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.

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.

With the voter approved special levy increase, the total proposed levy for taxes payable in 2026 is now $253.73 million or 14.89% more than the previous year. 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. Other factors such as property valuation also play a role in final property taxes.

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.

Board members on Tuesday heard feedback from the public on the proposed levy amount. At this point, the board can lower the annual levy amount, but not raise it any higher. It is expected to be certified by the board Dec. 16 at their regular board meeting.

Community response

James Kielkopf, whose children attended SPPS, said he is concerned 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.

“It’s an extremely expensive increase in taxes that’s happening in St. Paul,” Kielkopf said.

Greg Blees, with fiscal watchdog group Insight St. Paul, said the group is concerned with St. Paul’s “extremely high property taxes and sales taxes.”

He said 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.

Tax revenue

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. The 10-year tax is subject to increase with inflation.

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. The 2018 levy referendum gave the district $1,180 per student, or $18.6 million per year plus inflation, in new revenue. The 2018 levy is a 10-year levy and the school board could renew it before it expires.

Property tax refunds, more comment

Some St. Paul residents may qualify for tax credits and property tax refunds. To learn more about credit refunds, go to 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.

SPPS general fund totals by year

Here’s a listing of previous general fund totals for the district by year:

• 2015-2016: $562.2 million.

• 2016-2017: $561.1 million.

• 2017-2018: $561.3 million.

• 2018-2019: $590.7 million.

• 2019-2020: $624.3 million.

• 2020-2021: $632.2 million.

• 2021-2022: $703.7 million.

• 2022-2023: $719.27 million.

• 2023-2024: $801.1 million.

• 2024-2025: $749 million.

• 2025-2026: $767 million.

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