| Governor's Changes |
| (Dollars in Thousands) |
| FY 14 |
| FY 15 |
| FY 14-15 |
| Biennium |
| FY 16 |
| FY 17 |
| FY 16-17 |
| Biennium |
| Basic Formula Simplification and Investment - Revised |
| The Governor recommends increasing the General Education basic formula by 1% in FY 2014. The per pupil formula |
| would increase $52, from $5,224 in FY 2013 to $5,276 in FY 2014. The Governor also recommends the following changes |
| to the general education formula beginning in FY 2015 to increase transparency, equity and flexibility of funding to school |
| districts. 1 ) Simplify student weightings by changing grades 1 - 6 and handicapped kindergarten to 1.0, grades 7 - 12 to |
| 1.2, and kindergarten to 0.55. 2) Eliminate marginal cost pupil units and establish a separate declining enrollment |
| component of the formula. 3) Change the referendum levy calculations for districts from a resident student to a served |
| student formula. 4) Adjust per student allowances to neutralize the impact of student accounting simplification on district |
| revenues. 5) Simplify equity revenue with a two-part formula including a sliding scale allocation ranging from $100 per |
| student for districts with no referendum revenue to zero for districts with referendum revenue of $2,000 per student or |
| above and a uniform allocation of $56 per student. Calculate equity revenue for charter schools based on actual |
| referendum revenue received rather than state averages. 6) Increase flexibility of basics skills funding for school districts |
| by rolling extended time revenue into the compensatory formula and increasing discretionary spending from 5% to 15% of |
| compensatory revenue. 7) Adjust levy calculations to limit the impact of above changes on property taxes. 8) Roll gifted |
| and talented revenue into the basic formula. 9) Provide charter schools with $32 per pupil in Safe School aid beginning in |
| FY 2015, which is equivalent to the safe schools levy available to school districts. 10) Eliminate the aid reduction for |
| changes in employer retirement contribution rates with a hold harmless for districts with below average reductions. 11) |
| Adjust transition revenue for FY 2015 and later to ensure that every district receives at least as much revenue under the |
| Governor's recommendations as under current law. |
| Performance Measures: |
| Changes to the General Education formula increase transparency, equity, and flexibility of funding for school districts. |
| Increasing the basic formula, together with increases in special education funding, aim to improve education funding |
| adequacy. |
| 49,769 |
| 63,250 |
| 113,019 |
| 66,941 |
| 68,192 |
| 135,133 |
| Net Change |
| 49,769 |
| 63,250 |
| 113,019 |
| 66,941 |
| 68,192 |
| 135,133 |
| Optional All Day Kindergarten - Revised |
| The Governor recommends an increase of 0.15 in the pupil unit weight for students enrolled in a free all-day every day |
| kindergarten program, beginning in FY 2015 (from 0.55 to 0.70). For FY 2015, this is an increase of $910 per student |
| enrolled in a free all-day every day kindergarten program. This increase in funding is expected to increase the |
| participation of kindergarten students served in free all-day every day programs from 49% in FY 2012 to 85% in FY 2015. |
| Performance Measures: |
| Expanded all-day kindergarten will reduce the achievement gap and increase achievement for all, including an increase in |
| third grade reading proficiency. |
| 0 |
| 48,130 |
| 48,130 |
| 55,129 |
| 54,633 |
| 109,762 |
| Net Change |
| 0 |
| 48,130 |
| 48,130 |
| 55,129 |
| 54,633 |
| 109,762 |
| Special Education Funding - Revised |
| The Governor recommends increasing state special education funding by 13 percent and replacing the current special |
| education-regular and excess cost formulas with a new formula under one appropriation beginning in FY 2015. These new |
| formulas will promote equity among school districts and enable students to be better served. The new special education |
| formula will include a pupil-driven formula that accounts for the incidence and cost related to disabilities as well as poverty |
| concentration and an excess cost formula to make funding more predictable and ensure that funding is targeted to |
| districts with the greatest need. Beginning in FY 2015, all special education costs will be included in excess cost aid |
| calculations, consistent with current practice for tuition billing (e.g., fringe benefits will be added), and aid will be calculated |
| using prior year data. For open-enrolled students, the new formula will require the serving district to pay for 10% of the |
| unreimbursed cost of providing special education and services, which will encourage cost-containment. However, districts |
| with high concentrations of special needs students (those in which more than 70% of students have Individualized |
| Education Programs) are exempt from this requirement. |
| Performance Measures: |
| Reforming special education funding seeks to restore equity for school districts, allowing them to adequately serve |
