The Tax Cap Passes- Now What?

The 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.

Jen 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.