Education property tax blasted

The next Manitoba government should eliminate education property taxes, even if that means dipping into Manitoba Hydro’s profits or raising income taxes to close the mega-million dollar gap.

A coalition of farmers, realtors and cottageowners launched an offensive Monday against the education tax that funds local school divisions and has become a perennial election issue.

The groups, which include the Keystone Agricultural Producers and the Manitoba Chambers of Commerce, want the levy eliminated, including immediate action to increase the province’s share of education funding to 80 per cent. Right now, it stands at about 65 per cent of day-to-day funding, though the province says it’s more like 75 per cent when capital projects and teachers’ pensions are factored in.

Monday, the groups launched what they’ve dubbed the Let’s Pay Fair campaign, which includes a website and lawn signs.

Eliminating education property taxes would leave local school boards with a collective $650-million budget gap, even with the menu of credits and rebates the NDP has introduced in the last several years to ease the sting of rising education taxes, especially for seniors and farmers.

Manitoba Real Estate Association President Lorne Weiss says education ought to be funded from general revenues just like health care.

The tax punishes those on fixed incomes because it doesn’t reflect a person’s ability to pay, he said. Seniors may live in homes that have increased in value while their pensions have stagnated. Cottagers pay education taxes twice, but can’t vote for school trustees in the division where they holiday. “This isn’t fair taxation,” said Weiss.

Weiss said he would support a small income tax increase if there was a corresponding decrease in the education tax.

Or, the coalition has suggested skimming some of Manitoba Hydro’s profits — routine practice in nearly every other province with a Crown power company.

But Hydro’s profits can fluctuate dramatically. Last year, Hydro netted $163 million, decent but well short of the $650 million education gap. And, with Manitoba Hydro’s long-term finances under scrutiny thanks to a $20 billion building spree planned for the next decade, some would argue that Hydro needs to keep every penny it earns.

At an education debate last week, all three party leaders stole some of the coalition’s thunder by committing to reducing education property taxes to the 80-20 target.

Instead of across-the-board cuts, it’s likely all parties will choose to bolster the existing credits and rebates that have already shaved hundreds of dollars off property tax bills.

Liberal Leader Jon Gerrard will unveil a promise later in the campaign to eliminate the education levy for seniors. And on Monday, leaked details of the Conservative party platform included a $700 property tax credit to cottage owners.

A Tory spokesman categorically ruled out raising income taxes to pay for education.

NDP MLA and party spokeswoman Jennifer Howard said the same, adding that farmland has already reached the 80 per cent target thanks to one of several NDP rebate programs.

http://www.winnipegfreepress.com/local/Education-property-tax-blasted-128666318.html

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School division pitches tax hike







People who live in Winnipeg’s largest school division will likely be paying more in school taxes this year.

Trustees for the Winnipeg School Division (WSD) have tabled a draft budget calling for a hike in the education property tax levy of 1.9 per cent.

That translates into $19 more in property taxes on most homes. That number is based on the recent property tax reassessment in which the average assessed value on a home increased by 74 per cent, according to the WSD.

The draft budget of $331.1 million will sustain existing programs but does not include funding for new ones.

If that is needed, the money will be found through a reallocation within the budget, Kristine Barr, chair of the board of trustees’ finance and personnel committee stated in a press release issued Thursday.

“We are mindful of the current challenges in the economy and the importance of preparing our students for the future,” Barr stated, noting this is the third consecutive year the division’s tax levy increase will be below two per cent.

“Despite increasing cost pressures in all categories of expenditures from water and heating costs to salaries and benefits, the overall increase in expenditures in the budget has been kept at 2.5 per cent,” she stated.

The board will consult with stakeholders on the draft budget throughout February before making a final decision.

That includes a public forum Feb. 22 at 7 p.m. at the board office on Wall Street.

Established in 1871, the WSD is the largest of six public school divisions in the city. It includes 77 schools and more than 33,000 students.

http://www.cbc.ca/news/canada/manitoba/story/2010/02/04/mb-school-taxes-increase-winnipeg.html

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School divisions freeze education property taxes





THE province’s two largest school divisions have frozen education property taxes — and four other city divisions also are in the freezing mood.

