Frequently Asked QuestionsTeacher Support :

Q COMP –FINANCE FAQ

What is the total revenue available?
School Districts and school sites with an approved Q Comp application will receive $190 per student in state aid and up to $70 per student in a partially equalized levy. Charter schools, Intermediate School Districts, Multidistrict Integration Collaboratives, and Perpich Center for the Arts with an approved Q Comp application will receive the state average in aid (likely to be slightly less than $260 per student) depending on how many school districts choose to levy the maximum amount available, and how many choose to levy less than the maximum, since these entities do not have the authority to impose levies.

How does the Q Comp funding formula work for participating school districts?
Minn. Stat. §122A.415, Subd. 1, paragraph (b), clause (2), specifies that the maximum revenue for a participating school district or site “equals $260 times the number of pupils enrolled at the district or site on October 1 of the previous fiscal year.” Minn. Stat. §126C.10, Subd. 34 - 36, specify how the $260 breaks down between state aid and local property tax levies. Subdivision 34 addresses the basic Q Comp aid. The basic Q Comp aid for a school district equals 73.1 percent of the maximum revenue, or $190.06 per pupil. The remaining $69.94 per pupil is available to participating school districts as an equalized property tax levy. Subdivision 35 specifies that the local share of the equalized levy equals the lesser of 1 (100%) or the ratio of the district’s adjusted net tax capacity per adjusted pupil unit to $5,913. Subdivision 36 specifies that the state share of the equalized levy equals the product of (1) the difference between the $69.94 per pupil maximum equalized levy revenue and the maximum Q Comp levy, times (2) the ratio of the actual amount levies to the maximum levy. The property tax levy is optional. Participating school districts receive the full basic Q Comp aid of $190.06 per pupil whether or not they choose to make a property tax levy for Q Comp.

Is a school district required to levy the $70/student in order to receive $190/student in state aid?
No district will receive less than the $190 per student in state aid regardless of the amount levied for Q Comp.

Do most districts choose to levy the additional revenue?
The Minnesota Department of Education certified a Q Comp levy limitation for taxes payable in 2007 to 37 districts for FY 2008. Of these districts, 28 elected to levy the maximum amount for Q Comp and will receive the full $260 per pupil, and 9 elected not to levy, and will receive only the basic Q Comp aid of $190.06 per pupil. Districts would also have the option to levy an amount lower than the $70 maximum levy if they so choose.

What if a district did not “pre-certify” its levy prior to September 30, 2007?
If a district does not include the Q Comp levy on its proposed property tax certifications prior to truth in taxation, then the district cannot levy funds for Q Comp for Pay 2008. However, the district may elect to “double levy” in Pay 2009 to make up for the difference.

What if a district “pre-certifies” a levy for Q Comp but does not submit a Q Comp application prior to the final levy certification?
If a district does not submit its Q Comp application to MDE prior to the final levy certification, the Q Comp levy will be deleted from the levy limitation report, and the district cannot levy for Q Comp for Pay 2008. However, the district may elect to “double levy” in Pay 2009 to make up the difference. If the district double levies in Pay 2009, the levy for Pay 2009 will be recognized as revenue by the district in FY 2010. The Q Comp aid for FY 2009, including the levy equalization aid, will be recognized as revenue by the district in FY 2009.

What if a district submits a Q Comp application and certifies a Q Comp levy for Pay 2007, but the application is rejected and the district does not qualify for Q Comp revenue in FY 2008?
If the final decision to reject the district’s Q Comp application is made early enough to adjust the Pay 2008 levy, the Q Comp levy will be deleted from the Pay 2007 levy. If not, the Pay 2009 levy will be adjusted to offset the amount levied for taxes payable in 2008.

