Mar 11, 2020

Chapter Forty-Five >>>>> Budget and Finance at the Minneapolis Public Schools


The information presented in this chapter is drawn from the relevant MPS website and from inquiries that I made in the course of conducting research on the school district.


 

………………………………………………………………………………………….

 

 

Minneapolis Public Schools Finance Division  >>>>>  Essential Information

 

Expenses

 

Salary                                    $365,063,160

Benefits                               $134,651,787

Contracted Services         $68,291,801

Supplies                                $29,201,511

Extended Time                   $16,145,243

Equipment                             $3,297,054

Miscellaneous                      $3,289,141

 

Total                                      $619,939,692

 

Revenue

 

General Fund                                    $285,883,008

Special Education                              $70,502,790

Referendum                                        $92,624,003

Compensatory Education               $49,030,472

Grants                                                    $67,301,521

Local Operating                                  $15,876,171

Referendum                     

Integration/                                         $15,443,114

Achievement                   

Q-Comp                                                   $9,447,432

Extended School Day                         $9,220,834

English Language Learner                $5,240,322

 

Total                                                      $620,569,697

 

 

 

 

 

 

Important Stages in the Fiscal Year

 

January                                February                 March                                April/May                June

 

Set                         Allocations           Complete school           Board                         Board votes

priorities;            to schools;            school and                        review;                                     votes on

begin                    schools                   department                     final                            final

planning              engage with         budgets                             revisions                  budget

                                communication

 

Revenue Types

 

General Fund  >>>>>                      from the State of Minnesota, for teachers, principals, and other staff

 

Special Education  >>>>>              $85 million (of $113 million necessary expenditure)

                                                                from district’s own resources

 

Compensatory  >>>>>                    free/reduced price lunches, from federal sources, calculated with

family income figures from October of previous academic year

 

State and Local Grants  >>>>>     funds from state government and local private sources, beyond per

pupil allotments

 

Funded Projects  >>>>>                 Title I federal funds;  spent with strict guidelines, allocated to schools

with 35% or more students on free/reduced price lunch

 

Achievement    >>>>>                    from state and federal funds, for strictly governed expenditures

and Inte                                                                                               meeting federal Every Student Succeeds Act (ESSA) and

State of Minnesota World’s Best Workforce (WBWF) mandates

 

Q-Comp  >>>>>                                 from State of Minnesota funds, for improvement of teacher, education

support professional, other classroom staff  effectiveness

 

Quality Compensation (Q-Comp) was originally conceived in the Tim Pawlenty gubernatorial administration to be a program for merit pay rewarding outstanding teachers but in time became a program for all teachers to improve effectiveness.

 

Extended Learning  >>>>>            for summer and after school programs, based on revenue from the

State of Minnesota, $704 per elgible student, plus and additional $250 per eligible English Language Learner (ELL) student

 

Budget by Functional Area

 

Elementary and Secondary                         $296,514,404

                Regular Instruction

Special Education Instruction                     $124,811,108

Pupil Support Services                                    $70,222,183

Instructional Support Services                     $44,192,228

Sites and Buildings                                           $37,879,831

District Support Services                                $31,477,215

Administration                                                   $19,793,261

Vocational Education Instruction                 $4,768,751

Fiscal/ Other Fixed Cost                                   $4,553,912

Community Education Services                                      $0

 

Total                                                                      $634,212,892

 

Budget by Functional Area          (Update, 14 January 2020)

 

Elementary and Secondary                         $296,920,441

                Regular Instruction

Special Education Instruction                     $123,239,319

Pupil Support Services                                    $70,659,457

Instructional Support Services                     $44,571,971

Sites and Buildings                                           $37,120,007

District Support Services                                $31,691,140

Administration                                                   $18,808,219

Vocational Education Instruction                 $4,878,956

Fiscal/ Other Fixed Cost                                   $4,553,912

Community Education Services                                      $0

 

Total                                                                      $632,457,421

 

 

$30 million increase from referendum dollars

 

Decrease in student enrollment

 

>>>>>                    competition from charter schools

                                fewer students applying for educational benefits

                                reduced Title I/compensatory funding

                                reduced live births, now and projected for the next five (5) years

 

The fund balance at present is just five percent (5%).  There is a need to rebuild the fund balance to at least 8% and up to 13% of all funds accessible at the Minneapolis Public Schools.  A fund balance at the level of 8% is that considered safe by professional public school funding organizations for meeting emergencies.

