Voice of MN Education

MASA..."On the Road" w/Charlie: Kyte won't run!

The video above is about 6 minutes long and can be accessed either by clicking on the vide or going to the MASA website (www.mnasa.org) and clicking on MASA BLOG in the right hand panel..

 ‘TONGUE IN CHEEK’……. KYTE WILL NOT RUN FOR GOVERNOR:

 It seems as though everyone around the Capitol except Roger Aronson and I have announced they are running for governor.  I wanted to finally beat Roger, who represents the Principals associations and MSHSL, to the punch.  So I am declaring that I will not run for governor.  This now leaves only Roger who hasn’t declared…. Is there a chance he is planning to put his hat in the ring?

 UNALLOTMENT AND FEDERAL STIMULUS $’s:

 The school districts of Minnesota will be lending the State $1.8 Billion over the next 2 years without any clear indication about how, or if, it will be paid back.  Many of you will be doing ‘cash flow’ borrowing to cover the shortfall.  But it is hard to complain too much when we see the real cuts out friends in Higher Education as well as City and County businesses are going to take.

 We saw a report recently about how the federal stimulus money going to states is going to be used. 22 states are using the money to cover cuts in their own funding for K-12 education.  Minnesota is 7^th from the top of the list with a 5% cut being covered.  California leads with a 12% cut being covered with federal stimulus money.

 On the other end of the spectrum are the Dakota’s with 12-15% new money being pumped into their systems.  We will see a big problem in 2 years when the federal money drops to the wayside and Minnesota schools will see a big hole needing to be filled.  It doesn’t look very good at this point.

 MASA RETREAT EMPHASIZES CORE VALUES AND NEW INITIATIVES:

 MASA will continue to be a strong VOICE for public education and an ADVOCATE for the value of the public education system.  We will also continue to be a strong supporter of our MEMBERS.

 In addition look for new initiatives in the areas of promoting environmental awareness and education system innovation.  MASA will also evaluate the positions of each governor candidate and share these positions with members in a fair and non-partisan way.

 MSHSL HELPING TO CHECK RISING COSTS:

 Thanks to the hard work of Dave Stead, Executive Director of the MSHSL, the League recently took several controversial steps to help schools to control the costs of sports and activity programs.  These changes don’t come easily and we acknowledge the good work of MASA member Dave Stead in this regard.

MASA ... "On the Road" with Charlie Kyte - REALLY!

The 9 minute video below is of Charlie describing his latest and upcoming trips around the state.

REGIONAL MEETINGS:

Charlie loves to meet with MASA members all over the state.  This week begins several weeks of putting the miles as he visits with our members.  He will be leaving for Baudette, MN today for the Region 8 Retreat.  From there he will be taking a few days off to do some fishing in Minaki, Canada.  Next week Charlie will be in Chisholm for the Region 7 meeting.  At the end of next week he will be attending the MASA Board Retreat here in St. Paul.  All current and new board members of MASA will be attending.  Following the Board Retreat, Charlie will be participating in the annual Klobuchar Bike Ride.  When he returns from the bike ride, Charlie will be attending the Region 5 meeting in Staples.  Then at the end of July, Charlie will be joining Regions 3 & 4 for their combined retreat at Thumper Pond in Western MN.

THREE THINGS TO KNOW ABOUT:

The first of the three items is ... MN History Center presents MN's Greatest Generation - The Depression, The War & The Boom.  Charlie was able to tour the new exhibit at the MN History Center.  He found it to be very educational and a great experience for groups, families and school field trips.  Some highlights of the exhibit include: a 1930's Movie Theater, a 1940's soda fountain, and a C47 Fighter Plane.  One item of note is a family bible of Charlie's that his family donated.  This bible was carried by his father as he fought in WWII.  Thanks Charlie for a wonderful donation to a piece of MN's history!

The second item of interest is the 2009 MN Schools of Character & Promising Practices Award Ceremony.  This event was held on May 21st at the MN State Capitol Rotunda.  The 2009 MN Schools of Character were The Blake School and Schumann Elementary in Long Lake.  The 2009 Emerging MN Schools of Character were Waseca High School and SAGE Academy Charter School.  And the final group of honorees was the 2009 Promising Practice Awards.  This honor was bestowed upon the Avalon School in St. Paul, Chatfield Elementary Schools in Belle Plaine, Orono Middle School, The Blake School, Schumann Elementary in Long Lake and Waseca High School.  Congratulations to each one of you!

The third item for you to know of is the very moving and touching memorial service of Kathleen Macy, retired superintendent of the Stillwater Area Schools.  Charlie attending her memorial service on Friday May 22nd.  Charlie was very moved by the kind words of friends and family.  Several MASA members spoke of their former colleague and friend.  They included Carol Erickson, retired; Don Schuld of Stillwater; and Meria Carstarphen, St. Paul.  Kathleen will be dearly missed!

STATE FUNDING & INFORMATION:

MASA is currently waiting to see how Governor Pawlenty will unallot state funds.  We are keeping our fingers crossed that K-12 funds will be spared.

Tom Melcher of the MN Department of Education will be traveling the state to discuss changes for school districts coming out of the legislative session.  He is unable to explain the unallotment and shift.

