Forums
with
Assemblywoman Sandy Galef

BREAKING DOWN BOUNDARIES:
Sharing and Coordination between School Districts, Municipalities, and the State to Realize Tax Dollar Savings

April 10th, 3-5 p.m.
Cortlandt Town Hall*

Sandy will host a forum with NYS Comptroller Tom DiNapoli, who will be joined by Putnam/Northern Westchester BOCES District Superintendent Dr. Jim Langlois; Westchester County Association Chairman Alfred B. DelBello; and Cortlandt Town Supervisor Linda Puglisi to discuss issues, obstacles and brainstorm possible strategies to implement savings through shared services. School district, municipal, and community leaders and the public are encouraged to attend.

REINVIGORATING THE ECONOMY:
Small Business Start-Up and Growth Opportunities in Westchester and Putnam

May 8th, 7:30-9:30 a.m.
Cortlandt Town Hall*

Sandy will host a panel targeting those looking to start up or improve a small business. Executive Director of the Women’s Enterprise Development Center Anne Janiak, and Executive Director of the Division of Minority & Women Business Development-Empire State Office of Economic Development Michael Jones-Bey will be joined by representatives from the NY State Comptroller’s Office, the Alliance of Hudson Valley Women Business Owners, a financial institution, a micro lender, and local business support groups. Resources and information, including how New York State can help, will be available with a special focus on women and minorities. Please join us.

*Cortlandt Town Hall is located at 1 Heady Street, Cortlandt Manor (914) 734-1000.

These are some of the proposals that are being considered by the New York State Legislature to help with your local tax burden.

In early February, Senator Betty Little and Sandy announced their new legislation addressing the Middle Income Circuit Breaker tax relief which would replace the Middle Income STAR program.

A. Middle Income Circuit Breaker Bill
(A1575A Galef /S1053A Little)

For the past two years, most of my constituents received a Middle Income STAR Rebate Check. Approximately $1.3 billion was included in the state budget to fund this program. The first year, the check was based on the assessed value of property and the second year the check was based on the household income of the family. This new bill would replace the Middle Income STAR Rebate, and would consider property tax in relation to income, giving a credit on income taxes rather than a rebate check. If you do not owe the state money, the state tax department would send you a check. See the accompanying table to determine how your taxes would be affected. The circuit breaker program would cost the state $1.3 billion. To maintain this budget, the program would be limited to taxpayers who had resided in their property for at least 5 years, but it can be expanded in future state budgets.

B. Funding Schools on Income Tax Instead of Property Tax (A4746 Cahill)

This bill would mandate all costs of a basic quality education be paid directly by the state of New York through revenue collected in income taxes. A formula set by the NY State Board of Regents would determine the cost per student of a basic quality education (adjusted for regions and special student needs), and would establish a schedule of mandatory basic services. Annually, school districts would submit a basic budget to the State Department of Education for approval. Districts would have some flexibility in determining what would constitute a basic budget during the five year phase-in period.

In addition, your district could elect by a two-thirds voter majority to increase taxes for education. In order to fund this additional spending, a local income tax surcharge would be imposed on individuals in your school district. Presently, $21.5 billion is raised on the state level to fund education and $23.5 billion is raised locally from property taxes. Under this proposal, state income tax would have to rise significantly to fund the current levels of education spending.

C. Optional System by School District for State Takeover of Local Education Spending
(S6119 Bruno/Saland)

School district residents may elect to have the state assume the local portion of school taxes paid by primary residents (STAR eligible properties) over a five year period. The first year, the state assumes 20% of local costs, the second year 40%, etc. until the state takes over 100% of costs. School budgets would be locked into the first year’s level of spending for the entire five years of the state takeover. During this time, any additional school budget increases could only be funded by businesses, multi-family properties, or increases in the state aid budget for the school district. Capital bonding would continue to be funded on property assessments as it is today. After five years of state takeover, the bill allows the school district to raise costs by the CPI which would be funded at the state level. Joining this optional system is binding on the school district.

D. Local Districts Choose Combination of Property and Income Tax to Fund Schools
(A9733 Galef)

This bill would allow residents in each school district to decide through a local district referendum whether or not they would like to fund the local portion of school taxes through a hybrid system – part property/part income tax. The income tax portion comes from the total income derived from taxpayers in the school district. These monies would reduce the property tax levy. For example, if a school district needed to raise $100 million in local taxes, it could decide to raise $50 million in property tax and the other $50 million through local income tax. The percentage of property tax versus income tax is chosen by the voters.

Sandy is outside the Westchester County Board of Elections in January announcing victory in getting Optical Scan/Paper Ballot Voting Machines approved for New York State. Both Putnam and Westchester Counties have ordered these machines for the upcoming elections. This was an example of great teamwork between grassroots supporters and good government groups working together on this critical issue to ensure voter rights are protected and that our votes really get counted.

E. Massachusetts Proposition 2 ½

Implemented in 1982, Massachusetts Proposition 2 ½ revolutionized property tax administration and reduced the steadily increasing burden on property taxes to fund schools, public safety, and other public services. Since its inception, Massachusetts has gone from the third highest state-and-local tax-burdened state in the nation to thirty first. The proposition limits the amount of revenue raised each year through property taxes by 2.5% of the taxable property, but allows school districts to increase limits and the taxable base permanently or temporarily, with a voter majority. With Massachusetts’s complicated formula to evaluate the tax levy, one year you may pay under 2.5% of an increase from the prior year’s tax, and the next year much greater than 2.5%.

F. Consumer Price Index Tax Cap

There have been versions of tax caps proposed by the NYS Legislature which limit property tax increases by a percentage equal to the cost of living (CPI), instead of by the 2.5% adopted in Massachusetts.

In January and early February, Sandy held town meetings around the 90th Assembly District, including at the Putnam Valley and Hendrick Hudson libraries pictured above. Many residents came out to discuss issues of concern and to offer suggestions on legislation.

Constituent Questionnaire
(Room for two Respondents)

**Click here for a printable view**

Here are some questions to help me understand how the Middle Income Circuit Breaker and other options to lower real property taxes would affect my constituents:

1. Do you feel that what you pay in property taxes compared to your household income is fair?

Yes No

Yes No

2. Do you pay more than 6, 7 or 8% of your household income in property taxes?

Yes No

Yes No

3. If so, would the circuit breaker legislation give you more tax relief than you currently receive through your STAR rebate check (which was based on 2005 household income)?

Yes No

Yes No