They’ve all either accepted the province’s tax-incentive grant, or have recommended trustees accept the TIG by next Tuesday’s deadline for setting school budgets.

Both Winnipeg and River East Transcona school divisions have already accepted the TIG, additional provincial cash that requires trustees to agree to limit spending increases to a combination of the grant and of the division’s increase in provincial operating grants.

Only Seven Oaks had been looking seriously at a tax increase, but superintendent Brian O’Leary said Tuesday the province increased its initial offer of TIG by $1.1 million.

Without that extra money, “we would have had difficulty maintaining staffing ratios,” O’Leary said.

“Our costs are still increasing as enrolment increases,” he said. “We need to plan for an increase of 450 to 500 students next year.

“Essentially, we’re holding the staffing ratios constant,” O’Leary said.

Winnipeg S.D. finance chair, trustee Joyce Bateman, said the division has adopted a status quo $341.8-million budget that maintains existing programs and services for students.

Both St. James-Assiniboia and Pembina Trails draft budgets called for trustees to accept the TIG.

St. James-Assiniboia is telling its taxpayers it’s holding the line, despite the province providing millions of dollars more in equalization payments to Seven Oaks.

Seven Oaks, in turn, has for years argued it spends less per student than St. James-Assiniboia, because Seven Oaks lacks the commercial assessment base SJA enjoys.

Louis Riel board chairman Gary Gervais said he expects trustees to accept a $1.4-million increase in TIG and to freeze taxes at a budget approval meeting Monday.

“There are no cuts” necessary because of the decision to freeze taxes, said Gervais, though there’s no money for anything on the administration wish list.

http://www.winnipegfreepress.com/local/school-divisions-freeze-education-property-taxes-117634843.html

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Province boosts funding for schools

Education Minister Nancy Allan put $30 million on the table Thursday, but that may not be even half the story.

Allan increased operating grants for the public school system by 2.7 per cent, marking the 12th straight year the funding boost exceeds the provincial economic growth rate.

“You might call it spending,” Allan told reporters. “I call it an investment.”

Every school division gets at least a 2.2 per cent guaranteed increase in its operating grant under the complex, confusing, and convoluted formula that determines how a $1.9-billion public education system gets divvied up.

But Allan is saving for another day the key to whether school trustees will raise taxes, or whether they’ll agonize over cuts to jobs, programs and services.

Tax incentive grants (TIG) will be around for another year, but as to how much money is available and what each division could get, Allan says: “It’s not part of the announcement.”

This past year, the Selinger government handed out $39.7 million in TIG to school divisions that agreed not to raise school property taxes. Only four divisions, all rural, opted for significant property tax increases.
“As minister of education, I would prefer that no one increase property taxes,” she said.

Allan emphasized the province’s goal of reducing Manitoba’s dropout rate while increasing the graduation rate — she expects legislation will be ready for September that requires students to stay in school until the age of 18, unless they graduate from high school earlier.

“This is going to be a cultural shift for our province. This is a long-term vision for our province,” she said.

Allan said $1.3 million in new money for special-needs students is significant, even though special needs is the largest single source of increased spending in the 2010-2011 school year, when spending on student support services soared by $20.3 million.

Allan ventured tentatively into school divisions’ biggest budget ticket — teachers’ salaries — by observing teachers understand the economic climate and can see what other public sector employees are receiving in their contracts. But she would not say whether teachers should be prepared to accept lower level of raises from recent years.

Manitoba Teachers’ Society president Pat Isaak applauded the increases, singling out new spending on early childhood education. But, Isaak cautioned, “TIG has received mixed results. It has impacted on school programming and support for schools.”

Isaak urged trustees not to accept a tax freeze if it meant cuts in the quality of education and not to sign away their ability to raise taxes: “We have concerns about anything that restricts that (taxing) authority.”

Manitoba School Boards Association executive director Carolyn Duhamel called Allan’s announcement positive “given the economic climate in the province.”

But Duhamel said the key will be how much TIG each division is eligible to receive.Tory Leader Hugh McFadyen denounced Allan’s funding as the latest in a long line of NDP failures.

