Regional
Task Force on School Property Tax Reform
Organized by Greg Ball NY State Assemblyman
Panelists: Nancy Calhoun, Alice Roker, Ifay Chang and
Mark Drexel
Held on Oct. 20, 2007 at Mercy College in Yorktown
Introduction
This
fall Assemblyman Greg Ball hosted a non-partisan, apolitical, public forum and
work session as part of his Regional Task Force on School Property Tax Reform.
The event, covering 6 counties, was held at Mercy College in Yorktown NY on
October 20th, 2007. Four panelists were invited to respond and
listen to issues. Representatives in attendance came from Dutchess, Orange, Westchester,
Putnam and Rockland counties, as well as other regions of New York.
Background
Property
taxes in this region are among the highest in the nation. Action must be taken
as a community to address the underlying causes for the ever increasing burden
of combined property taxes. It is imperative that the communities work together
to confront this pressing issue.
The
current system is flawed and we must push forward not as a political divided body
but as a community united. The single most devastating reality holding any
chance for comprehensive reform back is the lack of consensus in Albany, and at
home. The objective of this planned series of forum is to reach a general
consensus not on the problem, but the solution.
Purpose
The
goal for this initial forum was to develop a community based solution at the
grassroots level for this complex problem, or at the very least begin the
dialogue. This “Suburban Initiative” has begun the process that will lead to
consensus on an alternative to the regressive property tax model for funding
our schools and bring the School Tax Reform debate to produce concrete action
items.
Agenda
o
Welcome
o
Panelists Remarks
o
Public Comment
o
Unfunded School
Mandates
o
Income Tax System
o
Rockland School
District Mandate Findings
o
Legislative Initiatives
o
Next Steps
o
Greg Ball, Assemblyman
·
Welcome to the Public
Form and acknowledge Mercy’s Support
· State the Purpose and Important Issues to Be Discussed
· Seek Public Opinion and Reduce to Legislative Action
o
Nancy Calhoun, Assembly
Woman
·
The current Albany
agenda
·
Past legislative work
related to Tax Reform
· New proposals under consideration
o
Alice Roker, Acting
Yorktown Supervisor
·
Residents’ concerns
· Looking forward to an impartial discussion on issues
o
Dr. Ifay Chang, School
Board Member, Somers Central School District
·
Fundamental Principles
on Taxation, Attitudes Leading to Taxation Problems, Roots of Over Tax and Tax
Burden ( distributed a document at www.mwsearch.com/schooltax)
· School Tax Issues, Unfunded Mandates, Various Proposed School Tax Models and Citizens’ Concerns
o
Mark Drexel, School
Board Member, Yorktown School District
·
Presentation on State
Unfunded Mandate (See Below)
·
Issues Related to Tax
Burden
· Encouraging Debates
Subjects Addressed during
Public Comment
o
After school costs
·
Need of extracurricular
activities?
·
Alternate funding model
– user fees
·
Cost burden
o
Unfunded legislative
and state education department (SED) mandates
·
State wide funding
option
·
Eliminate mandates
·
Require state fund
mandates >$10,000
·
Income based funding
·
State control may
result in increased cost, constraints and loss of local control
·
Effectiveness of
rebates (STAR)
·
Unfairness of non
property owners lack of contribution to funding
o
Cap on School Budget
Increase
·
Massachusetts Model and
Super Majority Power of Override
·
Feasibility in New York
o
Special education
program costs
·
Benchmark Florida’s
100% reimbursement of education costs
·
Cap special education
costs
o
Locked box lottery
·
Revamp process that
funnels lottery funds into general fund
·
Administrative costs
excessive
o
Transportation costs
·
State wide contract
o
Consolidation of
services
·
Explore opportunities
o
Funding mechanism
options
·
Funding incentive to
classify special education students
·
Require business
official to be elected
·
Encourage more state
reimbursement
o
Current Bill on the
Floor
Unfunded School Mandates
State mandates comprise a major influence on school
budgets. The average school budget increase in Westchester County has been
7.97%. While in Putnam County, the average school budget increase has been
higher at 8.25%. Unfunded mandates can account for as much as 5% of the average
increase. Without the mandates, the average increase in school budget would be
under 3% in Westchester and approximately 3.25% in Putnam. Possible avenues to
accomplish mandates relief are:
o
Requiring any bill that
enacts or amends any expenditures or appropriations shall state the estimated
cost.
o
Requiring that any
state mandated program imposed on school districts, be funded by the state.
o
Reviewing all existing
non curriculum mandates to determine financial impact and educational benefit
to determine the need to continue the mandate.
o
Requiring all future
mandates be optional unless approved by the State Legislature and signed by the
Governor.
Alternative Tax System
Proposals
The property tax, used to raise school revenue, is
egregiously unfair because it is not based on the ability to pay. The options
are an income based system or a sales tax based system. The former would eliminate the property tax
and replace it with a percent surtax on the federal adjust gross income of New
York State taxpayers. The latter suggests funding through sales tax. Both
require further discussions.
Rockland School District
Mandate Findings
The cost to taxpayers of unfunded mandates,
non-reimbursed, but required programs and required increases in pension fund
contributions for Rockland County totals $170,272,398 or 27.5% of taxpayer
portion of the county’s public school budget. Big ticket items deserve more
attention and legislative action.
Items for further
legislative action