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Slide 2 INCREASED EQUALIZATION Enhanced Opportunities for Students Property Tax Relief + = Slide 3 Ordering Your Pizza http://www.youtube.com/watch?v=Thailal4iZs Slide 4 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 3 Slide 5 Factors Affection STMA Budgets Actual vs. Inflation State aid - 63% of obligation Equity some are not like the others Equalization handicap Slide 6 The Basic Formula Has Not Kept Up With Inflation The basic formula provides the majority of the funding that districts receive from the state 5 Slide 7 6 Source: MN2020 Slide 8 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 live 81% of our revenue comes from the state 7 Slide 9 2012-13 Revenue Rankings Slide 10 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 9 Slide 11 Opportunity Gap - Annual cost to residential taxpayer for a $1,633 per pupil school levy per $100,000 assessed value: Where do you live? Hopkins$153 St. Louis Park$157 Edina$184 Roseville$227 Minneapolis$253 Annandale$340 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 10 Source: Minnesota Department of Education Slide 12 11 Slide 13 Equalization is for Students and Taxpayers The intent of equalization was to make the cost of a school levy dollar uniform across the state so ALL districts have the same ability to raise school levy revenue for their students 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 1993. % Levy = Districts referendum market value per student $476,000 (equalizing factor) 12 Slide 14 The Erosion of Equalization St. Michael Albertville Public Schools 13 Slide 15 What can you do? Email or call your legislators Make equalization a priority during the 2013 Legislative Session Receive SEEs electronic legislative updates and alerts Sign up online, www.schoolsforequity.org For more information, go to www.schoolsforequity.org www.schoolsforequity.org All public school children must have equal access to a high quality education regardless of where they live in Minnesota! 14