How can a bill enhance student achievement in Minnesota?

Minnesota Minnesota Department of Education

829,184 kids in public K-12 schools 50.5% K-6 49.4% 7-12 13% receiving special education services 7% English language learners 31% qualify for free and reduced lunches

1881 schools 52,796 teachers 341 school districts

And school funding

Per Pupil Formula (Set by the Legislature)

x AMCPU (Adj. Marginal Cost Pupil Units) = $$ District Operating Funds

Pupil units: Kindergartners = .612 // Grades 1-3 = 1.115 // Grades 4-6 = 1.06 //

Grades 7-12 = 1.3

But Our Population is Changing

Tom Gillaspy, MN state demographer

378 2,374

12,904 11,912

-43,403

-15,835

-50000

-40000

-30000

-20000

-10000

0

10000

20000

Am Indian Asian Hispanic Black White Total

Ch

ang

e E

nro

llmen

t 20

00-0

1 to

200

4-05

Our E-16 population is more diverse Tom Gillaspy, MN state demographer

25.4

27.8

28.2

25.4

38.3

0 10 20 30 40 50

Black

Am Indian

Asian

Hispanic

White Not Hispanic

Median Age in Years

Change In Minnesota School Enrollments 1999-00 to 2004-05 By Language Spoken At Home

Tom Gillaspy, MN state demographer

-43,974

25,460

-18,514

-50000

-40000

-30000

-20000

-10000

0

10000

20000

30000

English Speaking

Total Non English

Total K-12 Students

Kids Count findings Children’s Defense Fund

Most recent data shows: The number children living in poverty in Minnesota

has climbed to the highest level of the decade 12% of children under 18 live in poverty that’s

152,000 kids 50% of these children are under age 5 20% of Asian children, 26% of Hispanic/Latino

children and 45% of African American children live in poverty

Only three states had higher poverty rates among Black children than Minnesota--Mississippi, Louisiana and Oklahoma

% of MN children rated “not yet” performing adequately at Kindergarten entrance Brookings Institute

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%0-$35,000

$35,001-$55,000

$55,001-$75,000

$75,001 ormore

Languageand literacy

Mathematical thinking

Special Education Requirements

The “Individuals with Disabilities Education Act” (IDEA) 1975 brought over 1 million children who were previously kept at home or in institutions into the public school system.

And mandates have increased • No Child Left Behind • Proficiency Testing• Grad Standards• Special Education mandates• Transportation• English Language Learning• Health and Safety mandates• Physical Education• HIV/AIDS Sex Education• Drug/Alcohol Abuse Education• Bus Safety• Title 1 Programs

But the funding?

History of the per pupil formula

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

92-93 95-96 98-99 01-02 04-05

3Line 34Linear (Line 34)Linear (Line 34)Linear (Line 34)

School Year Formula

Allowance General Increase

Actual Roll-ins

Actual "New" Dollar Amount

"Perceived" Percent Change

"Real" Percent Change

1991-1992 $3,0501992-1993 $3,050 $0 0 0.00% 0.00%1993-1994 $3,050 $0 0 0.00% 0.00%1994-1995 $3,150 $100 $100 0 3.17% 0.00%1995-1996 $3,205 $55 55 1.72% 1.72%1996-1997 $3,505 $300 $300 0 8.56% 0.00%1997-1998 $3,581 $76 76 2.12% 2.12%1998-1999 $3,530 $79 $130 -51 2.24% -1.44%1999-2000 $3,740 $210 $43 167 5.61% 4.47%2000-2001 $3,964 $224 $67 118 5.65% 2.98%2001-2002 $4,068 $104 104 2.56% 2.56%2002-2003 $4,601 $533 $429 118 11.58% 2.56%2003-2004 $4,601 $0 0 0.00% 0.00%2004-2005 $4,601 $0 0 0.00% 0.00%2005-2006 $4,785 $184 184 4.00% 4.00%2006-2007 $4,976 $191 191 4.00% 4.00%2007-2008 $5,075 $99 99 2.00% 2.00%

2008-09 $5,124 $49 49 1.00% 1.00%

Average 3.19% 1.53%

CPI Average ~3.00

So how does HF 4178 address these needs

An adequate formula, linked to inflation, using targeted dollars for special student and district needs, reduces or eliminates a district’s need to use general education dollars to buy special services AND allows for local levies to be used for local initiatives.Provides early learning, rigor, an extra boost and infrastructure!

