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Nassau-Suffolk School Boards Association Resolutions Dinner & Meeting September 23, 2008 The Property Tax Cap by PowerPoint Presentation
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Nassau-Suffolk School Boards Association Resolutions Dinner & Meeting September 23, 2008 The Property Tax Cap by

Nassau-Suffolk School Boards Association Resolutions Dinner & Meeting September 23, 2008 The Property Tax Cap by

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Nassau-Suffolk School Boards Association Resolutions Dinner & Meeting September 23, 2008 The Property Tax Cap by

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  1. Nassau-Suffolk School Boards Association Resolutions Dinner & Meeting September 23, 2008 The Property Tax Cap by the Numbers: The Impact on Our Schools Presented by: Gary D. Bixhorn Eastern Suffolk BOCES Chief Operating Officer SCSSA Legislative Chairperson 1

  2. Tax Levy Basics • The School Property Tax Levy represents the amount of funding a school district needs to raise through property taxes to balance its budget. • The property tax levy is calculated as follows: Projected School Spending ( - ) minus state aid ( - ) minus other revenues ( - ) minus prior year’s fund balance = Property Tax Levy • On Long Island property taxes comprise nearly 70% of school funding. 2

  3. Tax Cap Basics • The proposed Property Tax Cap will cap tax levy growth at the lesser of 4%, or 120% of increase in Consumer Price Index (CPI). • Does not cap the tax rate 3

  4. Tax Cap ~ Related Issues • Foundation Aid Formula • High Tax Aid • Contingency Budget Caps • Wealth Gap / Equity 4

  5. Related Issues ~ Foundation Aid Formula • Drives 70% of all state aid. • 72 of 121 (60%) Long Island districts at 3% minimum, including 15 with Combined Wealth Ratio (CWR) < 1.0. • The statewide Foundation Aid per pupil is 39% greater than Long Island. 5

  6. Related Issues ~ High Tax Aid • Nearly 70% of all High Tax Aid is directed to Long Island districts. • 98 Long Island districts received more in High Tax Aid than in Foundation Aid increase. 6

  7. Related Issues ~ Contingency Budget Cap • After voter rejection, budget increase capped at lesser of: • 4% increase; or • 120% of increase in CPI • Specific expenditures may be excluded from cap calculation 7

  8. Related Issues - Wealth Gap / Equity Percentage of Students in Long Island’s Least Wealthy and Wealthiest School Districts Passing the Elementary/Middle Level Assessments and Regents Exams 8

  9. Tax Cap ~ 2009-10 “What If” Scenarios • Spending • State Aid (Foundation, High Tax, Other) • Fund Balance / Other Revenues • Tax Levy • Tax Cap • $ Reduction to Reach Cap • % Spending Increase After Reduction 9

  10. Tax Cap ~ 2009-10 “What If” Scenarios Note: % = Change from Prior Year (2008-09) 10

  11. Allowable Spending Increase within Cap Nassau County School Districts (6)- with Lowest % Spending Increase within Scenario E 11

  12. Allowable Spending Increase within Cap Nassau County School Districts (6)- with Highest % Spending Increase within Scenario E *Jericho is another district with a 3.7% increase 12

  13. Allowable Spending Increase within Cap Suffolk County School Districts (7) - with Lowest % Spending Increase within Scenario E Note: Excludes school districts with significant tuition income 13

  14. Allowable Spending Increase within Cap Suffolk County School Districts (7) - with Highest % Spending Increase within Scenario E *Other districts with a 3.3% increase include Pt. Jefferson, Shelter Island, Fire Island, Southampton, Rocky Pt , E. Moriches, Patchogue-Medford 14

  15. Tax Cap Issues • Cap impact will differ dramatically among districts. • Cuts assume budget increase of 5% - this will vary. • Cap projected at 4% - this may be high. • Aid projected prior to Wall Street “crisis”. • Higher budget increases, less state aid, or a lower cap will increase the required budget cut. • Employee benefits and energy related cost increases alone, will consume most, if not all, of the capped increase. • A cap already exists – however, it is implemented after voters reject the budget, rather than prior to a community vote. 15

  16. President – Pamela Betheil Vice President– Lisa Israel Member and Clerk – Fred Langstaff Members Walter Wm. Denzler, Jr. Susan Lipman Jeffrey Smith Stephen Dewey, Ph.D. Joseph LoSchiavo Sandra Townsend Chris Garvey Anne Mackesey Andrew T. Wittman, Jr. William Hsiang William K. Miller John Wyche District Superintendent Chief Operating Officer Edward J. Zero Gary D. Bixhorn Associate Superintendents Barbara M. Salatto – Management Services Julie Davis Lutz, Ph.D. – Educational Services Assistant Superintendent Michael J. Locantore – Human Resources Directors Marilyn H. Adsitt – Educational Support Services Keith G. Anderson – Building Services Robert Becker – Special Education Andrea Grooms – Communications, Research and Recruitment Gregory Hamilton – Administrative Services Maureen Kaelin – Business Services Sylvia Savarese – Technology Integration Joan Skelly – Career, Technical and Adult Education Jeanne K. Weber – Regional Information Center Candace White-Ciraco, Ed.D. – Planning and Program Improvement EasternSuffolk BOCES Board and Administration Eastern Suffolk BOCES does not discriminate against any employee, student, applicant for employment, or candidate for enrollment on the basis of gender, race, color, religion or creed, age, national origin, marital status, disability, or any other classification protected by law. For further information or concerns regarding this statement, please contact the Eastern Suffolk BOCES Department of Human Resources at (631) 687‑3029.

  17. President Dr. Thomas Shea President-Elect Mr. Wendell Chu Vice President Mr. Anthony Annunziato Treasurer Dr. Alan Groveman Secretary Mr. James McKenna Past President Dr. Rosemary Jones SCSSA Leadership SCSSA Officers Board of Directors/Cluster Leaders Babylon Dr. Ellen Best-Laimit Brookhaven Dr. Roberta Gerold East End Dr. Charles Kozora Mrs. Linda J. Rozzi Islip Ms. Patricia Sullivan-Kriss Smithtown/ Dr. James Feltman Huntington Executive Director Dr. Candee Swenson Legislative Committee Legislative Chairperson Mr. Gary D. Bixhorn Mr. Wendell Chu Dr. Allan Gerstenlauer Mr. Thomas Quinn Mr. Anthony Cacciola

  18. Any Questions?