Minnesota could raise property taxes on residents as local school districts look for additional funding.
Within the state, 45 local teachers’ union chapters have reached out for extra financial support, according to Education Minnesota. That’s up to three times the usual number at this point in the year.
Why It Matters
Over the past several years, rising property taxes have contributed to a nationwide housing affordability crisis.
Redfin reported that between 2019 and 2024, property tax bills went up in nearly every U.S. metropolitan area. Nationwide, property taxes climbed by nearly 30 percent during the same time period, reaching a monthly median of $250.
What To Know
School districts in Minnesota have until August to decide on which funding requests could appear on election ballots this fall.
“I can guarantee that every educator who volunteers on a referendum campaign this fall would rather be focused entirely on their students, but right now our schools are at the mercy of forces outside their control,” Education Minnesota President Denise Specht told the Minnesota Star Tribune.
In the St. Paul school district, teachers are considering a ballot proposal that would request as much as $37 million annually. Marshall, St. Michael-Albertville, and Goodhue schools are also considering funding requests, despite their history of not collecting voter dollars for public schools.
In Crosby-Ironton, voters may be asked to pay an additional $1.5 million per year or risk a four-day school week and the end of many extracurricular activities, according to the Star Tribune.
Last year, 45 school districts requested additional taxpayer dollars, but few were able to secure voter approval.
The lack of funding can translate to job cuts, as seen in St. Paul, which faced a $51.1 million gap this year and had to implement administrative cuts and reduce its early childhood programs.
“When it comes to public education, property taxes are a primary funding source. Across the country, the best-performing schools are often in areas that invest heavily in them—largely through property tax revenue,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
“That’s not a surprise to most, though it remains a point of debate in many places.”
What People Are Saying
St. Michael-Albertville Schools Superintendent Ann-Marie Foucault told the Minnesota Star Tribune: “We continue to lose outstanding educators and staff to neighboring districts with more stable and competitive funding structures.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The need to hike taxes to cover rising costs for public schools is nothing new and is in fact something we’re seeing more of nationwide, as many school districts are struggling with increased expenses. These proposals on increasing property taxes, however, are coming at a time when many Americans are tapped out financially, not to mention dealing with across the board higher expenses pertaining to home ownership due to near-all-time-high valuations on property.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “It’s no secret—many cities are trying to raise revenue due to declining commercial property values and rising labor costs. Inflationary pressures continue to bleed into municipal budgets, and raising property taxes has become one way to shore up those deficits.”
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: “Schools are feeling the inflation pinch like everyone else. Teachers, Administration, and Staff need cost of living raises, and buildings and structures need repair and renovation. Everything costs more this year compared to the years past. Schools are likely catching up after the election year, as increased spending and taxes are never popular during an election year.”
What Happens Next
Today, more than 70 percent of Minnesota school districts get financial help from voter-approved tax measures.
For the coming year, districts have until August 12 to decide on the financial requests they will include on the next election ballot.
“Providing more funding to schools is rarely opposed, but finding support for a bump in property taxes even for a noble cause could find more opposition than usual,” Beene said.
The post Minnesota Could Put Property Tax Rise to Voters appeared first on Newsweek.
