The number of school districts overriding New York state’s property tax cap fell by more than half over the past three fiscal years, according to a recent report issued by State Comptroller Thomas P. DiNapoli. The report found 19 school districts overrode the cap in 2014-15, down from 44 districts in 2012-13. “Low-need” and […]
The number of school districts overriding New York state’s property tax cap fell by more than half over the past three fiscal years, according to a recent report issued by State Comptroller Thomas P. DiNapoli.
The report found 19 school districts overrode the cap in 2014-15, down from 44 districts in 2012-13. “Low-need” and “average-need” districts were twice as likely to go over the tax cap as high-need districts, according to the comptroller.
“As the cap fluctuates below 2 percent, it becomes increasingly difficult to stay under the levy limit while also dealing with increased costs and uncertain state aid. If the past three years are any indication, however, school districts will continue to hold the line on taxes despite these challenges,” DiNapoli said in a news release.
Overall, 6.5 percent of school districts exceeded the tax cap in 2012-13 (44 districts), 4.7 percent (32) in 2013-14, and 2.8 percent (19) in 2014-15, according to the report. In this three-year period, 79 school districts exceeded the cap at least once. Fourteen districts went over the cap in two of the three years and one district exceeded the cap all three years.
Of the districts overriding the cap, the report noted that low-need and average-need districts generally receive less state aid than high-need districts, and therefore were more dependent on property taxes to fund their programs. From 2013-2014 to 2014-2015, 3.3 percent of low- and average-need districts exceeded the cap, while 1.5 percent of high-need districts did so.
DiNapoli’s office also found, based on individual calculations, that 363 school districts could have increased the tax levy by more than 2 percent last year and, of these, 62 could have increased the tax levy by 4 percent or more while technically remaining under the cap. In contrast, 69 districts were held to less than a 1 percent increase — with 17 actually being subject to a levy decrease from the prior year.
Nuances in the complex cap calculations have also resulted in some large year-to-year fluctuations for some districts. For example, one district’s allowable levy limit was 21.7 percent less than in the previous year, while another district’s allowable levy limit was 45.5 percent higher than in the prior year, the comptroller’s report found.
Overall, school-district tax levies increased by nearly the exact amount allowed by the state tax cap. In 2012-13, school districts consumed 99.6 percent of their available limit; in 2013-14, it was 99.2 percent; and in 2014-15, it totaled 99.7 percent.
To read the full report, visit: http://www.osc.state.ny.us/localgov/pubs/research/snapshot/schooldistricttaxcap0215.pdf breakdown of tax levy data, download the Excel file here: http://www.osc.state.ny.us/localgov/pubs/research/snapshot/schooldistricttaxcap0215.xls.