K-12 Education General Fund Expenditures by Program, FY 2001
K-12 Education General Fund Expenditures by Program, FY 2006
PERCENT OF SCHOOL DISTRICTS & CHARTER SCHOOLS WITH NEGATIVE UNRESERVED GEN FUND BALANCES AND IN SOD 7.5% 4.1% 16.7% 17.6% 13.4% 9.3% 7.0% 6.5% 8.2% 10.9% 5.8% 9.7% 5.0% 5.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Negative Unreserved Gen Fund BalIn SOD Negative Unreserved General Fund & Statutory Operating Debt
Fiscal Year Including Special EducExcluding Special Educ Pupil – Teacher Ratios,
FY 2009 General Fund Revenue Per ADM
Selected Cost Drivers Collective Bargaining Issues –Cost of health insurance (global issue) –Cost of retiree benefits –State statutes (PELRA, January 15 th deadline, etc.) –Teacher contracts (teacher transfer rules, etc.) –Rule of 90 for Tier II (teachers hired after September 1, 1989) Special Education –About 13% of student population with varying degree of complexities –One-third of special education population does not attend resident district (open enrollment) –State cost-based formula is complex and drives up costs –State and federal mandates may contribute to costs
SPECIAL EDUCATION FUNDING $329.5 Million increase in Special Education Aid for the FY Biennium –Regular Sp Ed aid increased by 27.5% for FY 08 and an additional 3.8% for FY 09 –Excess cost aid increased by 5.2% in FY 08 – no additional increase in FY 09 Projected cross subsidy reduced from $537 M in FY 2007 to $435 M in FY 08 and $472 M in FY 09
SPECIAL EDUCATION FUNDING Est. Statewide Adjustment Factors (Proration) Sp Ed Regular Excess Cost FY % 81.4% FY FY FY
SPECIAL EDUCATION FUNDING Cap Gap - Cost to Eliminate Proration 100% Aid Entitlement Basis FY 2008 $61 million FY 2009$80 million FY 2010$117 million FY 2011$121 million
Focus on Teacher Quality and Human Capital Effective teachers increase student achievement and close the achievement gap Sample of Teacher Effectiveness Studies: Dr. Marzano found that effective teachers had a 43 percent positive impact on student achievement, the highest school-based factor. By comparison, class size only had an 8 percent positive impact (Marzano, 2003). Data and studies from Tennessee showed that if two average eight-year-old students were given different teachers – one of them a high performer, the other a low performer – the students’ performance diverge more than 50 percentile points within three years (Sanders, 1998). Dallas study found that the performance gap between students assigned three effective teachers in a row, and those assigned three ineffective teachers in a row, was 49 percentile points (McKinsey, 2007).
K-12 Education Budget: Focus on Teacher Quality Why Focus on Teacher Quality? Minnesota is facing a critical shortage of teachers. Almost one-half of the teaching profession in Minnesota is projected to retire over the next years.
K-12 Education Budget: Focus on Teacher Quality Three strategies to increasing the supply of highly effective teachers 1.Re-train the existing teaching workforce 2.Recruit best and brightest into teaching profession 3.Retain effective teachers
State Initiatives: Investing in Teacher Quality and School Leaders 1.Q Comp (compensation, teacher training and professional development, mentoring and teacher evaluations) 2.Math & Science Teacher Academies 3.Alternative Pathways to Certification (Teach for America, Teaching Fellows, Portfolio) 4.Teacher Induction / Mentoring 5.Principal Institute for Leadership (University of Minnesota)
Contact Information Chas Anderson Deputy Education Commissioner (work) Tom Melcher Director, Program Finance (work) Website: