Purpose of the Bill

The purpose of this bill is to amend financial management practices related to school food services in Minnesota. It aims to specify and clarify how funds can be used from the school food service fund and the general fund, primarily focusing on expenses associated with school food services.

Main Provisions

• Funding for Food Services: The bill outlines clear guidelines on how school districts should account for revenues and expenditures related to school food services.

• Allowable Expenses from Food Service Fund: The bill specifies which costs associated with meal preparation and service, including technology for meal tracking, custodial services, and waste management, may be charged to the food service fund.

• Restrictions on Use of General Fund: Details are provided on which expenses must be covered by the general fund, such as lunchroom supervision and utilities.

• Equipment Purchase Conditions: Specifies that food service equipment purchases can only be made using the food service fund if the fund's balance exceeds the cost of the equipment at the fiscal year's end.

• Deficit and Surplus Management: The bill provides conditions for managing deficits and surpluses in the food service fund. For example, deficits must be cleared with permanent transfers from the general fund unless the school district contracts with a food service company, then the company is responsible. Conversely, if a surplus occurs for three consecutive years, certain costs initially charged to the general fund may be transferred to the food service fund.

• Limits on Remodeling and Infrastructure Costs: Expenses for remodeling or reconfiguring food service areas cannot be charged to the food service fund unless specified conditions are met, such as dealing with health or safety hazards.

Significant Changes to Existing Law

• The bill introduces more stringent and detailed conditions under which expenses can be charged to the food service fund versus the general fund.
• New provisions allow equipment purchases from the food service fund only when there is a sufficient surplus.
• It updates the procedure for managing deficits and surpluses within the food service fund.

Relevant Terms

school food service fund, general fund, meal tracking, food service management, deficit management, surplus, equipment purchase, custodial services, plumbing and electrical work, school district finance.