The State Capitol, Albany NY.
ALBANY – Not everyone is in favor of extending the state tax cap as it currently exists.
Homeowners and elected officials are obviously in favor of the cap, but school officials, teachers unions and others involved with public education are claiming that the inability to raise taxes by even a modest amount could mean cuts in the classroom.
According to the Albany Times Union, earlier this week the chairman of the state Association of School Business Officials sent a letter to Senate Republican Majority Leader John Flanagan, explaining that flat funding due to low inflation could lead to layoffs and program cuts.
The state property tax cap, passed in 2011 by lawmakers and signed Gov. Andrew Cuomo, limits property tax increases to 2 percent annually or the rate of inflation as defined by the Consumer Price Index — whichever is lower. And during the past few years, the base school tax hike allowed for most districts has remained below 2 percent because of low inflation.
But School districts face rising costs for employee health care, pensions and annual longevity, or “step” raises for teachers that are built into most union contracts. And while the tax cap has exemptions for higher pension costs and other unique expenses, advocates say that’s not enough.
As part of their strategy, education groups want to lower the 60 percent voter override that is required to exceed the cap.
Tax cap supporters, meanwhile, say low inflation should be a signal for school districts to control their costs, just like other segments of the economy.
Leave a Reply