Assemblyman Dave McDonough (R,C,I – Merrick) today warned property taxpayers in Nassau County that school property taxes could increase nearly 7.7% in Fiscal Year 2011-12 unless a property tax cap is passed this year. The reason for this is that the federal funding given to New York through the American Recovery and Reinvestment Act (ARRA) is scheduled to end after Fiscal Year 2010-11. The ARRA monies, first given to New York in fiscal 2009-10, were used to fill in state cuts to school districts caused by the budget gap. “Since being sworn in, Governor Paterson has routinely said that New York needs to institute a property tax cap, but he has failed to follow through those words with action,” said Assemblyman McDonough. “Now is the time for the governor to push for a property tax cap and a state spending cap, in order to prevent more Nassau County residents from being forced out of their homes because the state can’t control its spending habits. Despite knowing that ARRA funding was only for two years, the state budget spent beyond our means, leaving the taxpayers once again to foot the bill for the lack of fiscal restraint.” According to Comptroller DiNapoli, as a result of ARRA funding last year, school district tax levies only increased 2.1% compared with a 6.2% average in the previous 10 years. Without federal funding, school districts will face a budget shortfall of $2 billion. That budget gap would equate to an average property tax increase of 7.7%. School districts already will be receiving less ARRA funding in 2010-11 due to the fact that money allocated for this year was used by the governor to close his $3 billion budget gap in his Deficit Reduction Plan (DRP). For more information on the comptroller’s report, please visit
http://www.osc.state.ny.us/press/arra-snapshot-121709.pdf.