1. It’s Time for a New Minnesota Miracle

2. 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

3. Our Population Source: Tom Gillaspy, MN state demographer

4. Change In Minnesota School Enrollments to By Language Spoken At Home Source: Tom Gillaspy, MN state demographer

5. 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

6. % of MN children rated “not yet” performing adequately at Kindergarten entrance Source: Brookings Institute
Language
and literacy
Mathematical
thinking

7. 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.

8. 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

9. 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 =
Grades 4-6 = 1.06
Grades 7-12 = 1.3

10. History of the Basic Formula

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

12. Minnesota school districts respond
% of school districts in the state of Minnesota had levies in place
By 2008 that number rose to 90%

13. 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!

14. 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 =
Grades 4-6 = 1.06
Grades 7-12 = 1.3
Ties the per pupil formula to inflation using the Implicit Price Deflator

15. Provides for early learning
Dependable funding for:
All Day K or early childhood
Early intervention programs

16. 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

17. 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

18. 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

19. 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.

20. For our kids to succeed—all four legs of the table are critical!
Early learning, rigor, that extra boost and infrastructure!

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

22. Minnesota Future Labor Force
Minnesota Future Labor Force Source: Tom Gillaspy, MN state demographer

23. By 2020 65+ is Larger than K-12 By 2030 65+ Doubles
By is Larger than K-12 By 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

24. Our E-16 population is more diverse
Our E-16 population is more diverse Source: Tom Gillaspy, MN state demographer

25. “State Education and Minnesota Demographic Change” Source: Tom Gillaspy, MN state demographer

26. 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%

27. 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

28. 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

29. 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

30. 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.”

31. Minnesota Future Labor Force
Minnesota Future Labor Force Source: Tom Gillaspy, MN state demographer

32. 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
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.

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:
Detailed descriptions of Minnesota’s current school finance system can be found here:
and here:
5/28/08
Minnesota House of Representatives 33

34. 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
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