Governor Andrew Cuomo Speaks
Proposals in the State of the State Address could have significant impact on schools

January 4, 2011

When Governor Andrew Cuomo delivered his State of the State Address the message included some general overviews of proposals that could have significant impact on school districts throughout the state. The proposals included a cap on property tax levies, mandate relief and the redistribution of education funds into incentive programs that reward school districts for improved student performance or management efficiencies.

It’s important to note that the proposed cap would be on tax levies, which is the total amount that schools collect from towns. Tax levies are affected by equalization rates; equalization rates are set by the New York State Board of Equalization and Assessment and are out of the control of school districts. Thus, instituting a tax cap of 2 percent doesn’t necessarily mean that tax rates for individual property owners would be limited to 2 percent. In reality depending on the equalization rate, property owners in some towns could see a tax rate increase of 10, 15 or 20 percent.

Property tax levy increases above the cap would not be allowed under the Governor’s proposal unless “endorsed by both the local governing board and a 60 percent majority of the people during an election; and provide only limited exceptions, such as extraordinary legal or capital expenditures.”

Governor Cuomo also created a Mandate Relief Redesign Team consisting of “stakeholders to propose eliminating unnecessary mandates in time for the April 1 budget deadline.” If relief is enacted, it would allow school districts more leeway as to how they spend their money. The team is looking for ways to reduce to costs of mandated programs, identify mandates that are ineffective and outdated and determine how school districts can have greater ability to control expenses.

Recent research by seven New York State school districts showed that 15 to 28 percent of 2008-09 school budget expenditures could be directly related to state mandates. The mandates ranged from such smaller budget items as buying defibrillators, cancer screenings for staff and stocking eco-friendly cleaning products that cost more than standard products, to larger expenses such as testing and auditing costs, and special education transportation.

After its first meeting, the Mandate Relief Redesign Team signaled that everything is up for debate, including public employee pension plans and portions of the Triborough Amendment to the Taylor Law. Triborough allows union contracts to continue (including longevity salary increases and existing health and other benefits) after employee contracts expire. This limits the capacity school districts have during the bargaining process.

Governor Cuomo also suggested creating two new competitive funding sources for schools—one fund that would reward historically underperforming schools for increasing student achievement and another that would reward districts that “find demonstrative savings through efficiencies.” The Governor proposes having $250 million available in each of these funds.

For more information, visit www.governor.ny.gov