MREA updates
(pdf format)


Legislative Update


MREA Contact Information:
Dr. Fred Nolan ,
Executive Director

fred@e-f-services.com

Sam Walseth,
Director of Legislative Action

sam@capitolhillassoc.com

House Education Committees
K-12 Education Finance


K-12 Education Reform

Senate Education Committees
Education Committee

E-12 Education Budget and Policy Division

Governor Dayton's Seven-point Plan for Education Reform -- Better Schools for a Better Minnesota

1.30.12 Update -- Constitutional Amendments: Minnefornia? -- You need to have a conversation with the GOP legislator nearest you.
With a week under their belt, the GOP majorities are starting to look at adding constitutional amendment questions to November’s ballot. A question about the definition of marriage is already on the ballot, and now GOP leaders are considering which and how many to add to the ballot. Constitutional ballot questions do not require a signature by the Governor to be placed on the ballot. For the first time in at least 40 years, the GOP controls both bodies of the legislature and sees this as an opportunity to solidify aspects of their agenda into the constitution. Any given election could change the current dynamic, and this opportunity may not come around again for some time.

Beyond a policy agenda, campaign strategy is another consideration for political leaders. What are the advantages and disadvantages to constitutional ballot questions? A new legislative map comes out on February 21, and legislators will find themselves with new “turf” to learn. One line of thinking is that by dividing DFL campaign efforts between defeating ballot questions and electing new challengers, the GOP incumbents will gain an edge. Another line of thinking is that ballot questions draw out independent voters to the election which can lead to unpredictability, which incumbents don’t like. Certain ballot questions, such as “right to work”, could cause the largest union political mobilization efforts seen in a long time.

Senate Majority Leader Dave Senjem (GOP Rochester) recently said he believes that two ballot questions are all they should move forward with. In the same breath he mentioned the popularity of “voter ID.” Governor Dayton vetoed an election bill last session because it would have required voters to provide ID before voting. Legislators in both parties know from their own pollsters how popular voter ID is. The DFL may try to head this amendment off by finding compromise language that can go into statute instead of the constitution. GOP leaders say photo ID is needed to safeguard the election process. DFLers argue it will disenfranchise elderly and low income people who may not have a state issued ID. Local government officials complain about the costs associated with enforcing such a mandate.

Fighting for third place on the ballot and a potential #2 spot should voter ID work its way through the legislative process are two questions. Making Minnesota a “right to work” state whereby union membership is voluntary is a favored question by many conservatives and business groups. The politics are dicey though, and some don’t want to light a fire under rank and file union members. A second question would impact the legislature’s budget making process. One approach would be to require a super majority (60 or 67%) of legislators in both bodies to vote affirmatively on state tax increases (income and sales are the two largest). Another option for the budget question would say that the legislature can only spend up to 98% of available revenues in any given year.

There’s a lot to say and argue about on each of these amendments. However, from a rural school perspective, the questions pertaining to the budget process are the most concerning. Rural schools are highly reliant on state aid for basic support, and the legislature controls the rules over how schools can generate local property tax revenue (more on that fight later). Consider how frustrating and time consuming the referendum process has been over the last decade. This is largely due to the fact that state budgets have been running in the red. It’s extremely difficult to get a tax increase through the legislature under the current simple majority requirement. To break a special session budget deadlock in 2003, Governor Pawlenty acquiesced to a “health impact fee” on tobacco products. In 2007, six House GOP members joined the DFL majority and voted to override Pawlenty’s veto of a gas tax increase supported by business groups across the state. Only one of them remains to tell about it today. Senate DFLers had a veto proof majority of 45 that year (they have 30 members today – things can change fast). In 2008, voters approved the “Legacy Amendment” which raised the sales tax to support outdoor heritage and cultural legacy projects and programs.

It is extremely difficult to raise tax rates at the capitol. It is extremely difficult to add products, services and transactions into the current tax mix as well. If a super majority is required to pass a tax bill that has the net effect of raising revenue, then tax reform is almost certainly gone. The metro area, slated to gain new legislative turf under the new map, is more concerned with sales and income tax rates than property taxes. Metro property taxes are spread over a huge residential and commercial & industrial tax base. A budget amendment will harm MREA’s long term mission of creating equity in the education funding system. Districts will become more and more reliant on property taxes. Opportunities for rural students could be squeezed as rural communities fight over local taxes. Rural communities already struggle immensely with local tax base issues; publicly owned land, Seasonal & Recreational property, agriculture production land valuations and more elderly living on fixed incomes.

If your rural legislator is sensitive to the impacts felt this fall by the loss of the Homestead Market Value Credit, they have a 50/50 shot at the Capitol of doing something about it. Under any of these budget amendments they will have to secure the support of their metro-majority counterparts to do something about it. Talk to your legislator soon, and ask them not to put rural Minnesota’s economic future in such a political imbalance. If this amendment doesn’t move forward, it will be because rural GOP members band together and pressure their leadership to abandon this one.

Emerging Issues
Business groups and national reform organizations are pushing HF 1870 this session. The bill would change tenure for teachers in Minnesota. Supporters of the bill want to end what they call LIFO or “Last In First Out” practices whereby staffing decisions are based solely on seniority. HF 1870 is up Tuesday morning in the House Education Reform committee.

