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Property Tax Cap Benefits Taxpayers

New York’s property tax cap continues to serve its purpose for taxpayers during each school budget season. Whether the cap will work in the long run – or simply dry up districts’ reserve funds – remains to be seen.

Total school taxes have grown by just over 2 percent each year since the cap took effect in 2012, undercutting the 30-year average of 6 percent, according to a report by the Empire Center released this week. Under the cap, school boards must limit tax levy increases by 2 percent or the rate of inflation each year. Overriding the cap requires support from 60 percent of voters, while budgets coming in below the limit need only a simple majority.

Of school districts’ budgets that came in under the cap, 99.7 percent passed, the state School Boards Association announced Wednesday. This includes all local districts. Across the state, just 61.1 percent of budgets exceeding the limit earned voter approval.

Local school officials deserve credit for presenting fiscally responsible budgets and avoiding catastrophe on voting day. Crafting taxpayer-friendly budgets while providing a quality education will remain a challenge in the years to come, however.

The state Senate passed a bill Tuesday that would make the property tax cap permanent. New Majority Leader John Flanagan, R-C-I-East Northport, called upon the Assembly and governor to support the measure. “By permanently continuing the cap, we will bring certainty to taxpayers, help them keep more of their hard-earned money, create good jobs and grow our economy for the future,” Flanagan said.

According to the state Association of School Business Officials, the spending increase across the state totals 1.9 percent this year. While legislators should be commended for trying to limit tax and spending growth, keeping taxpayer contributions in check may prove difficult in the coming years as reserves dry up.

The School Boards Association noted 97 percent of state districts used reserve funds to balance their budgets for 2014-15. This year, Jamestown Public Schools’ budget, for example, includes $1 million from the district’s reserve fund.

Perhaps Michael J. Borges, Association of School Business Officials executive director, has a solution to districts’ spending issues. “More needs to be done to relieve school districts of costly mandates that continue to drive spending that are outside the control of local leaders,” he said.

Until the state makes life a little easier for local districts with increased aid or mandate relief, expect stressful budget seasons for school board members as they dry up their reserves.

In the meantime, local officials can do their part by considering consolidation opportunities. Rural districts could follow in the footsteps of the Clymer and Panama schools, which have found success with Bert Lictus, their shared superintendent. Meanwhile, a tuition contract that sends Ripley students in grades seven through 12 to Chautauqua Lake Central School has been beneficial for both districts.

Opportunities for savings exist. School officials will be forced to find them – sooner or later.

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