 |
| File Photo |
Current law says the schools can only sock away 4% of their annual operating plans into reserve funds—they’re looking to stash up to 10% for emergencies, particularly if the record amounts of state education aid they’ve been receiving dries up. Flush with Washington COVID relief cash, Gov. Kathy Hochul and her legislative colleagues went on record spending sprees in the last two budgets that amounted to healthy windfalls for the schools. With those levels of largesse not guaranteed, local officials want to hedge their bets.
Most of the state's school districts kept tax increases right around the Albany-mandated 2% cap, except for one district, William Floyd, which gave residents an eye-popping 17% decrease. Similar tax breaks could have been given in other districts depending on the relinquishing of their huge reserves. Better managed districts didn’t use the excess school aid to add more staff and programs that can’t be readily undone if funding fortunes change.
A recent review disclosed that 18 out of 124 Long Island districts, among the state’s wealthiest, closed the 2022-23 school year with reserves beyond legal limits, some 20% of what their residents approved during annual budget votes.
School costs make up the lion’s share of a property owner’s tax bill and is a key reason New York is near the top of the list of state’s losing population to more affordable places. The Empire State, which overburdened taxpayers have taken to call the “Vampire State,” leads the nation in charging its residents the highest levels of regulations, taxes and fees. It’s one of the most expensive states to conduct business and even Gov. Hochul’s own budget office admits that the level of state spending is not sustainable with deficits projected at $36 billion over the next three years.
The state itself is trying to crank up its rainy day funds to 15% since its leaders know the monsoon is coming. School officials want to do the same.