Will a "New Minnesota Miracle" answer the prayers of educators statewide or will it fizzle out like prior legislative proposals?
   
Representative Mindy Greiling, a DFLer from Roseville, came to Rochester on Tuesday, touting DFL-backed legislation that calls for an additional $2.5 billion each year statewide for K-12 pubic education. The new education funding formula or "miracle" takes its name from the 1971 legislation that put more of the onus for education funding on the state.

The plan aims for a simplified funding system that would allow more equitable dispersion of state dollars to school districts. Funding currently is weighted toward the number of high school students and the district's location. The plan includes $400 million to provide property tax relief, with each district receiving $500 per student in referendum revenue.

The bill's supporters say the new cash would stabilize districts currently operating with help from taxpayer-funded referendums, especially districts looking at budget cuts in the coming months. The funds could be used to keep teachers away from the unemployment line and to continue programs and sports that are nearing the budgetary ax of many school boards. The Minnesota legislature currently spends more than $7 billion on public education, about 40 percent of the state's general fund.

Greiling, who is chairwoman of the K-12 Finance Division, said she hopes the bill will be introduced in the first days of the session, rather than at the end when education funding usually is settled. She said the legislation has support from both sides of the aisle.

Criticism of proposal

But with a projected $2 billion deficit for the legislature's next biennium, some opponents say funding the sweeping measure would be the real miracle.

Those include Gov. Tim Pawlenty, according to Alex Carey, a spokesman for the governor.

"You'd think with an economic crisis facing the nation that Democrats would finally back off their calls for increased taxes, but they just keep coming," Carey wrote in a recent e-mail. "In addition, their proposal simply tweaks school funding formulas without demanding accountability for better results."

Randy Demmer, R-Hayfield, said the state should pursue changes to education funding, but cannot make knee-jerk reactions. While he said part of the legislation that allows more support to declining districts -- the declines can be balanced over three years instead of one -- Demmer said that education any funding reform needs to ensure that students are prepared to compete in a worldwide economy.

"Just pouring more money (into schools) by itself is not going to get that done," said Demmer, a member of the K-12 Finance Division.

In the bill, 5 percent of a district's revenue would be dedicated to researching ways to improve student performance, and districts not reaching adequate yearly progress would file revenue plans with the state education commissioner.

The measure also calls for the removal of Q Comp, an alternate-pay system for teachers, which Greiling said she usually supports. It apparently was removed from the bill in response to Pawlenty's opposition. In a bit of political wrangling, Greiling said the component could be brought back if Pawlenty allows Education Commissioner Alice Seagren to support the legislation.

Tax increases

The question remains of who would pay for additional education funding.

Greiling said money for the plan likely would come from a mix of tax increases and cuts to other programs. She favors increasing the income taxes of households earning $500,000 and above, or single residents making $250,000. Greiling said those taxes were eliminated under the tenure of former Gov. Jesse Ventura.

"I'm not willing to make huge cuts in human services to pay for this bill," she said.

While Greiling admitted that legislative approval of the entire $2.5 billion would be surprising, she said the bill could be phased in over several years. If the plan took six years, it could be split with the current funding formula, which would increase funding by about 5 percent each year.

In her eyes, underfunding education would weaken the economy, because workers wouldn't be as qualified.

"How can we not pay for it?" Greiling said.

Deficit concerns local leaders

While education leaders from southeast Minnesota obviously favor an ability to add black ink to their budget forecasts, the state's impending red ink gives them pause.

"If the state has that large of a budget deficit, how are they going to come up with $2 billion to cover that and then another $2.5 billion to cover this?" said Larry Smith, financial director for Rochester schools.

Other superintendents spoke of the need to pursue changes in education financing.

Red Wing Schools Superintendent Stan Slessor said the state needs to take full responsibility for education funding and that the current "haves versus the have-nots" funding model that relies too much on zip codes needs to be reformed.

Lyle Public Schools Superintendent Jerry Reshetar said the ability of the "miracle" to be phased in makes it more realistic, noting that Minnesota educators have long lamented the need for change within education funding.

"There's a great deal of frustration in the state about how we fund public education," Reshetar said.
 
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