WPCNR SCHOOL DAYS. By John F. Bailey. June 3,2008; The New York State Commission on Property Tax Relief called for a 4% Tax Levy Cap across school districts yesterday, an aggressive Circuit Breaker program to replace the state STAR Basic and Enhanced Relief programs, and a new budget voting process where school district budgets would only have to go before voters if the proposed budget exceeded the budget cap. The Commission also provided for the voters of a district to place an “underride” vote on theballot to keep the levy growth to a level beneath the calculated levy cap.

The Report, 124 pages in length, was forwarded to the media by John Reid, the Executive Director of the Commission. The  "Final" report is due to the Governor by December 1, (after the elections). This delays any reform in property taxes to the 2010-2011 tax year, at the earliest, by WPCNR estimates.

4%?

Applied to the White Plains City School District, White Plains would be hard-pressed to keep their budgets at a 4% year-to-year tax levy increase, since the district’s lowest tax increase in the last 11 years was 4.94% in 1997.

 Since 1997, the district has increased taxes, 5.51% (1998), 6.72% (1999), 7.64% (2000) , 7.94% (2001) , 8.59% (2002), 6.89% (2003), 7.53% (2004), 9.36% (2005), 8.12% (2006), 6.95%(2007) ,   and this year (2008), the school district quoted a 5.98% tax increase, however, when you take into account the significantly reduced STAR BASIC and ENHANCED EXPEMPTIONS, never announced by the district or the state legislatue, the tax increase is actually 8%.

Levy Cap Needs Definition

The recommendation on the levy Cap is hedged, though, the Commission recommends including new construction of homes, businesses and renovations in a district being added to the levy cap because they write that “expand(s) the school district’s tax base without affecting existing taxpayers.”  The Preliminary Report does not explain what this actually means and how this would be figured into their proposed Levy Cap, and the overall effect. 

One of the problems with the White Plains City School District is that new construction in White Plains of which there has been plenty, has not kept up with the certiorari drain that has plagued the district tax base.

Capital expense/Debt Service Votes Exempted from Levy Cap.

Another softening of the hard levy Cap is Capital items are exempted from being included in it. Just as capital expenses and debt service are excluded from the contingency budget figured by the state, the Commission recommends, “Capital items – one-time expense or debt service – would continue to be authorized by public vote, and would not be included within the levy cap.”

White Plains would Face a 60% Override Plurality Tied to State Aid.

On Override votes, say, where White Plains may want to spend a budget next year (bound to be a whopper since this year’s budget was relatively modest by White Plains spending patterns), school districts would have to submit an approval of the override – subject to the amount of state aid the district receives.

Take White Plains. The County Seat  currently receives 8%  of its $184.4 Million budget for 2008-2009 in state aid. The Commission recommends that to override, if a district receives  an increase of more than 5% of their budget in state aid, 60% of the voters would have to approve the override. This year’s White Plains budget of a 6% Tax Increase (8% in reality), passed by 52% to 48%.  That is a problem.

This year White Plains received a state aid increase, much ballyhooed by the state legislative representatives of 9.35%. Applied to this year's budget vote, the proposed new "aid" override policy, would have meant that the White Plains School Budget would not have passed at the 52% to 48% margin, and the contingency budget would have to be put into effect.

The usual Suspects

The Preliminary Report calls for a halt to new legislative mandates; no new mandates from the State Education Department without complete analysis of fiscal impacts, an Office of the StateComptroller report on the cumulative cost to localities of complying with all new regulatory and legislative mandates.

The report endorses the Triborough provision of the Taylor Law to exclude teacher step and lane increments from continuation until new contracts are negotiated; calls for centralized and streamlined school district reporting, and a Commission tas force on other State mandates to research reforms between this Commission’s final report in December.

Wrapping up the recommendations is a requirement to have districts report on collective bargaining outcomes; A study to evaluate a new Tier 5 within the pension system; establish a BOCES statewide energy purchasing program to save energy costs, and finally, establish uniform statewide assessing standards (undefined).

The Commission recommends a Commission Task Force on Special Education (purpose not defined), and a Commission Task Force on Fiscally Dependent School Districts for the Big Four Cities.

Suozzi Comments

In Chairman Thomas Suozzi's cover letter to Preliminary Report, he notes in the opening paragraph to Governor Patterson, "While titled "preliminary," this report recommends major policy changes -- especially a property tax cap -- that need not wait for our final report."

Cover Letter

Mr. Reid's cover letter introducing the report comments:

I  am pleased to share with you a copy of the Preliminary Report of the New York State Commission on Property Tax Relief.  The report is, in large part, the product of hours of testimony, discussion and research by hundreds of individuals representng the broadest spectrum of interests and perspectives.

Your insight during this process has been invaluable.  The Commission Members, Special Advisors and the staff  look forward to continuing our dialogue on this most crucial of issues.