An extra billion? Hold the tax hike

Few institutions have been entrusted with as much power in our region as the Long Island school districts now being presented by Washington and Albany with a massive $1.27 billion boost in pandemic-era funding.

Educators vow these new dollars will allow funding for after-school tutoring, expanded summer schools and prekindergarten classes, which is all well and good. However, at the same time they receive this historic financial windfall, school districts must be subjected to rigorous, independent financial scrutiny, as well as audits and penalties, if they seek to hike taxes on incredulous property owners.

It is not an idle demand.

A recent Newsday report reveals that Long Island school districts have accumulated a record $2.61 billion in reserves, or "rainy day accounts," for the 2020-2021 school year. This amount, on average, represents nearly 20% of the schools’ projected annual spending. It is a documented reminder of just how much overtaxation occurs by LI schools, cloaked under the guise of benefiting our children’s education.

Representing some of the largest property taxpayers on Long Island, the Association for a Better Long Island (ABLI) has called on New York State to require school districts to utilize newly available financial and budgetary flexibility options that unlock their reserve funds, as well as use the new billions in state and federal aid, before proposing a tax hike.

That mandate would come at a time when Albany has recognized the pandemic-induced threat facing every government entity funded by the taxpayer. Last year, the state passed legislation, endorsed by Comptroller Thomas DiNapoli and signed into law by Gov. Andrew M. Cuomo, that gives financial and budgetary flexibility to local governments to provide critical services during the COVID-19 public health crisis.

Made up of three components, the law:

• extends the "rollover" period for bond anticipation notes issued in calendar years 2015 through 2021
• authorizes local governments and school districts to spend or temporarily transfer money in reserve funds for COVID-19 pandemic-related expenses
• permits the repayment of interfund advances made for COVID-19 pandemic-related expenses by the end of the next succeeding fiscal year or later, rather than the end of the current fiscal year.

Also, school districts were relieved of the restrictions placed on the various categories of reserve funds, thereby "unlocking" reserve funds to address budget shortfalls or additional costs as a result of COVD-19.

In addition to a mandate that schools use their reserve funds first, DiNapoli, as comptroller and New York State’s fiscal watchdog, ought to conduct an audit of the utilization of reserve funds within each Long Island school district to ensure that administrators are truly tapping these funds for our region’s rainiest of days, such as the COVID-19 pandemic.

Now that Albany has lifted restrictions placed on the various categories of reserve funds, and $1.27 billion is about to be deposited into their collective bank accounts, school boards need to dismiss even the passing thought of a tax increase to be borne by Long Island property owners. For once, it’s time for schools to first reach into their own pockets before those of Long Island residents.

Kyle Strober is the executive director of the Association for a Better Long Island.