Ninety-Eight Percent of School Districts Propose Budgets Complying with the Tax Cap

ALBANY, NY (03/05/2019) (readMedia)-- According to analysis conducted by the Association of School Business Officials (ASBO), 98% of school districts propose staying within their tax caps for the 2019-20 school year. The analysis is based on March 1st tax cap filings to the Office of the State Comptroller. Six hundred and forty-two districts, 96% of those required to do so, submitted data by the deadline.

Although the statewide tax cap allows levy growth of two percent for 2019-20, the maximum allowable tax increase for 2019-20 is 2.9% (with permissable exclusions such as capital projects), while the actual proposed tax increase statewide is 2.6%, meaning school districts are levying less than what is permitted.

In addition, 13 districts indicate they plan to override their tax caps, which is on par with last two years, although the number may change when budgets are submitted to voters in May. A majority (10 out of 13) of the school districts proposing overrides are very small in size with student enrollments of less than 700.

"These are tentative numbers and if the state fails to come through with sufficient state aid, you will see a change for the worst in school district budgets, with more districts proposing painful cuts that impact students" stated Michael J. Borges, ASBO Executive Director.