HF 1860 was heard last week and would send referendum dollars to students attending charter schools in their resident district. Expect more challenges to school district referendum authority to bubble up this year. HF 1858 is floating around and it would only allow districts to hold referendum elections during a general election (even numbered years). We expect this bill to be heard soon.

The legislature is sorting through these in the initial stages. While many of these bills are controversial, none have the power of a constitutional amendment, and all will require agreement of the House, Senate, and Governor to become law. Therefore, keep your eye on the constitutional amendments affecting budgets and taxes, and get close to the GOP legislators who represent you or are near you. They are the only votes that count in the constitutional amendment game.


Update 1.23.12 -- 2012 Legislature Open for Business
At noon on Tuesday, the 2012 legislative session will officially begin. Work is already under way in the House and Senate on reform measures the GOP is calling “Reform 2.0”. You can follow Reform 2.0 at www.reform2.mn. Included in this legislative package are some familiar and a few new proposals for K-12 education.

GOP leaders are calling for new governance of the Minneapolis and St. Paul school districts. Arguing that good things have happened in Boston, New York City and Washington D.C., they want to give the mayors RT Rybak and Chris Coleman authority to run their respective schools systems. The governance changes don’t stop there. They also want to give parents whose kids attend “failing schools” the ability to petition (not sure who – board? mayor? MDE?) to convert their school into a charter school. A similar change was made in Orange County, California, a few years back. Interestingly enough, the Orange County superintendent is now saying they will back off of chartering local buildings if the union agrees to local building authority and flexibility from the master bargaining agreement.

Earlier, in the fall, the Star Tribune and others reported on a broad based community movement in Minneapolis to force the school board to change the teacher’s contract to eliminate “last in, first out” policies. This is another marquee issue for the GOP this session and was pre-filed as a new bill for this year (HF 1870). Also in the mix is a proposal to have referendum dollars follow a resident student to a charter school within the boundaries of their resident district (HF 1860). In fact, HF 1860 is the first bill the House K-12 Finance committee will review this session and it’s on the agenda for Tuesday the 24th.

All told, the Reform 2.0 package is mostly targeted at Minneapolis and St. Paul. GOP leaders are frustrated over how much the two districts receive in per pupil aid and the lack of academic results. Therefore, reforming these two systems continues to be a major focus of their attention. Greater Minnesota schools face challenges as well and could be impacted by these proposed changes in law. Pay for performance is still on the Reform 2.0 list, but nothing specific was mentioned at the press conference. A statewide expansion of QComp was proposed by Governor Pawlenty in his last two years in office.

What was missing from the GOP reform 2.0 press conference was any mention of additional constitutional amendments for this fall’s ballot. A question about the definition of marriage is already on the ballot. Additional questions could be to make Minnesota a “right to work” state, which the unions strongly oppose, and another question that, if adopted, would require voters to present identification at the polls before being allowed to vote. Lastly, and of most concern from the perspective of school finance stability, is a question that, if adopted, would require a “super-majority” vote in both the House and Senate to pass any state tax increase. MREA will publish more information on this topic in a separate issues brief.

View a list of the education related bills that were pre-filed in the House (early January pre-filing is a House tradition).

2012 Session Calendar
The first two weeks of the session will start slowly, and the legislature is going on break Thursday, February 2nd through Tuesday, February 7th. They want to give themselves plenty of time to prepare for and work their precinct caucuses, which take place Tuesday the 7th at 7pm. This is a major election year for all involved, except the Governor, and they will be running on new legislative maps. The new map is scheduled for release on February 21. You can anticipate your legislator’s attention will drift at that point, unless they are planning on retiring. Several legislators have already announced their retirement after this session including longtime public education advocate Rep. Mindy Greiling.

When they return from precinct caucuses the session will go from a jog into a full blow sprint through March. Committee deadlines will come very quickly, and we can expect a flurry of education reforms to move their way through the process. Senate leaders have discussed trying to wrap up session by April 2. However, the House is planning on taking a long break at that point for Easter and then coming back on Monday, April 16th and working through April 30th. The bonding bill is the major piece of legislation they traditionally need to get done in the even numbered session. Governor Dayton is proposing $775 million in projects. GOP leaders are considering an amount much lower than that, in the range of $350-500 million. Regardless of when in April they adjourn, it doesn’t look like this session will drag on through May. The state constitution says they must be done by May 21st.

Concurrent Enrollment Draws High Praise
Secretary Arnie Duncan, Governor Mark Dayton and Commissioner Brenda Cassellius were at Irondale High School, in the Mounds View School District, on Friday, January 20, to celebrate Early College at Irondale HS. Early College is a concurrent enrollment program where students receive college credit from the Anoka Ramsey Community College while taking classes in high school. “This program is one of the state’s most comprehensive partnerships between a high school and our state colleges,” according to Dr. Steven Rosenstone, Chancellor of the Minnesota State Colleges and Universities. Early College provides students a two year AA degree when they graduate from High School, and it targets students in the upper 70% of the class to be more inclusive.

In front of an audience of about 400 educators and students, Early College was touted as Minnesota’s first concurrent enrollment program to provide an AA degree at High School graduation. Not quite the first, as I found out afterwards from Larry Lundblad, President of Central Lakes Community College and Kristil McDonald, principal of Clearbrook-Gonvick High School. 50 students in a variety of Central Minnesota High Schools graduated this spring with AA degrees from Central Lakes Community College. In fact, Larry shared the Central Lake’s model with Irondale as they were setting up Early College.

