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You are here: Village Voices The Tax Cap Passes- Now What?
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The Tax Cap Passes- Now What?

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gavelThe latest session in Albany will best be remembered as the one when same sex marriage was legalized. It was a historic law and made many in the state, both gay and straight, beam with pride to be from New York. In this session, the New York State Senate also voted for tax cap legislation. This will have a major impact on the community of Scarsdale and is arguably nothing to cheer about.

Property tax levy growth will now only go up 2 percent or the rate of inflation- whichever is less. This does not mean your taxes will go down. In towns, including Scarsdale, school funding comes primarily from property taxes. This means there will be less money for the schools. With much of the money already earmarked for pensions, health care costs and other mandates, money for educational growth and excellence will stagnate. The tax cap also does not take into account population growth in a town.

A school district will need a super-majority vote of 60% in order to override the tax cap.

While over 10,000 New Yorkers signed a petition opposing the rule, it was passed last Friday night. People who watched the vote closely believe the tax cap only passed because it was bundled with an extension of rent control laws.

Lisa Rudley, Co-Chairman of the New York State Coalition for Local Control (which includes Scarsdale) said in a statement; “This is a very sad day for public education and municipal and county services in New York State.”

Scarsdale Resident and Chair of Coalition for Scarsdale Schools, Arthur Rublin noted in a statement issued earlier this week that Board of Education President Jill Spieler and Superintendent Dr. Michael McGill have made clear that the "cap" in the legislation, beyond which a sixty-percent override vote is required, is wholly unrealistic, particularly absent meaningful mandate relief from Albany.

Ms. Spieler has warned publicly that unless sixty-percent of voters override the cap, it will likely require very significant cuts to program in Scarsdale's schools -- including elimination of many classroom positions, librarian positions, extracurricular clubs, arts activities and sports, and plant improvements.

Despite the passage of the cap, Rublin did want to express thanks to State Assemblywoman Amy Paulin who spoke eloquently and powerfully against the cap on the Assembly Floor, bucking political pressure from the Governor and the Speaker to support the legislation. She also met with the Coalition on several occasion, stayed in close communication with them and worked hard behind the scenes with other members of the Assembly, urging them to vote ‘No.”

With school out for summer recess and parents ready for a break, it is hard to think about school. However, with the stakes this much higher, Scarsdale residents need to turn out to vote for the school budget this coming May. The School Board is currently exploring the establishment of a Schools Foundation to allow parent support for the schools, and with the passage of the tax cap, this may be an idea whose time has come.

gellerr150Jen Geller is a freelance journalist who has covered the economy and markets for over a decade at a major financial news outlet. She lives in Scarsdale with her husband and 2 children. Jen has yet to bake a successful batch of cookies.

 

 

Comments (11)Add Comment
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written by Concerned Resident, July 04, 2011
Without mandate relief, the tax cap is very dangerous. Essentially our governor (who in only his first year in office is already thinking about his next job, ie a Presidential run) has capped overall spending, without getting to the root of the problem, millions in state mandated funds for pensions and other benefits. If you cap the pie and let one side grow uncontrollably, the other side has to get significantly smaller. In our case, the side that matters, the side of the pie where the educational programs are funded is getting squeezed to a dangerous degree. You don't need to be a mathemetician or economist to understand this concept.

A school budget that falls within the mandated tax increase is forecasted to result in a reduction of 28 teachers within the Scarsdale School Distric. Anyone that thinks this type of reduction will NOT have a meaningful impact on the quality of education in our community is kidding themselves.

Just like everyone, theoretically I would like lower taxes, however the plan to get there has to make sense and the plan that the Governor put forth does not. The plan cannot sacrifice our public education system in Scarsdale.

I really hope the School board takes the same approach they have always taken in creating the school budget and gives our entire community a chance to vote on a budget that will maintain the quality of our schools.
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written by A Concerned taxpayer, July 03, 2011
GFL - Tax cap is the law, and I fail to understand how they can "stand up and say no." Only you as a resident of Scarsdale can vote with a supermajority to raise taxes. That is your right. I too came to Scarsdale due to its ammenities, but I also expect value for my money. I am much less rose colored than you and believe the status quo can use a little shaking up.

Realize per a Siena College poll, fully 67% of state residents approved the cap, including 70% of suburban residents. Democracy still rules in a community and state. The majority of the state approved the cap and now a supermajority of 60% Scarsdale residents can approve any bloated budget put before it.

