Research Note

What Does This Years Tax Cap

Mean for Schools?

nysasbo.org

In late January, we all learned the official tax cap for the upcoming year (2016-17), will be .12 percent or effectively
a zero percent increase. What does this mean for school districts, particularly in different regions of the state and
with varying degrees of wealth?
To answer these questions, NYSASBO examined tax levy per pupil and found that the increase allowed varies
dramatically around the state and for school districts grouped by need/resource capacity. NYSASBO also
compared the amount that could be raised by a flat 2% tax cap and the amount raised by the .12 percent
increase.
Figure 1 shows that:
Tax levy per pupil varies dramatically between high need and low need districts. Low need districts were able to
raise $21,911 per pupil in 2015-16, while high need districts were only able to raise $8,081 per pupil locally.
The .12 percent tax cap for 2016-17 means high need districts will be able to raise an additional $10 per student
while low need districts will be able to raise $27 per student.

Figure 1. Tax Levy Per Student for 2015-16 and Maximum Allowable Levy for 2016-17
Under the Tax Cap by Need/Resource Capacity Category
$25,000
$20,000

2015-16
2016-17

$21,911

$15,000
$10,000

$12,848
$8,081

$21,938

$12,863

$8,091

$5,000
$0
High Need

Average Need

Low Need

Figure 2 shows that regionally, Hudson and Long Island school districts enjoy the largest tax levy per student
at $18, 287 and $18,875. Districts in the North Country region had the smallest tax levy per pupil in 2015-16 at
$6,826, followed closely by districts in the Mohawk Valley, Western and Southern Tier regions. Tax levies can
increase for 2016-17 by miniscule amounts.

Figure 2. Tax Levy Per Student for 2015-16 and Maximum Allowable Levy for 2016-17
Under the Tax Cap by Region
$20,000
$18,000
$16,000

$18,875 $18,897

$18,287 $18,309

2015-16
2016-17

$14,000
$12,000

$10,987 $11,000
$9,513

$10,000

$9,525

$10,055 $10,067
$8,689
$7,069

$8,000

$7,077

$6,826

$8,699

$8,554

$8,564

$6,834

$6,000
$4,000
$2,000
$0

Capital

Central

Finger Lakes

Hudson

Mohawk
Valley

North
Country

Long Island Southern Tier

Western

Millions

Figure 3. Comparison of Local Revenue Raised by .12% vs. 2% Tax Cap

$180
$160
$140
$120
$100
$80
$60
$40
$20
$0

$167.9

.12% Increase
2% Increase
$111.4

$32.0
$1.9
Capital

$17.9
$1.1
Central

$27.5
$1.6
Finger Lakes

$6.7
Hudson

$0.5

$8.8

Mohawk
Valley

$0.5

$7.8

North
Country

$10.1

$16.3
$1.0

Long Island Southern Tier

$25.7
$1.5
Western

Statewide independent school districts can raise an additional $415 million with a 2 percent Tax Cap and $25
million with the existing .12 percent Tax Cap, a difference of $390 million. Long Island and Hudson school districts
would benefit the most under a flat 2 percent Tax Cap. Funds lost by not having a 2 percent cap range from $7.3
million in the North Country to $157.8 million in districts on Long Island.
State Aid to school districts is intended to make up for differences in school district local fiscal capacity. See the
NYSASBO State Aid Proposal at http://www.nysasbo.org/reports

Contact:
Michael J. Borges, Executive Director
New York State Association of School Business Officials (NYSASBO)
453 New Karner Road, Albany, NY 12205 518-434-2281 www.nysasbo.org