CHENANGO COUNTY – After reading the suggestions made last week by the New York State Commission on Property Tax Relief, local school superintendents are wondering if one flat solution will really work for all of the school districts.
Last week, the commission released a report recommending New York take steps to limit property taxes, including a property tax cap that would limit the annual property tax levy to 4 percent or 120 percent of the Consumer Price Index, whichever is less. While many of the school superintendents agree that New York does need property tax relief, several seem uncertain if a cap is the solution.
“I don’t think anybody is against the idea of property tax relief,” said Otselic Valley Superintendent Lawrence Thomas. However, the OV superintendent said he feels schools are genuinely trying to keep costs down. “I’m concerned that we’re looking at implementing a tax cap as opposed to looking at what’s in the budget that we need to keep going. Some of these expenses are outside of our control. By implementing a flat cap, that might inhibit schools’ ability to service kids,” Thomas said.
Oxford Superintendent Randall Squier agreed. “(The tax cap) would be an added restriction on what we are trying to do locally with our schools,” Squier said. “I don’t know if a cap on the tax levy is the right way to go. A cap on actual spending might be a better way. It would have a more direct impact on spending,” Squier said.
In Chenango County, the school budgets range between $8.8 million in Otselic Valley and $37.5 million in Norwich, and the amount of money gained for every 1 percent tax levy increase depends on the size of the school district. “The 4 percent tax levy increase varies tremendously from district to district,” said Greene Superintendent Gary Smith. The other superintendents echoed the same sentiments. In Otselic Valley, a 4 percent tax levy increase generates less than $100,000. “For us as a school district in this market, that doesn’t pay for the current increase in fuel or benefits, the things that are set costs for us. For a small school that could be debilitating,” Thomas said.
Squier explained that limiting the tax cap levy would have meant an additional $100,000 in cuts in Oxford this year. He said he feels the tax cap plan “favors wealthy suburban districts.”
While the commission did call for the cap on the property tax levy, it also stated a school could exceed that amount if voters approved the budget by a positive vote of at least 55 percent, and if the school had received a five percent or greater increase in state aid, they would need a vote of 65 percent or greater. However some of the superintendents were unsure their districts would support an increase above the levy amount.
In Otselic Valley, the budget was voted down twice in the last three years. “If you look at the trend of the last 15 years, it looks unlikely that people would be willing to exceed the 4 percent by very much,” Thomas said.
Smith was more optimistic about the recommendations, but said he hopes the legislators will look at the whole picture and not just the tax cap. “It’s important to take a look at the whole proposal,” Smith said, pointing to other recommendations such as relief for districts from un-funded state mandates and a STAR program that would address individual tax payers based upon their income and ability to pay. “I’m concerned that the Governor seems to be focused on just the 4 percent tax cap and hasn’t talked about the many other recommendations,” Smith said. “If you look at it all put together, I think school districts can continue to provide the same programs for students.” Smith said the issues of state mandates, which include the health insurance and retirement costs in addition to mandated educational curriculum, need to be addressed if schools are to control spending. “It’s certainly worth studying,” Smith said of the commission’s recommendations.
Squier was less confident that the state could control the number of un-funded mandates. “This year alone, we spent at least one percent of our tax levy just on new un-funded legislative mandates,” Squier said. “I’m skeptical that the state can refrain from telling school districts what to do and how to teach.”
The Oxford superintendent explained that the reasons taxes are up is because of the costs of doing business. He explained many businesses have left New York state because of increases in costs. “Unlike businesses, we can’t pull up and leave. We have to send our costs on to local taxpayers,” Squier said.