 

>>>>>    MPS FY 2018-2019  >>>>>              first balanced budget in many years

 

>>>>>    Must establish fiscal framework for rebuilding fund balance

 

>>>>>    Will continue to reduce expenses, with goal of reaching 8% of revenue for allocation to reserve fund by FY 2020-2021

 

 

FY 2020                 Minneapolis Aid              Levy                       Revenue

                                                         

                                     $12,268                        $4,147                       $16,115

 

Research Department, MN Human Resources

(651) 296-6753

 

MDE School Finance       (651) 582-8779

Tom Melcher                    

 

…………………………………………………………………………………………..

 

The Minneapolis Public Schools and other school districts are underfunded for

 

>>>>>    special education

>>>>>    ELL $5 million/$15 million

>>>>>    transportation

 

Costs in each of these areas are at least twice what the district must dedicate to maintain the funding levels needed to meet student needs. 

 

One of the goals of those who have generated the MPS Comprehensive District Design is to capture resources currently expended on transportation to fund the academic program.  Transportation costs at the Minneapolis Public Schools run will run as high as $44,000,000 for academic year 2019-2020,  a level far exceeding such expenditures at many other districts, some of which have student populations significantly larger than the public schools of Minneapolis.  One such district spends only $27,000,000 for transportation, by contrast with that $44 million figure for the Minneapolis Public Schools. 

                               

Public school districts are chronically underfunded in key areas.  Per pupil allotment from the State of Minnesota for the Minneapolis Public Schools is $6,312.  Such allotments are generally equitable in Minnesota;  nevertheless, affluent districts manage to attract private sources of funding that result in inequities:  the public Schools of Edina, for example spend an approximate  total of $12,000 per student, whereas the comparable figure for Minneapolis Public Schools is in the $9,000 t0 $10,000 range.

 

……………………………………………………………………………………

 

Key Information

 

MPS is currently planning its budget for the next school year. The district’s fiscal year runs from July 1 to June 30, and the Budget is an ongoing process.

 

The Superintendent and his Cabinet conduct meetings to finalize the District priorities and determine how the budget allocations will support MPS’s four core priorities: literacy, equity, social and emotional learning, and student support systems.  It is important to complete the process by early April in order to get teacher positions posted in a timely manner to recruit the most qualified teachers before they sign contracts with other districts. 

 

State law requires that the School Board approve the District budget prior to June 30th.

 

January  >>>>>                   Set Priorities and Begin Budget Planning

 

February  >>>>>                Provide Allocations to Schools;  Schools Engage with Their Communities

 

March  >>>>>                     Complete All School & Department Budgets

 

April & May  >>>>>          Board Reviews Budget and Final Revisions Made

 

June  >>>>>                         Board Votes on Final Budget

 

Factors Affecting the Budget

 

Widespread reductions not necessary; conservative investments to meet academic and financial sustainability goals recommended

 

Possible per pupil or special project increases from the legislature  >>>>>

 

>>>>>      This is a funding year for our legislature.

>>>>>       School districts typically expect some per pupil increase.

>>>>>       Increases for more than 15 years have not met inflation – typically 1%-2%.

>>>>>       MPS focusing on increasing special education funding from the legislature.

 

>>>>>       $30 million increase in referendum dollars

 

Per promises to stakeholders, dollars targeted for:

 

>>>>>       MPS core priorities of equity, literacy, social and emotional competence, and student support services

>>>>>      Creating a sustainable compensation structure, including equitable pay for lowest paid employees

>>>>>       Ensuring compliance with laws across the district

>>>>>       A comprehensive district design to increase both academic and enrollment long-term

Decreased student enrollment

 

Student enrollment is down across the district and across urban districts nationwide.

 

Several reasons:

 

>>>>>       Competition from charter schools.

>>>>>       Fewer students applying for Educational Benefits. MPS then receives fewer dollars that follow students living in poverty – Title I and Compensatory dollars.

>>>>>       Reduced live births now and over the next five years.

 

Need to rebuild fund balance

 

>>>>>       MPS started FY 2018-19 with the first balanced budget in many years.

>>>>>       Have begun to establish the fiscal framework to rebuild the fund balance.

