Manitoba school divisions tabling property tax hikes for 2nd year in a row

CBC

28-02-2025

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At least half of Winnipeg's English-speaking school divisions and one in western Manitoba are tabling property tax hikes to raise revenue to cover wage settlements, growing student enrolment and increasing capital expenses, despite a boost in provincial funding.
Last year, Manitoba's NDP government lifted a multi-year freeze, ordered by the former Progressive Conservative government, on the property taxes school divisions can levy.
The province's education department confirmed earlier this month divisions will be allowed to raise taxes again for the 2025-26 school year.
For the second consecutive year, the Seven Oaks School Division is tabling a tax hike in its 2025-26 operations budget, superintendent Tony Kreml told CBC.
It's proposing a 4.5 per cent increase to its mill rate (the amount of tax payable per $1,000 of taxable assessed value). That's up from a two per cent hike approved by Seven Oaks last year, and would amount to an extra $118 a year for the average household in the division, Kreml said.
While the division got a three per cent provincial funding hike, there's still a shortfall on a budget that climbed to $200 million for 2025-26 — up 7.15 per cent from last year, he said.
"We face increasing costs, just like everybody does," said Kreml.
"There have been wage settlements that we have to take into account," along with "high utilities, gas, technology — we're seeing increased transportation pressures also," he said.
Seven Oaks is also budgeting to hire five new teachers and 15 new educational assistants, and to continue waiving fees for lunch supervision and offer a fixed fee for school supplies.
The Winnipeg School Division — Manitoba's largest — is proposing a five per cent tax increase, which would amount to about $78 more a year for a property valued at around $269,000, according to a budget presentation.
Last year, the division passed a 3.4 per cent increase, which amounted to an extra $51 a year for the average household in the division.
Under the proposed tax hike, the school division's $528 million budget would include roughly $313 million in provincial funding and around $203 million from the municipal levy, with the balance coming from federal funding and other sources.
Pembina Trails School Division tabled its budget with a two per cent increase to the property tax, amounting to a $40 increase for the average homeowner before provincial tax rebates, according to the summary of the school division's draft budget.
The division's $246 million budget for 2025-26 is up 13.1 per cent over the previous year, while Pembina Trails got a 1.5 per cent funding increase from the province.
The division said that while funding sources don't match enrolment growth or address fixed costs and salary settlements, it has been able to focus on decreasing class sizes and added teaching positions through "a slight increase in property taxes."
Pembina Trails declined to comment on the proposed hike for the upcoming year, but a message on its website attributed to superintendent of education Shelly Amos said the proposed budget, including the tax increase, "presents an opportunity to further address the needs arising from growing enrolment."
The Louis Riel and St. James-Assiniboia school divisions are expected to table their budgets Thursday night.
A spokesperson for River East Transcona School Division said it will hold a public meeting on its budget on March 10.
Divisions 'playing catch-up': minister
Outside Winnipeg, the Brandon School Division is recommending a 6.78 per cent tax hike, or an increase of $121 annually for the average single-family home, according to a news release.
The division said enrolment continues to grow at a greater rate than prior to 2020, and for the upcoming school year, it is projecting around 210 more students — roughly two per cent growth.
The draft budget also includes an increase in teaching and support staff positions.
Manitoba Education Minister Tracy Schmidt said school divisions are expected to keep affordability top of mind when considering tax hikes, but the province recognizes they have autonomy to make decisions to address their needs.
"We know that school divisions are playing catch-up after more than seven years of unpredictable frozen funding under the previous government," Schmidt said.
Progressive Conservative finance critic Lauren Stone said the tax hikes are a result of mismanagement of education funding that leaves families picking up the shortfall, with divisions passing increases of up to 17 per cent last year.
"We need a long-term sustainable funding model for education," Stone said. "We're seeing these wild swings in school divisions [and] tax hikes as a result of these NDP decisions."
Under the PC government, homeowners got a $350 tax credit and a 50 per cent education tax rebate. But Stone said the party had committed to eliminating education property taxes altogether.
Under a change announced by the NDP in its budget last year, homeowners will now get a property tax credit of up to $1,500 — a move Stone criticized.