Officials: NY Senate will pass Cuomo tax cap

ALBANY - The State Senate plans to pass Gov. Andrew M. Cuomo's property-tax cap bill Monday, which would kick in for the 2012-13 fiscal year and limit annual increases to a maximum of 2 percent, officials said Sunday.

The action could strengthen Cuomo's hand in getting the State Assembly to agree to a tax cap - a major plank of the governor's first-year agenda - and gives him momentum as he prepares to unveil his state budget plan Tuesday.

"Long Island families need and deserve relief from high property taxes and the Senate Republicans are working with the governor and others to put a cap in place as soon as possible," said Scott Reif, a spokesman for Senate Majority Leader Dean Skelos (R-Rockville Centre). "We expect to take up and pass Governor Cuomo's property-tax program [Monday] and send the legislation to the Assembly."

Assembly Speaker Sheldon Silver (D-Manhattan) has said he supports the tax cap idea, but has stopped short of providing specifics. Silver also has said he believes it's equally important to extend rent-control regulations in New York City, saying it's conceptually the same as capping property taxes.

A Cuomo spokesman, Josh Vlasto, said: "Passing a property tax cap is a top priority for Governor Cuomo so homeowners across the state can finally see some relief."

Cuomo's plan would limit property tax increases to 2 percent or the rate of inflation - now about 1.5 percent - whichever is less. The cap could be overridden only by a vote of the local governing board and a 60 percent majority in a local referendum. The only exceptions would be payments for capital construction and legal settlements.

However, critics, including many school officials, have said that such a cap - without a more flexible way to suspend it - could trigger program cuts and teacher reductions.

The Republican-led Senate's fast adoption of Cuomo's plan would be a victory for the governor because legislative leaders typically like to bargain for weeks or months to add or subtract key components.

Skelos had said previously that he supported Cuomo's idea. But until Sunday, it was not certain whether Skelos would push for the Senate to adopt its own version or follow the governor's lead.

Some legislators, including Sen. Timothy Kennedy (D-Buffalo), want any tax cap plan to include a "circuit breaker" formula to directly tie property taxes to the adjusted annual income of homeowners, to provide some relief to those with low incomes. Kennedy has promised to draft such a bill. But Cuomo has said he strongly opposes any circuit breaker.

Cuomo and legislators must act to close a roughly $10 billion state deficit. The governor has indicated that reductions to Medicaid, school aid and the state workforce will be part of his proposal.

State aid to schools was projected to increase about $3 billion this year, just to keep up with obligations from previous years. If the governor insists on no spending rise, schools and unions will view that as a cut.

Health-care activists and legislators also are expecting up to $3 billion in Medicaid cuts. And a chunk of the remaining deficit could be made up by the governor's expected call for thousands of state-worker layoffs, closing some state prisons and youth-detention centers, and a consolidation of facilities management services.