Relates to reducing school taxes and prohibiting unfunded mandates

Summary of provisions

Section 1 titles this law the School Property Tax Reduction Act.

Section 2 amends Section 3602 by adding a new subdivision to increase foundation aid 10% above 2013-14 levels for school the 2014-15 budget and increase those levels by five percent a year until state aid represents 65 percent of the revenue in a school budget.

Section 3 amends section 3623 of the education law to require the state to pay 100% of school transportation costs.

Section 4 amends the education law to require school districts to decrease tax levy in the amount of increases in state foundation and transportation aid.

Section 5 amends the legislative law by adding a new section 49 to prohibit unfunded mandates on schools or school districts.

Section 6 amends the state finance law by adding a new section 28 to provide that each year the state budget must make appropriations to reimburse schools and school districts when the state mandates actions.

Section 7 sets forth this action shall take effect immediately.

Justification

Funding education on the backs of homeowners and other property owners results in New York having among the highest property taxes in the county Despite actions over the last few years intended to reduce property taxes, taxes are still increasing making it far too costly to live or run a business in New York At the same time costs associated with education continue to rise. We are at a crossroads and we must find a way to invest more wisely in our children's education so that they can compete and succeed in the economy of tomorrow.

Many of the increasing expenses experienced in schools budgets stem from actions required by state laws or regulations that are imposed without corresponding funding. These costs can represent as much as 80 percent of a school budget. Transportation costs represents one such area and in some instances transportation can represent 12 percent of a school budget.

State government has compounded the problem of these mandates by significantly decreasing the portion of education funding that it provides to local school districts over the last twenty years. Currently, New York only provides 46 percent of the total cost of educating a student in New York while local governments contribute 47 percent. Many other states contribute 65 percent or more which reduces the burden of local property taxes to fund public education. The state of Hawaii provides nearly 100% of the funding for state education. The state contribution to education was not always as low as 46 percent. As recently as 2010, New York State funded 50 percent of the total cost of public education in New York State. In FY 2010, 32 states had larger state shares of public education funding than New York State. Furthermore, since FY 2008, fourteen states have increased their per-student spending by an average of 5.6 percent. In that same period, New York State has reduced its per-student spending by 5.1%.

As a result of these changes, schools cannot keep up and we are depriving our children of a quality education. New York State must return toward paying its fair share of the total cost of public education which would greatly alleviate the substantial burden on homeowners and businesses.

Legislative history

This is a new bill.

Fiscal implications

This bill will lead to lower property taxes for property owners.

Local fiscal implications

Reduce property taxes for homeowners and business owners without impacting the revenue levels for schools and school districts.

Effective date

This act shall take effect immediately.