School officials have often lamented what occurs in St. Paul, but that’s not the case this year, at least when it comes to the Ely School District.
Several measures approved by state lawmakers this year figure to provide either immediate or long-term financial benefit to a district that’s in dire need of positive financial news.
Lobbyist Jeff Anderson, an Ely native whose clients include the local school district, briefed board members Monday about a largely productive and successful session for Ely’s Independent School District 696.
“We had very low expectations during the session,” said Anderson, who, along with longtime Iron Range power broker Gary Cerkvenik, forms the lobbying firm Costin Group. “I will say it was far better than what we expected.”
On several fronts, lobbyists convinced lawmakers to pass legislation that will boost districts across northeastern Minnesota - including Ely’s.
One of the most notable relates to the start-up of the Mesabi Metallics mining venture in Nashwauk.
Anderson highlighted a bipartisan agreement that will bring an additional $150,000 annually to the district for school maintenance, and another $100,000 in taconite school funding.
According to Anderson, the funding, which was part of mineral article legislation, “may ultimately prove to be one of the most important economic development and school funding measures affecting northeastern Minnesota in decades.”
Anderson said the framework for the legislation dated back to discussions involving legislators and Ida Rukavina, commissioner of the Iron Range Resources and Rehabilitation Board, last September, and was the result of compromise involving legislators from both the east and west ends of the Iron Range.
While Democrats controlled the legislature two years ago, Anderson noted that a split House meant “this needed bipartisan support.”
“We needed a little more work, a little more compromise,” said Anderson.
The end result for the Ely district is that a current allocation of $314,000 in taconite aid funds “will now go up by $250,000 a year.”
Another key provision for Ely, part of tax legislation approved this year, was the creation of seasonal recreational tax base replacement aid.
For districts with large swaths of seasonal recreational property, including Ely, voter-approved operating levies will be reduced, and funds will be supplemented by the state to offset the impact of seasonal recreational properties.
“Ely is exactly the type of district this legislation was designed to assist,” said Anderson.
The additional state help figures to make it easier for the district to maintain or enhance per pupil referendum levies, by lessening the impact on local property owners and allowing districts to collect more state funding.
Anderson also pointed out that Ely, and all districts across the state, stand to gain from a constitutional amendment on the ballot statewide in November.
The amendment would establish an endowment-style distribution formula of the state’s permanent school fund, which now has assets of approximately $2.3 billion.
If approved, Ely’s current annual allocation of $34,932 would increase by 40 percent.
Superintendent Anne Oelke noted that the district will work to educate voters about the impact.
“This is no increase to any taxpayer,” said Oelke. “It would benefit us.”
“It’s such a no-brainer,” added school board member Tom Omerza. “But you don’t want to take it for granted.”
Anderson’s briefing also turned to the future and the possibility of helium development in northeastern Minnesota.
Legislation this year created the framework for helium extraction, while discussions remain over how any tax revenue may be distributed.
“I think the taxation portion of gas development will be at the forefront of what our regional legislators are working on in 2027,” said Anderson.
Anderson said he has had discussions with U.S. Sen. Amy Klobuchar (D), the front-runner in the race for governor, about the projects proposed in northeastern Minnesota, including Pulsar Helium near Babbitt.
“I think having strong leadership in the governor’s office trying to advance this will be important,” said Anderson. “I think (Klobuchar) understands the importance of this project and this new industry.”
Board member Tony Colarich cited several factors that could allow helium development in the region to take off, including global matters such as Russian action in Ukraine, and war-related destruction of production facilities in the Middle East.
“To have a commercial, domestic source is very valuable,” said Colarich. “All the things I’ve said here speak favorable to the project and hopefully the legislature sees how important the timing is.”
Discussion turned to potential opposition to the helium project and Anderson said, “Anytime we try to do anything in greater Minnesota, there are people opposed to it.”
“As soon as you say mining it offends people,” said Colarich.
Anderson touted the cooperative efforts of local lawmakers - State Sen. Grant Hauschild (D) and State Rep. Roger Skraba (R) - as being instrumental in the work achieved for the Ely district this year.
Omerza said more of that is needed in St Paul.
“Why do you have to go into the legislature with a letter after your name?” asked Omerza. “Who cares? Help your people. That’s what we do here.”
Colarich, meanwhile, thanked Anderson and the Costin Group, which has worked on the district’s behalf for several years and has helped to secure millions of dollars in funding for school improvement projects.
“Without the Costin Group, we would have been in a world of hurt,” said Colarich. “The hard work the Costin Group has done for us since we started working together is greatly appreciated.”