| students with special needs and reduce the cross subsidy of special education costs from unreserved general funds. The |
| new formula will encourage cost-containment and promote efficiencies in delivering services to students, which is intended |
| to increase student achievement. |
| 0 |
| 127,232 |
| 127,232 |
| 155,849 |
| 162,326 |
| 318,175 |
| Net Change |
| 0 |
| 127,232 |
| 127,232 |
| 155,849 |
| 162,326 |
| 318,175 |
| FY 14 |
| FY 15 |
| FY 14-15 |
| Biennium |
| FY 16 |
| FY 17 |
| FY 16-17 |
| Biennium |
| Early Learning Scholarships |
| The Governor recommends increasing access to high quality early childhood education programming by expanding the |
| Early Learning Scholarship program created in 2011. The goal of the scholarship program is to improve student outcomes |
| by providing children ages three to five with high-needs access to high-quality early learning opportunities. The |
| scholarships provide income-eligible families financial support for their child to attend programs rated by the Parent Aware |
| Quality Rating and Improvement System. |
| Performance Measures: |
| Minnesota faces one of the largest achievement gaps across the nation. Research has shown that the achievement gap |
| not only starts early in the development of a child, but addressing it early has a substantial long term positive impact |
| compared to students who did not receive the same opportunity . This investment would close the achievement gap by |
| addressing it at the beginning of a child's educational career. |
| 22,000 |
| 22,000 |
| 44,000 |
| 22,000 |
| 22,000 |
| 44,000 |
| Net Change |
| 22,000 |
| 22,000 |
| 44,000 |
| 22,000 |
| 22,000 |
| 44,000 |
| Teacher Growth and Evaluation - Revised |
| The Governor recommends revising statutes to clarify, define, and support teacher growth and evaluation systems. In FY |
| 2014, local districts will begin receiving funding on a pilot grant basis, and in beginning FY 2015, school districts not |
| participating in the Q-Comp program will receive teacher growth and evaluation aid of $22 per student. Additionally, the |
| proposal would designate resources in FY 2014 to the Department of Education for the purpose of providing support for |
| teacher evaluation systems to local districts by developing a model evaluation system that would be used by local districts |
| if there was not an evaluation model in place. |
| Performance Measures: |
| This investment helps to alleviate the impacts of the mandate incurred by local districts who will have to implement a |
| teacher evaluation system. |
| 1,433 |
| 8,801 |
| 10,234 |
| 9,930 |
| 9,705 |
| 19,635 |
| Net Change |
| 1,433 |
| 8,801 |
| 10,234 |
| 9,930 |
| 9,705 |
| 19,635 |
| Regional Centers of Excellence |
| The Governor recommends expanding the state's Regional Centers of Excellence from 3 to 9 centers statewide. The |
| regional centers were initiated in the spring of 2012 with the No Child Left Behind (NCLB) waiver to provide high quality |
| support and technical assistance to the state's Priority and Focus schools. Expanding the centers would allow the |
| Department of Education to provide support and disseminate evidence-based best practices to all schools in the state. |
| The centers will provide support to teachers and principals as evaluation models are implemented.The centers will also |
| build local and regional relationships between institutions of higher education, service cooperatives, community and |
| professional organizations, and public schools. |
| Performance Measures: |
| Expanding the Regional Centers of Excellence with state funds allows the Department of Education to provide support to |
| all districts within the state, regardless of Federal status. |
| 1,500 |
| 3,000 |
| 4,500 |
| 4,500 |
| 4,500 |
| 9,000 |
| Net Change |
| 1,500 |
| 3,000 |
| 4,500 |
| 4,500 |
| 4,500 |
| 9,000 |
| Bullying Prevention: School Climate Center |
| The Governor recommends continuing the Prevention of School Bullying task force efforts. This proposal would establish |
| a multi-agency school climate center at the Department of Education in order to develop standards for prevention, |
| intervention and support around issues of harassment and intimidation. The center, staffed by a director and a training |
| coordinator, would promote best practices and provide training for schools and communities to improve school climate |
| and school safety. |
| Performance Measures: |
| The School Climate Center will provide guidance to local districts on how to create safe and supportive school |
| communities. The Center will host conference and provide trainings to local district staff, which are intended to improve |
| school environments for students. |
| 500 |
| 500 |
| 1,000 |
| 500 |
| 500 |
| 1,000 |
| Net Change |
| 500 |
| 500 |
| 1,000 |
| 500 |
| 500 |
| 1,000 |
| English Language Learners 5 to 7 Years - Revised |
| The Governor recommends extending funding for English language learner (ELL) students from 5 years to 7 years. State |
| aid is provided to school districts to recognize the additional cost of educating ELL students. The current formula allows a |
