The New York State Commission on Property Tax Relief, chaired by Nassau County Executive Tom Suozzi, issued its preliminary report and is calling for a cap on the property tax cap levy of school taxes at 4 percent or 120 percent of the Consumer Price Index (CPI), whichever is less.

The commission was formed by then-Governor Eliot Spitzer to take a look at the impact of escalating property taxes in New York. Since school taxes make up the bulk of property tax bills, the commission chose to look at how property taxes fund school districts.

Indeed, property taxes in Nassau County and on Long Island have become a major problem for residents seeking to stay in their homes and young families who are looking to make their homes here. "New York State has the highest local taxes of any large state in America - 79 percent above the national average. High property taxes have the most negative impact on low and moderate income working families, seniors on fixed incomes and small business owners who must shoulder this burden regardless of their ability to pay," the commission's preliminary report stated. "New York schools outside of New York City spend more per pupil than any other state in the nation - an estimated $18,768 in 2008-2009."

In order to alleviate some of the burden of high property taxes when it comes to school taxes, the commission proposed the 4 percent tax cap on school tax levy increases. The cap would also do away with school budget votes as long as the proposed tax levy increase of the budget is 4 percent or lower. Districts that want to exceed that cap in a given year must seek voter approval by either a 55 or 60 percent majority.

Some wonder whether a cap would provide tax relief and question the impact it would have on the educational programs in New York State. "Imposing a tax cap while holding out the promise of mandate relief in the future does little to address the reasons behind rising property taxes," said Timothy G. Kremer, executive director of the New York State School Boards Association.

Kremer points out that when more state aid is provided to school districts, boards of education are able to control the increases on the tax levies of their budgets. "In the last two years, when the state provided record amounts of education aid, school boards were able to keep property tax levy increases to a reasonable 3.7 and 3.4 percent, respectively. Voters responded with passage rates of 95 and 93 percent," he said.

During a public hearing held by the commission in March, West Hempstead School Board member Martin Kaye warned of the ramifications of a tax cap. "By capping school spending with no regard to inflationary costs such as health care and heating oil, diesel fuel construction costs and retirement benefits, the pinch is often felt in educational programs where we would have to truncate these programs as well as extra-curricular activities, cut staff and services, and perhaps review an entire special-ed population to see where savings could be made," he testified.

Some Nassau County school boards, already conscious of school taxes, have an eye on tax levy increases when they put school budgets before the voters each May.

In the Manhasset School District, the proposed 2008-09 budget amounted to $80,393,770, a 4.71 percent increase over last year's budget. The tax levy is projected to increase 5.43 percent with an estimated average property tax increase of 4.65 percent.

The budget was approved by a margin of 1,817 to 1,302. School Superintendent Charlie Cardillo said of the tax levy cap: "If this proposed legislation were in effect this year, the district would have been required to reduce the 2008-2009 budget by $471,044. If the district were unable to gain the necessary 55 percent "yes" vote, this would have required significant program reduction."

When asked for her comments on the suggested tax levy cap, Manhasset Board of Education President Cindy Cardinal was critical,

"I am deeply disappointed that the governor's bill fails to link his proposed tax cap to relief from unfunded state mandates. Without that relief, the cap will adversely affect the schools, which will need to cut services in order to meet the cap. 'No brainer' mandate relief would include excluding school districts from Wicks Law coverage and consolidating reporting requirements. I also think the transportation bill drafted by Manhasset's CAC for Legislative Affairs, sponsored in the Assembly by our Assemblywoman, Michelle Schimel, is an example of the kind of legislation that will help school districts, and therefore the taxpayer, save money. Without the mandate relief, the so-called 'blunt instrument' that the tax cap was intended to be becomes a nuclear warhead."

Another initiative that the commission is recommending is to impose a "STAR Circuit Breaker" as opposed to the present system of STAR programs. The circuit breaker would allow those who have the least ability to pay to receive the most tax relief benefit from the STAR rebate. However, the preliminary report doesn't include what the income would be to trigger the circuit breaker. "The program should be realigned to target those who need it the most," the preliminary report stated.

A final report by the commission will be submitted December 1.

"Now that the report has been issued, New Yorkers will need to scrutinize the impact tax caps could have on less-wealthy school districts and on student performance. Given our current financial condition, I'm concerned about the state's ability to keep up its end of the bargain and continue to increase education funding," said State Comptroller Tom DiNapoli.

Governor David Paterson announced that he is accepting the commission's principle recommendation and plans to introduce legislation on a school property tax cap.

