PROPOSITION 1: REMOVE DEBT LIMIT ON SMALL CITY SCHOOL DISTRICTS AMENDMENT

BACKGROUND:

Voters statewide will be asked to amend the state constitution, Section 4 of Article VIII, to eliminate the limit on the amount of debt that small school districts will be allowed to amass though borrowing. The measure was approved by the State Legislature in two consecutive sessions, which is required for a constitutional amendment to be put to voters.

ISSUES:

The amendment states no county, city, town or village shall be allowed to contract indebtedness for any purpose or in any manner which, including existing indebtedness, shall exceed an amount equal to the following percentages of the average full valuation of taxable real estate of such county, city, town or village:

(a) 10% for the county of Nassau, for county purposes;

(b) 7% for any county, other than the county of Nassau, for county purposes;

(c) 10% for the city of New York, for city purposes;

(d) 9% for any city, other than the city of New York, having 125,000 or more inhabitants according to the latest federal census, for city purposes;

(e) 7% for any city having less than 125,000 inhabitants according to the latest federal census, for city purposes;

(f) 7% for any town, for town purposes; and

(g) 7% for any village for village purposes.

This measure would eliminate the constitutional debt limit for small city school districts. The state constitution defines a small city school district as any school district partly or fully within a city with less than 125,000 inhabitants.

A “yes” vote supports this amendment to eliminate the constitutional debt limit for small city school districts, which currently amounts to 5% of the average full value of the past five years’ property tax rolls within the district.

A “no” vote opposes this amendment, thereby keeping the constitutional debt limit for small city school districts, which can be surpassed if 60% of voters approve a measure to do so.