Legislative Update
A Communication for Parents and Education Supporters in SEE Districts		 April 11, 2008
In This Issue
The "Next Minnesota Miracle"
Details of the New Comprehensive Funding Reform
What Happens Now?
What You Can Do
Quick Links
 The "Next Minnesota Miracle"
The long awaited comprehensive funding reform bill was heard in the House K-12 finance division committee on Thursday.  HF4178 creates a new funding formula that is based on the work of PS Minnesota and will rationally links state funding to student achievement of the national and state standards.  It focuses on significantly raising basic per pupil funding which has been neglected over the previous years.  Then it uses targeted categorical funding for students that need additional resources to succeed.  Rep. Greiling, chair of the committee, said the challenge was to build the structure of the new formula properly with every link sized right.  She also said the formula was scalable - meaning that it could be funded incrementally over a period of years.  Her prediction would be that if she could get support for the bill it would still take 6 years to fully fund the new formula. 
 

At the committee meeting it was clear that everyone could find parts of this bill that they liked and parts that they didn't.  For SEE districts, the concern is that referendum equalization is not increased and the role of the referendum is not clearly defined.  Rep. Greiling stated that concerns would be addressed and the reform could be refined along the way.  However, Rep. Greiling was clear that integrity of the reform is based on how all the pieces fit together and overall cohesiveness must be maintained.
Details of the New Comprehensive Funding Reform

On average, districts would get a 27% increase over 2008-09 general education funding which would cost the state about $1.8 billion dollars.  This cost is fluid because it doesn't include increases to special education which is roughly an additional $150 million or the reduction in property taxes included in the bill. 

Some Highlights of the Funding Reform (see House Research Bill Summary for complete details and General Education Revenue Spreadsheet for financial information)

Basic Revenue.  The basic formula allowance is increased from the current $5,124 to $7,500 per pupil unit.  This number was determined to be what it cost to provide the resources for the "average" child to meet or exceed national and state requirements based on input from PS Minnesota and the state education policy committees.

Adjusted Pupil Units.  Student weightings are eliminated and each student is equal to 1 pupil unit.  This provides for all-day kindergarten.  It also means districts with more secondary students will get less of an increase because these students were weighted at 1.3 in the old system.

Inflation Adjustments.  The basic formula allowance is adjusted for inflation each year based on the implicit price deflator.  This would provide stability and predictability in education funding.

Catagorical Aid.  The reform now provides more targeted aid for students and districts that require additional resources to be successful.  Concentration factors have been adjusted in some cases.  And many are linked to the formula so that when the formula increases so does the categorical aid to prevent shifts from general education to these areas in the future. 

Declining Enrollment.  Creates a new component of general education revenue for districts with declining enrollments by using a three year average loss of students calculation. 

Location Equity Revenue.  Provides additional revenue to districts in areas where the cost of living is high which reflects in higher costs to those districts for similar services.   

Referendum Allowance.  $500 of referendum is replaced by state aid.  This will be a property tax reduction in those districts that have referendum and new dollars for those that do not. 

Equalized Debt Service Levy.  Increases first tier debt service equalization factor from $3,200 to 100% of the state average ANTC (~$7,500).  Increases the second tier equalizing factors from $8,000 to 150% of the state average ANTC (~$11,250)

There is much more in this reform.  For those who would like the complete details you can click on the House Research Bill Summary which is easier to read than the HF4178 bill text.   You can see the General Education Revenue Spreadsheet that contains all the data on what each district would receive if the bill was fully funded.  These spread sheets are overwhelming but I know some of you will want to see it.  The last three columns in the spread sheet give the total increases in general education revenue by total dollars, per pupil revenue, and percentage.  The numbers include general education and referendum but do not include the increase in special education which is about a 10% increase in current special education funding in this reform. 

 What Happens Now? 

No further action will be taken on funding reform this session.  The House will have a series of regional meetings over the summer into fall to provide information and build support.  I would encourage everyone to attend these meetings when they are in your area.  We will publish dates and times when they are available. 

This new funding system will be introduced next session during the critical state funding year.  Whether it goes anywhere will depend on the amount of support that can be built for it among all sectors in the state.  Education leaders, business leaders, public & private sector organizations and individuals must all come together and build a coalition that will rally for our public schools and the need to invest in our kids now so we can ensure prosperity for the future.    

 
 What You Can Do

The Senate and House finance conference committee continues to work out their differences in the budget deficit-reduction bill.  Buried in the mega budget bill is an emergency increase for education.  Let your legislator know that our schools need the the higher proposed increase of $51 per pupil. 

  • Visit the capitol.  Talk with your legislators.  Sit in on a committee meeting. These are powerful ways to let the legislators know you support our public schools.  I'd be happy to help you contact your legislators and accompany you at the capitol so please don't hesitate to contact me at deb.griffiths@schoolsforequity.org.

  • Keep emailing your legislators and copy the  Finance Conference Committee members.  If you already sent a email to your legislators, sent it again to the Finance Conference Committee members.  Their email addresses are below.  Click here to find out who represents you.  Write simple notes to your senator and representative (you can even cut and paste this one and if you like you can add your own personal notes to make it unique):

    Dear Representative and Senator,

    Our schools are in a funding crisis.  Currently, the HF1812 House Deficit Reduction bill includes a increase of $51 per pupil and the SF3813 Senate bill offers $36 per pupil increase.   I ask that you support the higher increase and talk to your caucus leaders to let them know that the $51 per pupil funding in NEW dollars is the least our schools should receive to minimize the funding reductions next year.

    However, long term stability can only be achieved by comprehensive funding reform.  I ask that you support the HF4178(Greiling)/SF3828(Bonoff) - Education Finance System Funding Reform bill that will provide the resources our schools need to succeed

Sincerely,

(Your name and address)    

 

 Include the conference committee members:
 

It is always a good idea to copy the governor and the leaders of the House and Senate

Gov.tim.pawlenty@state.mn.us, sen.larry.pogemiller@senate.mn, rep.margaret.kelliher@house.mn

 

Don't forget to check Brad's Blog for daily updates from the capitol. 
 
If you have any questions or comments, please don't hesitate to contact me.
 
Deb Griffiths
Schools for Equity in Education
612-309-0089