Hoeven, Legislators Announce $300 Million Education Funding Reform and Property Tax Relief

• February 22, 2008

Today, Governor Hoeven and a group of Republican Legislators in Fargo and Bismarck including Sen. Tim Flakoll and Rep. Kathy Hawken in Fargo, and Rep. Rae Ann Kelsch and Sen. Rich Wardner in Bismarck announced a new property tax, education plan.
After looking through all of the details of the plan and the burden on state funds and property taxes this really is a legit plan. They are addressing two critical issues with one comprehensive package…….
The plan will reduce the average mill levy on property taxes by 50 mills and at the same time boost the State share of education from the current state share of 49% to 66%.
Here’s how it works:
To reduce the tax burden, the state will allocate $200 million in funds on a per-student basis to school districts. This will be ongoing as part of the school aid formula.
The School Districts will receive the state funding by making an equal reduction in property tax revenues. On average the mill levy in a typical school district will decrease by 50 mills. That is a pretty large number when you think about it. On a $200,000 house that is a $450 year property tax savings.
On the Education side an additional $100 million will be set aside for an increase for education, if it gets approved by the Governor’s Commission on Education Improvement. I realize yes, this aspect is an increased in spending, but we have a surplus that could exceed $650 million at the end of hte biennium and I would rather see it used for Education and PROPERTY TAX RELIEF than on some other random project.
So in a nutshell, key details:
State share of education is being re-allocated and will be 66% of local districts rather than the currenty 49% (which means, property tax relief!)
The Local share of education costs is being reduced to 34% from 51%, which my pocketbook (and yours) will thoroughly enjoy.
This is a big property tax cut ladies and gentlemen. One of the better things to happen around here in a long time.

Tags: North Dakota News

http://SayAnythingBlog.com The_Whistler_ofnd

Fargo, what makes you think that your property taxes will stay down after the first year?

On the other hand we’ll have ever higher state taxes keeping up with the spending by the locals since the governor’s buying in to the idea that the state should spend $3 for every $1 that the locals spend. (the remainder is the 10% of what the Feds contribute.)
http://fargorepublican.blogspot.com/ fargorepublican

Whistler – in regard to the $111 million not helping a bit, how do you know it didn’t help a bit? I disagree. I don’t think it was the best route to return money to people, i.e. if you don’t own property you don’t get the money, and the fact that it may be unconstitutional, but in my opinion any chance to have money returned to the taxpayers is a win of some sort. I’m on your side that it wasn’t a good cut, but a cut is still a cut. Read my editorial in your local GF Herald back on December 2nd about it.

Most people haven’t even filed their tax returns let alone received the income tax credit so it remains to be seen how it helps.
http://SayAnythingBlog.com The_Whistler_ofnd

Actually this wasn’t the property tax rebate. It was the additional funding to education. This was a 11% in funding the schools got directly. The GF school system increased spending by another 7.7%.

I didn’t like Hoeven rebate scheme, I thought he should have cut the tax rate although personally I do pretty well this way.
http://fargorepublican.blogspot.com/ fargorepublican

Sorry, I thought what you were talking about was in regard to property tax relief, not education relief.

Sounds like the GF School system has some spending issues! As does Fargo……but I don’t think it is on the same level as GF.
http://fargorepublican.blogspot.com/ fargorepublican

Renni – I agree 100% percent with Whistler, the reason we need property tax relief is because of irresponsible local spending (i.e school board spending, certain unneccesary infrastructure at local level, etc.). The Whistler and I may not agree how to get it fixed but, Renni, unless you can defend the significant increased spending for less students don’t throw stones.
http://SayAnythingBlog.com The_Whistler_ofnd

guess I may have nipped that in the bud.
http://fargorepublican.blogspot.com/ fargorepublican

Whistler – I know our mill levies are outrageously high here as well, I didn’t bother looking into whether or not GF was higher than Fargo, mostly because I don’t care, but you are preaching to the choir about reigning it in that is for sure!
http://SayAnythingBlog.com The_Whistler_ofnd

You’re not going to try pulling the chickenhawk argument out are you?

I sure would hate for you to actually engage in a conversation that defends the spending increases which are a multiple of the inflation rate while enrollments are dropping.

I in fact vote for school board members.
Renni

Just curious, how many of you are school board members?
Renni

I will, however, stick up for school boards on one level. I’ve really only talked to the school board members I know about teacher pay. There was a comment about giving union buddies more pay for less work. Most school board members I know aren’t at all sympathetic about teacher pay and I think the boards and teachers often end up being adversaries, especially when they go to court over something called a base salary payline or something to that extent. Because of this provision, some rural schools are forced to hire substandard teachers because those teachers don’t really want to accept the $22,000 starting salary when they are highly demanded elsewhere.
http://SayAnythingBlog.com The_Whistler_ofnd

But the taxes are out of control in the cities where the schools are paying good money. Grand Forks teachers start out at about 29,000 for 188 days. That would work out to a starting salary of 35,000 to compare it with a private sector year-round job.

Teachers in GF are well compensated in my opinion. I would say very few college graduates start out at that in Grand Forks.

The big problem I see is that every year the GF school board raises spending two or three times the inflation rate. At the same time enrollment is going down.

We’ve also seen with the new superintendent that the school board is willing to pay 40 some percent over the market.

Things are out of control.
Renni

Haha! So quick to jump to conclusions! I simply asked what could be a yes or no question or a “Yes, I once was and this is what happened.” I guess I just like to hear the full story and examples from all sides if they are out there and ready for the hearing.
http://SayAnythingBlog.com The_Whistler_ofnd

After all last years $111 Million didn’t help a bit did it?
http://SayAnythingBlog.com The_Whistler_ofnd

Fargo has the highest education mill rate in the state, by far.

I was surprised by that because I thought they probably had very good property values.

Maybe being a growing community their school population hasn’t been declining.

But GF has issues, oh boy do they have issues.
http://SayAnythingBlog.com The_Whistler_ofnd

I’m sorry I had to disagree with you, but this is just continuing his failed plan from last year but more so.

What’s worse is that he stole the idea from his Democrat opponent for governor. That should be a warning that this is a bad idea for the taxpayer.
http://fargorepublican.blogspot.com/ fargorepublican

I have a hard time not agreeing with it, here’s why…I own a home. I will reap the benefits of a much smaller tax burden. So, for purely selfish reason’s this helps my bottom line…….

I agree, this isn’t the long term solution, but it is nice to see a start rather than little movement at the state level other than the tax cut that nobody understands.
http://sayanythingblog.com robport

Renni, what you describe is exactly why teachers would be better off without a union. Collective bargaining has frozen the ability for individual schools or districts to be flexible with their compensation.

As a taxpayer, I understand that rural schools are going to have to “sweeten the pot” a bit to attract qualified applicants. Unfortunately, the way the system works they aren’t always capable of doing that.

SayAnythingBlog.com

Hoeven, Legislators Announce $300 Million Education Funding Reform and Property Tax Relief

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