SF 742

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; requiring school
districts to direct at least 65 percent of their
operating revenue directly to regular instruction;
amending Minnesota Statutes 2004, sections 123B.10,
subdivision 1; 123B.77, subdivision 4.

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

Section 1.

Minnesota Statutes 2004, section 123B.10,
subdivision 1, is amended to read:

Subdivision 1.

Budgets.

new text begin (a) new text end By October 1, every board
must publish revenue and expenditure budgets for the current
year and the actual revenues, expenditures, fund balances for
the prior year and projected fund balances for the current year
in a form prescribed by the commissioner.

new text begin (b) The expenditure data must clearly identify the portion
of the total spending that is directed toward regular
instruction. If the percent of classroom spending for the
previous year fell below 65 percent of total operating
expenditures for the previous year, the district must describe
the activities that it is undertaking in the current year to
ensure that at least 65 percent of the district's total
operating expenditures are directed to regular instruction.
new text end

new text begin (c) new text end The forms prescribed must be designed so that year to
year comparisons of revenue, expenditures and fund balances can
be made. These budgets, reports of revenue, expenditures and
fund balances must be published in a qualified newspaper of
general circulation in the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123B.77,
subdivision 4, is amended to read:

Subd. 4.

Budget approval.

new text begin (a) new text end Prior to July 1 of each
year, the board of each district must approve and adopt its
revenue and expenditure budgets for the next school year. new text begin The
expenditure budget must direct at least 65 percent of the
proposed total operating expenditures to regular instruction.
new text end The budget document so adopted must be considered an
expenditure-authorizing or appropriations document. No funds
shall be expended by any board or district for any purpose in
any school year prior to the adoption of the budget document
which authorizes that expenditure, or prior to an amendment to
the budget document by the board to authorize the expenditure.

new text begin (b) new text end Expenditures of funds in violation of this subdivision
shall be considered unlawful expenditures.

new text begin (c) new text end Prior to the appropriation of revenue for the next
school year in the initial budget, the board shall inform the
principal or other responsible administrative authority of each
site of the amount of general education and referendum revenue
that the Department of Education estimates will be generated by
the pupils in attendance at each site. For purposes of this
subdivision, a district may adjust the department's estimates
for school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or
student demographics not reflected in the department's
calculations. A district must report to the department any
adjustments it makes according to this subdivision in the
department's estimates of compensatory revenue generated by the
pupils in attendance at each site, and the department must use
the adjusted compensatory revenue estimates in preparing the
report required under section 123B.76, subdivision 3, paragraph
(c).

new text begin (d) For purposes of this section, "total operating
expenditures" and "regular instruction" have the meanings given
them under the uniform financial accounting and reporting
standards. Total operating expenditures include all operating
expenditures incurred for the benefit of elementary and
secondary education during that school year, except capital
expenditures. Construction and debt service expenditures are
nonoperating expenditures.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end