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The REAL Impact of the Governor’s Budget Proposals

A comprehensive analysis of the Governor's budget proposals and their impact on Rockland County taxpayers, including unfunded mandates, austerity budgets, and state aid cuts.

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The REAL Impact of the Governor’s Budget Proposals

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  1. The REAL Impact of the Governor’s Budget Proposals Impact on the taxpayers of Rockland, based on the school budget proposals sent by Governor Paterson to NYS Legislators in January 2009 Rockland County School Boards Association, January 2009

  2. Rockland County School Boards Association Taxpayer Analyses • January 2007: analysis of the cost of selected unfunded mandates to Rockland County taxpayers • January 2008: analysis of the rate of increase in austerity budgets of the Rockland County public school districts as compared to the rate of increase in state aid from 2002-2007 • January 2009: costs of Governor Paterson’s latest budget proposal to Rockland taxpayers Rockland County School Boards Association, January 2009

  3. In January 2007, we concluded that the cost of Mandates and Non-Reimbursed Requirements* to Rockland Taxpayers came to a total of: $170,272,398 which represented 27.5% of the taxpayer portion of the County’s Public School Budget *Unfunded mandates and requirements included: audit costs; teacher mentors; Automatic electronic defibrillators; SAVE legislation; required special education services; required transportation services; added burden of WICKS’ legislation; required contributions to State Teachers’ and Employees’ Retirement Systems; NCLB testing, scoring, and teacher training costs. Rockland County School Boards Association, January 2009

  4. In January 2008, we demonstrated our fiscal responsibility, showing that the difference between actual budgets and austerity budgets in the 2007-2008 school year was Less than 0.5% Rockland County School Boards Association, January 2009

  5. Further, we showed that between 2002 and 2007, total Rockland schools’ austerity budgets rose by 35.7%, while total Rockland state aid increased by only 8.9%. Total Rockland State Aid In millions of $$ Rockland County School Boards Association, January 2009

  6. While actual state aid dollars increased, state aid, as a percent of budget, had decreased significantly: 16.6% in 2002-2003 to 13.3% in 2007-2008 Rockland County School Boards Association, January 2009

  7. leaving a state aid gap for Rockland Taxpayers in 2007-2008 of$760,600,257 $877,463,192 Total cost of austerity budgets for Rockland Public Schools, 2007-2008 $116,862,935 Total state aid to Rockland Schools , 2007-2008 Rockland County School Boards Association, January 2009

  8. Parameters for the 2009 Analysis Governor Paterson’s 2009 budget proposes significant cuts in state aid to school districts, and proposes that school districts pay 15% of preschool special education costs. This is yet another UNFUNDED MANDATE! Rockland County School Boards Association, January 2009

  9. Our 2009 analysis assumes that School Districts should receive a state aid increase that equals or exceeds the Consumer Price Index. This year’s CPI is 3.8%. Whether or not you accept CPI as the school aid increase, it is our contention that there should be some additional aid from the state.

  10. Governor’s Proposed Cuts in State Aid Total proposed State Aid cuts for Rockland: $13,900,528 Rockland County School Boards Association, January 2009

  11. Total proposed State Aid cuts for Rockland: $13,900,528

  12. Dollar amount of the 15% Share of Preschool Special Education Total Rockland, 15% of Preschool Special Ed: $4,225,560 Rockland County School Boards Association, January 2009

  13. Total for Rockland, 15% of Preschool Special Education: $4,225,560

  14. A note about Preschool Special Education • Classification into preschool special education is determined on the basis of criteria set by United States IDEA law. • These criteria are designed to recognize the important role of early intervention and are not at school districts’ discretion. • Further, these criteria (developmental vs. instructional)differ between preschoolers and elementary school students, thus districts often declassify youth as they enter kindergarten, based on these differing criteria. Rockland County School Boards Association, January 2009

  15. Dollar amount of 3.8% CPI increases in the cost of doing business Total dollar amount of 3.8% CPI increase $34,842,142 Rockland County School Boards Association, January 2009

  16. Total for Rockland, dollar amount of a 3.8% CPI increase: $34,842,142

  17. Dollar Amount of additional taxes required in 2009-2010 (over the 2008-2009 tax levy) to cover the costs of CPI, state aid cuts, and 15% of preschool special education Total additional tax levy for Rockland County: $52,968,230 Rockland County School Boards Association, January 2009

  18. Total for Rockland, dollar amount of increased tax levy over 2008-2009 needed: $52,968,230

  19. Percentage Tax Increases for Rockland Taxpayers, as a result of these additional costs Rockland County School Boards Association, January 2009

  20. These increases in tax rates to Rockland taxpayers do notinclude several additional changes that are occurring in 2008, which will impact on tax rates, such as: • Reduced funding for teachers’ centers • Reduced funding for NCLB-required teacher mentors • Reduced STAR funding Rockland County School Boards Association, January 2009

  21. In short, the Governor’s budget proposal essentially “robs from Peter to pay Peter”. • That is, it takes away from school districts and transfers that burden to property taxpayers. • Education Cuts by the state place a significant upward pressure on the property tax even if an austerity budget is adopted.. Rockland County School Boards Association, January 2009

  22. In Conclusion: Through cuts in aid and new unfunded mandates, the Governor’s budget imposes a significant tax increase on the property taxpayers of Rockland County. The state aid cuts and new unfunded mandate alone add from 2% to 4% tax increases across Rockland districts. When CPI is part of the calculation on property tax increases, the cost to Rockland Taxpayers is as real as it is significant. The tax increase due to these factors is a whopping : 6% - 10%

  23. We ask Legislators to join us in capping the burden on property taxpayers by: • Not imposing any more unfunded mandates. • Not cutting education funding. • Increasing funding to education by the yearly CPI.

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