>>>>>       Expenses will continue to be reduced as possible.

>>>>>       Commitment to reach board-approved Fund Balance level (8% of operating expenses) by SY20-21.

 

……………………………………………………………………………………………………………..      

 

Revenue directed for use based on designated purpose according to state or federal government

 

Projected Revenue

 

General Fund                                    >>>>>                    $285,883,008

Special Education                            >>>>>                      $70,502,790

Referendum                                      >>>>>                      $92,624,033

Compensatory Education             >>>>>                      $49,030,472

Grants                                                  >>>>>                      $67,301,521

Local Operating Referendum     >>>>>                      $67,301,521 

Integration & Achievement        >>>>>                    $15,443,114

Q Comp                                                >>>>>                      $9,447,432

Extended School Day                     >>>>>                      $9,220,834

English Language Learners          >>>>>                      $5,240,322

Total                                                      >>>>>                $620,569,697

 

Additional details on revenue types:


 

  • The General Fund is funded by the state of Minnesota and pays for everything from classroom teachers to secretaries to principals to custodians.
     
  • Special Education dollars are used to assist with the additional costs of providing required services to students with disabilities.   MPS spends about $113 million dollars for special education services, $85 million of which we fund ourselves.
     
  • Referendum dollars, approved by voters in November 2018, are used for managing class sizes and providing supportive services and activities to students.
     
  • Compensatory dollars are generated for students eligible for free and reduced-price lunch. The dollars are allocated directly to schools based on the students enrolled on the Oct. 1 child count from the previous year.  The formula for Compensatory dollars is determined by the State Legislature.
     
  • State and local grants have specific unique requirements based on the grant.
     
  • Funded projects include federal programs such as Title I, which is allocated to schools with free and reduced lunch counts greater than 35%. This Federally-funded program has strict rules on how the dollars can be spent. 
     
  • The purpose of the Achievement and Integration program is to pursue racial and economic integration, increase student achievement, create equitable educational opportunities, and reduce academic disparities based on students' diverse racial, ethnic, and economic backgrounds in MPS.
     
  • Q Comp dollars are focused on supporting the effectiveness of teachers, related service professionals, and education support professionals (ESPs) in order to increase the achievement of all students. 
     
  • Extended Learning revenue can be used for extended day, week or year programs such as summer school and after-school programs
     
  • English Learners dollars are received based on the number of students learning English their first seven years in the district. MPS acknowledges that this amount is not sufficient to provide services to the EL students so we are committed to using additional dollars for the English Learners program. Revenue is $704 per eligible student, and there is also a concentration factor of $250 per EL concentration pupil.
     
    ……………………………………………………………………………………………..
     
    Projected Expenses
     
    Salary                                    >>>>>                    $365,063,160
    Benefits                               >>>>>                    $134,651,787
    Contracted Services       >>>>>                      $68,291,801
    Supplies                              >>>>>                      $29,201,511
    Extended Time                 >>>>>                      $16,145,243
    Equipment                         >>>>>                      $3,977,054 
    Miscellaneous                  >>>>>                      $3,289,141
    Total                                      >>>>>                 $620,569,697
     
     
    ……………………………………………………………………………………………..
     
    How does MPS decide how much each school receives in funding?
     
    Each school in Minneapolis is unique and its funding is, too. At the same time, MPS reviews the same factors for each school to determine what dollars should be allotted to that school. Here's how we determine budget allocations for each school.
     
    1. Predictable Staffing
     
    New school staffing model provides consistent teaching and learning experiences in every school across the city  
     
    Predictable staffing positions for SY2020-2021 include:
     
    >>>>>       Principals/Assistant Principals
    >>>>>       Secretaries 
    >>>>>       Office Assistants (middle and high schools)
    >>>>>       Academic Specialists  
    >>>>>       Classroom Teachers/Prep 
    >>>>>       Health Service Assistants 
    >>>>>       Counselors 
    >>>>>       Security Monitors (middle and high schools)
    >>>>>       Associate Educators 
    >>>>>       Social Workers 
    >>>>>       School Custodians
     
    Future Predictable Staffing Investments
     
    >>>>>       Career and Technical Education Staff 
    >>>>>       World Language Staff 
    >>>>>       Staff to support Comprehensive District Design
     
    2. Projected Enrollment
     
    We estimate the projected number of students coming to each school based on historical data and any emerging issues. 
     
