North Dakota Commission on Education Improvement
Commission Meeting Minutes
March 1, 2006
Roughrider Room - State Capitol
The second meeting of the North Dakota Commission on Education Improvement was called to order at 10 a.m. by the commission's chair, Lt. Gov. Jack Dalrymple.
Commission members in attendance included Jack Dalrymple, Warren Larson, Paul Stremick, Martin Schock, Jon Martinson, Mark Lemer, Doug Johnson, Tim Flakoll, Wayne Sanstead, David O'Connell, Rae Ann Kelsch and David Monson. Gloria Lokken attended as a designee for Joe Westby.
There were no additions or deletions to the minutes. Sen. David O'Connell made a motion to approve the minutes and Sen. Tim Flakoll seconded the motion. The motion was carried and the minutes were approved.
The matter of expenses for commission members to attend meetings was addressed by Lt. Gov. Dalrymple and expense forms were distributed to those who needed them.
Lt. Gov. Dalrymple proposed that an executive summary highlighting key decisions and topics of discussion be written following each commission meeting and be forwarded by commission members to interested constituents and organizations, as well as posted to the Governor's Web site. The commission agreed and added that the summary be distributed to Legislative leadership, members of the interim education finance committee, standing committee members for the House and Senate education committees, and members of the education subsections of the appropriations committees.
Warren Larson, Paul Stremick, Martin Schock and Mark Lemer - school representatives on the commission - presented their suggestions for a new framework for the formula used to fund the state's K-12 schools. The new approach provided a starting point for crafting a new education funding formula that addresses equity and adequacy among North Dakota's school districts.
The goals of the framework are to:
- Use the availability of at least $60 million in new funding as an opportunity to address the inadequacies and inequities of the current funding system.
- Provide for the funding of an adequate education for all children in public schools.
- Provide equitable distribution of resources among public school districts.
- Accomplish this task to the benefit of all public school students and school districts, and to the detriment of none.
- Ensure kids win!
The funding proposal covered legislative appropriation, the distribution formula, per pupil payment, the mill deduct, equalization payment, "in lieu of tax" and other payments, weighting factors, sparsity factor, teacher compensation, tuition apportionment, special education, English language learners, career and technical education, and transportation.
Paul Stremick reviewed the details of the proposed funding philosophy and commission members discussed the individual categories. Equalization payments were discussed in greater detail. Sen. David O'Connell asked about property taxes and how tax exempt property would be valued. Many questions were raised, but for purposes of this meeting, they were tabled for future discussion. Members agreed that rewriting the equalization payment component of the formula is a work in progress and will take some time to complete. The plaintiff schools realize that a new formula may not be in effect until 2009.
Rep. David Monson and Sen. David O'Connell inquired about what all would be included in the "In Lieu of Tax" and Other Payments category, including summer school and migrant school, and whether or not corporate donations and foundation contributions would be included. Paul Stremick responded that those details have not yet been determined, but that all sources of income would be considered as part of the comprehensive funding formula.
Tuition apportionment was discussed as part of the proposed funding system philosophy. Rep. David Monson mentioned that he thought the group had decided at a previous meeting not to include tuition apportionment. Mark Lemer clarified that tuition apportionment would not be included in the additional $60 million proposed by Gov. Hoeven, but that it needed to be factored into the funding formula. Lt. Gov. Dalrymple suggested leaving tuition apportionment out of the discussion until the commission gets a better handle on how best to incorporate it.
Sen. Tim Flakoll proposed that the commission request advice from the Attorney General regarding the constitutionality of any proposed changes in distributions from the tuition apportionment fund. The commission agreed to seek such advice.
Paul Stremick concluded his remarks by summarizing that everything is included in the proposed comprehensive funding formula. No exceptions will be allowed because exceptions benefit certain school districts over others.
Some members brought up that transportation should not be included in the comprehensive formula because it is an auxiliary service not related to education, therefore justifying the exception. Sen. Tim Flakoll said that the lawsuit is based on what the state is required to do constitutionally and transportation is not mandated in the constitution.
Rep. Rae Ann Kelsch asked how the proposed formula would handle the consolidation of small schools. Paul Stremick responded that such a discussion was beyond the funding proposal and that if consolidations were attached to the formula changes, it would negatively impact the proposal. Mark Lemer added that the proposed formula would neither encourage nor discourage consolidations, but would address the needs of students in small schools. Rep. Kelsch stated that she believes consolidations should be included in the discussions.
