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April 7, 2009 - Bill Check: Senate Education Finance and Policy Bill


Senate Majority Research
651-296-4949
April 7, 2009

S.F. 1328 Education Finance and Policy Provisions 2009 (Stumpf)

Summary: The Senate Education committee was given a budget cutting target of $972 million for the coming biennium (7 percent). Because of the American Recovery and Reinvestment Act, the committee will only need to cut about 3.2 percent, or approximately $452.8 million from the total education budget of $13.8 billion. Special education funding is not cut, and early childhood education Pre-kindergarten allowance programs will expand and the funding increased.

The cut will mean reductions of $273 per pupil in FY 2010 and $272 per pupil in 2011. The bill also contains various policy provisions, including charter school law changes, mandate reductions, testing amendments and a Quality Rating Improvement System for early childhood care and education programs. There are a few revenue set-aside programs that will free up some dollars for districts to use on education programs, if they choose.

The bill suspends a few school district mandates which will provide some flexibility for districts and allow them to put some additional dollars into classroom programs, if they choose.

The bill does not utilize a funding shift.

General Education

Funding: The Education Committee’s budget-cutting target was set at $972 million for the coming biennium (7 percent). Because of the American Recovery and Reinvestment Act, the committee cut about 3.2 percent, or approximately $452.8 million from the total education budget of $13.8 billion. The cut will mean reductions of $273 per pupil in FY 2010 and roughly $272 per pupil in 2011. The cut comes off the basic formula, not other categorical aids.

Consolidated Levy: The bill consolidates three levies (transition, equity and operating capital) to help streamline the process. It stabilizes tax rates and guards against fluctuations in property values. The Senate buys down property taxes through the new levy. ($20 million)

Length of School Year: The bill changes the length of the school year from days to hours: 425 for kindergarten students (2.5 days); 935 hours for grades 1-6 (5.5 hours); and 1,020 for grades 7-12 (six hours). Charter schools are included in this change. These hourly amounts total about 170 days. There is an additional provision that reduces state aid to districts that don’t meet the required number of school hours.

Referendum Petition Change: Language allowing voters to either invoke or revoke a school district referendum has been deleted.

Learning and Development Revenue Suspension: The Learning and Development Revenue aid is suspended for two years and can be used by districts for general education purposes.

Safe Schools Levy Suspension/Maintenance of Effort: The Safe Schools levy is suspended for two years, allowing districts to use the money for general education purposes. The bill also strikes language requiring that funds raised through the safe schools levy must be maintained at the levy spent the previous year.

Wind Energy Revenue: A portion of the money deducted from a school’s general education aid for funds generated through wind energy programs must be deposited in the Permanent School Fund Account.

Education Excellence

Report Reduction: The bill eliminates the requirement that a school board publish its “Annual Report on Curriculum, Instruction and Student Achievement” and instead requires a summary of the report in the newspaper. The public inspection document requirement is also repealed and the requirement that the report be sent to the commissioner is also repealed. The bill also eliminates the requirement that school boards publish relevant budget information and instead requires they publish budget summaries in their local newspapers. The Review and Comment publication requirement is waived, and the bill instead requires that a summary is published in the local newspaper.

Minnesota Virtual Education Academy: The bill establishes the Minnesota Virtual Education Academy. The initiative develops online teaching tools and student courses to be maintained by the Department of Education and used by teachers and public school students. The courses must be aligned to the state standards and the Commissioner must report to the legislature by 2011 on the progress and development of the program. ($1 million). (Governor’s Initiative)

Principal’s Leadership Institute: The Institute is established to provide executive level professional development training opportunities and leadership for school principals. The legislature made a one-time appropriation of $275,000 in 2008. ($800,000) (Governor’s Initiative)

Summer of Success: The Summer of Success program will provide focused, relevant remediation instruction for students during the summer between 8th and 9th grades. ($4.5 million) (Governor’s Initiative)

Staff Development Set Aside Suspension: For two years, the staff development revenue set aside requirements is suspended and the revenue can be used for general education purposes.

Statewide Testing: A number of requirement changes are made in the bill, but the major change grants a four-year window for students to gain proficiency on the mathematics GRAD test. (Funding allocations for testing are reduced by $16.3 million for the biennium.)

Major changes:

  • Requires that state assessment system be aligned to the standards;

  • Allows a four year alternative method by which a student can earn a state accreditation if the student does not pass the mathematics GRAD test. Sets forth the following criteria that allows a student to receive a state notation if the student does not pass the GRAD:
    » The student must complete and pass all coursework required by the state and district;
    » The student must participate in the remediation program; and
    » The student must participate in two retests.

