1997 Minnesota Statutes

     121.917 Expenditure limitations. 

    Subdivision 1.  (a) Beginning in fiscal year 1978 and in 
 each year thereafter, a district which had statutory operating 
 debt on June 30, 1977 pursuant to section 121.914 shall limit 
 its expenditures in each fiscal year so that the amount of its 
 statutory operating debt calculated at the end of that fiscal 
 year is not greater than the amount of the district's statutory 
 operating debt as of June 30, 1977, as certified and adjusted by 
 the commissioner, increased by an amount equal to 2-1/2 percent 
 of that district's operating expenditures for the fiscal year 
 for which the statutory operating debt calculation is being made.

    (b) When a district is no longer required to levy pursuant 
 to section 124.914, subdivision 1, subdivision 2 shall be 
 applicable. 

    Subd. 2.  Beginning in fiscal year 1978 and each year 
 thereafter, any district not subject to the provisions of 
 subdivision 1 shall limit its expenditures so that its 
 undesignated fund balances shall not constitute statutory 
 operating debt as defined in section 121.914. 

    Subd. 3.  If a school district does not limit its 
 expenditures in accordance with this section, the commissioner 
 may so notify the appropriate committees of the legislature by 
 no later than January 1 of the year following the end of that 
 fiscal year. 

    Subd. 4.  (1) If the net negative unappropriated operating 
 fund balance as defined in section 124A.02, subdivision 25, 
 calculated in accordance with the uniform financial accounting 
 and reporting standards for Minnesota school districts, as of 
 June 30 each year, is more than 2-1/2 percent of the year's 
 expenditure amount, the district shall, prior to January 31 of 
 the next fiscal year, submit a special operating plan to reduce 
 the district's deficit expenditures to the commissioner of 
 children, families, and learning for approval.  The commissioner 
 may also require the district to provide evidence that the 
 district meets and will continue to meet all of the curriculum 
 requirements of the state board. 

    Notwithstanding any other law to the contrary, a district 
 submitting a special operating plan to the commissioner under 
 this clause which is disapproved by the commissioner shall not 
 receive any aid pursuant to chapters 124 and 124A until a 
 special operating plan of the district is so approved. 

    (2) A district shall receive aids pending the approval of 
 its special operating plan under clause (1).  A district which 
 complies with its approved operating plan shall receive aids as 
 long as the district continues to comply with the approved 
 operating plan. 

    HIST: 1976 c 271 s 33; 1977 c 447 art 7 s 13,14; 1979 c 334 
 art 6 s 5; 1980 c 609 art 7 s 8; 1981 c 358 art 7 s 11; 1986 c 
 444; 1987 c 398 art 7 s 42; 1990 c 562 art 8 s 8; 1991 c 130 s 
 37; 1991 c 265 art 11 s 7; 1992 c 499 art 12 s 29; 1Sp1995 c 3 
 art 16 s 13; 1996 c 412 art 1 s 4