MASA is working the MN Department of Education to plan the August "Back to School" Workshop for Superintendents.  This day-long workshop will be held on Wednesday, August 12th at the Northland Inn.  Watch your emails and the MASA website for registration information.  Housing is now open.  Please visit our website for that information.

FEDERAL CHANGES - BEYOND THE STIMULUS:

There will be dollars shifted to some new federal programs.  These programs include the Teacher Incentive Fund, School Improvement Fund, Striving Readers, and a High School Initiative.  Since the money is not new money but simply being shifted from other funds, watch for these funds to loose their funding: Safe and Drug Free Schools, Even Start Family Literacy, College Access Challenge Grants, Mentoring, Civic Education, Ready to Teach, Javits Gifted and Talented, National Institute for Literacy, Academies for American History and Civics, Close Up Fellowship, and Foundations for Learning.  Programs that will have their funding slashed include: Education Technology State Grants and the Abstinence Education Program.  More detailed information can be found on the US Department of Education's website.

On the Road with Charlie...Really!

MASA... "At the Capitol" w/Charlie: Last day of Session

The 7 minute video above describes what is in play on this last day and what to expect going forward.

IT IS LIKELY THAT THERE WILL NOT BE A SETTLEMENT:

As of noon today, a settlement still seems out of reach.  Howeveer it is not over until it is over!

ONLY ISSUE FOR K-12 TODAY:  SHIFT OR UNALLOTTMENT:

It is still possible that the Governor and the legislature would put the K-12 Aid and Tax revenue shifts into law.  If so, at least the rules would be clear and there would be a committment to begin reversing the shift when state revenues improve in the future.

If they go the way of un-allotment, the Governor will delay or suspend aid payments to schools.  It is unclear if he has any power to affect property tax revenues, but I don't think he does.  The amount of money schools receive would probably be about the same, but the cash flow may be less predictable and uneven.  The loss of predictability would come from not knowing when the delays would occur.  The unevenness will occur because Districts have differing mixes of local tax revenues and state aids.

NO FIX FOR THE TRA PENSION SYSTEM:

Some of the players held out too long to compromise on the TRA part of the Pension Bill.  Thus as of now it looks like Article 6 (TRA) will be removed from the final Bill.  The fund is moving into dangerous underfunded territory unless there is a near miraculous reversal ( to the positive side) for the stock market.

BE CAREFUL WITH LOCAL COMMENTS.... OTHER UNITS OF GOVERNMENT ARE BEING NEGATIVELY AFFECTED MORE THAN K-12:

Hopitals, Nursing homes, Counties, Cities and Higher Education are all facing significant reductions in their future.  While K-12 Education did not fare well either, our outcome at 0% and 0% with shifts is a better scenario.

Thus be careful in your comments so that you don't unintentionally rub salt in others wounds.

MASA... "At the Capitol" w/ Charlie: 5 days to adjournment

The 9 minute long video above provides a summary of where things stand right now at the Capitol and makes a guesses about the final outcome.  The legislature is scheduled to adjourn it's regular session next Tuesday.

MASA... "At the Capitol" w/ Charlie: Begin the End Game

This is a report to the members of the Minnesota Association of School Administrators (MASA) by Charlie Kyte, Executive Director.

The video and audio podcast above are each 7-8 minutes long.  Just click on either to view or hear.

IF WE USED A FOOTBALL ANALOGY, WE ARE STILL EARLY IN THE 4TH QUARTER:

We are entering the final 8 days of the regular legislative session.  There is much speculation about if the Governor and Legislature will be able to finish on time.  I am hopeful that partisan politics will subside a bit and we will see statesmen work to a compromise.  In football, we would say we are in the 4th quarter, but we are still in the early part of that quarter with much action still to come.

FATAL FLAW IN GOVERNORS POSITION:

The Governor's original budget gave better consideration to K-12 Education than we saw from the legislative bodies.  However he depended on about $1billion coming from issuing a bond that would be paid over many years with the proceeds of the tobacco lawsuit settlement money.  This is like taking out a long term home equity loan to pay for current expenses.  Fiscal conservatives would see this as a very poor solution.  The legislature really doesn't want to raise revenues in this manor and thus there is a $1 billion hole in the Governors solution.

BLENDING THE TAX AND EXPENDITURE BILLS INTO ONE BILL:

Late last week the legislature tried to find another way to produce the $1 billion referenced above.  To do so, they blended funding for K-12 Education, Hospitals and Nursing Homes with the Tax Bill.  The new revenue would have come from increased taxes on cigarettes and liquor as well as a higher income tax rate on people earning over $250,000 a year.  This blended Bill passed, but was promptly vetoed by the Governor

THERE NEEDS TO BE AGREEMENT ON SOME NEW REVENUE, OR THE OUTLOOK FOR SCHOOLS WILL BE VERY BAD:

Without at least $1 billion in new revenue, schools will see the funding set at significantly less than 0% and 0% for the next 2 years.  Without the revenue, the state budgets must be cut somewhere.  Health and Human Services and K-12 Education each make up 40% of the state budget.  Thus K-12 Education will take a big share of the hit without new revenue.  You can expect about 3% less in funding each year without a solution.

