-efficiency projects under section 123B.65, for a building or property or
part of a building or property used for postsecondary instruction or administration, or for a
purpose unrelated to elementary and secondary education; or

(4) for violence prevention and facility security, ergonomics, or emergency
communication devices.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2026 and later.
new text end

Sec. 4. new text begin APPROPRIATION; LONG-TERM FACILITIES MAINTENANCE
REVENUE.
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 in the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Long-term facilities maintenance revenue. new text end

new text begin For additional long-term facilities
maintenance revenue required under this act:
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