Greater Minnesota has known the value of our community and technical colleges for at least two generations, and concurrent enrollment has been in our high schools for at least twenty years now. We know that concurrent enrollment is cost-effective for schools and students, and gets students started on their post-secondary education early. We now have multiple models to take this to the next level with concurrent diplomas and AA degrees. Hooray for those who got efforts started, and encouragement to all schools to further develop their concurrent enrollment programs in High School.


Update 1/9/12 -- Imagine a 2013 legislative session where both parties are pledged to find additional revenue to repay the $2.1 Billion payment shift on a schedule. You can help that to come about by attending a precinct caucus. Set aside Tuesday evening, February 7, 2012, 7 pm, for Precinct Caucuses. This is where all politics in Minnesota begin: the precinct caucuses.

This is where caucus attendees:

Since “MREA is the collaboration of Greater Minnesota school boards, teachers and administrators which puts the education, growth and development of learners first,” each of you has a choice of whether to attend a precinct caucus.

For administrators, it is an easy choice to take a pass. You are responsible for implementing policy regardless of the political party in power, so take the night off. You can provide information to teachers and board members who are attending caucuses, which is a helpful role.

For teachers, it is an equally easy choice. You can attend the caucus of your choice. You are acting as an adult, not as a teacher; and in your role as a teacher you do not have the responsibility to direct other adults in the implementation of policy.

For school board members, it is a bit more complex of a decision. You are an elected official to a non-partisan office. You need to judge the politics of your locality. If partisan politics in your area is a low key affair and you can attend a caucus primarily as a concerned adult about education, then attend. If however, your locality is highly partisan, and your attendance would be seen as making your school board position a partisan position, then I would recommend you take a pass as administrators need to do. You can attend, but understand that others may attach a meaning to that. You know your locality and your relationship to your district the best.
So, if you’re comfortable with attendance, please find a way to a attend the precinct caucus of the political party with which you are in general agreement with its principles. Take the MREA platform with you. To keep it simple, be sure to introduce a resolution that urges the Minnesota Legislature and Governor to “Find additional state revenue and establish a schedule to repay the $2.1 billion loan and return to the 90/10 payment schedule.” (MREA 2012 Platform)

Who can attend a caucus?
Precinct caucuses are open to the public and participation is encouraged by the political parties. In order to vote, offer resolutions or become a delegate at a precinct caucus, attendees must be eligible to vote in the next general election, live in the precinct, and be in general agreement with the principles of the political party.

Links to the precinct caucus locators available for your home address will be the MREA Updates starting with January 23.


Update 12/19/11 -- What a rough week for the GOP… and a look at the 2012 session
Sen. Amy Koch resigned as Senate Majority Leader after being confronted by her colleagues about an inappropriate relationship she’s alleged to have had with a senate staffer. According to the Senate GOP’s operating rules they must elect a new leader within two weeks. Sources indicate they will meet a day or two before New Year’s to hold the election. Former Senate GOP minority leader Dave Senjem (Rochester) has publicly indicated an interest in the position. Sen. Koch played an instrumental role in getting the Senate GOP into the majority for the first time in 38 years. Her decision to resign and not run again leaves the Senate GOP without their key election champion as they head into a very contentious 2012 campaign season with all of their seats up for re-election.

In other news, House Speaker Kurt Zellers announced the schedule for the 2012 session which begins on Tuesday, January 24th. The legislature will take a break from Thursday, February 2 through Tuesday, February 7th so members can fully participate in their precinct caucuses (Tuesday the 7th). They will work through February and March and then take an extended break starting on Friday, April 5th (Good Friday) through Sunday, April 15th. They will adjourn “sine die” on April 30th which is about three weeks earlier than normal. They want members to get back to their newly drawn legislative districts (will be released on February 21) early this year to start work on what promises to be an arduous campaign season.

The 2012 session should run a little smoother this year since there won’t be a major budget fight given the state’s projected balanced budget through the remainder of the biennium. Instead, the battle will be over the scope and size of the bonding bill (GOP says $500 million, Dayton says $750 million) and a host of policy reforms and constitutional amendments. The GOP policy reforms will be their leverage against the Governor’s request for a larger bonding bill. As for the constitutional amendments, the Governor doesn’t have any authority as to whether or not they go on the ballot next November. The GOP majorities have to decide if and what they want on the ballot in addition to the question defining marriage. Other amendments could be 1) requiring photo ID to vote, 2) require a supermajority in the legislature to raise taxes and 3) an anti-union measure known as “right to work.”

MDE Task Forces and Greater MN Reps
The Legislature, Governor, and MDE all establish Task Forces and Working Groups on knotty issues. I expect this trend to continue in the current highly partisan, divided government. Task Forces are a way to influence policy, but only if advocates for your situation are present. Greater Minnesota has not been well represented on these in large part because it is a sacrifice to attend due to travel time and distance.
 
The Teacher Evaluation Task Force is the exception with eight of the 34 members coming from outside the seven county metropolitan area. Otherwise Greater Minnesota’s representation has been one or two of task forces numbering into the 20’s. Here are the 2011-12 Task Forces and their Greater Minnesota members. Thank you to all and especially those from MREA member districts.

MREA needs persons willing to represent Greater Minnesota on Task Forces and standing committees for agencies. If you are willing, please email Fred Nolan, Executive Director. He will alert you when openings come available. The turnaround time for appointments is usually too short to send out a general call for volunteers.

