The Anoka-Hennepin School Board cut about $4 million from the proposed 2021 property tax levy Dec. 14.
The final levy was $121.5 million, instead of the almost $126 million preliminary levy. The 2021 levy is still an increase of $2.3 million, or 1.9%, over the 2020 levy.
One of the largest cuts from the final levy was the capital projects referendum, which would have added $4.4 million in revenue.
Under the final levy, homes that did not increase in value will see their school district tax payments decrease by about 3.7%. A $250,000 house could see a decrease of about $39 a year, according to the district.
If a home’s value increased by 5-6% — which is the amount the district’s tax base increased — the home would instead see an increase in school district taxes. A home valued at $250,000 the previous year, which appreciated in value to $262,500, would see an increase of about $13 in taxes, according to the presentation.
The district anticipates about $606.6 million in revenue and $694.4 million in expenditures, resulting in an operating deficit of almost $88 million.
About 70%, or $423.2 million, of the district’s revenue comes from state aid, while the property tax levy accounts for about 20%.
Salaries and benefits make up the majority of the district’s expenses, accounting for $479.3 million, or 69%, of expenditures. The remaining expenses go to capital expenditures, purchased services, supplies and debt service, according to board documents.
While the majority of the district’s income is from the state, the basic formula for funding schools has not kept up with inflation. If it accounted for inflation the district would receive an estimated $1,367 more per pupil, according to the presentation. Based on enrollment estimates provided by the district website, that would mean almost $52 million in additional funding from the state.