MN SF3351

Limits budget reserve transfers to 33 percent of positive unrestricted general fund balance determined in November forecasts, conditioned on meeting specified requirements in subdivision 2, paragraph (a).

Establishes special education aid payment percentage restoration as priority allocation clause (5) in the positive balance distribution hierarchy, allowing funds to increase special education aid payment percentage under section 127A.45, subdivision 13, paragraph (b), to not more than 100 percent.

Removes the clean water fund allocation requirement (22 million dollar transfer) and replaces it with special education aid payment percentage restoration as the fifth-priority use of forecasted positive general fund balances.

Requires the commissioner of management and budget to certify special education aid payment percentage increases to the commissioner of education, who shall apply those increases effective for the current fiscal year and thereafter.

Effective dates: Section 1 (budget reserve calculations) effective January 8, 2019; Section 2 (priority allocations) effective January 8, 2019; Section 3 (special education aid payment percentage) effective July 1, 2018.