>> Eric: IT'S BEEN AN UNPRECEDENTED SESSION AND LAWMAKERS ARE NAVIGATING THEIR RESPECTIVE BUDGETS WITH JUST TEN DAYS LEFT IN THE REGULAR SESSION.

ONE BUDGET AREA STILL HAS LOTS OF QUESTION MARKS, IT'S EDUCATION.

AND JOINING US OW IS THE HOUSE D.F.L.

EDUCATION FINANCE COCHAIR, REPRESENTATIVE CHERYL YOUAKIM AND WITH HER IS THE REPUBLICAN CO-VICE CHAIR, REPRESENTATIVE BEN BAKEBERG.

WELCOME TO YOU BOTH.

THERE WAS A HUMONGOUS AMOUNT OF K12 MONEY, E12 MONEY IN THE LAST BIENNIUM.

WHERE'D THAT MONEY GO?

PEOPLE ARE PRESSING THE PANIC BUTTON AGAIN AFTER ALL THIS MONEY WAS APPROVED.

>> WELL, IT WENT INTO A LOT OF GOOD PROGRAMS.

WE HAVE BEEN UNDERFUNDED FOR ABOUT 20 YEARS AND NOT KEPT UP TO INFLATION FOR THOSE YEARS WAS A 0% INCREASE.

SO COMPOUNDING INCREASE PUT IT INTO A HOLE THAT WE FILLED ABOUT A THIRD WITH THE '24-'24 CYCLE BUT OUR DISTRICTS STILL NEED MORE INVESTMENT.

>> Cathy: WHAT DO YOUR CONSTITUENTS SAY WHEN THEY HEAR THIS AND THERE WAS A LOT OF MONEY SPENT AND NOW OF COURSE WE'RE LOOKING AT A NUMBER OF DISTRICTS WITH DEFICITS?

WHAT DO THEY WANT TO KNOW ABOUT THAT?

>> YEAH, WELL, FIRST OFF IT'S TEACHER APPRECIATION.

>> Cathy: HAPPY TEACHER APPRECIATION WEEK.

>> I THINK PRETTY CONSISTENTLY FROM WHAT I HAVE HEARD AS I'VE REACHED OUT TO EDUCATORS FRANKLY ACROSS THE STATE IS THAT THEY NEED FUNDING AND FLEXIBILITY, THEY NEED MANDATE RELIEF, AND THEY NEED LOCAL CONTROL.

SO YOU'LL HEAR, AND WE'VE TALKED ABOUT IT A LOT OVER 65 MANDATES, THERE'S ACTUALLY MORE THAN, AND FRANKLY, OME OF THEM ARE GOOD.

THERE ARE GOOD THINGS THAT OUR SCHOOLS NEED TO DO TO IMPROVE TO SUPPORT OUR STUDENTS, THE READ ACT BEING ONE OF THEM.

HALF OF OUR STUDENTS AREN'T READING AT GRADE LEVEL SO THERE WERE INVESTMENTS INTO SCHOOLS.

BUT WHAT WE CONSISTENTLY HEARD FROM ACTUAL EDUCATORS, THE ACTUAL BOOTS ON THE GROUND IS GIVE US THE FUNDING, GIVE US THE FLEXIBILITY, TRUST US TO DO WHAT IS BEST FOR OUR LOCAL DISTRICT, BECAUSE THE NEEDS OF PRIOR LAKE ARE DIFFERENT THAN THE NEEDS OF PIQUOT LAKES.

>> ARE THE FORMULAS NOW ADJUSTED FOR INFLATION?

>> YES.

>> Eric: THAT'S AUTOMATIC, RIGHT?

>> YES, THAT'S ONE OF THE BEST THINGS I THINK WE DID IN '23 AND THAT WAS 20 YEARS IN THE MAKING.

AND IT HAS A % LOOR AND 3% CAP.

BUT THE MOST IMPORTANT PART OF THAT IS BY FEBRUARY 28TH DISTRICTS WILL ALWAYS KNOW WHAT THEY'RE GETTING BECAUSE THE FORECAST ODEL WILL COME OUT, SO THEY HEARD THIS YEAR THEY'D GET 2.74% AND THEY CAN START THEIR PLANNING INSTEAD OF HAVING TO WAIT FOR US.

IT BRINGS STABILITY TO HEM.

>> Eric: SHOULD THAT FORMULA BE ON AUTO PILOT TO GO UP?

>> WELL, I THINK WE HEARD FROM DISTRICTS THAT HELPS FOR PLANNING PURPOSES.

>> Eric: THE WORK HORSE PART OF THE BUDGET FOR EDUCATION IS THE FORMULA.

>> YEP, IS THE FORMULA.

THERE'S, WE ALSO WITHIN THE BILL THAT IS CURRENTLY SITTING ON THE TABLE, WE HAVE A NEW FUNDING STREAM CALLED BASIC SUPPLEMENTAL AID.

SO WHAT WE DID IS LOOKED AT AND WE LOOKED AT FUNDING FLEXIBILITY, LOCAL CONTROL, AND MANDATE RELIEF, AND WE LOOKED AT HALF THOSE BUCKETS THAT ARE NOT REACHING THE CLASSROOM AND WE PUT TOGETHER ABOUT $70 MILLION THAT WOULD GO INTO SUPPORT CHOOLS FOR FLEXIBLE FUNDING, THAT THEY DECIDE AT THE LOCAL LEVEL INTO BASIC SUPPLEMENTAL AID.

>> Eric: THE HOLDUP, THOUGH, IS UNEMPLOYMENT INSURANCE, UNEMPLOYMENT BENEFITS FOR SEASONAL, NON-TEACHER FOLKS IN THE SCHOOL DISTRICT.

