Schools Not Responsible for Tax Hike?

[Chris_Wendt]

...thus reports Newsday (link)today.

We could debate and discuss or argue the validity and merits of this premise, ad nauseam. No amount of public discourse or blame-assigning will change your school tax bill, however.

Here are my suggestions, in response:

• Let's all acknowledge that the so-called "Two-Percent Tax Cap" is neither two percent nor a tax cap.
  
  
• Grieve you tax assessment every year.
  
  
• Recognize that the school district over-taxes us by several million dollars more than they actually spend each year, and, that they have millions of our tax dollars stashed in reserve funds. Then, try to convince the school board to trim their reserves, and lower their tax levy to an amount about equal to their actual spending each year.
  
  
• Failing to convince the BoE to better manage the school tax levy (and reduce reserves) against actual spending, then vote down the school budget instead. Doing that will at least put a hard cap—a true ZERO spending increase—on next year's spending, which spending, after all, is the real bottom-line cause of our high school taxes.
  
  
• If you have no stomach for voting down the school budget, or, if enough people won't get behind such a movement, then move out of New York and reduce your taxes by two-thirds or more.
  
  
• If none of the above are your cup of tea, then just pay your taxes and suffer in silence, but with reasonable assurance that the children of Wantagh are getting a very good education on your tax dollars.

I view my school taxes as an investment in your kids' future. But now I must consider my own family's financial future much more carefully than I had during all those years when I voted to raise everyone's school taxes.

People in my age group, Baby Boomers, are ascending rapidly to majority status among registered and likely voters. If we Boomers don't see some meaningful relief from these astronomically high school taxes soon, then the glory days of school budgets passing handily could come to a sudden screeching STOP!

Chris Wendt, at the leading-edge of the Baby Boom Generation. Still working—in your brother-in-law's job—so I can pay my school taxes!

[rr]

Chris,

I saw an article recently about Mt. Sinai SD audit by the state that found they were holding reserves too high. Not suggesting we need an audit in Wantagh but I don't think I'd have an issue with it either...

[rr]

link...also one in Newsday but I can't access...

millerplace-rockypoint.patch.com/groups/schools/p/state-comptroller-excessive-surplus-funds-in-mt-sinai-school-district

[Chris_Wendt]

See Bullet #3 in the lead post of this thread:

• Recognize that the school district over-taxes us by several million dollars more than they actually spend each year, and, that they have millions of our tax dollars stashed in reserve funds. Then, try to convince the school board to trim their reserves, and lower their tax levy to an amount about equal to their actual spending each year.

The article and audit report seem to indicate a new, refreshing standard for compliance with the law governing school district reserves. How much does your budget exceed your actual expenditures?

Under such a simplified standard, Wantagh may not pass the same audit which Mt. Sinai just failed.

For the benefit of the new school board members and the new Assistant Superintendent of Business, they should either review carefully the BAC recommendations for the last 3-4 years (when we still had a BAC), and take note of where the money had been stashed. Then they should look and see if they have unreasonable (or unlawful) amounts reserved, and if so, then plan a nice big, fat appropriation for next year, returning any excess funds they discover to the taxpayers, or float a proposition for voter approval to establish a Capital Reserve Fund, and legally reserve the money for future capital projects.

The BoE should also reinstate the BAC this Fall.

Chris Wendt

[Chris_Wendt]

I have been asked to clarify my remarks. immediately above.

The recently simplified standard applied by the State Comptroller in the Mt. Sinai audit actually runs counter to statements, some of them appearing to have been "policy" statements, from Comptroller DiNapoli and Commissioner King concerning school boards protecting reserves. Indeed, the draconian cut to State Aid made by Governor Cuomo point to the wisdom of school districts optimizing cash reserves.

Case in point, Wantagh had significant reserves when State Aid was cut, and we were able to weather the financial storm and protect our taxpayers from excessive school tax hikes. Conversely, Seaford had a mere $300K in reserves when Governor Cuomo cut State Aid, which resulted in Seaford taxpayers experiencing large school tax hikes while the Seaford School Budget was defeated, placing their district on austerity at the same time. Seaford had to dig themselves a deep financial hole which still today negatively impacts some of their programs, all for being too conservative with their reserves.

(Now, in fairness, in 2005 Seaford got caught with millions of dollars in unlawful reserves; this went to the District Attorney, and the end result was the resignation of the President and Vice President of the school board, the sudden and immediate retirement of their business official, as well as the retirement of their Superintendent at the end of the school year. So Seaford's reticence about maintaining large cash reserves is both understandable and "lawful").

As a result of Wantagh's reserve practices, we have been able to accomplish many good things. However, my caution to the Wantagh Board of Education and our new Business Official may be timely, especially in light of the Mt. Sinai audit. Wantagh does not need any negative publicity over its cash reserves!

If some adjustments to reserves are due because of accumulations of reserve balances and concurrent cost reductions or lowered spending projections, then it would be much better if Wantagh determined this for itself and made those corrections, as opposed to having the State make a cause celeb over this, and splash Wantagh's name all over Newsday.

Sincerely,

Chris Wendt