Today, Governor Hoeven and a group of Republican Legislators in Fargo and Bismarck including Sen. Tim Flakoll and Rep. Kathy Hawken in Fargo, and Rep. Rae Ann Kelsch and Sen. Rich Wardner in Bismarck announced a new property tax, education plan.

After looking through all of the details of the plan and the burden on state funds and property taxes this really is a legit plan.  They are addressing two critical issues with one comprehensive package......

The plan will reduce the average mill levy on property taxes by 50 mills and at the same time boost the State share of education from the current state share of 49% to 66%. 

Here’s how it works:

To reduce the tax burden, the state will allocate $200 million in funds on a per-student basis to school districts. This will be ongoing as part of the school aid formula

The School Districts will receive the state funding by making an equal reduction in property tax revenues.  On average the mill levy in a typical school district will decrease by 50 mills. That is a pretty large number when you think about it.  On a $200,000 house that is a $450 year property tax savings.

On the Education side an additional $100 million will be set aside for an increase for education, if it gets approved by the Governor’s Commission on Education Improvement.  I realize yes, this aspect is an increased in spending, but we have a surplus that could exceed $650 million at the end of hte biennium and I would rather see it used for Education and PROPERTY TAX RELIEF than on some other random project

So in a nutshell, key details:

State share of education is being re-allocated and will be 66% of local districts rather than the currenty 49% (which means, property tax relief!)
The Local share of education costs is being reduced to 34% from 51%, which my pocketbook (and yours) will thoroughly enjoy

This is a big property tax cut ladies and gentlemen.  One of the better things to happen around here in a long time. 

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