Minnesota schools ask voters to OK property tax hikes to ease budget strains
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Voters across Minnesota will decide Nov. 4 whether to raise property taxes to raise tens to hundreds of millions of dollars for their local schools.
The big picture: Budget pressures are prompting a growing number of districts to ask homeowners to chip in more for everything from building upgrades to classroom costs.
By the numbers: Seventy school districts across the state have put a combined 96 funding measures worth well over $1 billion on local ballots.
- Over a dozen of those questions in the Twin Cities metro, per KSTP.
Zoom in: Forty-four of those are general operating levies, meaning revenues can be used for day-to-day expenses like salaries, transportation and materials.
- Many of the others earmark funds for building renovations, new technology updates and security upgrades.
State of play: The number of general operating levies — 44 — is up significantly, from about 30 in a typical off-year election, Minnesota School Boards Association executive director Kirk Schneidawind told Axios.
Follow the money: Minnesota schools have received what top politicians have hailed as "historic" increases in the per-pupil funding formula in recent state budgets.
Yes, but: School leaders say the hikes still aren't keeping up with their expenses.
- New state mandates — including payroll tax obligations under the upcoming paid family leave program — and ongoing funding gaps for special education add more pressure, they argue.
What they're saying: "Inflationary pressures are real for our districts," Schneidawind said. "They're feeling it, whether it's operational, labor, health insurance, property/casualty [insurance], the costs for those things just keep elevating."
Between the lines: Because state law sets a 10-year cap for school levy asks, some districts are returning to voters this year to ask for reauthorization of funding they've come to rely on, Schneidawind noted.
Friction point: The asks can add stress for property owners, many of whom are already sweating steep increases in city and county taxes.
Case in point: The owner of a median-valued St. Paul home could see their property taxes jump by over $500 a year if the local measure to generate an additional $37.2 million a year for schools passes on top of annual levy increases proposed by the city and county.
The stakes: In many cases, district officials warn that deeper cuts could be on the table without approval.
- Shakopee leaders say they'll have to reduce spending by $11 million — the equivalent of 70-80 teaching positions — if voters reject a pair of measures that would generate more cash for their schools.
The fine print: The district plans to cut $3 million from next year's budget even if the new operating levy — which asks the average homeowner to pay an additional $105 a year— passes.
Zoom out: Over a dozen districts are asking voters to approve bonds to pay for new buildings, security systems and tech.
- Hopkins' proposal, which would cost the average homeowner about $85 a year, would pay for upgrades like cameras and alarms, in addition to remodeled classrooms, bathrooms and outdoor spaces.
What we're watching: What percentage of this year's levies pass, as voters have shown more willingness to reject funding proposals in recent elections.
- Almost half of the school funding questions on spring ballots this year failed, WCCO notes.
- For much of the 2010s, the pass rate for operating levies was over 60%, per MSBA data.
Go deeper: You can see whether a school referendum is on your local ballot via the Secretary of State's website.