Cloquet schools: Rising home values may shift costs from state to local taxpayers

Cloquet school board members set the preliminary levy at maximum Monday, Sept. 26, with the final figures to be certified on Dec. 12 after more budget work and state input.

District finance director Candice Nelis recommended the board set the levy at “maximum” because the budget and levy are still in flux. That meant the board did not set a dollar amount Monday, but the levy limitation in the board packet — which Nelis said had already changed — listed the levy payable in 2023 at $7.435 million, up from $6.997 million in 2022, an increase of 6.26 percent.

Increasing property values are not doing the taxpayers any favors, Nelis noted. She explained that usually the Cloquet school district receives state aid that works to save local property taxpayers money. However, this year they are seeing changes in equity and equalization numbers, largely due to the rise in property values, which makes Cloquet homeowners appear more “property rich.” It will likely mean the school district receives less aid money, and more costs will fall onto taxpayers.

Superintendent Michael Cary said the state gives state aid money to districts that are on the low end of property value per student, including Cloquet.

“People in our community might not be any wealthier than they were last year — in fact, they’re less because of inflation — but because the appraised value of their homes increased, the state looks at that and … and it might then decrease the amount of state aid that’s coming to us,” Cary said.

Debt service payments for retirees and construction bonds are also increasing this year, but are due to decrease next year, Nelis said. Cary said they are working to make sure the state has the most accurate information, which will likely impact the final levy amount set in December.

“In the meantime, the state is sitting on a huge surplus that they refuse to share with us, and that’s the other problem,” board chair Ted Lammi said. “They could have, should have, and they never did.”

Response to threats

Also on Monday, Cary offered an update on the threatening phone call that caused the Cloquet school district to go on lockdown last Wednesday. He said the threat likely came from a foriegn source using a masked phone number, similar to threats made across the state last spring.

Cary also addressed the risk of having family, friends or others crowd the outside of the buildings while they are on lockdown, as it can prevent law enforcement from entering the building.

“When we have one of these threats, whether it’s fake or real, people need to stay away from the buildings,” said Cary. “I understand the natural concern is to rush to make sure your loved ones are OK, but when everyone does that, what it does is create congestion around the school site. It creates a situation where law enforcement and first responders can’t get there.”

He reiterated frustration with inaccurate information on social media and messages from people in the building, who may not understand what is happening.

“We really need people to stay away from the building,” he said. “Based on what I heard back from the police, there were plenty of people showing up.”

Also Monday …

Continuing on from the last school board meeting, the first mediation session with paraprofessionals to discuss contracts on Friday.

Cary also noted the mediation session with custodial, saying it went well and although things aren’t finalized yet, they are close.

The meeting ended on a high note, with Cary sharing news that Churchill Elementary School principal Dave Wangen and a teacher will receive the official National Blue Ribbon award on Nov. 3 in Washington, D.C.