Funding Through Taxes
School taxes serve as an investment in the education of our children, and their future. Hanover School Division operates 19 schools, serving the communities of Blumenort, Bothwell, Crystal Springs, Grunthal, Kleefeld, Landmark, Mitchell, Niverville, and Steinbach. мÓÆÂÁùºÏ²Ê¿ª½±½á¹û consists of approximately 8,400 students and 1,200 total staff.
As part of the budget process, a division-wide Mill Rate is established which serves as a formula for calculating local taxation (school tax levy). Trustees are mindful of the budgetary impact on local taxation, and work hard to find cost savings while balancing the educational needs of students.
Frequently Asked Questions
The following FAQ provides information on how school taxation and local tax dollars are an important, and a necessary funding source in providing a quality education to our students.
Why are school taxes needed?
Public education in Manitoba is only partially funded by the Manitoba Government. Hanover School Division, like all other school divisions in Manitoba, has no other significant sources of revenue or ability to raise funds. мÓÆÂÁùºÏ²Ê¿ª½±½á¹û miscellaneous revenue makes up less than 1% of its total revenue.
What percent of мÓÆÂÁùºÏ²Ê¿ª½±½á¹û’s total funding is received from school taxes?
Approximately 60% of мÓÆÂÁùºÏ²Ê¿ª½±½á¹û’s total revenue is received from the Province of Manitoba, while 37% is received via taxpayers in the form of a division-wide Mill Rate. The remaining 3% is received from the federal government.
Do you have to pay school taxes even if you have no children in school?
Yes. Provincial law says all property owners must pay school taxes whether or not they have children in school.
Does мÓÆÂÁùºÏ²Ê¿ª½±½á¹û spend more money on education costs than other school divisions?
No. The average cost to educate one Hanover student is $12,774. The provincial average is $14,537.* мÓÆÂÁùºÏ²Ê¿ª½±½á¹û has the third lowest cost per student average in the province.*
* As of the most recent compiled by the Province (2021-22)
How does мÓÆÂÁùºÏ²Ê¿ª½±½á¹û compare on administrative costs?
Even though мÓÆÂÁùºÏ²Ê¿ª½±½á¹û is the 8th largest school division in the Province, administrative costs make up only 2.2% of the overall budget. The provincial average is 2.6%.* мÓÆÂÁùºÏ²Ê¿ª½±½á¹û administration expenses are among one of the lowest in the Province.
* As of the most recent compiled by the Province (2021-22)
Have school taxes increased at a faster rate than inflation?
No. мÓÆÂÁùºÏ²Ê¿ª½±½á¹û education tax increases, when viewed as cumulative average since 2010, have been lower than the Manitoba CPI inflation average for the same period of time.
How is the Mill Rate calculated?
School Taxes (Education Special Levy) are intended to cover the financial gap created by partial Government funding of the school division budget. There are no other significant means available to мÓÆÂÁùºÏ²Ê¿ª½±½á¹û to ensure full funding of the education services provided to our communities.
The Mill Rate is determined by calculating the financial difference between government funding and the total funding requirements of the school division, and dividing this gap by the total property assessment within мÓÆÂÁùºÏ²Ê¿ª½±½á¹û.
A school tax calculation (residential property) would be as follows: Assessment x 45% x Mill Rate / 1000 – Education Property Tax Credit (EPTC) – Provincial Rebate = Taxed Owed
| Sample Calculations Based on House Assessment Value | ||||||||
| Year | Assessment | Mill Rate | Tax | EPTC | Rebate | Net Tax | Tax + / - | % |
| 2024 | $284,884 | 12.739 | $1,633 | $350 | $817 | $467 | $50 | 9.1% |
| 2023 | $284,196 | 11.985 | $1,533 | $350 | $766 | $416 | ($135) | -19% |
| 2022 | $256,105 | 13.730 | $1,582 | $438 | $593 | $551 | ($156) | -15.7% |
| 2021 | $256,235 | 14.249 | $1,643 | $525 | $411 | $707 | ($282) | -28.5% |
| 2020 | $256,425 | 14.641 | $1,689 | $700 | - | $989 | ($1) | -0.1% |
| 2019 | $247,631 | 15.170 | $1,690 | $700 | - | $990 | $3 | 0.3% |
| 2018 | $247,707 | 15.143 | $1,688 | $700 | - | $988 | ($5) | -0.5% |
| 2017 | $245,935 | 15.295 | $1,693 | $700 | - | $993 | $40 | 4.3% |
| 2016 | $245,794 | 14.943 | $1,653 | $700 | - | $953 | $36 | 4.2% |
| 2015 | $224,269 | 16.019 | $1,617 | $700 | - | $917 | $45 | 5.3% |
| 2014 | $224,013 | 15.593 | $1,572 | $700 | - | $872 | $31 | 3.9% |
| 2013 | $203,940 | 16.786 | $1,541 | $700 | - | $841 | $37 | 4.9% |
Can мÓÆÂÁùºÏ²Ê¿ª½±½á¹û establish different Mill Rates per community?
No. All school divisions in Manitoba have the ability to establish only one mill rate to be used through their entire division. The amount to be collected by each town / RM is based on the assessment of all land and buildings as provided by the Province.
What considerations go into setting tax increases?
The Board of Trustees recognizes that while tax increases are sometimes needed to maintain a high quality of education, annual marginal tax increases will have less budgetary impact on taxpayers than a large tax increase – followed by a temporary freeze. Spreading the required cost over time, evenly and marginally, reflects a recognition of household budget pressures.
Does мÓÆÂÁùºÏ²Ê¿ª½±½á¹û have additional operating costs that are unique to the division?
Yes, Hanover School Division has one of the largest bus fleets in the Province. Within мÓÆÂÁùºÏ²Ê¿ª½±½á¹û there are over 100 bus routes providing daily transportation for more than 5,300 students. These buses travel an estimated 1.6 million kilometers per year. мÓÆÂÁùºÏ²Ê¿ª½±½á¹û spends approximately 5% of it’s total budget on transportation, compared to Winnipeg school divisions, which may average 2% of total spend on transportation.
Where does мÓÆÂÁùºÏ²Ê¿ª½±½á¹û allocate its budget?
мÓÆÂÁùºÏ²Ê¿ª½±½á¹û serves the communities of Blumenort, Bothwell, Crystal Springs, Grunthal, Kleefeld, Landmark, Mitchell, Niverville, and Steinbach.
Approx. 97 % of the мÓÆÂÁùºÏ²Ê¿ª½±½á¹û budget is spent on payroll, supplies, and services (educational needs of all мÓÆÂÁùºÏ²Ê¿ª½±½á¹û schools). That leaves 3% allocated for fiscal/capital projects as per divisional needs.
The Province allows a reserve of up to 4% of operating expenditures to be maintained. Similar to a household savings account, all school divisions in the Province maintain these balances for unexpected expenditures or events. мÓÆÂÁùºÏ²Ê¿ª½±½á¹û current surplus is under 1%.