Let's hope the Governor and the Legislature can come up with some compromise that will allow $1 billion in revenue to be part of closing a budget gap of over $4.5 billion.

THE CASE FOR FUNDING EDUCATION:

Last week, I was led to believe that Health and Human Service (HHS) advocates were going to testify that there should be more cuts in K-12 Education in order to fund HHS.  This did not happen (yet), but I prepared a brief testimony as counterpoint.  Here is a synopsis of what I was going to say:

    ** It is a sad day when education leaders and HHS leaders have to argue publicly in an effort to get the money needed to survive.

    ** My job, however, is to make the case for education.

    ** Minnesota is in a nation wide and world wide economic contest.

    ** The winners will be those societies that best educate the next generations.

    ** Minnesota will not be among the winners if we don't invest in education.  And we must invest wisely.

    ** Look forward 10-15 years...... w/o investment in education society will not have the economic strength to support our needy, sick and frail citizens.

    ** Invest in K-12 education first and hold us to high and rigorous standards.

    ** Excellent education programs are very complex.  At 0% and 0% changes in education funding, we will destroy many of these programs.  

    ** It is crazy to even be considering 0% and 0%.  It will be a disaster if we actually make state level funding cuts!

    ** Kids only get one chance.  We need to get the funding of schools right.

OUTSTANDING EDUCATION POLICY ISSUES:

The K-12 Education Conference Committee is still exchanging proposals on several policy issues.  Special Education Rules, Testing, Charter Schools and other issues at still being negotiated.  In addition, the Pension Bill and the Statewide Health Insurance Bill are still slowly moving forward.  The biggest challenge for the Pension Bill is how to find employer funding of higher contributions in the future.  The need to restore fiscal health to TRA and to solve the problem of not having an appropriate retirement option for those hired after 1989 are both acknowledged.  The issue of how to pay is the key sticking point.

TYPE III LAW:

THe revised Type III law no longer requires special training, physicals and background checks for school employees unless they are specifically hired to drive the Type III vans.  Below is the actual language of this correcting legislation:

https://www.revisor.leg.state.mn.us/laws/?id=24&year=2009&type=0

MASA... "At the Capitol" w/Charlie: Final Days for K-12 Bill

This is a report to the members of the Minnesota Association of School Administrators (MASA) from Charlie Kyte, executive Director.

 

There is a video and an audio podcast above.  Each is about 8 minutes long.  Just click on either to view and listen.

CONFERENCE COMMITTEE WORKING THIS WEEK

The K-12 Conference Committee is supposed to finish their work on Thursday and get it moved onto the floors of the Senate and House.  Thus we will have very long sessions on Tuesday and Wednesday.

WAITING FOR THE TAX COMMITTEES, FUNDING IN BALANCE:

The Tax Bill needs to come together so that K-12 Education can get a uniform spending target from Senate and House leadership.  Thus even though the K-12 Bill needs to be finished on Thursday, the financial piece can’t come together until the spending target is identified.  This means that the funding decision will come together at the last moment.  A lot is in the balance:  the level of your funding as well as the size of the various shifts.

GOVERNOR WEIGHS IN:

The Governor sent a 6 page letter to the K-12 Education Conferees on Monday.  He berated them on the level of funding for K-12 and also demanded that a number of his new initiatives for education be included in the Bill.  Some we can agree with, but others are not well thought out.  He also identifies language in both the Senate and House Bills that he would support or oppose.  We suspect that the legislators will include some of his wishes, but certainly not all of them.

EDUCATION ISSUES IN OTHER BILLS:

K-12 education issues also appear in other Bills.  There is language in the Health and Human Services Bill that affects schools and there is also troublesome language in the Data Privacy-Public Data Bill.  The biggest other Bill is the Statewide Health Insurance Bill, which will probably end up on the Governors desk for his decision.

THE BIGGER POLICY ISSUES:

We mostly settled homeschooling issues on Monday.  Today (Tuesday) we are wrestling with ‘self governed’ schools, Charter Schools, Shared Services and Sp Ed rules.  Later we will be working on Early Education.

Of note is that the MN Chamber of Commerce sent in a letter supporting the Senate position on Shared Services.  Based on our analysis, the Senate position will make it difficult for many local businesses selling supplies to school districts.  Go figure!

These issues are important to settle now because once a final agreement on funding is reached, the whole Bill will be adopted into law.

PREDICTION OF HOW THIS MAY PLAY OUT:

We may see the Governor veto most of the Tax Bill and the big Omnibus Bills.  The session then concludes and the negotiations between the legislative leadership and the Governor continue.  This all drags on for a month or so.  Finally there is a one-day session once agreement is reached.   In the mean time, Districts won’t know the funding levels for 2009-10 or 2010-11.

H1N1 FLU:

The new guidance from MDH and MDE states that Districts can make their own decisions about closing schools in case of a flu outbreak as long as the sickness is no more severe than we have seen so far.  

I sent a communication to MDE that this decision is leaving the Districts hanging without much political cover.  We have asked that MDH and MDE issue a media advisory that they are comfortable with schools remaining open and the sick person isolated at home.

