Search just this section

Home > Education Issues > Myth v. Reality > Alliance	Print View

April 2005 - Setting the Record Straight About Minnesota School Finances

It's hard to sort out fact from fiction. Use this information provided by the Alliance for Student Achievement to understand the reality behind the rhetoric. Download the pdf to take to your next parent-citizen group meeting.

Minnesota is the third highest taxed state in the nation.
Yes, and Minnesota ranks 24th in total state and local government revenue as a percentage of personal income. What's more, Minnesota local taxes per capita are 32nd highest (source: 2002 Census Bureau data).

Over the last biennium, the state has added over $1 billion to E-12 funding. State E-12 funding has increased by over 72% since 1998.
In reality, increases in state funding in recent years are largely due to the state takeover of general education. This represented a change in how we pay for public schools, but did not provide new dollars for education.

State funding for schools keeps going up and up every year. Governor Pawlenty has been generous to Minnesota schools.
Wrong. Since FY 2003, state aid to Minnesota school districts has fallen in real (inflation adjusted) dollars per pupil.

Even though state funding has declined in real (inflation adjusted) dollars, total school district revenue has increased due to massive increases in referendum levies.
Wrong again. While there have been large increases in referendum levies, these increases have not been sufficient to offset losses in state aid. Consequently, total school district revenues have declined in real dollars per pupil.

The Governor's proposed budget at least covers inflation.
What the Governor has proposed thus far will not keep pace with inflation. In other words, school revenue will continue to decline in real dollars per pupil.

During the 1990s, public school costs grew by more than 5% per year.
Growth in public school costs during the 1990s was due to (1) increasing enrollment and inflation, (2) one-time efforts to reduce class sizes, (3) increases in the number of special needs students, and (4) increases in the number of students learning English as a Second Language.

Some school districts—such as Minneapolis and Saint Paul—get dramatically more funding than other school districts.
Some school districts—such as Minneapolis and Saint Paul—have much higher costs because they serve more disadvantaged students.

Public schools should act more like businesses.
While public schools must strive to be efficient, the primary mission of public schools—to provide a quality education to all students—may not be consistent with a business model.

Public schools are unaccountable.
Minnesota school districts are providing above average outcomes at an average cost.

Minnesota has the largest achievement gap in the nation. Thus, putting more money into Minnesota schools is like throwing good money after bad.
The achievement gap in Minnesota has more to do with the high performance of Caucasian student than the low performance of minority students. Furthermore, Minnesota has not been “putting more money into schools.” In fact, we have been cutting key intervention strategies that support at-risk learners—spending that is particularly beneficial to minority students.

Private schools do a good job of educating kids for less money.
Public schools educate kids from all backgrounds.

State general fund expenditures have doubled over the last decade.
State general fund spending has come no where near doubling. In fact, after adjusting for inflation and population growth, Minnesota general fund spending has increased at an annual average rate of only 1.3% over the last ten years.

Minnesota public school per pupil spending is above the national average.
Minnesota public school per pupil spending is now slightly below the national average. Furthermore, Minnesota current spending as a percent of personal income is well below the national average.

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.

To summarize ...
At a time when the number of special education and non-English speaking students is growing and the cost of federal mandates is increasing, state aid for Minnesota public schools is declining in real dollars per pupil.