8/20/2019 Tax Cap Impact Varies

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 Research NoteWhat Does This Year’s Tax CapMean for Schools?

In late January, we all learned the official tax cap for the upcoming year (2016-17), will be .12 percent or effectivelya zero percent increase. What does this mean for school districts, particularly in different regions of the state andwith varying degrees of wealth?

To answer these questions, NYSASBO examined tax levy per pupil and found that the increase allowed variesdramatically around the state and for school districts grouped by need/resource capacity. NYSASBO alsocompared the amount that could be raised by a flat 2% tax cap and the amount raised by the .12 percentincrease.

Figure 1 shows that:

• Tax levy per pupil varies dramatically between high need and low need districts. Low need districts were able toraise $21,911 per pupil in 2015-16, while high need districts were only able to raise $8,081 per pupil locally.• The .12 percent tax cap for 2016-17 means high need districts will be able to raise an additional $10 per studentwhile low need districts will be able to raise $27 per student.

Figure 1. Tax Levy Per Student for 2015-16 and Maximum Allowable Levy for 2016-17Under the Tax Cap by Need/Resource Capacity Category

Figure 2 shows that regionally, Hudson and Long Island school districts enjoy the largest tax levy per studentat $18, 287 and $18,875. Districts in the North Country region had the smallest tax levy per pupil in 2015-16 at$6,826, followed closely by districts in the Mohawk Valley, Western and Southern Tier regions. Tax levies canincrease for 2016-17 by miniscule amounts.

Figure 2. Tax Levy Per Student for 2015-16 and Maximum Allowable Levy for 2016-17Under the Tax Cap by Region

$8,081

$12,848

$21,911

$8,091

$12,863

$21,938

$0

$5,000

$10,000

$15,000

$20,000

$25,000

High Need Average Need Low Need

2015-16

2016-17

 nysasbo.org

$10,987

$9,513  $10,055

$18,287

$7,069   $6,826

$18,875

$8,689   $8,554

$11,000

$9,525  $10,067

$18,309

$7,077   $6,834

$18,897

$8,699   $8,564

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Capital Central Finger Lakes Hudson Mohawk Valley

NorthCountry

Long Island Southern Tier Western

2015-162016-17

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