MASA... "At the Capitol" w/Charlie: Conference Committee

This is a message to the members of the Minnesota Association of School Administrators (MASA) from Charlie Kyte, Executive Director.

There is a 10 minute audio podcast above.  Just click to play.  We are sorry that we cannot provide a video this week.

 K-12 EDUCATION CONFERENCE COMMITTEE

 The K-12 Education Conference Committee met for the 1st time on Wednesday evening.  The committee includes Senators Stumpf, Wiger, Saltzman, Dahle and Gen Olson; and Representatives Greiling, Mariani, Ward, Slawik and Garafalo.  This committee will meet several times over the next week or so and will eventually come up with a single Bill.  Once passed by each legislative body, it goes to the Governor.  

We will watch to see if the Governor insists on several of his favored provisions get into the Bill or not.  He then will need to sign or veto the Bill.  All of this will be intertwined with the Tax Bill (see below) and all the other Bills.

There are many provisions in the House and Senate Education Bills, but most pale beside the bigger issue of funding.

THE NEXT ACT….. REVENUE DECISIONS

The key conference committee is the tax committee.  Both the House and the Senate are processing multiple omnibus bills.  They are all predicated on there being new revenues in the $1.5-2 billion range.  If the Tax Bill is passed and then vetoed by the Governor, everyone will have to go back to the drawing boards to peal another $1.5-2 billion out of the other bills.  K-12 Education and Health-Human Services each make up about 40% of the state budget.  Thus it is not hard to see that both will be effected if there is no additional revenue.

This will be the key argument of the session.  In the end will the Governor and the Legislature agree to meet part way between their respective positions, or will one party or the other win completely.  Based on how this comes out there will be an effect on the money schools receive.

FEDERAL STABILIZATION MONEY….. WE COUNSEL PATIENCE

Minnesota’s state plan for use of the federal stimulus state stabilization money was approved yesterday by USDOE.  The MDE is working to set up UFARS codes so that when this money, IDEA stimulus and Title 1 stimulus money finally flow to the Districts that you will be able to handle your financial reporting and data in as streamlined a manner as possible.

Once the legislature concludes it’s work, we are hoping that the MDE will hold several large meetings around the state with Superintendents, Business managers, Title 1 Directors, Special Education Directors and Curriculum leaders all invited.  It would be helpful for all the key administrators in each District to hear the directions and rules at once so that confusion can be minimized in each school district.

All this is going to take a bit of time.  Once the USDOE guidance information settles down, we will be better able to help districts know the ways in which these various types of funds can be utilized.  Also recognize that this first large amount of money is about 2/3 of the money available.  An additional 1/3 will become available a bit later for innovation grants.  Many Districts are already looking at how to show their inclination toward innovation so they will have a chance at this 2nd large amount of money.

H1N1 NOVEL FLU INFORMATION

This story is going to continue to develop over the next days and weeks.  Be sure your school district is in constant communication with your parents, staff and community.  Always refer to the guidance information posted on the MN Dep’t of Health and MDE websites.   MASA will continue to post info from these sites as links on the MASA website (www.mnasa.org).

An important role for school leaders is to be a calm and wise voice in your communities.  Do not be surprised to see several unique twists and turns as people tend to react erratically in times of crisis.  If you run into a situation you are unsure of, just give me a call at 651-247-6505 and we will try to provide advise or get you to the correct person to help you.

On Wednesday we had 2 conference calls with the superintendents of the schools located near Rocori.  If there are additional cases reported, we will do the same for Districts in the area.  If this issue becomes bigger or more serious, controlling panic will be part of your job.

MORE FREQUENT UPDATES

We will be providing more frequent updates over the next few weeks as the legislative session works toward an end.  Let’s all hope this is finished sooner rather than later.

MASA... "At the Capitol" w/ Charlie: Potential Disaster

This is a message to the members of the Minnesota Association of School Administrators (MASA) from Charlie Kyte, Executive Director.

 

The video and audio podcasts above are 10 and 7 minnutes long respectively.  Just click on the start button of either to view.

EASTER/ PASSOVER BREAK DID NOT HELP K-12 EDUCATION:

Here is what we are hearing from legislators who just returned to the Capitol after a week in their home districts:

What did legislators hear at home last week:  Save our nursing homes and hospitals.  Provide health care to children and needy adults.  Support public safety and veterans.  Keep tuition down.  Don't raise taxes.

What didn't they hear:  Save our schools!

ACTIVATE NOW OR PLAN TO LOSE BIG:

Educators and those who care about schools and the future of our children need to engage.  It is MASA members who are the top leaders in K-12 education that need to organize and lead the charge.  This effort has to come from the grassroots level. 

I have sent every MASA member a letter that should arrive on Friday.  It gives you several key 'talking points' and specifically lists your vulnerabilities.  It asks you to forget about the small issues and concentrate on the big problem.... funding!

LIKELY TAX SCENARIO:

The legislature will pass a Tax Bill that will increase revenues in the range of $1.5B sometime in the next 2 weeks.  It will be vetoed by the Governor.  There are not enough votes to override the veto.  The House is short 3 republicans to override plus several more democrats afraid to take an override vote.

