St. Paul Public Schools Board Sets Levy at 2% Less Than Last Year
The St. Paul Public Schools board has unanimously approved a property tax levy for the 2026-2027 school year, which is 2% less than the previous year. The approved levy amount is $216.48 million, a reduction of 1.98% from the previous year. This decrease is attributed to changes in how the state factors costs for retiree health insurance, pensions, severance, and unemployment payments, as well as additional state aid for community service programs.
Factors Affecting Property Taxes
While the levy decrease may seem like a direct reduction in property taxes, it’s essential to note that the actual impact on homeowners will vary depending on factors such as property values, which can fluctuate depending on neighborhoods. Tom Sager, the district’s executive chief of financial services, emphasized that property owners won’t know the exact impact until they receive their preliminary tax statements, as the school district’s property tax levy is just one of many variables that affect overall tax bills.
Reasons Behind the Levy Reduction
District officials attribute the reduction in the levy to changes in state funding for retiree health insurance, pensions, severance, and unemployment payments. Additionally, the district received extra state aid for community service programs, which helped offset some costs. It’s worth noting that local property taxes account for around 20% of the St. Paul Public Schools budget, and a reduction in the district’s levy is not common, with an average annual increase of 3.5% over the past five years.
Upcoming Referendum
In November, voters will be asked to increase the district’s general revenue by $1,073 per pupil for 10 years, starting with taxes payable in 2026. This would result in an additional $309 per year, or $26 per month, for the average St. Paul homeowner, with a median home value of $289,200. If approved, the increase would generate approximately $37.2 million per year in additional revenue, helping to cover the district’s estimated $51.1 million budget shortfall.
Consequences of Not Approving the Referendum
If the referendum is not approved, district officials expect to make at least $37 million in additional budget cuts. This could potentially impact programs and services, as central office departments, which make up 8% of the district’s total budget, would need to be reduced. The district’s fund balance would be used to maintain programs and services as much as possible, but further cuts could be necessary if the referendum is not approved.
Reasons Behind the Budget Shortfall
District officials attribute the budget shortfall to state funding not keeping pace with inflation over the past 20 years, as well as increased expenses. If state funding had kept pace with inflation since 2003, the district would receive approximately $50 million more per year. Additionally, there is uncertainty surrounding potential cuts in federal funding, which could further exacerbate the shortfall.
For more information on the budget and the upcoming referendum, the public can attend the Truth in Taxation and budget hearing on December 2 at district offices. Read more about the St. Paul Public Schools board’s decision to set the levy at 2% less than last year Here
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