Voice of MN Education

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.