This will result in the Bills of both the House and Senate being about $1.5B short of balancing budgets.  The orders will go out from leadership to make additional cuts.  K-12 will not only be cut more, we may take the brunt of the cuts as the other advocates have been strongly making their case at the capitol.

PROBABLE 'END GAME' WITHOUT YOUR INTERVENTION:

A major aid/ levy shift in the amount of about $2B.  This will cost on average $30/pu each year for lost interest earnings.  In addition this money will be eventually shifted back with the money coming from education funds.

A real cut in basic and catagorical aids.  It could easily be in the 5% range over multiple years.

A mandatory reduction in fund balances.  The way this would probably work, is that a District would be penalized with loss of state aids in the amount a fund balance is over some set amount as of June 30, 2009.  For those of you trying to cushion staff cuts by drawing down your fund balances, you will get a double wammy.... your draw down your balances plus an additional loss of funds via less state aid.

Much of this can be prevented only if you get really, really engaged right now.   Watch for the letter from MASA to active members that should receive on Friday.

WE CAN'T WIN AT THE CAPITOL WITHOUT GRASSROOTS SUPPORT:

Without an 'uprising', led by YOU, we are going to have a terrible solution for K-12 Education at the end of this session.  Lobbyists can only do so much.  We need calls and e-mails showing your (and others) outrage at what may well be happenning to us.

HOUSE BILL.... ONLY GOOD BY COMPARISON:

Wow.... only no increases for several years, a big aaid/tax shift and use of federal stimulus funds.  This only looks good in comparison to the Governors proposal that addresses the short term and ignors the long term problem, and the Senate Bill which looks long term, but canibalizes K-12 funding in the short term.

At least this Bill contains the future roll-in of the New Minnesota Miracle funding changes effective 2014.  We need these changes in the forecast for future years if we are ever to get substantial new funding.  The Bill does roll back some mandates and adds only a few new ones.

KEEP AN EYE ON THE PENSION BILL:

The Pension Bill includes a re-stabilizaton of the TRA Pension fund and also a solution for those hired after 1989.  Both cost money and would require higher employee and employer contributions beginning in 2 years.  We are trying to find a way for Districts to have levy authority to meet their higher contribution requirement.

Without this solution, the TRA fund will be in real trouble with the potential for future limits on pensions and little hop of fixing the post 1989 problem.

MASA... "At the Capitol" w/Charlie: Senate Bill depressing

This is a report to the members of the Minnesota Association of School Administrators (MASA) by Charlie Kyte, Executive Director.

 

The video and audio podcast are each about 8 minutes long.  Click on either to view.

THERE IS ANGST AND FRAYED TEMPERS ALL OVER THE STATE:

We are hearing from our members all across the state.  The process of making staff and program cuts while having so much uncertainty is really unsettling.  Many of you are also seeing the beginnings of the negotiations process as staff is increasingly nervous about salaries and the future.

Good luck as you work through the many difficult challenges ahead.

THE THREE K-12 EDUCATION FUNDING POSITIONS:

Governor:  Very slight increase in funding including some preservation of last years 1%-one time funding, expansion of Q-Comp and a 'pay for performance' provision.  This position also includes a significant shift in tax/aid recognition and the use of federal stimulus money.

House:  Proposing flat funding.  We have not yet seen the actual Bill.

Senate:  Proposing a 3+% decrease in funding and staying at that lower level in the 2nd year of the biennium.  Does not use tax/ aid recognition shifts. More below.

Each proposal needs to be looked at in its entirety including the other areas that government needs to support (public safety, higher ed, health & human services, etc) as well as tax policy.

THE SENATE BILL:

The Senate Bill may be the most responsible in terms of long term fiancial policy.  As an example, the Senate Bill does not make tax and aid recognition shifts to make money available earlier.  However it does not serve the short term needs of schools well at all. 

As I am writing this, the Senate Bill has not yet passed, but overall the Bill, after even backfilling with some Federal Stimulus money, will cut school funding by just over 3%.  The number we have seen so far is a cut of $273 per student.  This is over all funding.... basic and catagorical.  For Districts not receiving much catagorical aid, the cut is more like 5%.

On a positive side, the Senate Bill also waives the 2% professional development set aside and frees up the school safety levy for wider use of the funds.  The Senate Bill also repeals a number of mandates and addresses a number of problems with Charter School Sponsors.

NEXT STEPS IN THE PROCESS:

The legislators will wind up next Tuesday and go home for a week for to their home areas.  Over that week it is important that you are talking to them.  I hope your messages are both about supporting our schools and also about raising a reasonable amount of money to pay for a decent system of government.

Once the legislators come back after the spring break, the negotiations between the House, Senate and Governors Office will begin in earnest.  A final solution will likely be somewhere between the 3 positions.

PENSION BILL:

The Pension Bill contains a major reform for the TRA system.  The Bill cleared the Pension Commission earlier this week.  It will next be heard in Senate and House Committees next Monday and Tuesday.

