School districts begin planning for next year

New York State mandates a 0.12 percent tax-cap

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School districts across New York State, including Hewlett-Woodmere and Lawrence, will have to implement budgets for the 2016-’17 school year based on a state mandated 0.12 percent tax-cap limit. The lowest since the tax-cap was instituted four years ago.

“Over the last few months school districts have steadily lowered their projections as core elements of the cost of living index continued to decline,” said Dr. Peter Weber, Hewlett-Woodmere’s deputy superintendent who oversees the business department.

Hewlett-Woodmere’s current budget is $113.68 million. Weber said it is too early to project a preliminary fiscal plan. “To date the Board [of Education] has examined segments of the budget, but will not begin a review of the overall budget draft until later this month,” he said.

The district may have more money as the state is expected to reimburse districts for the funds that were cut during the fiscal crises of 201 and 2010 and never repaid. Hewlett-Woodmere’s GAP Elimination Adjustment is $632,170.

Weber said that another gap exists between Gov. Andrew Cuomo’s plan for partial elimination of the GAP penalty and the senate’s proposal to remove it completely. Weber said it is too early to know the exact amount.
State aid is projected at $7,766,553, an increase of 5.7 percent from this year’s $7,346,114. “Clearly, the increase in projected state aid will not be sufficient to offset a very small tax levy limit,” Weber said.

Originally the district’s tax levy — the amount of money that has to be raised by school property taxes — was set at $100,446,816. It was reduced to $97,481,884. Weber explained that the decrease reflects a “shift of LIPA property from the tax rolls” into what are called payments in lieu of taxes known as PILOT payments. He said a disagreement between LIPA and Nassau County is blocking the district from receiving money and it is unclear whether the PILOTs would be subject to the tax levy minimum and limits in the future.

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