HOW?

Sets the basic per pupil formula high enough to cover students basic instructional needs while other component formulas can be used for specific additional needs Increases the per pupil formula allowance from $5175

to $7500. All students count as 1.0

Currently we weight Pupil units: Kindergartners = .612 Grades 1-3 = 1.115 Grades 4-6 = 1.06Grades 7-12 = 1.3

Ties the per pupil formula to inflation using the Implicit Price Deflator

Provides for early learning

Dependable funding for: All Day K or early childhood Early intervention programs

Provides for academic rigor

Academically rigorous coursework Lower class size Directed funds for innovation,

career and technical education and gifted and talented programs so districts can provide a level of funding for students in each of these areas

Provides that “extra boost”

Links ELL to the formula, lifts the cap and increases the reimbursement (20% of the formula allowance)

An additional $2500 (33% of the formula) for children who qualify for Free and reduced lunch

Funding for students to spend more time in school—ie summer school

Fully funds the state’s formula for special education costs

Provides infrastructure

So that buildings and buses support learning, not compete with it HF 4178 provides transportation dollars and dollars to maintain school district buildings.

Creates hazardous pupil transportation aid and 5% of district total transportation budget for bus purchase

All school boards may levy for cost of deferred maintenance

Has a mechanism to help districts deal with declining enrollment

Provides funding for regional cost differences

Sparsity funding for our more rural areas remains essentially the same as it is today but decreases minimum sparsity distance from 19 to 15 miles.

For our kids to succeed—all four legs of the table are critical!

Early learning, rigor, that extra boost and infrastructure!

Missing from the bill

A provision for the state to carry the high cost on low incidence special education students

Specific provision for technology

Discussion of use of local referenda

But can we afford to pay for it?

A Smart InvestmentA Constitutional mandate

Section 1.”UNIFORM SYSTEM OF PUBLIC

SCHOOLS. The stability of a republican form of government depending mainly upon the intelligence of the people, it is the duty of the legislature to establish a general and uniform system of public schools. The legislature shall make such provisions by taxation or otherwise as will secure a thorough and efficient system of public schools throughout the state.”

Minnesota Future Labor Force

Tom Gillaspy

0

150000

300000

450000

600000

1970-80 1980-90 1990-00 2000-10 2010-20 2020-30

Net Labor Force Growth

By 2020 65+ is Larger than K-12By 2030 65+ Doubles Tom Gillaspy

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1950 1960 1970 1980 1990 2000 2010 2020 2030

18-24

65+

5-17

The 15,000 students that did not graduate from Minnesota high schools in 2008 cost Minnesota

Alliance for Education Excellence

nearly $4 billion in lost lifetime earnings $224 million in lifetime health care costs The loss of $829 million more in

accumulated wealth than if all heads of households had graduated

a combination of savings and revenue of more than $77 million in reduced crime spending and increased earnings if the male high school graduation rate increase by just 5%

But we are already the state with the highest taxes!

Minnesota’s Tax RankingsMinnesota Budget Project

Minnesota ‘s Total State and Local Taxes Ranking, as a Percentage of Income

1980 8th

1990 7th

1995 5th

2000 8th

2005 19th

2006 19th

And our Price of Government?

Data: Minnesota Department of Finance

The Price of Government is the State of Minnesota’s official measure and is factored as total state and local revenue as a percentage of personal income.

And school funding?

Minnesota’s ranking in the nation for total public education spending as a percent of personal income.

1987 14th

1992 25th

1997 21st

2002 39th

2003 41st

2004 40th

2005 42nd

2006 41st

• Continued prosperity with slower labor force growth means increased productivity

• Increased productivity requires increased education and training

• Disparities in Minnesota education are large and growing

• Lowest attainment is in the very groups that are growing

“State Education and Minnesota Demographic Change” Tom Gillaspy

Can we afford NOT to pay for it?

Minnesota Future Labor Force

Tom Gillaspy

0

150000

300000

450000

600000

1970-80 1980-90 1990-00 2000-10 2010-20 2020-30

Net Labor Force Growth