INCREASED EQUALIZATION Enhanced Opportunities for Students Property Tax Relief + =

The stability of a republican form of government depends mainly upon the intelligence of the people, it is the duty of the legislature to establish a general and uniform system of public schools. The legislature shall make such provisions by taxation or otherwise as will secure a thorough and efficient system of public schools throughout the state. Minnesota Constitution Article XIII, Section 1 Education Funding IS a State Constitutional Mandate 2

The Problem … State funding has not kept pace with increasing costs and annual inflation More than 90% of school districts rely on school levies to maintain basic educational opportunities. ▫ This equates to higher local property taxes Local school levies are not equal ▫ Taxpayers pay more or less for the same school levy dollars depending on where they are located 78% of our revenue comes from the state 3

The Basic Formula Has Not Kept Up With Inflation The basic formula provides the majority of the funding that districts receive from the state 4

Source: MN2020

Districts rely on voter-approved school levies School levy revenue is primarily generated by local property taxes The Legislature caps local levies at $1,633 per pupil The cost to the taxpayer “per levy dollar” is based on the individual property wealth of each district, which varies greatly across the state ▫ Significant commercial and industrial development lowers the overall taxpayer cost for a school levy for all property owners in a school district ▫ Our district is a low-property wealth district, which means we pay more than our neighbors in property-rich districts but receive less school levy revenue 6

Hopkins$153 St. Louis Park$157 Edina$184 Roseville$227 Minneapolis$253 Annandale$306 Rockford$352 Delano$358 Maple Lake$369 Howard Lake-Waverly-Winsted$379 Monticello$387 Buffalo$409 Elk River$411 Big Lake$476 Dassel-Cokato$494 St. Michael-Albertville$497 Source: Minnesota Department of Education Annual taxes for local business and home owners for a $1,633 per pupil school levy per $100,000 assessed property value: Staying Competitive- Where Are You located?

Equalization is for Students and Taxpayers The intent of equalization was to make the cost of a school levy dollar uniform across the state. This ensures that local business and home owners in a property poor district do not pay significantly more in property taxes to generate the same amount of levy revenue for the local schools It's a "match" of state aid to provide tax relief for citizens in low property wealth districts Calculation of the state aid/local levy split: The equalization factor has not been adjusted since % Levy = District’s referendum market value per student $476,000 (equalizing factor) 8

The Erosion of Equalization Buffalo Area Public Schools Source: Schools for Equity in Education

Annual property tax per $100,000 of assessed property value for the district’s school levy * Cost could be reduced if only the first $700 of levy was equalized at the increased level as under current law

What can you do? or call your legislators ▫ Make equalization a priority during the 2013 Legislative Session Receive SEE’s electronic legislative updates and alerts ▫ Sign up online, For more information, go to All public school children must have equal access to a high quality education regardless of where they live in Minnesota! 11