  • Defines the state graduation test requirements for students enrolled in grade 8 in the 2010-2011 school year and later to be:

    » Reading: obtaining an achievement level equivalent to or greater than proficient on the MCAII in grade 10 for reading, or a passing score on the GRAD for reading; allows for alternative assessments for certain students.

    » Writing: obtaining a passing score on the GRAD for reading; allows for alternative assessments for certain students.

    » Mathematics: obtaining a passing score on the high school mathematics assessment; allows for alternative assessments for certain students.

  • Requires that high school level results be disseminated to the public within two weeks of statewide completion. Requires that individual test scores be reported to the student, parent or guardian, school, and district within two weeks of the student's completion on the test. Requires that the results of the high school mathematics assessment inform the student of college readiness;

  • Aligns the science testing requirements to the standards for high school coursework. Requires a district to place the student's assessment score on the student's high school transcript;

  • Requires the commissioner in consultation with stakeholders, to identify a high school mathematics assessment by February 15, 2010;

  • Requires the commissioner to determine a passing score that aligns with postsecondary entrance requirements;

  • Requires the commissioner to report the passing score to the legislature.

Reading/Literacy Instruction: This provision is designed to ensure effective reading strategies in Minnesota schools, includes the definitions of the five strands of reading, requires a person (teacher candidate) to successfully complete a reading instruction assessment to measure the knowledge skill and ability of pre-kindergarten and elementary licensure candidates in comprehensive, scientifically based reading instruction as defined in this bill before being granted a license. Higher education institutions are also required to prepare licensure candidates for the reading assessment. ($3 million)

Alternative Teacher Preparation Program: The bill creates an alternative teacher preparation program and temporary licensure process as a way to acquire a standard teaching license. As designed, a college or university with the Board of Teaching) approved alternative preparation program to offer this program in any instructional field. It requires that candidates participating to have a bachelor’s degree and a minimum GPA or 10 years relevant professional experience, pass a basic skills exam and obtain a qualifying score on board-approved content area and pedagogy tests.

Temporary School Closing: This provision amends current law and allows a school district that plans to either close or lease a school for education for fewer than three years only has to hold a public meeting on the change and allow for public comment.

Set the Price: The bill repeals the provision requiring superintendents to submit a report identifying how much it will cost the district to ensure that 80 percent of the 8th grade students pass the MCA-IIs, identify the highest passage rate the district expects to attain on the MCA-IIs by grade 12 and how much that will cost.

QComp Application Grants: Requires that unexpended QComp funding can be distributed via grants to school districts in greater Minnesota that are working to implement QComp programs.($8 Million)

Online Learning Changes: The bill extends the Online Advisory Council’s expiration date to June 30, 2013. The bill also tightens parameters for online learning providers, requiring they report student progress and credit accumulation to parents and school districts, requires that they assure the commissioner of education that the online courses meet state standards and that course curricula meet national standards.

Charter School Policy Changes: The bill makes changes in Minnesota’s charter school law; some of the changes follow recommendations by the Legislative Auditor and others were recommended by the department and various charter school groups after testimony given during hearings this past fall.

Under terms of the bill the Charter School Advisory Council shall give direction and suggest legislation to the MDE Commissioner and the legislature about new school planning, development and school start up. The bill also changes which charitable organizations may sponsor a charter school (excludes nonpublic sectarian or religious institutions). The organization must also have had an on-going fund balance of $2 million for at least four years. Sponsors must also participate in department-approved training.

A charter school Board of Directors is no longer required to have a majority of teachers on its board, but directors must attend training on board governance, employment policy and fiscal management.

A charter school can organize a non-profit building corporation only after eight years of operation and if it is not in statutory operating debt. A new charter school cannot open in a newly consolidated or dissolved school district for 36 months after the consolidation or dissolution, unless the school board of the district approves. A charter will also not be allowed to open within a one-mile radius of a public school that has closed for a period of 36 months. A sponsor could appeal to the commissioner of education for a waiver of this provision.

The bill also includes a whistle-blower requirement, prohibiting a charter school from discharging, disciplining, threatening or discriminating against or penalizing and employee because the employee spoke to officials about the school’s violations of law or school policy. The bill also prohibits a charter schools from distributing any services or goods of value to parents or students as an inducement to enrolling students. (Charter School Lease Aid increases are capped at 3 percent per year. Annual increases have been averaging about 11 percent per year. $8 million in savings for FY10-11.)

