S.F. No. 40 Summary

• Amends Minnesota Statutes section 123B.535 to expand enhanced debt service equalization aid eligibility to include school districts that consolidate on or after July 1, 2021, with an approved consolidation plan under section 123A.48.

• Consolidating districts qualify for enhanced debt service equalization if their consolidation plan identifies construction projects that have received positive review and comment.

• Eligible districts receive enhanced debt service equalization revenue calculated as 5-6 percent in excess of principal and interest payments on qualifying debt obligations.

• Districts must notify the commissioner by July 1 of the calendar year the levy is certified, or by September 30 for newly consolidated districts as of July 1.

• The effective date is July 1, 2020.