1.1    .................... moves to amend H. F. No. 234, the first engrossment, as follows:
1.2Page 3, after line 12, insert:

1.3    "Sec. 4. Minnesota Statutes 2006, section 123B.749, is amended to read:
1.4123B.749 STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.
1.5    (a) Prior to approving a collective bargaining agreement that does not result from an
1.6interest arbitration decision, a school board must determine by board resolution that the
1.7proposed agreement will not cause structural imbalance in the district's budget during the
1.8period of the agreement.
1.9    (b) A school board may only determine that an agreement will not cause structural
1.10imbalance if expenditures will not exceed available funds, taking into account:
1.11    (1) current state aid formulas; and
1.12    (2) reasonable and comprehensive projections of ongoing revenues and expenditures
1.13for the period of the agreement. It is expected that onetime revenue may not be used
1.14for ongoing expenditures. The school board must make available with the resolution a
1.15summary of the projections and calculations supporting the determination. The projections
1.16and calculations must include state aid formulas, pupil units, and employee costs,
1.17including the terms of labor agreements, including the agreement under consideration,
1.18fringe benefits, severance pay, and staff changes.
1.19    (c) In addition to the determination required in paragraph (a), the school board must
1.20project revenues, expenditures, and fund balances for one year following the period of
1.21the agreement. The projections must include the categories of information described in
1.22paragraph (b), be reasonable and comprehensive, and reference current state aid formulas.
1.23    (d) All projections and calculations required by this section must be made available
1.24to the public prior to and at the meeting where the resolution is adopted in a manner
1.25consistent with state law on public notice and access to public data.
1.26    (e) In an interest arbitration, the district must submit, and the exclusive bargaining
1.27representative may submit, proposed determinations with supporting projections and
2.1calculations consistent with paragraph (b) of the effect of the potential decision on the
2.2structural balance of the district's budget. The arbitrator must consider the potential
2.3effect of a decision on the structural balance of the district's budget for the term of the
2.4agreement. The arbitrator's decision must describe the effect of the decision on the
2.5structural balance of the district's budget in a manner consistent with paragraph (b). The
2.6arbitrator's decision must also show the effect of the decision on the school budget for one
2.7year following the term of the contract at issue. Within 30 days of receipt of the decision
2.8or when the board acts on the decision, whichever is earlier, the school board must by
2.9resolution determine the effect of the decision on the structural balance of its budget for
2.10the term of the agreement consistent with paragraph (b).
2.11    (f) A copy of the resolution with the supporting projections and calculations must
2.12be submitted to the commissioner of education with the uniform collective bargaining
2.13agreement settlement document within 30 days of adoption of the resolution. The
2.14commissioner must develop a model form for use by that school districts in reporting may
2.15use to report projections and calculations. The commissioner must make all resolutions,
2.16projections, and calculations available to the public.
2.17    (g) A school board must include the resolution and supporting documents required
2.18by this section in the materials provided as a part of its truth in taxation hearing, post
2.19the materials in a conspicuous place on the district's official Web site, and publish the
2.20information in a qualified newspaper of general circulation within the district.
2.21    (h) The commissioner must make all resolutions, projections, and calculations
2.22available to the public.
2.23    (g) Compliance with this section by itself is not an unfair labor practice under
2.24section 179A.13, subdivision 2.
2.25EFFECTIVE DATE.This section is effective July 1, 2007."
2.26Page 5, line 14, delete "sections 123B.749; and" and insert "section" and delete
2.27"are" and insert "is"
2.28Renumber the sections in sequence and correct the internal references
2.29Amend the title accordingly