Fargo Schools seek 110-mill tax cap to secure future funding

Fargo Public Schools is asking North Dakota voters to set a fixed ceiling on its property tax rate for the coming decade. The measure on the November 3 ballot proposes a general fund levy of 110 mills, effective December 31, 2027. This rate is lower than the district's current authorization of 127 mills.

Superintendent Dr. Cory Steiner argues that approving the measure will not raise taxes for current property owners. He described the proposal as a continuation of practices the district has used for years to manage its finances. The levy funds day-to-day operations, including staff salaries, technology, transportation, and supplies.

Steiner stated that 80 percent of the general fund goes toward salaries and benefits. The remaining 20 percent covers software, transportation for programs, and classroom supplies. He noted that the district needs to remain adaptable to meet the changing needs of its community and families.

The ballot question references the current general fund levy of 127 mills and the statutory limitation of 70 mills. It asks voters whether the district should have a general fund mill levy of 110 mills starting at the end of 2027. District officials say a yes vote allows them to maintain current school offerings.

If voters approve the measure, the district will collect tax dollars based on the true assessed value of property. If voters reject it, the district will be frozen at the actual dollar amount collected during the 2027-28 fiscal year. This freeze means the district will not receive additional funding as the city grows or property values increase.

District documents warn that a failed vote would force budget adjustments, including cuts and reorganizations of programs and staffing. Steiner said rejecting the levy would force the district to look backward rather than forward, requiring it to continually play catch-up with its budget.

The district's request for 110 mills follows a 2017 approval for an excess levy of 127 mills. For the 2025-26 school year, the school board split its general fund authority into separate levies: 109.98 mills for the general fund, 12 mills for a miscellaneous fund, and 4.8 mills for a tuition fund. The miscellaneous and tuition fund levies will continue outside of this new excess mill levy request.