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SEE 2008 Legislative Platform
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Equity for Students and Taxpayers

The equalizing factors for the Operating Levy and Debt Service Levy must be increased to match the actual growth in market value.
  • Equalization is Eroding - The value of the state-determined equalizing factors for school district operating levies and debt service levies have eroded to the point where fewer and fewer districts qualify to receive state equalization dollars. While the state average referendum market value and adjusted net tax capacity per student have nearly tripled, the equalizing factors have remained static. The resulting increase in property taxes is particularly difficult for taxpayers in low property wealth school districts.
  • Referendums are Unequal - These equalizing factors must be increased to provide greater tax fairness if the referendum is to remain a viable funding tool for all school districts. Low property wealth school districts with facility needs must have access to the debt service equalization program. For the 2008-2009 school year, it is estimated that the state average referendum market value per resident pupil unit will exceed the currently budgeted first tier referendum equalizing factor. Most low property wealth districts are forced to expend twice as much effort for the same level of revenue as higher wealth districts.
  • Have and Have Nots - The gap in per pupil funding between districts at the 5th percentile and the 95th percentile of funding has increased by more than $250/PU from FY 2006 to FY 2007 and now equals $1,280 per pupil unit. This is directly attributable to the increase in the referendum cap enacted in 2005.
  • Increase Equalization - Increasing the equalizing factors for the Total Operating Capital, Alternative Compensation, Deferred Maintenance, Health and Safety Programs, and other unequalized levies should be a legislative priority.


Adequacy for All Students

New revenue must be allocated to the general education basic formula, which is slated to receive only a 1% increase from the 2007-2008 level while inflation is running at close to 3%.
  • Increase the Formula - With an increase that is less than inflation, school funding provided in the 2007 Omnibus Education Funding Bill for the 2008-2009 school year is clearly too low to meet the increasing mandates and needs facing school districts throughout the state.
  • All-Day K - A greater commitment to funding for all-day kindergarten and other early learning initiatives must remain a high priority.
  • Technology for Testing - More revenue will be needed to supply the technology and support to implement of the on-line testing mandate by 2009.
  • Special Education Funding Gap - Even with the increase in special education funding enacted in 2007, the revenue earmarked for special education costs will be far short of actual needs.


Comprehensive Funding Reform

The Governor and Legislature must commit to the development and implementation of a standards-based funding formula that will meet the needs of all students regardless of where they live as outlined in the work of PS Minnesota.
  • Formula is Under-funded - PS Minnesota’s work, commissioned in the wake of the Governor’s Education Finance Reform Study released in 2004, shows that a $1 billion gap exists between current funding levels and what revenue is truly needed to successfully meet mandated federal and state standards for all Minnesota students.
  • Commit to Fix the Formula - A long-term commitment is needed on the part of the Governor, the Legislature, the education community, and the state’s citizens to reach this crucial goal.


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