Article Last Updated: 04/07/2008 10:53:32 PM CDT

Dems offer school funding overhaul

Democratic legislative leaders on Monday announced a plan to overhaul funding for Minnesota schools, but they don't have a way to pay for the extra $1.7 billion it would cost or immediate plans to put it into place.

Education advocates argue the state's funding system is broken and say the state is backing away from its commitment seven years ago to take on a bigger chunk of school funding. That means local property-tax payers are bearing more of the burden — and some are bearing much more than others, depending on where they live.

The overhaul aims to change that and create a simplified, balanced and fair way to fund schools across the state, said Rep. Mindy Greiling of Roseville, who chairs the House K-12 Education Finance Committee. The plan also would provide $600 million in property tax relief.

"For the first time, we're actually providing enough money to fairly fund the needs of every student and every district, so they can meet the academic expectations we set for them," Greiling said of the plan.

Greiling and Sen. Terri Bonoff of Minnetonka led a bipartisan legislative task force to create the funding plan. They worked from recommendations by P.S. Minnesota, a statewide coalition of education and parent groups. The proposed funding plan:

-- Increases the amount the state spends per student generally to $7,500 from $5,124.

-- Boosts spending for English-language learners, low-income students and special-needs children.

Funds voluntary, all-day kindergarten for districts that want it.

-- Gives extra help to districts with declining enrollment.

-- Adds a new component that takes into account differences in wages and housing costs around the state.

-- Removes caps on what special education costs will be reimbursed by the state.

-- Allows districts to spend general education money on preschool programs.

The plan will get its first hearing at a joint House and Senate meeting Thursday. Greiling said lawmakers plan to host a series of public meetings after that to get feedback.

Democrats did not say how they would come up with the extra money but said changes could be phased in. House Speaker Margaret Anderson Kelliher said it will take time.

"This is really an overhaul for the school funding system," Kelliher said.

Democrats dubbed the plan "The New Minnesota Miracle."

Republican Gov. Tim Pawlenty said tweaking funding formulas might be interesting but does little to reform education.

"I think the miracle is they don't have a way to pay for it," Pawlenty said.

Minnesota's budget for preschools through high schools this year and next is about $13.8 billion, about an $800 million increase over the previous biennium. Most of the increase is fulfilling the state's obligation to fund special education costs.

State funding for schools spiked in 2002-03 after a previous reform of the school-funding formula. But four straight budget deficits followed, putting the state billions of dollars in the hole.

Although state revenue has gone up, it has not kept pace with inflation, and school districts have turned to local property-tax payers to take on a bigger share of school spending. In November, almost one-third of Minnesota school districts asked voters to approve operating levies.

Tom Dooher, president of the statewide teacher's union Education Minnesota, said the proposal is a very promising start. In the end, he said, the state needs to have an equitable, sustainable, predictable and sufficient way to fund schools.

"It shouldn't matter what your ZIP code is to receive a world-class education," Dooher said.

Megan Boldt covers education and can be reached at mboldt@pioneerpress.com or 651-228-5495