Relates to the Tuckahoe common school district merger with the Southampton school district in Suffolk county

Summary of provisions

Section 1. Upon voter approval of the dissolution and annexation of the Tuckahoe Common School District into the Southampton School District in Suffolk County, the successor school district (Southampton School District) is authorized to establish a reserve fund to be utilized for the purpose of lowering property taxes for district residents.

Section 2. Directs the Southampton School District to annually provide a detailed report of the condition of the school district reserve fund for tax reductions.

Section 3. Provides that the funds in the school district reserve for tax reduction shall be used to maintain Southampton School District's estimated tax rate that was in place prior to the merger.

Section 4. Immediate effective date

Justification

Tuckahoe Common School District is comprised of one school building that educates students from pre-K to eighth grade. Most students from Tuckahoe who advance to the high school level are sent to the Southampton Union Free School District by way of a tuition agreement. Tuckahoe's tuition bill is becoming over burdensome for Tuckahoe. If Tuckahoe sent their students to a district other than Southampton, Southampton would then experience a significant reduction in revenue and would consequently have to cut staff, AP courses and some electives. Further, the State's tax cap makes it difficult for each district to raise taxes enough to solve its problems.

As a means of addressing the fiscal concerns of the districts while at the same time, continuing to provide a quality educational program for all of the students, the districts commissioned a study to determine if reorganization could provide enhanced opportunities for both the districts and the students.

In many ways, Southampton and Tuckahoe are ideal for a merger as their demographics are similar. No new buildings or major renovations would be necessary. Many students already know each other though the community, sports, scouts and the local youth center. Further, the findings of the "Reorganization Feasibility Study on Behalf of

Southampton UFSD and Tuckahoe Common SD" (prepared by the SES Study Team, LLC) that were released in July 2013, estimated a budget for the combined district of $71.5 million, $9 million less than the combined budgets of the two districts last year. With wide community support, the prospects looked promising for a merger. However, the proposal was actually voted down when put before the voters due to the disproportionate impact on property taxes. In a merged district, tax rates would be equalized thereby resulting in a significant increase in property taxes for Southampton residents.

This legislation offers a viable solution to address this legitimate concern. Upon the approval of the voters for the dissolution and annexation of the Tuckahoe Common School District into the Southampton Union Free School District, the Southampton Union Free School District would be authorized to establish a reserve for tax reduction purposes using $9 million capital monies that Southampton currently has in reserve to construct a new administration building which would no longer be needed if the merger where to occur. This reserve would be used exclusively for tax reduction purposes to ensure that the Southampton School District's estimated tax rate that was in place in the school year prior to the merger is maintained.

Legislative history

2014: New Legislation

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.