WPCNR SCHOOL DAYS. By John F. Bailey. June 9, 2008: After digesting Governor David Patterson’s introduction of a bill to implement a 4% cap on property tax increases across the state, on the heels of the Suozzi Commission Preliminary Report on Property Tax Reform last week, Westchester County Executive Andrew  Spano issued a statement to WPCNR Friday saying it does not go far enough, saying that it is state mandated spending that needs to be capped – not property taxes.

On another front, those most affected, the school districts, Superintendent of Schools for the City of White Plains, Timothy Connors said that the district was examining the proposals, but that it was too early in the legislative process to evaluate  how a property tax cap would impact the White Plains district.

Mandate Cap Needed: Spano.  Property Tax Caps Don’t Work: Connors.

WPCNR SCHOOL DAYS. By John F. Bailey. June 9, 2008: After digesting Governor David Patterson’s introduction of a bill to implement a 4% cap on property tax increases across the state, on the heels of the Suozzi Commission Preliminary Report on Property Tax Reform last week, Westchester County Executive Andrew  Spano issued a statement to WPCNR Friday saying it does not go far enough, saying that it is state mandated spending that needs to be capped – not property taxes.

On another front, those most affected, the school districts, Superintendent of Schools for the City of White Plains, Timothy Connors said that the district was examining the proposals, but that it was too early in the legislative process to evaluate  how a property tax cap would impact the White Plains district.

Governor Patterson’s bill to enact a cap would cap school property tax levy increases at 4% or 120% of the Consumer Price Index, whichever is less; require at least 55% of voters to approve any tax levy over the cap, and increase that “Supermajority” requirement ot 60% if the school district is receiving an increase in state education funding of 5% or more. (This year, if those rules had been in effect, the White Plains School Budget would have gone down to defeat, having passed by 52% to 48% with a 6% tax increase (8% actually, when the STAR Exemption cut is figured in).

The Governor’s proposal would also provide that if the proposal is rejected by the voters, the levy increase reverts back to the cap of 4% or 120% of CPI, whichever is less, and authorizes voters to place “underride” proposals on the ballot if they wish to adopt a tax levy of less than 4%. The Governor’s legislation also preserves the voters’ right to vote on the school budget every year.

Chief Advisor to Westchester County Executive Andrew Spano, Susan Tolchin issued this statement to WPCNR on Mr. Spano’s reaction to the Suozzi report and the Governor’s Bill:

On the issue of the Suozzi recommendation, the County Executive wants to lower all property taxes, not just school taxes and  the best way to do that is a cap on unfunded mandates that the state passes down on all taxing jurisdictions: schools, county and local governments.

 He wants to see that one big tax bill reduced. There should be a moratorium on new and expanded mandates and a cap on existing mandates, similar to what we now have on medicaid. 

The County Executive has made his position known to the Commission in his testimony and in memos and draft legislation that was shared with the governor's office, County Executive Suozzi and NYSAC. 

Superintendent Connors said, “It’s a little early to react to it (the property tax cap legislation).Tax caps haven’t worked (in Massachusetts and California), and are detrimental to education. We’re looking at the proposals.”

Connors noted that in Massachusetts, where there is a tax cap, many communities vote to override the caps annually because of the effect the cap would have on their individual communities. He also mentioned how California school budget controls had lowered California educational effectiveness since Proposition 33 was passed.

In White Plains, the contingency budget that would have gone into effect this year, had voters not approved the $184.4 Million budget, was a 5.79% increase compared to a 5.95% increase in the budget, and would have cut $700,000 from the budget. 

The Governor's proposal of a limit of 4% on the property tax cap this year, would have forced the White Plains School District to cut $5.5 Million from the proposed budget to stay under the cap. That $5.5 Million would have been just $1 Million more that the total salary increases incorporated into the budget that passed. Of course, the district could have gone for the ovveride from the voters

In order to stay under the hypothetical cap, the school district would have been forced to keep the budget at the $179 Million level and cut expenditures elsewhere to keep the salary schedule they have in effect.

On districts which put in double-digit budget increases, the effect of the cap would be quite a bit more drastic. Overrides would have to take place in order to maintain the level of spending.

Of course, given the unstable advance in consumer prices now taking place, the inflation rate is advancing at a 3.94% Rate from April 2007 through April 2008.