4 Long Island school districts want to pierce their tax levy caps: Why it's rare and why officials say it's needed now

School property tax levies on Long Island could rise by an average of 2.5% for the 2026-27 school year, with four districts announcing plans to override their tax caps, according to data from the state comptroller’s office.

The districts seeking an override are Shelter Island, Bayport-Blue Point, Uniondale and Lynbrook. Officials in those districts cited rising costs for health insurance, transportation and contractual obligations among the factors in their decision to exceed the cap.

Two of the four districts seeking an override — Uniondale and Lynbrook — are proposing a levy increase lower than the regional average.

Bob Vecchio, executive director of the Nassau-Suffolk School Boards Association, said no districts on Long Island attempted to pierce their cap for years after it was first put in place in 2012 and it has remained rare for the region’s 124 districts.

The fact that four are trying to do so this year indicates just how tough it has been for districts to balance their budget in a “sustained inflationary environment,” he said.

“Even those that aren't seeking a cap override, you're seeing them make reductions, either in staff through attrition or just ... making some cuts,” he said.

School districts are required to report their estimated tax levies to the state comptroller's office by March 1. School officials have emphasized these numbers are not final as budget proposals are typically not adopted until mid- or late April.

School taxatio n on average makes up two-thirds of Long Island homeowners' tax bills. In an effort to rein in costs, state Comptroller Thomas DiNapoli sets a limit every year on how much districts can raise locally through property taxes.

For the 2026-27 school year, DiNapoli in January capped school property tax levy increases at 2% as a statewide baseline, though actual rates differ by district depending on their fiscal circumstances. The latest inflation figure, posted for February by the U.S. Bureau of Labor Statistics, was 2.4%.

  Busting the tax cap historically has been difficult, as at least 60% of voters must approve the budget proposal. Districts that stay under their cap only need a simple majority of more than 50% of voters. This year's budget vote is May 19. 

Three districts last year sought to exceed their limit. Hicksville succeeded, while the other two — Elwood and Shelter Island — failed to garner enough votes. Those two districts then presented scaled-down spending plans that required a simple majority. Both were approved by a second vote.

Ken Girardin, a fellow at the Manhattan Institute, called the cap “a speed limit.” In some years before the cap took effect, tax levies averaged as much as 6%, Newsday has previously reported.

“The tax cap was designed to and succeeded at stopping that,” Girardin said. “School districts need to make a pretty strong case to the public for going over that speed limit.”

In all, Island districts are seeking to raise an estimated $10 billion in property tax for the next school year. Most are seeking a tax increase equal to their allowable limit, according to Newsday's analysis of the available data.

About two dozen districts proposed a levy increase lower than their cap. Five — Freeport, Hempstead, Lawrence, Island Park and Wainscott — have reported plans to freeze next year’s levies at current levels.

To Andrea Vecchio, a regional taxpayer advocate from East Islip who has no relation to Bob Vecchio, school tax levies should not be going up, even if they are on par with inflation.

“The enrollments have declined,” she said. “There are less kids. It shouldn’t cost more.”

Here's why four districts say they need to pierce their tax caps:

Second try

Shelter Island schools Superintendent Brian Doelger said he is "cautiously optimistic" that voters would approve the district's proposed 7% tax levy increase, after a 6.97% hike was rejected last year. 

The increase, more than three times higher than the district's 2.2% cap, would help fund a nearly $14 million spending plan for the coming school year. The budget proposal includes no cuts and would restore the district's prekindergarten program for 3-year-olds, which the district did away with last year. Doelger estimated the program would cost about $100,000 for a dozen students.

Health insurance costs have seen a double-digit spike and contractual salaries are expected to go up by $600,000. In the past six years, Doelger said the district has cut four positions out of a staff of about 50.

Meanwhile, he said, the 165-student district has made great strides in raising its academic performance.

