State Senate OKs historic property tax cap

The State Senate Friday night passed a historic property tax cap after agreeing on measures to lower the burden of state mandates on local governments.

An Assembly vote was expected later Friday.

Under the bill, a top priority of Gov. Andrew M. Cuomo, local governments and school districts could raise property tax levies only by the lesser of 2 percent or the rate of inflation. Some expenditures are exempt, and the bill would create a procedure to override the cap.

The cap was included in an omnibus bill released late Friday afternoon. The general framework of the cap was agreed upon weeks ago, but wrangling over mandate relief had stalled the measure.

New York requires local governments and school districts to provide services, programs and follow regulations that require local spending. The bill would create a mandate relief council to which municipalities and districts could appeal. The council could review mandates and instruct the governor to modify or repeal agency rules, or to introduce legislation to make statutory changes, including repeal.

"To allow local governments to petition the state to review those state mandates . . . and appeal them is a great approach," said state Sen. Jack Martins (R-Mineola). "Ultimately, it's about protecting the taxpayer."

The bill also has specific measures to lower costs at the local level, including authorization of purchases of information technology and communication hardware through the federal government.

Martins said that the mandate relief items included in the bill were worth $125 million and represented a "first step."

But the bill did not go far enough, according to Mark LaVigne, deputy director for the New York Association of Counties, which wants the state to take over counties' share of Medicaid costs.

"It is disappointing that opportunities to enact meaningful mandate relief for counties were not leveraged as part of these historic actions taken in the Capitol today," LaVigne said.

Property tax cap and mandate relief were linked to renewal and expansion of rent control laws, which primarily affect New York City, where about 1 million apartments are subject to regulation.

The legislature on Friday night also was expected to OK tuition increases in the State University of New York system.

Full-time students would see tuition rise by $300 annually over the next five years. Community colleges are not affected. The measure also would provide up to $140 million for capital spending at the four university centers, including Stony Brook.

"For the first time in the history of the State University of New York, students and families will be able to properly plan for the cost of a college education in a predictable manner," said Cuomo spokesman Josh Vlasto, noting periodic and dramatic tuition spikes of the past.