Two Percent Tax Cap is Biggest Change to Budget

According to Sachem school district officials, the most significant budget change this year is the new two percent tax levy cap, which was discussed during Wednesday's board of education work session at Samoset.

Under the new law, a school budget that requires a tax levy above the cap must be approved by a supermajority of at least 60 percent of the district residents participating in the annual budget vote. A budgeted tax increase within the limit will continue to require approval of at least a simple majority of voters, greater than 50 percent.

The basic cap of up to two percent is subject to exclusions or modifications, according to Sachem, including, the growth factor in the taxable property value, capital costs, pension contribution increases that exceed two percentage points and tort settlements of awards whose costs exceed five percent of the tax levy.

“It’s based on the latest information we have from the [state education department],” said Bruce Singer, Sachem’s Assistant Superintendent for Business. “We’re given guidance and suggestions.”

This year, Sachem's state aid increase is $6.4 million over the 2011-12 budgeted amount.

According to Singer, school districts may not adopt a budget that requires a tax levy that exceeds the prior year’s levy by more than 2 percent or rate of inflation, whichever is less, unless the voters approve the budget by super majority (60 percent).

For the 2012-13 school year, there is a $10.9 million change in expenses in Sachem, with $6 million for salaries, $2 million for BOCES special education and private tuition and $1 million for teachers’ retirement.

Sachem will be hosting a number of informational meetings throughout the next two months for taxpayers and parents to learn more about this tax cap and other numbers surrounding the budget. .