Print View
May 8, 2009

Update for May 4-8, 2009 — From Mary Cecconi, Executive Director

In This Issue
Important Dates
At the Capitol
What Can I Do?

The reason we need to speak up!
After his election 1932, FDR met with labor leaders who had worked with him for over
a decade and who arrived with plans they wanted the new President to implement.
Roosevelt told them: "I agree with you, I want to do it, now make me do it."

Important Dates

May 11, 2009
Invest in Minnesota Rally
Noon - 3:30 PM
State Capitol Rotunda

K-12 Education Forums with Senator Amy Klobuchar's staff
E. Grand Forks, Moorhead, Alexandria, Roseville

A complete listing of Events is always available at our website.

In this issue

 

What is Happening at the Capitol?
The legislators' self-imposed May 7 deadline for completion of all omnibus bills was not met. Majority Leader Tony Sertich explained that the Governor had been in Washington, D.C., working on flood relief, and his Finance Commissioner, Tom Hanson, asked for more time to negotiate an agreement between all three parties.

The rhetoric at the Capitol is heating up. With so few days to go until their adjournment date, nerves are frayed and positioning and posturing has become the order of the day. Meanwhile, a lot of really good folks are trying to get really important work done. The education conference committee continues its work, but they need to have their total spending target before completing the process. Here's the problem: the target needs to be agreed upon by all parties.

A VERY IMPORTANT point seems to be lost in the noise. All parties -- the House, the Senate and the Governor -- believe that we need to increase revenue to balance the state's budget! The debate used to center around having a spending problem NOT a revenue problem. Now the debate is whether to raise revenue on a one-time basis to balance the budget for 2012 or to raise it on an ongoing basis to balance the budget through 2013; but the fact that ALL believe we have a revenue problem is significant. For up-to-the-minute information about the state budget take a look at the Minnesota Budget Project.

This debate over revenue vs. spending is significant for education because although we understand the current economic times are challenging, we can't lose sight of the fact that Minnesota's significant revenue problem began before the recent economic collapse. When the state legislated the takeover of a greater percentage of school funding, they neglected to define a revenue source with which to pay for that action, creating a structural imbalance in the state's budget that will continually leave the state with a revenue problem.

This has meant years of cuts that have torn schools and communities apart. We have a patchwork quilt of districts that have had successful levy attempts and those who have not. According to Facts on State and Local Government Revenue and Property Taxes Since 2002, even those who were able to pass local levies have only been able to replace slightly less than half of all state aid cuts since 2002 (FY 2003).

Minnesota 2020 education fellow John Fitzgerald has prepared an article on the change in school operating levy, aid, and revenue from FY 2003 to FY 2010 (FY 2010 is based on current law). After adjusting for inflation, total statewide school district operating revenue is projected to be down $374 (3.8%) per pupil from FY 2003 to FY 2010, while state aid is down $1,296 per pupil. The article contains a link to a printout that I prepared with information for all 340 Minneesota school districts. John's article (and the link to the printout) can be found here.

In this issue

In the following table, I have tried to lay out the current proposals so that they make sense. I hate it when people say this is complicated, since I believe that people "get it" if it's explained correctly, but I have to say this is complicated and very FLUID. What I write today will change tonight! So tracking this is like trying to catch a fish with your hands (what a good analogy on the fishing opener!).

Revenue for the state budget School spending
Governor
  • Increases revenue one time by selling bonds,* to be repaid over the next 20 years, and taking funds from the Health Care Access fund.
  • Uses school payment shifts (needs to be repaid with future budgets).
  • Uses one-time federal stimulus funds.
  • Cuts state spending.
  • Balances the state budget through 2011.
  • Leaves a $2.6 billion state deficit in 2012.
  • Cuts school spending by $226 million.
  • Adds back $424 million in (one-time) federal money.
  • Total increase in school spending of $198 million.
  • Uses school funding increases for specific initiatives; funds selectively distributed.
Senate
  • Increases ongoing revenue through taxes.
  • Cuts state spending.
  • Uses one time federal stimulus funds.
  • Balances the state budget through 2014.
  • Cuts funding for schools by $972 million.
  • Adds back $519 million in (one-time) federal money.
  • Total decrease in school spending of $453 million.
  • Reduction of $273 per student in 2010 and an additional $272 per student in 2011.**
House
  • Increases ongoing revenue through taxes.
  • Cuts state spending.
  • Uses school payment shifts (need to be repaid with future budgets).
  • Uses one-time federal stimulus funds.
  • Balances state budget through 2012.
  • Leaves a $1.7 billion deficit in 2012.
  • Cuts schools funding by 268 million.
  • Adds back $275 million in (one-time) federal money.
  • School funding held flat at 2008 levels through 2010.
  • Uses same formula for dispensing money.

* There is a great deal of concern that these appropriation bonds will not sell in this market. which seriously calls into question the viability of this proposal.
**Since the distribution of these dollars is not tied to the per-student formula,
severity of cuts varies greatly by district.

In this issue

 

What Can I Do?
Looking for a way to make your voice heard? Now is the time to turn your attention to our legislative leadership. Send your emails, thoughts and concerns to the Governor, the Speaker of the House and the Majority Leader, and the minority leaders in both bodies. They need to hear from us!

And while the E-12 bill is still in the hands of the conference committee, they also need to hear from us:

From the House:

And from the Senate:

In this issue

Check out all the News and Hot Topics at our website!

"The more informed citizens we have speaking out for public schools,
the louder our voices become and the more likely we are to drive positive change.
Parents United helps bring these voices to the places where decisions are made."
                               — Christy Hlavacek, President, Parents United for Public Schools

We welcome your feedback on this update and our work. Please take a few minutes to let us know what's helpful to you.

Questions? Email Mary Cecconi

Parents United for Public Schools
1667 Snelling Avenue N., St. Paul, MN 55108
651-999-7391
www.parentsunited.org