  1. NCLB waiver process:
    Fred Nolan MREA Exec Director; Jerry Reshetar, Superintendent Grand Meadow, Glenville-Evans
  2. Integration Task Force:
    Betty McAllister, Retired Middle School Principal, Worthington
  3. Principal Evaluation Task Force:
    David Krenz, Superintendent, Austin; Trish Perry, Principal, New London-Spicer Middle School; Charlie Plumadore, Secondary teacher, Milaca
  4. Teacher Evaluation Task Force:
    Beth Anderson, teacher, Esko; Gwen Anderson, teacher, Rocori; Shawn Andress, teacher, Park Rapids; Karrie Boser HS Principal, Pierz; Amy Galatz, Elem Principal, Deer River; Joe Hill, Sup, Sartell; Curt Rock, teacher, Foley;   Jodi Sapp, board member, Mankato;
    Brenda Vatthauer, Middle School Principal, Montevideo; Neil Witikko, teacher, Hermantown
  5. Tiered Licensure Task Force:
    Allen Hoffman, Sup, Comfrey
  6. Telecommunications Access:
    Matt Grosse, Deer River

Tiered Licensure Task Force meeting – 6 December 2011 – MDE: Thanks to Allen Hoffman of Comfrey Public Schools for providing this report for the MREA Update. (Click to read report)


12.5.11 Update -- Public Meetings to Discuss School Districts 2011 Budgets and Proposed 2012 Taxes
These used to be “Truth in Taxation Hearings” and held separately from your School Board Meeting.  They are now part of a regular school board meeting in December. 

In doing the research for the PowerPoint for these meetings, which I have sent to your superintendent, it is clear that property taxes are trending upwards state-wide for the following reasons:

They are not trending upwards because of the overall price of government as a percentage of personal income which has remained relatively constant over the past 10 years.  It has varied 8% up or down from a median of 15.6%.  This is down from the percentage in the mid 1990’s, but I have not found those numbers yet.  This is a statistic started by former Governor Arne Carlson, a Republican.

The change from a homestead credit to an exclusion has made property tax increases a volatile issue in Greater Minnesota.  Where municipalities, school districts and counties used to receive $’s from the state to make up the homestead credit, those dollars now come from other property classifications and higher valued homes.  The fact that raw Ag land is maintaining or increasing in value while homes are decreasing in value has accelerated this shift in tax burden.  I see this in my own property taxes on a parcel of raw Ag land in the Medford School District that has increased 6.2% in value and an 18.4% increase in total proposed property tax.  Most of that increase is at the county level. 

In general, I would suggest five themes or mantra’s to keep repeating during these hearings:

Understanding Recent Changes in Homestead Benefits
The web link is http://taxes.state.mn.us/property/Documents/hmve-taxpayers.pdf


11.28.11 Update - Positive Reponse to 2011 Conference
Ninety-six percent of the educators who attended the 2011 MREA Conference “will recommend to my friends/colleagues to attend this conference in 2012.” Specifically, this is what individuals who attended the conference at Cragun’s Resort had to say about the conference:

This content-rich, practitioner-led event takes full advantage of MREA's broad membership with presentations from teachers, administrators, board members, parents, consultants, researchers and students. Despite notable differences, MREA's fall forum is a smaller, more intimate version of the TIES annual conference, a "must do" event for education leaders, technologists, teachers and integrationists.
Paul Brinkman, Executive Director, Northeast Service Cooperative.

“Very relevant sessions for our district, met the needs of administrators, school board members and teachers that attended.”
Renae Tostenson, in-coming Superintendent, Lac qui Parle Valley School District

“Dynamic guest speakers and presenters.”
Michele Green, teacher, Bemidji Public Schools.

Whether you attended the conference or not, the speaker handouts and information are available on the MREA website.

Very Important - Your Feedback is Needed
If you did NOT attend the 2011 fall conference, you can help MREA have the premier rural education conference in 2012 by responding to this four question survey on what prevented you from attending the MREA conference 2011. Your feedback is critical to MREA creating a conference that will appeal to you. https://www.surveymonkey.com/s/X3CXMCC

Open Enrollment
You probably know the net open enrollment data for your districts, but have you ever wondered where your open enrollment students are coming from and where your resident district students are open enrolling to? A new Excel spreadsheet from House Research allows users to track student movement by district for the 2009-10 school year: http://www.house.leg.state.mn.us/hrd/issinfo/MovementByDistrict10.xlsx

The instructions are pretty easy and the results are of interest.

So What Does a Viking Stadium Have to do With the School Payment Shifts?
This may be one of the interesting questions in the upcoming 2012 legislative session. MREA’s platform calls for the state to, “Find additional state revenue and establish a schedule to repay the $2.1 billion loan and return to the 90/10 payment schedule.” Minnesota Senator Claire Robling and Representative Bob Gunther make the connection in their Op Ed piece “It’s Obvious: Fund Stadiums with Racinos” (Minneapolis Star Tribune, Nov. 21, 2011. A13). The fifth reason they advocate for racinos is, “with the remaining state revenue, we can repay our local school districts the money borrowed from them to balance the budget last July.”

Is this a good idea? Is there a better way to begin paying back the shift? I’m sure MREA will be asked if we have a position on this. These and other questions will come up now that the 2012 is around the corner. Expect an MREA update every other Monday between now and the beginning of the session, January 24, 2012, to keep you up-to-speed.

