123B.749 STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.
(a) Prior to approving a collective bargaining agreement that does not result from an interest
arbitration decision, a school board must determine by board resolution that the proposed
agreement will not cause structural imbalance in the district's budget during the period of the
(b) A school board may only determine that an agreement will not cause structural imbalance
if expenditures will not exceed available funds, taking into account:
(1) current state aid formulas; and
(2) reasonable and comprehensive projections of ongoing revenues and expenditures for
the period of the agreement. It is expected that onetime revenue may not be used for ongoing
expenditures. The school board must make available with the resolution a summary of the
projections and calculations supporting the determination. The projections and calculations
must include state aid formulas, pupil units, and employee costs, including the terms of labor
agreements, including the agreement under consideration, fringe benefits, severance pay, and
(c) In addition to the determination required in paragraph (a), the school board must project
revenues, expenditures, and fund balances for one year following the period of the agreement. The
projections must include the categories of information described in paragraph (b), be reasonable
and comprehensive, and reference current state aid formulas.
(d) All projections and calculations required by this section must be made available to the
public prior to and at the meeting where the resolution is adopted in a manner consistent with
state law on public notice and access to public data.
(e) In an interest arbitration, the district must submit, and the exclusive bargaining
representative may submit, proposed determinations with supporting projections and calculations
consistent with paragraph (b) of the effect of the potential decision on the structural balance of the
district's budget. The arbitrator must consider the potential effect of a decision on the structural
balance of the district's budget for the term of the agreement. The arbitrator's decision must
describe the effect of the decision on the structural balance of the district's budget in a manner
consistent with paragraph (b). The arbitrator's decision must also show the effect of the decision
on the school budget for one year following the term of the contract at issue. Within 30 days of
receipt of the decision or when the board acts on the decision, whichever is earlier, the school
board must by resolution determine the effect of the decision on the structural balance of its
budget for the term of the agreement consistent with paragraph (b).
(f) A copy of the resolution with the supporting projections and calculations must be
submitted to the commissioner of education with the uniform collective bargaining agreement
settlement document within 30 days of adoption of the resolution. The commissioner must
develop a model form for use by districts in reporting projections and calculations. The
commissioner must make all resolutions, projections, and calculations available to the public.
(g) Compliance with this section by itself is not an unfair labor practice under section
179A.13, subdivision 2
History: 1Sp2001 c 6 art 2 s 61; 2003 c 130 s 12