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 1999-00 to 2004-05 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 = 1.115 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  1990 47% 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 = 1.115 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 S o 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 Source: Tom Gillaspy, MN state demographer

23. By 2020 65+ is Larger than K-12 By 2030 65+ Doubles Source: Tom Gillaspy, MN state demographer

24. 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 19808 th 19907 th 19955 th 20008 th 200519 th 200619 th

28. 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.

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 14 th 1992 25th 1997 21 st 2002 39th 2003 41st 2004 40th 2005 42nd 2006 41st

30. 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 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 www.parentsunited.orgwww.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.

33. 5/28/08Minnesota House of Representatives33 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

34. 5/28/08Minnesota House of Representatives34 General Education Components Current Law vs. HF 4178--addendum ComponentCurrent Law (in thousands) HF 4178 (in thousands) Revenue Increase (in thousands) Basic Revenue4,886,7856,153,3061,266,521 Extended Time Revenue55,63489,88634,232 Compensatory Revenue346,726661,046314,320 LEP Revenue40,30480,31640,012 T&E Revenue1,7670-1,7670 LEI Revenue0155,962 Operating Sparsity22,59633,01810,422 Transportation Sparsity60,96376,53815,575 Operating Capital194,812189,769-5,043 Equity94,9500-94,450 Referendum Offset Revenue0410,220 Gifted and Talented11,4450-11,445 Gifted and Talented Reserve0$61,533 Declining Enrollment Revenue073,450 Transition Revenue29,7450-29,745 Pension Adjustment-30,692030,692 Referendum Revenue724,239313,904-410,338 Q-Comp Revenue92,9790-92,979