Hopkins School District Group Takes Note of Vikings Stadium Plan

Legislative Action Coalition is spreading the word that a Vikings stadium deal could include more money for education.

In a Nov. 28 e-mail newsletter titled “Could a Vikings (Stadium) Help Repay the K-12 Fund Shift?” the organization pointed subscribers to a proposal that would allow gambling at racetracks in order to generate more state revenue. Gambling proceeds would then be used for stadium construction—with anything left over going to schools.

The LAC’s heads-up does not mean the organization endorses the proposal, but it does mean the possibility is on the group’s radar, said Betsy Anderson—a School Board director and chairwoman for the coalition, which helps the School Board advocate for education-related legislation.

“We just like to be as informed as possible when it comes to education issues,” Anderson said.

The Minnesota Office of Management and Budget estimates Racino would generate about $135 million in revenue per year, about twice what is needed in public funding for the stadium, according to a Nov. 4 letter from a group of legislators asking Gov. Mark Dayton to back a Racino-stadium-education plan.

The possibility of a new revenue source is a tantalizing one for schools because of so-called funding shifts. The state historically paid schools 90 percent of their state money in one fiscal year and the remaining 10 percent in the next.

Minnesota lawmakers and former Gov. Tim Pawlenty changed this to a 70-30 split to balance the state’s budget—effectively borrowing from schools. Legislators this year dropped that to a 60-40 split.

The shifts force schools to borrow until their state money come through and could leave them short of funds if the state can’t repay the shifts. Although many organizations like Hopkins’ LAC want a return to the 90-10 split, no one has been able to push through a way for the state to fund a return to normal.

A new revenue stream could make that possible.

Restoring the 90-10 split is one of the LAC’s top priorities. Yet the coalition historically hasn’t taken a stance on where school funding comes from and is unlikely to do so in this case, Anderson said.

“It’s not our job to tell the legislators where the money should come from. That’s their job,” Anderson said, adding that would be “sort of letting them off the hook.”

The organization decided to get the word out because two legislators who represent pieces of the Hopkins school district—Sen. Geoff Michel (R-Edina) and Rep. Sarah Anderson (R-Plymouth)—were part of the group that delivered the letter to Dayton. Even though the LAC doesn't take a stance on funding sources, the letter piqued members' interest because it targeted the funding shifts that had been so much of the organization's focus.

"State revenue raised by the Racino that is not used for stadium construction should be dedicated to repaying the school shift back to 90-10,” the lawmakers wrote in the letter. “We believe there is consensus that a permanent plan should be passed to repay our school districts. Racino, with $135 million in annual revenue, can be that plan. For many of us, it is a more important part of this proposal than the Vikings stadium itself."

The LAC does not prohibit its members from backing different measures and speaking at committee hearings like those taking place this week—although Anderson said members shouldn’t claim to be speaking for the coalition. Anderson said she doesn’t have a personal stance on the issue.

The coalition is scheduled to discuss the district’s legislative platform Dec. 15, when a discussion of funding shifts will also take place. The LAC has not yet had a full conversation about the stadium proposal and could also discuss that, Anderson said.

(To read the legislators' letter, click on the PDF to the right.)