Purpose of the Bill

The purpose of this legislative bill is to provide flexibility to school districts, charter schools, and cooperative units to reallocate funds between different operating accounts for specific fiscal years, while ensuring transparency and communication with state authorities.

Main Provisions

• The bill allows schools and educational units to transfer funds from any operating account or operating fund not already dedicated to staff salary, benefits, or bound by federal law.
• These transfers are permitted for fiscal years 2025, 2026, and 2027 only.
• The transfers must not lead to an increase in state aid obligations or create additional property tax authority.
• A school board is required to adopt a written resolution explaining the purpose and amount of any fund transfer.
• This resolution must be posted on the school board’s website, and an electronic notification of each approved transfer must be sent to the state's commissioner.

Significant Changes to Existing Law

• The bill temporarily overrides existing Minnesota Statutes, which generally restrict such transfers, for the specified fiscal years.
• It introduces a reporting and transparency requirement by mandating the posting and transmission of transfer resolutions.

Relevant Terms

state aid obligations, operating account, operating fund, fund transfers, school board resolution, fiscal year 2025, fiscal year 2026, fiscal year 2027, educational funding flexibility, transparency, commissioner, cooperative unit, charter school.