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A push to assess cabin owners for school levies is gaining traction in St. Paul.
Earlier this week, the State Senate’s Education Finance Committee advanced legislation that ultimately could provide additional funding to the Ely School District and other schools across the state.
The legislation corrects changes that were made in the early 2000s that exempted seasonal properties like cabins from paying any portion of school district operating levies or voter-approved referendum levies.
That’s significant in districts such as Ely’s, where there are large numbers of seasonal-recreational parcels. A news release issued by Hauschild suggests the change “could bring in hundreds of thousands of new dollars for their needs. ”
“This bill corrects a wrong in state policy, where some of our most rural school districts are losing out because high-end cabins and second homeowners are not paying towards the local operating levies for the school districts where their second-home resides,” said Hauschild. “With a new seasonal tax base replacement aid program, levy and referendum costs for local residents would be offset by as much as 50 percent, just by ensuring the wealthiest in our school districts pay their fair share for our kid’s education.”
During a Zoom meeting with Ely school officials in late-January, Hauschild floated the proposal and State Rep. Roger Skraba (R-Ely), who was also in on the call, voiced similar support.
This week, the Senate committee heard school districts that would be affected by this legislation, including testifiers from Ely, Grand Rapids, and Lake County.
Ely Superintendent Anne Oelke testified remotely, outlining the budget shortfall facing her district and the likelihood of cuts to come.
“The money generated by non-residential taxpayers should be directed back into our districts rather than redistributed back to the state general fund,” said Superintendent Oelke. “The passage of this bill is necessary to close the funding gap.”
Gina Klieve, superintendent of the Lake Superior School District, which operates schools in Silver Bay and Two Harbors but includes Fall Lake Township in its boundaries, also voiced her support.
“Unfortunately, with that high percentage of seasonal recreation properties, they do not contribute to voter approved referendums, because they are excluded from the referendum market value tax rate. As a result, the financial burden of supporting local schools falls disproportionately on our permanent residents,” said Klieve. “We need this bill, and we need your help to get it there.”
The legislation now awaits a hearing in the Senate Taxes Committee.
