SF1198

Purpose

• Expand how long-term facilities maintenance (LTFM) revenue is calculated and what projects it can fund, by explicitly including roof repair and replacement as eligible under the LTFM program and aligning funding with remodeling for prekindergarten space.

Main Provisions

• The bill amends Minnesota Statutes 2024 section 123B.595 to redefine Longterm facilities maintenance revenue as the greater of:
  • A) The sum of:
  • 380 times the district’s adjusted pupil units, multiplied by the lesser of 1 or the ratio of the district’s average building age to 35 years; plus
  • The cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section 123B.57, subdivision 6, and roof repair and replacement with an estimated cost of $100,000 or more per site; plus
  • 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.
  • B) The sum of:
  • The amount the district would have qualified for under the 2014 statute provisions (123B.57, 123B.59, 123B.591), plus
  • 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.
• A grandfathering provision maintains eligibility for districts that qualified under the 2014 statutes for certain earlier fiscal years (e.g., 2010 eligibility remains eligible for 2017 and later).

Additional Context and Changes

• Explicitly authorizes roof repair and replacement projects to be funded under the long-term facilities maintenance program when the project meets the cost threshold (estimated cost of $100,000 or more per site).
• Includes remodeling costs to accommodate prekindergarten instruction (for districts with a voluntary prekindergarten program) as part of LTFM funding.
• Maintains transitional eligibility rules tied to prior law, ensuring certain districts continue to access funding based on earlier qualification standards.

Notable Changes to Law

• Roof repair and replacement become an eligible LTFM expenditure (with a minimum per-site cost threshold).
• The LTFM formula now accounts for roof projects and prekindergarten remodeling costs, alongside existing eligible categories like indoor air quality, fire safety, and asbestos abatement.
• Introduces a grandfathering clause to preserve eligibility for districts that qualified under older statutory provisions.

Practical Impact (In Plain Language)

• School districts can use LTFM funds to fix or replace roofs if the project meets the cost threshold.
• If a district runs prekindergarten, remodeling work to support pre-K can be funded under LTFM.
• The funding math for LTFM is adjusted to reflect these new eligible project types, along with compatibility with older qualification rules for districts that were previously eligible.

Relevant Terms - long-term facilities maintenance (LTFM) revenue - roof repair and replacement - indoor air quality - fire alarm and suppression - asbestos abatement - prekindergarten / pre-K - voluntary prekindergarten program (VPK) - remodeling existing instructional space - Minnesota Statutes 2024 section 123B.595 - Minnesota Statutes 2014 sections 123B.57, 123B.59, 123B.591 - 142D.08 - adjusted pupil units - average building age - grandfathering / eligibility transition