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New York State mandated Property Tax Cap

BEA Budget Advisory Committee Recommendation Regarding Piercing The Tax Cap. New York State mandated Property Tax Cap. What is the Tax Cap?. A NY State Law enacted in June 2011

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New York State mandated Property Tax Cap

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  1. BEA Budget Advisory Committee Recommendation Regarding Piercing The Tax Cap New York State mandated Property Tax Cap

  2. What is the Tax Cap? • A NY State Law enacted in June 2011 • Puts a limit (a “tax levy limit”) on how much the School District can increase the property taxes it may collect from taxpayers from one year to the next • Requires a majority (50% +1) approval of those who vote on the budget. • Allows voters to override the tax levy limit with a “super majority” if 60% of those who show up to vote support the higher tax levy amount by voting “yes” on the budget. • Baldwin’s 2012-13 tax levy increase was 2.39% • The estimated 2013-2014 tax levy cap is 3.14%

  3. How does the Tax Cap affect the Budget? *Average home value = $340,326

  4. How does the Tax Cap affect the Budget? *Average home value = $340,326

  5. Impact of 3.14% Tax Levy Cap on the Educational Program • Minimally, adjustments to all of the following programs will be necessary to close a $6,000,000 gap. • Kindergarten • Art and Music Program • K-12 sports and activities • Administration • Secondary schedules • Class size • Field trips • Gifted and Talented Program • Transportation (with community approval)

  6. Factors FactorsDriving Costs Limiting Revenue • Teacher Retirement • Employee Retirement • Health Insurance • Demands/Mandates • Special Education • Academic Standards • APPR • Tax Certiorari • Funding OPEB • Property Assessments • Tax Levy Cap • Decreased State Aid • Capped State Aid • Diminishing Reserves

  7. Employee Retirement System (ERS)Teacher Retirement System (TRS)and Health Insurance($$$)

  8. Employee Retirement System (ERS)Teacher Retirement System (TRS)and Health Insurance(% increase)

  9. State Aid

  10. Appropriated Reserves *Presuming within tax-cap limit

  11. Baldwin Schools Revenue Sources *Presuming within tax-cap limit

  12. Conclusion Based on the following: • Approved 2012-13 Budget of $119.4M • Estimated 2013-14 Rollover Budget of $124M • Estimated 2013-14 Revenues of $118M (3.14% tax levy increase) • Gap = $6M • In order to maintain the educational program without significant cuts, which the Baldwin community has consistently indicated it desires, the BEA Budget Advisory Committee believes this will require piercing the tax levy cap. • Therefore the BEA Budget Advisory Committee recommends piercing the tax levy cap.

  13. QUESTIONS?

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