By Andrew Hackmack
The New York State Commission on Property Tax Relief is calling for school districts to cap their annual tax levy increases at 4 percent.
The tax levy is the major source of revenue for most school districts in New York state.
Paterson has proposed legislation to institute a cap of 4 percent, or 120 percent of the Consumer Price Index - whichever is smaller. If a district wants to exceed that cap, the commission suggested that a budget must be approved by more than just a simple majority. The governor agreed with that recommendation, and his proposal states that in order for a district to exceed the cap, 55 percent of voters must approve its budget. That figure climbs to 60 percent if a district gets a state aid boost of at least 5 percent.
"New York is the highest-taxed state in the nation," Paterson said, "and we can no longer afford to ignore the reality that property taxes are driving people and businesses out."
Dr. Roseanne Melucci, superintendent of East Rockaway schools, said that a tax levy cap could make it harder to meet the needs of students, considering those needs often change from year to year. "A district's needs, based on students' needs, can change from year to year and restrictions may make it difficult to meet those needs," Melucci said. "However, the East Rockaway board of education and administrators will work diligently to prepare a fiscally responsible budget which enhances the educational opportunities for all our students, to the best of our ability."
One significant difference between the report by Suozzi's commission and the governor's proposal concerns annual school budget votes. The commission recommended that if a school district sets its budget under the 4 percent cap, voter approval would not be required. The governor, in contrast, wants to preserve residents' right to vote on their school budgets every year.
State Sen. Dean Skelos (R-Rockville Centre) agreed with Paterson. "A school budget involves more than the tax rate," Skelos said. "Parents have a right to vote on how school districts are spending their money."
If a school budget is defeated twice, a district must adopt a contingency spending plan. In that situation, a district is restricted in how much it can raise its budget - usually to between 3 and 4 percent. However, that cap is on spending, and not on the tax levy.
Suozzi rejected the notion that contingency spending already acts as a tax cap. "A lot of times we vote against the school budget and the contingency budget is often higher," he said. "It's become a sham process, and often very few people vote."
Suozzi did acknowledge the pressure school districts face as a result of unfunded state and federal mandates. His commission recommended several steps to provide mandate relief, including a provision that would prohibit new education requirements without a thorough review of the financial impact on local governments. "After talking with school districts and taxpayers," he said, "I realized they were struggling with unfunded state mandates."
Another recommendation of the commission and the governor is a School Tax Relief Program (STAR) "circuit breaker." This would provide tax relief to certain people based on their income and their ability to pay property taxes.
Assemblyman Bob Barra (R-Lynbrook) said he is against the tax cap proposal because homeowners need even further relief. He said that school districts should have no increases for a few years to allow people's salaries to "catch up" to past years of rising taxes.
"We've got to push our schools to be as good with the money as they are at educating our kids," Barra said, adding that if a tax cap is approved, he would seek a requirement that a supermajority - 65 percent - of voters approve anything higher than 4 percent.
Barra acknowledged that school districts will face rising costs no matter what, and he said that state government must do its part every year to provide as much state aid as possible. He also said that the state should match every dollar school districts spend on mandates.
Dr. Phil Cicero, superintendent of Lynbrook schools, said he is not averse to tax levy cap considering the high taxes on Long Island, but said if there is a cap, there needs to be a guarantee that the revenue will there to supplement it. "If you get the revenue, you can keep the tax levy down," he said. "There has to be some certainty. If there is a cap, there needs to be a guarantee that the revenue will be there."
A statement released by the Hewlett-Woodmere school district noted that it is "premature to comment on the commission's report," since final recommendations are not expected until December 2008.
"The Board of Education and administration works to maintain a balance between sustaining educational excellence and recognition of the fiscal impact on the community," the statement said. "We welcome any opportunity to reduce the burden on our tax payers without compromising the breadth and depth of education the community has come to expect from Hewlett-Woodmere."
Anthony Bottan and Judy Rattner contributed to this story. Comments about it? AHackmack@liherald.com or (516) 569-4000 ext. 265.
