MN SF709

School districts with outstanding maximum effort loans as of June 30, 2016 are eligible for aid payments equal to one-fifth of interest paid on those loans between December 1, 1990, and June 30, 2016.

Aid payments are distributed over fiscal years 2018 through 2022 and must be used to reduce current year property taxes or future tax levies.

Districts may retain aid payments in their debt redemption fund for up to 20 years (exceeding the standard two-year limit) or use funds to finance a defeasance of outstanding bonded debt.

An amount sufficient to cover aid payments is annually appropriated from the general fund to the commissioner of education.