DiNapoli to NYSSBA: Tighter state aid, low tax cap on horizon for schools
FOR RELEASE: September 12, 2016
CONTACT: Al Marlin
School districts should plan for limited state and local revenue growth in their budgets next year, based on projections for shrinking state tax collections and another low tax cap, according to State Comptroller Thomas DiNapoli.
DiNapoli made the prediction in an interview with New York State School Boards Association (NYSSBA) Executive Director Timothy Kremer in an upcoming “NYSSBA News” program that will air on NYSSBA’s website beginning September 12.
“We may have to be perhaps a little more conservative in our assumptions as we move forward,” DiNapoli told Kremer. “State budget gaps could be as high as $5 billion per year over three years due to increased state spending, decreased tax collections, and depletion of reserve funds.”
DiNapoli also told school boards not to expect to make up any shortfalls in state aid through property taxes, since he expects the tax levy growth factor in 2017 to again be lower than the 2 percent cap.
In response to a question from Kremer about whether the comptroller expected the tax cap to be higher than the 0.68 percent levy growth that municipalities will have to operate under in 2017, DiNapoli said, “Unless there’s a dramatic change in the economic trends, I don’t see that happening.”
The NYSSBA News interview between Kremer and DiNapoli can be viewed: