Tom Melcher, MDE’s School Finance Director, sent a memo July 10 to school district administrators that provides an overview of the Long-Term Facility Maintenance Revenue Program and the new 10-year plan process and timelines.
New LTFM Law
Laws 2015, 1st Special Session, Chapter 3, Article 6, sections 1–4 and 14 (2015 Education Act), establish a Long-term Facilities Maintenance Revenue Program for school districts, intermediate districts, other cooperatives and charter schools. Beginning in FY 2017, the new program replaces current Health and Safety Revenue, Deferred Maintenance Revenue and Alternative Facilities Bonding and Levy programs. Revenue increases for school districts not currently eligible to participate in the Alternative Facilities Bonding and Levy program and for charter schools are phased-in over three years, from FY 2017- 2019.
The Ten-Year Plan process stipulates that to qualify for a 2015 payable 2016 property tax levy, the plan must be adopted by the school board and approved by the commissioner before the proposed levy is certified in September 2015:
- August 14: Plans must be received by MDE
- September 8: Revenue, aid and levy included on preliminary levy limitation and certification reports issued by MDE
Get the forms and instructions for LTFM from the MDE website.
Read more about the next steps for districts.
Webinar on LTFM Parameters
MREA hosted a webinar June 29 with Tom Melcher and other experts on the parameters and financing of the new LTFM program. Read more or listen to the recorded webinar.