SF857

Purpose

• Expand and update funding for long-term facilities maintenance (LFM) for Minnesota school districts, with new provisions for buildings on the National Register of Historic Places, and to support remodeling to accommodate prekindergarten (pre-K) programs. The bill also makes related amendments to the existing LFM calculation and eligibility rules.

Main Provisions

• Long-term facilities maintenance revenue calculation (updated formula)
  • The LFM revenue equals the greater of:
  • Option A: the sum of
    • a) 380 times the district’s adjusted pupil units, multiplied by the smaller of 1 or the ratio of the district’s average building age to 35 years
    • plus b) the cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section 123B.57 subdivision 6, with an estimated cost of $100,000 or more per site
    • plus c) for districts with an approved voluntary prekindergarten program under section 142D.08, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction
  • Option B: the sum of
    • a) the amount the district would have qualified for under specific preexisting statutes (Minnesota Statutes 2014 sections 123B.57, 123B.59, and 123B.591)
    • plus b) for districts with an approved voluntary prekindergarten program, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction
• Additional LFM for National Register buildings
  • Districts that operate and en roll students in a school building listed on the National Register of Historic Places are eligible for additional LFM revenue, calculated as a specified multiple of that district’s adjusted pupil units for the year.
• Historic eligibility grandfathering
  • Maintains eligibility for districts that qualified under older law (e.g., those who qualified for 2010 under a prior statute) to continue receiving funding as if they qualified under the older framework for later years (2017 and beyond).
• Remodeling and prekindergarten support
  • For districts with approved pre-K programs, remodeling costs to accommodate pre-K instruction are included in the LFM calculations or as eligible costs, reinforcing support for early childhood facilities.
• Relation to existing statutes
  • Amends Minnesota Statutes 2024 section 123B.595 subdivisions 1 (and related subsections) to implement these changes and to align with the referenced older statutes.

Significant Changes to Existing Law

• Expands eligibility to include buildings on the National Register of Historic Places, providing an extra funding mechanism specifically tied to NRHP-listed facilities.
• Introduces a new, explicit mechanism to fund remodeling of spaces for prekindergarten instruction within the LFM framework.
• Reconfigures the core LFM calculation by presenting two alternative bases (Option A and Option B) for determining the greater funding amount, incorporating both current cost categories (indoor air quality, fire safety, asbestos abatement) and historical eligibility pathways.
• Maintains or preserves eligibility for districts that previously qualified under older statutory provisions, providing continuity for those districts.

Relevant Context

• The bill operates within the state’s education finance framework and modifies how districts calculate and receive long-term maintenance funding, with explicit attention to historic preservation, facility safety/improvement costs, and prekindergarten space needs.

Relevant Terms - longterm facilities maintenance revenue (LFM) - National Register of Historic Places (NRHP) - adjusted pupil units - indoor air quality - fire alarm and suppression - asbestos abatement - section 123B.57 subdivision 6 - prekindergarten (pre-K) - remodeling existing instructional space - section 142D.08 - Minnesota Statutes 2014 sections 123B.57, 123B.59, 123B.591 - eligibility grandfathering (historic qualifiers) - school district facilities funding