Funding Through Taxes
School taxes serve as an investment in the education of our children, and their future. Hanover School Division operates 19 schools, serving the communities of Blumenort, Bothwell, Crystal Springs, Grunthal, Kleefeld, Landmark, Mitchell, Niverville, and Steinbach. HSD consists of approximately 8,400 students and 1,100 total staff.
As part of the budget process, a division-wide Mill Rate is established which serves as a formula for calculating local taxation (school tax levy). Trustees are mindful of the budgetary impact on local taxation, and work hard to find cost savings while balancing the educational needs of students.
Frequently Asked Questions
The following FAQ provides information on how school taxation and local tax dollars are an important, and a necessary funding source in providing a quality education to our students.
Why are school taxes needed?
Public education in Manitoba is only partially funded by the Manitoba Government. Hanover School Division, like all other school divisions in Manitoba, has no other significant sources of revenue or ability to raise funds. HSD miscellaneous revenue makes up less than 1% of its total revenue.
What percent of HSD’s total funding is received from school taxes?
Approximately 60% of HSD’s total revenue is received from the Province of Manitoba. The remaining 40% is received via taxpayers in the form of a division-wide Mill Rate.
Do you have to pay school taxes even if you have no children in school?
Yes. Provincial law says all property owners must pay school taxes whether or not they have children in school.
Does HSD spend more money on education costs than other school divisions?
No. The average cost to educate one Hanover student is $11,074. The provincial average is $13,284.* HSD has one of the lowest cost per student averages in the province.
How does HSD compare on administrative costs?
Even though HSD is the 8th largest school division in the Province, administrative costs make up only 2.6% of the overall budget. The provincial average is 3.0%.* HSD administration expenses are among one of the lowest in the Province.
How does HSD local taxation compare to other school divisions?
When compared to other school divisions, HSD local taxation (as a percentage of total revenue) is below the Manitoba provincial average. Local taxes comprise 30.0% of total revenue, whereas the provincial average is 34.7%.*
Have school taxes increased at a faster rate than inflation?
No. HSD education tax increases, when viewed as cumulative average since 2010, have been equal to the Manitoba CPI inflation average for the same period of time.
How is the Mill Rate calculated?
School Taxes (Education Special Levy) are intended to cover the financial gap created by partial Government funding of the school division budget. There are no other significant means available to HSD to ensure full funding of the education services provided to our communities.
The Mill Rate is determined by calculating the financial difference between government funding and the total funding requirements of the school division, and dividing this gap by the total property assessment within HSD.
A school tax calculation (residential property) would be as follows: Assessment x 45% x Mill Rate / 1000 – Education Property Tax Credit (EPTC) = Taxed Owed
|Sample Calculations Based on House Assessment Value|
|Year||Assessment||Mill Rate||EPTC||Total||Tax Inc. / Dec.||% Inc.|
Can HSD establish different Mill Rates per community?
No. All school divisions in Manitoba have the ability to establish only one mill rate to be used through their entire division. The amount to be collected by each town / RM is based on the assessment of all land and buildings as provided by the Province.
What considerations go into setting tax increases?
The Board of Trustees recognizes that while tax increases are sometimes needed to maintain a high quality of education, annual marginal tax increases will have less budgetary impact on taxpayers than a large tax increase – followed by a temporary freeze. Spreading the required cost over time, evenly and marginally, reflects a recognition of household budget pressures.
Does HSD have additional operating costs that are unique to the division?
Yes, Hanover School Division has one of the largest bus fleets in the Province. Within HSD there are over 100 bus routes providing daily transportation for more than 5,300 students. These buses travel an estimated 1.6 million kilometers per year. HSD spends approximately 5% of it’s total budget on transportation, compared to Winnipeg school divisions, which may average 2% of total spend on transportation.
Where does HSD allocate its budget?
HSD serves the communities of Blumenort, Bothwell, Crystal Springs, Grunthal, Kleefeld, Landmark, Mitchell, Niverville, and Steinbach.
Approx. 97 % of the HSD budget is spent on payroll, supplies, and services (educational needs of all HSD schools). That leaves 3% allocated for fiscal/capital projects as per divisional needs.
The Province allows a reserve of up to 4% of operating expenditures to be maintained. Similar to a household savings account, all school divisions in the Province maintain these balances for unexpected expenditures or events.