SB 451

This bill prohibits a school board from adopting a resolution to initiate an operating or capital referendum unless the Department of Public Instruction certifies that the school board is in compliance with all applicable requirements to submit financial information to DPI. If a school board adopts a resolution without the required certification, the resolution and any referendum on the resolution are void.

Current law generally limits the total amount of revenue a school district may receive from general school aids and property taxes in a school year. However, there are several exceptions to the revenue limit. One exception is for excess revenue approved by referendum for recurring and nonrecurring purposes. This type of referendum is often referred to as an operating referendum. If the operating referendum is for a nonrecurring purpose, a school district’s authority to raise excess revenue is approved only for specific school years. Another exception to a school district revenue limit is an increase for funds needed to service general obligation debt issued by a school district, if the debt was approved by a referendum. This type of referendum is often referred to as a capital referendum.