Legislative Update
A Communication for Parents and Education Supporters in SEE Districts		May 21, 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.
In This Issue
Session wraps up
No education omnibus bill
Race to the top
Conclusion
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Session wraps up \
 

A budget agreement to erase the $3 billion deficit was reached hours before the end of the regular session. If you want the chaotic details, I encourage you to visit Brad's Blog. 

 
 
In the end, the Legislature agreed to most of the Governor's unallotments.  Two-thirds of the solution, or $2 billion dollars worth, was the school aid payment shift.  Typically, the State pays 90% of what it owes our schools in the current year and the other 10% in the following year.  Now, the State will pay only 70% in the current year and the other 30% later.  Shifting the payments into the next year makes it look like the State spent $2 billion less.  This is an accounting gimmick and does NOT do anything to address the structural imbalance in the State's budget.  The agreement stated that the State would pay back the schools in the next biennium, yet they did not define where the money will come from. 
 

Due to the shift, school districts will have to borrow money to pay their bills.   Minnesota Association of School Administrators has estimated that the cost to our schools to borrow this money is equivalent to the loss of 400 teachers a year!
 No education omnibus bill
In the final days of the session, a conference committee met to produce HF2072 - the education omnibus bill and you can read the House Research Bill Summary.  The education omnibus bill passed in the House.  However on the last day of session, rather than sending the bill  to the Governor, the Senate rejected the bill by a 38-24 vote to send it back to conference committee; mainly due to concerns about allowing the school boards to renew expiring referendums without voter approval.  With this vote, the bill was dead. 
The rumor was circulating that the Governor was going to veto the education omnibus bill because of this provision.  Opponents were stating that supporting the bill would take away the citizen's right to vote and would increase taxes. Still, it was very suprising that DFL controlled Senate did not support the omnibus bill that was drafted by their colleagues. 
Cities and county boards can raise property taxes without voter approval; it seems reasonable to allow school boards the same authority.  The system allows prisons to be built, water towers erected, and police to be hired at the will of a board.  Why is it only the education of our kids that requires the expensive and uncertain process of running a referendum campaign to get badly needed revenue?   
 
Lacking an education omnibus bill, some education provisions were sprinkled throughout various other bills such as:   
  • The language that required the State to borrow money from school districts' fund reserves before borrowing from outside lenders was changed to be more permissive.
  • Physical education is now part of the state-wide standards and a voluntary Healthy Kids Rewards Program was established. (SF2908)
  • Small benefit increases for one pension fund (MSRS).  The bill is devoted to bringing greater integrity and stability to the existing funds. (SF2918) 
  For more education related provisions and details, see Brad's Blog.
Race to the Top
Included in the dead education omnibus bill were reforms intended to give Minnesota a better shot at winning a Race to the Top (RTTT) federal grant.  Governor Pawlenty decided to not re-apply to RTTT.
Conclusion
Our State leaders took the path of least resistance by resorting to the education shift to "kick the can down the road" one more time.  Education organizations prefer the shift to an outright cut, but without a mechanism to repay these funds, will the shift morph into a cut next year? 
 
Ninety percent of the legislators are hitting the campaign trail to retain their seats in the November elections.  Governor Pawlenty has decided not to run again.  The new governor and legislators will face a projected $5.8 billion deficit in the 2011 legislative session. 
 
The November election will be critical to the fate of our schools.  I encourage you to attend candidate forums and ask pointed questions of the candidates.  How will they address the huge projected deficit? What are their plans for education?  And for anyone who claims that the $5.8 billion deficit can be handled by cuts alone, consider this:
 
If we...
  • Cut all kids from health care ($139 million) and
  • Eliminate all cash welfare ($145 million) and
  • Shut down 20% of nursing homes ($191 million) and
  • Cut salaries 10% for all branches of government ($225 million) and
  • Eliminate all Local Government Aid ($1 billion) and
  • Cut all state government operations by 50% ($1.75 billion) and
  • Close all the state parks ($52 million) and
  • Eliminate House and Senate per diem ($4.2 million) and  
  • Shut down 10 State College campuses ($146 million)
AND ADD IT ALL UP: It only reaches $3.6 billion of the $5.8 billion projected deficit!
Source:  Joint Religious Legislative Coalition (JRLC), based on House Research Estimates of 2009 spending levels.
 
Why is this? Almost 40% of the general fund is spent on K-12 education. 
Without additional revenue, a deficit this large will almost certainly result in significant cuts to our schools. 
 
This is the final legislative update for this session.  However, I will communicate throughout the year as important education issues arise.
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