Purpose of the Bill

The bill aims to manage the financial operations related to school food services in Minnesota, particularly by authorizing and specifying certain expenditures from the school food service fund that align with changes in education finance regulations.

Main Provisions

• School districts must record expenses for school food services in a designated food service fund, covering items like the preparation and serving of milk, meals, or snacks in conjunction with school or community activities.
• Revenues and expenditures related to food services should be recorded within this fund, and districts can charge certain food service-related costs, such as meal preparation and kitchen custodial services, to either the food service fund or the general fund.
• The bill allows expenses related to technology for meal tracking and serving line automation to be charged to the food service fund.
• Specific items like lunchroom supervision, utilities, or administrative costs are emphasized to be charged to the general fund and not the food service fund unless particular conditions are met.
• If a school district employs or contracts a food service program director, superintendent or fiscal manager costs linked to food services should not be charged to the food service fund. If charged, it must be at a rate not exceeding the statewide average for food service directors.
• School districts can make capital expenditures from the food service fund for equipment if the previous fiscal year's fund balance surpasses the equipment costs.
• The bill states procedures for addressing a deficit in the food service fund, allowing a deficit to remain temporarily under certain plans with the requirement for district remedial action.

Significant Changes to Existing Law

• Clarification on which fund (general or food service) should cover specific food service-related costs.
• New guidelines for addressing and eliminating deficits in the food service fund, including permanent fund transfers and actions required if deficits persist.
• Conditions under which surpluses in the food service fund can be utilized to cover previously general fund-related expenses within specific limits.

Relevant Terms

• School food service fund
• General fund
• Capital expenditures
• Meal tracking automation
• Deficit management
• Surplus utilization
• Food service management company