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

Change In Minnesota School Enrollments 1999-00 to 2004-05 By Language Spoken At Home Source: Tom Gillaspy, MN state demographer

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 Language and 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

History of the Basic Formula

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

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%

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 = 1.06 Grades 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 Minnesota Future Labor Force Source: Tom Gillaspy, MN state demographer

By 2020 65+ is Larger than K-12 By 2030 65+ Doubles By 2020 65+ is Larger than K-12 By 2030 65+ Doubles Source: Tom Gillaspy, MN state demographer 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 Our E-16 population is more diverse Source: Tom Gillaspy, MN state demographer

“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 2005 19th 2006

And our Price of Government? 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. Data: Minnesota Department of Finance

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

A Smart Investment A Constitutional mandate A Smart Investment A 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 Minnesota Future Labor Force Source: Tom Gillaspy, MN state demographer

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.

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 33

General Education Components Current Law vs. HF 4178--addendum (in thousands) HF 4178 Revenue Increase 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 -1,7670 LEI Revenue 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 -94,450 Referendum Offset Revenue 410,220 Gifted and Talented 11,445 -11,445 Gifted and Talented Reserve $61,533 Declining Enrollment Revenue 73,450 Transition Revenue 29,745 -29,745 Pension Adjustment -30,692 30,692 Referendum Revenue 724,239 313,904 -410,338 Q-Comp Revenue 92,979 -92,979 5/28/08 Minnesota House of Representatives 34