Relates to the Tuckahoe common school district merger with the Southampton school district in Suffolk county; authorizes the Southampton school district to establish a reserve for tax reduction to maintain the successor school district estimated tax rate for taxpayers of the Southampton school district existing before the voter approval of the dissolution and annexation of the Tuckahoe common school district at the level of such tax rate in the Southampton school district for the school year before the voter approval of the dissolution and annexation of the Tuckahoe common school district.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9461A
SPONSOR: Thiele TITLE OF BILL: An act in relation to the Tuckahoe common school
district merger with the Southampton school district in Suffolk county
PURPOSE:
Provides that upon voter approval of the dissolution and annexation of
the Tuckahoe Common School District into the Southampton Union Free
School District in Suffolk County, the newly merged Southampton School
District shall be authorized to establish a dedicated reserve fund for
the purpose of reducing property taxes for the residents of the South-
ampton School District.
SUMMARY OF PROVISIONS:
Section 1. Upon voter approval of the dissolution and annexation of the
Tuckahoe Common School District into the Southampton School District in
Suffolk County, the successor school district (Southampton School
District) is authorized to establish a reserve fund to be utilized for
the purpose of lowering property taxes for district residents.
Section 2. Directs the Southampton School District to annually provide a
detailed report of the condition of the school district reserve fund for
tax reductions.
Section 3. Provides that the funds in the school district reserve for
tax reduction shall be used to maintain Southampton School District's
estimated tax rate that was in place prior to the merger.
Section 4. Immediate effective date
JUSTIFICATION:
Tuckahoe Common School District is comprised of one school building that
educates students from pre-K to eighth grade. Most students from Tucka-
hoe who advance to the high school level are sent to the,Southampton
Union Free School District by way of a tuition agreement. Tuckahoe's
tuition bill is becoming over burdensome for Tuckahoe. If Tuckahoe sent
their students to a district other than Southampton, Southampton would
then experience a significant reduction in revenue and would consequent-
ly have to cut staff, AP courses and some electives. Further, the
State's tax cap makes it difficult for each district to raise taxes
enough to solve its problems.
As a means of addressing the fiscal concerns of the districts while at
the same time, continuing to provide a quality educational program for
all of the students, the districts commissioned a study to determine if
reorganization could provide enhanced opportunities for both the
districts and the students.
In many ways, Southampton and Tuckahoe are ideal for a merger as their
demographics are similar. No new buildings or major renovations would be
necessary. Many students already know each other though the community,
sports, scouts and the local youth center. Further, the findings of the
"Reorganization Feasibility Study on Behalf of Southampton UFSD and
Tuckahoe Common SD" (prepared by the SES Study Team, LLC) that were
released in July 2013, estimated a budget for the combined district of
$71.5 million, $9 million less than the combined budgets of the two
districts last year. With wide community support, the prospects looked
promising for a merger. However, the proposal was actually voted down
when put before the voters due to the disproportionate impact on proper-
ty taxes. In a merged district, tax rates would be equalized thereby
resulting in a significant increase in property taxes for Southampton
residents.
This legislation offers a viable solution to address this legitimate
concern. Upon the approval of the voters for the dissolution and annexa-
tion of the Tuckahoe Common School District into the Southampton Union
Free School District, the Southampton Union Free School District would
be is authorized to establish a reserve for tax reduction purposes using
$9 million capital monies that Southampton currently has in reserve to
construct a new administration building which would no longer be needed
if the merger where to occur. This reserve would be used exclusively for
tax reduction purposes to ensure that the Southampton School District's
estimated tax rate that was in place in the school year prior to the
merger is maintained.
LEGISLATIVE HISTORY:
2014: New Legislation
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
