Duluth school taxes to drop 2.86%

DULUTH — Homeowners will see a 2.86% decrease in school taxes levied in fall 2024.

The Duluth school district's levy is decreasing by $1.32 million for taxes payable and collected in 2025, Simone Zunich, executive director of finance and business services, said during the district's Truth in Taxation hearing on Tuesday. The total tax levy is $44.96 million.

The average market value of a residential homestead in Duluth is $285,853. Assuming a 6.5% change in property value from 2024 to 2025, the owner of a house valued at $285,853 would owe $1,036.28 in taxes for 2025, a 4.2% decrease from 2024.

The Minnesota Department of Education sets the levy, unlike the city and county, which set their own levies. The state sets a formula for each school district; any additional money requires the district to seek voter approval.

How payable 2025 school taxes will be spent:

• General Fund (38.2%) — funding for regular and special education instructional programs, including transportation, operational equipment, technology, building maintenance and more.
• Community Education Fund (1.7%) — funding for Community Education programs and Early Childhood Family Education and School Readiness.
• Debt Service Fund (60.2%) — levy for repayment of principal and interest on district debt. 

Also on Tuesday, the school board unanimously approved budget reductions up to $5 million for 2025-26, although no specifics about what will be cut were discussed. Magas explained that, after meetings with staff, administrators and the board, the district's leadership is in the process of finalizing recommendations for cuts.

The board had approved budget reductions up to $7.6 million over fiscal years 2025 and 2026, with up to $2.6 million cut in 2024-25.

The administration has said the need for reductions is attributed to many factors, notably the sunsetting of federal pandemic relief funds, unfunded mandates, increased operational costs and employee contract settlements.

"These are calculated decisions that we’ve made," Treasurer Kelly Durick Eder, board member at large, said of the reductions. "We have a long-term plan for the health of the district."

The district said in a Nov. 11 press release that key areas of reduction include $1 million at the elementary level; $1.35 at the secondary level; $1.1 million in the District Service Center staffing budgets; and $1 million in the Special Education/Care and Treatment department budget.