By ANTHONY BOTTAN
Senate Republican leader Dean Skelos, of Rockville Centre, said that one of his first priorities is to reinstate the program, which he said helps reduce Long Islanders' high property taxes.
"Restoration of the STAR rebate checks eliminated by the Senate Democratic leadership continues to be a top priority of the Senate Republican conference," Skelos said. "We will continue to urge the Assembly and the governor to make it a priority as well to help Long Islanders who are struggling with high property taxes."
Johanna Owen, who lives in Oceanside but works in the Valley Stream schools, said that any extra money helps out during these tough times. "We pay too much in taxes as it is," Owen said. "They should definitely bring the STAR rebate checks back. Everyone looks forward to a little extra spending cash to do something or pay a bill."
The STAR program was created in 1997 to offset homeowners' rising property taxes and provide seniors with additional property tax relief. Basic STAR, which all homeowners can apply for, exempts $30,000 of a home's assessed value from school taxes. Enhanced STAR covers homeowners older than 65 whose income is below $73,000, exempting $60,100 of a home's value from school taxes.
According to Matt Anderson, a spokesman for Gov. David Paterson, spending for the STAR program totaled $4.7 billion in 2008-09, 89 percent more than in its first year. Anderson added that nearly 50 percent of the growth is attributable to the rebate program, which averaged $600 per household. By eliminating the rebates, he said, the state will save more than $3 billion over two years while still offering homeowners more than $3.5 billion in tax relief through Basic and Enhanced STAR.
If the rebate program is reinstated, Anderson said, the state could be in trouble. "If the STAR rebate program was passed into law without an equivalent $1.5 billion in spending cuts or additional revenue, that would create a $1.5 billion deficit for the state," he said. "And that would definitely cause financial difficulties."
Assemblyman Tom Alfano (R-North Valley Stream), said he supports bringing back the rebates and wants it to be done sooner rather than later. "The reason why the STAR Rebate check is important can be summed up in three words -- people are hurting," Alfano said. "People have lost their jobs, are underemployed, taxes are going up and that rebate check has been a life preserver to the senior paying their electric bill and the working family making the mortgage payment. This issue impacts our neighborhoods in so many ways and it must be dealt with now."
Valley Stream resident Tina Torres said that with property and school taxes so high, it's hard to find money for other important bills. Referring to the rebates, she said, "It would help a lot with college bills, especially if you have more than one child. Every bit helps. I'm tired of recycling our money to the wrong pockets."
Skelos noted that during the state budgeting process, he offered a plan that would have spent less than the governor's budget and used some federal stimulus money to keep the rebate program. But Anderson said that in place of reinstating the rebates to help with property tax relief, Paterson is trying to initiate school district pension reform. Anderson estimated that pension reform would save about $50 billion over the next 30 years, reducing school expenses, which drive up property taxes.
Sisa Moyo, spokeswoman for state Assembly Speaker Sheldon Silver, said the Assembly accepted the governor's budget proposal in April because the state needed to reduce a burgeoning deficit, $16 billion. "We were closing the biggest deficit the state has ever seen," Moyo said. "Given that we had to close such a large deficit, we couldn't pay for [the rebate program]."
Assemblyman Bob Barra (R-Lynbrook) agrees with Skelos that the rebates should be reinstated. "I think we can reach an agreement," Barra said. "We need to take the partisan out and put in legislation from both sides of the aisle to have our state run better and more affordable for the average person."
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