HF51

Purpose

This bill adjusts how long-term facilities maintenance (LTFM) funding for school districts is calculated and expands what projects can be funded. It adds roof projects to the list of eligible LTFM work and integrates prekindergarten remodeling needs. It also preserves certain eligibility for districts that qualified under older laws.

Main Provisions

• Expands eligible LTFM projects to include roof repair and replacement, along with indoor air quality, fire alarm and suppression, and asbestos abatement work, with a minimum project cost threshold of $100,000 per site.

• Reframes the LTFM revenue calculation in two possible ways (whichever is greater):

1) Option A (the preferred one):
- 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
- the cost approved by the commissioner for the projects listed above (indoor air quality, fire alarm/suppression, asbestos abatement, roof work) with at least $100,000 per site; plus
- if the district has an approved voluntary prekindergarten program (VPK) under section 142D.08, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.

2) Option B:
- the amount the district would have qualified for under certain older Minnesota statutes (sections 123B.57, 123B.59, and 123B.591 as of 2014); plus
- if the district has an approved VPK, the remodeling cost to accommodate prekindergarten instruction.

• Notwithstanding the above, a district that qualified for eligibility under the 2014 statute for fiscal year 2010 remains eligible under this section as if it would have qualified under the 2014 statute for fiscal year 2017 and later.

Significant Changes to Existing Law

• Amends Minnesota Statutes 2024 section 123B.595, subdivision 1, to include roof projects in the Long-Term Facilities Maintenance revenue calculation and to add remodeling costs for prekindergarten space as an eligible component of LTFM funding.

• Provides a dual- measurement approach for LTFM funding (Option A and Option B) and keeps a grandfathered eligibility path for districts that previously qualified under older law (2010 and 2017 timelines).

• Introduces a minimum project cost ($100,000 per site) for roof and related projects to be funded under LTFM.

Implementation Notes

• The changes tie funding to specific project types (roofing, indoor air quality, fire safety, asbestos abatement) and to prekindergarten space remodeling, potentially broadening the scope of projects funded under LTFM.

• The grandfathering clause ensures continuity for districts with historical eligibility under older statutes.

Relevant Terms - longterm facilities maintenance revenue - roof repair and replacement - indoor air quality - fire alarm and suppression - asbestos abatement - Minnesota Statutes 2024 section 123B.595 - subdivision 1 - adjusted pupil units - district average building age - 35 years - prekindergarten program (VPK) under section 142D.08 - remodeling existing instructional space - Minnesota Statutes 2014 sections 123B.57, 123B.59, 123B.591 - fiscal year 2010 eligibility - fiscal year 2017 and later eligibility - school district - cost threshold $100,000 per site