Posted: 1/18/06
By Patrick Tepoorten
What does 2006 hold for education in Minnesota? Brad Lundell of Schools for Equity in Education (SEE) summarized the 2006 legislative agenda for the North Branch school board on Thursday, Jan. 12.
SEEís 2006 legislative platform focuses on equity and adequacy. On the equity side, SEE would like to see the state legislature increase the referendum and debt service equalization factors to reflect inflation.
As it stands, the measures for equalization have remained unchanged since 1993. Such a move would give smaller districts such as North Branch, which is sensitive to property tax increases, increased access to state matching funds.
In regards to student adequacy, Lundell stressed that SEE would continue to work for a ěstandards-based funding formula,î that will better provide the resources needed to insure all students have the opportunity to meet state requirements in education. Phase I of that effort, ěDetermining the Cost of Education in Minnesota,î was released on Dec. 2 of last year, and concluded that public education in Minnesota was underfunded by roughly $1 billion dollars. Lundell addressed that study and its conclusions.
In doing so he stressed that the study, though concluding a major shortfall in funding was evident, was not about the money. ěWeíre not asking for a billion dollars. We are saying that something needs to change.î He added that, with new attitudes focusing primarily on standards-based education, new patterns of expenditures are emerging as a result. ěNow that standards are out there and in place, we can look at what it takes to get there,î Lundell concluded.
Phase II and Phase III of the study should be completed in the next year and are expected to address the need to reform education spending to reflect a standards-based education system.
Lundell also criticized the latest effort of Governor Tim Pawlenty, who called recently for school districts to dedicate 70 percent of all funding to the classroom. Lundell quoted the governor from earlier in his administration, noting that every school should be under ělocal control.î
ěItís kind of inconsistent to have this report that is all for local control, as long as it is above 70 percent,î stated Lundell. He also warned that the 70 percent solution could hurt the North Branch school district in the long run.
In other school board news:
ď The election of officers opened the meeting, with no changes to last yearís lineup.
ď The board considered, but postponed for at least one year, a raise in salary for board members.
Board member Kirby Ekstrom opined that most people do not run for the school board for the money, but added that when board members have to take days off from work for board business, it can take away from vacation time. ěWe have to look into that in the future,î he concluded.
ď The district received a clean bill of health regarding its 2005 audit. In fact, auditor Dennis Hoogeveen pointed out that North Branch was one of the few districts statewide that had ěno findingsî to report as a result of the audit.
He did note the reduction of the districtís unreserved general fund, which dropped from $4.2 million to $3.2 million in 2005, and informed the board that it can be a ěslippery slopeî to spend down the balance. However, he understood that the decision to do so was a one-time fix for previous budget woes and stated that spending down the general fund would only be troublesome as part of a trend.
Hoogeveen encouraged the district to begin the process of preparing for GASB No. 45, which will take effect in 2009. According to district finance director Randi Johnson, GASB 45 dictates that school districts make their post-retirement benefit reporting resemble those of private for-profit companies. Right now most schools, including North Branch, operate on a pay as you go basis. In the future, districts will have to plan much more long term for those liabilities through the use of an irrevocable trust.
Johnson stated on Monday that North Branch is looking at ways to offer post retirement benefits that accrue during employment. In that way, employees would take their benefits with them when they leave, rather than the district having to be responsible for the liability after the employee has retired. Still, the district will have to hire an actuary sometime in the next couple of years to determine what the districtís current and future liability is.
ď The board approved a meeting schedule for 2006, and will continue to meet on the second and fourth Thursdays.
ď The Post Review was renewed as the official paper for the districtís legal notices.
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