Legislative Advisory Council

On behalf of our 30,000 students and 150,000 residents, the District 196 School Board and Legislative Advisory Council thank the Legislature and Governor for providing inflationary increases for E-12 education in 2019. Although this is not a budget-setting session, we believe that state leaders should continue to focus on long-term solutions to providing stable, predictable and equitable funding for all Minnesota schools.

The current funding system does not serve the needs of all students and is unfair to taxpayers in districts with lower property wealth, like District 196. The chronic underfunding of special education and unpredictable funding for general education have created instability, increased reliance on local operating levies and a widening gap in the educational opportunities available to students depending on where they live. We believe the Legislature should:

1. Provide stable, predictable and equitable education funding

• Index funding to inflation- The general education funding formula has lagged inflation by nearly 10 percent, or $639 per pupil, since 2003. Indexing the formula to inflation would provide a predictable funding source needed for stability and long-range planning.
• Reduce unfunded special education costs- The state and federal governments mandate special education services but fund just 65 percent of what it actually cost District 196 to provide those services last year. The other 35 percent, totaling $25.6 million, was subsidized by the district’s general fund.
• Increase equalization aid to enhance taxpayer equity- Equalization aid is meant to equalize the impact of school taxes for homeowners in districts with lower property wealth. However, the formula is not indexed to growth and, as a result, provides a diminishing level of equalization. Increasing equalization of the operating referendum, local optional and debt service levies would provide property tax relief for homeowners. It would not increase funding for schools.

2. Increase mental health support for students

Nearly 1 in 4 students who participated in the 2019 Minnesota Student Survey reported having some mental health, behavioral or emotional concerns. Increasing the Safe Schools levy and state aid would enable schools to add staff to address the mental health needs of students.

3. Reduce mandates and increase local control

Locally elected school board members and staff are in the best position to understand the needs of their district and how best to address those needs. We support legislative changes that would reduce mandates and increase local control, and oppose any new unfunded mandates.

2020 Legislative Priorities flyer

The state has majority responsibility to adequately fund public schools to ensure all Minnesota students have access to high-quality educational opportunities, regardless of race, economic status or where they live. But state lawmakers have failed to fulfill this Constitutional duty, putting at risk Minnesota’s future prosperity and ability to compete in the global economy. Increases for basic education averaged less than 1 percent per year in the first half of this decade and the unfunded portion of special education costs continues to grow. As a result, school districts across the state are in a revolving cycle of cutting staff and programs, then asking voters to increase local taxes to prevent further cuts. With the completion of each cycle, the level of service goes down while the needs of students continue to increase, and the opportunity gap grows wider for students in districts where local levies are unsuccessful. On behalf of our 29,000 students and 155,000 residents, the District 196  School Board and Legislative Advisory Council members believe the Legislature should establish stable funding solutions for Minnesota schools by taking the following actions during the 2019 budget-setting session:

Increase basic education funding by 4 percent per year

The general education formula allowance is the single biggest source of revenue Minnesota school districts receive. Since 2003, the difference between the actual and inflation-adjusted general education formula allowance has grown to $618 per pupil. If the formula had kept pace with inflation, District 196 would be receiving an additional
$19 million in state aid this year.

Increase special education funding to reduce unfunded costs

The state and federal governments mandate special education services but fund just 59 percent of what it actually cost District 196 to deliver those services last year. The other 41 percent in unfunded special education costs, known as the “cross-subsidy,” were paid for out of the district’s general fund. In fiscal year 2018, the special education cross-subsidy was $700 million statewide and $29 million in
District 196 alone.

Treat homeowners fairly by increasing equalization aid

State equalization aid helps balance the impact of school taxes for home-owners in school districts that have less commercial/industrial property wealth, like District 196, with those that have greater property wealth. However, the factors used to calculate equalization aid have not kept pace with the growth in property values over time and no longer provide the intended level of equalization or taxpayer fairness. With increasing reliance on local property taxes to adequately fund schools, state lawmakers should increase the equalizing factors for referendum, debt service and lease levies, and index them to keep pace with inflation.

2019 legislative priorities flyer 

On behalf of our more than 28,000 students and 150,000 residents, the District 196 School Board and Legislative Advisory Council members thank the Legislature and Governor for providing needed investment in E-12 education in the 2017 budget-setting session.

Funding approved through fiscal year 2019 make it five years in a row of 2 percent increases to the general education formula, the largest single source of revenue supporting student learning in our state. These consistent, at least inflationary increases are necessary to avoid the detrimental staffing and program cuts that resulted from state funding increases that averaged less than 1 percent per year in the first half of this decade.

Although 2018 is not a budget-setting session, we believe state leaders should continue discussion toward establishing stable funding solutions that support a “general and uniform system of public schools,” as required of the Legislature in Article 13, Section 1 of the Minnesota Constitution. We believe the Legislature should:

Index the general education formula to inflation

• $579 per pupil – This is the funding gap between the actual and inflation-adjusted general education formula allowance from 2003 to 2018. Fully fund this gap and index future general education formula increases to the annual rate of inflation.

Increase special education funding

• $27 million – This is the cross-subsidy gap between the funding District 196 will receive and the actual cost of providing mandated services for students with special needs this year. Statewide, the cross-subsidy will top $700 million.

Increase equalization aid to equalize the local tax burden

• $260 to $290 – This range represents the additional annual cost to the owner of a $250,000 home in District 196 for a $1,140 per pupil operating levy, compared to the owners of a $250,000 home in three high commercial property wealth districts in the west metro area.

Allow local control to renew existing operating levies

• 99 percent – This is the percentage of operating levies renewed by Minnesota voters since 2011 (180 of 182). Give locally elected School Board members authority to renew levies that were previously approved by local voters and do not represent a tax increase.

Stabilize the Teachers Retirement Association (TRA) Fund

• $279 million – This is District 196’s share of TRA’s $9 billion unfunded liability in fiscal year 2017. Stabilize the fund by adjusting benefits, increasing the employee and employer contributions, and fund the increase in the employer contribution.

2018 Legislative Priorities flyer