Cliff Buchan
News Editor

It may have been late in coming, but a state budget settlement reached last week will mean new state aid for Forest Lake Area Schools. Better late than never, school officials were saying.

The budget deal struck last week will result in K-12 funding increases of $1.6 million in the 2005-2006 school year and $1.8 million in the 2006-2007 school year. Thatís according to preliminary estimates coming from St. Paul late last week, said Larry Martini, director of business affairs for ISD 831.

ìThis is absolutely going to be helpful,î Martini said.

The infusion of new state aid will likely result in school board deliberations to analyze current budgets and make plans for a proposed excess operating levy ballot question in November, Martini said.

School Board President Bill Bresin said it is likely a special meeting of the school board will be called the last week of July to discuss the topics. That could lead to a formal school board decision on the budget when it meets in regular session on Thursday, Aug. 1.

The budget settlement comes as Forest Lake school officials begin the new fiscal year with a $2 million budget adjustment model on the books.

The budget, in order to keep expenditures in line with anticipated revenues, includes $1.5 million in expense cuts and a one-time $500,000 draw down on the districtís undesignated fund balance.

The school board, in anticipation of proposed new state aid, this spring OKís a plan to utilize $500,000 of new aid for add backs in the 2005-2006 school year. The plan includes restoring funding for classroom supplies and adding back seven of the 14 teachers (13 classroom positions) that were eliminated under the budget adjustment model.

Now, with new state aid to come in, Bresin said a full restoration of the cuts for 2005-2006 year will receive school board consideration.

ìItís good for our district,î Bresin said of the state K-12 education plan that pumps $800 million to public education.

ìIím glad they finally got it done and put some in for education,î he added. ìItís going to help us for the next two years.î

As of last Thursday, Martini said local school officials continue to wait for final aid tabulations from the state Department of Education.

Martini said the $1.6 million and $1.8 million estimates in the two fiscal years appear to be good numbers for what Forest Lake can expect.

The state increases for K-12 funding is 4 percent for each year.

The addition of $3.4 million over two years is important, but Martini cautioned that it is not a cure-all for the local funding problems.

ìWeíve had three years of no new aid before this,î Martini said. And with no new aid have come cuts, he said.

Over the past three school years ISD 831 has made $4.3 million in spending cuts and utilized the $500,000 draw down from the undesignated fund balance. He said the school board budget deliberations will have to look in a number of directions.

ìWeíve got so many other areas that it is going to need more discussion,î he said.

Along with cuts of teachers, he said the board will likely look at custodians, aides and other staff positions that have been cut in the past three years.

ìThatís what (the school board) have to look at,î Bresin said. ìWhere do we want to go with this.î

The district has made preliminary decisions to seek renewal of its existing excess operating levy that is on the books for two more years and ask voters to approve additional local property tax revenue to support public schools.

Levy questions for the Nov. 8 ballot have yet to be determined.

Under the plan approved last week, Martini said local districts can expect a small state aid shift that will put a small burden on local property taxes.
What that figure may be is something to be determined in the days ahead, he said.

Under a plan proposed by Gov. Pawlenty this spring, the shift would have resulted in a shift of between $300,000 and $400,000 a year to the local property tax base, Martini said.

While the local property tax total dollar hit may be up slightly, Martini said the actual tax impact for school funding on individual parcels is not expected to increase. Thatís because the district continues to see a steady growth in the property valuation base that will absorb the tax from state sources to property taxes, he said.

The tax base continues to grow by about 15 percent a year in ISD 831, Martini said.

There was also relief in the camp of Forest Lake teachers following the state budget settlement. The Forest Lake Education Association is the last major employee group still without a new two-year contract.

ìThis is good news,î said Jim Lindstrom, chief negotiator for FLEA. ìIím saying it (state settlement) totally makes up for the years we went without new state aid and even cost of living increases. We know where we are. It stops the bleeding.î

The news on the state budget should mean the district and FLEA can resume bargaining on a new contract. ìWeíll try to get back to the bargaining table pretty quick,î Lindstrom said.

Lindstrom said FLEA will continue to look at new pay-for-performance funding options, but doubts any such plan to access the so called Q Comp funding will be possible for this school year.

From a philosophical point, Lindstrom says he hopes school districts look at Q Comp funding as a means to improve education and not as a way to acquire additional state funding. ìDo it for the right reason, not just for funding,î he said.

In fact, he said, FLEA and the district are far ahead of many districts in exploring ways to award teachers for performance. ìWeíve agreed that we will work on that,î he said.

The district, with FLEAís participation, has approved a plan to change how teachers are evaluated. Under the new plan now in use, all teacher evaluations are done on a consistent basis for all buildings, secondary and elementary.

Superintendent Lynn Steenblock was out of town last week and could not be reached for comment.

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Forest Lake Times
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Forest Lake, MN 55025
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