Senator Jeremy Miller (R-Winona) recently introduced Senate File 709, which would reimburse Caledonia Area Public Schools for interest payments made on its “maximum effort” loan for school facilities. Caledonia originally qualified for the loan based on its unique school building needs and small local property tax base. With district Superintendent Ben Barton providing supporting comments and background, Senator Miller presented the bill to the Senate E-12 Finance Committee on February 20 where it received a favorable vote. The bill will now be considered in the Senate Committee on Taxes.

“I am happy to see the committee was supportive to this important legislation,” said Senator Miller. “The Caledonia school district was in a position that few other districts were in, and this bill will help ease the property tax burden for local tax payers.”

The bill, which had previously been a part of the 2016 tax bill that passed the legislature with strong bipartisan support, but was vetoed by the Governor, would be another step in assisting the Caledonia school district with its facilities. Almost two decades ago, Caledonia received a special “maximum effort” loan from the state of Minnesota. This loan was intended for school districts that were unable to support their building needs on local property taxes alone. Thanks to an early repayment and incentive aid provision in last year’s supplemental finance bill, sponsored by Senator Miller and signed into law, Caledonia has now paid back the “maximum effort” loan and refinanced remaining debt at more favorable terms.

Senate File 709 would return past interest payments on the “maximum effort” loan back to the Caledonia school district, and other eligible districts, over a five year period.