CCAgenda_03Feb12 - Laserfiche WebLink

Home Browse Search

;~ E-~2 Edr~~a~io~t • The E-12 Education budget provides state aid to school districts for elementary and secondary schools, as well as funding for early childhood education, child care and community-based education and operating funds for the Department of Education, the State Residential Academies for the Blind and the Deaf, and the Perpich Center for Arts Education. E-12 Education is financed through a combination of state aid, property taxes, federal aid, and local non- tax receipts. Like most states, federal funds supply only a relatively small portion of the money coming to schools in Minnesota. -:: E-'12 Education Funding (~ in mill" ) Percent FY 2002-03 FY 2004-05 Chanae General Fund 10,725 12,582 17% Aid Payment Change (445) (183) n.a. Property Tax Recognition Shift (174) State Spending The Governor's general fund budget for E-12 education in FY 2004-05 totals $12.6 billion - a 17 percent increase over FY 2002-03. This increase reflects approximately $1 billion related to the property tax reform enacted in 2001 and implemented in FY 2003. The 2002 legislature also changed the payment schedule for school aids from 90/10 to 83/17, saving $445 million on a one-time basis. The Governor's recommendation also includes $357 million in one-time changes to the school aid State and Local Spending (Revenue) per Student State funding is only part of the picture for schools, however. Revenue per student including state and local funds--is often viewed as more relevant, as it removes the effect of shifts between state and local sources (such as property tax reform), eliminates distortion due to payment shifts (such as the 2003 and 2004 payment changes), and also controls for enrollment changes. payment schedule from 83/17.to 80/20 (saving $183 million) and the timing of the recognition of property tax levies (saving $174 million).. While these adjustments provide the state with. one-time savings, they do not affect the actual revenue that school districts receive, and. so are used to mitigate the actual impact of the budget shortfall on core education activities. Revenue Per Student, FY 2002-2007 Fiscal Year Total Operating Revenue per Student State + Local Levlss Annual Percent Change 2002 $7,144 2.6% -2003 $7,633 6.8% 2004-Goo's Rec. $7,799 2.2°~ 2005-Gov's Rec. $7,900 1.3% 2006-Gov's Rea $7,932 0.4°k 2007-Gov's Rec. $8,008 0.9% As the table indicates, the Governor's recommendation for FY 2004-05 increases the revenue per student • compared to FY 2003. On a statewide basis, revenue per student will grow from $7,633 in FY 2003 to $7,799 in FY 2004, a 2.2 percent increase. The impact on individual districts will vary, depending on factors such as passage of referenda, tax base changes and program utilization. Governor's 2004-05 Budget 7