- By Dan Veaner
- Opinions
We know the vote on the Lansing school budget will be delayed this summer, which may mean delayed tax bills. We know that New York State is poised to renege on state aid to schools that the districts qualify for. We know that the New York State budget was to attempt to reduce the state's $6 billion deficit before the coronavirus hit, and now all bets are off. Some Tompkins County municipalities are estimating up to 20% reduced revenue this year.
The other thing we know is that loss of work hours and layoffs are making it difficult for people to buy essentials, let alone pay their property taxes when the time comes. And that is going to mean more loss of income to school districts and municipalities. School officials started making cautious noises about potential cuts next year, and municipal officials are also talking about what projects can be cancelled or delayed. Many taxpayers can expect help from the federal government, with couples eligible for two $1,200 payments, but for most people $2,400 isn't even going to cover their Lansing school taxes.
Last week Village of Lansing Mayor Donald Hartill told the Board of Trustees that the Village has enough cash in its reserves to keep the Village running for a year, and the Lansing School District and the Town of Lansing also have reserves that will help them survive. But there are so many consequences of putting the State and the country on hold, and those consequences have consequences that have consequences... it's like two mirrors facing each other, causing the images to appear to disappear into infinity.
For example, lets say the school district decides to make a bunch of cuts and fund the 2020-21 budget with much larger than usual reserves funding. Will that mean that the tax cap law will prevent them from raising the levy back to normal in the following year? Because the amount the tax cap calculation allows schools and municipalities to raise the tax levies each year very much depends on the levy they exacted this year.
The New York State Education Department (NYSED) suspended the Regents exam requirement for this year. But that required them to issue new requirements for graduating with a Regents degree. The school superintendent worried Monday that pass-fail grades imposed by the state for the end of the school year may impact college admissions for current sophomores and juniors.
It seems that every consequence requires more adjustments to allow things we take for granted to happen at all. The weather may be warming up, but COVID-19 is a snowball growing larger and larger as it continues to roll downhill.
Most immediate for property taxpayers is going to be the school tax bills. School districts are being pinched from both ends, with taxpayers seriously strapped for cash on one end, and the State hinting at cuts in aid through out the coming school year. Even if taxes are reduced (they never are, are they?) what about late fines for property owners who simply can't pay? Does COVID-19 mean they lose their homes?
Taxing authorities need to be very clear about how such circumstances will be handled, and the sooner, the better. Because in an already super-stressed country, the closer that tax bill comes, the more stressed people will be. Knowing what is going to happen always helps reduce stress. Taxing authority officials need to look ahead through the several layers of consequences and be very clear about what property taxpayers can expect.
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