The TRA changes include a new infusion of employee and employer contributions to help stabilize the fund which has lost huge dollars in the economic downturn of the last year.  Also included is a resolution for pension benefits for those employees beginning work after 1989.  This resolution is a modified form of Rule of 90 that will allow long serving TRA members to retire around age 59-60. 

The controversial part of this reform is that both employees and employers would begin making 1/2% increasd contributions to the fund beginning in 2 years.  The increases would be an additional 1/2% each year for 6 years.  Overall, these increases would total an additional 3% for both employers and employees.  These are the amounts necessary to bring the TRA fund back to stability and to resolve the problem for our post 1989 employees.

This brings us to the issue of how school districts will pay for their share of these increased costs.  We are hoping that the Bill would be amended to allow Districts to make a property tax levy to cover these increased costs.

MASA... "At the Capitol" w/Charlie: Winds of Change

A report to the members of the Minnesota Association of School Administrators (MASA) on the work of the Minnesota Legislature. By Charlie Kyte, Executive Director of MASA.

There are both a 10 minute audio podcast and a video for you to view above. 

THE WINDS OF CHANGE:

In the 1980’s Minnesota passed a number of laws to address the ‘Demand’ side of K-12 Education.  Included were laws allowing PSEO, Open Enrollment and Homeschooling.  In the 1990’s Minnesota began passing laws to address the ‘Supply’ side of the equation.  The biggest change was the passage of the Charter School law.

Now at the end of this first decade of the 21st Century, the winds of change are again blowing.  There is widespread interest on the part of citizens to have more options provided for students and also to have schools be more focused on results.  Once public opinion begins to shift, elected officials begin to react.  

It is tempting to see new laws as flawed and thus be resisted by those within the existing systems.  In K-12 Education, we will soon see new governance models emerging such as ‘site based’ contracting, changed delivery systems such as on-line learning and financial reward systems based on student success.  We at MASA will work to have emerging legislation work as well as possible.  But make no mistake about it, the winds of change are blowing!

THREE BUDGET POSITIONS…… NOW THE JOCKEYING WILL BEGIN:

I begin this section by reminding us all that the budget shortfall in Minnesota is huge…. About $7 billion.  All of the efforts at the Capitol are to minimize cutbacks rather than adding any new funding anywhere.  

Executive Branch position:  Keep funding level for Higher Education, Public Safety, Veterans and the National Guard.  Provide small increases in revenue for K-12 Education.  Repeal/ roll back taxes on businesses as a way to possibly stimulate job growth.  Use a number of shifts etc to bridge the budget gap.

Senate Position:  Raise new revenues and make cuts across the board of about 7%.  Create a 4 year balanced budget without too many accounting machinations.

House position:  Keep funding level for K-12 and Higher Education, minimize cuts elsewhere and raise new revenues.

Summary:  The analysis above is a very brief overview of the 3 positions.  In reality each is considerably more complex.  In each case, some amount of the Federal Stimulus money is used in one way or the other to help close the budget gap.

We will now see several weeks of the 3 bodies maneuvering with each other.  After the Easter break, legislators will come back to begin to bring the positions together

WATCH THE TAX COMMITTEES:

Both the House and the Senate are proposing tax increases.  Even the Governor is calling for revisions to the tax code.  Thus much of the action in the next several weeks will be in the Tax Committees.  Although any tax increases coming through the legislature will most likely be vetoed by the Governor, in the end of the session some additional revenue may be a part of the solution to the budget shortfall.

MASA has indicated from the very beginning that we would support reasonable revenue increases if necessary to fund critical functions of state government.

OTHER BILLS:

Nearly 2000 Bills have been introduced already this session.  A good portion of these Bills pertain to education.  However most will not progress through the legislative process (thank goodness!).

Bills making progress:

The 11th Grade GRAD Testing Bill, the Type III School Bus Bill, the Mandate Repeal Bill and a Bill to tighten up Charter School Sponsor rules are all making slow, but steady progress through both of the legislative bodies.

Emerging Bills:

Senator Stumpf is interested in creating a study group over the interim to look at a number of possible school governance models.  He is especially interested in helping rural schools find some workable alternatives.  There is another Bill that would encourage Districts to create contracted school sites staffed by an independent group of the Districts teachers.  This Bill has merit and could be a model to use in mid size to larger Districts.  It had a good initial Hearing in the House.

Bills that are stalled (temporarily?)

The Shared Services Bill as proposed in the Senate has been defeated on the Senate floor.  It could still be brought back with some changes to it.  A different approach is moving forward in the House.  The House Bill is more of an enabling Bill that helps Districts to find and use shared service opportunities.  We expect it to pass out of the House.

Even though there was great concern about the Senate version of this Bill, it is important for us all to recognize that we need to push the boundaries on sharing services, especially in these difficult times.

The ‘School Start prior to Labor Day’ Bill is limping along.  It is difficult to tell if it will survive the challenges ahead of it.

MASA... "At the Capitol" w/Charlie: Tough week for K-12 Ed

This is a message to the members of the Minnesota Association of School Administrators (MASA) from Charlie Kyte, Executive Director.

The attached audio podcast and the video clip are each about 10 minutes long. They add detail to the message below.

