School Board Member: The Tax Cap

As a school board member, taxpayer, and Farmingdale resident, I believe we have the makings of a perfect education disaster on our hands.

The bigger picture is the dawn of the lost generation. If the state aid cuts continue, and if the tax cap goes through without numerous exclusions, we can say "goodbye" to an entire generation of students.  Here’s why:

The Governor’s proposed tax levy system has a cap of 2 percent or the Rate of Inflation, whichever is lower. For a district like Farmingdale, with salary step increases, state mandated additional contributions to TRS and ERS, and health insurance increases, each one individually would supersede the tax levy cap. The district would be making program reductions annually.

The new law approved by the NYS Senate does afford our community to increase our tax levy by 2 percent with approval by a 60 percent majority of the voters.  Even in the Farmingdale School District, where we have been keeping the tax levy increase to 2 percent or less for the last 3-4 years, we are unlikely to receive 60 percent voter approval.

Even if we applied every bit of the reported $5 million in unappropriated fund balance, that is a one shot fix.  Next year to get under the cap, we will have to cut programs. Predictable recurring revenue along with a culture of business promotion and growth is needed.

Combined Wealth Ratio (CWR) is one of the factors used to calculate state aid.  The CWR uses property values to help determine the relative wealth of a region.  As we’ve seen from the Nassau County tax assessment system, the use of real estate values as an indicator of wealth has created major problems.  The formula needs to be examined and a better measure needs to be factored into the equation.  Long Island continues to receive 12 percent of the total state aid while providing the state with 17 percent of total income taxes.  Long Island subsidizes education costs for the rest of the state.

If this tax cap goes through in its current incarnation, the districts that do not rely on state aid will be able to survive this round of cuts, and may even be able to exceed the tax cap. If that pattern continues, it will throw off the balance between the wealthier districts and those middle and low wealth districts. Opportunities for students will be based entirely on the specific school districts they are attending instead of providing equitable opportunities for all students.

Municipal employee unions need to take a leading role in resolving this problem.  If the unions would agree to eliminate step increases, contribute more to their health care and retirement plans and stop inflating salaries to increase their retirement, we would be able to save many jobs. If we start laying off teachers and support staff, we are going to see a downward spiral until we are left with a bare bones educational system that will be the envy of none.

As part of its Patch will feature local opinions on the subject. Interested in having your voice heard? Contact Farmingdale Patch editor Amanda Fiscina at amandaf@patch.com.