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DFLers plan to go for the gusto when it comes to education funding.

Over the next several years, DFL representatives and senators, along with a smattering of Republican allies, plan to ask for $1.7 billion a year in new money for schools. That's a total that dwarfs the last big school funding increase, approved in 2007, which allocated about $790 million in additional funds over two years.

Among other things, the funding proposal calls for an increase in basic school funding, from the current $5,124 per pupil to $7,500 per pupil; aid for districts with declining enrollments; more money for districts where the cost of living for employees is higher, and more funding for special education and students who speak limited English. It would require schools to use 1.5 percent of their basic revenue to fund programs designed to improve student achievement, and would reward schools with more money if their students improve.

Supporters have dubbed the initiative the "New Minnesota Miracle," after the 1970s reform that shifted much of school funding from property taxes to state funding.

The plan for the extra funding, plus proposals to alter the school funding system, were announced at a Monday news conference packed with mostly DFL representatives and senators. What remained unclear is how all this school largesse would be financed.

"We have to look at what the economy is for next year," said House Speaker Margaret Anderson Kelliher, DFL-Minneapolis. At the same time, legislators who support the education funding plan want to reduce property taxes by $600 million. Such taxes have been used increasingly by school boards to pay costs not covered by state aid.

House K-12 Finance Division chairwoman Mindy Greiling, DFL-Roseville, said that there would likely have to be some kind of tax increase to fund such a plan.

"I'm open to however the tax committee wants to fund it," said Greiling, one of the funding plan's chief architects.

Gov. Tim Pawlenty criticized supporters of the plan Monday for proposing little in the way of meaningful school reform. He also faulted legislative supporters for failing to come up with specific methods for funding the plan.

"They're calling it 'the New Minnesota Miracle,'" he said. "I think the miracle is that they don't have a way to pay for it."

Supporters say funding would need to be phased in over time, beginning with the 2009 legislative session.

Hearings will be held in the House this year on the funding proposal. Greiling hopes to familiarize state representatives enough with the plan so supporters can use it as campaign fodder when they seek reelection this fall.

"It will be a talking point in the election," she said. "I hope it will be a big talking point."

Staff writer Mark Brunswick contributed to this report. Norman Draper • 612-673-4547

http://www.startribune.com/politics/state/17373324.html