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The Governor’s proposed budget for FY 2006-07 is increasing aid for Minnesota public schools.

The increase in state aid for school districts is insufficient to keep pace with inflation. In real (i.e., inflation adjusted) dollars per pupil, state aid is declining by over three percent under the Governor’s budget.

In the Governor’s supplemental budget, state general fund aid to Minnesota school districts is growing by 2.9% from the FY 2004-05 biennium to the FY 2006-07 biennium (source: Governor’s supplemental budget summary document). However, inflation as measured by the implicit price deflator for state and local government purchases—which is the measure of inflation that should be used according to the Governor’s chief of staff—is growing by 6.4% over the same period. Thus, state aid to school districts is declining in real dollars.

The Governor has attempted to justify the miserly rate of growth in state support for public education by arguing that enrollment in Minnesota is declining. However, from FY 2004-05 to FY 2006-07, the statewide decline in enrollment is only 0.5%. Under the Governor’s budget, state general fund aid for school districts is declining by 2.8% in real dollars per pupil from FY 2004-05 to FY 2006-07 (source: Governor’s proposed budget summary document adjusted for inflation using the implicit price deflator for state and local government purchases).

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