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Light Rain Fog/Mist How will property tax cap impact schools?
Lynbrook, East Rockaway district officials talk about the difficult road ahead
New York’s first-ever property tax levy cap is a crucial step toward the state’s economic recovery, said Governor Andrew M. Cuomo, who signed the bill into law on June 30.
The historic legislation, which will limit the amount a school district or village can increase their property tax levies annually to only two percent, will bring relief to millions of homeowners grabbling with increasing tax bills, state officials said. However, several school districts officials said the cap poses an important roadblock to providing services and programs for students.
Like several state districts, Lynbrook and East Rockaway are already coping with diminishing state aid and increasing state mandates. Officials agreed that a two percent cap, which can also be set at the Consumer Price Index (rate of inflation) depending on whichever is smaller, will hurt, especially without additional revenue.
And with just a few exemptions from the cap, including a 60 percent voter majority to override it, schools will most likely have to streamline their spending, proving the “belt-tightening” will come with a price.
Lynbrook looks at the levy
This year’s school budget hearings were later than usual, given all the economic uncertainties facing districts. Talk of the tax cap was number one on their agenda, going into their budget preparations, said Superintendent Dr. Santo Barbarino. “The [tax cap] movement is not friendly to school district,” he said.
Several early reports cited Cuomo’s push for districts to turn to their capital reserves, but some said it is not a solu
tion. “When I hear the governor talk about districts can just use all of their reserve money, it’s only going to take us so far,” said Dr. Melissa Burak, the district’s assistant superintendent for business.
But what else can the district do to deal with it? Officials should start their budget preparations earlier, Barbarino suggested at the July 5 Board of Education meeting. They cannot wait until November or December, he said. Starting earlier does not mean to rush, but to come together to brainstorm solutions, he noted.
