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HF3470 (Legislative Session 94 (2025-2026))

Independent School District No. 197, West St. Paul-Mendota Heights-Eagan fund transfer authorized.

Related bill: SF4038

AI Generated Summary

Purpose

To authorize Independent School District No. 197 (West St. Paul–Mendota Heights–Eagan) to move funds from its building construction fund to the general fund’s operating capital reserve, enabling the district to use existing funds for operating needs without reducing its tax levy.

Main Provisions

  • By June 30, 2026, the district may permanently transfer any balance from its building construction fund to the reserved account for operating capital in the general fund.
  • The transfer is allowed without requiring a reduction in the district’s levy.
  • The transfer is authorized notwithstanding Minnesota Statutes sections 123B.79, 123B.80, and 475.61 subdivision 1 (i.e., an override of these laws to permit the transfer).

Changes to Existing Law

  • Creates a one-time statutory override that permits moving building construction funds into operating capital without affecting levy reductions.
  • This broad permission applies specifically to the district identified and to the date of June 30, 2026, after which the transfer would be treated as permanent.

Financial/Operational Implications

  • The district gains immediate flexibility to fund operating needs using existing capital reserves.
  • Future capital construction funding may be reduced, since funds in the building construction fund are being redirected to operating purposes.
  • The levy remains unaffected in the sense that no levy reduction is required to complete the transfer.

Significant Considerations

  • The action relies on a targeted exception to existing statutes, rather than a general change to how all districts must handle building construction and operating funds.
  • The language indicates the transfer is permanent, meaning the funds added to the operating capital reserve are not expected to be returned to the building construction fund.

Relevant Terms building construction fund; reserved account for operating capital; general fund; levy reduction; Independent School District No. 197 West St. Paul–Mendota Heights–Eagan; not withstanding; Minnesota Statutes sections 123B.79; 123B.80; 475.61 subdivision 1; June 30, 2026; permanently transfer; balance; operating capital.

Bill text versions

Past committee meetings

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2026HouseActionIntroduction and first reading, referred toEducation Finance
March 16, 2026HouseActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites Minnesota Statutes section 123B.79 to frame the interfund transfer authority for Independent School District No. 197 West St. Paul–Mendota Heights–Eagan.",
      "modified": [
        "Notwithstanding 123B.79, the bill permits a permanent transfer of any balance from the district's building construction fund to the reserved operating capital in the general fund without a levy reduction."
      ]
    },
    "citation": "123B.79",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites Minnesota Statutes section 123B.80 in relation to the fund transfer authority described in the bill.",
      "modified": [
        "Notwithstanding 123B.80, the bill permits a permanent transfer of any balance from the district's building construction fund to the reserved operating capital in the general fund without a levy reduction."
      ]
    },
    "citation": "123B.80",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites Minnesota Statutes, 475.61, subdivision 1.4, as part of the not-withstanding language enabling the transfer.",
      "modified": [
        "Notwithstanding 475.61, subdivision 1.4, the bill authorizes a permanent transfer of the district's building construction fund balance to the reserved operating capital in the general fund without levy reduction."
      ]
    },
    "citation": "475.61",
    "subdivision": "1.4"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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