The Nov. 13 Wall Street Journal article paints a very dark future for the NY State economy.
NYS has been highly dependent on Wall Street profits to generate tax revenue. As we all know only too well, the party is over. The WSJ does not think the “good times” are going to return. Increased regulatory controls will limit the huge profits that Wall Street has generated during the last decade.
Read the full article at:
http://online.wsj.com/article/SB122653542508722577.html
With State school aid and Medicare the primary two expenditure categories in the NYS budget, these two costs must be reduced.
What does this mean for local property taxes? As state school aid declines, local property taxes must increase …unless school budgets are reduced.
The D&C, Nov. 13, 2008, reported that Gov. Paterson has proposed a reduction in NYS school aid for the current (2008/09) school year. Is the educational sky going to fall?
Personally, I am opposed to mid-year adjustments in NYS school aid
However, NYS embarked on unprecedented expansion of school aid under Gov. Spitzer (2007/08). As usual, the NYS legislature did not critically look at our state’s financial health. Let’s remember that NYS school aid comes from NYS taxes. I warned of this eventuality at a Board meeting last year. Unfortunately, it is “time to pay the piper”.
We can look at the NYS school aid numbers in a more understandable manner using the actual NYS aid percentages. Let’s say:
In 2006, your rich uncle gave you $1,000.
In 2007, this nice uncle gave you $1,047…a 4.7% increase.
In 2008, this very generous uncle gave you $1,229…a huge 17.4% increase over 2007.
In 2009, this uncle promised you $1,379…another large 12.2% increase over 2008.
Today, the uncle’s financial condition is in the toilet so he says he has to cut back on his promise. You, of course, tell him that you counted on that money and it has already been spent. He is sorry, but he is in serious financial difficulty.
He says he must reduce his gift by $108 (7.8%) of the $1,379 that he promised. You still will get $1,271.
$1,271 is a 3.4% INCREASE over 2008. It is a 27% increase over 2006.
Yes, it is not the 12.2% that you thought you were going to get. But for the current economic times, you can argue that 3.4% is a reasonable increase.
Of course, the primary problem is that you (the District) have already allocated all of the anticipated revenue.
Certainly, deciding where the District is going to find $983,000 (the proposed reduction amount) in mid-year is a serious task.
However, the FAIR Plan was rescinded. This means that next year, the District will receive the normal (approx.) $1 million from the Sales Tax that was not budgeted this year. The District will also receive an (approx.) $200,000 payment for back Sales Tax revenue that was not received this year.
Is the educational sky falling this year? I believe there is a combination of financial approaches that will allow Brighton to weather the school aid reduction this year without affecting program or teachers.
The more pressing question: How will the District deal with a 3.4% (or less) increase in NYS school aid next year?
Did you know that under the 4% tax cap proposal, you LOSE the opportunity to vote on the school budget if the proposed tax increase is under 4%?
That’s what the The New York State Commission on Property Tax Relief recommends!!
This proposal will almost insure that every school budget will generate a 3.99% tax increase!
The ONLY direct tax vote we have is school budgets. Note: Only the suburban districts have this vote. The Rochester (city) residents do not vote on the Rochester School District budget.
This tax cap proposal is now being considered by the NYS House and is being pushed by the Governor.
PLEASE! Write your state legislators NOW. ASI-Brighton is opposed to this tax cap because:
- 4% is far too high of a bar for a school tax increase, and
- We lose our school budget voting power if the proposed school budget tax increase is less than 4%.
This “cap” sounds like three-card-monty to me. And the taxpayer loses every time.
Marvin Sachs, our School Board Chairman, has invited all Brighton stakeholders to participate in a survey regarding characteristics desirable in a new superintendent.
Unless you check the Brighton Schools web site regularly, are a PTSA member, or have children in the schools, you probably won’t know about this survey. So, even though you are an important stakeholder, i.e. A TAXPAYER WHO FUNDS THE BRIGHTON SCHOOLS, your voice will not be heard.
If you are reading this, I urge you to go now to the Brighton Central Schools web site, and fill out the survey.
In the space for comments, tell the school board how important it is that we hire a superintendent capable of achieving fiscal restraint in our district. All of the characteristics listed are great, but unless our district can curtail its budget, population loss will continue to erode the tax base and our town, and its excellent schools will continue to deteriorate.
