Purpose of the Bill

The bill aims to clarify how school districts in Minnesota can use funds from the school food service fund. It specifies the types of expenses that can be recorded and charged to this fund.

Main Provisions

• Expense Attribution: The bill requires that expenses for school food service programs be attributed to the school food service fund.
• Expenditure Recording: Revenues and expenses related to food service activities must be recorded in the food service fund. However, general costs such as lunchroom supervision, kitchen custodial services, and utilities should be charged to the general fund.
• Technology Costs: Costs related to technology for serving line automation and meal tracking can be charged to the food service fund.
• Superintendent and Fiscal Manager Costs: Costs associated with the superintendent and fiscal manager can be attributed to the food service fund only if no food service director is employed and must not exceed the average wage rate for food service directors.

Significant Changes

• Capital Expenditures: The general fund is responsible for capital expenditures for food service equipment unless the food service fund has a surplus greater than the equipment cost.
• Deficit Management: If a deficit occurs in the food service fund by the end of a fiscal year, it is to be covered by a transfer from the general fund unless eliminated by the next fiscal year's revenue. If a management company is involved when the deficit occurred, the company must cover it.
• Surplus Management: In cases where the food service fund has a surplus for three consecutive years, costs typically charged to the general fund may be recoded to the food service fund up to the surplus amount.

Relevant Terms

school food service fund, general fund, capital expenditures, technology costs, superintendent costs, fiscal manager costs, food service equipment, deficit management, surplus management, food service management company.