New York State Comptroller Thomas P. DiNapoli last week announced that the state-imposed cap on tax levy increases for schools will be 1.23 percent this year, which heralds the start of public schools' budget discussions for the 2021-22 school year.
That figure is based on the national consumer price index, which measures economic inflation every year based on the cost of what is called a "basket of goods" — meaning people's basic necessities. The 1.23-percent increase is the lowest in six years and the second-lowest since the state tax cap was implemented 10 years ago.
"That doesn't sound reflective of what's actually going on," said Robert Hauser, the Bridgehampton School District superintendent. Saying that the cost of living is much higher on the East End than it is in other parts of the state and nation, he called it "unfair."
There are many unknowns because of Covid-19, school officials said this week. Plus, there is a second number that influences school taxes, called the "tax base growth factor," which allows an additional increase on top of the tax cap limit. The tax base growth factor varies from district to district because it is based on real estate growth and other year-to-year changes within their respective boundaries.
The tax cap is set at 2 percent or the consumer price index, whichever is lesser. It is possible for a district to override the limit, as Amagansett, Bridgehampton, and Wainscott have done in recent years, but it requires a supermajority of at least 60 percent voter approval on a school budget.
The limitations will have varying impacts on the districts here.
In the Montauk School District, for instance, "we are in a pretty healthy financial situation for this current school year. Along with every school that has reopened, we had some initial costs in order to keep our students safe, but otherwise we have saved in other areas, such as no sports or field trips," said Matthew Neuschwender, the Montauk treasurer.
But in Springs, which already has the highest tax rate of any district in East Hampton Town, it presents more difficulties relative to other districts. Debra Winter, the Springs superintendent, said it's too early to discuss the specifics, but added that the low tax cap "will definitely add to the challenges we face." The first public budget discussion in Springs is slated for Feb. 1.
Other school districts seem to fall somewhere in between.
"That 1.23 percent allowable levy growth factor, obviously that affects everybody," Tom Mager, Amagansett's treasurer, said this week. "It's not terrible. . . . I think we'll be able to stay within the tax cap providing that we aren't adding anything additional, but it's still way too early to tell."
The Amagansett School Board will take "a deep dive" into the budget starting at next week's school board meeting, Mr. Mager said. It is an online meeting Tuesday at 5 p.m., accessible by visiting aufsd.org. "I don't want to say we're behind schedule, but other things have taken priority. We haven't kept to our typical timetable, especially with the pandemic and the accident," he said, referring to the fatal hit-and-run crash that involved an Amagansett School family, covered elsewhere in today's Star.
In Bridgehampton, "the early planning challenges that I'm looking at are the costs increasing but only allowing an additional levy of about $200,000," said Jennifer Coggin, the business administrator. "Not knowing whether we're doing a Covid budget or a non-Covid budget, the costs are far above the allowable levy. The struggle is going to be how do we keep up with Covid and not break the tax cap?" Bridgehampton's first public budget discussion is planned for Wednesday at 6 p.m., virtually. A link will be at bridgehamptonschool.com.
"It's going to be tight. We think we're going to be fine, but it's going to be tight," said Adam Fine, the assistant superintendent at East Hampton. "Obviously the goal is not to touch anything programmatically that affects students, but what can we do around that? Where can we find savings?"
Jennifer Buscemi, Sag Harbor's business official, called the tax cap "very low" but declined to discuss the specifics. More information will be presented at Monday's online school board meeting, she said. It starts at 6:30 p.m., and a link can be found at sagharborschools.org.