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212654ORIGINAL TO CITY CLERK .��� CITY OF ST. PAUL COUNCIL NO. PPaa!! OFFICE OF THE CITY CLERK ' COUNCIL RESOLUTION-2 GENERAL FORM PRESENTEE BY COMMISSIONER_ RESOLVED, That the Council of the City of Saint Paul, after studying the present situation and proposed amendment to special state aid for schools now before the Legislature, recognizes and believes that the whole area of school financing, particularly with respect to state aid and local effort of school districts and the effect of these efforts upon the other tax supported governmental units within said districts should be carefully studied, and recommends and urges that the Legislature appoint an Interim Study Commission to investigate these problems, appropriating the sum of $100,000 therefor; RESOLVED FURTHER, that the Ramsey County Senate and House delegations be urged to seek and support a bill authorizing l the aforesaid study.;,•r COUNCILMEN Yeas I Nays Dalglish 19Hand Loss Mortinson Rosen Mr. President, Vavoulis 10M 6-62 ;Council File No. 212854 —By James J. Dalglish— Bernard T. Holland —Frank I L. Loss— Severin = A. Mortinson- Robert F. Peterson — Milton Rosen — George J.•Vavoulis, Mayor — Resolved; That the Council of the City' of Saint Paul, after studying the s present situation and proposed amend- i; meet to special state aid for schools i now before the Legislature, recognizes and belieyes that the whole area " of P. school financing, particularly with re -1 spect to state aid and local effort of; school districts and the effect of these efforts upon the other tax supported governmental units within said dis- tricts should be carefully studied, and, recommends and urges that the Le - islature appoint an Interim Study, i Commission to investigate these prob -, lems, appropriating the sum of $100,000{ therefor; Resolved Further, That the Ramsey] County Senate and House delegations be urged to seek and support a bill p authorizing the aforesaid study. € . Adopted by the Council May 9, 1963. Approved May 9, 1963. .(May, 11, 1963) i MAY g 193 Adopted by the Council 19— my 9 1963 Approved 19— Tn Favor i)A Mayor Against I i. C4, vL ROBERT E. FARICY THEODORE J. COLLINS DANIEL A. KLAS THOMAS J. STEARNS JOHN J. McNEIL GERALD A. ALFVEBY PAUL J. KELLY SIDNEY P. ABRAMSON ASSISTANTS NEIL P. CONVERY INVESTIGATOR CITY OF SAINT PAUL LEGAL DEPARTMENT DONALD L. LAIS CORPORATION COUNSEL To the Council: Re: State Aid a 1,92 6 � May 7., 1963 LOUIS P. SHEAHAN DIRECTOR OF LAW ROBERT E. O'CONNELL SPECIAL ASSISTANT After considering the Senate version of the proposed amendments to special state aid for schools as contained in Minnesota Statutes 1961, Chapter 124, and hearing the remark by one of the authors of the bill that local communities make a "minimum effort, I wish to call your attention to certain facts in regard to the Saint Paul situation. The Senate bill will provide that Formula B school districts, such as Saint Paul, will have subtracted from the amount of state aids they would otherwise be entitled to, a.n'amount equivalent to the difference in the taxes raised by applying a 19 mill rate to the valuations established by the State Board of Equalization for the real property within the school district and the amount of tax dollars actually raised by real estate taxes within the school district. In the case of the City of Saint Paul, the difference amounts to approximately $2,100,000.00, and the amouiztactually collected in Saint Paul is reflected in the state mill rate as 16.45 mills. However, these are not to be mistaken for the mill rate applied in the City, which is, at present, 62 1/2 mills. Under the proposed amendment, the Board of Education would be authorized to increase the City mill rate on real property so as to produce the $2,100,000.00 referred to above, and to the extent that the City raises additional monies, it would qualify for matching dollars under state aids. In other words, if the City raised its mill rate under the state.figure to 19 mills (in fact, a 9 1/2 mill increase), it would then qualify for the school funds authorized under Formula B of the proposed act. The method of determining the City's effort by mill rate as set out above does not take into account the actual dollar effort made on a per pupil unit basis. The figures for the calendar year 1962 indicate that the City made the following expenditures: To the Council 2 May 7, 1963 Average daily attendance - 4O,o48 Per pupil•cost in Average Daily Attendance for operation and maintenance (excluding retirement, welfare, severance, and bonds and interest) $461.40 Per pupil costs in Average Daily Attendance (excluding bonds and interest) 501.08 Total per pupil costs in Average Daily Attendance 532.37 Funds available per pupil unit from local taxes for various purposes Tax'Levy per Tax Levy pupil unit Local levy (operation and maintenance) $12,000,000 $299.65 Teachers' retirement 1,062,528 26.53 P.E. R. A. 209, 744 5.24 Health and Welfare 220,000 5.49 Severance pay 231,093 5.77 Bonds and interest 1, 253, 271 31.29 Special taxes 358,657 8.96 We find that for the school year ending June 30, 1962, there was a variance in maintenance costs within school districts within the State of Minnesota ranging from $246 to $588 per year per pupil unit. The median figure was $330.per year per-pupil unit, and Saint Paul's figure was $392 per year per pupil unit, well above the median. d _To'the Council 3 May 7., 1963 It would seem that the parties considering whether or not a community is making a minimum or maximum local effort ought to take into consideration the actual dollar expenditure made on a local basis per pupil unit in order to balance the equities and arrive at a just distribution of the monies raised for educational purposes by the state. It is well to note that the income taxes raised from taxpayers within the City of Saint Paul, which funds are completely expended in state W amount to something in excess of $15,000,000.00 per year, and the the City on these state aids is,in the vi- cinity of $5,000,000.00 a year. In other words, $10,000,000.00 a year is removed from the City of Saint.Paul through state income taxes and is not available for either local tax relief or local capital expenditure. It seems to me that we in Saint Paul might well request the State Legislature to appropriate a sum of money sufficient to finance the cost of doing a complete analysis of the financing problems and local effort of school - districts and the effect of these efforts upon the other tax supported governmental units within said districts during the interim between the 1963 Legislative Session and the 1965 Legislative Session. truly yo , W 'nald L. Lais Corporation Counsel DLL:ja P.S. It has just been called to Conference Committee will as to decrease the amount lose under the formula to in no way removes the nee my attention that the Legislative possibly amend the Senate bill so of dollars that Saint Paul will approximately $80-,000.00. This d for the above requested study.