TOUGH WEEK! WITH VERY LITTLE TRUE SUPPORT FOR THE TRADITIONAL K-12 EDUCATION MODEL:

The K-12 education lobby is feeling pretty beat up this week. We lost ground on many of the Bills that were heard. We see a negative mood on the part of many legislators toward public education.

THERE IS NO WAY OUT OF THE BUDGET SHORTFALL WITHOUT BOTH A TAX INCREASE AND MAJOR CUTBACKS. YOU NEED TO BROADCAST THESE MESSAGES IN YOUR COMMUNITIES:

The budget deficit is so big, and so potentially prolonged, that it will require major tax increases, major cutbacks/concessions and major accounting shifts to get it resolved. We will share more on this topic next week and there is more detail on the video and audio podcast.

SPECIFIC BILLS:

Labor day:

The prospect of being allowed to begin school prior to labor day is dimming. We still hope to have it in the omnibus education Bill, but that won't be passed until very late this spring.

Shared Services:

Schools are doing a lot in the areas of cooperative purchasing and in sharing services. The current Bill now moving through the legislature (in its present form) is not helpful and rather creates a bureaucratic mess. We hope that the key legislators will be willing to find a way to make this Bill be helpful rather than hurtful.

Charter School governance:

The House has rejected any language to creat a moratorium on the creation of Charter Schools where school buildings are being closed. There needs to be some balance between the creation of Charter Schools and the downsizing of schools because of declining enrollments.

Math 11 GRAD Tests:

The change from high stakes testing to middle level stakes passed the House Policy Committee. This change which still requires multiple test tries and remediation, does not prohibit a student from graduating if they don't pass this one specific test. This is in line with the national Achieve organization that sees Minnesota a state leader in raising academic expectations.

 It baffles me that the MN Chamber of Commerce insists that the math test become high stakes when not one single one of the world leading countries in education (Finland, Great Britian, Singapore, etc) use high stake graduation tests. They fail to recognize the eventual political kickback that will be set off if 3500-5000 students are denied graduation in 15 months from now. And those kids won't just be poor kids. Some will be the children of the members of the local members of the Chambers of Commerce.

Mandates:

Most mandates being discussed for repeal are relatively minor. In most cases it is a variety of education constituencies that don't want their specific area hurt. We appreciate the work being done on this by several key legislators, but we are seeing more new mandates coming forward than the ones being considered for repeal.

Type III Bus rules:

The 'fix' to the Type III problem is moving forward. We hope to have this resolved well prior to the end of the legislative session.

PENSION SYSTEMS IN BIG TROUBLE:

The pension systems have lost a huge amount of money. There is a Bill coming up to require some additional contributions from both employees and employers. This Bill also resolves the problem of properly recognizing the needs of our post 1989 hires. MASA supports this effort and will also try to get Districts the levy authority to raise the money necessary for the employers contribution increaases. The Bill raises contributions beginning in FY 2012. Wisconsin is reducing their pension payments by over 2%. If the market swoon continues don't be surprised to see similar talk in Minnesota.

WE NEED YOU IN CONTACT WITH YOUR LEGISLATORS:

We will totally lose the battles at the legislature without your involvement. You need to be in close and continuous contact with your legislators. The future of our children and the State are at stake.

MASA... "At the Capitol" w/ Charlie.... Fed Stimulus Info

This is a report to the members of the Minnesota Association of School Administrators (MASA) from Charlie Kyte, Executive Director.

Above are links to a 8 1/2 minute video and an audio podcast of this report.

FEDERAL STIMULUS:

Stay positive. The rules and process are still unclear, but in the end schools will receive significant money from the federal stimulus effort. One major area to sort out is the interplay between the federal stimulus money and the states budget shortfall.

We will see the biennial budget forecast on March 3. The question is how much of the federal money will replace cuts in the state budget for schools. To this end, we have top representatives of the MDE and from the Governors office coming to the second morning of the MASA/MASE Spring Conference on March 20th for a frank discussion of what may happen. Be sure to sign up to attend this important conference.

GOVERNORS BUDGET:

We now have the Governors Education Bill which shows each of the things the Governor proposed in his State of the State speech last month. We are analyzing the Bill now and will testify on it this Thursday.

The Bill does call for an expansion of Alternative (Q) Compensation to every school district and some new money that is tied to the percentage of students showing academic growth in each school district (1% for normal expected growth and 2% for exceptional growth). The budget also calls for significant tax/ aid recognition shifting.

It would be easy to say that this is a stingy budget. But given the times and the cuts proposed to higher education (about 8.2%), the K-12 proposal looks pretty good by comparison. It also means that money will be very tight over the next biennium unless new state revenues can be added to the mix.

CHARLIE WILL MAKE A PREDICTION ABOUT THE LEVEL OF SCHOOL FUNDING ON MARCH 16:

What assumptions should school districts make in their budgets for next year?  Although much will not yet be known, I will make my best prediction on March 16th. I will base the prediction on our understanding of the dynamics at the Capitol and the impact of the federal stimulus effort. We know that school district leaders are going to need to move ahead with budget planning and possible staff cutbacks soon. Our prediction will hopefully help you to decide how to proceed.

