HF 2604

as introduced - 87th Legislature (2011 - 2012) Posted on 02/29/2012 01:40pm

A bill for an act
relating to education finance; expanding permissible fund transfers; amending
Minnesota Statutes 2010, section 123B.79, subdivision 1; repealing Minnesota
Statutes 2010, section 123B.79, subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 123B.79, subdivision 1, is amended to read:

Subdivision 1.

Limitations.

Except as provided in this subdivision, sections
123B.51, 123B.80, 475.61, and 475.65, a district may not new text begin (1) new text end permanently transfer money
from deleted text begin (1) an operating fund to a nonoperating fund; (2) a nonoperating fund to another
nonoperating fund; or (3) a nonoperating fund to an operating fund deleted text end new text begin the community
education or food service funds or (2) transfer money received from federal funds granted
for a particular purpose. A district may not permanently transfer funds that increase state
aid obligations or result in additional property tax authority for the district new text end . Permanent
transfers may be made from any fund to any other fund to correct for prior fiscal years'
errors discovered after the books have been closed for that year. Permanent transfers may
be made from the general fund to any other operating funds according to section 121A.19
or if the resources of the other fund are not adequate to finance approved expenditures
from that other fund. Permanent transfers may also be made from the general fund to
eliminate deficits in another fund when that other fund is being discontinued. When a
district discontinues operation of a district-owned bus fleet or a substantial portion of a
fleet, the balance shall cancel to the district's general fund.

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 123B.79, subdivision 8, new text end new text begin is repealed.
new text end