Subdivision 1. Operating debt. The "operating debt" of a school district means the net negative unreserved general fund balance calculated as of June 30 of each year in accordance with the uniform financial accounting and reporting standards for Minnesota school districts.
Subd. 2. Statutory operating debt. If the amount of the operating debt is more than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds considered under subdivision 1, the net negative undesignated fund balance is defined as "statutory operating debt" for the purposes of this section and section 123B.83.
Subd. 3. Debt verification. The commissioner shall establish a uniform auditing or other verification procedure for districts to determine whether a statutory operating debt exists in any Minnesota school district. The standards for this uniform auditing or verification procedure must be promulgated by the commissioner. If a district applies to the commissioner for a statutory operating debt verification, the commissioner shall require a verification of the amount of the statutory operating debt which actually does exist.
Subd. 4. Debt elimination. If an audit or other verification procedure conducted pursuant to subdivision 3 determines that a statutory operating debt exists, a district must follow the procedures in section 123B.83 to eliminate this statutory operating debt.
Subd. 5. Certification of debt. The commissioner shall certify the amount of statutory operating debt for each district.
Subd. 6. [Repealed, 1Sp2003 c 9 art 1 s 54]
Subd. 7. Applicability. This section is applicable only to common, independent, and special school districts and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969, chapters 775 and 1060, as amended. This section does not apply to Independent School District No. 625.
Subd. 8. [Repealed, 2007 c 146 art 11 s 19]
1976 c 271 s 32; 1977 c 447 art 7 s 9-12; 1980 c 609 art 7 s 7; 1982 c 424 s 130; 1986 c 444; 1987 c 398 art 7 s 42; 1991 c 130 s 37; 1992 c 499 art 12 s 29; 1Sp1995 c 3 art 16 s 13; 1996 c 412 art 13 s 6; 1998 c 397 art 6 s 29-35,124; art 11 s 3; 1Sp2005 c 5 art 1 s 6; 2007 c 146 art 11 s 4-6; 2009 c 96 art 5 s 4-6
Structure Minnesota Statutes
Chapters 120 - 129C — Education Code: Prekindergarten - Grade 12
Chapter 123B — School District Powers And Duties
Section 123B.01 — Definitions.
Section 123B.02 — General Powers Of Independent School Districts.
Section 123B.025 — School Sponsorship And Advertising Revenue.
Section 123B.03 — Background Check.
Section 123B.04 — Site Decision Making; Individualized Learning Agreement; Other Agreements.
Section 123B.045 — District-created Site-governed Schools.
Section 123B.06 — Evaluation Of Pupil Growth And Progress; Permanent Records.
Section 123B.07 — Missing Children; Voluntary Fingerprinting.
Section 123B.08 — Flag School Records Of Missing Children.
Section 123B.09 — Boards Of Independent School Districts.
Section 123B.10 — Publication Of Financial Information.
Section 123B.11 — Imprest Cash Funds.
Section 123B.12 — Insufficient Funds To Pay Orders.
Section 123B.13 — Land In Settlement Of Claim Against Surety.
Section 123B.14 — Officers Of Independent School Districts.
Section 123B.143 — Superintendent.
Section 123B.147 — Principals.
Section 123B.19 — Failure Of Auditor To Report.
Section 123B.195 — Board Members' Right To Employment.
Section 123B.20 — Dealing In School Supplies.
Section 123B.21 — Duty Of Officers To Report Violations Of Law.
Section 123B.22 — Combination To Control Prices.
Section 123B.23 — Liability Insurance; Officers And Employees.
Section 123B.24 — Legal Actions By Districts.
Section 123B.25 — Legal Actions Against Districts And Teachers.
Section 123B.28 — Records As Evidence.
Section 123B.29 — Sale At Auction.
Section 123B.30 — Improper Classification Of Pupils.
Section 123B.31 — Limitation Of Sections.
Section 123B.34 — Minnesota Public School Fee Law, Citation.
Section 123B.35 — General Policy.
Section 123B.36 — Authorized Fees.
Section 123B.37 — Prohibited Fees.
Section 123B.39 — Postsecondary Instructional Programs.
Section 123B.40 — Declaration Of Policy.
Section 123B.41 — Definitions.
Section 123B.43 — Use Of Individualized Instructional Materials.
Section 123B.44 — Provision Of Pupil Support Services.
Section 123B.445 — Nonpublic Education Council.
Section 123B.45 — Payments For Contractual Obligations.
Section 123B.46 — Administrative Costs.
Section 123B.47 — Notice To Districts; Proration.
Section 123B.48 — Limit On District Obligations.
Section 123B.49 — Extracurricular Activities; Insurance.
Section 123B.492 — Supervised Competitive High School Diving.
Section 123B.50 — Special School Districts, Laws Applicable.
Section 123B.51 — Schoolhouses And Sites; Uses For School And Nonschool Purposes; Closings.
Section 123B.53 — Debt Service Equalization Program.
Section 123B.535 — Natural Disaster Debt Service Equalization.
Section 123B.54 — Debt Service Appropriation.
Section 123B.55 — Debt Service Levy.
Section 123B.56 — Health, Safety, And Environmental Management.
Section 123B.57 — Health And Safety Projects.
Section 123B.571 — Radon Testing.
Section 123B.572 — Solar Panel Fire Safety.
Section 123B.58 — Disability Access And Fire Safety Improvements To School Buildings.
Section 123B.595 — Long-term Facilities Maintenance Revenue.
Section 123B.60 — Building Bonds For Calamities.
Section 123B.61 — Purchase Of Certain Equipment.
Section 123B.62 — Bonds For Certain Capital Facilities.
Section 123B.63 — Capital Project Referendum.
Section 123B.65 — Energy-efficiency Projects.
Section 123B.651 — Energy Use Reduction And Reporting For Public Schools.
Section 123B.67 — School Building Accessibility Capital Improvement Grant Act.
Section 123B.68 — Approval; Application Forms.
Section 123B.69 — Grant Application Process.
Section 123B.70 — School District Construction.
Section 123B.71 — Review And Comment For School District Construction.
Section 123B.72 — School Facility Commissioning.
Section 123B.74 — Eminent Domain.
Section 123B.744 — Agricultural Education.
Section 123B.747 — National Forest Land Funds, Handling And Disposition.
Section 123B.75 — Revenue; Reporting.
Section 123B.76 — Expenditures; Reporting.
Section 123B.77 — Accounting, Budgeting, And Reporting Requirement.
Section 123B.79 — Permanent Fund Transfers.
Section 123B.80 — Exceptions For Permanent Fund Transfers.
Section 123B.81 — Statutory Operating Debt.
Section 123B.82 — Reorganization Operating Debt.
Section 123B.83 — Expenditure Limitations.
Section 123B.85 — Definitions.
Section 123B.86 — Equal Treatment.
Section 123B.87 — Funds And Aids.
Section 123B.88 — Independent School Districts; Transportation.
Section 123B.885 — Diesel School Buses; Operation Of Engine; Parking.
Section 123B.90 — School Bus Safety Training.
Section 123B.91 — School District Bus Safety Responsibilities.
Section 123B.92 — Transportation Aid Entitlement.
Section 123B.93 — Advertising On School Buses.
Section 123B.94 — Common School Districts; Meetings, Elections.
Section 123B.95 — Boards Of Common School Districts.
Section 123B.97 — Schoolhouses And Sites; Common School Districts.