World-Class Students

1. World-Class Students From Nation Leading to World Competing Governor Tim Pawlenty’s Education Agenda January 2007

2. The World is Flat Minnesota’s economy is increasingly intertwined with the 21st century global economy. • The state’s manufactured exports alone were valued at $11.8 billion in 2004 -- growing by 22 percent between 1998 and 2004. • U.S. affiliates of foreign companies employed 84,600 people and invested $10.8 billion in gross plant, property, and equipment in Minnesota in 2003.

3. New Jobs in Science and Technology This new global future indicates that Minnesota’s future job growth will be in the science and technology fields. • Economic forecasts project a 20- 33 percent increase in scientific and technical occupations in Minnesota in 10 years. • New job growth in professional and high-tech industries will demand an extra 10,500 college graduates per year.

4. 21st Century Economy/20th Century Schools • 10.8 % of 8th graders and 20.9 % of 10th graders expressed interest in pursuing a future in the science, technology, engineering and math fields. • Substantially fewer students of color are prepared to take college algebra and college biology. • In less than 10 years, 90% of the world’s engineers will live in Asia.

5. To World Competing We must reinvent and reinvigorate our system of educationto take our students from nation leading to world competing. If Minnesota is going to compete in the 21st century, we must create a system of education that provides our students with the 21st century skills they need to compete with students from around the world.

6. World Competing Governor Pawlenty’s World-Class Student Initiative From Nation-Leading to World Competing • Education Funding Formula Changes • “3R” High Schools • Effective Teachers for All Students • Academic Rigor for All Students • Closing the Achievement Gap

7. State Budget Forecast • State budget forecast released in November: $2.17 billion surplus • Approximately $1.038 billion is “structural” or available for permanent spending decisions • Approximately $1.132 billion is not re-occurring or “structural” • Next budget forecast will be released in late February 2007

8. Education Funding Changes General Education Funding • 2% and 2% on the formula • $100 in FY 2008 to $5,074 • An additional $102 in FY 2009 to $5,176 • Increase applies to linked formulas – • Compensatory, sparsity, transportation sparsity, shared time, contract alternative, nonpublic pupil, nonpublic transportation, tribal contract • Q Comp linked to formula and cap increased by 10% per year starting in FY 09 • 2% and 2% on LEP & Extended Time

9. Education Funding Changes General Education Funding • Extended time: increase maximum ADM from .2 to .5 per student • Operating Capital: Increase equalizing factor from $10,700 to $17,590 • Equity: simpler, more predictable formula • Sliding scale based on 27% of formula allowance instead of regional 95% percentile • Low referendum formula based on 1.5% of formula instead of 10% of state avg referendum • Use resident PU (aligns with referendum allow) • Hold harmless

10. Education Funding Changes Special Education Funding • 2% and 2% increases in statewide caps • Combine statewide caps for special education – regular and transition disabled • Include transition disabled expenditures in excess cost aid calculations • Use current year data in aid calculations • Increase caps to include funding for Part C expansion in special education-regular & excess cost aid

11. Education Funding Changes One-Time Funding – FY 08 & FY 09 • Successful Schools – Additional $90 – 150 per pupil for schools receiving 3 stars (making AYP) in reading or math ($75 million/year) • School Technology – Grants to improve school technology capacity and increase use of online technology in providing curriculum ($16.5 million/yr technology + $2.5 million/year online)

12. “3R” High Schools • One-third of students entering Minnesota post-secondary institutions need remediation in math. • Our high schools were designed at a time when the majority of graduates didn’t go on to college. By comparison, the majority of students who graduate today pursue some type of post-secondary opportunity. • There is also a precipitous drop in student performance from elementary school to high school. U.S. students score near the top on international tests in 4th grade, but by 8th grade our students are in the middle of the pack and by the end of high school they are near the bottom.

