School Tax Defeat- Once is Not Enough

NASSAU COUNTY CIVIC ASSOCIATION, INC.

"The government is us, we are the government, you and I." Teddy Roosevelt

June 7, 2004

School Tax Defeat

Once is not enough

Nassau County residents spoke out against excessive taxation by voting down 46 out of 122 budgets last month. While many of the proposed increases averaged between seven and eight percent, the cumulative effect of annual school tax increases and recent property tax increases have exacted a heavy toll on Long Island homeowners. The message from taxpayers is clear, local school boards must reign in spending, look for efficiencies and reduce the burden of taxation.

Many administrators on Long Island earn on average over $200,000 in salary and benefits. Over twenty five percent of teachers earn over $100,000 per year. While it is important to provide salaries that will attract good teachers, it is equally important to consider the ability of the taxpayer to afford these salaries.

With the rising costs of health care benefits, school employees should be required to contribute a larger share of the cost. Employees in the private sector often contribute a third or more of the cost. Why can’t we ask the same of school employees?

In terms of time control, teachers are not subject to the same accountability of those in the private sector. While many teachers work hard and do a fine job, accountability of their time is a reasonable proposition. Instead of having several weeks off for winter, spring and summer recess, teachers should be required to provide remedial services in their districts or provide these services on a contract basis with other districts. This will increase the availability of tutors and will help increase test scores without an increase in costs.

The failure to require verifiable fiscal accountability is the basis of fiscal irregularities and embezzlement in the Roslyn School district. Many districts fail to disclose all budgeted expenditures and often engage in hiding money on other budget lines. The reason given is that the boards must hide the money in order not to tip their hand in salary negotiations with the unions. After the contracts are negotiated, the designated party, usually the superintendent transfers the money to cover salaries that were allocated to other budget lines. This is wrong. The contracts should be negotiated prior to the budget vote and the increases should be approved by the voters not hidden by the board. Is this open and honest government?

Most school boards use Generally Accepted Accounting Standards. While these standards are sufficient for other entities, they do not provide the same level of accountability as imposed on companies that trade on the stock market by the passage of the Sarbanes/ Oxley Act of 2002. This act requires that the CEO or CFO swear under the penalty of perjury that their financial statements are accurate. As school boards are considered local governments, the implementation of Government Accounting Standards Board principles or GASB will ensure stronger fiscal accountability

Due to the successful litigation brought by the Campaign for Fiscal Equity, the state was ordered to increase state aid to the city schools by July 30, 2004 or having the court impose its own plan. While Assembly Speaker Sheldon Silver and Senate Majority Leader Joe Bruno have both proposed increases to all school districts throughout the state in the billions, the majority of the aid would go to the New York City. There is a limit as to the level of aid the state can provide. Even with the increased state aid, many districts still proposed excessive budget increases.

Newsday has reported (June 7, 2004) that over a quarter of the school districts whose budgets were defeated have re-submitted the same budgets without change. By ignoring the message that voters have sent, the boards have shown their disdain and arrogance for the taxpayer. Based on the failure of these school districts to show that they are serious about spending, enacting efficiencies and fiscal accountability, we strongly urge the voters to vote NO on the re-votes. Once is not enough.