Shelter Island had been on the state’s improvement list beginning in 2018-19 but was restored to good standing in 2022-23. In 2023-24, its high school’s Advanced Placement program won "platinum" honor from the College Board, which sponsors AP courses.

Doelger said his district hopes to lower the levy increase before the budget is finalized but, he argued, “We're not trying to do anything fancy here. We're just trying to get our pre-K-3 program back. We're trying to maintain the quality of education that we currently have here with our students but really also trying to do that with as minimal as an increase as possible.”

'Unusual situation'

The Uniondale school district faces an "unprecedented" fiscal challenge, school officials said.

In past years, the district had received sizable state aid increases. In 2024-25, the district received nearly $5 million more in state aid compared to the year before. Then in 2025-26, it saw a $9.6 million bump in aid.

Under the budget advanced by Gov. Kathy Hochul, the district is set to receive the minimum 1% increase in foundation aid, which translates to about $900,000. At the same time, officials said, they are expecting “significant increases” in their expenses.

The district's tax cap for next school year has been set at -0.3% largely due to a rise in building aid, or state reimbursements for capital projects, according to the district. In data submitted to the state Comptroller’s office, Uniondale had estimated its tax levy increase to be 2.5% but later in a statement said the proposed hike would be 2%.

The district did not make anyone available for an interview. In a statement from Superintendent Monique Darrisaw-Akil, the district cited higher insurance, energy and transportation costs, as well as in services to educate students in special education and those with limited English language skills.

The district's enrollment dropped by more than 200 students from 2024-25 to the current school year, but the district's statement said that change “does not automatically eliminate class sections” and staff cannot be “reduced simply because enrollment shifts across schools or grade levels.”

To maintain the current level of programming and services, the district said its revenue in 2026-27 “must increase commensurate with our costs.” Otherwise, they would be looking at “draconian cuts,” according to the statement.

“That is simply unacceptable,” the statement read in part. “The only other option is to pierce the tax cap to ensure our programs and services remain intact.”

Officials said they are “guardedly optimistic that our Uniondale community will understand the unusual situation the district is in and will continue to support our schools and our students.”

Negative cap 

Like Uniondale, the 1,700-student Bayport-Blue Point school district is also facing a negative tax levy cap.

The district's cap for 2026-27 is set at -0.76%, primarily driven by a $1.4 million debt coming off the books, officials said. The district is seeking to raise its levy by up to 2.99%, though officials hope the number will ultimately be closer to the Island average of 2.5%.

Superintendent Timothy Hearney said his staff is looking for “efficiencies,” including attrition, which he said would not affect class size or extracurricular activities.

“Our plan as of right now would allow us to maintain all of our current programs,” Hearney said.

This is the first time Bayport-Blue Point has considered exceeding its limit since tax caps were instituted in 2012. Hearney noted that in some years, the district has proposed a levy increase lower than the allowable cap.

“We've been … trying to be very conscientious of one, meeting all of our needs of our students but two, at the same [time] being very conscious of our tax base, our community,” he said.

Rising costs

Lynbrook, a district with about 2,700 students, is seeking a 1.97% tax levy increase. Its cap is 0.95%.

District officials said employee health care costs are going up, and general insurance is expected to jump 11%. The district said it is also set to pay more for BOCES tuition and for transportation.

In addition, employee salaries are projected to go up more than $2 million and benefits would rise nearly $1 million. The district's proposed spending plan also includes funding to hire one additional teacher and to retain two teachers who were hired after the current year's budget was adopted.

Superintendent Paul Lynch said the district in the past has not sought to raise taxes as much as it could have. In 2023-24, for example, Lynch said the district’s cap was 4.74% but officials opted for a 2.6% increase.

Lynch said the district last year worked to stabilize the budget by offering retirement incentives and through other forms of attrition. The district reduced 15 positions, saving $1.8 million, he said.

The superintendent said the district's current budget proposal is "responsible." 

“We have an incredibly supportive community, and every year when we put out a responsible budget, they overwhelmingly support that budget,” he said.