RESOLUTION OPPOSING PROPOSED LEGISLATION ESTABLISHING A NEW YORK STATE TAX CAP...
WHEREAS, the Governor, the Majority Leaders of the New York State Senate, and the Speaker of the New York State Assembly have announced an agreement in principle for passage of legislation establishing a tax cap to be imposed on school districts effective the 2012-13 school year;
WHEREAS, the Board of Education has previously denounced such efforts;
WHEREAS, Freeport Public Schools has recently suffered substantial reductions in state aid. Commitments under the Campaign for Fiscal Equity Settlement have been deferred. In 2010-11, the District's state aid loss was $4.5 million, and next year the loss will be $8.8 million, totaling $13.3 million, 5% to 10% of the District's annual tax levy;
WHEREAS, the proposed tax cap will inflict significant "collateral damage" on Freeport and other high needs districts;
WHEREAS, the imposition of a tax cap in the percentage amount equal to the annual increase in consumer price index, not to exceed 2%, will be insufficient to meet projected increases in mandated and unfunded costs imposed on school districts by the State of New York;
WHEREAS, the State has repeatedly used the ruse of transferring State costs to local school districts and municipalities to avoid increases in State income taxes and has increased costs of local school districts such as those related to employee pensions, which have increased dramatically and are beyond the control of local school districts and municipalities;
WHEREAS, the State has refused to consider amendment of the Taylor Law of the State of New York removing the mandate that teacher salary increment be granted even after a contract expires;
WHEREAS, a property Tax Cap as proposed will inescapably lead to drastic cuts in essential local school district programs and services as well as significant layoffs of school district employees;
WHEREAS, Tax Cap Legislation would permit school district voters to approve school budgets containing increases that exceed the tax cap, thereby effectively establishing minority rule in matters of school funding such that the votes of 40% of voters count more than the votes of a majority;
WHEREAS, the Tax Cap Legislation perpetuates the inequities in educational funding since poorer districts will start with few resources and will generate less revenue than with the same percentage tax increase as their wealthier counterparts;
WHEREAS, the Tax Cap Legislation does nothing to reduce costs such as pension and health insurance that are significant factors in driving local property tax increases; and
WHEREAS, 80% of school costs arise from personnel, it is likely that a significant number of jobs will be lost as districts make necessary cuts to avoid exceeding the tax cap.
NOW, THEREFORE, BE IT RESOLVED, by the Freeport Union Free School District that the Governor of the State of New York and the members of the NY State Senate and NY State Assembly must reform the cost drivers that lead to high property taxes in New York - including unfunded mandates, the funding of pension benefits and health insurance.
BE IT FURTHER RESOLVED, that a copy of this resolution be forwarded to the Governor, Senate Majority and Minority Leaders, Assembly Speaker and Minority Leader, the Chair of the Education Committee of the Senate, the Chair of the Education Committee of the Assembly, and to the members of the State Senate and Assembly officials who represent the Freeport Public Schools.
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