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HFM district
leaders analyze tax cap legislation
Without voter approval, school budgets are capped at prior
year’s tax levy = zero percent cap
 June
30, 2011 - As school district officials analyze the tax cap
legislation approved by the Legislature and signed into law by
the Governor on Friday, June 24, District Superintendent Dr.
Patrick Michel is projecting another difficult budget year for
HFM BOCES 15 component school districts.
“Looking ahead, there are a number of factors set to affect
budget planning in our districts—and now we will add a property
tax levy cap to the mix,” Dr. Michel said. “I continue to be
frustrated about the inequities in the state aid funding formula
and the lack of serious mandate relief from our state leaders.”
According to New York State Council of School Superintendents’
Deputy Director for Advocacy, Research and Communications Robert
Lowry, the so-called “cap” of 2 percent or inflation, whichever
is less, is defined in law as the “tax levy limit.” It serves as
a trigger for determining what percentage of voters will be
required to approve an increase in the levy. However, if voters
do not approve an increase in the levy, districts are capped at
the prior year levy.
If a district seeks a tax levy increase greater than the tax
levy limit, approval by 60 percent of voters will be required.
If the district requests an increase under the limit, approval
by a simple majority (50 percent plus one vote) will suffice.
Districts will be permitted two chances to obtain voter
approval.
According to Lowry, the law provides, “…if the qualified voters
fail to approve the proposed school district budget … the sole
trustee, trustees or board of education shall levy a tax no
greater than the tax that was levied for the prior school year.”
“In other words, if unable to gain voter approval, a district
would be capped at the prior year’s tax levy – the zero percent
cap,” Lowry said.
The new legislation included a number of measures aimed at
alleviating state mandates and helping school districts bring
down costs. District leaders continue to review the legislation
to learn what it means for them.
“I hope we can read this as a sign that the state might be
serious about helping our districts control expenses, and by
extension, taxes,” Dr. Michel added. “These are difficult fiscal
times for our taxpayers and moving ahead our districts will
continue to focus on balancing the needs of our students with
our communities’ ability to pay.”
The 2011-12 school district budgets for HFM BOCES 15 component
districts—voted on in May before the tax cap was put into
place—included more than $11 million in state aid cuts, the
elimination of more than 144 positions and an average tax levy
increase of 5.56 percent. The districts have lost 15.6 percent
of their state aid since 2008-09.
“The level of cuts in many budgets for the upcoming school year
would have been even deeper had officials not used millions of
dollars from their fund balances (or “rainy day” funds) or
received concessions from their teachers, support staff,
supervisors and administrators,” Dr. Michel explained.
While BOCES and its districts’ leaders understand the level of
tax fatigue and frustration with ever-increasing tax bills, Dr.
Michel said they also understand that the best economic stimulus
is a solid education and high school diploma.
"No one wants their kids to be shortchanged in preparation for
their future. We all get it. We can read the statistics about
international competition and the infusion of technology into
every profession. We can see the opportunities exploding in Tech
Valley a few miles away,” Dr. Michel said. “I think our parents,
our local businesses and our schools all clearly understand our
mission, and no one wants to drop the ball on this for our
children.” |
