Property Tax Cap: Solution or Disaster?

It is nice to see that the NY State Senate Is meeting to tackle the property tax cap issue in response to the Commission on Tax Relief’ recommendations. The Commission, instituted by former Governor Spitzer and headed by Nassau County Executive Tom Suozzi, recommended a school property tax cap of 4% annually; a proposal supported by Governor Paterson. This means that school budget increases must result in a property tax increase of no more than 4% each year. We have long known that New York spends significantly more per pupil than any other state in the nation and some regions in New York, like Westchester and Long Island have the highest property taxes in the nation so something has to be done.

A property tax cap seems like it would be welcome news but it has ignited a furor. School districts, the teacher’s union and other pro-union, pro-education forces have dug in their heels claiming that many school districts will suffer and they will. In order to meet budget requirements, districts will be forced to cut more and more programs to make ends meet. This budget cap will lead quickly to the demise of music, art, athletic and after-school programs. There are few, if any, districts that have been able to maintain the same level of programs without an increase greater than 4%. This is troubling.

Nevertheless, what can we do, the property taxes on Long Island are crushing middle class families and senior citizens. The high taxes coupled with the high cost of home ownership is forcing families to leave and preventing young families from settling here. There are other solutions, like revamping the school districts all-together or sharing administrative services. These are reforms that I personally favor but so far they have no champion. I also think that some elected official has to find a way reduce the stranglehold of the teacher’s and school administrator's unions even if it means political suicide. After all, school teachers and administrators cannot be entitled to tax-payer funded benefits that the tax-payer themselves do not receive in their private sector jobs. It is only fair. Nevertheless, we will see what the legislature comes up with; it won’t be pretty either way.