SEVENTEENTH MEETING

STATE OF MINNESOTA SEVENTEENTH MEETING
MN HOUSE OF REPRESENTATIVES NINETY SECOND SESSION

EDUCATION FINANCE
MINUTES

Representative Jim Davnie, Chair of the Education Finance Committee, called the virtual meeting to order at 10:30am on February 17, 2021 pursuant to House rule 10.01. The meeting is being broadcast via Zoom and House Public Information Services.

The Committee Legislative Assistant noted the roll.

Members present:

DAVNIE, Jim
SANDSTEDE, Julie
KRESHA, Ron
BENNETT, Peggy
DEMUTH, Lisa
DRAZKOWSKI, Steve
ERICKSON, Sondra
FEIST, Sandra
JORDAN, Sydney
MARQUART, Paul
MUELLER, Patricia
RICHARDSON, Ruth
THOMPSON, John
WOLGAMOTT, Dan
XIONG, Tou
YOUAKIM, Cheryl

Excused:

DANIELS, Brian


A quorum was present.

Rep. Jordan moved that the minutes from February 16, 2021 be approved. Motion prevailed.

HF 498 (Marquart) The long-term facilities maintenance (LTFM) program provides most school districts with up to $380 per pupil per year in revenue for deferred maintenance projects. Under current law, an intermediate school district and certain other cooperatives may issue bonds for these deferred maintenance projects, and these bonds are repaid with transfers of revenue from the member school districts. HF 498 includes other joint powers organizations in this authority as long as a resolution has been adopted stating how the costs will be allocated among the member school districts. School districts may lease instructional space. A school district’s lease levy is limited to $212 per pupil, except that a school district that is a member of an intermediate district may levy up to an additional $65 per pupil for the intermediate’s facility costs. HF 498 extends the additional building lease levy authority to all types of cooperative unites (special education cooperatives, service cooperatives, education districts, etc.). HF 498 is expected to increase school levies by about $1.4 million per year, and the levy increase would also be accompanied by a very small increase in the school building bond agricultural credit.

Rep. Marquart moved that HF 498 be presented before the committee; be laid over for further consideration at a later time.

Rep. Marquart presented HF 498.

Rep. Marquart renewed the motion that HF 498 be laid over for further consideration at a later time.

Testifiers:
Cliff Carmody, Executive Director of the Southwest/West Central Service Cooperative
Deb Marcotte, Executive Director of the Hiawatha Valley Education District


The meeting of the Education Finance Committee was adjourned 10:58am.


______________________________________________
Representative Jim Davnie, Chair

______________________________________________
Brittney Sunderland, Committee Legislative Assistant