To doubt everything, or, to believe everything, are two equally convenient solutions; both dispense with the necessity of reflection.
Henri Poincare

Sunday, May 22, 2011

Cuomo's Tax Cap - A Message To Local Assemblymen

In my opinion and the opinion of many of my colleagues and neighbors, the Governor’s fight for a tax cap is an attempt to pander for short-term popularity among the frustrated taxpayer and has no sound economic reasoning. Any legislator that jumps on the Governor’s bandwagon will trade the education of children and long-term economic health for short-term popularity. The tax cap will eventually lead to the implosion of public school systems across NY State and Long Island, and restrict the constitutional rights of children to receive a fundamentally sound public education. Please use sound judgment and vision in your positions in Albany. Be leaders in a time when true leadership is needed.
We can agree on one thing from the May 22nd Newsday Article, “Long Island property taxes are out of control.” Nonetheless, considering the income taxes generated from hard working Long Islanders are being thrown into school programs and other earmarked initiatives in Buffalo, Rochester, Syracuse, Yonkers and other upstate communities in the form of State aid and earmarked grants, the homeowners on LI are forced to pay a continually increasing percentage of all school expenses that support the education of the children within their respective communities. It is the cost increases related to unfunded state mandates, including the pension system, combined with the continued slashing of state aid revenue that is the driving force behind increased property taxes. In Elwood, we have had little choice; our contractual obligations have been offset by painful staff cuts. Rising costs related to our collective bargaining agreements have been managed through a choice of union concessions, or a reduction of employees. Therefore, Elwood’s property tax increases over the past two years are a direct result of the increase in mandated expenses and the continued cut in State aid – period.
The messages coming out of Albany have tried to deflect the responsibility of rising property taxes on local boards and central administrators. The most common criticisms made by the Governor have been bloated reserves and the excessive salaries of chief administrators. Notwithstanding a few exceptions, the first assertion is not a fair or accurate description of school finances, and the second is, frankly, absurd. These comments are made to raise the ire of the common taxpayer who is either uninformed or less sophisticated in their understanding of governmental accounting, the value of educational leadership, or the marketplace for key employees where the talent pool is very shallow.
In Elwood, we have been audited by the NYS Comptroller’s office and received a clean bill of financial health and deemed to have appropriate internal controls with no material flaws. Furthermore, the Comptroller’s office confirmed that the reserves maintained in Elwood were not large enough to be depleted to offset rising costs. Many, school districts on Long Island have a similar financial story.
The second contention related to the salaries of school superintendents is absurd. This is not a philosophical statement; rather, it is a mathematical and purely factual assessment. We can all agree that the cumulative cost of education on Long Island (based on approved school budgets) is $10.8 billion. The cumulative cost of all superintendents among the 124 LI school districts totals approximately $35 million. Therefore, the full cost of salaries, benefits and other compensation of superintendents on Long Island represents only 1/3rd of one percent of all school spending, or (0.0033), (0.3%). Eliminating superintendents may be a popular conversation among frustrated taxpayers, but as the numbers prove, would have a negligible effect on school property taxes. Furthermore, the salary cap that has been suggested in a bill introduced by the Governor would only save 1/7th of one percent, or (0.0014), (0.14%) of all school spending on Long Island. However, it would have a tremendous impact on a school district’s ability to have experienced leaders of education and school administration taking the helm of school districts across Long Island. In the end, the Governor’s bill would have a negligible effect on property taxes, but have a significantly negative impact on educational leadership and necessary school operations. Diminishing valued service without lowering costs significantly eludes logic and should not be supported by our legislators.
Lastly, the Governor’s barrage of advertising messages on television and radio continue to make claims that the tax cap will create jobs and save our economy. In light of the fact that nearly 2,000 Long Island teachers and other school employees will be out of work even though Long Islanders overwhelmingly approved school budgets, it becomes hard to believe that a tax cap can create more jobs than it eliminates. The reduction of teachers leads to diminished educational opportunities for children. Sound economic policy that has vision is one that improves the education of children. This leaves one significant question to answer: how can a tax cap that will continually eliminate thousands of jobs from educators and diminishes quality instruction and educational opportunities from children have a short-term or long-term positive effect on the economy of Long Island or New York State?
There are many legislative reforms that can reduce costs going forward while improving the quality of education in our public schools. Look to the goals of the “Race To The Top” initiative to guide you. Please do not embrace legislation that threatens the implosion of public education on Long Island. Please avoid giving into the mobocracy that has swayed the Governor and be true leaders in a time that leadership is needed to march us out of the doldrums of a bad economy without destroying the constitutional rights of children to have a sound public education.