By Tom Steinert and Judy Rattner
In a show of bipartisanship, the GOP-dominated Senate approved the bill, drafted by Democratic Gov. David Paterson and recommended by a special property tax relief commission led by Nassau County Executive Thomas Suozzi.
Now the bill must make its way through the Democratic-led Assembly, where many believe it will be defeated. And as the legislation awaits further action, one thing is certain: School officials do not want to see this bill signed into law.
"Our systems would become eroded, and the gap between the haves and have-nots would become wider," said Jim Kaden, president of the Nassau-Suffolk School Boards Association, which issued a position paper two weeks ago opposing the tax cap.
But, Suozzi said, "We cannot continue to fund what is the most expensive school system in America. The taxpayers can't take it anymore."
The legislation would limit yearly school tax levy increases to either 4 percent, or 120 percent of the Consumer Price Index, whichever is lower. Districts could override the cap, but only with voting majorities of 55 percent or 60 percent, depending on how much state aid they receive.
The override provision troubles many school officials in middle-class districts, who fear that local homeowners, upset over increasing taxes, would tend to reject override attempts. This, officials believe, would put their districts at a disadvantage compared with poorer districts that receive more state aid, and richer districts, where overrides are likely to succeed.
Proponents of the legislation say that a cap is essential to halt spiraling property taxes, which rose 74.8 percent in Nassau County between 1995 and 2005.
If the legislation is signed into law, its effects would not be felt until the latter part of 2009.
"Enacting a property tax cap is a good starting point, but it is only one piece of the puzzle," said state Senate Majority Leader Dean Skelos (R-Rockville Centre) in a written statement released on Aug. 8. "We also passed measures to provide help for school districts who are dealing with rising costs that force property taxes to increase - including rising pension and energy costs. The measures we passed today in our special session will provide much-needed relief to taxpayers and is the beginning of the process to reduce property taxes."
Assemblyman Tom Alfano (R-North Valley Stream) said he will have no position on the bill until a final draft is agreed upon. A special legislative session was scheduled for Tuesday in Albany to discuss the matter further.
When asked about this legislation, Superintendent Dr. Elaine Kanas of Valley Stream District 30 said she opposed the bill, but added, "It's a bit premature to discuss, seeing as it will most likely be defeated in the Assembly. The cap certainly addresses the need to be sensitive to the individual taxpayer, but it's too early to consider because it still hasn't been signed into law. If the cap does pass, however, we will certainly need to find other sources of revenue for our schools."
District 24 Superintendent Dr. Edward Fale, another opponent of the bill, cited a tax cap passed by California voters in 1978 as a testament to its negative effect on education. "Since that time, the quality of education in California schools has gone down drastically," he said. "We don't want to follow that example."
Fale also noted that such a law would likely limit the district's ability to create new programs. "You would be fighting to maintain the programs that you have," he said, "What you're not doing is improving education."
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