News
School leaders analyzing tax cap legislation
Spring frustrated with lack of serious mandate relief
Updated August 3, 2011
As Mohonasen leaders continue to analyze the tax cap legislation approved by the Legislature and signed into law by the Governor in June, Superintendent Dr. Kathleen Spring is projecting that next year will be another difficult budget year for the district.
At this time, Spring said it is unclear what the exact tax levy cap will be for Mohonasen given the number of exemptions outlined in the legislation.
“Looking ahead, there are a number of factors set to affect our budget planning—and now we will add a property tax levy cap to the mix,” Spring said. “I continue to be frustrated about the lack of serious mandate relief from our state leaders. While this bill includes some first steps, it does not address pension costs, health insurance or many of the other mandated items that have the largest impact on school cost increases.”
“These are difficult fiscal times for our taxpayers and moving ahead we will continue to focus on balancing the needs of our students with our community’s ability to pay,” she added.
Here’s what we already know about the tax levy cap:
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Tax levy increases will be capped based on a state formula.
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Some pension cost can be added to the cap.
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Some districts will receive an additional allowance between 1 and 2 percent for tax base growth.
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If a district’s tax levy increase is under the cap, the difference can be carried over to the next year.
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Exemptions are also allowed for certain expenditures resulting from court orders or judgments arising out of tort actions.
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There is not a five-year expiration date on the cap, which had been previously discussed by state leaders. The cap is tied to the expiration of rent control legislation for New York City.
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A district may propose a budget that goes over the cap, but that would require approval from more than 60 percent of voters. A budget that falls within the cap would require approval from more than 50 percent of voters.
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If a proposed budget is defeated twice by voters, the district would be forced to adopt a budget that does not increase the tax levy over the current year.
Mandate relief and moving forward
The legislation signed into law on Friday also included a number of measures aimed at alleviating state mandates and helping school districts bring down costs. School leaders continue to review the legislation to learn what it means for Mohonasen. These measures include:
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Allowing school districts to plan bus routes not by every potential bus rider, but rather by patterns of student ridership.
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Allowing districts to “piggyback” on some state purchasing contracts.
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Allowing districts to borrow the money needed to pay some pension costs.
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Allowing districts to share services, materials and equipment with other districts and municipalities.
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Allowing for joint electricity purchasing among school districts.
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Allowing districts with fewer than 1,000 students to share a superintendent with up to two other districts.
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Allowing districts to conduct a pre-k census every two years, rather than every year.
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Changing claims auditing practices for districts with more than 10,000 students.
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The creation of a Mandate Relief Council to hear petitions from local governments and school districts for relief from specific mandates.
Aside from the tax cap legislation, there are a number of factors set to affect Mohonasen’s 2012-13 budget. These include:
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The loss of $800,000 in Federal Education Jobs money that is being used to fund a number of current positions within the district.
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Double-digit increases in the state-mandated district contributions to the Teachers’ Retirement System and Employees’ Retirement System.
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Contractual salary increases.
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Increases in other contractual areas, such as health insurance.
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Skyrocketing energy costs.
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Limited availability of fund balance after it has been spent down in the recent years of declining state aid.
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A modest increase – if any – in state aid. With a $2.5 billion state budget deficit already being predicted, it is uncertain that there will be any increase in state aid for the 2012-13 school year.
The 2011-12 budget— which was approved by voters in May before the tax cap was put into place— included $2.7 million in cuts, the elimination of 34.5 FTE positions and a 2.5 percent tax levy increase. This came after the third year of reduced state aid for education.
The level of cuts in the budget for the upcoming school year would have been even deeper had officials not used $1 million of the district’s fund balance (or “rainy day” fund) or received more than $525,000 in concessions from the teachers, support staff, supervisors and administrators.
While Mohonasen leaders understand the level of tax fatigue and frustration with ever-increasing tax bills, Spring said they also know that the best economic stimulus is a solid education and high school diploma.
Because of the number of challenges faced by the district, Spring is urging all members of the Mohonasen community to stay engaged in the budget development process.
“Together, as a community, we will face the challenges in front of us and work to maintain quality schools for our children,” she said.
As always, parents, staff, students and taxpayers are urged to voice their opinions on these matters to our elected leaders. To do so, please visit our contact your elected leaders page.
