As aid drops, board OKs 6% levy bump

During a special Truth in Taxation hearing Monday, Cloquet school board members unanimously approved a 2022-23 budget of nearly $47 million, including a levy increase of 6 percent, payable in 2023 for the 2023-24 school year. The $7.4 million levy makes up 16 percent of the school district revenues; the other $39.6 million in revenues come from state and federal aid and other local sources including fees and grants.

The levy is paid through local property taxes, which are increasing significantly for next year due largely to a hot housing market and increased costs for local government.

District business manager Candace Nelis said property assessments in Cloquet increased by 26 percent for taxes payable in 2023, according to county assessor Kyle Holmes, with county values going up by closer to 30 percent. She and superintendent Michael Cary explained that the rise in values will affect the way the state allocates equalization funds, which could put a heavier burden on taxpayers. “We have more levy and less [state] aid,” Nelis explained.

Cary said they’re discussing the equalization issue with state legislators.

“Just because property values went up, it doesn’t mean people are more wealthy,” he said.

Unlike other local elected bodies, school boards do not determine their own budget or levy amount: the state does that. The job of school boards and school administration is to determine how best to spend those funds to fulfill their mission of providing young people with the best education possible.

On Monday, Nelis took the board on a tour of budget and levy slides and graphics, explaining and comparing different aspects of the school district budget.

Nearly half of the levy — paid through property taxes — goes to payments on voter-approved debt on the middle school mostly. Sixty-nine percent of the spending goes toward salaries and benefits.

Compared to schools of similar size, Cloquet falls in the middle of the pack in terms of cost per student, as determined by average daily membership. The per-pupil cost in Hermantown is $3,200, versus $2,800 in Cloquet and $1,700 in Hibbing (where it would be $2,300 if not for the taconite credit).

Nelis noted the levy dropped last year.

“Yes, it’s a 6-percent increase, but we did have a 2-percent decrease last year, so over two years, it’s about a 2- or 3-percent increase per year,” she said.

In other matters Monday:

• The board approved a general policy for large-scale fundraising and/or naming rights in light of a soon-to-begin drive to raise funds for a turf field at the high school athletic complex.

According to the policy, the board must approve any agreement. They would consider conditions, conflict of interest, and whether the gift is consistent with the values and educational mission of the district. There would be no changes to names of facilities that are already named, so Rol Bromberg Field would not be renamed. Additionally, facilities couldn’t be named for current school district employees or elected officials. The community group spearheading private fundraising efforts is planning to offer sponsorship levels, including “marquee” at $1.25 million, “elite” at $500,000, and “diamond” at $250,000, payable over a 10-year period.

• Board members agreed to set up a board retreat sometime in early 2023, to help set priorities and have a general board discussion.