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Public school funding system a ‘disaster’ PDF Print
Wednesday, 26 March 2008
Matt Entenza
John Fitzgerald
Guest Columnists


Most suburban Minnesota school superintendents say the way schools are funded is a disaster and is ruining the quality of education.

 “There is a crisis in public education and it is significant,” one superintendent wrote. “Minnesota has decided to abandon its support for public education.”

 In December, Minnesota 2020 asked superintendents from across the state about school funding; 177 responded; 14 percent of them were from the suburbs. The results were printed in “A Chilling Call to St. Paul: School Superintendents Speak Out About Minnesota’s Failed Funding System.” The report is available at www.mn2020.org.

The findings from suburban districts were particularly bleak:

•96 percent of suburban school districts said state underfunding has forced them to ask voters to raise property taxes just to keep schools open. This drives home the point: Schools cannot stay afloat using only state money.

•Every suburban superintendent agreed with this statement: The way schools are funded is bad for education.

•83 percent agreed that if things don’t change, education will get worse. Less than 1 percent said education will get better if funding remains the same.

•83 percent of suburban districts that didn’t ask for a levy increase in 2007 will ask for one within three years. Again, schools cannot survive on state money alone.

•An amazing 11 percent of suburban district budgets come from voter-approved property tax levies, which means losing a levy election is a disaster.

Most superintendents stay quiet about state funding and property tax levy elections to avoid controversy with their school boards and within their communities. Therefore, this study guaranteed the superintendents anonymity in exchange for their honest opinions.

“The current use of property taxes to help fund education is not working,” one suburban superintendent said. “I feel the property poor districts have a much more difficult time funding local education. We can only do so many bake sales and ask the local Lions Clubs for donation for so long.”

In 2001, Minnesota lawmakers adopted a plan in which the state would pay almost all K-12 education costs. Sadly, the state hasn’t kept its promise.

Under Gov. Tim Pawlenty, school investment has dropped an inflation-adjusted 4.4 percent statewide, forcing school districts to rely on local property taxes to pay for basic needs.

In 2001, the average per-student levy was $666. That number rose to an inflation-adjusted $796 in 2006.

Districts with lower tax bases have to fight for every nickel and dime. That creates a system where some districts can offer programs that enhance education while others lay off teachers and cut back successful initiatives such as early childhood education, world language and programs for gifted students.

The problem doesn’t end at the school doors. Levy ballot questions often pit one community member against the other.

Often one side will vilify the other. Some elections are influenced by outside agitators who enhance divisions in the community to defeat the levy request. Some communities require years to heal from a divisive school levy election.

“Referendums are a horrible way to fund schools,” one superintendent wrote. “They divide communities. ‘Vote no’ people need to trash the school to get their point across. The state needs to step up and raise enough revenue to properly fund schools.”

The legislature is currently working to reform the education funding formula. Unfortunately, tinkering with the system isn’t enough. School districts need money now.

Faced with an education funding crisis, Pawlenty has adhered to his “no new taxes” pledge and threatens to brandish his silly “veto pen.” His intransigence is unacceptable.

We call state public policy leaders to make the needed investments in schools, roll back the onerous property tax levies, and relieve the financial burden that almost every superintendent says is ruining the quality of education.

It’s time to end the destructive cycle of needless teacher layoffs, program cuts and larger class sizes.

The superintendents send a chilling call to St. Paul.

Is anyone listening?

Matt Entenza is the founder and chair of Minnesota 2020.  He can be reached at 651-917-1026 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

John Fitzgerald is a fellow at Minnesota 2020, a non-partisan public policy think tank. He can be reached at 651-379-9384 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it



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