123B.81 STATUTORY OPERATING DEBT.
Subdivision 1. Operating debt.
The "operating debt" of a school district means the net
negative unreserved general fund balance calculated as of June 30 of each year in accordance with
the uniform financial accounting and reporting standards for Minnesota school districts.
Subd. 2. Statutory operating debt.
If the amount of the operating debt is more than 2-1/2
percent of the most recent fiscal year's expenditure amount for the funds considered under
subdivision 1, the net negative undesignated fund balance is defined as "statutory operating debt"
for the purposes of this section and
Subd. 3. Debt verification.
The commissioner shall establish a uniform auditing or other
verification procedure for districts to determine whether a statutory operating debt exists in
any Minnesota school district as of June 30, 1977. This procedure must identify all interfund
transfers made during fiscal year 1977 from a fund included in computing statutory operating
debt to a fund not included in computing statutory operating debt. The standards for this uniform
auditing or verification procedure must be promulgated by the state board pursuant to chapter
14. If a district applies to the commissioner for a statutory operating debt verification or if the
unaudited financial statement for the school year ending June 30, 1977 reveals that a statutory
operating debt might exist, the commissioner shall require a verification of the amount of the
statutory operating debt which actually does exist.
Subd. 4. Debt elimination.
If an audit or other verification procedure conducted pursuant
to subdivision 3 determines that a statutory operating debt exists, a district must follow the
procedures set forth in this section to eliminate this statutory operating debt.
Subd. 5. Certification of debt.
The commissioner shall certify the amount of statutory
operating debt for each district. Prior to June 30, 1979, the commissioner may, on the basis of
corrected figures, adjust the total amount of statutory operating debt certified for any district.
Subd. 6.[Repealed, 1Sp2003 c 9 art 1 s 54
Subd. 7. Applicability.
This section is applicable only to common, independent, and special
school districts and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws
1969, chapters 775 and 1060, as amended. This section does not apply to Independent School
District No. 625.
Subd. 8.[Repealed, 2007 c 146 art 11 s 19
History: 1976 c 271 s 32; 1977 c 447 art 7 s 9-12; 1980 c 609 art 7 s 7; 1982 c 424 s 130;
1986 c 444; 1987 c 398 art 7 s 42; 1991 c 130 s 37; 1992 c 499 art 12 s 29; 1Sp1995 c 3 art
16 s 13; 1996 c 412 art 13 s 6; 1998 c 397 art 6 s 29-35,124; art 11 s 3; 1Sp2005 c 5 art 1 s
6; 2007 c 146 art 11 s 4-6