1

Nassau-Suffolk School Boards Association Resolutions Dinner & Meeting

September 23, 2008

The Property Tax Cap by the Numbers: The Impact on Our Schools

Presented by:Gary D. Bixhorn

Eastern Suffolk BOCES Chief Operating OfficerSCSSA Legislative Chairperson

Tax Levy Basics Tax Levy Basics

The School Property Tax Levy represents the amount of funding a school district needs to raise through property taxes to balance its budget.

The property tax levy is calculated as follows:

Projected School Spending (- ) minus state aid (- ) minus other revenues (- ) minus prior year’s fund balance

= Property Tax Levy

On Long Island property taxes comprise nearly 70% of school funding.

The School Property Tax Levy represents the amount of funding a school district needs to raise through property taxes to balance its budget.

The property tax levy is calculated as follows:

Projected School Spending (- ) minus state aid (- ) minus other revenues (- ) minus prior year’s fund balance

= Property Tax Levy

On Long Island property taxes comprise nearly 70% of school funding.

2

Tax Cap Basics Tax Cap Basics

The proposed Property Tax Cap will cap tax levy growth at the lesser of 4%, or 120% of increase in Consumer Price Index (CPI).

Does not cap the tax rate

The proposed Property Tax Cap will cap tax levy growth at the lesser of 4%, or 120% of increase in Consumer Price Index (CPI).

Does not cap the tax rate

3

Foundation Aid Formula High Tax Aid Contingency Budget Caps Wealth Gap / Equity

Foundation Aid Formula High Tax Aid Contingency Budget Caps Wealth Gap / Equity

4

Tax Cap ~ Related Issues Tax Cap ~ Related Issues

Related Issues ~ Foundation Aid FormulaRelated Issues ~ Foundation Aid Formula

Drives 70% of all state aid.

72 of 121 (60%) Long Island districts at 3% minimum, including 15 with Combined Wealth Ratio (CWR) < 1.0.

Drives 70% of all state aid.

72 of 121 (60%) Long Island districts at 3% minimum, including 15 with Combined Wealth Ratio (CWR) < 1.0.

2008-09

Foundation Aid Per Pupil

Long Island

$3,306

Statewide (NYS)

$4,593

5

The statewide Foundation Aid per pupil is 39% greater than Long Island.

Related Issues ~ High Tax Aid

Related Issues ~ High Tax Aid

Nearly 70% of all High Tax Aid is directed to Long Island districts.

98 Long Island districts received more in High Tax Aid than in Foundation Aid increase.

Nearly 70% of all High Tax Aid is directed to Long Island districts.

98 Long Island districts received more in High Tax Aid than in Foundation Aid increase.

6

After voter rejection, budget increase capped at lesser of:

4% increase; or 120% of increase in CPI

Specific expenditures may be excluded from cap calculation

After voter rejection, budget increase capped at lesser of:

4% increase; or 120% of increase in CPI

Specific expenditures may be excluded from cap calculation

7

Related Issues ~ Contingency Budget Cap Related Issues ~ Contingency Budget Cap

Related Issues - Wealth Gap / EquityRelated Issues - Wealth Gap / EquityPercentage of Students in Long Island’s Least Wealthy and Wealthiest School

Districts Passing the Elementary/Middle Level Assessments and Regents Exams

Assessment / Regents2004-05

Least Wealthy LI Districts(9 districts)

% of all students tested

Wealthiest LI Districts(9 districts)

% of all students tested

EnrollmentPer Pupil Spending% State Aid% Free/Reduced Lunch

69,546$14,969

48.057.3

23,669$21,386

5.48.2

ASSESSMENT RESULTS - Elementary and Middle Level Students Scoring at Levels 3 and 4

Grade 4 ELAGrade 4 MathematicsGrade 4 ScienceGrade 5 Social StudiesGrade 8 ELAGrade 8 MathematicsGrade 8 Science Grade 8 Social Studies

70.484.885.181.747.148.068.959.1

90.897.397.497.680.087.592.189.5

REGENTS EXAM RESULTS - Students Scoring 65+

English Mathematics Course A Global History & GeographyUS History & GovernmentLiving Environment

73.977.767.674.466.5

93.895.291.393.996.1

8

Spending State Aid (Foundation, High Tax, Other) Fund Balance / Other Revenues Tax Levy Tax Cap $ Reduction to Reach Cap % Spending Increase After Reduction

Spending State Aid (Foundation, High Tax, Other) Fund Balance / Other Revenues Tax Levy Tax Cap $ Reduction to Reach Cap % Spending Increase After Reduction

9

Tax Cap ~ 2009-10 “What If” ScenariosTax Cap ~ 2009-10 “What If” Scenarios

10

Tax Cap ~ 2009-10 “What If” ScenariosTax Cap ~ 2009-10 “What If” Scenarios

Scenario B Scenario E Scenario H

Spending + 5% +5% +5%

State Aid Foundation High Tax Other

+5%

+5%

+5%

+3%

-50%

+4%

+2%

-100%

0%

Fund Balance /Other

0% 0% 0%

Tax Cap 4% 4% 4%

Note: % = Change from Prior Year (2008-09)

