Governor’s Gimmicky Circuit Breaker Plan At Odds With Local Realities

Legislative Column from Assemblyman Ken Blankenbush (R,C,I-Black River)

New York is home to some of the highest property taxes in the nation, a legacy created by years of unfunded mandates from a spendthrift government that passed the buck and the bill on to our local municipalities and schools. Unfunded mandates are the cost drivers to higher property taxes. As demonstrated by the New York State Association of Counties, nine unfunded mandates consume nearly 90 percent of the local tax levy. What makes matters worse is that there are hundreds more.

So, what have we heard in the past from the governor? Well, when he was first elected, he pushed for a two percent property tax cap, which I voted for because he promised that there would be meaningful relief and reform of mandates. He created a Mandate Relief Team, and subsequently, nothing happened. Later the state did take on some of the Medicaid responsibilities, but more must be done.

As costs grew, the governor placed new demands on municipalities that essentially forced consolidation on local governments, but did not provide the tools to be successful. Meager property tax rebate checks were issued, oddly timed to coincide with state elections. All the actions of the governor to date have failed to provide New Yorkers with meaningful and lasting property tax relief.

And now, here we are discussing the 2015-16 budget, and, I fear, we are in the same place. Property tax relief will get another false start leaving homeowners and local governments without the help they need. The governor’s plan creates a tax credit, also known as a circuit breaker, for homeowners whose property taxes exceed a certain percentage of their income, but only if they reside in a municipality or school district that is compliant with the property tax cap. Remember, the real tool to lowering property taxes is removing those unfunded mandates, which the governor still has failed to adequately address.

Right away, I see problems with his circuit breaker plan, because it creates winners and losers among taxpayers and communities. Some people may miss out on property tax relief just because they don’t live in the right community. Instead of playing games and providing gimmicks and hoops for people to jump through, why don’t we offer the right kind of relief: provide mandate relief, continue to offer STAR rebates, and other tax-cutting measures. I encourage my colleagues to take this approach instead.

Please share your opinions with me on this issue or any other legislative matter. Email me at blankenbushk@assembly.state.ny.us or call my office at 493-3909.