Budget News in the News
Tax cap in place, state must now provide mandate relief
It may have just been a coincidence that a group of town, county, city and school district officials met in Albany last week, just one day after the Times Union reported data from state Comptroller Thomas DiNapoli showing widespread compliance with the new tax cap. But it was a revealing coincidence.
Because the officials reminded everyone that the state, after imposing the 2 percent cap to stop the explosion of property taxes, still hasn’t given those subject to it what they need to stay within it, and what they were promised: mandate relief.
DiNapoli’s data are preliminary because municipal budget season isn’t over, but they indicate that around 85 percent of the governments, school districts and special districts in the state intend to comply with the cap. That means only 15 percent have either already, or expect to, override the cap, something that requires a 60 percent vote of the board or legislative body. This indicates a good-faith effort to get spending under control and live within the cap (a feat that was made easier by Gov. Cuomo’s acceptance of a legislative amendment to exclude from the cap increases in pension costs above 2 percent).
But the cap, which Cuomo made a top priority, was supposed to be accompanied by mandate relief, which has yet to come. A mandate relief team appointed by the governor largely punted, leaving governments and school districts with huge Medicaid and special ed burdens.
These need to be addressed. So do other mandates, particularly those — such as the Triborough Amendment and binding arbitration for police and firefighters — that drive up personnel costs, the largest for schools and municipalities.
Many of those that will comply with the cap will be able to do it only by using more of their reserve funds than is wise. They need help from Albany to keep doing it in a sustainable way.