Long Island school districts planning higher tax increases amid financial uncertainties

Long Island districts are projecting higher tax increases for the coming school year, but many superintendents, teachers and parents are hoping for a last-minute boost in state financial aid that could help keep rates under control.

Islandwide, preliminary district reports analyzed by Newsday show that property taxes would rise an average 2.67% during 2024-25. At least 35 districts project hikes of 3% or more. 

In comparison, estimates of regionwide taxes were up only 2.21% at this time last year and 1.9% the year before.

Some increases in tax collections, known as levies, are running higher. William Floyd has forecast a 4.27% rise, Eastport-South Manor 4.96% and West Babylon 9.98%.  

Newsday's review was based mostly on reports from more than 120 Long Island districts submitted to the state Comptroller's Office and covering nearly $9.8 billion in overall tax revenue. State law requires these projections as of March 1 each year as a kind of "early alert" for taxpayers. School levies account for more than 60% of homeowners' tax bills on the Island.

Districts are scheduled to report final tax and spending plans by April 26. Public voting on proposed budgets will be held May 21. 

In the meantime, the financial picture for the Island's school systems for the next academic year remains in flux.

Districts have based tax estimates largely on Gov. Kathy Hochul's proposed state budget released in January. That plan called for a statewide school-aid increase of $825 million, or 2.4%, which was well below the inflation rate of 3.2%. At the time, Hochul said the state faced a multimillion-dollar budget deficit and needed to tighten its finances.

The governor's plan for 2024-25 came as a bit of a shock and was considered lean by education advocates, because it followed three years of record aid increases totaling more than $7 billion statewide.

Forty-four districts in Nassau and Suffolk counties would lose aid under the governor's current plan. Most other systems would gain money, but not as much as they would have, had Hochul not trimmed back a state formula governing allotment of "foundation" aid, the largest source of support.

More recently, the governor has taken a somewhat different position, reporting earlier this month that annual state revenue was expected to run $1.3 billion higher than originally thought. Hochul's aides have suggested that much of the extra money could be used to assist schools.

Another wrinkle for schools is that federal COVID relief payments, totaling hundreds of millions of dollars, are due to dry up in the fall. That poses a particular problem for districts that used money to hire extra counselors and other workers during the pandemic and now face a potential choice between layoffs and tax hikes.

At the local level, many school officials said they're still waiting for the governor and legislators to approve an actual state budget before they make any revisions in tax plans. Most districts at this point are projecting the maximum rate hikes permitted under New York's strict tax-cap law. 

"It's not surprising that the overwhelming majority of districts at this point are projecting budgets that require them to go out with their maximum allowable caps," said Bob Vecchio, executive director of the Nassau-Suffolk School Boards Association. He added that budget pressures were largely due to what he called "uncertainty created by the governor's proposal." 

A final state budget is due April 1, though negotiations over details could delay completion.

Districts already making cuts

Meanwhile, education representatives continue to press for more money. Last weekend, hundreds of teacher-union representatives gathered near county offices in Hauppauge to protest what they called the "harsh effects" of the governor's original aid plan. 

At local school board meetings, a question often raised is whether teachers might face layoffs, and students the loss of services, unless Albany comes up with more cash.

Amityville's school board on March 6 approved cutting 47 staff positions, including teachers, to fill a $3.6 million budget gap.

Then on Tuesday, Riverhead officials said they would cut nearly 38 teaching positions and 18 teaching assistant slots, while reducing the district's dual-language program. Reasons cited included a drying up of federal COVID relief money along with state underfunding.

On Wednesday, the Sachem district announced planned staffing cuts: At least 60 teachers could lose their jobs because of a nearly $12 million budget shortfall.

In Port Washington, one of the systems that would lose aid, Kathleen Manuel, the district's assistant superintendent for business, told board trustees at a March 5 meeting that the district faced a potential $5.38 million gap between spending and revenue. Manuel suggested that the district consider options for closing the gap — for example, a tax increase beyond the 3%-plus already proposed, or dozens of staff layoffs. 

Once the budget presentation was completed, a board member, Adam Block, described the options as "soul-crushing." Block went on, however, to sound a more hopeful note.

"I'm cautiously optimistic that the governor is going to step in, realize the box that we've been put in," Block said.

Elsewhere, four districts, including West Babylon, have announced tentative plans to seek bigger tax increases through voter overrides of state cap restrictions. Approval under state rules requires voter majorities of at least 60%. 

The three other systems, Amagansett, East Hampton and Springs, all in the East End, have proposed rate hikes of 7.77%, 9.7% and 13.04%, respectively.  

In West Babylon, a March 12 board meeting attracted dozens of residents, many of whom came to hear about the district's tax plan. Superintendent Yiendhy Farrelly told the audience that she and board members were "exploring every area" that could produce possible cost savings, including consolidation of bus routes, staff cuts and grant applications. 

Farrelly said the district faced more than $6 million in additional costs next year as part of its proposed $139 million budget, and needed to find extra revenue either through higher taxes or other means. Some of the biggest cost items include regional BOCES services, up $4 million; employee salaries, up $2.5 million; and employee benefits, up $2.37 million. 

At two points during the meeting, residents were invited to walk over to a microphone and voice their opinions about the budget or other issues. None stepped forward. 

Four residents, however, told a Newsday reporter covering the meeting that they had misgivings about a large tax increase. One of them, Jennifer Trounson, a parent, voiced hope that the 9.98% figure under consideration might eventually be lowered. 

"I feel that number is high and may result in a failed budget," Trounson said. "But there's still time for the board to come up with their final decision."

Farrelly later emailed a requested statement to Newsday on issues raised at the meeting.

"As we await the final NYS aid projections, the district remains hopeful and most certainly would welcome and appreciate any additional increase in state aid, which would allow us to help offset some of the budget constraints we are currently dealing with," the statement read in part. 

Governor, lawmakers disagree

In Albany, both the State Senate and Assembly have adopted separate bills that would increase state aid to schools by an additional $1.3 billion, with increases of at least 3% for every district. Points of disagreement remain between the governor and legislators, however. 

Lawmakers, for example, seek to further raise income-tax rates on multimillionaires as a means of collecting more revenue. Rates on high earners in this state already rank among the nation's highest, second only to California's.

Hochul calls the latest income-tax proposal a "nonstarter" and warns against making the state less affordable.

For her part, the governor continues to press for elimination of "hold harmless" provisions in school-aid regulations that guarantee districts at least as much assistance as they received in prior years, even if their enrollments fall.

"We can't kick this can down the road, and we don't want to raise taxes," she stated in a recent website video. "That leaves one choice: Find common-sense ways to reduce spending growth." 

Legislators contend that tossing out "hold harmless" without extensive review would amount to pulling the rug out from under districts that have come to expect such protection. Lawmakers predict, moreover, that when all the haggling is over, there will be substantially more money for schools.

"There's strong bipartisan support," Assemb. Fred Thiele Jr. (D-Sag Harbor) said in a recent phone interview. 

Assemb. Edward Ra (R-Franklin Square) noted that the similar bills already supported by the two legislative chambers were hopeful signs. "I think it puts us in a good place," he said.