Other N.D. school districts mulling tax increase with growing enrollment

While the Grand Forks School Board mulls a proposed property tax increase, other schools districts in North Dakota are crunching the numbers and determining whether or not they should be taking similar action.

Bismarck Public Schools isn't as far along in its budgeting process as Grand Forks, but its business manager Ed Gerhardt said the district will likely seek a tax increase. He's just not sure how much.

Reasons for a potential increase are similar to those listed by Grand Forks officials: growing enrollment, increasing salary costs and inflation.

The proposed increases in both districts come after the Legislature approved millions of dollars in property tax relief earlier this year.

Increasing the amount of aid paid per student sounds great, but Gerhardt said the way the aid distribution formula is set up isn't benefiting districts with growing enrollments.

The number of students plugged into the formula comes from the district's enrollment from the prior year. School districts that experience enrollment increases may find themselves paying for students for which aid doesn't exist.

"We're getting paid this year for last year's kids," Gerhardt said.

For example, 100 kids not accounted for in the formula would have cost the district $399,000. Last year, the district had around 400 new students.

This year, that aid payment jumps to $8,810. The School District should expect to add about 350 students to its system each year, according to a demographic study. Those 350 kids would cost more than $3 million this school year.

The story is different in Dickinson, where assistant superintendent Vince Reep said the district is growing fast enough to qualify for additional aid from the state.

"We've placed 73 students in the past week," he said.

He believes the school district can take care of costs with the increased aid and a 72.5 general fund mill levy. That levy was 118 mills last year.

"Taxes are not going up for Dickinson," he said. "I can't say the same for property valuations."

Other school districts contacted by the Herald did not return requests for comment as of Friday afternoon.

Call Jewett at (701) 780-1108; (800) 477-6572, ext. 1108; or send email to bjewett@gfherald.com .