More Holes Than A Broken Pinata

The Senate is due to return to Albany tomorrow in order to debate and pass school property tax cap legislation. Provided the Democrats participate in the governing process like they are suppose to, they plan to introduce a bill sponsored by Senator Darrel Aubertine and others.

The legislation S8733 dubbed, "Tax Relief Triple Play," appears to have more holes in it than a broken pinata. The legislation is suppose to; cap property taxes, slash unfunded mandates and add a circuit breaker, which limits tax liability to between 6-8% of income.

Property Tax Cap:
It is severely watered down as it eliminates for consideration in the formula three of the fastest growing segments of school budgets; special education, transportation and capital projects. For an example take a close look at Carthage Central School budget debacle. They reasoned part of their increase was due to their capital projects match. Therefore, removing these components is nothing but making a tax cap just smoke and mirrors, it will continue to allow budgets to grow at a rate greater than the rate of inflation.

* a school district's tax levy limit, excluding the taxes necessary to support

the local share of capital, transportation and special education expenditures,

could increase by up to the lesser of 4% of 120% of the annual increase in the

consumer price index (CPI)
  

Mandate Relief:
This portion of the legislation lacks sufficient teeth to stop unfunded mandates. For example;

19    2. In the event that a mandate which imposes  a  cost  upon  a  school
    20  district  is created after the adoption of a school budget, such mandate
    21  shall not be implemented until the following year for which such  school
    22  budget was adopted. 

Or perhaps

23    3. Notwithstanding subdivision two of this section, such a mandate can
    24  be imposed if:

Then it goes on to list several exceptions including school board choice or an executive order of the governor, etc.

Circuit Breaker:
The centerpiece of the legislation is designed to limit property tax liability on a graduating scale to between 6 and 8% of income, but this again falls short on any benefit for the North Country residents. Take into account that most North Country residents pay around 4% of their income out to property taxes the benefit for them is the big ZERO!

Here is the kicker folks...hold onto your wallets here...this is where it COST the North Country property taxpayers. Aubertine is proposing to repeal middle class STAR rebate benefits. 

Section 47: repeals section 178 of the tax law establishing th

"Middle Class STAR" rebate program.

And the real deal, even if you do pay in excess of 6% to 8% of your income in property taxes, you actually have to pay out the money, then you receive a tax credit equal only to 70% of the overage paid.

Aubertine and the other sponsors of this legislation list the fiscal implications as "to be determined," irresponsible at best, considering the fiscal condition of the state coupled with the fact this provides no benefits for North Country residents it is bad legislation. The legislation is proposed to take effect immediately, thus eliminating the fall STAR rebate checks, while the circuit breaker and cap do not kick in until next year.

You can say - TAX INCREASE!

Darrel was hood winked again, this is legislation designed to provide relief to his moral caucus companion Craig Johnson on Long Island and satisfy New York State United Teacher's union NYSUT, it does nothing for the hard working North Country residents.