REPORT FROM VALERIE DOSLAND:

Valerie lobbies for MASA and several other education groups. She is known as an excellent lobbyist and MASA is glad to have her services. In the attached video Valerie comments on the status of several initiatives and Bills including:

    The Mandate repeal effort
    Type III Busing regulations
    Pre-Labor day Start Bills
    The referendum reversal petitions Bill

OTHER POLICY LEGISLATION:

Charter School reform Bills are being heard in the House this week. While these Bills do tighten up the Charter School laws, they don't address the need for a moratorium on the creation of a Charter School where a school closing is proposed. Nor do the Bills go far enough to eliminate conflicts of interest between sponsors and schools especially where religious institutions are involved.

The 11th Grade Math GRAD Rule issue is moving slowly. There is generally agreement that the test should not be a sole determinate of graduation. However there is an interest by the MDE to come to an agreement on the next generation of testing as part of the Math GRAD Rule change. We continue to push to have this Bill move forward.

ONCE AGAIN..... SIGN UP FOR THE SPRING CONFERENCE:

Well over 100 of you are already registered. Not only does the conference provide excellent professional development, but the networking of colleagues is very important in tough times. In addition you will receive an excellent analysis of how the federal stimulus and the state budget may fit together.

MASA... "On the Road" w/Charlie: Podcasting tips

This is a short audio podcast with tips on podcasting. By: Charlie Kyte, Executive Director, MASA

This is a 2 1/2 minute long audio podcast that provides several tips on how to create an interesting podcast.

COMING TO YOU DIRECTLY FROM THE AASA NATIONAL CONFERENCE ON EDUCATION:

This podcast was recorded live in front of about 60 AASA members at a session on communication at the National Conference on Education which is being held in San Francisco.

WORK OFF OF NOTES RATHER THAN A SCRIPT:

If you use a script or prepared statement that you read, more than likely the message will be boring. Rather present like a radio or TV reporter with brief notes and a conversational tone.

KEEP THE MESSAGE SHORT:

The best podcast are short. Try to stay under 5-6 minutes if possible.

TELL A STORY: Make the message into a story. Tell the audience where you are, who you are interacting with and use examples to make the message a compelling story.

REPEAT THE CORE MESSAGES 3 TIMES:

Headline the podcast with the 'core' subject areas to cover. Then tell the story. Then quickly summarize what you just said.

PROMPT YOUR INTENDED AUDIENCE WITH AN E-MAIL:

Your audience needs to know about your message. Thus sending out a short e-mail to the intended audience helps them to seek out your new message.

MASA..."At the Capitol" w/Charlie: Going slow!

This is a report to the members of the MN Association of School Administrators (MASA) from Charlie Kyte, Executive Director.

Above is a 5 minute audio podcast and a 4 minute video that provides another medium to view the information below.

LEGISLATIVE PROCESS MOVING SLOWLY. MUCH UNCERTAINTY ABOUT THE BUDGET

Until legislative leaders are able to see the ramifications of the Federal Stimulus package and the February State Budget Forecast, it is hard for them to begin to put together a plan to set the budget for the next biennium. Once the process begins to move, it is going to be ugly both from a monetary and from a political standpoint.

We don't think Districts should count on any (net) new money for the next 2 years.

KEY DATES:

Governor's Budget................. About February 15
Federal Stimulus approved......... About February 18
New state budget forecast......... About March 1

POLICY ISSUES:

Mandate Repeal Process:

MASA, along with several other associations identified about 100 mandates that we felt could be repealed. We did this in response to pleas from legislators who asked us to show them how they could help school districts have more flexibility to operate. It comes as no surprise that the response from legislators has been timid at best.

So far only a few of the less objectionable mandates are finding there way into Bills. Legislators don't want to upset any of their perceived friends and will rather opt to leave school districts 'hamstrung' under the whole pile of mandates. Once we see the size of the budget deficit in 3 weeks, maybe there attitude will change a bit.

11th Grade Math GRAD Tests:

There seems to be general agreement on a short term solution that would change the requirement away from denying a student from graduating if they don't pass the 11th grade math test. The Bills to fix this are hung up because some parties want the Bills to include a complete plan for future testing.

MASA's position is that we need the revised plan for the testing to be passed now so that students, teachers and parents know what they are up against when the students take this test for the first time in April.

New idea to accelerate students in HS and provide college scholarships:

This new Bill has just been introduced. It would reward students taking college courses in HS with college scholarships. We are still analyzing this idea.

FEDERAL STIMULUS PASSES SENATE

There are 2 versions of the federal stimulus Bill. One past the US House of Representatives that includes money for special education, Title I and for school construction. The Senate version has special education and Title I funding, but no school construction funds. In the next few days the two bodies will resolve the differences in conference committee. We hope some school construction money can be included in the final stimulus Law.

PLEASE APPROVE THE NCLB REAUTHORIZATION RESOLUTION

MASA sent every Superintendent a sample resolution that we are asking school boards to adopt. So far 10 Districts have notified us that they adopted the resolution. We would like to have 300 Districts approve the resolution by April 1 so that our Federal Advocacy group can bring it to Washington and present it to members of Congress.