Brainerd School District Deals with Uncertain State Funding

by Jenny Gunsbury

The Minnesota Management and Budget office reports general fund revenues to be $131 million less than predicted through the end of 2008. That may translate to fewer dollars trickling down to the local level for school funding. Steve Lund, the new business manager for the Brainerd Public School District, faces staggering challenges as he establishes the budget for the upcoming year.

"We're faced with a lot of challenges right now," says Lund. "The district really had to reinvent itself after the failed referendum in 2007, making this a transitional year for us. Working off of previous budgets isn't necessarily relevant as we go forward because of all the changes that were made. And due to uncertain state funding, decisions we make now will need to be sustainable for several years out."

Lund expressed that there are several guiding principles that administrators keep in mind as decisions are made. "We are really trying to accomplish several goals. The first is to deliver the best possible learning experience to our students with the resources we have. Second, is to provide a supportive working environment for our staff. Third, we want to be available and open to the community. It's about bringing those three elements together."

Administration has until June 30, 2009 to submit their budget to the school board. Several factors are yet unknown, making the process difficult. "There are three different budget scenarios at the state level - a plan from Governor Pawlenty, one from the House and another from the Senate. Depending on which one moves forward, that will have a direct impact on what our district can plan for and expect in revenue," says Lund.

"Right now, the best case scenario is that funding will remain stable," says Lund, "even though we know expenses will inevitably increase. It's a matter of making priorities on the expense side to meet our revenue and doing more with less." He explains that enrollment numbers have a large impact on expenses. "We know that the kindergarten class next fall is expected to be very large. That's a good thing, but we have to plan for it." As a result, Superintendent Steve Razidlo will be making K-4 level staffing recommendations to the school board at the April meeting.

If Governor Pawlenty's plan is implemented, there may even be an additional $424 million appropriated to K-12 education statewide. One of his recommendations is to expand funding for Q-Comp, a program that offers teachers professional development and an alternative pay scale based on performance. Since Brainerd already participates in Q-Comp, it would only receive a minor increase. Governor Pawlenty also proposes an initiative called "Pay for Performance" which would reward districts with additional funding based on student scores on state-mandated math and reading tests. Brainerd students traditionally score well on these tests, but Lund hesitates to budget an amount and not have it come to fruition.

If those things were to happen, the Brainerd district has some ideas on how to use the money. "We're trying to prioritize as best we can," Lund says, "and reducing class sizes is one of our main goals." Another top priority is to provide a full range of activities so students get a well-rounded educational experience. Those include academic, artistic, and musical organizations, as well as sports.

In the meantime, the district continues to look at creative sources of income. "We are very aggressive in pursuing grant opportunities," explains Lund. "But even those have become more competitive. There's a bigger pool of applicants and the available grant money is shrinking." He also noted that the district enjoys a good relationship with the Brainerd School Foundation, another potential source of assistance.

Lund discussed the Federal stimulus package, too. "We know that those funds will flow through Title I and IDEIA (Individuals with Disabilities Educational Improvement Act) but we don't know how much or when that money will be coming. It will only be a one-time source so it's not a long term solution." The funding also comes with numerous stipulations. "If we get it, we need to spend it within 18 months and there are very specific and highly regulated parameters for its use," says Lund. The district hopes to receive word about this funding in the next 60 days.

As the district plans around an uncertain financial future, one fact is known - the current operating levy of $199 per student will end with the 2011-2012 school year. "At this point, there are no definite plans to go back to the community for another levy. In 2007, we learned that $986 per student was not the right amount to ask for. It's important that we show the community that we can control expenses first. Then maybe we can go back to see if they can help maintain what we have now or even bring back some of the things we've lost," says Lund.

School funding continues to be debated at the legislature. The Brainerd Public School District is doing its best to plan for the future while responsibly managing expenses to best serve students, staff, and community.