There will be a new model in place for how public education is funded in Manitoba by the next tax season. Premier Wab Kinew confirmed the news in an interview on Friday.
The news comes on the heels of the NDP government lifting the 2 per cent education property tax cap that had previously been issued to the province's school divisions. In some cases, like in Western School Division, the mill rate is increasing from 11.82 last year to 13.87 this year, which is up 17%. The Division cited $725,000 operating costs added to the budget next year to launch the new École Discovery Trails, rising costs and the recent reinstated local taxation authority given back to school boards.
Kinew says affordability is his top priority.
"That's why the first thing we did when we got elected is we cut the provincial gas tax to zero. And we also, in this budget, we're bringing in a $1,500 homeowner affordability tax credit. That'll be $1,500 off your property tax bill when that comes in next year."
"Now, we know that there's a bunch of needs across all the school divisions. Unfortunately, I think what you're seeing from them is the feeling that they've been underfunded for many years and they're trying to play catch up," added the Premier. "But I think my message that I want to share with people is we're going to be there with education funding, but we also have to be there for you. We have to recognize the cost of living and we have to take some measures to help, so that's why we have this new $1,500 rebate that we're bringing in for the next property tax year. And then of course, as we bring in that new school funding model, I'm not sharing the details of that just yet, that'll be in place for the next property tax season as well. And that will have a good approach for funding schools, but also some consideration of the average homeowner and the small businessperson out there."
Speaking of that $1,500 property tax credit, the Premier is explaining, in simple terms, what that means.
"It means we're taking $1,500 off the school taxes on your property bill," he said. "When you look at the value of homes in Manitoba, if you've got a $100,000 property, $200,000 property, $300,000 property, you're not going to pay any school taxes under this because their rebate is going to more than cover that amount. The average home price in Manitoba province-wide is $350,000. Those folks will also not pay any more in school taxes, in fact, properties up to $437,000 are going to be quite a bit better off under this plan."
Overall, the Premier feels this is a good step in keeping property values affordable, but also to help Manitobans with recurring expenses.
"Especially if you're on one of these equal payment plans where that tax bill spread out a on a month-to-month basis, you're going to see these savings each and every month. It's another step that we can take to help you and your family deal with the cost of living these days."