13. “3R” High Schools Six Components of the “3R” High School Redesign Proposal Note: This proposal is not linked to the Successful School Program • One Year of Post-Secondary Education for All High School Students (This would be required of all high schools.) • College Access Programs for Students • Personal Graduation Plan (PGP) • High Quality Teacher and Principal Leadership • Rigorous and Relevant Course Taking for all Students • Use of Data for School Improvement

14. “3R” High Schools • All high schools are eligible to receive funding if the high school implements all six components of the high school redesign plan • Plan is developed locally • First year (planning/transition year): $68/student (grades 9-12) in FY 2008 (school year 2007-08) • Second year (implementation year): $200/student (grades 9-12) in FY 2009 (school year 2008-09) for implementation of all six components.

15. “3R” High Schools The high school experience has become an expensive academic holding pattern, or worse, for way to many of our high school students. Minnesota high schools need to be dramatically overhauled and modernized. Governor Pawlenty’s 2007 Inaugural Address Pawlenty's critique of too many Minnesota high schools as "an expensive academic holding pattern" deserves to be taken seriously …” Star Tribune Editorial, January 3, 2007

16. Effective Teachers for All Students One of the biggest factors for success of our students in a more competitive world is the effectiveness of their teachers. Research conducted by Robert Marzano in 2003 found that besides parents, the effectiveness of teachers in the classroom is the most important factor in increasing student achievement.

17. Effective Teachers for All Students Q Comp is a tremendous success, with 35 districts and 15 charter schools now participating in the program. The World-Class Students Initiative continues the Governor’s efforts to improve professional development and link student achievement to teacher compensation by expanding the nation-leading Q Comp program. "It's going to make me a better teacher."Hopkins West Junior High social studies teacher Kim Campbell(Star Tribune, September 14, 2005)

18. Effective Teachers for All Students The World-Class Students initiative would also create effective teachers by: • Creating new regional Math and Science Academies, which will provide professional development for all teachers. • Creating a new teacher induction program so we can recruit and retain our classroom teachers. Almost 50% of Minnesota teachers leave the classroom after their first five years.

19. Academic Rigor for All Students Taking more rigorous courses, especially in the Science, Technology, Engineering and Math (STEM) disciplines, will provide Minnesota students with the economic currency they need to succeed in the 21st century. A recent study by Achieve Inc. found that only 24 percent of high school Graduates say they were significantly challenged in high school.

20. Academic Rigor for All Students The World-Class Students initiative would increase rigor by requiring students to take classes, especially in the STEM disciplines, needed to compete with students anywhere in the world. • Rigor counts: The Governor recommends $15 million in FY 2008-09 for additional Advanced Placement, Pre- Advanced Placement and International Baccalaureate schools. Since Get Ready, Get Credit was enacted in 2005, participation in AP increased 18.5% and in IB 11%. • Require a minimum of four years of a second language for graduation (flexible – could include grades before high school) • Provide start-up funds for schools to establish Mandarin Chinese programs. • Provide funding for schools implementing an alternative school calendar.

21. Closing the Achievement Gap It’s unacceptable that Minnesota, a state heralded for its commitment to education, has one of the worst achievement gaps in the nation. Only about half of Minnesota’s African-American students graduate from high school in four years.

22. Closing the Achievement Gap The Governor’s World-Class Students initiative seeks to focus resources where they are needed the most -- on at-risk students who are not ready for kindergarten. Creates a scholarship to provide up to $4,000 per at-risk student the year before kindergarten. These funds could be used for public or private programs that meet standards.

23. Increasing Accountability The World-Class Students initiative also continues the Governor’s efforts to increase accountability in our schools. • Reforms will make further improvements to our accountability and assessment system -- including providing educators with more timely student performance data through a voluntary formative assessment for grades 3-8 in reading and math and continuing with a growth model for the state MCA-II assessments and the STAR rating system. • Additional funding for assessment system will allow state to develop classroom tools for teachers and schools, computerized on-line assessments for students re-taking the GRAD Test and insure assessments are aligned to academic standards.

24. MDE Contact Information Chas Anderson Deputy Commissioner 651-582-8207 chas.anderson@state.mn.us Tom Melcher Director, Program Finance 651-582-8828 tom.melcher@state.mn.us