St. Paul Public Schools Property Tax Levy Set to Increase by 15%
When the St. Paul Public Schools levy referendum approved by voters last month is factored in, property owners will be looking at a 15% levy increase on their property taxes next year if the district’s annual levy is approved later this month. The owner of a median-value home of $289,200 in St. Paul would see a $291 per year property tax increase, around $24 a month.
Prior to voter approval of a special levy increase in the Nov. 4 elections, the school board in September set its annual property tax levy at 2% less than the one a year ago, with a levy amount for the 2026-2027 school year of $216.48 million. District officials attributed that reduction largely to changes in how the state factors costs for retiree health insurance, pensions, severance and unemployment payments, which reduced overall expenses for SPPS.
Community Response to the Proposed Levy Increase
James Kielkopf, whose children attended SPPS, expressed concern about taxes, adding that his mother’s property taxes are going up by $1,000. Kielkopf pointed to the district’s administrative staffing as an area with significant expenses and said officials could do better on saving taxpayers money. Greg Blees, with fiscal watchdog group Insight St. Paul, also shared concerns about St. Paul’s “extremely high property taxes and sales taxes.”
Blees suggested that the district should use already captured taxes to lower its certified levy, citing the end of the Westminster Junction Business Center TIF district, which previously generated $138,000 in annual property taxes and is now responsible for $2.6 million in property tax revenues. The special levy increases the district’s general revenue by $1,073 per pupil for 10 years, beginning with taxes payable in 2026, and is subject to increase with inflation.
Tax Revenue and Budget Implications
Revenue from tax levies on average make up between 20% to 25% of the district’s total budget. In the past five levy cycles, the district’s total levy increased approximately 3.5 percent per year on average, according to district officials. The November special levy referendum received approval from 65% of voters, increasing the district’s general revenue by $1,073 per pupil for 10 years, beginning with taxes payable in 2026.
Without the funding from the voter-approved levy, district officials said they expected to make at least $37 million budget cuts for the 2026-2027 school year. The approved levy will generate approximately $37.2 million per year in additional revenue for the district. Voters approved similar referendums in 2018, 2012, and 2006, with the 2018 levy referendum giving the district $1,180 per student, or $18.6 million per year plus inflation, in new revenue.
Property Tax Refunds and Additional Information
Some St. Paul residents may qualify for tax credits and property tax refunds. To learn more about credit refunds, visit revenue.state.mn.us/homeowners-homestead-credit-refund. Community members wanting to provide comment on the proposed tax levy can contact the district board secretary at Sarah.Dahlke@spps.org or 651-767-8149.
For more information on the proposed tax levy and its implications, visit the St. Paul Public Schools website or attend the upcoming board meeting on December 16. The board is expected to certify the annual levy amount at this meeting. Read the full article Here
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