Month: January 2017 (1)

Long Term Facilities Maintenance Revenue

LONG-TERM FACILITIES MAINTENANCE REVENUE Long-Term Facilities Maintenance Revenue, (LTFM) program was established in the 2015 Education Act.  Intended for school districts, intermediate districts, other cooperatives, and charter schools. New legislation was passed during a special session in July 2015 that provides revenue increases for school districts not currently eligible to participate in the Alternative Facilities Bonding and Levy program. Legislation requires that districts develop a 10 Year Facilities Maintenance Plan adopted by its board.  The program funds deferred maintenance expenditures for projects which are attached to or part of a building and replaced on an equal exchange basis. PHASED  Long-Term Facilities Maintenance Revenue includes a three year phased approach beginning in FY 2017 FY 2017 Districts will receive up to $193/pupil FY 2018 Districts will receive up to $292/pupil FY 2019 Districts will receive up to $380/pupil Figures are prorated for districts with an average building age of 35 years or less. This program replaces the former Health and Safety and Deferred Maintenance revenue programs and associated funding. The LTFM Revenue is an equalized levy, which means the State of Minnesota will pay for a portion of the revenue depending on the district’s property value.  The equalizing factor is set at 123% of the State average Adjusted Net Tax capacities. KEY ELEMENTS Equalizing Factor high enough that a significant number of districts qualify for aid. Set as a % of state average ANTC/pupil. If property value increases statewide the equalizing factor will also increase. Agricultural Land in a district is not counted when calculating district’s value/pupil. ALLOWED USES Deferred Capital Expenditures and maintenance projects necessary to prevent further erosion of facilities. Increasing accessibility of school facilities. Health + Safety Projects under MN Statues (123B.57) NOT ALLOWED USES  Construction of New Facilities, Remodeling Existing Facilities or the Purchase of Portable Classrooms […]