[Winona Online Democracy]

Greetings,

Yesterday I had the opportunity, along with other school board and community
members, to meet with legislators at the capital and receive an update on
how the budget will impact K-12. I know we will receive an update from our
business office at a school board meeting soon, but I wanted to share with
you my initial understanding of how this proposal will impact K-12 in
district 861.  I'm not doing this to claim "the sky is falling", but since
it is a very complicated issue I thought it might be good to get information
out so people can begin to understand how the community will be impacted.

The plan calls for a reduction in funding to Winona Area Public Schools of
$197 per pupil.  This amounts to about $850,000 in reduced money to the
district.

The State will offset that by an addition of $197 in "Transition Money" the
first year of the budget, so the impact on the district will be negligible
the first year.

In the next couple of years after that, the plan calls for giving school
boards the authority to levy property taxes in the amount of $197 per pupil.
After that, a referendum must be passed to retain the funding.

It should be noted that the 2.2% increase in funding to schools described in
the Governors plan is NOT an increase in state funding to schools.  What the
plan does is adds up all the local referendums that were passed last year by
school districts (to go in effect next year) and divides by the number of
school districts in the state (and calls it a 2.2% increase in per pupil
funding).  Overall, though, the plan reduces state funding to K12 by 12%.

There are other elements of the plan that will result in increased financial
pressure on 861, such as a freeze in Special Education funding and reduced
overall funding in coming years.

Prior to this plan being introduced, the School Board began the early stages
of a process to reduce our budget by at least $1 million in the coming
year -- in order to keep it balanced.  The cuts in the governor's plan can
be added on top of that projection.  Because of these existing financial
pressures, it is likely that the School Board would enact significant cuts
in the budget in the coming year and levy to maintain the $197 per pupil
that the proposal allows for in the following year (for those keeping score
. . . yes, this would mean an increase in local property taxes as a result
of the Governor's proposal).  Obviously, this would be debated and would
depend on the actual situation a year from now.  But even with maintaining
the $197 levy, if current projections hold true, the district would continue
to make significant cuts (beyond the initial $1 million)  in the following
years in order to maintain a  balanced budget.

Hope that helps give some idea of the proposal.  Keep in mind that this is
my understanding of the budget.  It is entirely possible that this
information may change as more analysis becomes available or the Governor's
plan changes due to changing economic conditions.  Also, this email does not
discuss the impact on ECFE and Community Education, which is likely to be
significant, as well.

I'd be happy to answer any questions (or hear any ideas), though.

Steve Kranz, Board Member
Winona Area Public Schools


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