Many rural school districts are running up balances in Early Childhood Family Education (ECFE) budgets and deficits in School Readiness budgets. For this fiscal year only, districts in this situation can request the Minnesota Commissioner of Education to approve the transfer of funds from ECFE to School Readiness.

Because both ECFE and School Readiness funds are “within” the Community Service Fund (Fund 4), these transfers would not be a transfer “from” the community service fund to a different fund.

MREA supports this authority, which came to light in testimony regarding SF 333. This bill would give school districts this authority in any fiscal year.

There is no requirement to have a negative balance in School Readiness funds to be allowed to transfer funds. As long as ECFE program offerings are not diminished, districts can choose to transfer funds. Your district needs to submit its resolution, a copy of the board minutes adopting the resolution, and a completed “Request for Fund Transfer” form.

Learn more about the steps needed to make such a transfer before June 30, 2015.

View MDE’s Financial Management webpage for the “Request for Fund Transfer” form (middle of page) or access the form here.