To answer Rich Chandler's questions about referendum funds and budget
shortfalls:
The referendum money is committed to keeping current class sizes, with a
small amount for early childhood education. Referendum money is spent on
maintaining class size and is not available for general purposes. The
budget cuts under discussion are due to a shortfall in other income.
While school budgets may be cut, the referendum money means that current
class sizes can and will be maintained. The increase in referendum funds
that voters approved in November 2000 was only for inflation.
In the school year 2000-01, the state provides $322 million in aid to
fund MPS.
Where does the $29.5 million shortfall for the 2001-2002 school year
come from? Rising costs for our district include:
*the need for the district to maintain a competitive salary schedule in
order to ensure quality instruction (est. $10 million).
*Transportation costs are expected to increase by 7%, or $2.6 million.
About $2.2 million is anticipated for increases in Transportation Task
Force presently is examining ways to reduce costs.
*The cost of health care benefits for employees is rising, with
increases of more than 10% predicted (est.$5.3 million).
*Utility costs for schools are rising, just as they are for homeowners.
(est. $2.3m per year)
There is also loss of one-time state revenues for fiscal year 2001 ($5
million).
The Governor's budget recommendations provide no new resources for
public education in the next school year and only $6 additional per
pupil in the 2002-2003 school year, despite a surplus totaling $3.7
billion. In the House Omnibus K-12 Education Finance Bill, the House
increases the general education formula by $86 in FY 02 and $125 in FY
03. The House bill provides the Minneapolis Schools with roughly $4.5
million of new general education revenue and an undetermined share of
the alternative compensation grant revenue, which does little to address
the $29.5 million deficit projected under the Governor's budget.
Further, the freeze and sunset of compensatory revenue would mean a cut
of $44 million to MPS in FY 04. The Senate bill provides a $106 formula
increase in FY02 and $140 in FY03. The Senate run for FY02 appears to
show an increase of $7.5 million in general education aid for the
Minneapolis Schools. This does not include the secondary vocational
revenue. In any case, this still leaves us with a substantial shortfall
for next year.
This situation is not unique to Minneapolis Public Schools - school
districts across the state are making devastating cuts and facing severe
budget shortfalls because of inadequate funding from the state.
--
Debbie Urbanski
Communications Department
612-668-0233
Minneapolis Public Schools. Expect Great Things.
http://www.mpls.k12.mn.us
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