Tax-cap goal sets up Democrats' showdown

ALBANY -- Gov. Andrew M. Cuomo has staked his political capital on getting a property-tax cap enacted during the 2011 legislative session, setting up a potential battle with some fellow Democrats.

The debate raises the political stakes for Republicans, too, who generally support the idea of a cap but acknowledge the possibility of a backlash from municipalities and schools that will have to live with it.

Throw in the fact that Democrats -- especially Assembly Speaker Sheldon Silver (D-Manhattan) -- are all but insisting that any tax-cap bill go hand-in-hand with a renewal of New York City rent regulations, and many lawmakers say the issue is headed for a showdown in mid-June. That's when the rent laws expire, five days before the end of session.

"It's looking more and more like one of those things that come together at the end of session," said Assemb. Robert Sweeney (D-Lindenhurst). "Though everybody always denies it, it is likely to be part of one big package" of agreed-upon legislation.

Even if takes until the 11th hour, New Yorkers are counting on lawmakers not to come home empty-handed, Sweeney said.

"People have expectations that something is going to happen. So if we ended the session without doing it," Sweeney said with a pause, then a chuckle, "then, well, we'll hit the fan."

A recent Marist College poll said that New Yorkers overwhelmingly favor the idea of a tax cap, 69 percent to 26 percent.

Cuomo's proposal would limit property-tax increases to a maximum of 2 percent annually or the rate of inflation, now about 1.5 percent, whichever is less. The only exceptions that would not count against the cap would be payments for capital construction and legal settlements. The cap could be overridden only by a vote of the local governing board and a 60 percent majority in a local referendum.

"Why 60 percent? Because I want a proposal that skews in favor of the taxpayer for a change," Cuomo said last week at Onondaga Community College, near Syracuse, the first stop of the governor's statewide tour to promote his top three legislative priorities: a tax cap, tightening ethics laws and legalizing same-sex marriage.

Cuomo, who spent as much time on the tax cap as on the other two combined, portrayed the issue as his battle against the "political establishment."

"There's a lot of opposition to the tax cap," Cuomo said. "The political establishment is against it. The unions are against it. Local elected officials don't like it because it would handcuff the local elected officials to only a 2 percent increase."

He later posted a video on his government website urging New Yorkers to "Tell your representatives in Albany that enough is enough; pass the tax cap now or don't come home."

The Republican-led Senate has passed Cuomo's bill. The Assembly, with Democrats in the majority, has not even taken it up, but has promised to introduce its own version soon.

Assembly Democrats, concerned about the impact on less wealthy school districts, have discussed either raising the cap limit to 3 percent or 4 percent or adding more exemptions, such as pension costs. They've also floated the idea of putting an expiration date on the cap, guaranteeing that lawmakers would have to re-evaluate the issue in a few years. Silver said he's shared a Democratic proposal with the governor, but neither would discuss the specifics.

Senate Majority Leader Dean Skelos (R-Rockville Centre) says he supports Cuomo's proposal as written, but if the governor wants to soften the conditions, he'll review it.

State Sen. John Flanagan (R-East Northport) said the next step is for the Assembly to publicly put out its version of a tax cap. "So far, the Assembly's done nothing," Flanagan said. "They don't like the governor's proposal. Fine, put out your proposal. If they don't like a tax cap at all, then tell people you won't do it."

Sweeney, dean of the Suffolk County Democratic delegation, said he'd prefer to "bump up the [percentage] number" to give school districts more flexibility in meeting a cap, rather than add a large number of exemptions.

"If you go too far" on exemptions, Sweeney said, "then what good is a cap?"

His prediction: "In the end, we'll wind up with a modification of the governor's proposal."

THE TAX-CAP DEBATE

WHAT CUOMO SAYS

Limit property-tax increases to a maximum of 2 percent or the rate of inflation, whichever is less. Payments for capital construction and legal settlements would not count against the cap.

Override cap only by a vote of the local governing board and a 60 percent majority in a local referendum.

WHAT SENATE SAYS

Passed Cuomo's bill

WHAT ASSEMBLY DEMOCRATS SAY

Raise the cap limit or add more exemptions, such as health care costs.

Potentially put an expiration date on the cap.

-- YANCEY ROY