SF5025

Purpose

This bill would authorize a one-time action by Moorhead Area Public Schools (Independent School District No. 152) to move money from specific district reserve funds into the general fund’s unrestricted balance on a defined date, effectively giving the district more flexibility to use those funds for general purposes.

Main Provisions

• a) On June 30, 2026, Moorhead Area Public Schools may permanently transfer up to a specified amount from its community education revenue reserve account (within the community service fund) to its undesignated balance in the general fund. This would override certain restrictions in state law.
• b) On the same date, Moorhead Area Public Schools may permanently transfer up to a specified amount from its long-term facilities maintenance reserve account in the general fund to its undesignated balance in the general fund. This would also override certain restrictions in state law.
• The transfers would be permanent and would occur notwithstanding the cited Minnesota statutes (relating to reserved funds and their use).

Timing and Effect

• Timing: June 30, 2026.
• Effect: Reduces two reserve accounts (community education revenue reserve and long-term facilities maintenance reserve) and increases the undesignated balance in the general fund, giving the district more usable general revenue on a one-time basis.

Notable Legal References

• The bill uses “Notwithstanding” to override certain statutory limits in Minnesota Statutes: sections 123B.79, 123B.80, 124D.20 (subdivisions 10-12), and 123B.595 (subdivisions 10-12).

Significance

• This is a one-time adjustment to district finances that transfers money from restricted reserve funds into the general fund’s unrestricted balance. It does not establish a continuing transfer mechanism and relies on the specified date (June 30, 2026) to occur.

Relevant Terms - Moorhead Area Public Schools - Independent School District No. 152 - community education revenue reserve account - community service fund - undesignated balance in the general fund - long-term facilities maintenance reserve account - general fund - permanently transfer - notwithstanding - Minnesota Statutes: 123B.79, 123B.80, 124D.20, 123B.595 - June 30, 2026 - fund transfers - reserves - one-time transfer