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SF3361 (Legislative Session 94 (2025-2026))

Mandate relief provision for school districts

Related bill: HF957

AI Generated Summary

Purpose of the Bill

This bill is designed to provide flexibility and relief to school districts in Minnesota by allowing them to manage their financial resources more freely. It enables schools to temporarily redirect funds to better meet local needs without causing additional state financial obligations.

Main Provisions

  • Authorization of Fund Transfers: From fiscal years 2025 through 2029, school districts, charter schools, and cooperative units will be permitted to transfer unencumbered funds between operating accounts or operating funds. This is applicable as long as the funds are not designated for staff salaries, benefits, or restricted by federal law.

  • Restrictions on Transfers: Such transfers cannot lead to increased state aid obligations or additional property tax authority for the district or school.

  • Board Resolution Requirement: Any transfer of funds must be accompanied by a written resolution from the school board. This resolution should outline the purpose and specify the amount of the transfer.

  • Transparency Measures: Each resolution must be posted on the respective school board’s website. Furthermore, an electronic notice of every approved transfer must be sent to the commissioner in a timely manner.

Significant Changes to Existing Law

The bill deviates from current Minnesota Statutes (section 123B.80, subdivision 3) by allowing schools this temporary flexibility. Typically, funds are more strictly categorized and restricted to their originally intended uses.

Relevant Terms

  • Fund transfers
  • School districts
  • Charter schools
  • Operating accounts
  • State aid obligations
  • Property tax authority
  • School board resolution

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 08, 2025SenateFloorActionIntroduction and first reading
April 08, 2025SenateFloorActionReferred toEducation Finance

Citations

 
[
  {
    "analysis": {
      "added": [
        "Authorization for school districts to transfer funds between operating accounts during specified fiscal years."
      ],
      "removed": [],
      "summary": "This bill provides mandate relief for school districts by authorizing certain fund transfers for fiscal years 2025 through 2029, notwithstanding the requirements of section 123B.80, subdivision 3.",
      "modified": [
        "Overrides existing restrictions on fund transfers within section 123B.80, subdivision 3 for the specified fiscal years."
      ]
    },
    "citation": "123B.80",
    "subdivision": "subdivision 3"
  }
]

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