The recently announced $24 million budget crisis for the 2005-06 school year by 
the St. Paul Public Schools has raised the interest and concerns of many list 
members. Due to my schedule and the desire to be completely accurate in my 
statement, I haven't been able to post prior to now. But, for the good it will 
do, here is some basic information to help list members prepare for what will 
be an important community discussion surrounding the budget process. Over the 
past several years, the district has made an increasingly concerted effort to 
reach out to educate the community on its budget issues and to solicit 
comments. I expect that the district will redouble its efforts to 1) hear 
community concerns, priorities and appeals related to the budgeting process, 
and 2) to educate the community on the problems the district faces. In my 
experience, the district has made substantial improvement in community outreach 
on budget issues, but it has ample room for additional improvement.  The 
district has until June 30, 2005 to submit its final budget proposal to the 
state of Minnesota. 

The Basic Budget Process:
If the 2004-05 budget process follows the steps of previous years, both the 
central office and individuals schools/programs will be involved in budget 
development. At the school level the budgeting process begins with the central 
office informing schools of how much revenue they are expected to have in the 
next year, based on student projections. The individual schools determine how 
the revenue will be spent. Some of the services or programs at an individual 
school are administered by central office. Examples are food service, 
transportation, special education teachers and English Language Learners (ELL) 
teachers. Thus a total school budget includes revenues administered by the 
school itself and by the central office. 

In the past, school budgets have been reviewed and approved by school site 
councils. The amount of involvement the site council and its members have in 
budget development and approval varies from school to school, ranging from a 
high level of involvement to what some describe as a "rubber stamp" process. In 
their budgeting process, schools struggle to "keep the cuts as far away from 
the classrooms as possible." Still, a significant number of teachers and staff 
have been cut at the school level in recent years. In my opinion schools will 
have a very hard time keeping substantial cuts away from classrooms during this 
budget cycle.

Traditionally schools submit their budgets in the spring. Late April or early 
May has traditionally been the final deadline, but there is communication back 
and forth between the school and the central office prior to the official 
deadline. 

The school budgets are combined with the budgets being developed and 
administered by central office to create the "final budget" that is submitted 
to the Minnesota Department of Education by the June 30 deadline.

In the past, the individual schools have administered approximately half of the 
total revenue the St. Paul Public Schools receive, and the district's central 
offices have administered the other half. It should be noted that most of the 
district's "half" is allocated directly to schools as opposed to being "kept" 
at the central office level. This point will be important to keep in mind as 
the budget process gets underway and cuts are proposed. Because the central 
offices administrate approximately half of the revenue does not necessarily 
mean the district offices are overstaffed, top heavy, etc. These terms are 
pejorative. The percentage of administrative costs in our district could and 
should be compared to other similarly sized school districts or entities in 
other industries to provide some fair perspective. 

A word of caution: During the next few months you'll hear and see many 
references to "the budget." Make sure you understand what is being referred to: 
is it the total budget? The general fund budget? The transportation budget? 
Depending upon which budget is being discussed, the amounts will 
vary--sometimes significantly. When community members see different totals for 
"the budget" without knowing precisely which budget is being referred to, 
confusion and mistrust are natural outcomes. 

My source for the revenue and expense information below is the one inch thick 
2004-05 budget book for the district, phone conversations with district 
officials to check facts, and my own knowledge. Any list member is encouraged 
to post corrections to these comments--respectfully, of course. 

Where revenue came from by source for 2004-05:

According to the district's published budget, in the 2004-05 school year 74.6 
percent of total budget comes from the State of Minnesota. State revenue 
includes the general fund (figured on a per pupil basis), compensatory 
education revenue (indexed to poverty on a per pupil basis) integration revenue 
(figured on a per pupil basis); funds designated for special education (based 
on a cost reimbursement formula that reimburses about 55% of actual cost), and 
funds designated for English Language Learners (figured on a per pupil basis 
for only those students whose home language is other than English). Local 
revenue accounts for 13 percent of total budget. This revenue source is tied to 
St. Paul's property taxes. It includes the 2002 referendum. Federal revenue 
accounts for 9.4 percent of the total budget. This source includes Title 1 
dollars, given in a block to the state, then redistributed by the state to 
school districts. It is indexed to poverty rates. The district receives other 
revenue including fees, grants received, donations, and in kind contributions. 

Where district revenue is budgeted for the 2004-05 by category:

Classrooms: 72 percent
Buildings, Upkeep, Utilities: 17 percent
Transportation and Meals: 7.7 percent
Administration: 3.3 percent 

As the budget process gets underway, I invite list members to submit questions 
they might have to me and we will do our best to provide researched and 
accurate answers.

Roger Barr
Support Our Schools
10 River Park Plaza Suite 800
St. Paul, MN 55107

email: roger @supportourschools.info



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