“We know they’re good at spending money,” yet international testing conducted by The Organization for Economic Co-operation and Development shows Manitoba students have dropped over the last decade to near the bottom in Canada in math, science, and reading, he said.

“It’s spend more, get less,” McFadyen said. McFadyen said repeatedly the Tories would work with principals and teachers on improving student performance, but would not give specific details about a Conservative education plan.

http://www.winnipegfreepress.com/local/province-boosts-funding-for-schools-114783849.html

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Manitoba gov’t boosts funding for public schools despite deficit

WINNIPEG – The Manitoba government is boosting funding for public schools this year by $30 million, or 2.7 per cent.

Education Minister Nancy Allan says the government will also offer an incentive grant to encourage school divisions to freeze property taxes for the fourth year in a row.

The government is in the middle of five straight deficit years, but Allan says quality education is needed for economic growth.

The opposition Progressive Conservatives say the government is simply throwing money at schools without getting results.

Tory Leader Hugh McFadyen says the cost of educating a student has shot up by 40 per cent since 1999, yet Manitoba continues to score low on national reading, science and math assessments.

http://www.globalwinnipeg.com/Manitoba+boosts+funding+public+schools+despite+deficit/4178640/story.html

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Education funding takes a dip

Manitoba’s public schools will be dealing with a much smaller funding boost next year.

The provincial government announced Thursday that it is increasing funding by 2.95 per cent for the 2010-2011 school year, which is a significant drop from the 5.25 per cent increase provided for the current year.

However, Education Minister Nancy Allan said the funding is considerable in comparison to the expected rate of economic growth.

The Manitoba economy was forecast to contract by 0.2 per cent in 2009, but a final number hasn’t been determined.

“I strongly believe that a 2.95 per cent increase to public schools, despite difficult economic times, demonstrates this government’s commitment to education and will help meet the needs of parents, students and taxpayers across the province,” Allan said.

“We have been working co-operatively with school divisions and we are continuing to urge restraint in order to ensure that expenditures are managed carefully and property taxes remain affordable.”

The 2.95 per cent increase equates to an additional $31.3 million dollars for Manitoba’s 37 school divisions.

Statistics Canada has reported Manitoba is the only province to have seen average property taxes decrease from 2000 to 2008, Allan noted.

Read more: http://www.cbc.ca/canada/manitoba/story/2010/01/28/mb-education-funding-manitoba.html#ixzz11jDaVSrO

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Prepare to get hosed

Education Minister Nancy Allan has signalled that property owners should prepare to be hosed by education tax increases this year.

Ms. Allan, of course, did not frame the signal in those words — she said this week that the government will not order school divisions to freeze tax rates — but it cynically amounts to the same thing.

Ms. Allan has not been long on the job. But she has been on the job long enough to know that a perfect storm is gathering around education property taxes, one from which she should be seeking to shield taxpayers. But instead, she declares it’s every school division for itself.

The perfect storm starts with the divisions, which have been agreeing to pay more teachers much more money to teach ever fewer children. Contract settlements have reached several times the rate of inflation, the most recent at 4.8 per cent, which will quickly become the norm for all. Why the settlements are so high is anybody’s guess in the current economic climate. But given the current economic climate — the government, which promised a balanced budget last spring, is already $600 million in deficit — the province is not going to be paying those wage increases, which leaves the hapless property owner, as Ms Allan must know.

To complicate — or is that implicate? — the situation, tax assessments this year have climbed on average 67 per cent under the recent reassessment. That dramatic rise, however, should not lead to a dramatic increase in property taxes. If everyone follows the City of Winnipeg’s policy of cutting mill rates by a 67 per cent equivalent to offset the expanded assessment base, a tax grab by stealth will not occur. That’s a policy, however, that the school divisions have ignored in the past, claiming to have frozen tax (mill) rates knowing that they would raise more lucre anyway. In 2002, for example, Winnipeg division raked in an extra $8 million under the scheme.

