INCREASED EQUALIZATION Enhanced Opportunities for Students Property Tax Relief

1. = + INCREASED EQUALIZATIONEnhanced Opportunities for StudentsProperty Tax Relief

2. Ordering Your Pizza http://www.youtube.com/watch?v=Thailal4iZs

3. Education Funding IS a State Constitutional Mandate 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

4. Factors Affection STMA Budgets • Actual vs. Inflation • State aid - 63% of obligation • Equity – “some are not like the others” • Equalization – “handicap”

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

6. Source: MN2020

7. 81% of our revenue comes from the state 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

8. 2012-13 Revenue Rankings

9. 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

10. Opportunity Gap - Where do you live? Annual cost to residential taxpayer for a $1,633 per pupil school levy per $100,000 assessed value: Source: Minnesota Department of Education

12. 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. District’s referendum market value per student % Levy = $476,000 (equalizing factor)

13. The Erosion of EqualizationSt. Michael – Albertville Public Schools

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