STATE OF MINNESOTA Office of Governor Mark Dayton 116 Veterans Service Building 9 20 West 12th Street 9 Saint Paul, MN 55155 April 27, 2016 The Honorable Kurt Daudt The Honorable Tom Bakk Speaker of the House of Representatives Majority Leader of the Senate Room 463, State Of?ce Building Room 3113, Minnesota Senate Building St. Paul, Minnesota 55155 St. Paul, Minnesota 55155 Dear Speaker Daudt and Majority Leader Bakk: Your budgets wisely allowed school districts with an outstanding capital loan balance that received a maximum effort capital loan prior to January 1, 2007 to close the loan by paying the state the outstanding initial principal amount in full prior to December 1, 2016. I am revising my 2016 supplemental budget to include this provision, which is expected to release $53349 million that would otherwise need to be transferred from the General Fund to the Debt Service Fund in Fiscal Year 2017. I believe these resources should be rededicated to making education investments that will help close achievement gaps and help ensure Minnesota has a world-class workforce that is ready to innovate and create jobs. Currently, Minnesota ranks 47th in the country with only 1 counselor for every 792 students more than three times the recommended ratio of one counselor for every 250 students. Minnesota schools struggle to provide other critical assistance, with only one licensed nurse for every 1,800 students. That is why I am proposing a $13.1 million investment for a matching grant program that would increase the number of licensed counselors, social workers, nurses, and chemical dependency counselors available in our schools. These grants would help schools create student support services positions thereby alleviating shortages and decreasing caseloads. Our students deserve no less. School districts also have expressed concern about accommodating increased numbers of prekindergartners, especially given the popularity of all-day kindergarten. To help alleviate space shortages, I propose that the remaining $40249 million be invested in a prekindergarten facilities matching grant program. This investment would support site preparation, renovation, construction, and the lease of prekindergarten facilities. School districts and charter schools could apply for a grant of up to $1 million, which could be used over the course of three years. Voice: (651) 201?3400 or (800) 657-3717 Fax: (651) 797-1850 MN Relay (800) 627-3529 Website: http://mngov/governor/ An Equal Opportunity Employer Printed on recycled paper containing 15% post consumer material and state government printed The Honorable Kurt Daudt and The Honorable Tom Bakk April 27, 2016 Page 2 Although facilities assistance funding was in my original voluntary prekindergarten proposal, these additional resources would help more districts alleviate spaces shortages paving the way for voluntary prekindergarten. Districts and charter schools could use this funding to either provide improved facilities for existing prekindergarten programs or to create space for the voluntary prekindergarten programs they would like to offer. These additional investments are critical for ensuringthat we are able to create greater opportunity for all kids across Minnesota and help more kids succeed in school and in life. Sincerely, Tina Smith Governor Lt, Governor I Mark Dayton cc: Minority Leader Paul Thissen Minority Leader David Hann Senator Richard Cohen, Senate Finance Chair Representative Jim Knoblach, House Ways and Means Chair Senator Chuck Wiger, Education Finance Chair Representative Jennifer Loon, Education Finance Chair Bill Marx, House Chief Fiscal Analyst Eric Nauman, Senate Chief Fiscal Analyst