Credit Enhancement Program
The Minnesota Department of Education coordinates with Minnesota Management and Budget to administer the credit enhancement program established in Minnesota Statutes, section 126C.55. The program allows Minnesota school districts which have levy authority and intermediate school districts to issue statutorily specified debt instruments at a lower interest rate by extending the state’s credit rating to school districts.
School districts complete and submit an application that includes information needed to administer the program. In the event of a district default on debt service payment, the state will pay the amount due from available cash balances. The school board must pledge the full faith and credit and taxing power of the district to repayment of any amount paid by the state.