Exploring Effect of Tax Cap on NHP-GCP District

The board of education has begun trying to deal with the impact of the on their upcoming budget.

“I am concentrating on the impact of the tax cap and how the law affects or would have affected us by the budget we’re living through right now,” explained Michael Frank, assistant superintendent for business. He added that the cap will have an even more detrimental impact on the district if there is no new money coming in.

Frank said it would be hard to illustrate projections for the current school year since the board has not yet begun the budget process. As a close alternative, he recalculated what the 2011-2012 budget would look like based on the cap.  

“They’ve capped us on our ability to go out to the taxpayers and they still have the ability to go to our school districts, reach through our pockets to the taxpayers’ pockets and take what they need for their programs first,” he said. “Whatever is leftover is for our education.”

Following the formula, Frank said at the end of the day there would have been an $870,000 cut.

“If the retirement system costs go up by two percent[age points], the district would have to [absorb it within the confines of the cap] deal; but [the district] would [be allowed to] increase the levy by anything beyond two percent," Frank said.

The only problem is subtle yet important difference in the “language.”

“It isn’t two percent; rather it is two percentage points of an increase,” Frank explained, adding that, the actual teacher retirement rate is 11.11% but two full percentage points to that will come out to 13.11%; that is an 18% increase in rates.

If an average teacher’s salary is $100,000 and you apply the 11.11%, you would get $11,110 contribution. That same contribution for this coming year would be $13,110, which is a $2000 increase.

In an effort to help the situation, the district is zeroing in on all angles of the cap to find ways to “get more creative.”

“We need something to bring in money,” said New Hyde Park-Garden City Park . “It’s a difficult time; no one is giving.”

also voiced her concern regarding the issue. She expressed her frustration over the government holding back money and not giving schools an option to get more revenue.  

“We’re willing to work with them but no one is willing to work with us,” Rudd said. “One thing is for sure, each year come September we will always have our doors open for those kids.”