Essential Context Needed When Discussing School taxes
The City of Winnipeg recently distributed property tax bills that included information regarding increases to River East Transcona School Division (RETSD) education property taxes since 2022. While this information is accurate, it was presented without important context, which is essential when making meaningful comparisons over time.
The overall increase in education tax revenues is largely attributable to a substantial rise in total property assessment values—from approximately $6.4 billion in 2022 to $8.3 billion in 2026, representing an increase of over 29%. It is important to note that property values are determined by the City of Winnipeg, and school divisions have no role in setting these values, even though school taxes are based on property values. The strong correlation between rising property values and overall tax levels is therefore a key factor in understanding recent changes in school taxes.
At the same time, several other key factors have contributed to rising budget requirements:
Enrolment Growth
Student enrolment within RETSD has increased substantially, rising from 16,887 students in the 2021–2022 school year to 18,765 students today—an increase of 11.7%. This growth directly impacts the need for additional staffing, classroom space, and student supports.
Inflationary Pressures
Like all public sector organizations, RETSD has experienced the effects of inflation. Since 2021–2022, the cost of goods and services has increased by approximately 22.4%, placing additional pressure on operating budgets. Notably, during a similar period, school tax increases were capped by the government at 2% annually, totaling 8.2% over four years, while inflation reached 17.1%. This gap limited the division’s ability to fully respond to rising costs and enrolment pressures.
Investment in Teaching Staff and Class Size
Maintaining manageable class sizes and high-quality instruction remains a priority. Salaries and benefits account for over 80% of RETSD’s total budget. However, due to the provincial cap on school tax increases, the division was not able to add teaching staff at a pace fully aligned with enrolment growth during those years. When the cap was lifted for the 2024–2025 school year, RETSD was able to address this gap by adding 90 teachers to support students already in classrooms. Overall, the division has increased its teaching staff from 1,096 to 1,258, representing a growth of 14.7%.
Changes to Provincial Tax Credits
Another important factor influencing property tax impacts is the provincial government’s implementation of the Homeowners Affordability Tax Credit (HATC) in 2025. The previous 50% school tax rebate was replaced with a capped credit of $1,500 in 2025, increasing to $1,600 in 2026 and $1,700 in 2027. This policy change, made by the provincial government, had a significant impact on homeowners—particularly those with properties valued over $400,000—resulting in higher out-of-pocket school tax costs for many residents.
RETSD continues to collaborate with all levels of government to address the evolving needs of the community. Increasingly, school divisions are being asked to provide supports in areas traditionally funded through other sectors, such as health, justice, and family services. In this context, strong intergovernmental partnerships are more important than ever.
Despite these pressures, RETSD maintains a strong financial position. The division is proud to have the second-lowest mill rate among school divisions in Winnipeg, while continuing to focus on student success and responsible fiscal management. RETSD’s budgeting approach is needs-based, ensuring resources are allocated to required priorities and are not designed to accumulate excess funds at the divisional level.