Will the large districts take all the money?
There will be plenty of money available for other districts. If the three largest school districts in Minnesota decided to enter the program – Minneapolis, St. Paul and Anoka-Hennepin – they would spend about $23.1 million of the $76 million available (or 30% of the total available). Furthermore, MDE was required to distribute funding on a geographical basis for the 2006-07 applications until July 1, 2006. The metro area is defined as school districts residing within the seven-county metropolitan area and the rural area is defined as school districts residing in counties that are not within the seven-county metropolitan area. Distribution is based on a student population in those two areas. After July 1, 2006, MDE may distribute remaining funds on a first come, first served basis.

Will the money for Q Comp go away in a few years?
The program is structured as a categorical aid program that is part of general education revenue, not as a grant program. This was done to create a permanent commitment to performance pay. The bill creates the categorical aid program as a permanent funding program. However, funding is always a decision of the current and future legislatures.

Is there enough money to implement Q Comp?
School districts are implementing performance pay plans for amounts ranging from less than $100/student in additional funds to $500/student in additional funds. The districts participating in the Minnesota Alternative Teacher Compensation Program under previous legislation receive $150/student in state aid. The Q Comp legislation provides for $260/student in revenues. Some districts have plans that are more expensive than Q Comp. However, many of those districts have included school personnel other than teachers, which will drive up the cost of performance pay.

How are Q Comp funds distributed by MDE?
For the first year, FY 2006, Q Comp funds were distributed on a first come, first served basis. For the second year, FY 2007, Q Comp funds were distributed based on student population between the metro and rural areas until July 1, 2006. The metro area is defined as seven-county metropolitan area. The rural area is all other counties. Additionally for FY 2007, Q Comp funds allocated to charter schools were limited to $3,374,000 until after August 1, 2006. After July 1, 2006, the available funds are distributed on a first-come, first-served basis.

What student count is used to determine Q Comp revenue?
The Q Comp law requires MDE to use the prior year October 1 student count. This is similar to other categorical funding, specifically compensatory. If there are unusual situations in a school or school district, an appeal can be filed with the Department of Education, Attn: Tom Melcher, Director of Program Finance Program Finance Division, 1500 Highway 36 West, Roseville, MN 55113.

What is the status of the five school districts that are participating in the Minnesota Alternative Teacher Compensation Pilot Program?
In 2001, the Minnesota Legislature appropriated funds to begin an alternative teacher compensation pilot program called the Minnesota Alternative Compensation Program. In FY 2005 there were five school districts receiving $150/student to participate in the program. These five districts have two options: (1) remain in the program for up to four additional years and receive $150/student; or (2) enter into the Q Comp program by an approved application and receive $260/student. After FY 2009, funds will no longer be available for the Minnesota Alternative Compensation Program.

Q COMP –POLICY FAQ

What support will MDE offer districts planning to transition and implement Q Comp?
MDE will provide ongoing regional training sessions throughout the year. In addition, MDE will provide individualized workshops and/or technical assistance to districts by request. More information can be found on the MDE website, through the Q Comp link under Teacher Support.

Do districts need to implement all components of Q Comp?
Yes, districts entering into Q Comp are required to implement all components of Q Comp.

When are districts and charter schools required to implement Q Comp?
Districts are required to fully implement Q Comp on October 1 of the school year they are entering into the program and submitting an application. For example, a district that wants to receive Q Comp funding for the 2008-09 school year (FY 2009) must fully implement the program no later than October 1, 2008.

What is the deadline for submitting the Letter of Intent if a school district is interested in implementing Q Comp during the 2008-09 school year?
There is no deadline for submitting a Letter of Intent. However, in order for a school district to certify its levy for the 2008-09 school year, MDE requires a Letter of Intent by September 30, 2008. If a school district did not submit a Letter of Intent by September 30, 2008, the district may “double levy” the following year.

Does Q Comp require a teacher vote before submitting an application to MDE?
No, a teacher vote is not required before submission of a Q Comp application. However, the application must contain the signatures of the president of the exclusive representative of the teachers and either the school board chair or the superintendent. It should be noted that final ratification of a master agreement and contract does require a teacher vote under the parameters set in the district’s collective bargaining agreement with its local teacher union. Local districts and local teacher unions should check their bylaws to ensure compliance with collective bargaining processes.

