Sullivan West faces negative tax cap

LAURIE RAMIE
Posted 8/21/12

LAKE HUNTINGTON, NY — While the Sullivan West Central School District (SWCSD) anticipates having to figure the impact of a projected -2.8% tax cap into its proposed $36,403,209 budget for …

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Sullivan West faces negative tax cap

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LAKE HUNTINGTON, NY — While the Sullivan West Central School District (SWCSD) anticipates having to figure the impact of a projected -2.8% tax cap into its proposed $36,403,209 budget for 2016-2017, officials say they have a plan that will avoid cutting essential programs.

“When they put this tax cap into effect in 2011, they said it would never go in the negative,” Superintendent Dr. Nancy Hackett said.

But now it apparently has, for Sullivan West and approximately 80 other school districts in the state. Final figures won’t be released until August.

New York State imposed a tax cap on school districts and local governments to limit the amount of property taxes they can collect through the levy to either 2% or to the inflation rate, if that is lower.

When the cap is successfully met, taxpayers are eligible to receive a monetary refund per household as an incentive.

Assistant Superintendent for Administrative Services Lorraine Poston reported at the March 17 Board of Education meeting that the impact could require decreasing next year’s budget by $480,790 to get back under the tax cap.

“Now that we’re hit with it, we’re moving forward. We had expected it,” she said.

Dr. Hackett said, “We have looked closely at efficiencies to save money. When it gets to that point, we’re hoping that the state in their wisdom gives us back the GEA [Gap Elimination Adjustment] money.”

If that reimbursement occurs, Sullivan West would receive approximately $700,000 to offset the tax levy decrease. Otherwise, district officials will comb through the budget to reduce expenses rather than resort to eliminating any major programs or staffing.

Board member Lucas Arzilli asked whether Poston anticipates that the negative tax cap will be even larger next year.

“We don’t know,” she acknowledged. “We need to focus on 2016-17 and not tax for future years. There are a whole lot of factors that go into building the budget. We were prepared for this.”

Board member Ken Cohen asked, “Have we ended up in this situation because we’ve been too efficient?” to which board member Rachel Brey replied, “This is just an aberration.”

Dr. Hackett said this issue articulates the need for the state to re-examine the way that school districts are funded overall.

“I don’t know what next year will bring. The conversations we have between now and then are very important,” she said.

Water back-up

SWCSD Board Facility Committee Liaison Lucas Arzilli updated that the school district is continuing its committee work with the Village of Jeffersonville, Town of Callicoon, and Sullivan County Soil & Water Conservation District to explore options to avoid future incidents like the one that occurred on January 7, when a village water line break closed the elementary school and caused contamination concerns.

“We don’t have a back-up plan should the water go down in Jeffersonville again,” he had said at the February 18 meeting, while stating that new alarms and gauges were installed to detect more immediately when the water pressure at the school—which sits at the highest elevation in Jeffersonville—has been compromised to prompt a quicker reaction.

Until that is resolved, the elementary school cannot be used as an emergency shelter for the community, which is a role that the high school in Lake Huntington does fulfill thanks to having a back-up water supply and power generators.

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