Bill > SF437

This bill expands the existing natural disaster debt service equalization aid program to help school districts in two specific scenarios. First, the bill maintains the original provision that allows aid for districts impacted by a federally declared natural disaster causing at least $500,000 in building damages not covered by insurance or FEMA payments. Second, the bill adds a new qualification: school districts where at least 30 percent of property value is excluded from the taxable tax rolls can now also receive enhanced debt service equalization aid. The bill modifies several sections of Minnesota statutes to implement these changes, including updating terminology from "natural disaster" to "enhanced" debt service equalization throughout the relevant legal text. The changes will apply to bond issues approved on or after July 1, 2025, and aid adjustments for fiscal year 2026 and later. The purpose of the bill appears to be providing additional financial support to school districts facing unique economic challenges, either from natural disasters or significant property tax exemptions, by helping them more easily manage debt service payments.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0437&ssn=0&y=2025