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Legislative Update A Communication for Parents and Education Supporters in SEE Districts | April 30, 2010 |
If this is your first Legislative Update from SEE - Welcome!
For those who have been with us through the years - Thank you!
SEE publishes this Legislative Update weekly during the legislative session.
Brad Lundell, Executive Director for SEE, writes a blog on almost a daily basis. For up-to-date information about what is happening at the capitol visit Brad's Blog. |
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What's happening at the capitol? \
The governor and the legislature are counting on $408 million from the federal government to reduce one-third of the state's budget deficit. This week, Commissioner Tom Hanson from the Minnesota Management and Budget (M&MB) agency testified before committee that it is 80% likely that Minnesota will receive the dollars, but it is very unlikely that those dollars will come before the end of the session on May 17. However, the National Conference of State Legislatures earlier sent out an action alert, stating these dollars were in jeopardy of disappearing. See this entry for more information. Obviously, there is a lot of confusion over what will happen at the federal level, But if the state does not receive these dollars, it is almost certain that K-12 education will see a reduction in funding for the 2010-11 school year.
So the legislature and the executive branch are in a quandary. If the budget can't be balanced with these federal dollars how do they end the session? None of the legislators, all of whom are up for re-election, want to make $408 million in cuts right before this fall's election. What is Plan B? |
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Where to from here?
Both the House and Senate unveiled their education omnibus bills. The House bill is 120 pages and contains many policy provisions for our K-12 schools. The Senate, on the other hand, is 6 pages of small grant reductions that help the Senate reach its education target of cutting approximately $15 million, a relatively small amount, from K-12 education; and a two page bill with fund transfers for just a few specific school districts. Most of the $15 million reduction is achieved by transferring alternative facilities dollars from state aid to local property tax levies in Minneapolis, St. Paul and Duluth. Currently, 34 larger districts, out of 339 districts in the state, can levy dollars from their local tax payers to pay for alternative buildings as needed. Minneapolis, St. Paul and Duluth are the only three that get some of their alternative facilities revenue from state aid. Stumpf decided that allowing these three cities to get less state aid and substitute it with local levy would be an acceptable option that would keep the senate cuts out of the classroom. Needless to say the legislators from these cities were not pleased with this choice.
It's hard to figure out the Senate's strategy. Six pages of small grant reductions and two of district specific fund transfers are not a typical education omnibus bill and throws away all of the work the committee has done throughout the session to put forth provisons that would help out our schools in these difficult times. Stumpf did mention that the senate would have a policy bill on Tuesday that incorporates the provisions wanted by the Governor for the second application of Race to the Top. Yet, what is the Senate going to go to conference committee with? Typically, both the House and the Senate pass the education omnibus bills. The differences are worked out in a conference committee made up of members from of both bodies. The House education omnibus bill has some provisions that would be good for our schools, such as allowing school board authority to renew expiring referendums and putting the governor's unallotment shift of education payments into law. We would hate to see these provisions lost because the Senate chooses not to participate in the process. |
| The House Education Omnibus Bill
The House released HF2431. its Education Omnibus bill this week. House Research has prepared a bill summary. Brad reviews it on his blog and here is his summary of some of the highlights:
Sets the aid payment shift at 73%/27% - the same level as implemented by the Governor last July - in statute (Article 5, Section 9)
Sets the property tax recognition shift at 48.1% beginning for FY 2010, the same general vicinity as the level set by the Governor unilaterally after last session (Article 5, Section 8).
Pays back shifts and replenishes budget reserves in the same manner as current law (No change from current law, but there should be a change from current law).
Allows district renewing a capital projects levy at the same tax rate to put the "voting 'Yes' will raise your taxes" language on the ballot (Article 1, Section 4).
Establishes an early graduation achievement scholarship program that will provide a scholarship up to $7,500 for students that graduate high school early.
Raises equalizing factor for total operating capital levy from $10,700/PU to $10,915/PU for taxes payable in 2011 and to $11, 029/PU for taxes payable in 2012 and later (Article 1, Section 8).
Allows school boards to renew an expiring operating referendum by board approval (Article 1, Section 10). These last two provisions are tied together. By allowing boards to renew operating levies without approval of voters in the school district, the state estimates that levies will be slightly higher as a result of this action then they ordinarily would be. Because the House has a zero levy target, it was forced to buy down these levies somewhere and that was accomplished through an increase in the total operating capital equalizing factor. The amount of the adjustment is approximately $3.8 million.
School districts are encouraged to provide mental health instruction for students in grades 7 through 12 (Article 2, Section 5).
A number of provisions relating to the education and reporting on results of "at-risk and off-track" students in reaching state and locally determined learning benchmarks (Article 2, Sections 9, 10, and 28).
Allows Board of Teaching to develop a alternative teacher preparation program and limited-term teacher license (Article 2, Section 17).
Creates "efficiency plus" task forces to investigate how smaller school districts can cooperate with other school districts and local units of government to deliver services more efficiently (Article 2, Section 18).
Suspends requirement that revenue be reserved for staff development temporarily and allows districts to transfer any balance remaining in the fund on June 30, 2010, into the general fund permanently (Article 2, Section 25).
Creates fiber optic infrastructure grant program with two funds (one in the general fund and one in the bond proceeds fund) to strengthen state's commitment to fiber optic networks (Article 4, Section 3).
General authority for school districts to make fund transfers during the 2009-2010 and 2010-2011 school years is created (Article 5, Section 15).
Legislative Coordinating Commission is given authority to undertake activities that are necessary to advise the Legislature and monitor the executive branch on issues related to the Permanent School Fund (Article 6, Section 1).
Article 8 is devoted to the "New Minnesota Miracle" with the same language as last year's bill. Formula amounts are great! Referendum cap is too high. Equalization rates are too low. Funding is set to begin in 2014 if funding is available.
The bill was passed with amendments in the House Education Committee and will be heard in the House Finance Committee next week. Along the way, the bill can be amended in Committee, so it may continue to evolve. |
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What you can do
*Pass these updates on and ask your friends to sign up to receive SEE's Legislative Updates so they too can be part of our network. Now is the time to build education support networks so that when critical times occur during the legislative session we can respond. In the political world, it is the voice of many that can make a difference.
* Contact your state senator and ask them to put the education unallotment shift into law. Also, we need the Senate to engage in the process and move some of the provisions that were heard in the Senate Education Committee and still found in the House education omnibus bill. Click here to find out who represents you. |
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Working together, we can make a difference.
If you have any questions or comments, please don't hesitate to contact me.
Deb Griffiths
Director of Communications and Community Outreach
Schools for Equity in Education
612-309-0089
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| Education Committees and Schedule
House Finance Committee
MONDAY, May 3, 2010
*** Note: *** Change in meeting time
10:00 AM
*** Note: *** Change in meeting room
Room: 5 State Office Building
Chair: Rep. Lyndon Carlson
Bill(s) Removed
Agenda:
HF2431 (Greiling) School finance system modified, and new education funding framework created.
SF1761 (Fritz) Health plans required to establish equal out-of-pocket requirements for oral and intravenously administered chemotherapy medications.
Senate Education Budget and Policy Committee
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