I fail to see how this reasonable check on unsustainable growth will lower our property values.
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written by A Neighbor, July 01, 2011
The tax cap in New York, since it applies to almost all school districts, will not disadvantage Scarsdale realtive to, say, Rye. It also won't disadvantage New York schools relative to New Jersey schools, since there is an effort to restrain school costs there as well. Connecticut is busy raising income taxes and has a very large unfunded Pension liability, so it is hard to see Connecticut stealing our teachers. Will our teachers move further afield? Perhaps, but most have family roots here. Residents of New York have decided to collectively bargin with a professional workforce to force down costs. Why should any liberal dislike this, since after all, Obamacare and the dream of a single payer healthcare system is doing exactly the same thing to the medical profession.
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written by Scarsdale Friend, July 01, 2011
The opponents to this Tax Cap should not worry. Each town will get an opportunity to vote it down, and I can't imagine Scarsdale will not. They always vote through the highest school budgets, why would they let this happen?
Its the others who should worry- even though Cuomo signed this into law, the people of this community can still make it go away for them.
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written by Thank God for the Tax Cap, July 01, 2011
Tax cap opponents/alarmists are knee-jerk reactionaries who like spending other people's money. Absent the tax cap, Scardsale would quickly fall into the Bronxville death spiral, where people who no longer have kids in the school district quickly leave town to be replaced by families whose kids force the school budget ever higher. Right now, remarkably, about half of Scarsdale residents do not have kids in the schools, yet they pay their share of school property taxes. We need to do everything in our power to keep these people in their homes in Scarsdale -- for many reasons, including their long-term commitment to the village, their participation in civic activities, and MOST OF ALL
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written by concerned public service user, July 01, 2011
The prior commenter accuses the majority of "blindly" following school administrators in order to justify his assertions (which no one should accept blindly) about teachers and administrators being "overpaid." The majority sees the connection between compensation and quality and, until quality education declines from its current high level, will not express misplaced resentment to the very people who serve this community so effectively. Sadly, the tax cap restrictions and their negative affect on quality (yes, you get what you pay for and do not get what you don't pay for) will soon get reflected in the classroom, and teachers/administrators will no doubt get blamed. Those who moved to Scarsdale for the schools (or would have moved here) will turn to (or remain in) private schools, and those well-endowed institutions will be the unchallenged avenue for competitive college admission. One need only look at California to see the consequences on the lives of children of a defunded public school system with ensuing plummeting of student performance. Wealthy children in California, of course, attend high performing private schools -- at a much greater cost to their parents than the public system used to be! Pretty silly, if one is genuinely concerned about costs. Of course, this whole thing could be about public services I've always wondered whether or not the strongest proponents (and financial backers) of a NYS tax cap had kids enrolled in the state's public schools. No one ever conducted that particular poll, but I know Gov. Cuomo's kid's attend private, as do the kids' of the financially generous David Koch.
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written by A concerned taxpayer, July 01, 2011
Salaries and fringe continued to grow unchecked by administrators and teachers who both derive benefits from the same pot and whose self-interest is to see it grow. This will add an additional check into a system where parents seem to defer blindly to the administrative view. I fail to see if the Scarsdale School Golden Goose only grows at 2% a year, when all competing municipalities are limited by the same amount, that our children will suffer. Hopefully this may force our overpaid administrators to make some cuts to the overpaid salaries and bloated staff. If they don't, I know plenty of others willing to assume their position.

All current salaries of staff are listed here:

http://www.seethroughny.net/Payrolls/EmployeeSearch/tabid/69/Default.aspx

I believe after reviewing this, one may change their opposition to a check on the current unsustainable system.
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written by G.F.L., June 30, 2011
I live in Scarsdale and I get excellent value for my Scarsdale taxes. I get to live in a great community with wonderful amenties - the pool - the rec program, etc. And, I can keep my kids in public school - no need for that $30,000 per year per kid tuition bill. For those who say taxes are too high - the tax cap is not going to lower your taxes. They are still going to rise. You will do much better moving to another community with lower taxes and leave the rest of us who want to live in a great place alone. I know that if Scarsdale's town amenities and schools decline in value no one is going to want to pay one million dollars for the small home I live in when they can have a much nicer home in Mt Vernon, Tuckahoe or even White Plains. If the town and school board start cutting amienities and programs to meet the cap, in the end we are all going to pay big time as we see our home equity dwindle even further and as we write those 5 digit checks for private schools. i hope the town board and school board will stand up to the tax cap and just say NO!
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written by A Neighbor, June 30, 2011
That we have some of the highest property taxes is extremely relevant. It means that those providing the services have among the highest salary and benefit packages in the country, or their managers cannot provide those services efficiently. We also need to see if we are getting good value for our money. What incomes are relative to property taxes is truly and totally irrelevant. Property taxes are NOT another form of income taxes. If the property tax of a house depended the income of the resident, expect to see even greater volatility in budgets, for as incomes from Wall Street bonus went down, to raise the same revenues for our schools, property taxes would have to go up for everyone, right in the middle of an economic downturn-do you really want that?? The temptation to demand services and demand to have someone else pay for them is strong, but must be resisted.
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written by Response to J.K., June 30, 2011
I disagree with J.K.'s opinions. That we have the highest property taxes is not relevant. We also have some of the best services in the country, which are now in jeopardy because of the smothering effect this ill-conceived blanket legislation will have. What is relevant is how high are individual property taxes relative to income. The majority in Scarsdale is not "overburdened" in this regard. Many groups, including the League of Women Voters, advocated for genuine property tax relief for those genuinely in need in the form of a circuit breaker based on income relative to property taxes. Under the new tax cap, if 60 % voters want an override, then those in genuine need will still get no relief! "Conservative and creative management solutions" have been implemented in village and school governments for years now. Maybe J.K. has some new ones that will not actually erode majority valued services? Yes, fear is a motivator - but will it motivate us in the best direction? Moreover, democracies rule by majority, not fear.
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written by J.K., Scarsdale, June 30, 2011
It would be helpful if this Op-ed, which is masquerading as an Article was labeled properly.

Whatever your opinion, Mrs. Geller, it is not fact, and a good journalist would know to offer a balanced piece of news that provides perspectives from both sides of a story.

You might start by adding to your article:
(1) The tax-cap law will keep in check some of the nation's highest property taxes.
(2) Official's fears of failure from lost budget increases can be interpreted as highly exaggerated, and can also be effectively countered by conservative and creative management solutions.
(3) The fear from local officials of failing to achieve the 60% super-majority override sends a strong message that their constituents want to keep their taxes in check.

Just a few suggestions, to start.

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