| pupil to generate ELL aid for up to 5 years. Studies show that it takes an average of 7 years for an ELL pupil to pass the |
| emerging academic test and develop the skills to fully participate in the classroom along with native English speaking |
| students. |
| Performance Measures: |
| Providing additional funding for school districts to assist ELL students addresses the achievement gap. |
| 6,650 |
| 7,911 |
| 14,561 |
| 7,955 |
| 7,960 |
| 15,915 |
| Net Change |
| 6,650 |
| 7,911 |
| 14,561 |
| 7,955 |
| 7,960 |
| 15,915 |
| FY 14 |
| FY 15 |
| FY 14-15 |
| Biennium |
| FY 16 |
| FY 17 |
| FY 16-17 |
| Biennium |
| Integration Aid - Revised |
| The Governor recommends a new Integration Aid formula beginning in FY 2014. The current formula ends in FY 2013 and |
| funding under the current formula varies widely among districts. Under the current formula, some districts with low |
| concentrations of students of color receive higher levels of Integration Aid than districts with high concentrations. The |
| proposed formula would allocate Integration Aid on a per-pupil basis according to minority concentration and local district |
| progress on closing the achievement gap. |
| Performance Measures: |
| The new formula will promote accountability and will be linked to students' progress in each school district on closing the |
| achievement gap. |
| (2,688) |
| (3,019) |
| (5,707) |
| (2,236) |
| (1,338) |
| (3,574) |
| Net Change |
| (2,688) |
| (3,019) |
| (5,707) |
| (2,236) |
| (1,338) |
| (3,574) |
| Literacy Incentive Aid - Revised |
| The Governor recommends changing the Literacy Aid formula beginning in FY 2015. Under the new formula, funds would |
| be allocated based on reading growth and high school graduation rate rather than on reading growth and reading |
| proficiency. |
| Performance Measures: |
| While third grade reading proficiency is an important benchmark, this proposal seeks to provide greater balance in |
| promoting and rewarding students' continued growth and achievement at all grade levels. |
| 0 |
| (21) |
| (21) |
| (699) |
| (1,235) |
| (1,934) |
| Net Change |
| 0 |
| (21) |
| (21) |
| (699) |
| (1,235) |
| (1,934) |
| Clarification of Kindergarten Early Entrance Requirements - Revised |
| The Governor recommends the Department of Education clarify and provide criteria for school districts on the admissions |
| policies for children younger than 5 years old starting kindergarten. The criteria developed will help ensure the district's |
| policy is appropriate and ensures a students' success in kindergarten and subsequent progression to first grade the next |
| year. |
| Performance Measures: |
| Clarifying kindergarten enrollment policies will reduce the number of students enrolled in kindergarten prior to being |
| developmentally ready. As a result, fewer students will be held back for a second year of kindergarten. |
| (1,331) |
| (1,540) |
| (2,871) |
| (1,540) |
| (1,540) |
| (3,080) |
| Net Change |
| (1,331) |
| (1,540) |
| (2,871) |
| (1,540) |
| (1,540) |
| (3,080) |
| Amend Charter School Lease Aid - Revised |
| The Governor recommends amending the lease aid formula for charter schools. A clause would be added to change the |
| formula for schools leasing from governmental entities and affiliated building corporations that do not carry original debt on |
| the facility. In any facilities purchased or constructed with public funds, there would be no continued payment of public |
| funds that would create a profit. Instead, the formula would approximate costs to maintain the building and would create a |
| capital reserve fund for capital maintenance projects, resulting in a state cost-savings. |
| Performance Measures: |
| Amending the charter school lease aid formula will ensure that public funds will not create a profit for public or private |
| entities that did not support the purchase or construction of facilities used by charter schools. |
| 0 |
| (1,952) |
| (1,952) |
| (2,271) |
| (2,284) |
| (4,555) |
| Net Change |
| 0 |
| (1,952) |
| (1,952) |
| (2,271) |
| (2,284) |
| (4,555) |
| Post-Secondary Scholarships - Early Graduation - Revised |
| The Governor recommends repealing the Early Graduation Achievement Scholarship Program, which awards |
| scholarships of $2,500, $5,000, or $7,500 to early-graduating high school students. The scholarship amounts increase the |
| earlier the student graduates from their secondary institution. This proposal would result in a state cost-savings. |
| Performance Measures: |
| Ending the scholarship program will promote governmental efficiencies. The program has a low participation rate, and |
| MDE resources can be targeted at programs with higher demand and greater need. |
| (150) |
| (265) |
| (415) |
| (402) |
| (605) |
| (1,007) |
| Net Change |
| (150) |
| (265) |
| (415) |
| (402) |
| (605) |
| (1,007) |
| FY 14 |
| FY 15 |
| FY 14-15 |
| Biennium |
| FY 16 |
| FY 17 |
| FY 16-17 |
| Biennium |
| Career & Technical Education Levy Modification |
