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Office of the Revisor of Statutes

123B.78 CASH FLOW; SCHOOL DISTRICT REVENUES; BORROWING FOR
CURRENT OPERATING COSTS; CAPITAL EXPENDITURE DEFICITS.
    Subdivision 1. State aids payment. The commissioner of finance shall remit all payments of
state aids to districts in conformance with the dates provided by law or, when not so provided, with
a schedule of aid payments to be established by the commissioner of education in consultation
with other affected state agencies.
    Subd. 2. Taxes. The auditors or finance officers of Minnesota counties shall remit all
payments of taxes to the districts in conformance with the provisions of section 276.11. Districts
which have need for tax remittance advances may secure them from the counties by making
formal requests in conformance with section 276.11.
    Subd. 3. Tax and aid anticipation certificates. Minnesota school districts may issue tax
and aid anticipation certificates in conformance with the provisions of sections 126C.50 to
126C.56, with the additional provision that the proceeds of such borrowing or any other method
of borrowing shall be recorded as liabilities of funds for which the taxes were levied, or for which
the aids are receivable. Nothing in this subdivision provides authority for borrowing against the
tax levies and aids of one district fund for the purpose of increasing the available cash balance
of another fund.
    Subd. 4. Borrowing for outstanding bonds. Unless otherwise provided by law, a district
must not, for the purpose of increasing the available cash balance of another fund, borrow
or transfer funds from the building construction fund, debt redemption fund, trust and agency
fund, or from any sinking fund for outstanding bonds issued for any purpose. However, if the
contemplated use for which funds were originally placed in the building construction fund or
a sinking fund is afterwards abandoned or if a balance remains after the use is accomplished, a
district may devote these funds as provided in section 475.65. For the purpose of insuring fund
integrity, on determining that a district is in violation of this subdivision or section 123B.75,
the commissioner shall require that such district maintain separate bank accounts for building
construction funds, debt redemption funds, trust and agency funds, and sinking funds for
outstanding bonds. Nothing in this subdivision shall be construed to prohibit the use of common
bank accounts for other funds unless prohibited by law.
    Subd. 5. Deficit for capital projects. Upon approval by the commissioner, a district may
incur a deficit in the reserve for operating capital account for a period not to exceed three years to
provide money for capital projects. The commissioner shall approve a description of the project
and a financial plan to recover the deficit prior to the initiation of the project.
History: 1976 c 271 s 31; 1983 c 314 art 6 s 2; 1986 c 444; 1987 c 384 art 2 s 1; 1Sp1995 c
3 art 16 s 13; 1996 c 412 art 1 s 3; 1998 c 397 art 6 s 19,124; art 11 s 3; 2003 c 130 s 12