Legislative Session 2010 Regular and Special Session I

Test your knowledge level from 2010 legislative session What is Minnesota’s budget deficit for the next biennium? What percentage of the pension stability bill was achieved through benefit cuts and asking current employees to contribute more of their salaries to pensions? The current general aid payment for FY 2009 was at 90/10. What are the numbers for FY 2010, FY 2011, and FY 2012? $5.8 billion 88 percent FY 2010 – 73/27; and FY 2011 – 70/30, FY /10

A few more questions? Education Minnesota recommends that alternate licensure contains 200 hours of student teaching and 12 weeks of student teaching. How much does the Department of Natural Resources use of the school trust land revenues to pay their costs? In 2009, costs to manage school trust lands amounted to 46.3% of revenue. True or False?

Summary of Session 2010 Got done Pension stabilization Shift Voluntary shared services - times two Booster seat fix Debt service levy forecast adjustment Vet’s preference fix August 20 th due date for referendums Didn’t happen K-12 bill Race to the Top Statewide health insurance mandate Board authority to renew levies Mandate relief Ice arenas Vikings

Schools provide the solution School funds were shifted to the tune of $1.9 billion out of a $2.9 billion cut. Districts are not paid interest on these shifted funds. If all school districts received interest, it would result in an additional $20 million per year. That could buy us 400 teachers.

Why can’t the state short-term borrow instead of withholding aid from public school districts?

Education bills: Bills 1 -5 “Make friends with everyone: legislators, Democrats, Republicans, staff members, people who come to advocate,” Speaker Kelliher said. “The second thing is to know the budget. If you know the budget, you can do just about anything for your constituents.” Education bills HF 2431 – Alternate licensure: Died in House Ways and Means. HF 3833 – Passed off House floor without alternate licensure and New Minnesota Miracle. SF 3028 – Education Policy went to Senate Rules Committee and never came out. HF 2072 – Home & Charter school – Levy authority for boards – 7 a.m. bill – Failed in Senate HF 2 – “Light education” passed the Senate and failed in the House.

End of the session gets hot

Special Session 2010 HF 1 End of Session agreement Shifted K-12 aid from 73/27 to 70/30 for FY11, creating a one-time savings of $200 million. Codifies shift. Begin 90/10 in FY12. M.S. 127A.46 was amended to read “the commissioner of M&B may choose to short- term borrow from school districts.” Changes threshold amounts to more accurately reflect inflationary factors since passage of M.S. 127A.46.

What did this change mean for school districts this year? MDE has notified school districts that state will begin withholding from districts beginning no sooner than Sept. 15, The 2010 legislature did raise the threshold from $350 to $700 ADM which will reduce the number of districts from which the state can withhold funds. 137 districts are projected to be impacted by withholding aid beginning in Sept

Educational Issues 2011 Funding Math graduation test Teach for America Teacher, principal and superintendent evaluations Charter school building authority Mandates, e.g. MOE Turnaround school models and requirements Common core standards RTTT and ESEA $ Tiered teacher licensure/tenure Minn-ovation? Collaborations

Math for the Next Budget Session The Problem: $5.7 billion ($7.5 billion) Do the Math Shift Aids to 50/50 would create $1.6 b - $4.1 b Racino - $250 m. - $3.85 b Cut all LGA - $550 m- -$3.3 b Sales tax on clothes- - $800 m -$2.5 b Tax the rich who make more the $250,000 - $400 million - $2.1 billion - $1 billion from Health and Human Service - $1 billion from K-12 aids or $1,000 per pupil Brings the deficit to - $100 million

Approach outsidetheox.com Here’s how the cities are approaching the funding cliff next session.