Two weeks ago, Governor Tim Pawlenty unveiled his proposed state budget for the 2008-2009 biennium. Minnesota PTA, in its mission of advocacy for children and youth, monitors state legislative action as well policies and spending on programs which affect children. Our main focus is on the governor’s plans for programs having a direct impact on children, like k-12 education and health care. The governor’s proposed budget sets the stage from which the legislators work to pass a state budget which will allocate state revenues to different state programs. Below are a few highlights from the governor’s proposed budget and state of the state address, as well as some of our thoughts and concerns regarding the budget.

There are two different budgets the governor proposes, one is the general fund budget and the other is the budget from all sources. The general fund budget includes state sources of funding and related expenditures; and the total budget, includes money received by the state from the federal government, and is much bigger than the general fund. Most of the number we will refer to are general fund numbers, since that is where most of the public school funding comes from.

The governor has proposed a $34.4 billion budget for fiscal years 2008-2009, beginning July 1, 2007 and ending June 30, 2009. Out of that general fund budget, the governor has proposed a 7.7% increase over the 2006-2007 biennium, or a total of $13.745 million for K-12 education, or about 40% of the general fund budget. This includes a 2% increase, in each year of the biennium to the base per pupil funding formula. This means that, if the governor’s budget is approved by the legislature the base per pupil funding formula would go from $4,974 to $5,176 in fiscal 2009.

This may seem like a lot of money, but the base formula represents only part of the cost of educating a student. Other costs include extra funds for schools who have students living in poverty, recent immigrants just learning English, and of course special education students, to name a few of the other programs. To figure out whether or not the governor’s budget will be adequate to fund K-12 education, the proposed budgets for all of those students needing extra help need to be considered.

Special Education- The governor’s budget calls for a 2.0% annual increase in the special education appropriation. This is an area which needs substantial increases in funding due to the fact that in 2003 the inflationary or “growth” factor was capped. The percentage of Special education cost that the state is funding has continued to drop from what it has promised because of the elimination of the special education “growth” factor in 2003. Since special education costs must be paid somehow, (they are required by federal law) they have been “cross-subsidized” in recent years from the general fund, thus reducing money available for the rest of the K-12 educational programs. Currently that cross-subsidy is forecast at $518 million. In other words, if special education, were funded adequately, there would be more money in the general fund to fund all the other K-12 education programs.

Minnesota PTA has supported restoration of the special education growth factor since it was first dropped by the legislature. This year, Minnesota PTA is supporting the P.S. Minnesota initiative, which( among other things) calls for a revision in the way special education funding is calculated to more accurately reflect what the actual costs of special education are to a school district. The bill is supported by most K-12 education organizations and would help to rationally link education funding to educational expectations and standards.
It would also help to reduce the special education shortfall, thereby reducing the amount taken out of the general fund to fund special education. Watch for action alerts after the bill starts to move through committees. Here is one Minnesota PTA platform issue which we will need to parents to call and write their legislators.

High School Reform Initiatives
Some of Governor Pawlenty’s school funding for the next biennium is tied to ideas he has for high school reform. Below are some of the key components of his high school reform proposal:

3R High Schools
The three rs stand for rigor, relevance and results.
The governor has proposed $75 million for high schools willing to expand offerings for rigorous academic, career and technical classes. He has also proposed an additional $15.4 million for the expansion of Advanced Placement (AP) and International Baccalaureate (IB) classes. Minnesota PTA has always supported rigor as defined by an emphasis on critical thinking in standards and curricula. The IB and AP programs are excellent programs for qualified students.

This money is tied to schools “providing a broad range of college credit opportunities,” in high school and “requiring that every student complete a full year of college while in high school.” Minnesota PTA is concerned that this requirement is not in the best interests of all children in the school. Every child is not capable or wants to follow a college preparatory track. We urge parents to contact the Governor and their legislators to lower this requirement to a realistic standard. Public schools should serve the needs of all children, not just focus on the needs of college bound students.

Successful Schools-
This gubernatorial proposal would award a one time bonus of 2% per year in the biennium for schools that maintain at least a 3 star rating in reading or math on their Minnesota school report card. In other words, this initiative is closely linked to performance of the school on the MCA II tests. Governor Pawlenty is proposing $150 million to fund this program. Minnesota PTA is concerned that this will not put the funds in schools where they are most needed, schools where many students are recent immigrants who don’t have an adequate mastery of English, or schools where there is a high degree of poverty.

Early Childhood Education /Closing the Achievement Gap
Governor Pawlenty is proposing $28.9 millions for early childhood scholarships to be given directly to parents. This is part of Governor Pawlenty’s “World-Class Students” initiative aimed at closing the achievement gap between minority and white students in Minnesota’s schools. A maximum of $4,000 per “at-risk student” would be available to families whose income is under 180 percent of the federal poverty guideline. Parents could then choose to send their children to private or public pre-school programs. Minnesota PTA thinks that early childhood education is a good idea and is supported by research as one of the most effective investments in raising the educational bar for children. We particularly think that this is critical for at-risk children. Minnesota PTA supports this initiative. The governor is also proposing to improve existing early childhood programs in Head Start, and provide more funding for students needing assistance in reading, math or writing at any grade. Again, MN PTA supports these initiatives.

All Day K
The governor’s budget does not address all day kindergarten. There is no money in his budget to pay for all day kindergarten. Minnesota PTA supports removing the financial barriers for an all day kindergarten option for children. We support the state making the funds available to school districts so that parents choosing to send their children to all day Kindergarten will be able to do so.

The initiatives highlighted above summarize some of the key K-12 education ideas the governor has proposed for this legislative session, but is not an exhaustive list. Other initiatives are aimed at providing funding for teacher training, and technology improvements for schools. Minnesota PTA is supportive of efforts to provide ongoing teacher training and improve technology in our schools. Research shows that one of the most important aspects of student achievement is well trained and qualified teachers. The governor’s budget is a starting point for the development of the education bill and funding for this next biennium. Both the house and senate bring their priorities to the table also.