An analysis of the New York State Real Property Tax Cap's effect on Long Island public education

With the passage of the New York State 2% Property Tax Cap legislation, the ability of school districts to continue to generate revenue to support high-quality academic programs is in question. The purpose of the study is to determine how the New York State Property Tax Cap passed in 2011 affects education on Long Island. Factors such as student achievement, finance, and instruction are explored. The tax cap and its effect are analyzed through a theoretical framework of decision making and fiscal sustainability as developed by Griffiths (1959) and McDonald (2011). The works of Odden and Picus (2008) and Hines and Bishop (2006) are used to help develop the conceptual framework. The study draws on all school districts within Nassau and Suffolk Counties. Quantitative analysis utilizing descriptive statistics and correlation analysis are used to answer the research question. Data are derived from the New York State Report Card database and Masterfile worksheets. Subgroups, such as economically disadvantaged and limited English proficient student populations, are broken down to reflect the different learning environments that exist on Long Island. The results of the study show that educational resources are positively related to student achievement; although a statistically significant relationship does not exist. Districts serving economically disadvantaged and limited English proficient students received less funding and performed worse on standardized testing. The tax cap has not had a significant impact on the growth rate of expenditures for school districts. From 2008-09 to 201314, school districts increased revenues on average between 2-3% annually. Long Island school districts have not increased their "efficiency" as a result of the tax cap. There has been growth in the common branch average class size before and after the tax cap's implementation. The growth has been logarithmic, with the greatest increase in class size caused by the effects of the Great Recession.