SchoolDistrict

2009-10Projected

SchoolBudget

(5% above 2008-09)

2009-10Calculated

Tax Levy

2009-10Capped

Tax Levy(4%)

2009-10Required

BudgetCut

2009-10Percent

Spending Increase

(over 2008-09 Budget)

Roosevelt CWR = 0.559 $82,768,193 $23,956,603 $20,828,320 -$3,128,283 1.0%

Freeport CWR = 0.757 $148,372,332 $82,049,341 $77,880,090 -$4,169,251 2.0%

Westbury CWR =0.981 $103,660,747 $70,038,670 $67,165,181 -$2,873,489 2.1%

Levittown CWR = 0.936 $187,203,200 $123,519,959 $118,465,773 -$5,054,186 2.2%

Bethpage CWR = 1.335 $73,293,431 $57,237,049 $55,295,199 -$1,941,849 2.2%

Island Trees CWR 0.897 $57,440,864 $38,689,377 $37,162,096 -$1,527,281 2.2%

Allowable Spending Increase within CapAllowable Spending Increase within Cap

Nassau County School Districts (6) - with Lowest % Spending Increase within Scenario E

11

SchoolDistrict

2009-10Projected

SchoolBudget

(5% above 2008-09)

2009-10Calculated

Tax Levy

2009-10Capped

Tax Levy(4%)

2009-10Required

BudgetCut

2009-10Percent

Spending Increase

(over 2008-09 Budget)

Syosset * CWR = 2.143 $185,220,882 $171,213,374 $168,908,928 -$2,304,446 3.7%East Williston CWR = 2.629 $50,564,867 $46,349,903 $45,720,551 -$629,352 3.7%Pt. Washington CWR = 2.917 $127,942,708 $117,956,538 $116,417,430 -$1,539,107 3.7%Locust Valley CWR = 4.131 $70,668,067 $65,116,226 $64,254,758 -$861,469 3.7%Oyster Bay- E. Norwich CWR = 4.655 $47,985,038 $44,636,663 $44,059,606 -$577,057 3.7%Great Neck CWR = 3.544 $190,186,599 $177,756,231 $175,473,903 -$2,282,328 3.7%

Allowable Spending Increase within CapAllowable Spending Increase within Cap

Nassau County School Districts (6) - with Highest % Spending Increase within Scenario E

12*Jericho is another district with a 3.7% increase

SchoolDistrict

2009-10Projected

SchoolBudget

(5% above 2008-09)

2009-10Calculated

Tax Levy

2009-10Capped

Tax Levy(4%)

2009-10Required

BudgetCut

2009-10Percent

Spending Increase

(over 2008-09 Budget)

Central Islip CWR = 0.625 $165,725,126 $84,061,744 $78,101,575 -$5,960,169 1.2%Wyandanch CWR = 0.447 $57,587,261 $20,041,278 $18,053,395 -$1,987,883 1.4%Center Moriches CWR = 0.969 $36,078,063 $19,366,725 $18,276,300 -$1,090,425 1.8%Brentwood CWR = 0.502 $309,248,276 $78,577,073 $69,547,573 -$9,029,500 1.9%Deer Park CWR= 0.956 $99,194,708 $65,622,277 $62,750,348 -$2,871,929 2.0%Shoreham W. R. CWR = 1.322 $56,441,428 $38,044,050 $36,448,251 -$1,595,799 2.0%South Country CWR = 0.999 $107,240,967 $54,064,552 $51,294,213 -$2,770,339 2.3%

Allowable Spending Increase within CapAllowable Spending Increase within Cap

Suffolk County School Districts (7) - with Lowest % Spending Increase within Scenario E

13Note: Excludes school districts with significant tuition income

SchoolDistrict

2009-10Projected

SchoolBudget

(5% above 2008-09)

2009-10Calculated

Tax Levy

2009-10Capped

Tax Levy(4%)

2009-10Required

BudgetCut

2009-10Percent

Spending Increase

(over 2008-09 Budget)

Smithtown * CWR = 1.340 $219,806,494 $167,840,970 $164,206,276 -$3,634,694 3.3%Three Village CWR = 1.542 $167,375,212 $124,596,989 $122,056,474 -$2,540,516 3.4%Half Hollow H. CWR = 1.723 $205,997,715 $172,234,093 $169,142,301 -$3,091,792 3.4%

Sag Harbor CWR = 5.207 $29,966,219 $26,528,391 $26,075,483 -$452,908 3.4%Northport CWR = 1.939 $150,440,570 $132,370,464 $130,254,938 -$2,115,526 3.5%Huntington CWR = 2.001 $108,798,285 $93,708,988 $92,254,744 -$1,454,244 3.6%Cold Spring H. CWR = 3.439 $55,914,292 $51,124,493 $50,435,529 -$688,964 3.7%

Allowable Spending Increase within CapAllowable Spending Increase within Cap

14

Suffolk County School Districts (7) - with Highest % Spending Increase within Scenario E

*Other districts with a 3.3% increase include Pt. Jefferson, Shelter Island, Fire Island, Southampton, Rocky Pt , E. Moriches, Patchogue-Medford

Cap impact will differ dramatically among districts.

