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A Few Clouds Malverne delves into budget season early
Explores the potential effects of property tax cap
If you thought school budgets were complicated and tedious before the state passed a property tax cap, you’re in for an unpleasant surprise — they’re about to get much worse.
In a presentation to the Malverne Board of Education last week, Business Administrator Tom McDaid Jr. outlined what he considers baleful effects of the recently imposed tax cap — of 2 percent or lower, depending on the Consumer Price Index — on the 2012-13 school budget.
“It gets scary,” he said, noting that in order to comply with the cap and limit next school year’s tax levy to 2 percent, the Malverne school district will have to make a significant number of cuts and reductions across the board. “Now you’re not giving them what they need,” McDaid said, “you’re only giving them what you can afford.”
McDaid painted a picture of the gravity of the situation by comparing last year’s $1.78 million tax levy increase, with that of next year — $744,500. That also limits the district’s budget to budget increase to 1.57 percent, a number the likes of which the school district hasn’t seen in at least 14 years; the lowest increase in recent memory was 2.71 percent for the 2010-11 budget. The budget to budget increase is subject to change, however, depending on whether or how other revenues, like state aid, will change. It could be higher, but it could also be lower, McDaid said, noting, “There are still a lot of unknowns out there.”
As it stands, the anticipated rollover budget increase exceeds 7 percent. To get it down to increases allowable under the tax cap, the district would have to cut at least $2.4 million. If the district chose not to cut the entire $2.4 million, it would need taxpayers to override the tax cap limitations — something that could only be done if 60 percent of participating voters in the election vote “yes.” But proposing a budget that exceeds the cap in any way is risky, particularly in a small district like Malverne, where the budget has received 60 percent approval only twice in the last 11 years.