Lt. Gov. Dalrymple stated that overall, the proposal is outstanding and that the commission has been talking in greater detail about specific funding items than ever before. Other commission members had similar reactions to the funding proposal presented by the school representatives, calling their ideas creative and innovative. Everyone agreed that they appreciated the ability to sit down and discuss these issues together rather than having North Dakota's Supreme Court mandating their actions like in other states, including Wyoming.
Paul Stremick added that input into the proposed funding changes came from many people, not just the plaintiff districts. All school districts had an opportunity to provide input. Sen. Tim Flakoll asked if all plaintiff school districts, and not just those represented on the commission, agreed with the proposed funding formula as a starting point and Paul Stremick said yes.
Sen. David O'Connell brought up the question of legislation as the commission moves forward with its work. Lt. Gov. Dalrymple responded that the Governor has committed at least $60 million for K-12 education in his next budget and a good portion of that funding would address equity. The commission will present its recommendations to the interim education committee in September and work with the Legislature in preparation for the 2007 Legislative Session. Commission members will present a complete package; votes will not be taken on individual points, only the total package.
The commission broke for lunch at 11:50 a.m. and reconvened at 1:15 p.m.
Commission members discussed incentives for structural changes and the possibility of a program that would provide significant subsidies for capital construction, or even full state funding for school facilities. Tom Decker with the Department of Public Instruction provided a history of North Dakota's current capital improvement incentives program, which includes a low interest loan based on the revenue of each individual school. It was stated that such incentives can serve as rewards for the consolidation of schools. The group decided to research the idea more as part of a subcommittee. It was noted that the current loan program has no funding available at this time.
Commission members discussed Joint Powers Agreements in the state and the possible role such agreements could play in addressing adequacy among North Dakota's school districts. Tom Decker provided an overview of North Dakota's JPAs and the services they provide schools across the state.
Rep. Rae Ann Kelsch asked how JPAs would fit into the proposed funding changes to address equity when participation in JPAs is voluntary. The commission discussed the role of JPAs in addressing adequacy and equity among North Dakota's school districts and whether or not they should be supported by the commission.
The question was raised about how much money would be needed to support JPAs and how much authority should be given to the governing boards. Lt. Gov. Dalrymple stressed that it might be premature to give JPAs too much money and authority until they are more established and the funding formula is more defined.
The consensus among the group was that more information was needed regarding specific services provided by JPAs, direct benefits to the students and cost efficiencies to the participating schools. Discussion continued as to whether or not JPAs should be a part of the funding formula proposal. The JPA governing boards are drafting their own proposal for more funding and authority and should have it completed to present to the legislative leadership in April. The commission will review the proposal and determine whether or not to support it.
Subcommittees were established among commission members to address in more detail specific topics outlined in the funding proposal for presentation and discussion at the next meeting, scheduled for April 5 at the Leidal Education Center, 207 Main Avenue West in West Fargo.
The subcommittees will cover the following topics and include the following members:
- Main formula - equalization payment
- Mark Lemer, coordinator
- Tim Flakoll
- David Monson
- Joe Westby
- Doug Johnson
- Paul Stremick
- Special education - English language learners
- Warren Larson, coordinator
- Jon Martinson
- Mark Lemer
- Tim Flakoll
- Rae Ann Kelsch
- Weighting factors - sparsity factor - career and technical education
- Warren Larson, coordinator
- Rae Ann Kelsch
- Wayne Sanstead
- Doug Johnson
- Martin Schock
- Jon Martinson
- David O'Connell
- Joint Powers Agreements - capital construction - transportation
- Jon Martinson, coordinator
- Rae Ann Kelsch
- Warren Larson
- David O'Connell
- David Monson
- Wayne Sanstead
Subcommittees were charged with meeting throughout the month of March and making as much progress as possible on their specific topics prior to the commission's next meeting, April 5. Subcommittee reports will be provided by the coordinators at the next meeting.
The commission's next four meeting dates and locations were scheduled:
- April 5 - West Fargo
- May 3 - Williston
- June 8 - Bismarck
- July 6 - Minot
The meeting was adjourned by Lt. Gov. Dalrymple at 2:55 p.m.