Cuts assume budget increase of 5% - this will vary.

Cap projected at 4% - this may be high.

Aid projected prior to Wall Street “crisis”.

Higher budget increases, less state aid, or a lower cap will increase the required budget cut.

Employee benefits and energy related cost increases alone, will consume most, if not all, of the capped increase.

A cap already exists – however, it is implemented after voters reject the budget, rather than prior to a community vote.

Cap impact will differ dramatically among districts.

Cuts assume budget increase of 5% - this will vary.

Cap projected at 4% - this may be high.

Aid projected prior to Wall Street “crisis”.

Higher budget increases, less state aid, or a lower cap will increase the required budget cut.

Employee benefits and energy related cost increases alone, will consume most, if not all, of the capped increase.

A cap already exists – however, it is implemented after voters reject the budget, rather than prior to a community vote.

Tax Cap IssuesTax Cap Issues

15

President – Pamela BetheilVice President – Lisa Israel

Member and Clerk – Fred Langstaff

Members Walter Wm. Denzler, Jr. Susan Lipman Jeffrey Smith

Stephen Dewey, Ph.D. Joseph LoSchiavo Sandra Townsend Chris Garvey Anne Mackesey Andrew T. Wittman, Jr.

William Hsiang William K. Miller John Wyche

District Superintendent Chief Operating Officer Edward J. Zero Gary D. Bixhorn

Associate SuperintendentsBarbara M. Salatto – Management Services

Julie Davis Lutz, Ph.D. – Educational Services

Assistant SuperintendentMichael J. Locantore – Human Resources

DirectorsMarilyn H. Adsitt – Educational Support Services

Keith G. Anderson – Building ServicesRobert Becker – Special Education

Andrea Grooms – Communications, Research and Recruitment Gregory Hamilton – Administrative Services

Maureen Kaelin – Business ServicesSylvia Savarese – Technology Integration

Joan Skelly – Career, Technical and Adult EducationJeanne K. Weber – Regional Information Center

Candace White-Ciraco, Ed.D. – Planning and Program Improvement

President – Pamela BetheilVice President – Lisa Israel

Member and Clerk – Fred Langstaff

Members Walter Wm. Denzler, Jr. Susan Lipman Jeffrey Smith

Stephen Dewey, Ph.D. Joseph LoSchiavo Sandra Townsend Chris Garvey Anne Mackesey Andrew T. Wittman, Jr.

William Hsiang William K. Miller John Wyche

District Superintendent Chief Operating Officer Edward J. Zero Gary D. Bixhorn

Associate SuperintendentsBarbara M. Salatto – Management Services

Julie Davis Lutz, Ph.D. – Educational Services

Assistant SuperintendentMichael J. Locantore – Human Resources

DirectorsMarilyn H. Adsitt – Educational Support Services

Keith G. Anderson – Building ServicesRobert Becker – Special Education

Andrea Grooms – Communications, Research and Recruitment Gregory Hamilton – Administrative Services

Maureen Kaelin – Business ServicesSylvia Savarese – Technology Integration

Joan Skelly – Career, Technical and Adult EducationJeanne K. Weber – Regional Information Center

Candace White-Ciraco, Ed.D. – Planning and Program Improvement

Eastern Suffolk BOCES Board and Administration

Eastern Suffolk BOCES does not discriminate against any employee, student, applicant for employment, or candidate for enrollment on the basis of gender, race, color, religion or creed, age, national origin, marital status, disability, or any other classification protected by law. For further information or concerns regarding this statement, please contact the Eastern Suffolk BOCES Department of Human Resources at (631) 687‑3029.

SCSSA LeadershipSCSSA Leadership

SCSSA Officers

Babylon Dr. Ellen Best-LaimitBrookhaven Dr. Roberta GeroldEast End Dr. Charles Kozora

Mrs. Linda J. RozziIslip Ms. Patricia Sullivan-KrissSmithtown/ Dr. James FeltmanHuntingtonExecutive Director Dr. Candee Swenson

Legislative Committee

Legislative ChairpersonMr. Gary D. Bixhorn

Mr. Wendell ChuDr. Allan Gerstenlauer

Mr. Thomas QuinnMr. Anthony Cacciola

President Dr. Thomas SheaPresident-Elect Mr. Wendell ChuVice President Mr. Anthony AnnunziatoTreasurer Dr. Alan GrovemanSecretary Mr. James McKennaPast PresidentDr. Rosemary Jones

President Dr. Thomas SheaPresident-Elect Mr. Wendell ChuVice President Mr. Anthony AnnunziatoTreasurer Dr. Alan GrovemanSecretary Mr. James McKennaPast PresidentDr. Rosemary Jones

Board of Directors/Cluster Leaders

Any Questions?Any Questions?