School districts in New York will be dealing with a tax cap below 2% this year.
State Comptroller Thomas P. DiNapoli announced the property tax levy growth will be capped at 1.81% for school districts. It had been set at 2% the past two years.
“As the levy growth rate dips below 2 percent, school district and municipal officials need to be fiscally cautious and examine where they can limit spending to stay under the cap,” DiNapoli said. “Local governments will have to examine their budgets more closely to control expenses.”
While the cap is at 1.81%, each school district calculates its own cap, taking into account growth in the district and other factors. Individual tax caps may be below or above 1.81%.
The tax cap went into effect in 2012, and limits tax levy increases for school districts and local governments to 2% or the rate of inflation, whichever is lower. School districts can override the cap if 60% of voters approve it during the annual May budget vote.