Wednesday, April 18, 2007

Omnibus E-12 Education Finance Budget Bill, April 18, 2007

This post sums up the floor activity related to the Omnibus E-12 Education Finance bill (HF6) on Wednesday. (We started working on this bill about 3 p.m. after working all night--see next post below for details on that session!)

Generally speaking, here are the benefits to the bill.

* Early childhood: The bill returns the budget to its 2002 levels for head start, ECFE, and school readiness programs.

* K-12: This bill would increase the basic education formula from $4,974 per pupil to $5,125 in FY2008 and $5,280 in FY2009. This is a three percent increase per year. Also included is $29.1 million over the next two years for school technology grants, funding for voluntary all-day kindergarten, and an additional $106 million over the base budget to fund the special education cross subsidy.

* Property tax relief: The bill contains $125 million in property tax relief. (See some district-specific examples below.)

Here's how I understand the effects of the E-12 bill on school districts in my district. Those districts include Centennial (ISD 12), Mounds View (ISD 621), and White Bear Lake (ISD 624). I represent one street in the Forest Lake district but I'll have to pass on that one for the moment.

Centennial: In FY2008, Centennial would see a 3.3% increase in the base budget ($8,481 total), or $186 more per pupil for general education and $82 per pupil more for special education. In FY2009, there would be a 9.1% increase in the base budget ($9,004 total), or $488 per pupil more for general education and $87 per pupil more for special education. In addition, Centennial will receive about $2.2 million from the state that pays down existing levy dollars ("debt equalization," operating capital decrease). That means Centennial would not receive $2.2 million more for education but would charge $2.2 million less to property taxpayers.

Mounds View: In FY2008, Mounds View would see a 3.3% increase in the base budget ($10,383 total), or $244 more per pupil for general education and $85 per pupil more for special education. In FY2009, there would be an 8.2% increase in the base budget ($11,012 total), or $569 per pupil more for general education and $88 per pupil more for special education. Mounds View will receive about $1.92 million from the state that pays down existing levy dollars ("debt equalization," operating capital decrease). That means Mounds View would not receive $1.92 million more for education but would charge $1.92 million less to property taxpayers.

White Bear Lake: In FY2008, White Bear Lake would see a 3.2% increase in the base budget ($8,961 total), or $199 more per pupil for general education and $81 per pupil more for special education. In FY2009, there would be an 8.7% increase in the base budget ($9,206 total), or $525 per pupil more for general education and $71 per pupil more for special education. White Bear Lake will receive about $1.01 million from the state that pays down existing levy dollars ("debt equalization," operating capital decrease). That means White Bear Lake would not receive $1.01 million more for education but would charge $1.01 million less to property taxpayers.

Miscellaneous: Several Mounds View parents who are supportive of Q-Comp have asked for continued state support of the program. My reading of the bill indicates that districts that currently use Q-Comp will have funding available, although it would not be for additional districts.

My count of amendments was 54. Virtually all of them were not adopted by wide margins. The final bill, which I voted for at 12:55 AM on Thursday passed by a margin of 119 to 13.