This meeting was held in partnership with LIFER (Long Islanders for Educational Reform www.lischooltax.com). The meeting was moderated by Peter Kohler, VP of Editorial Services for Cablevision’s Channel 12 News. Our featured speakers were Newsday columnist Ray Keating, Sachem School District Superintendent Dr. Charles Murphy, Suffolk County Legislator Lynn Nowick, Nassau County Commissioner of Consumer Affairs and Conservative Party Chairman Roger Bogsted and Ed McMahon of the Manhattan Institute’s Empire Center for NYS Policy.

The first speaker was Ray Keating. He discussed the problem with the current system of school funding and cited several myths. He stated that the money school districts spend are "our money" and that schools have received increased state yet continue to spend with no cap on spending. He stated that from 1994 to 2004, per pupil spending increased 65% in Suffolk and 117% in Nassau. He advised that consolidation of school districts would just create a bigger government monopoly and an income tax would be worse as spending would just increase. He recommended school choice or competition where the state gives the state aid to parents not schools. 

The Superintendent of Sachem schools, Dr. Charles Murphy made it clear that districts need to understand that the money that is spent is not their money but rather the people's money. He stated that the only good budget is a passed budget. He then talked about how he was able to deliver a 0% tax budget working together with his school board. He stated that his district created a "long term financial vision" which was posted for public review with the goal of a lower budget. He stated that last years budget increase was 1.5% and this year was under 0%. He stated that it was extremely important for the board and superintendent to have a good working relationship and for the board to provide the superintendent with the tools to do the job such as the ability to cut unnecessary programs.

He talked about taking the following steps; balance class size with affordability, look for fat and cut it, implement 0 based budgeting, cut wasteful spending, and use extra state aid to deliver tax relief rather then go on a spending spree. He advised districts to maximize state aid by applying for all available funds and use consultants. He indicated that 74% of his budget is people so it is important to plan for negotiations. He stated that unions do not need the support of schools boards and superintendents as the latter represent the community.

It was his opinion that "smart boards" are new technology that doesn't work. He recommended that districts negotiate large bulk purchases to save money and refinance capital bonds when better rates are available. It also indicated that it was important to monitor and review special education expenses.

Ed McMahon of the Manhattan Institute’s Empire Center for NYS Policy stated that New York State spent 4.5 billion on the STAR program since 1997. He stated that 10% of all of the revenue is from the state's income tax. He advised that by 2009-2010, it will rise to 6 billion. He advised that the combined cost for the new STAR money and school aid will be 11 billion. He cited the missing link as the failure to control spending and costs. He stated that when school districts are subsidized, it just facilitates more spending increases. He referred to subsidizing education in New York as temporary tax stabilization or a tax shift. He advised that over the last ten years, state aid went up 50% (not including NYC) and property values rose 50%. He stated that the more state aid you give school districts, the more their costs go up.

He stated that the missing link is the failure to control-cap the growth of property tax levies not spending. He discussed the success of this approach in Massachusetts, Prop 2.5 which caps tax levies at 4% or the rate on inflation. He advised that New Jersey just enacted a 4% cap and Connecticut a 3% cap. He pointed out that if a higher increase is necessary, voters can over ride the imposed caps.  

Suffolk County Legislator Lynn Nowick (R, 13th LD) was the former tax receiver of Smithtown and co-chaired the Suffolk County Homeowners Tax Reform Commission which addressed property taxes and how schools are funded in Suffolk County. She indicated that the state needs to increase school funding which must be balanced and eliminate unfunded mandates. She pointed to the costs such as hiring outside auditors at $50,000 and the cost of testing resulting from the No Child Left Behind legislation. She recommended that the state increase the income level of the state circuit breaker program (a tax credit to low income property owners) which is capped at $18,000. She discussed the proposal to enact an income tax to fund schools and advised that the commission did not recommend it. She then discussed problems with the income tax such as businesses which under report their income. She did recommend the use of video lottery terminals so that the money raised can go to the Suffolk STAR program.

Nassau County Commissioner of Consumer Affairs and Conservative Party Chairman Roger Bogsted discussed a recent political poll conducted in the town of Hempstead. He advised that the number one issue with voters is taxes and government spending at a whopping 64%. He advised that the 2nd issue of concern to voters was affordable housing which came in at only 4%.

He discussed the power of the teachers union, New York State United Teachers (NYSUT) which he referred to as a special interest group. He made it clear that he was not against teachers as his wife is a teacher only special interests. He stated that more money has been spent on education but there is no accountability. He advised that a legislative bill to give tax credits for donations for educational scholarships was blocked by the NYSUT. He talked about how the unions get billions for smaller classes and more teachers which deliver more union dues. He stated that the union fought against and blocked flexible work rules.

He cited the following steps that need to be taken to address the problem of high school taxes; only one budget vote with a cap of 3-6% or if the budget is defeated, it would be frozen at the prior year's level, holding school board budget votes in November during the general election, eliminate the Triborough Agreement, enact renewable tenure with ten year intervals and provide a 50% tax credit for those who donate money for scholarships.