What is the difference between a Letter of Intent and an application?
A Letter of Intent is a notification process to the state that the district and the exclusive representative of the teachers are planning to submit an application and undertake planning processes to develop a Q Comp plan. An application is a formal submission requesting approval to begin implementation of a Q Comp program. The Letter of Intent does not bind a district to submit a Q Comp application to MDE.

Does Q Comp require a teacher vote before submitting the Letter of Intent to MDE?
No, MDE does not require the teacher vote for the Letter of Intent, only the signature of the president of the exclusive representation of the teachers and either the board chair or the superintendent of the school district. However, a school district may decide to require a teacher vote. This is a local decision.

Where can districts find an application and Letter of Intent?
The Q Comp application and the Letter of Intent can be found on the Department’s website at http://education.state.mn.us/MDE/Teacher_Support/QComp/QComp_Application_Process/index.html

How are applications accepted by MDE?
Q Comp applications received by MDE will be date stamped and sent for review. At that time, the funding for that school district will be reserved until the application process is complete. The application review must be completed within 30 days upon receipt of an application. If MDE disapproves an application (Revision Status), the district has 30 days to revise its application. During the revision period, the funding allocation for a district remains intact until the 30-day time period allowed for changes to the application has expired.

How will a district’s Q Comp application be reviewed by MDE?
Once an application is received by the MDE, it is reviewed by a trained team of teachers and administrators and then submitted to the Commissioner of Education or her designee for final approval. This process must be completed within 30 days upon receipt of an application. If the application is not approved, the school district, school or charter school has 30 days to make revisions.

Does MDE provide technical assistance to districts before, during, or after the application process?
Yes. MDE will provide districts will technical assistance before, during, and after the application process. Districts can request technical assistance by contacting mde.Q-Comp@state.mn.us or by contacting: Kristie Anderson at (651) 582-8860 or Kristie.anderson@state.mn.us, Kathy Hartman at (651)582-8324 or Kathy.hartman@state.mn.us, or Patricia K. King at (651)582-8655 or Patricia.k.king@state.mn.us.

Why doesn't the Q Comp law provide more details for districts?
This plan provides a framework for a program focused on specific goals for improved teacher instruction and increased student achievement. However, the way in which a district determines and achieves the goals is determined at the local level, allowing each district to tailor the program to fit the needs of their students and teachers.

How does Q Comp or performance pay work?
Teacher performance is tied to pay and is measured in the following ways:
• School-wide student achievement gains, based on standardized assessments
• Measures of student achievement
• Objective teacher evaluation results
Each district creates a plan determining how each of these areas will be measured, what type of achievement must be demonstrated, and how much pay will be awarded if the standard of performance is demonstrated.

How will the evaluation system work within Q Comp – will it be biased?
The evaluation tool will be locally agreed upon and all teachers will be measured on the identical agreed-upon skills. Training for all evaluators helps not only to eliminate bias but also to ensure inter-rater reliability is maintained and score inflation is prevented. It is also recommended that the district develop an appeals process to help further eliminate the appearance of bias. An evaluation in a performance-based Q Comp model will be:
• Equitable, feasible, valid and transparent for all teachers
• Focused on a rigorous rubric with clear procedures and standards of performance
• Supportive of growth for all teachers
• More supportive of teachers improving/correcting deficiencies
• Completed by trained peers such as master and/or mentor teachers (depending on district set up and plan) and approved by the building principal

Does professional development for teachers lead to increased student achievement?
If focused and integrated, professional development will assist with teacher effectiveness in the classroom that will lead to increased student achievement.

What is the state law requirement under the Q Comp program regarding staff development and the 2% set aside of funds?
For districts entering into Q Comp, the transition year requires districts to set aside some amount “up to 2%” for staff development. The district or school that is in transition is required to indicate the amount of funds it is setting aside for Q Comp. This information is included on the Letter of Intent.

