Changing the revenue formula

The House K-12 Finance Division laid over for possible inclusion in its omnibus bill a plan to change the formula for integration revenue for certain Minnesota school districts.

HF3423, sponsored by Rep. Debra Hilstrom (DFL-Brooklyn Center), would create a new class for integration revenue.

According to statute, “the revenue must be used to create or enhance learning opportunities which are designed to provide opportunities for students to have increased interracial contacts through classroom experiences, staff initiatives, and other educationally related programs.”

Under current law, school districts with over 15 percent of students of color receive the lesser of the cost of plan implementation minus aid received or $129 times the adjusted pupil units for the school year. This bill would allow districts with more than 50 percent students of color to receive the lesser of implementation costs or $445 times the adjusted pupil count.

The bill would also allow school districts with a negative unreserved general fund balance greater than 2.5 percent as of June 20, 2007, to levy under the section to eliminate a deficit. This levy can only be used for cash flow requirements and cannot be used to supplement district revenue or income.

Brooklyn Center Schools Superintendent Keith Lester said the district’s levy authority is one of the lowest in the metro and there is a renewal due in 2011. With declining revenue and increased inflation, the district is living off grants. “I’m not sure you can ever get out (of operating debt),” he said.

Bryan Bass, principal of Brooklyn Center High School, said the district works to try to provide a rigorous curriculum for the student population.

“We are surviving with hope and with a very committed staff on soft money,” he said.

Rep. Tim Faust (DFL-Mora) said it seems totally unfair that Brooklyn Center has a similar number of students of color, but Minneapolis gets three to four times the money.

Rep. Pat Garofalo (R-Farmington) said part of the reason is that there are three districts, including Minneapolis, that statutorily receive money. The others are Duluth and St. Paul.

A companion bill, SF3204, sponsored by Sen. Linda Scheid (DFL-Brooklyn Park), awaits action by the Senate Finance Committee.