In an effort to allow the Caledonia School District and the State of Minnesota to save money, State Representative Greg Davids (R-Preston) and State Senator Jeremy Miller (R-Winona) are authoring legislation that would allow early repayment of a capital loan.
“If a school district wants to eliminate some of its debt, state government should not stand in the way,” Davids said.
“This legislation is extremely important to the Caledonia community, and we will continue to make it a priority here at the Capitol,” Miller stated.
The legislation makes minor changes to current law in order to make it applicable to the Caledonia School District.
It notes that if a school district had an outstanding capital loan balance that received a maximum effort capital loan prior to January 1, 2008, it may repay the full outstanding original principal on its loan prior to July 1, 2018. It also states that the amount to be repaid equals the full outstanding original principal – less any interest amounts – paid by the school district to the State of Minnesota over the course of the loan.
Davids’ bill will first be heard in the Minnesota House Education Finance Committee. On the Senate side, Miller’s legislation will receive its first hearing in the Senate E-12 Finance Committee.