Eadm6.310 072 4b Finance

Education Finance ,[object Object],Who Cares?

The Tax Collector School Boards set their own tax rates (called “Mill Rates”), but the municipal governments have to collect them.

Regina Public’s 2002 Budget 2002 Expenditures = $132,552,712

Regina Public’s 06-07 Budget ,[object Object],[object Object],[object Object],[object Object]

Regina Catholic’s 04 & 05 Budgets 2005 Expenditures = $68,999,339 2006-2007 mill rate will increase 2.92%

And the gloves are off . . . .

Horizontal Equity ,[object Object],= =

Vertical Equity Unequal Treatment of Presumed Unequals ≠ ≠

Horizontal & Vertical Equity ,[object Object],[object Object],Or should the amount be based on ability to pay? Horizontal Equity Vertical Equity

Saskatchewan K-12 Funding Local/Provincial Share: 83-84 to 93-94 ,[object Object],0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 83-84 84-85 85-86 86-87 87-88 88-89 89-90 90-91 91-92 92-93 93-94 Percentage Share Local Property Taxes Provincial Grants School Year

Local/Prov. Share, Canada and Provinces, 1989-90 ,[object Object],0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Canada N.W.T. Yukon B.C. Alta. Sask. Man. Ont. Que. N.B. N.S. P.E.I. Nfld. Local/Provincial Share Other Local Property Taxes Provincial Grants

Saskatchewan’s Equalized Mill Rate ,[object Object],[object Object],In order to insure that the property tax levied on Saskatchewan citizens is fair (i.e., that everyone is required to make an equal “tax effort”), it is necessary to insure that:

So how is the “Mill Rate” used to calculate property tax? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Setting a School Board’s Mill Rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Property Taxes in Rex: 2004 ,[object Object],[object Object],[object Object],[object Object],[object Object]

School Property Tax Revenue in Rex, Saskatchewan, 2004 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

A Rex Tax Bill for a house with a “Market” Value of Approximately $100,000 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Topping Up If you can afford it! ,[object Object],[object Object]

Topping Up If you can afford it! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Difference Does it Make? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Foundation Grant Horizontal Equity

What Difference Does it Make? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Humdinger , Saskatchewan Equalized Assessment = $900,000,000 J. Extra $ per pupil $1000 K. Additional cost to taxpayer (100% local) $2,000,000 L. Addition to Mill Rate (K x 1000)÷Assessment 2.22 mills M. Final mill rate 19.62 mills N. % increase in mill rate 12.78% O. On a house with an assessed value of $60,000, school taxes would go up $132.00 TOTAL REVENUE = $17,658,000

Equity Via the Foundation Grant Plan 0 3000 3500 4000 4500 Wealthy System Average System Poor System System Wealth Revenue Source Extras Provincial Grants Property Tax Foundation Grant Ceiling Level (~$5,000+ in 2004) 5500 5000 6000 7000 6500

Where They Spent Your Money Education spending by Saskatchewan school boards, 1999, 2000, 2001

Where Boards Spent Your Money 2001

Eadm6.310 072 4b Finance

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