AND THAT WAS, LOOKED LIKE IT WAS AGREED TO AND THEN THE RULES COMMITTEE PUT A HOLD ON IT.

WHERE ARE WE WITH THAT AND WHY IS THAT SUCH A STICKING POINT >> SO THIS HAPPENS ALL THE TIME IN NEGOTIATIONS.

YOU MIGHT HAVE A TENTATIVE AGREEMENT AND THEN YOU BRING IT BACK TO YOUR MEMBERSHIP AND THEY SAY, YOU KNOW, TRY AGAIN.

AND THESE ARE ACTUALLY HOURLY WORKERS THAT WE HAVE IN OUR SCHOOLS AND THEY'RE THE FOLKS THAT ARE PARAPROFESSIONALS THAT TAKE CARE OF OUR KIDS THAT HAVE THE MOST NEEDS, THEY'RE OUR BUS DRIVERS THAT AS CAT BRIGGS SAYS DRIVE A ONE-ROOM SCHOOLHOUSE THROUGH TRAFFIC, NUTRITION FOLKS, CLERICAL WORKERS, THAT LADY IN THE FRONT OFFICE THAT YOU ALWAYS WENT TO, AND THEY WERE THE ONLY HOURLY EMPLOYEES IN THE STATE THAT WORKED MORE THAN THREE MONTHS A YEAR THAT DID NOT HAVE ACCESS TO UNEMPLOYMENT INSURANCE.

>> Cathy: IS THIS SOMETHING THAT YOU WANT TO DIG IN FOR A FIGHT ABOUT OR NO?

>> I THINK WHAT I'VE HEARD CONSISTENTLY FROM THE SCHOOLS IS THIS MANDATE WILL CRUSH SCHOOLS.

I ACTUALLY JUST GOT AN E-MAIL, CHAIR YOUAKIM GOT THE SAME ONE FROM ABOUT 70 SUPERINTENDENTS SAYING IF THIS MANDATE GOES ON TO SCHOOLS, IT WILL CRUSH BUDGETS FOR OUR SCHOOL DISTRICTS.

AND THE COMPARISON TO SEASONAL WORKERS IS AN APPLES AND ORANGES COMPARISON, TO BE VERY HONEST.

SEASONAL WORKERS, AND I TALKED TO A LANDSCAPER THIS MORNING, HE ACTUALLY BUILDS INTO HIS BIDS THE COST OF PAYING INTO THAT U.I.

IF WE DO THAT IN SCHOOLS, SCHOOL BOARDS WILL HAVE ONE OF TWO OPTIONS.

IT WILL BE EITHER CUT THEIR BUDGET, WHICH MEANS THAT STAFF WILL BE REDUCED, SO THOSE SAME HOURLY WORKERS THAT WERE -- THEY'LL LOSE THEIR JOBS, YES.

OR WE CUT TEACHERS AND THEN CLASS SIZES GO UP.

THE OTHER OPTION IS WE COULD GIVE THEM THE FLEXIBILITY TO LEVY IT AT THE LOCAL LEVEL AND IF WE RAISE PROPERTY TAX TAKES LOCAL LEVEL THAT WILL KILL THE OPPORTUNITY FOR DISTRICTS TO PASS OPERATING LEVIES.

>> Cathy: THIS SOUNDS LIKE THERE'S NOT A WHOLE LOT OF AN AGREEMENT HERE.

SO HOW -- >> Eric: I SEE THE WORDS "UNFUNDED MANDATE."

>> SO NO SCHOOLS HAD HAVE HAD TO PAY THIS YET.

WE HAD ENOUGH FUNDING WE PUT IN THE LAST TWO YEARS, ACTUALLY THE LAST WO AND A HALF.

WE'RE SEEING RESULTS WITH FOLKS STICKING AROUND, YOU DIDN'T HEAR ABOUT A BUS SHORTAGE AS MUCH, PARAS COMING BACK IN THE FALL.

>> Eric: HELPS ETAIN WORKERS.

>> IT HELPS RETAIN WORKERS AND THERE'S WAYS TO MAKE SURE THAT WE DO FUND IT INTO THE FUTURE, FIGURE OUT A FUNDING STREAM, WE JUST DIDN'T WANT TO LOCK UP MONEY UNTIL WE SAW A TREND LINE.

>> Cathy: BEFORE YOU GO I HAVE TO ASK YOU THIS.

UNIVERSAL SCHOOL MEALS, WILDLY POPULAR, SUPER EXPENSIVE.

IS THERE ANY MOVEMENT THERE?

IS THERE GOING TO BE ROLLED BACK A LITTLE BIT, OR IS THERE AN AGREEMENT ON WHAT TO DO?

AGAIN, THAT'S A PRETTY HEFTY EXPENDITURE.

>> YEAH, SO WHAT I WOULD SAY MSBA DID A SURVEY ON -- >> Eric: SCHOOL BOARD ASSOCIATION.

>> YEP, SO THEY DID A SURVEY AND ONLY 5% OF DISTRICTS RESPONDED THAT THE U.I.

BENEFITS IS HAVING A POSITIVE IMPACT ON REEDGE IT.

I'M A MIDDLE SCHOOL PRINCIPAL AS WELL SO I SEE.

UNIVERSAL MEALS -- >> Eric: 15 SECONDS, WE GOTTA GO.

>> ANDREW MYERS HAS A BILL FREEING UP $12 MILLION TO SUPPLEMENTAL AID THAT WOULD GO DIRECTLY INTO THE CLASSROOMS.

SO I FEEL STRONGLY THAT I SHOULD BE ABLE TO PAY FOR MY KID'S LUNCH.

>> Eric: FLOOR DEBATE WILL BE GREAT.

>> DON'T NEED FOR DESKS OR