Special Programs

Special Education Funding: No changes to special education funding were made in Senate File 1328.

Special Education Services Modifications: The bill includes provisions that were designed by the Special Education Task Force. The Task Force included legislators, education stakeholders and representatives of the Department of Education.

Many of the modifications streamline Minnesota’s requirements and align them with federal guidelines. Language in the bill conforms exclusion and expulsion procedures for disabled students with federal law; requires schools to have an Individualized Education Plan (IEP) for every student with a disability; requires hearing officers to participate in training offered by the commissioner and aligns state law with federal requirements regarding hearing requests.

Facilities and Technology

Alternative Facilities Aid: Alternative Facilities Bonding Aid is eliminated for FY 2010 through 2012. Districts are allowed to levy to make up the difference. ($16 million cut)

Minimum Acreage: The bill allows districts the authority to determine minimum acreage needed to accommodate the school and related facilities and whether to renovate or build a new school.

Consultation and Review and Comment: The bill increases a school district’s project-cost threshold from $250,000 to $500,000 in requiring a consultation with the commissioner. For review and comment, the threshold is increased from $500,000 to $1.4 million, unless the district has an outstanding capital loan.

Information on bike trails, walk ways: A school board proposing to construct a new facility must include a description of how connections between school and residential areas can make it easier for students to get to school by walking, biking and taking transit.

State and School District Technology Guidelines: The bill requires the commissioner of education, the Minnesota Education Technology Task Force, and representatives of school districts to work together to identify robust technology tools for districts to enhance educational achievement for students. The guidelines established must be published every four years beginning December 1, 2009. Beginning December 1, 2010, districts must use the guidelines to complete a review of their own technology.

Nutrition, Libraries and Accounting

Library Maintenance of Effort: The bill allows cities and counties to restrict their library maintenance of effort if the city or county aid credits are reduced from the previous calendar year.

Elevator Levy: The bill allows the Lac Qui Parle Valley School District to levy up to $8,500 for a replacement elevator and the Richfield School District to levy up to $25,000 for elevator replacement.

Fund Transfers

Capital account transfers: This provision allows school districts to transfer up to $51 per student from its reserved operating capital account to its undesignated balance in the general fund, upon the adoption of a written resolution by the school board. This provision was also included in the 2008 budget bill.

Lac Qui Parle Valley: The Lac Qui Parle Valley School District may transfer up to $221,000 from its debt redemption fund to its reserved for operating capital account.

Mankato: The Mankato School District may transfer up to $250,000 from its debt redemption fund to its undesignated general fund balance.

Ortonville: The Ortonville School District may transfer up to $200,000 from its debt redemption fund to its reserved for operating capital account without making a levy reduction.

St. Anthony-New Brighton: The St. Anthony-New Brighton, to transfer up to $400,000 from its reserved for operating capital account to its undesignated general fund balance.

Early Childhood Education

Office of Early Learning: The Office of Early Learning is established. A director must be appointed, must report to the commissioners of Human Services and Education and coordinate staff efforts to oversee resources and public funding streams for early education and childcare, work with the departments listed above. The Minnesota Early Learning Foundation is established to create common standards for quality early childhood programming and oversee an effective data system to support an effective system of early childhood programs and create a seamless transition from early childhood programs to kindergarten.

Quality Rating and Improvement System: The Quality Rating and Improvement System is created to ensure that all children have access to quality early learning programs. If a program or provider chooses to participate in the QRIS, they will receive public funding associated with their rating.

Pre-Kindergarten Allowances: The current three pre-kindergarten pilot projects will continue under terms of the bill and funding allocated will expand in 2011 to include six projects in Otter Tail, Itasca and St. Louis counties and a consortium of Benton, Stearns and Sherburne counties. ($14 million)

Community education director exception: The bill increases the population threshold from 2,000 to 4,000 for communities eligible for an exception for the requirement to have a licensed community education director for local programming. The provision includes a licensed teacher eligible to serve in that capacity of the community meets the population threshold.

Youth service programs list repeal: The bill repeals the requirement that the commissioner maintain a list of acceptable youth service projects

Community education annual report repeal: The bill repeals the requirement that districts report the cost per participant and cost per contact hour in their annual report to the department and repeals the requirement that the department include this information in the community education annual report.

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