ALBANY — A special commission recommended Monday that New York state cap the growth of property taxes at 4 percent a year, among other fiscal reforms.
The commission was established by former Gov. Eliot Spitzer to address the difficult political issue of rising property taxes.
His successor Gov. David Paterson’s support for a cap has already pitted him against the powerful statewide teachers’ union.
“Property taxes really have been the enabler of Albany’s dysfunctional culture,” Paterson said. “Politicians for too long have overspent what budgetary allowances have made and the problems were passed along to local governments. New York state local taxpayers have paid the price.”
If Paterson and state legislators act on the recommendations from state Commission on Property Tax Relief, local school taxes could be capped at either 4 percent or 120 percent of inflation, whichever is less. That would be about half of the annual average growth of most recent years.
Getting a property tax cap passed will be a challenge for Paterson.
The Democrat-led Assembly has opposed it in favor of a “circuit breaker” in the past, and Senate Republicans — who supported a tax cap — won’t be in power in January when the Legislature returns.
Dan Weiller, a spokesman for Assembly Speaker Sheldon Silver, said they are reviewing the report. Malcolm Smith, the Senate Democratic leader, said New Yorkers would benefit from a tax cap.
A school district could exceed the cap if 55 percent of voters agree. But if the district received more than a 5 percent increase in state aid, 60 percent of voters would have to agree to override the cap.
Once a cap on property tax is in place, the commission recommended additional relief for lower-income homeowners through a “circuit breaker” that would base school taxes on income, rather than the homes’ market value.
The commission recommended redirecting at least $2 billion from the current STAR program for property tax relief to a circuit breaker.
School districts should also rein in the costs of salaries, pensions and health care, along with general operating and capital expenses, according to the report.
The report also recommends changing special education, so children with less severe challenges can get the same services and help through the general education system.
The commission also urged politicians to reform laws and mandates that drive up government spending, and avoid introducing new legislative or regulatory mandates that aren’t funded.
“Throughout the state, school officials testified to the commission that they do not want to raise taxes above the capped amount, but to succeed they must have mandate relief,” said Tom Suozzi, the chairman of the commission and Nassau County executive.
Richard Iannuzzi, president of New York State United Teachers, said a property tax cap was almost an “unfunded mandate” that would harm Paterson’s attempt to address an expected $15 billion budget gap.
“It would be the state once again telling local school districts what they can or cannot do without providing the finances to do it,” he said.
Iannuzzi said he wouldn’t be opposed to some of the proposals to consolidate school districts or services. He said combining things like legal or accounting services can save schools money and buy a higher level of expertise.
E.J. McMahon, director of the fiscally conservative Empire Center for New York State Policy, said the governor does need to cut school aid, but not unless lawmakers ensure the cost wouldn’t be passed to taxpayers.
“I don’t think the tax cap is by any means dead ... Homeowners are going to be more stressed than ever by school property taxes in the year ahead,” McMahon said. “Support for a cap can only grow if the governor makes the slightest effort to keep it on a front burner.”
Paterson received the final report at a press conference at the Capitol.
On the Net
http://www.cptr.state.ny.us/
His successor Gov. David Paterson’s support for a cap has already pitted him against the powerful statewide teachers’ union.
“Property taxes really have been the enabler of Albany’s dysfunctional culture,” Paterson said. “Politicians for too long have overspent what budgetary allowances have made and the problems were passed along to local governments. New York state local taxpayers have paid the price.”
If Paterson and state legislators act on the recommendations from state Commission on Property Tax Relief, local school taxes could be capped at either 4 percent or 120 percent of inflation, whichever is less. That would be about half of the annual average growth of most recent years.
Getting a property tax cap passed will be a challenge for Paterson.
The Democrat-led Assembly has opposed it in favor of a “circuit breaker” in the past, and Senate Republicans — who supported a tax cap — won’t be in power in January when the Legislature returns.
Dan Weiller, a spokesman for Assembly Speaker Sheldon Silver, said they are reviewing the report. Malcolm Smith, the Senate Democratic leader, said New Yorkers would benefit from a tax cap.
A school district could exceed the cap if 55 percent of voters agree. But if the district received more than a 5 percent increase in state aid, 60 percent of voters would have to agree to override the cap.
Once a cap on property tax is in place, the commission recommended additional relief for lower-income homeowners through a “circuit breaker” that would base school taxes on income, rather than the homes’ market value.
The commission recommended redirecting at least $2 billion from the current STAR program for property tax relief to a circuit breaker.
School districts should also rein in the costs of salaries, pensions and health care, along with general operating and capital expenses, according to the report.
The report also recommends changing special education, so children with less severe challenges can get the same services and help through the general education system.
The commission also urged politicians to reform laws and mandates that drive up government spending, and avoid introducing new legislative or regulatory mandates that aren’t funded.
“Throughout the state, school officials testified to the commission that they do not want to raise taxes above the capped amount, but to succeed they must have mandate relief,” said Tom Suozzi, the chairman of the commission and Nassau County executive.
Richard Iannuzzi, president of New York State United Teachers, said a property tax cap was almost an “unfunded mandate” that would harm Paterson’s attempt to address an expected $15 billion budget gap.
“It would be the state once again telling local school districts what they can or cannot do without providing the finances to do it,” he said.
Iannuzzi said he wouldn’t be opposed to some of the proposals to consolidate school districts or services. He said combining things like legal or accounting services can save schools money and buy a higher level of expertise.
E.J. McMahon, director of the fiscally conservative Empire Center for New York State Policy, said the governor does need to cut school aid, but not unless lawmakers ensure the cost wouldn’t be passed to taxpayers.
“I don’t think the tax cap is by any means dead ... Homeowners are going to be more stressed than ever by school property taxes in the year ahead,” McMahon said. “Support for a cap can only grow if the governor makes the slightest effort to keep it on a front burner.”
Paterson received the final report at a press conference at the Capitol.
On the Net
http://www.cptr.state.ny.us/
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