ASBO New York Report “Inflation Challenges New York School Districts” Highlights Tax Cap’s Impact
Friday, March 25, 2022
FOR IMMEDIATE RELEASE:
March 28, 2022
Contact: Brian Cechnicki
(518) 434-2281 x108
brian@asbonewyork.org
Albany, NY – ASBO New York’s new report, “Inflation Challenges New York School Districts,” analyzes the sharp difference between school districts’ 2022-23 tax caps and inflation. The now permanent tax cap constrains school districts’ ability to increase their local tax levies. Overriding the cap requires 60% supermajority approval from local voters. The tax cap calculation starts with the lesser of 2% or the rate of inflation. The overall rate in 2021 was 4.69% and so far in 2022 it is 7.68%. The overall statewide tax cap is 2.83% and 92% of school districts have tax caps that are under the inflation rate.
“Local property taxes make up a growing majority of school districts revenue, so the prospect of multiple years of high inflation is a concerning trend for education. The property tax cap limits the ability of school district spending to at least match inflation without requiring supermajority voter approval. Continued high inflation is especially concerning given the potential educational program cuts that may be necessary in the future,” stated ASBO New York Executive Director Brian Cechnicki.
To view the full report, please visit: https://www.asbonewyork.org/resource/resmgr/reports/Inflation_and_Revenue_Paper.pdf
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