Instructional Improvement – Data Informed Instructional Decision Making
On September 13, the Regional Educational Laboratory Rural Working Group presented a 90-minute webinar to more than 200 participants across the country. Achievement Data and Instructional Decision Making in Rural Schools and Districts featured Ellen Mandinach, Ph.D., coauthor of the IES Practice Guide Using Student Achievement Data to Support Instructional Decision Making. Among the panelists who provided their personal experience with implementing the guide's recommendations was Gary DePatis, superintendent of Greenview Community Unit School District 200 in Illinois. REL Northeast & Islands hosted the webinar, which is archived on their website. EdWeek contributor Diette Courrege covered the webinar in her September 14 blog


11.10.11 Update -- Congratulations to MREA Districts’ Voters for Supporting Levy Requests
MREA Districts’ voters supported 84% of all questions asked of them on Tuesday regarding property taxes to support the education of their youth.  100% of the 20 renewals passed as well as 74% of the requests for increases in levy dollars per pupil (17 of 24).  As can be seen in the chart and table below, these passage rates are significantly higher than those of Non-MREA School Districts. 

State-wide, voters approved 75% of all questions in all Minnesota districts on Tuesday; 97% of renewal questions were approved and 57% of requests for increases in property taxes.  79% of school districts holding elections passed at least one referendum question.  This is a good indication that at the local level Minnesota voters are willing to tax themselves to educate the youth of their communities.


Unfortunately, only three increases approved were in districts previously without operating referendums:  Pelican Rapids, St. Charles and Waseca.  While those districts and their voters deserve huge congratulations, this leaves 35 school districts without an operating levy, or roughly 10% of Minnesota’s school districts.  This highlights the inequity of relying on local voter referendums to meet the state’s constitutional responsibility to provide a “general and uniform system of education.” 

This inequity is one reason that MREA supports “Funding Education for the Future,” a $700 referendum roll-in for all school districts and allowing local boards to under-levy if they don’t need the full $700 per pupil.  See the MREA 2012 Platform for this and other areas of advocacy which puts learners first.

But since this is the system we have, let’s share tips for getting voter approval of referendums.  If you have strategies that worked in your district including communications, the use of photos, testimonials, statistics such as the charts MREA provided comparing your district’s total revenue to inflation with and without voter approval of your referendum question(s), voter ID, get out the vote (GOTV), or whatever you feel helped your voters to support the levy request, please send them to MREA, and we will pass them along to members. 

Again, congratulations to districts who were successful in telling their story to their voters and having their voters support quality education in their community.

Summary Statistics of Tuesday, Nov 8th Operating Referendum Questions*


All Districts’ Questions

Pass Tot Number

Pass Percentage

Fail Tot Number

Fail
Percentage

All Questions

104

75%

35

25%

Renewals

59

97%

          2**

3%

Increases

45

57%

33

43%

MREA Districts’ Questions

 

 

 

 

All Questions

37

84%

7

16%

Renewals

20

100%

0

0%

Increases

17

74%

7

26%

Non-MREA Districts’ Questions

 

 

 

 

All Questions

67

71%

28

29%

Renewals

39

94%

2

6%

Increases

28

49%

26

51%

*MSBA is source for data on passage and failures of referendum questions.
**Rocori District is the only district who failed a renewal, but they had two renewal questions.

 


10.19.11 Update -- Congratulations to Minnesota’s Blue Ribbon Elementary Schools!  Six of eight honorees are Greater Minnesota Schools and four are in MREA Member Districts.  We send congratulations to:

Minnesota’s NCLB Waiver Application is on a fast track to be submitted to the USDOE by November 14.  While the waiver will allow the state to set “ambitious but achievable goals in reading/language arts and mathematics” rather than requiring 100% proficiency by 2014, this is not a “get out of jail free” card.  the waiver will require:

Since MDE thinks that we have college and career ready standards already and believes the recent legislation on teacher and principal evaluation meets that requirement, it has called together a working group to address the middle bullet—“targeting,” “supporting,” and “rewarding” schools.  Jerry Reshetar, Superintendent of Glenville Emmons and Grand Meadow School Districts, and I are serving on this working group.  We meet for four Fridays in a row ending November 4.

You can follow the progress of this working group on the MDE front page by clicking on Minnesota’s NCLB Waiver Request found in grey on the left hand side of the page under News Center.  There are FAQ’s and other information on that page.  Please email me with questions and thoughts after you’ve looked at the materials on the waiver request page, and I will try to bring them forward to the working group.

MDE has established an 18 member Task Force on Tiered Licensure. Alan Hoffman, Superintendent of Comfrey, is the only member not from the seven county metropolitan area.  In a previous life Alan was the Executive Director of the Board of Teaching, and previous to that served on the Board of Teaching, so this is familiar territory for Alan.  He will be an excellent and knowledgeable advocate for the needs of Greater Minnesota.
 
I sent him an email congratulating him on his appointment and noting he was the only non-metro member.  He replied in part, “I was telling my wife about this, noticing that I am the only one outside the 7 county metro region. You probably understand that dichotomy much better than I do in your position.” 

Yes, I do and why we need a strong MREA to advocate not just at the legislature but also in the various task forces and state committees that create rules and positions for MDE.  Thank you to all who serve, and I am always looking for members who want to serve.  Let me know because often I have a VERY short window to find a representative. 


