For more information contact: Michael Howard 651-296-8873
Many teachers and parents have been calling and e-mailing me, worried about how we will close our state's $935 million budget deficit this year. I understand their concern. When we faced a budget deficit in 2003, K-12 schools were cut deeply in order to balance the budget. With many of our schools still struggling from those devastating cuts, it is unacceptable to again to balance the budget on the backs of our students.
Last week we passed a balanced bill that will close our state's $935 million budget deficit. The bill takes a responsible approach, cutting spending, including from the legislature, using cash from our state's budget reserves, and closing tax loopholes for corporations sheltering earnings overseas. Most importantly, our bill protects our schools by increasing funding on a per-student basis rather than adding to the funding formula. It is a balanced investment to every school district in the state.
Our proposal includes a balanced funding increase of $42 million for next year, spread evenly to schools across the state. The proposal also includes flexibility for school districts to transfer up to $51 per pupil from the district's capital budget to the district's general fund in order to meet urgent needs if the district has funds in their capital budget account. This was added to a provision I authored for funds transfer for East Central High School
The proposal is fiscally responsible. We will send money directly to the classroom through unused Q-Comp funds, state budget reserve funds, and by agreeing with the Governor's recommendation for a 4% agency cut at the Minnesota Department of Education.
Maintaining our commitment to education during this economic downturn is critical. Last year, our education bill provided the first significant state funding increase to address the major gap left by the devastating 2003 budget cuts, however we were not able to completely close the gap. This funding increase in this year's bill keeps us on track and lays the groundwork for more significant education funding reform next year. We still must work with the Senate and Governor to agree on an overall budget plan. I'm hopeful we can bring everyone together to keep education a top priority in this year's budget.
Our education budget bill this year comes on the heels of the work from the Education Funding Reform Task Force, which was commissioned from a bill I authored last year. The Task Force recommendations from this group's study on school finance have called for a simplified state funding formula that decreases our reliance on property tax increases for school funding. The product of this task force is a proposal for innovative school funding reform legislation that will provide substantial, equitable funding for every Minnesota schools, especially in Greater Minnesota. I am hopeful the needed funds provided for our schools this year can be a springboard for this substantial education funding reform next year.
Balancing a budget requires difficult choices, but cutting our schools again would only create larger problems down the road. The long-term strength of our economy has always been our highly skilled work force. For decades, we have been a national leader in high school graduation rates and several economic indicators like personal income growth. However, both of those numbers are slipping. If we are to stay economically competitive, we must continue providing a world-class education to every Minnesota student, no matter where they happen to live. Our proposal this year is the correct long-term strategy to keep Minnesota educationally, and economically, strong for years to come.