The “tax cap” currently being discussed by our dysfunctional NYS Legislators is a scam on NYS taxpayers. Here are four reasons:
1. It is NOT a cap.
2. It reflects property taxes - NOT school budgets.
3. The higher NYS Aid to Education, the more the local property tax burden can be reduced.
4. 55% of the school budget voters can override the 4% property tax increase.
Let’s look at each reason in more detail.
1. NOT A CAP: The proposal recommends a 4% property tax INCREASE PER YEAR. A legitimate “property tax cap” would be based on a percentage of property assessed value. With this proposal, your property tax can continue to increase at a very healthly 4% compounded annually. In five years, a 4% annual increase results in a 21.6% increase!
2. NO SCHOOL BUDGET CONTROL: This proposal does not control school budget increases. School budgets can increase based on NYS Aid To Education while the property tax increase is held to 4%. See #3.
3. NYS AID TO EDUCATION: School budgets reflect a SPENDING plan. Revenue to support the spending plan is derived from:
- Sales Tax
- Investment Income
- Rentals
- Other Income
- Fund Balance
- and the BIGGY….NYS Aid To Education
Then, subtracting all of the above items results in a balance that must be paid by the Property Tax Levy.
Therefore, the more NYS Aid To Education, the less the Property Tax Levy.
The problem: YOU pay for NYS Aid To Education through your NYS income tax.
Legislators often state they will only support the “cap” IF Aid To Education is maintained or increased. So your NYS income tax goes UP while your local property tax may hold at a 4% annual increase.
By the way, NYS Aid to Brighton INCREASED 12.2% in 2008/09 and 17.4% in 2007/08. HUGE increases that held down the property tax increase.
4. 55% VOTER OVERRIDE: During the last Monroe County school budget voting, only one district had less than 55% of the voters approve their budgets. And that one district was at 54%.