Several education programs saw allocation reductions as the 2002 Legislature looked to balance the state's budget.

Budget cuts, part I

Nearly $15 million was cut from the K-12 education budget in the Legislature's first round of budget cuts.
Only one district request received a new appropriation: the Cambridge-Isanti School District was allocated $400,000 to make a special education payment.
Among the cuts, funds for examination fees, teacher training, and support programs, originally $2 million each year, were halved. The Department of Children, Families and Learning will continue to pay fees for low-income students taking advanced placement or international baccalaureate exams, but not all students, as was previously provided.
A $2.5 million appropriation for contracting with an independent school evaluation service to evaluate and report on school districts' academic and financial performance was cut by $1 million.
The alternative teacher pay fund, an incentive for schools to create a plan for paying teachers using nontraditional methods, decreased from $4 million to $3 million in both fiscal years.
Rep. Rich Stanek (R-Maple Grove) and Sen. Doug Johnson (DFL-Tower) sponsored the law.
HF351*/ SF264/ CH220

Budget cuts, part II

The second budget law eliminates the $439 million deficit by transferring funds and using accounting shifts, primarily involving K-12 funding.
State aid to school districts was previously paid in two-year cycles, with 90 percent in the first year and 10 percent the second. Under the new law, the percentages change to an 83 percent-17 percent formula. The shift will save $437.5 million in fiscal year 2002.
The law also appropriates $17.5 million to the Department of Children, Families and Learning to make payments to school districts to help offset difficulties that may arise from the payment change.
Rep. Kevin Goodno (R-Moorhead) and Sen. Doug Johnson (DFL-Tower) were the sponsors.
HF3270*/ SFnone/CH374

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