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HF 3183

Certain expenditures from the school food service fund authorized.

2025-2026 Regular Session Introduced by Lucy Rehm and 1 co-sponsor

HF 3183 clarifies and tightens which costs may be charged to the school food service fund vs. the district general fund, and sets rules for deficits, surpluses, and capital expendi

Introduction and first reading, referred to Education Finance
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Bill Summary · HF 3183

Summary of HF 3183 (2025-2026) – Minnesota

Purpose and intent

HF 3183 amends Minnesota Statutes to authorize certain expenditures from the school food service fund and to clarify, restrict, or redirect which costs may be charged to the food service fund versus the district general fund. The bill aims to define eligible and ineligible costs, address capital and deficit scenarios, and set conditions for moving costs between funds. The measure takes effect in fiscal year 2026 and later.

Key provisions and changes

  • Scope of the school food service fund (subd. 3):
    Maintains that expenses for a school food service program are recorded in a dedicated school food service fund. The program may involve preparing or serving milk, meals, or snacks in school or community service activities.

  • Costs chargeable to the food service fund vs. general fund (c):

    • Eligible for the food service fund:
    • Processing applications, meal accounting, food preparation and service, kitchen custodial services, waste management, and other expenses involved in preparing meals or operating lunchroom areas, including costs related to serving-line automation and meal tracking technology.
    • Charged to the general fund:
    • Lunchroom supervision, custodial services, utilities, furniture, and other administrative costs of the food service program not specifically listed as eligible.
    • Superintendent and fiscal manager costs can be charged to the food service fund if documented as attributable to the food service program, but only if the district does not employ or contract a separate food service director/management company. If charged, the wage rate must not exceed the statewide average for food service directors (as determined by the Department).

  • Capital expenditures (d–e):

    • Generally, food service equipment purchases must be made from the general fund.
    • A purchase from the food service fund is allowed only if the ending balance of the food service fund from the previous year exceeds the equipment cost.

  • Deficit management (f–g):

    • If a food service fund ends the year with a deficit and it is not eliminated by the next year’s food service revenues, the deficit must be eliminated by a permanent transfer from the district’s general fund at the end of the second fiscal year.
    • If a district contracts with a food service management company during the deficit period, the deficit must be eliminated by a payment from that company.
    • A district may incur a deficit for up to three years without a permanent transfer if it submits a deficit-elimination plan to the commissioner by January 1 of the second fiscal year, targeting elimination by the end of the third year.

  • Surplus handling (h):

    • If a food service fund has a surplus for three consecutive fiscal years, a district may reclassify certain costs (lunchroom supervision, custodial services, utilities, furniture, and other admin costs) from the general fund to the food service fund up to the amount of the surplus. This can be done under the criteria outlined in paragraph (c) or per costs permitted under paragraph (j).

  • Definition clarification (i):

    • “Lunchroom furniture” refers to pupil tables and chairs regularly used in the lunchroom for consuming meals or snacks.

  • New restrictions (j):

    • Costs for remodeling or reconfiguration of kitchen, serving area, lunchroom, or food storage may not be charged to the food service fund except as allowed under paragraph (h).
    • Costs for plumbing, electrical, HVAC, or other building utility work necessary to operate equipment or remediate health/safety hazards may not be charged to the food service fund except as allowed under paragraph (h).

  • Effective date:

    • The act is effective for fiscal year 2026 and later.

Who/what is affected

  • Minnesota school districts operating a school food service program.
  • Districts must determine whether specific costs are funded from the school food service fund or the general fund.
  • District administrators (superintendents, fiscal managers) and, where applicable, boards of education, particularly with respect to allocations of labor costs and contracts with food service management companies.
  • Departments that determine the statewide average wage for food service directors (for wage-charge limitations).

Procedural and timeline notes

  • Effective beginning in FY 2026.
  • If deficits occur, districts have up to three years to plan/eliminate them without a permanent transfer, subject to annual reporting and commissioner oversight.
  • Surplus adjustments require three consecutive years of surplus before reclassifying certain costs back to the food service fund, up to the amount of the surplus.

Overall impact

HF 3183 seeks to:
- Tighten and clarify which expenditures belong in the school food service fund versus the general fund.
- Introduce stricter controls on capital expenditures and building-related costs.
- Provide a structured approach to deficits and surpluses in the food service fund, including potential district-level remedies and third-party management considerations.
- Offer new flexibility for reallocating certain administrative costs to the food service fund when surpluses exist, while preserving health and safety limitations on certain building-related costs.

Compiled from official sources — confirm details with the bill’s official record.

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