School boards would be allowed to exceed revenue limits for energy projects

School boards would be allowed to vote to raise their districts’ yearly revenue limits for qualifying energy projects. The limit covers combined general state school aid and property tax revenue. The allowance covers yearly project spending, including payments on project debt. Projects must avoid or reduce energy or operating costs and use a performance contract for energy-saving work. Bonds, notes, and state trust fund loans used for the project must have terms of no more than 20 years. An exception in subdivision 1m. would still apply, but its terms are not included. For projects financed with debt, the board’s vote remains valid each school year it makes payments on that debt.

Projects would need to meet the listed purposes to qualify for the higher revenue limit. The rule covers changes to school facilities and training, service, or operating programs. Work aimed only at meeting state or local building codes would not qualify. The proposal first applies to a school board vote to raise its revenue limit adopted on the provision’s effective date.