MREA Hits the Rural Roads in June Advocacy Wrap-Up
The 2024 legislative session ended on May 19 and with that MREA went on the road to inform our members of what new bills had passed and what bills did not. Sam Walseth and Bob Indihar made stops in Hermantown, Sartell, Staples, Rochester, Baudette, Ottertail, Spicer and Mankato. The tour was in conjunction with the Minnesota Department of Education (MDE), Minnesota Association of School Administrators (MASA) and Minnesota School Board Association (MSBA).
At many of the stops, Walseth moderated a panel discussion on what had happened at the Capitol during the session. Discussions on ESST and the READ Act drove the most discussion. MREA highlighted two bills we feel could help lessen inequities in school finance next year.
- Seasonal Tax Base Recreation Aid – this bill could help districts with passing an operating referendum by returning state aid from seasonal and recreation taxes back to the districts that they were generated if the district passes an operating referendum.
- Long Term Facilities Maintenance revenue cncluding roofs in large projects over $100,000. This would help all member districts by allowing districts to levy for roof projects over $100,000 without going out for a public vote.
MREA got a lot of feedback on both bills, especially the financial pressure points in LTFM as some schools are struggling to secure property casualty insurance as their roofs are aging.
MDE discussed the many changes that are happening with Compensatory Revenue in FY26;
- hold harmless pupil count goes away,
- Direct Certification only pupil count,
- changes in the formulas,
- changes in how the federal government certifies of Medicaid eligible students and
- districts having to spend 80% of their compensatory revenue at the site it was generated.
With all the changes in this major revenue stream, some districts may lose revenue in FY26. The districts that had high free and reduced paperwork students who were not Medicaid eligible in the past will most likely be the ones that are hurt by the changes.
MREA is grateful to all the Superintendents and Business managers who attended the Cooperative meetings. MREA will be strategizing for a new legislative platform this summer and hosting Fall Member Meetings to finalize our 2025 platform with members this fall. If you have important bill ideas, attend a Fall Member Meeting or call MREA to discuss.
Below is the slidedeck that was shared on the June 2024 MREA road tour.
