School taxes across LI set to sharply rise

School taxes are heading sharply higher on thousands of homes and businesses across Long Island, even as state political leaders debate the need for capping tax rates.

A month away from May 17 budget votes, the prospect of taxes rising at an accelerated pace is widespread throughout the Island. Some of the biggest proposed tax increases are coming from low-wealth school districts in central and southern Suffolk County that are trying to compensate for recent record cuts in state financial aid.

A growing tax burden

Center Moriches, for example, is calling for a 6.62 percent increase in next year's tax levy, compared with this year's 3.72 percent raise. Seaford seeks an 8.99 percent increase next year, up from 5.97 percent. William Floyd wants a 12.47 percent raise, up from 8.23 percent.

Meanwhile, proposed spending increases in those districts range from 2.55 percent in Center Moriches to 4.05 percent in William Floyd, rising far slower than taxes -- another trend in districts that have submitted budgets to voters.

Calls for higher tax rates are dividing many communities. Parents and students often view such increases as essential to preserving sports teams, elective courses and other favorite programs, while other residents worry about the impact on home values and pocketbooks.

"There are so many houses in the $300,000 range that are paying taxes of $10,000 or more, not only here in Center Moriches but all over southern Brookhaven," said Martha O'Brien, an associate real-estate broker who recently aired her views at a school board meeting. "People can't afford spending another paycheck on taxes."

What's more, even in some districts where homeowners face hefty tax increases, those raises are coupled with the potential for larger class sizes, fewer sports programs and teacher layoffs. Music and art programs and elective courses are threatened, school officials say.

In most cases, whether residents vote "yes" or "no" on school budgets will have little effect on their property taxes. In large part, this is because most proposed spending increases already are close to limits that kick in when budgets are voted down.

Few choices left

This year, school officials say they have little choice but to raise taxes. Gov. Andrew M. Cuomo and Albany lawmakers this month cut a record $206 million from the Island's school aid as part of efforts to erase a state budget deficit. The cuts fell especially hard on low-wealth districts -- those with little taxable income and property -- because they depend heavily on state assistance.

Middle Country, for instance, took a $9.3-million hit in operating aid -- an amount equivalent to 4.46 percent of its entire budget this year.

"I cried for three days when I saw that figure," said Karen Lessler, president of Middle Country's school board, who teaches in another district.

Last week, Middle Country's board adopted a $211.3-million budget proposal that raises spending only 1.65 percent but increases taxes 6.68 percent.

Like other districts, Middle Country also is curbing costs by canceling elective courses with small enrollments. Bryan Mueller, 18, a senior at the district's Centereach High School with an interest in technology, says recent cancellations have included several advanced computer classes.

"We're not just losing courses -- we're losing great teachers," Mueller said.

Central Islip, meanwhile, has decided to lay off more than 85 school employees including teachers -- a move that the district says could drive up some class sizes to 40 or 45 students. Sachem is cutting half its middle-school sports. Huntington is slashing full-day kindergarten classes to half-day sessions. For the Island as a whole, school spending and tax figures will not be released until next week. A preliminary analysis by Joseph Dragone, an assistant superintendent in Roslyn and one of the region's most experienced school business officials, finds that costs generally are on the rise.

Varying impact

Dragone's calculations include figures from 67 school districts -- half the region's total, divided about equally between Nassau and Suffolk counties. Those figures show that next year's proposed spending would rise 2.67 percent on average in the districts counted, while tax levies would increase 4.19 percent. The current year's figures for the entire Island in those categories are 2.36 percent and 3.41 percent, respectively.

However, Dragone notes variations between districts. Those with above-average taxable wealth tend to raise rates less than other districts because they are less dependent on state aid. Another factor is whether unions cooperate in granting pay concessions.

Dragone's own district is proposing a 1.93 percent tax increase, while Long Beach is not raising taxes.

Current law sets no limits on the size of district tax levies, which are total dollars raised by property taxes. If voters next month reject a school budget, under state law that district must hold spending increases next year to 1.92 percent. Many district budgets already are near -- or even below -- that spending limit.

Next year also an issue

Voters face another dilemma: A growing number of districts are signaling that they intend to boost taxes higher next year if budgets are defeated at the polls than if budgets are approved.

Sayville, for example, said it will raise taxes 7.39 percent next year if its budget is approved, but 9.18 percent if the budget fails. That's because the district has agreed to use $2.5 million in cash reserves to curb taxes if voters say "yes." If they vote "no," the district plans to withhold its reserves.

Taxpayer advocates such as Fred Gorman, an organizer of a regional civic-action group called Long Islanders for Educational Reform, complain that such tactics amount to "legalized blackmail." School officials contend that withholding reserves is legitimate because it serves as a hedge against the effects of potential tax caps, future cuts in school aid or increases in state-mandated costs such as pensions.

Sayville's superintendent, Walter Schartner, defends higher tax rates, saying they reflect the will of residents. At a February forum, many parents and students pleaded for preservation of school bands, orchestras and other programs, even if that meant paying more taxes. But residents weren't unanimous on the subject -- some felt teachers should help save money by agreeing to extended salary concessions.

Schartner, like many colleagues, also points a finger at Albany's aid cuts.

"They're shifting the cost to taxpayers, that's really what they're doing," he said.

The governor, on the other hand, has criticized districts' high spending -- especially on superintendents' salaries. And last week, Cuomo renewed his push for a statewide cap on increases in property taxes.

The GOP-controlled State Senate already has approved a 2 percent cap that would take effect in the 2012-13 school year. The Assembly's Democratic majority has not yet taken action, though some members think 3 percent or 4 percent might be more reasonable. One major concern is that a 2 percent limit might make it impossible for low-wealth districts to ever make up for aid losses.

In any case, some sort of property-tax cap seems increasingly likely.

"The public is demanding it, and that makes it pretty much inevitable," said Assemb. Robert Sweeney (D-Lindenhurst), a senior Democrat from Suffolk County.