2003 Minnesota Statutes

     123B.83 Expenditure limitations. 

    Subdivision 1.    Reduce statutory operating debt.  (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 126C.42 must 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 126C.42, subdivision 1, subdivision 2 is applicable. 

    Subd. 2.    Undesignated fund balances.  Beginning in 
 fiscal year 1978 and each year thereafter, any district not 
 subject to the provisions of subdivision 1 must limit its 
 expenditures so that its undesignated fund balances do not 
 constitute statutory operating debt as defined in section 
 126C.42. 

    Subd. 3.    Failure to limit expenditures.  If a 
 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.    Special operating plan.  (a) If the net 
 negative unreserved general fund balance, 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 must, prior to January 31 of the next 
 fiscal year, submit a special operating plan to reduce the 
 district's deficit expenditures to the commissioner for 
 approval.  The commissioner may also require the district to 
 provide evidence that the district meets and will continue to 
 meet all high school graduation requirements. 

    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 must not 
 receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
 124D, 125A, 126C, and 127A until a special operating plan of the 
 district is so approved. 

    (b) A district must receive aids pending the approval of 
 its special operating plan under paragraph (a).  A district 
 which complies with its approved operating plan must 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; 1998 c 397 art 6 s 36,124; 
 art 11 s 3; 1999 c 241 art 9 s 21; 2000 c 489 art 6 s 11