Understanding recent changes in school taxes
Recently many questions have arisen about property tax statements, particularly the rise in school taxes. Let’s clarify why this has happened.
In 1993 our state government instituted revenue limits, putting our district on a fixed income. Back then, the Medford School District spent less per pupil than most, establishing a baseline for annual increases. Both state aid and property taxes have been constrained since 1993. The more state aid a district receives, the less they rely on local property taxes. But remember, both revenue sources have been capped since 1993.
Within the 2023-25 biennium budget, a law allowed districts receiving less than $11,000 per pupil to increase that amount to $11,000. Since we were at $10,048, our revenue generation per pupil increased by $1,000, contributing to the observed increase. The Medford School District still spends significantly below the state average.
For many, rising property values play a role. The school district has no control over this; if your property’s value is higher this year, you’ll pay more in taxes.
School choice vouchers also impact taxes. Families can choose private schools, with a portion funded by taxpayers. For Medford, this amounts to $405,277. When this money goes to a private school, it’s replaced dollar for dollar with local taxes. You do not see this as a line item on your tax bill because the cost is included within the total tax for the Medford School District.
Some of you have asked where the increase you are paying is going. Part of it stems from the 2021-23 biennium budget, where there was no increase to the state aid formula. COVID-related ESSER funds from the federal government were intended for one-time costs, but the state didn’t increase aid, leading districts to use some funds for ongoing costs. The increase in local tax revenue fills the gap that ESSER funds will leave.
Our annual budget is $39 million, necessary for programs and services preparing our children for the future. I’m always available to discuss these details further if needed.
