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ND has money to replace property taxes

Connie Samuelson

Minot

Minot Public Schools are faced with a $6.6M (5.32%) budget deficit going into their 24/25 school year. This stems from the December 2021 bond passing to build a sports complex, a 4 year high school and revamping 2 schools ($108.6M) and projected loss of enrollment ($1.3M). Money is still owed on the 2014 ($39.5M) bond passing. MPS will be closing 2 elementary schools and proposing a building fund levy on our property taxes in the June election. Consideration will also have to be made for further cuts.

Administrators, teachers and staff seem skeptical regarding the proposed measure to abolish property tax in ND. MPS 23/24 budget revenue is $122.1M, of which $77M comes from the State and $16.7M is a general fund levy. In the 2023 legislative session the State increased their share 4% and 3%, respectively, per pupil for the next biennium, generating $5.8M more funds over the next 2 years.

As reported in NASBO, the State’s spending has increased to $19.6B, a general funds increase of 22.1% over the previous fiscal biennium (what have you personally gained from that increased spending?). There was $1.2B left going into the 24/25 biennium. If the measure to abolish property tax gets on the ballot and passes, the tax revenue needed is estimated at $2.3B per biennium.

According to NDenergy, the State of ND has $6.2B in their Common School Trust Fund and $8.2B in the Legacy Fund. Mr. Helm and Mr. Ness have projected 50 more years of oil revenue. ND’s Tax Commissioner reported that taxable sales and purchases were up 11.5% in 2023 and continue to rise. ND has the money to replace property tax budgets for all subdivisions in North Dakota.

Since 2012, the residents of ND have asked for true property tax relief, but the Legislature can’t get it done, and any breaks they give get backfilled by our local subdivisions. The few substantial tax break bills proposed in the past were killed in interim committees or failed to pass on the floor. For these reasons, the school board candidate’s proposed ($820M) legislation that would require the state to pay for public and private education will fail. This lack of activity will continue unless eliminating property taxes becomes a constitutional measure passed by the voters of ND.

The COVID cash-cow has dried up. Long term spending plans on short term revenues do not work. The State legislators need to return the excess revenue back to the citizens of ND, thereby prioritizing their spending before their pet projects and corporate welfare and personal interests.

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