Educators: Property tax cap forces cuts

Nassau and Suffolk County lawmakers touted Saturday the passage of a 2 percent property cap Friday evening as critical to reducing the burden on Long Island homeowners, who pay among the highest rates in the nation.

"I applaud the legislature for heeding the call of overtaxed homeowners throughout our state," said Nassau County Executive Edward Mangano. "Capping property taxes is the first step in a long line of reforms needed to help homeowners, employers and local governments stay afloat during these tough economic times."

Suffolk County, meanwhile, has had a 4 percent property tax cap in place since 1989. "Suffolk County has shown that a government can live within a tax cap and I'm happy to see it extended throughout the state," said County Executive Steve Levy.

But many local school officials have said that a cap backs them into a corner.

Without an increase in state aid, schools will have little choice but to cut spending on services, said Wendell Chu, superintendent of East Islip schools.

"It will be a very difficult challenge for school districts to maintain quality education for their children," Chu said Saturday.

School taxes account for more than 60 percent of a typical property bill on Long Island.

Nassau has the highest median home property tax rate in the nation -- $8,478 -- according to an April analysis by the Tax Foundation, a nonpartisan Washington, D.C., group. Suffolk ranked 12th, with a median property tax of $7,010, the report found.

Assemb. Harvey Weisenberg (D-Long Beach) voted against the property tax cap, noting in a floor speech that the legislation would shortchange students for years to come.

"I don't see this as being successful," Weisenberg said. "I can't in good conscious vote for capping education."

But Sen. Jack Martins (R-Mineola) said the cap was necessary to getting the local economy back on track.

"Time and again, people have told me that we have to provide property tax relief," Martins said. "The 2 percent tax serves as a reminder that we all have to show fiscal discipline."

"New Yorkers pay the highest property taxes in the country and they're simply tired of having their tax bills increase year after year," added Senate Majority Leader Dean Skelos (R-Rockville Centre).

The legislation limits property tax increases at 2 percent a year or the rate of inflation, whichever is lower. School districts can exceed the cap if 60 percent of those who vote approve while local governments would require the approval of 60 percent of its governing body.

The cap takes effect for the 2012 fiscal year and will sunset in 2016 unless rent regulations -- which were included as part of the omnibus legislation passed Friday -- are also extended.

Supporters of the property tax cap, however, said the legislation was immediately undermined by the passage of a bill that allows school districts, without a public vote, to borrow as much as a billion to pay for pension costs.

The borrowed funds would be excluded from the cap. Gov. Andrew M. Cuomo has signaled that he would veto the bill.

"This is an end-around the tax cap," said Assemb. Michael Fitzpatrick (R-Smithtown). "It is wrong. You don't borrow to cover pension costs."

With Ted Phillips

Other measures approved by the state Legislature on Friday:

Approved tuition increases for State University of New York schools. Full-time in-state students will see tuition bumps of $300 annually over the next five years at SUNY and CUNY campuses. State tuition is now $4,970 a semester. Community colleges will not be affected. The measure also includes a 10 percent tuition increase for out-of-state students and provides up to $140 million for capital spending at the four university centers, including Stony Brook.

Created an 11-member Mandate Relief Council to review the complaints of local governments and schools districts regarding unfunded mandates they deem burdensome, unsound or costly. A two-thirds vote of the council would be required to refer the regulations to the governor for possible modification or repeal. Petitioners can file appeals and the state comptroller would be required to issue a report on the cost and effect of unfunded mandates.

Extended rent control laws for more than 1 million New York City apartments for an additional four years. The ceiling for renters would increase from $2,000 per month to $2,500 while the tenant income level would rise from $175,000 to $200,000.

Authorized local governments and school districts to purchase information technology, communications hardware and software, and professional services through pre-approved contracts vetted by the federal government's primary purchasing agency, the General Services Administration.

Allows livery drivers to pick up passengers in the outer boroughs and parts of Upper Manhattan. Yellow taxis had previously held the exclusive right to pick-up street hails. New York City Mayor Michael Bloomberg plans to issue 30,000 permits to livery drivers at a cost of $1,500 apiece. The livery cabs would be painted a different color than the yellow taxis.

Authorizes counties to make child care subsidy payments electronically.