Schools

Part 2: Nanuet Schools Talk Budget; Tax Levy at .64%

Tonight's workshop at will look at staffing and instruction. it starts at 7 p.m. at the Nanuet High School

 

At last night’s meeting, the Nanuet Board of Education met for the first of two budget workshops. They looked at general support, buildings and grounds, transportation, benefits and revenue, which was covered in the . In the second half of the workshop, Phil Sions, assistant superintendent for business, went through the school's tax cap form from the New York State Comptroller. 

Tuesday’s workshop at will look at staffing and instruction. Tonight’s meeting will be at the high school at 7 p.m. 

Find out what's happening in Nanuetwith free, real-time updates from Patch.

The Nanuet Schools' budget has a tax levy of 0.64 percent. However, the 2 percent tax levy increase does not equal a 2 percent tax rate increase limit. The schools have a say on the tax levy, which is capped at 2 percent. Then other variables—out of the school's control—usually causes the final tax rate to end up more than 2 percent. Those variables include the equalization rate, the Pfizer settlement, homestead, non-homestead, etc ...  

In an  the Nanuet schools addressed a common public misunderstanding about the 2 percent cap. Before the tax levy was based on the budget and the budget was built around programs. However, with the tax levy limit, the tables have turned and the levy has to stay under a tax cap. This restricts the budget and with increasing fixed costs and decreasing outside funding, schools are finding that they’re forced to make cuts to keep their budgets and levy stay under this tax cap.  Ultimately, this threatens the future quality of education within schools.

Find out what's happening in Nanuetwith free, real-time updates from Patch.

The budget increased by 1.60 percent from 2011-12 to 2012-13 and tax levy is .64 percent.

Sions went through the tax cap form at last night’s meeting, which is attached to this article as well. The tax levy rate is the percent change in the 2012-13 tax levy and the 2011-12 tax levy.

(Tax Levy Cap) elements are just the elements in the formula,” said Sions.

  • The tax base growth factor is very low at 1.0006, which “is the second lowest in the county.”
  • “Then we have an exclusion for ERS, (State and Local Employees’ Retirement System), which is done by formula on the website, so you don’t have any leeway there either.”
  • "Capital Tax levy is our debt service (only for capital projects), plus the $500,000 that we put in the budget for the capital fund transfer, less any building aid we receive. They take that back. Based on our budget, we know what our debt service is. They don’t know what the building aid is yet so we have to estimate that."

The Tax Levy Cap Calculation

  • “Take your tax levy and multiply by your tax base growth factor. That comes up to $53,442,924.”
  • “Then you add in your PILOTS receivable. You subtract your capitol tax levy and you come up with $49,082,130.”
  • “And then you multiply it by 1.02 (the Allowable Levy Growth Factor). That ends up being $50,063,773.”
  • “Then you take out your PILOT receivables for 2013 and you end up with what’s called the Total Levy Limit Before Exclusions, which is $49,701,354.”

Exclusions

  • "Next you determine what your exclusions are. The Capitol Tax Levy for 6/30/2013 is one exclusion and this is where you get hit because it’s less than the one tht got subtracted. The one you’re adding back is less so that’s where the problem comes in. Then, the ERS is done by formula.”
  • “You come up with exclusions of $4,051,240.”

After adding in the exclusions, you end up with the 2012-13 tax levy limit plus exclusions, which is $53,752,594, which is a .64 percent increase from 2011-12 tax levy. The Nanuet Schools do not plan to override the cap.


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