MN SF3266

Establishes statutory framework for state aid payment shifts and property tax recognition shifts in Minnesota school finance, with reductions to be restored when general fund surpluses allow.

Reduces the current year aid payment percentage for school districts from 90 percent to 73 percent, effective for fiscal years 2010 and later.

Modifies property tax levy recognition timing, requiring school districts to recognize property tax revenue in June 2010 only under the old formula, then shifting to fiscal year 2011 and later with revised referendum levy percentages (49.1 percent instead of 31 percent).

Creates prioritized allocation of future budget surpluses: cash flow account ($350,000,000), budget reserve ($653,000,000), increased school aid payments (up to 90 percent), and restoration of aid reductions and property tax shifts.

Allows school districts exceeding expenditure limitations to receive an early final payment of up to $7,500,000 total statewide on June 20 to address negative fund balances.