And what are taxpayers getting for this? The NDP government in its wisdom refuses to require standardized tests so there is no way of knowing. All we know is that in the absence of data, the province has reduced the school year from 200 days to as low as 193 to placate Labour Day vacationers, and it has guaranteed teachers that 10 of those days will be set aside for professional development.

At the same time, there are 136 more teachers on the job, in part because the government did not want to appear soft on obesity and declared that the reduced time in class should be further reduced by sending students to the gym.

So why is Ms. Allan ignoring all this and refusing to freeze education taxes? Because, while she’s a new minister, she is playing the same cynical game as the old ministers.

The government needs money, now more than ever, to cover the fact that its spending problems are bigger than its revenue problems in these tough times. Giving the green light to school divisions relieves the government of its responsibility to properly fund public education, as opposed to public education tax rebates.

But even more cynical is that, while the government refuses to accept responsibility, it hectors and lectures school trustees for raising property taxes in the absence of sufficient provincial funding.

Which is what Ms. Allan announced — she will not freeze taxes, she instead will pass judgement when taxes are raised.

So prepare to get hosed. But don’t blame the boards. This is the minister’s doing.

http://www.winnipegfreepress.com/opinion/editorials/prepare-to-get-hosed-81060087.html

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Education department releases financial data

How can the province and education property taxpayers pump $93 million of new money into the public school system this year, yet have spending go up by $72.5 million?

How can spending within the $1,816,127,082 public school system go up by 4.2 per cent this year, but record spending per student increase by 4.6 per cent?

OK, the numbers in the department of education’s annual financial report are mind-boggling, and the funding of Manitoba public education is complex.

But let’s try.

The answer to the first question is that the NDP has switched its funding focus from improving the quality of education, to freezing, or at least holding down, education property taxes.

Money going into the system exceeds money spent because the province offered tax incentive grants to divisions willing to freeze their taxes. It increased education property tax credits, money which comes off property owners’ tax bills without ever going into a classroom. And the government ordered school divisions to spend their surpluses down to two per cent of revenue — in effect, spending “old” money in contingency reserve funds — rather than raise taxes.

Only 12 divisions passed up the tax incentive grants back in March when they set mill rates for this school year.

Those divisions chose to raise property taxes, because they believed that the price for tax freezes would mean cutting jobs, programs or services, or passing up improvements.
But the second question — how can spending per student go up at a higher rate than spending?

Those provincial data suggest that as enrolment declines — as it has been throughout the decade — that school boards are not reducing the number of people on the payroll. So even though there are fewer students, there are just as many classroom teachers, administrators, and resource teachers.

Opposition leader Hugh McFadyen said Wednesday that he has no problem with lower class sizes: “That is a good thing. It’s a reflection of the decline in enrolment. As a parent, I think it’s positive.”

But McFadyen said administration costs should be dropping as student numbers fall — keep the frontline teachers, but find ways to cut overhead, he said.

“The government has used tax-incentive grants to temporarily keep property taxes down,” but that’s not sustainable, McFadyen said.

Former education minister Peter Bjornson had threatened to cap education spending in this coming March’s budgets, and possibly even impose tax freezes across Manitoba. He had not committed to continuing tax-incentive grants to help achieve tax freezes.

Bjornson is gone and his successor, Nancy Allan, will not grant media interviews, at least until the end of the month, say her aides.

Meanwhile, if you want proof schools have as many teachers while students decline, try this — the pupil/teacher ratio dropped this year from 17.6 kids per classroom teacher to 17.4, the pupil/educator ratio from 14 to 13.9.

Look almost anywhere in the system, and costs per student go up faster than overall costs.

Student support services are up 4.8 per cent, for example, but by 5.2 per cent per student.

OK, you’re asking, doesn’t overall spending of 4.6 per cent exceed inflation?

Of course it does, but the base wage increase for teachers for several years has been three per cent plus cash bonuses of as much as $500, and many teachers also receive increments as they move up in seniority.

Louis Riel School Division settled this year for a contract that gives each teacher pay equal to the highest rate paid anywhere else in the city for that teacher’s level of qualifications and years of service, a contract the Manitoba Teacher’s Society’s website says is an overall 4.82 per cent increase. It’s likely many teachers elsewhere will seek a similar deal for 2010-2011.

