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General education revenue is the primary source of funding for public schools. These are the funds that support general operations and directly impact the classroom. As you can see, LILA receives significantly less per pupil funding than surrounding district schools.
ALL students deserve an adequately and equitably funded education no matter where they live or attend school.
The growing demands on the general education budget, coupled with unpredictable basic formula allowance increases and lack of levy revenue, impacts LILA's ability to offer a competitive wage. New applicants routinely reject offers, and seasoned professionals are regularly recruited to higher paying positions at district schools. The constant churn of teachers is not beneficial to students who need experienced and stable staffing.
We love our teachers, and they love LILA. They don't want to leave, but they can't afford to stay. This needs to change.
The chart below reflects the latest PELSB data available. It does not reflect a 7% salary increase for LILA teachers that resulted from a 4% increase to the Basic Formula Allowances by the 2023 Minnesota State Legislature coupled with LILA budget cuts.
I had the honor and privilege of working for LILA for seven years as a math teacher. Throughout that time, I formed great relationships with staff, students, and the community. Each year, in addition to teaching, I was taking every opportunity to supplement my income to provide for my family. After my sixth year of teaching, we were blessed with a second child. Even with my wife's full-time nursing income, I knew my seventh year would have to be my last. I had to make the difficult decision to go to a larger district school to afford daycare. I am proud to have served the LILA community, and wish that charter schools were better funded so they can keep staff that want to stay but need the added income.
As a public charter school, LILA receives the same basic general education tax revenue from the State of Minnesota as district schools. District schools, however, have the ability to secure additional per pupil funding by levying local taxpayers. This can occur through school board action or by referendum that requires voter approval. Charter schools, by law, are unable to levy local taxpayers. Furthermore, levy funds do not follow students from their resident district school to their charter school even though charter parents often vote 'YES' to local levies. This results in a significant funding disparity as illustrated in the chart below.
Chartered public schools do not receive equal Long-Term Facilities Maintenance Revenue.
THE IMPACT:
General education revenue is used for facility capital improvements, reducing the availability of funds that should be allocated to teaching and learning.
Repairs and improvements are deferred resulting in higher costs in the future – e.g. patching a parking lot vs. repaving; not replacing older HVAC with more energy efficient systems.
THE SOLUTION:
Equalize Long-Term Maintenance Revenue to match the per pupil funding amount that district public schools receive.
Statutory Reference: MN Statute 123B.595
THE ISSUE:
Chartered public schools receive unequal Extended Time Revenue. District public schools receive up to .2 additional per pupil general revenue. Charter schools, by law, can only receive 25% of the state average of extended time revenue generated by district schools.
THE IMPACT:
Students in need of learning recovery do not have access to the same comprehensive extended day and summer programming as district school students.
Staff recruitment for summer programming is challenging due to higher paying positions at district schools.
THE SOLUTION: Equalize Extended Time Revenue to match the funding amount that
district public schools receive. Statutory References: MN Statutes 126C.10 & 124E.20
THE ISSUE:
Chartered public schools do not receive Safe Schools Revenue.
THE IMPACT:
Safety and security needs are delayed or triaged to fit the available budget.
General education funds that should be allocated to teaching and learning are redirected to safety and security enhancements, staff training, school counselors, prevention programs, and mental health supports.
THE SOLUTION: Equalize Safe Schools Revenue to match the funding amount that district public schools receive.
Chartered public schools receive 90% of the lease cost or $1,314 per pupil unit, whichever is less. The lease aid formula has been static for over 10 years, while the cost of leasing an adequate facility continues to rise.
THE IMPACT:
• General education funds that should be allocated to teaching and learning are used to cover the 10+% gap.
THE SOLUTION:
Increase Lease Aid. Pay 100% of the lease or $1,314 per pupil unit,
whichever is lesser, and tie increases in Lease Aid to increases in the Basic Formula Allowance. Statutory References: MN Statutes 124E.26, 124E.22 & 124E.13
THE ISSUE:
Basic Formula Allowance increases have been irregular, unpredictable, and have not kept pace with rising costs, unfunded mandates, and growing expectations.
THE IMPACT:
• Like all chartered public schools, LILA relies solely on general education revenue for staff salaries, curriculum resources, and other operational needs while district public schools have the ability to levy taxpayers by board and voter approval to secure additional operating revenue.
• Funds that should be allocated to teaching and learning are redirected elsewhere. There are on-going and increasing demands on the general education budget to fill building lease aid, facility maintenance, Special Education, safety and security, and other funding gaps.
• The growing demands on the general education budget, coupled with unpredictable basic formula increases and lack of levy revenue, impacts our ability to offer a competitive wage. New applicants routinely reject offers, and seasoned professionals are regularly recruited to higher paying positions at district schools.
THE SOLUTION:
Increase the basic formula and index it to the rate of inflation to keep pace with rising costs.
