Rural ratepayers are concerned that they won’t realize the full value of education tax relief recently announced by the Saskatchewan government because school boards will raise their mill rates.
Several delegates to last week’s Saskatchewan Association of Rural Municipalities convention in Regina raised the issue with premier Lorne Calvert and members of cabinet during a bearpit session.
They are worried about the cost of larger school divisions that came into effect Jan. 1 and whether school mill rates can be kept in check.
The province announced March 3 that education tax on farmland will be cut by 30 percent effective April 1. This is in addition to the eight percent discount that all property classes will receive.
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The cut, worth $52.8 million, means the province will pick up 60 percent of the cost of education and farmers will pay 40 percent.
Glenn Blakley, a councillor for the RM of Spy Hill and spokesperson for the Tax Action Group, said he applauded the government for its commitment but he remained concerned about school districts “spending money like drunken sailors” and whether that would result in higher tax bills.
Calvert replied that he didn’t share Blakley’s view of inappropriate spending. He said a comprehensive review is under way of the foundation operating grant, which provides provincial funds for kindergarten to Grade 12 education.
Ron Lutz, a councillor in the RM of Weyburn, asked what would cushion farmers from higher tax bills charged by school divisions.
He said there has to be some controls in place.
Farmers will still get “meaningful” tax relief even if there are mill rate increases, Calvert said, because the province will be picking up a larger share of the tab.
Government relations minister Harry Van Mulligen said the government had an interest, too, in making sure school boards keep spending under control.
Calvert said he expected elected school board officials would make their decisions based on local conditions.
“We have a level of assurance that we all share the same goal,” he said, adding that means a high quality education for all students.
One delegate asked if discussion was under way about a uniform mill rate across the province. He said amalgamation has resulted in school divisions with lower mill rates being combined with those with higher mill rates. The new divisions are still working out the rates to be imposed.
“Our ultimate challenge is the proper funding of education,” Calvert replied. The foundation operating grant structure must be correct, he said.
