Newly sworn-in Governor Andrew Cuomo supports a cap on property taxes. While this might be welcomed by tax-paying residents, area school districts may suffer significant losses. The cap is planned to be two percent, or the rate of inflation, whichever is less.
Cazenovia Central School District relies heavily on state aid and revenue generated from property tax. In the past year, state aid has been reduced by 18 percent. The district may have to consider reducing staff and removing programs from the curriculum to account for the potential tax cap and state mandates.
If no additional state aid is received this year and property taxes are capped at 2 percent, the district will have to cut $900,000 from the budget.
“We are looking at everything that we spend within our budget; everything from staffing, to supplies and equipment, to what BOCES services we purchase,” Assistant Superintendent Bill Furlong said. “Everything is on the table this year, in terms of reviewing whether it is absolutely necessary or not. And unfortunately there are probably some things people view as necessary that will also be eliminated from the budget.”
A two percent cap would bring a maximum of $300,000 of tax revenue to the district. If the cap is made at the rate of inflation, which is currently below two percent, even less will be available to Cazenovia schools. Furlong warned that the growing costs will leave the district in a deficit.
“Next year our retirement system costs will increase by $350,000,” Furlong said. “That’s provided no other costs go up. So, no salary increases and no increases in health insurance, which we already believe will go up 5.5 percent. With no other increases in expenses, we’ll still be $50,000 in the hole.”
However, with a 60-percent majority, residents have the ability to override the cap during budget elections.
Superintendent Bob Dubik organized a community forum on Jan. 13 to allow residents to voice their opinions to guests State Sen. David Valesky and Assemblyman Bill Magee. Townspeople in attendance voiced concerns such as the tax cap, unfunded state mandates, pension system abuse and statewide job loss.
“Enough is enough,” said Cazenovia School Board member and state employee, Cindy Bell-Toby, when discussing state mandates. “If they aren’t mandatory, they shouldn’t be done at this time.”
District expenses such as facilities’ maintenance, paying prevailing wages to outside contractors and pollution control compliance for buses, which adds $10,000 to the cost of every new bus, are increased by state mandates.
Valesky mentioned Cuomo’s recently formed “Mandate Relief Redesign Team” to the forum attendees. The newly appointed 23-member team will examine ineffective mandates and look for ways to reduce costs.
The representatives detailed plans for the upcoming year and assured residents their concerns would be heard in Albany.