There are other intriguing tidbits to be found amid the number-crunching.

While enrolment is inexorably dwindling, schools are busing an additional 697 kids this year, and running buses almost 500,000 more kilometers — where there’s been growth, it’s phenomenal rural growth, primarily in the rural areas around Steinbach and Winkler.

http://www.winnipegfreepress.com/local/education-department-releases-financial-data-70603797.html

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An Example in Winnipeg Manitoba Where Development Decision Adverse Tax Base

THE Selinger government’s decision to buy a “field of dreams” for Gordon Bell high school will cost the Winnipeg School Division at least $27,800 in taxes every year, city records show.On Tuesday, the province announced it will pay Canada Post $3.8 million for a triangular patch of vacant land bounded by Portage Avenue, Broadway and Borrowman Place. The 2.5-acre property, which once housed Midway Chrysler, was slated to become a letter-sorting depot before community activists lobbied for more inner-city green-space.

In 2007, the last year Midway Chrysler owned the land, the property generated slightly more than $71,000 in city and provincial taxes, including $27,300 in municipal property taxes, $27,800 for the Winnipeg School Division and $16,000 in provincial education support levies, city records show.

The land would have generated even more revenue as a letter-sorting facility, said city assessor Nelson Karpa.

“It is accurate to say that rehabilitated as a Canada Post building, it would have made more,” he said in an interview.

As a school property, the triangular field will not generate any tax revenue.

“Under the Municipal Act, schools are exempt,” Karpa said. “The school division is out money, as are school divisions in general.”

On the positive side of the tax ledger, Canada Post’s decision to move its letter-sorting depot to the West Alexander neighbourhood should result in some new revenue for the city and province. The Crown corporation plans to bulldoze existing properties at Ellen Street and McDermot Avenue.

“Certainly, if you were to tear down older rental housing and put up a modern building, the end structure would have a higher value,” Karpa said.

Point Douglas Coun. Mike Pagtakhan, who represents West Alexander, said he’s happy to see redevelopment in the inner-city neighbourhood.

A city property-department memo obtained by the Free Press in June warned the field would have “a real penitentiary feel” because a three-metre-high chain link fence must be built around its perimeter.

http://www.winnipegfreepress.com/local/decision-costly-to-school-divisions-tax-base-78850137.html

Yet the “Other Side of the Storey”

Gordon Bell’s green dream will be realized.

The province and Canada Post have struck a deal that will give the inner-city high school some much-needed recreational and green space.

Education Minister Nancy Allan told an exuberant crowd in the West Broadway school gymnasium the province will be kicking in $5.3 million for the project on the site of the former Midway Chrysler property just to the west of Gordon Bell High School at Borrowman Place and Portage Avenue. The province will spend $3.8 million to buy the land from Canada Post and another $1.5 million to develop it.

Allan praised students, staff, parents and other community organizers for their perseverance in bringing the plan for the 2.5 acres of land to fruition.

“Most of all, I’d like to thank the students,” Allan said. “You had a vision, you had a dream, you never gave up … you believed this is what was best for your community.”

Canada Post had been planning to build its new downtown distribution centre on the lot adjacent to Gordon Bell but has located an alternative site near Ellen Street and McDermot Avenue.

Grade 12 student Johnathan Kopchuk said he was overjoyed plans for the green space came through.

“I’m just really happy we won’t have to play on concrete anymore,” Kopchuk said. “We’ll get to play outside on some of that good old green grass stuff.”

http://www.winnipegsun.com/news/winnipeg/2009/12/09/12088606-sun.html

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Property Reassessment Underway in Manitoba

Property reassessment for the 2010 tax year is now underway to support fairness in property taxation, Intergovernmental Affairs Minister Steve Ashton announced today.

“Frequent reassessments are necessary to keep our property tax system equitable,” said Ashton. “While property assessments across the province are increasing, it is important to remember this does not necessarily result in an increase in your property taxes.  Usually only properties with above?average assessment increases may see a property tax increase.” Continue reading

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