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Education funding faces tough road in Legislative session

By Senator Twyla Ring

Whether Minnesotans are polled by some scientific polling service or by the Senate State Fair polls, the majority of our citizens consistently support education. The majority of people are willing to pay taxes to fund public education and feel, as I do, that a dollar invested in education at all levels pays off handsomely down the road.

Trying to deal with the stateís budget deficit calls for measures that hurt some districtsí pocketbooks more than others. The governor would like to shift state funding for programs to local levy, which would increase property taxes.

The governor also looked at school district reserves and based his budget cut recommendations on those figures.

However, the reserves for some districts appear inflated, often because of extenuating circumstances. For example, the North Branch School Districtís reserve balance is because of the districtís overcrowding. The students, who are filling the classrooms far beyond capacity, bring with them basic state aid of $4,601 per pupil. And in Pine City District, according to Supt. Darwin Bostic, the reserves were built up to stave off budget problems in the event of another ìfuel crunch.î

At a recent meeting with school district superintendents and board chairs, Bostic said, "We canít have a zero fund balance...we need protective reserves.î True enough. When the Senate DFLers tried to help out school districts in dire straits due to the fuel crunch, we were told that districts should budget for such potential problems. And then when districts do build up a reserve, they are told, ìOops, thatís a bad thing.î

Rush City Supt. Tim Eklund also expressed frustration with the governorís ìbig fix.î Districts need cash reserves to pay the bills until the state aid comes in the summer. Without reserves, districts must do short-term tax-anticipation borrowing. ìSo we lose investment earnings and pay interest instead,î Eklund noted.

Sometimes a state budget cut actually can mean a tax increase for local district taxpayers. A case in point: The governor recommends cutting funding for early childhood/family education.

However, most educators and parents whom Iíve heard from in Senate District 18 agree that the program serves education and families well and is highly valued. The governor says that if districts want it they can levy for it...thatís an increase in local property taxes.

In the case of North Branch, according to Supt. Bob Stepaniak, the district has the fund balance and the kids identified for ECFE, ìbut we have no space.î And space needs must be addressed via a bond referendum, paid for mostly by local property taxes.

So, although the state is constitutionally mandated to provide public education for children, and the majority of citizens say education is their top priority, do we have the political will to adequately fund it? For the well-being of our children and for the good of Minnesota, I hope the answer is yes.

Senator Twyla Ring can be reached at 306 State Capitol, 75 Constitution Avenue, Saint Paul, MN 55155-1606;
e-mail: sen.twyla.ring@senate.leg.state.mn.us; or (651) 296-5419.


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