| The Governor recommends modifying the existing career and technical levy funding formula. Current law allows school |
| districts to levy for certain career and technical education program expenditures, including teacher salaries. An increasing |
| number of small districts are sharing the services of career and technical education teachers as a way to provide the |
| curriculum on a part-time basis. The current funding formula requires the district that holds the teacher contract levy 100 |
| percent of the salary expenditures. The new formula will allow the district that has the teacher through a contract |
| agreement to levy for their share of the expenditures. |
| Performance Measures: |
| The proposed changes to the Career & Technical levy formula increases funding equity for school districts that share |
| career & technical services. |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| MN Foundation for Student Organizations |
| The Governor recommends ensuring funding for the Minnesota Foundation for Student Organizations within the existing |
| student organizations' appropriations. The Minnesota Foundation for Student Organizations is tasked in statute to provide |
| oversight and direction for secondary and postsecondary student organizations, but is currently unfunded. This proposal |
| supports the agreement between the Foundation and student organizations that would redirect some of the organizations' |
| funds back to the Foundation. This proposal would also allow the Department of Education to direct funding for student |
| organizations to the Foundation in one single grant, rather than as eleven individual grants. |
| Performance Measures: |
| Funding the Foundation will enable it to fulfill its role to provide oversight and guidance. Providing a single grant for student |
| organization funding will promote efficiency. |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Commissioner Approval of Charter Facility Lease |
| The Governor recommends requiring charter school leases be approved by the Department of Education prior to |
| execution. The proposal would also require all leases to have an escape clause in the event that the charter's contract is |
| not renewed or terminated. This proposal would protect state funds from continuing to pay for a charter school's lease |
| agreement if the charter school were to close. |
| Performance Measures: |
| Requiring commissioner approval of charter school leases will prevent government resources from being spent |
| unnecessarily. State funds will be saved if a charter school's contract is terminated or not renewed prior to the end of its |
| lease obligation. |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Summer Food Replacement Aid Change |
| The Governor recommends simplifying the method of fund disbursement to summer food service sponsors. The current |
| method requires reimbursements to be made at different rates according to the type of meal served, such as breakfast, |
| lunch, or supplemental. This proposal would provide for reimbursements based on total meals served by each provider |
| from the end of the school year to the beginning of the following school year on a prorated basis. |
| Performance Measures: |
| Changing the reimbursement practice will simplify the way that providers are paid for food service, and will make the |
| reimbursement process more efficient |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Special Education Paperwork Reduction |
| The Governor recommends that the Department of Education develop model Individuals with Disabilities Education Act |
| (IDEA) paperwork that would be available free of charge to schools. The model paperwork would be provided through an |
| online system created and maintained by the Department of Education. Currently, many districts contract with outside |
| vendors to obtain IDEA paperwork for special needs students. However, many vendors profit from selling packages that |
| include forms not required by law, creating more work for teachers, greater costs for districts, and less transparency for |
| parents. IDEA paperwork offered by the Department of Education will streamline and simplify paperwork requirements as |
| well as provide cost-savings for local districts. |
| Performance Measures: |
| IDEA paperwork offered by MDE will streamline and simplify paperwork requirements as well as provide cost-savings for |
| local districts. |
| 1,500 |
| 263 |
| 1,763 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 1,500 |
| 263 |
| 1,763 |
| 0 |
| 0 |
| 0 |
| FY 14 |
| FY 15 |
| FY 14-15 |
| Biennium |
| FY 16 |
| FY 17 |
| FY 16-17 |
| Biennium |
| Education Shift Buyback - Revised |
| The Governor withdraws his recommendation to repay the school shift in the FY 2016-17 biennium. The shift will continue |
| to be repaid per M.S. 16A.152, subdivision 2. |
| Performance Measures: |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net All Change |
| Items |
| 79,183 |
| 274,290 |
| 353,473 |
| 322,814 |
| 638,470 |
| 315,656 |
| Net Change |
| 79,183 |
| 274,290 |
| 353,473 |
| 315,656 |
| 322,814 |
| 638,470 |