10.12.11 Update -- Sixth Grade Math and the Need for Voter Approval of Local Referendums
Numbers can be slippery, and one should be very careful when the education of our Minnesota children is at stake. When I was a sixth grade teacher, two types of problems would trip up my students: rate and distance, and of course fractions, decimals and percents. As I travel around the state and read local press reports, it is clear that these same math problems are bedeviling some of our legislators as they attempt to explain the work they did for schools and school children in the last legislative session. And they did some good work; there is no doubt about that.

Let’s consider rate and distance. If you were to get on I-90 at 55 miles per hour in Fairmont, MN and head west, and increased your speed to 65 and drove for an hour, and then got impatient and increased your speed to 75 miles for an hour, how much faster are you going and how much farther along are you than if you kept the speed at 55? Most of my students would say you’re going 20 miles an hour faster. That’s the easy part, but many would miss that you are 30 miles further down the road. You went 10 miles further in the first hour, and 20 miles further in the second hour, because you were already going 10 miles further at 65. What math books never asked was, “Have we gotten there yet?” “Have we reached our destination?”

When explaining the increases in funding, some GOP legislators are getting the total distance traveled portion of the rate and distance problem right, and getting tripped up on the speed. When they compare the predicted funding for the 2011-12 school year (FY ’12) with 2010-2011 (FY ’11) and compare the 2012-13 school year (FY ’13) with 2010-11 (FY ’11), they have the correct numbers (if you include revenue for which some districts are eligible but don’t access, and include all voter approved referendums including those approved in 2010). They know the total distance traveled in terms of state funding of education. For example, as stated in the Fairmont Sentinel for Fairmont Area Schools those numbers are $121 per pupil and $276 per pupil.*

So, how much of an increase is that in educational funding? (How much faster are we going?) To continue to use Fairmont Area Schools as the example, the increase in FY ’12 of $121 is a modest 1.4% when compared to the total funding per pupil the previous year (FY ’11). And the increase in FY ’13 is $155 ($276-$121) or 1.8% over the previous year (FY ’12), because we are already going $121 per pupil faster. We are investing more in the education of our children, even when facing a budget deficit, but we are not going 85 miles an hour down I-90. We are going 3.2% faster. To put this in perspective, if we started on I-90 at 55, our top speed now is 57 miles per hour two hours later.

But rate and distance problems were a piece of cake for my sixth graders compared to fractions, decimals and percentages. One of the hard concepts for my students was that both the numerator (top number) and denominator (bottom number) matter when determining the value of a fraction, decimal or percentage.

3/6 = ½ or .5 or 50% and 3/4 = .75 or 75%. If you have three apples in both examples, it is the same number of apples, but if you have a family of six, you’re only going to get ½ an apple and if you are a family of four each person gets ¾ of an apple. Same number of apples, but it will make a big difference in how satisfied or hungry you will be after the snack.

So when some GOP legislators say, “Minnesota is spending more on K-12 education than it ever has and increased spending in this area by 9% over the next two years,”* how many apples is that, and how many are in the family?

True, state and local referendum support for all public schooling is predicted to be the highest it has ever been: $8,164,067,954 this school year (FY ’12) and $8,514,084,284 next school year, (FY ’13) or roughly $16.7 billion. For that we need to give credit to the GOP majority in the MN House and Senate and the DFL Governor Dayton. They agreed in the special session to these dollar amount for education. Let’s leave aside the fact that they are borrowing $2.7 billion from schools to pay for these entitlements and other state funding for another day. Let’s also leave aside the fact that roughly 3/5 of this spending is the extension of current law, not “new formulas” or increased formula amounts.

So percentage-wise how much of a total increase is that? Here is where the story gets slippery, and please don’t let your eyes glaze over and say, “Not more math homework?!” The total increase in predicted investment in education of the next two years (the biennium) is roughly $715 million. Compared to the total spending in the previous two school years (the FY ’10 and FY ’11 biennium) of $15.6 billion, this is a 4.5% increase in predicted spending. This is a good thing for the education of our children.

But if one chose to compare the two year spending increase to last school year’s total spending FY ’11 (one year), you get 8.9% which if rounded makes 9%. I am at a loss why someone would do this. The schools are getting the same number of new apples (no one is arguing that) and have to educate students for two years, not one year, so 4.5% is a more accurate increase statewide. All these numbers come from the MDE Look Up table which is found on the front page of MREA’s web site, www.mnrea.org. You can also find the table in program finance on the MDE web site.

But why do I keep saying “predicted spending?” Because when one examines this Look Up table closely, MDE is predicting state-wide a $108 Million increase in locally approved levy referendums in FY’13 based on the referendum elections being held this November. If you take voter approved referendums out of the equation, the state funded increase drops to 3.8% new total state investment over the biennium compared to the last one. Apples to apples, two years to two years, only state funds included: 57 miles per hour.

So, do locally approved referendums need to be renewed and extended in years and dollar amounts? This is asking the question, “Where are we on our journey to provide quality education for the children of Minnesota?” Consider this fact. In the 2003-04 school year, referendums accounted for 6.7% of total funding for education in the state of Minnesota, and next year (2012-13) they are expected to account for 11.5% of total investment. This means that schools are increasingly relying on voter approved local property taxes to make up what the state has not provided over the same time period. This is a 40% increase in the importance of local levies state-wide for the quality of education for Minnesota’s children.