Are school districts required to ratify their master agreement and contract before submitting an application?
No, districts are not required to ratify their master agreement and contract before submitting an application. A district may submit an application under a “pre-approval” process. Under this process, an application is submitted prior to ratification and is approved or disapproved. If the application is approved, the district then proceeds to a teacher vote and state revenues are made available to the district once the master agreement and contract have been ratified. Districts and local teacher unions should check their bylaws to ensure compliance with collective bargaining processes.

What if a district has settled their master agreement – can it be re-opened for Q Comp?
Yes, Minn. Stat. 179A.20 allows school districts to re-open their master agreement for the sole purpose of negotiating a Q Comp program.

Will teachers lose seniority, pay, and tenure under Q Comp?
No, teachers will not lose seniority, pay, or tenure. The local district negotiates the pay schedule with the exclusive representative of the teachers and it is expected that no teacher will lose pay or seniority under Q Comp. Teacher tenure is defined in state law and Q Comp does not affect teacher tenure.

Does Q Comp change PELRA?
Q Comp provides for two changes as it relates to PELRA. Both changes are optional and only available to districts that enter into Q Comp. First, Districts that have settled a master agreement prior to enactment of Q Comp would be allowed to re-open the contract for the purposes of Q Comp. Second, Q Comp districts would be allowed to settle a contract for two or four years. The idea around these exceptions is to allow school districts and teachers more time to transition into a new system and salary schedule.

Does Q Comp apply to administrators and other school personnel?
Currently Q Comp does not apply to administrators or school personnel. However, Q Comp or state law does not prevent districts from developing performance pay models for administrators or other school personnel. In fact, many school districts have implemented performance pay for administrators.

What is a Program Review and how will it be conducted?
Once a district’s Q Comp application has been approved, MDE will conduct a Program Review. This is a two-tiered, three-leveled process focused on helping all implementing districts continue to grow and improve their programs based on the feedback from other implementing districts. Please refer to the outline of the process for Program Review in part VI of the Q Comp Guidelines for further details.

Q COMP–CHARTER SCHOOLS FAQ
Note: All of the questions and answers above apply to charter schools except for the collective bargaining questions, questions related to levies, and questions related to the 2% set aside for staff development.

Will charter schools become “unionized” because of Q Comp or any of its requirements?
No, charter schools are not required to unionize in order to enter into the Q Comp program. The charter school board is only required to ensure its teachers have been notified and provided an opportunity to have input. The charter school board must certify that 70% of teachers have approved of their Q Comp application.

How much is available for charter schools entering into Q Comp?
Charter schools will receive state aid based on the state average that school districts will receive under Q Comp. This will likely be close to $247 per student for FY 2007. Charter schools receive their funding in state aid because they do not have the authority to impose local levies.

Does the Q Comp law impose any financial limits or caps for charter schools?
Charter schools are subject to the same cap in funding as school districts and schools. Funding will be limited to approximately 48% of the student population in charter schools, or an estimated $3,888,000 until August 1, 2007. If there is additional funding after August 1, 2007, the MDE may lift the financial cap for charter schools.

Must charter schools set aside 2% for staff development if they have an approved Q Comp application?
Charter schools, under state law, are exempt from a number of state mandates. Charter schools are not required to set aside up to 2% for staff development; however, Q Comp requires job-embedded staff development as one of the components. Charter schools will be required to comply with this component, along with the other requirements of Q Comp, in order to receive state funding.

If you have additional questions, please contact us:

Contact Information:
Minnesota Department of Education
1500 Highway 36 West
Roseville, MN  55113
http://education.state.mn.us/mde/Teacher_Support/QComp/index.html

Policy Questions:    
Patricia K. King     
(651) 582-8655
patricia.k.king@state.mn.us
   
Kristie Anderson    
(651) 582-8860  
kristie.anderson@state.mn.us

Finance Questions:
Terri Yetter
651-582-8868
terri.yetter@state.mn.us