Tax levy growth for 2018-19 capped at 2 percent
On Board Online • January 22, 2018
By Paul Heiser
Senior Research Analyst
The allowable tax levy growth factor for school districts will be capped at 2 percent for the 2018-19 fiscal year, according to State Comptroller Thomas Dinapoli.
This year's levy growth factor of 2 percent is a significant increase over last year's figure, which was 1.26 percent.
The tax levy growth factor for schools is based on the increase in the national Consumer Price Index (CPI) for the previous calendar year and is the main factor in the tax levy calculations of each of the 677 school districts across the state that hold public budget votes. It also applies to the "Big Four" cities of Buffalo, Rochester, Syracuse and Yonkers, which have taxing authority over their respective school systems.
The allowable growth factor is the lesser of the rate of inflation or 2 percent, and inflation was 2.13 percent. Individual school districts must calculate additional items such as capital expenditures and PILOTs (payments in lieu of taxes), which may result in their actual tax levy limits being above or below 2 percent.