To see how important the renewal of existing referendums is across Minnesota, see the chart** below to consider what will happen to the children of MREA member district BOLD if the voters do not renew the existing $700 per pupil referendum:



Yes, state spending has increased, and so has inflation—even at a faster rate. As a result, school districts state-wide are relying more and more on local voters to make up the difference. For example, MREA member district Wheaton has to ask their voters for a $547 increase in pupil to just barely beat inflation over the past five years as shown in the chart** below:



And that difference will matter to your community’s children. Each district’s situation is also different due to the complexity of the Minnesota funding formula. The superintendents of all member MREA districts that are asking for voter approval of referendums have received charts comparing their questions to inflation’s impact on their funding. You need to learn your district’s financial situation. You will make a difference, positively or negatively for your kids on Tuesday, Nov. 1st.

* Representative Bob Gunther, Senator Julie Rosen, Fairmont Sentinel, September 20, 2011
** Data Sources:  BOLD and Wheaton total revenue per pupil (blue) from MDE Program Finance.  Inflation (red): CPI average 2008-2011, CPI projection 2012-2013 from Minnesota Department of Management and Budget.  Chart prepared by MREA for member districts BOLD and Wheaton.


9.12.11 Update -- New Homestead Tax Exclusion will result in property tax increases.
I wish I had good news to report. I have been talking at area meetings held so far about the change from the Homestead Credit to an Exclusion, and I got to thinking, where are funds going to come from to replace the state funded credit?   So I emailed that question to Tim Strom of MN House research.  Here was his response:

The elimination of the Market Value Homestead Credit (MVHC) is going to be a big deal for school districts and other municipalities this fall as they set their levies for taxes payable in 2012 and try to explain why the rates are going up! 

Tim Strom, MN House Research in email to Fred Nolan, Exec Director MREA 9/1/11

The 2011 Special Session eliminated the market value homestead credit (MVHC) and replaced it with an exclusion.  Both the former credit and new exclusion apply to homes valued below $413,800.  Homes below $76,000 in value received the full credit (now exclusion), and a sliding scale reduces the credit to zero $413,800.  The difference between the credit and exclusion is who pays for this targeted property tax relief.

In the old market value homestead credit, the state sent a check to the counties to pay for the credit.  The revenue came from state income, sales and other tax revenues.  In the new exclusion, the burden will fall to other types of property within the taxing jurisdiction.  Therefore the rates will be higher on all property to make up for the absence of state supplied revenue.  Depending upon how counties used to account for this credit, and whether they seek “constant revenue,” in 2012, the increase in taxes for all classifications could be as high as 8.6%.
Tim Strom went on to write, “Steve Hinze of our office has prepared an excellent document that describes the conversion of the MVHC and includes some material about the effect of the change on local governments, which you may find helpful in trying to explain this to people:” http://www.house.leg.state.mn.us/hrd/issinfo/hmvexclusion.pdf

I suggest you read the report.  The main effect is simple:  state revenue is replaced with local property tax revenue on classifications other than homesteads.  This will affect all property taxes.  The examples work with Estimated Market Value (EMV) and Net Tax Capacity (NTC).  The effect on your district’s ANTC based taxes should be similar and adjusted by the sales ratio.  However working out the details on the effects for your district’s tax payers will take phone calls to the people working for your city and county who are tracking these changes. 
There is some good news for districts renewing operating referendums.  The 2011 bill specifically states that RMV is not affected by the exclusion.  So RMV is based on the property's value before the exclusion, and is not affected by the change.  Therefore the tax effect of a renewal will be affected by your enrollment changes, your district’s total RMV value, and specific property owners’ value, not the elimination of the Homestead Credit.

Thank you to Tim Strom and Steve Hinze for this excellent work.  If you have questions, please send them to fred@e-f-services.com and they will send them on.  That way the answers can be relayed to all MREA members. 

If you are going for a referendum renewal, I urge you to be really clear to your voters that “this vote to renew the referendum will not increase your taxes.”  Do not say that their taxes will remain the same.  Not only will this change from homestead credit to exclusion affect property taxes, but your county and city’s reaction to the reductions in LGA will also.  You know you need to retain your credibility as the sand shifts under your feet. 

For those who like the inside baseball politics, House Tax Chair Greg Davids and Gov Dayton have both blamed the other for this change.  See http://www.startribune.com/politics/statelocal/128641813.html to read the details. 


9.6.11 Update -- Special Session Funding Increases, How They are Being Spun, and Actions for You to Consider
To be sure, MREA wants to give credit where credit is due. The GOP majorities in the House and Senate along with DFL Governor Dayton truly held school funding harmless despite a $5 billion budget deficit. The legislature put $50/pupil on the formula to help schools with borrowing costs. The special education growth factor (increase of 4.6%) was in jeopardy, but we successfully fought to keep it in place.

Last, but certainly not least, is the addition of “small schools revenue” to the basic formula allowance. Districts with fewer than 1,000 AMCPUs will benefit and the optimal funding is for districts with 500 students who will receive about $130,000 starting in fiscal year 2013. The revenue is a forecasted part of the basic allowance so it will not be prorated, but it is subject to the 60/40 shift.

