Purpose of the Bill

The bill is designed to provide flexible financial management for school districts in Minnesota. It aims to ease financial restrictions by permitting school districts, charter schools, and cooperative units to transfer funds across different accounts for a limited time period.

Main Provisions

• Fund Transfers Allowed: For the fiscal years 2025 through 2029, the bill allows for the transfer of funds between different operating accounts or funds within school districts. This is permitted only for funds that are not designated for staff salaries, benefits, or restricted by federal regulations.
• No Increase in State Aid or Taxes: The transfers cannot lead to increased obligations for state aid nor can they grant additional property tax authority to school districts.
• School Board Resolution: Every fund transfer must be documented and approved through a written resolution by the school board, explaining the purpose and specific amounts involved.
• Transparency Requirements: Each resolution must be made publicly available on the school district’s website and a notification must be sent to the commissioner electronically.

Significant Changes to Existing Law

• This bill temporarily overrides existing statute section 123B.80, subdivision 3, to allow fund transfers that are typically restricted.
• School boards are given temporary authority to manage financial resources more freely, enhancing local control over budget allocations.

Relevant Terms

• Fund transfer
• School district
• Operating account
• Fiscal years 2025-2029
• State aid
• Property tax
• Written resolution
• Transparency
• Educational finance