Senate Bill S7622

                                 BILL NUMBER:  S7622

 TITLE OF BILL :

An act to amend the education law, in relation to authorizing school
districts to increase school budgets by up to two percent without a
supermajority vote

 PURPOSE :

The bill would enable school districts to increase their budget over
the tax levy limit without a supermajority vote as long as the
increase does not exceed 2 percent.

 SUMMARY OF PROVISIONS :

Section 1 amends subdivision 6 of section 2023-a of the education law,
requires a school district budget that exceeds the tax levy limit by
more than two percent to be approved by sixty percent of the votes
cast in the affirmative.

Section 2 sets the effective date.

 JUSTIFICATION :

Chapter 97 of the laws of 2011 imposed a tax levy limit on school
              

district tax levies. Although many refer to this law as a 2 percent
tax cap this is not an accurate depiction of the law. Under the tax
levy limit, the amount of taxes that may be levied by or on behalf of
a school district cannot increase by more than 2 percent, or the rate
of inflation, whichever is lower. As a result of low inflation in
recent months, the allowable levy growth factor for the school year
2014-2015 was 1.46 percent, which is significantly lower than 2
percent. In terms of revenue, the difference between a tax levy limit
of 1.46 percent and 2 percent is hundreds of thousands of dollars,
which can be used to prevent staff cuts, the elimination of
extracurricular activities and other important educational programs.
Under the current law, a school district that proposes a budget with a
tax levy increase of 1.55 percent and has a tax levy limit of 1.46
percent must override the cap by 60 percent of the vote. This
legislation would change existing law so that a school district's
budget would only be subject to an override if the tax levy exceeds
the tax levy limit by more than two percent.

 LEGISLATIVE HISTORY :

2014: A.9857

 FISCAL IMPLICATIONS :

None to the state.

 EFFECTIVE DATE :
This act shall take effect immediately.