    3. Title 1 and Compensatory Dollars
     
    Available compensatory dollars are based on the number of students receiving free and reduced-price lunches. Title I dollars also are allocated based on free and reduced lunch counts in the schools. 
     
    4. Support for Special Education
     
    Special Education sites are given the dollars to staff each Special Education citywide classroom with a teacher, and Special Education Assistants along with support from Social Workers.
     
    5. English Language Learner Program Funding and Integration Funding
     
    English Learner dollars are given to schools based on the number of students learning English as their second or sometimes third language. The current ratio is 1 English Learner teacher to 50 students. These dollars must be used to fund teachers.
     
    6. Integration Dollars
     
    Integration Dollars currently go out to schools with an AVID program. Other funding is designated for other special programming, such as for magnet programs, advanced academic programs like IB or Concurrent Enrollment, special time adjustments, etc.
     
    What is Predictable Staffing?
     
    Predictable Staffing is a new school staffing model provides consistent teaching and learning experiences in every school across the city regardless of student population, representing the required basic-level staffing families can expect at every school for consistent teaching and learning at every school across the district. It consists of 1) Foundational Staffing (implemented in Fall 2019), District-Level Staffing Investments (implemented in Fall 2020), and School-Specific Staffing Investments (implemented in Fall 2021).
     
    What funding decisions are made at the school level?
     
    Site Councils are involved in all aspects of a school’s budget, including:
     
    Principals work with  Site Councils to determine and communicate school needs
     
    Site Councils can influence how some school funding is used in the school
     
    Compensatory and Title I dollars also have some optional uses if in compliance with law
     
    Education funding is a complex process with revenues coming from multiple sources, some designated for specific uses. Education funding in urban districts becomes even more complex because of the number of students, schools and families involved. Minneapolis Public Schools has nearly 36,000 students across the city and more than 70 schools or buildings.

 


How does MPS get its operating dollars?


 


Funding comes to MPS from three different sources:


 

State of Minnesota         Federal Government                     Local and Other

General state aid             Flows through the state               Local taxpayers and other

Amount per pupil                                                                            Property taxes          

Based on grade level                                                                    

Other sources of revenue (grants, ren

reduced price lunch

partial reimbursement for

services such as special educati                                          Funding to Schools

 

What funding decisions are made at the school level?

 

Site Councils are involved in all aspects of a school’s budget:

 

>>>>>  Principals work with Site Councils to determine and communicate school needs.

 

>>>>>  Site Councils can influence how some school funding is used in the schools.

 

>>>>>  Compensatory and Title I funding dollars also have some optional uses if in compliance with the law.

 

 

……………………………………………………………………………………

 

 

>>>>>    Site Councils and principals can work together on the front end to identify key funding or programming needs for the schools, so that principals can communicate those needs to the school district.


>>>>>    Once the schools are notified of the school’s actual allotment, principals will look again to the Site Council for input on how some of those dollars are spent.


>>>>>     While Compensatory and Title I dollars are designated for specific uses, choices for how to use those dollars may be possible.


>>>>>  For information on getting involved in your school’s Site Council, please go to your school’s website or principal.

 

………………………………………………………………………………

 

The relevant MPS website has a bevy of additional information, as follows:

 

Explore the Budget

 

Department Categories

 

Elementary Schools

Non-Schools

Middle & High Schools

Special Sites

Alternative & Non-Public Schools

 

Fund Name

 

General Fund

Special Education Fund

Referendum Fund

Compensatory Education Fund

Federal Pass Through

Funded Programs

                                                                               

Expense Types

 

Salaries

Benefits

Contracted Services

Supplies

Extended Time

Miscellaneous

 

Expenditures

 

Elementary and Secondary Regular Instruction                 $284,197,315

Special Education instruction                                                     $121,398,767

Pupil Support Services                                                                    $69,533,604

Instructional Support Services                                                     $43,125,859

Sites & Buildings                                                                               $35,749,024

District Support Services                                                                $31,895,724

Administration                                                                                   $19,304,248

Vocational Education instruction                                                 $4,588,182

Fiscal and Other Fixed Cost Programs                                                           $596,810

Null                                                                                                       ­­­­   ----------------

Community Education and Services                                           ----------------

 

Total                                                                                      $610,392,534

 

No comments:

Post a Comment