NYSUT: Senate tax cap bill doesn’t provide real relief

ALBANY, N.Y. August 8, 2008 – New York State United Teachers said the tax cap bill passed by the Senate today would be devastating for public education while not providing a penny’s worth of real property tax savings.

“The Senate today chose political expediency and the illusion of property tax relief over a real, meaningful solution – a restructuring of our property tax system based on equity, income and ability to pay,” said NYSUT President Richard C. Iannuzzi. “A circuit breaker would reduce property taxes for senior citizens and working New Yorkers – those who need relief the most. Basing property taxes on income and ability to pay – not an arbitrary number dreamed up by an Albany commission – is the right direction for New York state.”

• Related article: State senators blast tax cap proposal

Iannuzzi said the Senate’s tax cap legislation could ultimately lead to cuts in education programs, while thwarting New York’s efforts to close the achievement gap. “Without a doubt, a tax cap will further divide the ‘haves’ from the ‘have-nots,’ hurting poor children more because tax caps lock in existing funding inequities. In addition, poor communities simply do not have the ability to raise local funds to support their schools,” Iannuzzi added.

NYSUT Executive Vice President Alan B. Lubin noted the Senate approved a separate bill that included several cost-saving measures that would help school districts, including reducing districts’ expenses for employee pensions, transportation and paperwork. “It’s a good concept, but it comes without adequate funding. While we support the goals of this bill, passing it as a separate bill is an empty gesture,” he said.

“We will continue to work with the Assembly and the Governor to see that this bad policy bill will not become a bad law,” Lubin said, noting the union would work with all parties to find cost-savings, efficiencies and other initiatives to provide legitimate property tax relief.

Tax caps have failed in California, Massachusetts and other states, leading to layoffs and devastating cuts to education and other essential public services, Lubin said. “New York should not make the same mistake. We will continue our discussions with the governor and legislative leaders to find efficiencies and savings and lower property taxes, without hurting children and public schools.”

New York Senate Caps School Tax Increases at 4%

By Danny Hakim

The Republican-led State Senate returned on Friday and approved one of the most controversial issues in the capital — a measure drafted by the Democratic governor that would place a mandatory limit on school property tax increases.

It also passed a bill intended to force the state to start collecting taxes on cigarettes sold to non-Indians on Indian reservations, a move that could reap hundreds of millions of dollars but could also inflame relations with several tribes.

LI schools say property tax cap would cause strain

BY John Hildebrand

Long Island school representatives say a statewide cap on property taxes would ultimately place heavy strain on middle-income communities — mostly places with high taxes where the cap concept holds great appeal.

In Albany, the GOP-dominated State Senate is expected to approve a 4 percent cap today in special session, along with other legislation aimed at curbing costs to local districts. Chances of passage in the Democratic-controlled State Assembly are more doubtful.

Assembly Democrats push home-heating relief instead of tax cap

By Joseph Spector

ALBANY – With a home-heating crisis looming this winter, Assembly Democrats argued yesterday that the state needs to give people relief from their energy bills before giving them a break on their property taxes.

Meanwhile, the state is already expected to expand its home-heating relief program this winter, increasing the income eligibility for a family of four from $43,308 a year to $45,312 a year.

Rethinking Caps

Anew Siena Research Institute poll shows that when it comes to local taxes, New Yorkers are more savvy than many politicians might think. Yes, they are upset about the growing burden of local taxes, particularly school taxes, the largest component of that burden. But when asked in a poll what they would do to ease the burden, a large majority of them were not taken in by the lure of a tax cap. Instead, when given the choice between a cap and a so-called circuit breaker approach, 75 percent chose the latter.

‘Circuit breaker’ tops tax cap in poll

Most respondents prefer method that reduces levy based on income

by Rick Karlin
Capitol bureau

ALBANY — A “circuit breaker” that would limit how much of their income people pay toward property taxes is more popular among New Yorkers than a tax cap, according to a Siena Research Institute poll released on Monday.

New Yorkers prefer circuit breaker over tax cap

New Yorkers want relief from how much they pay in taxes, as opposed to simply limiting school spending, a new survey shows.

A recent poll conducted by tax policy group TREND NY found New Yorkers overwhelmingly support legislation that would limit a taxpayer’s total property taxes to a percentage of their income, also known as a circuit breaker. NYSUT supports such legislation as one way of providing taxpayer relief.

Smith Slapped Over Tax Cap

The Working Families Party is not reserving its criticism over the proposed property tax cap solely to Gov. David Paterson.

The labor-backed party is also upset with another of its Democratic allies, Senate Minority Leader Malcolm Smith, for his recent announcement that he not only supports the cap, but wants it to be lower than even Paterson has proposed (2 percent rather than 4).

The minority leader’s move also shocked members of his Democratic conference who were angry Smith got out in front of them on a subject on which they have yet to take a formal position.

The WFP took Smith to task in a June 17 e-mail that also mentions the party’s displeasure with his failure to join Assembly Speaker Sheldon Silver in supporting the so-called “millionaire’s tax.”

The WFP has proposed a property tax plan that would provide relief to low and moderate-income families through a circuit breaker funded by increasing the personal income tax for wealthy New Yorkers.

Governor’s plan to cap school taxes won’t get through Legislature

By Tom Precious

ALBANY — A dispute over how to control rising school taxes came out into the open Thursday, as Gov. David A. Paterson and legislative leaders squared off over whose idea is best to get a grip on a problem worsening the exodus of New Yorkers to states with lower taxes.

After nearly a half-hour of rhetoric, the sides were no closer, leaving it all but certain that property taxpayers will not be seeing a relief plan from Albany before lawmakers end their 2008 session on June 23.

Burying the tax cap

by Rick Karlin

Burying the concept of a school tax cap was pretty much what these leaders of the state’s education lobby were doing just now during a press conference.

Among the arguments against Gov. Paterson’s 4 percent tax cap idea: there’s no accompanying “floor,” or guarantee of minimum state funding for the schools; it would disproportionately hurt poor schools and could force cutbacks in all sorts of school programs and activities.

“It’s like replacing half your roof or buying one shoe to save money,” said Maria DeWald, pictured above, from the state PTA.

“What is the rush?” DeWald added.

Actually, the prospect of a tax cap being passed, at least this year, is pretty much non-existent with neither the Republican Senate or Democratic Assembly showing no indication that they plan to take up the idea.

But nonetheless, said NYSUT spokesman Carl Korn, the press conference was a way to get the messsage out to lawmakers about how deep the opposition to a property tax cap is in the education community.

Among those joining the coalition against the tax cap are New Yorkers for Fiscal Fairness, the New York State PTA; Working Families Party; Fiscal Policy Institute; New York State Council of School Superintendents; New York State United Teachers; Citizens Action of NY; TREND; Center on Budget and Policy Priorities; Campaign for Fiscal Equity; Alliance for Quality Education; and the Civil Service Employees Association.