It’s Time for a New Minnesota Miracle

An overview of Minnesota Source: Minnesota

Department of Education

Population 4,919,479 (2000 census) 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

Our Population

Source: 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

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

Source: 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 Source: Children’s Defense Fund

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

Minnesota is at the highest level of the decade 12% of children under 18 live in poverty;50% are

under age 5 20% of Asian children, 26% of Hispanic/Latino

children and 45% of African American children live in poverty

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 Source: 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.

Other mandates• 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

How we fund schools

Per Pupil Formula (Set by the Legislature)

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

Present Pupil units: Kindergartners = .612

Grades 1-3 = 1.115 Grades 4-6 = 1.06 Grades 7-12 = 1.3

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

If we had linked the per pupil formula to inflation where we have been?

After the 2007 Legislative session

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

92-9394-95

96-9798-99

00-0102-03

04-0506-07

08-09

inflation adjusted net formula allowance

Minnesota school districts respond

1990 47% of school districts in the state of Minnesota had levies in place

By 2008 that number rose to 90% 0

50

100

150

200

250

300

350

1989 2008

# of schools withlevies

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!

So how does a school funding bill help Minnesota’s bottom line?

Minnesota Future Labor Force

Source: Tom Gillaspy, MN state demographer

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

Source: Tom Gillaspy, MN state demographer

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

Our E-16 population is more diverse Source: 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

• 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”

Source: Tom Gillaspy, MN state demographer

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

And Minnesota’s Tax Rankings? Source: Minnesota 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? Source: Public Education Finance reports

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

A Smart InvestmentA Constitutional mandate Source:

Minnesota Constitution Article XIII, Section 1

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

Source: Tom Gillaspy, MN state demographer

0

150000

300000

450000

600000

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

Net Labor Force Growth

So what can I do?Get involved! Learn about how funding decisions affect your schools and ultimately

impact kids. Develop a relationship with your legislators. Get involved in a local legislative network so that you know what is

happening at the Capitol. Join Parents United network to receive electronic legislative updates

and alerts at www.parentsunited.org Organize a Legislative Action Committee in your community. Spread the word—use local papers and the ball fields to tell your stories

and educate your community about the REAL needs of our schools. Make a “road trip” to the Capitol. Let your legislator know you are

following their efforts. Make education a campaign issue by attending candidate forums and

asking about education.

5/28/08 Minnesota House of Representatives 33

Online Resources--addendum

HF 4178, the proposed amendments, and a district-by-district spreadsheet of proposed revenue by school district are available online by searching House File 4178 on the Minnesota House of Representatives website’s home page or by going directly to the following webpage:

http://www.house.leg.state.mn.us/bills/billnum.asp?Billnumber=hf4178&ls_year=85&session_year=2007&session_number=0

Detailed descriptions of Minnesota’s current school finance system can be found here:

http://www.house.leg.state.mn.us/hrd/issinfo/ed_k12.htm#FIN

and here:

http://www.house.leg.state.mn.us/fiscal/files/07fined.pdf

5/28/08 Minnesota House of Representatives 34

General Education ComponentsCurrent Law vs. HF 4178--addendum

Component Current Law(in thousands)

HF 4178(in thousands)

Revenue Increase

(in thousands)

Basic Revenue 4,886,785 6,153,306 1,266,521

Extended Time Revenue 55,634 89,886 34,232

Compensatory Revenue 346,726 661,046 314,320

LEP Revenue 40,304 80,316 40,012

T&E Revenue 1,767 0 -1,7670

LEI Revenue 0 155,962 155,962

Operating Sparsity 22,596 33,018 10,422

Transportation Sparsity 60,963 76,538 15,575

Operating Capital 194,812 189,769 -5,043

Equity 94,950 0 -94,450

Referendum Offset Revenue 0 410,220 410,220

Gifted and Talented 11,445 0 -11,445

Gifted and Talented Reserve 0 $61,533

Declining Enrollment Revenue 0 73,450 73,450

Transition Revenue 29,745 0 -29,745

Pension Adjustment -30,692 0 30,692

Referendum Revenue 724,239 313,904 -410,338

Q-Comp Revenue 92,979 0 -92,979