Administration Estimates Tax Cap Could Result in Nearly $5 Million in Cuts from 2012-13 Budget

No numbers were official, but early estimates by administrators in the Miller Place School District indicated that the new two percent tax levy cap implemented by New York State could result in a required budget decrease of nearly $5 million.

Passed in June, a two percent property tax cap will have to be factored in when schools look at their 2012-13 budgets. Schools can still implement a higher tax levy increase if needed, but if the increase exceeds two percent, the budget must pass by 60 percent (supermajority).

Deputy Superintendent Marianne Higuera presented estimates on the effect this will have on Miller Place's upcoming budget at Wednesday's Board of Education meeting. With the projected numbers, if the budget remains the same at $64,252,252, a required decrease of 2.62 percent, or $1,680,515, would have to be implemented. That, however, is a best-case scenario.

"I don't think that's a true representation because we know we have contractual increases, utilities that will increase, a transportation contract that is going to increase," Higuera said. "Some of those costs are going to go up."

With those factors considered, Higuera used what she called a "very conservative" five percent budget increase, which would then result in a necessary budget decrease of $4,893,128 (7.62 percent).

"This is an estimate," she said. "This is not a budget process that has started yet, but it’s to give the community an idea on what the administration and board is looking at when we are talking about the ’12-13 budget."

The came with a 3.89 percent tax levy increase.

Other issues districts have to deal with are increases in state aid that likely won't reach four percent numbers once discussed by Gov. Andrew Cuomo, as well as the lifting or reductions of unfunded mandates promised by the legislature that have yet to come to fruition.

If a budget is voted down, a revote would take place, followed by a vote on a revised budget. Under the new law, if it is voted down twice, the district must adopt a contingent budget with a zero percent increase on the tax levy.

The full presentation can be downloaded from the Miller Place district website.