LI school property taxes projected to rise an average of 1.8%

Long Island school districts project an average 1.8% rise in property taxes next year — the lowest increase in five years and one reflecting an economic slowdown triggered by the COVID-19 pandemic.

Four districts — Bridgehampton, Greenport, Three Village and Wantagh — have announced tentative plans to seek tax-cap overrides for the 2021-22 school year. Local officials cited various reasons for considering higher taxation, including a desire to maintain popular student programs and avoid teacher layoffs.

Preliminary tax plans for more than 120 districts in Nassau and Suffolk counties are spelled out in a recent report issued by the state comptroller's office in Albany. The annual report serves as a sort of early alert system for local taxpayers and others who vote in school elections.

Under state law, at least 60% of voters must approve any proposed override of tax-cap restrictions within individual districts. Polling this year is scheduled for May 18.

New York State sets a baseline restriction on annual increases in school property taxes of 2% or the inflation rate, whichever is lower. This year's baseline is 1.23% due to a sluggish economy and low inflation.

"Given the economic challenges that people face these days, I think districts are cognizant of that and are budgeting conservatively," said Ron Masera, superintendent of Center Moriches schools and president of the Suffolk County School Superintendents Association.

Masera added that, despite budget constraints, education leaders look forward to the return of more students to schools next year as pandemic infection rates decline.

"School leaders are maintaining a positive, optimistic attitude, and are looking forward to building budgets that will provide a full return to classes next fall," he said.

This year's report by the comptroller's office finds that total property-tax collections are projected to rise by an average 1.7% in Nassau and 1.9% in Suffolk.

Tax hikes within individual districts can run either higher or lower than the state baseline, depending on local circumstances. On Long Island, school taxes account for about two-thirds of property owners’ total bills.

Analysts cautioned that tax numbers are preliminary and subject to change, as districts obtain more details on how much financial support they will receive from federal and state governments. Much of that information is expected to become available around April 1, when Gov. Andrew M. Cuomo and state legislators are due to approve a state budget.

In Wantagh, administrators would have to reduce their tax levy slightly next year under state rules, due to a formula change involving capital costs. Levies are the total dollar amounts raised through property taxation.

As an alternative, administrators raised the possibility of an override that would boost taxes 4.88%, while adding that a final decision won't be made until April.

Those officials added that they continue offering "terrific opportunities" for students but feared they might have to cut 19 staff positions and raise elementary school class sizes, even if a tax hike is approved. Wantagh has cited pressures exerted by pay raises and other rising costs and was one of 31 districts statewide identified recently by the comptroller's office as facing fiscal "stress."

Three Village has proposed a 1.85% tax hike for next year, which is higher than the 1.37% allowed by its cap. The district cited COVID-19-related expenses, including hiring of extra teachers to lower class sizes, as a major cost factor.

Jeff Carlson, the district's deputy superintendent, described such spending as "the cost to have our students, pre-K through grade 12, in school five days a week the entire school year." He said such funding needs to be maintained next year and would cost the average taxpayer only $58 more than if Three Village kept within its cap.

Overriding state caps has proved easier in the East End, where taxes are relatively low, than in school systems farther west. Voters in both Bridgehampton and Greenport have approved cap-piercing budgets twice in recent years, for example.

In May, they could try again.

Bridgehampton is eyeing a 9.34% tax boost, far beyond the 2.7% limit set by state rules. Jennifer Coggin, the district's business administrator, said a big factor in local budget planning was an increase in families with special-education needs who recently decided to move to the bucolic area from New York City.

"It changes weekly sometimes," Coggin said of the list of new arrivals.

Greenport, meanwhile, is considering a 4.85% levy increase, rather than sticking within its 1.56% cap. But local administrators said they would consider money-saving alternatives, such as retirement incentives for senior employees, before committing to an override attempt.