How does the annual inflation increase on the operating levy work?

Posted by:

Every year the Minnesota Department of Education sets the annual inflation rate, and it has averaged about 2 percent per year for the past five years. That percentage increase is the rate applied to the per-student amount the school district receives – it is NOT applied directly as an increase in property owner’s taxes. The actual property tax impact on individual homeowners will be lower than the inflation percentage, because the increase in per-student funding is spread over the entire tax base