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Entire school budget faces referendum in NY

By Christine Haines chaines@heraldstandard.Com 4 min read

The Pennsylvania state Senate looked to examples in other states before drafting a bill that would require all property tax increases to go before the public in a referendum

Sen. Camera Bartolotta, R- Monongahela, said similar legislation is already in place in Ohio and New York.

According to the New York Department of Taxation and Finance, school district tax increases are limited to two percent or the rate of inflation, whichever is lower. Budgets for nearly all school districts New York go before the public for approval, with a simple majority required for passage. Higher increases must be approved by 60 percent of the voters.

“There are limited, narrow exclusions to the cap, including certain costs of significant judgments arising out of tort actions and unusually large year-to-year increases in pension contribution rates,” the New York guidelines for the tax cap implementation state. The property tax cap applies to municipalities as well as to school districts.

“School districts in New York have two chances to have their budgets passed every year. The initial statewide school budget vote day is the third Tuesday in May every year,” Al Marlin, communications manager for the New York State School Boards Association wrote in an email response to questions about New York’s system.

According to Marlin, districts where the budget isn’t approved in the May vote, can put a second budget before the public a month later. If the budget still fails to pass, the district must adopt a contingency budget with no tax increase.

Over the past five years nearly all of the New York budgets needing a simple majority have been passed by the public, with passage rates ranging from 93 to 99 percent. Only a small number of districts each year presents a budget needing a supermajority, with about 60 percent of them receiving approval each year except for 2013 when only 25 percent received approval. Less than two percent of the state’s 678 districts needing voter approval had sought increases that required the higher percentage for passage in 2013.

Schools in the state of New York are facing both financial and educational insolvency, according to a 2014 report by the New York State Association of School Business Officials.

“School districts are balancing their budgets at the cost of educational programs, as evidenced by cuts in professional staff. School districts have reduced staff 10 percent over the past five years, while pupil enrollment has declined only three percent,” the executive summary to the report states.

According to the New York Department of Taxation and Finance, school district tax increases are limited to two percent or the rate of inflation, whichever is lower. Budgets for nearly all school districts New York go before the public for approval, with a simple majority required for passage. Higher increases must be approved by 60 percent of the voters.

“There are limited, narrow exclusions to the cap, including certain costs of significant judgments arising out of tort actions and unusually large year-to-year increases in pension contribution rates,” the New York guidelines for the tax cap implementation state. The property tax cap applies to municipalities as well as to school districts.

“School districts in New York have two chances to have their budgets passed every year. The initial statewide school budget vote day is the third Tuesday in May every year,” Al Marlin, communications manager for the New York State School Boards Association wrote in an email response to questions about New York’s system.

According to Marlin, districts where the budget isn’t approved in the May vote, can put a second budget before the public a month later. If the budget still fails to pass, the district must adopt a contingency budget with no tax increase.

Over the past five years nearly all of the New York budgets needing a simple majority have been passed by the public, with passage rates ranging from 93 to 99 percent. Only a small number of districts each year presents a budget needing a supermajority, with about 60 percent of them receiving approval each year except for 2013 when only 25 percent received approval. Less than two percent of the state’s 678 districts needing voter approval had sought increases that required the higher percentage for passage in 2013.

Schools in the state of New York are facing both financial and educational insolvency, according to a 2014 report by the New York State Association of School Business Officials.

“School districts are balancing their budgets at the cost of educational programs, as evidenced by cuts in professional staff. School districts have reduced staff 10 percent over the past five years, while pupil enrollment has declined only three percent,” the executive summary to the report states.

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