Members of the Manhasset School District's Citizens Advisory Committee for Legislative Affairs (CACLA) have discovered over the course of the 2007-08 school year that there are many legal and regulatory requirements which arguably adversely affect the district.

Their challenge: identify current and proposed federal, state and local laws and regulations that have a deleterious impact on the Manhasset Public School District and advise the board of education on strategies to effectuate change that would benefit the district as a whole.

One area targeted is transportation where current law requires that a seat be reserved for any student eligible for transportation irrespective of actual ridership.

School districts should be placed in a position where they can economize on the cost of transportation. The following amendment is proposed to Education Law of the State of New York, Section 3635(c). It will provide school districts with flexibility in planning and maintaining transportation services.

Transportation services under New York State Education Law 3635.

Law governing (3635 a) safety belt usage (3635 b) Authorization to provide pupil transportation in child safety zone and (3635 c) Standing passengers prohibited.

Section 3635 c states: § 3635-c. Standing passengers prohibited. Standing passengers shall not be carried on school buses owned by or contracted to a school district while such vehicles are employed exclusively for the transportation of pupils under the age of twenty-one and teachers and other persons acting in a supervisory capacity to or from school or school activities, except as provided in subdivision one or two of this section: 1. Standing passengers may be permitted on such a school bus provided that the number of standing passengers does not exceed the limit established in the following schedule for the applicable time period:

Period: Not more than:

Through June 30, 2001 20% of approved seating capacity

Between July 1, 2001 and 15% of approved seating capacity

June 30, 2002

Between July 1, 2002 and 10% of approved seating capacity

June 30, 2003

Between July 1, 2003 and 5% of approved seating capacity

June 30, 2004

2. Notwithstanding any other provision of this section to the contrary, standing passengers may be permitted without limitation as to number during the first ten days of session in each school year, and in Circumstances where a breakdown, accident, or other unforeseen occurrence necessitates the transportation of standing passengers.

Sub 1 provided for a phase out by 2004 of standing passengers permitted prior to 2001. And Sub 2 allows standees for the first ten days of school or in the event of breakdown or accident.

Proposed amendment to Education Law of the State of New York, Section 3635.

The amendment adds the following provisions appended to the end of the language in the codified law.

8. Notwithstanding any other provision of law, rule or regulation, in school districts having an area of 15 square miles or less, if the Board of Education determines, based upon history and experience, that there is a consistent pattern where pupils eligible of transportation do not use the transportation provided by the district, the Board of Education, in its discretion, may enact a policy to provide home to school transportation based upon patterns of actual ridership without regard to (a) the number of students eligible for transportation and (b) the number of seats that would otherwise be required for them under Section 3635 (1) (a).

Mandate and rationale for change

All districts pay to provide buses based upon the number of eligible students, rather than the number that actually use bus transportation. Section 3635 c has been interpreted to require that school districts provide a seat for every pupil that is eligible for school to home transportation. This requirement is inflexible. In suburban school districts such as Manhasset, many eligible students do not avail themselves of bus transportation. The diminished ridership of the buses has been studied in Manhasset during the 2004-2005 school year. Rider ship surveys demonstrated that on the average, buses are at approximately 55 percent capacity. Because of New York State Law 3635c, and its mandate, the district continues to transport empty seats twice a day. The result is unnecessary added expense, congestion around the schools, and added air and noise pollution. In addition, with the necessity of energy conservation, it is also a waste of a much needed, and expensive resource, Fuel.

The goal is to provide school districts with flexibility to reduce the number of buses needed to serve home to school transportation. A measure offering the greatest flexibility is one that will allow the districts to assign a greater number of students to a bus than there are seats, based, upon stable patterns of rider ship. Currently, each district is paying for a capacity in bus seats that they don't use.

Each school district needs to compile a comprehensive ridership study. The result of the study will provide the actual numbers of riders, and percentage of ridership. This should translate to fewer buses needed and paid for by the district. The study conducted by the Manhasset School District was the result of four weeks taken at random from the roughly 15 weeks that were studied. The spreadsheet compared the number of pupils taking the bus with the number assigned to the bus. Dispatchers are in regular communication with all buses. If necessary, changes and modifications to ridership can be made easily.

Transportation services for school districts are a major driver in school budgets. State Mandates, fuel prices, the cost of operating and maintaining transportation services are prohibitive. School budgets are at an all time high, and are increasingly being defeated by the communities. Taxpayers in Manhasset repeatedly complain that the buses they observe to and from school are half empty. If this modification to the amendment is achieved, the cost savings to Manhasset will result in a total annual budget reduction estimating several hundred thousand dollars per year.

Pat Grace contributed to this article.