In the 60/40 shift, the state of Minnesota owes school districts $2.7 Billion (with a B). Schools are the bankers for the state of Minnesota to provide services in all regions and types of service. This “kicks the can” down the road as both parties have strongly held beliefs on tax policy.

Notwithstanding this, an issue has arisen in how these formula increases are described and what the implications are.

The $50 and the “Small Schools Revenue” are described in statute as $50 per AMCPU. AMCPU is the three year averaging of weighted students that smoothes out the effects of enrollment changes (whether declining or increasing) to assist districts, especially smaller ones, in budget planning.

However, MDE reports the increases in funding in ADM’s, the student numbers districts project for 2011-12 and 2012-13.

This will increase the reported revenue increases in several ways:

In addition to the ways the “look up table” from MDE appears to increase the funding to schools, the Republican Legislators are adding the following spin by using tables in which:

This look up table and the PDF’s can be found on the MREA website. The PDF’s are by district number. To get the details for your school district, ask your superintendent how to use the look up table or call me @ 320-333-8890. This new revenue and the added spin, means board members, administrators and teacher leaders should consider taking several actions:

Nothing is ever easy, but remember, this is a better outcome for schools and educating kids than we ever expected nine months ago. Use your funds wisely as you put learners first.


The Legislature and Governor Dayton finally reached a budget agreement that ended the nation’s longest state government shutdown. While it was frustrating to wait this long for budget and policy news the final E-12 budget bill has some great “wins” for rural schools.

For several years MREA has been pushing for mandate relief and this year we got it! Included in the new E-12 bill are permanent repeals of:

We tried for a permanent repeal of the 2% staff development set aside, and we were able to secure a two-year extension on the current moratorium. The new E-12 bill also allows a community with fewer than 6,000 residents (old law was 2,000) to use a principal or superintendent to serve as the community education director instead of having a license community education director serving in that position. The state will now allow schools to get fund transfers approved by the MDE instead of going through the legislative process if the fund transfer has no financial impact on the state.

School finance was held harmless in the process despite a $5 billion budget deficit. Many will criticize the 60/40 shift as “kicking the can down the road” and they’re right. The final budget deal does a lot of that, but at least the legislature put $50/pupil on the formula to help schools with borrowing costs. The special education growth factor (increase of 4.6%) was in jeopardy, but we successfully fought to keep it in place.

Last, but certainly not least is the addition of “small schools revenue” to the basic formula allowance. Districts with fewer than 1,000 AMCPUs will benefit and the optimal funding is for districts with 500 students who will receive about $130,000 starting in fiscal year 2013. The revenue is a forecasted part of the basic allowance so it will not be prorated, and it is subject to the 60/40 shift.

The new E-12 bill created future work for us as well. An integration funding task force will convene and make recommendations for re-purposing integration revenue. Integration revenue will sunset in its current form in two years under the new bill and a new plan needs to be put in its place.
Teacher and principal evaluations are now required and will have to meet some state guidelines. MREA fought this year to make sure local boards and bargaining units would be able to develop their own plans and the final bill allows this. A district and EA may develop a plan locally or they can opt into a plan developed by the MDE with stakeholders from public education and the business community.

Many assumed at the start of this session that mandate relief would be a “slam dunk” with newly elected republican majorities in the legislature. Not so. These were hard fought battles and interest groups from all corners of the state fought back. In the end our arguments, legislative strategy and a sustained grassroots effort got the job done!

Thanks to all who belong to MREA and made numerous legislative contacts – at home and at the Capitol – this session. To those in greater Minnesota who don’t belong to MREA – please join our ranks as we strive to build on our momentum from this session.


5.25.11 Update: Dayton vetoes GOP budget plan
Amidst protestors chanting “tax the rich”, the GOP legislature closed the 2011 regular session at midnight Monday. After a raucous week of protests over the marriage constitutional amendment, negotiations between the GOP majority and Governor Dayton fell flat. Both sides continue to claim they have compromised and it’s up to the other party to acquiesce to their position. The GOP will campaign for the next several weeks that their $34 billion spending level is sufficient and there’s no need for new revenue. Governor Dayton will explain what the local impact is of the GOP “all cuts” budget plan and make the case for new revenue. His particular choice for new revenue is taxing the wealthiest 2% of Minnesotans.

There is no clear sign about when Governor Dayton will call the legislature back into special session. Most speculate that he won’t call them in until he and the GOP leadership have a deal. The two sides remain far apart, with the GOP wanting to cut $3.6 billion and the Governor wanting $1.8 billion in revenue and $1.8 billion in cuts. A school shift of $1.4 billion is all but certain and could grow as the two parties stretch to close their differences on taxes and spending.

In his veto letter to the legislature, Dayton explained that he is concerned about the cuts to special education funding and the elimination of integration funding. He also expressed concern about the policy items contained in the bill, including vouchers, limits on collective bargaining, a school grading system, prohibitions on adopting the common core standards and a new teacher evaluation system. He described these proposals as punitive to teachers and lacking any research to support their efficacy.

HF 1381: Education Policy
At the last minute, the legislature produced an education policy bill and had enough time to pass it off the House and Senate floor. The bill will be presented to Governor Dayton in the next day or so, and speculation is that it, too, will face a veto. The bill contains a lot of mundane policy provisions and a few that are of interest to schools districts. The teacher’s union, in particular, expressed concerns about a few provisions, and the Department of Education didn’t seem very interested in this bill. Here’s a snap shot of what it contains: