| As New York State and the nation recover from the fiscal crisis of 2008, school districts across New York State have had the additional burden of the 2011 tax cap legislation. The legislation, commonly referred to as the two percent tax cap, has given districts a clear limitation on tax levies they may ask the public to consider without exceeding a necessary 60% supermajority vote. In an effort to understand the implications of the tax cap on school districts, the research analyzed the finances of the 10 school districts in North Hempstead, New York. These districts, which are known for their exemplary public schools, also represent some of the wealthiest villages and towns within the state. This region was chosen specifically to show the impact of the tax cap on wealthy schools as a clarion call for all schools throughout the state. The research used forecasting tools and weighting methods to create models of fiscal and political tolerance. Those tolerance models were then used to forecast the window of time that the districts studied had before they would need to attempt to pierce the tax cap. The research then analyzed and forecast the success or failure of those districts' ability to gain public support to pierce the tax cap. The study indicates that within five years, five of the 10 districts studied will attempt to pierce the cap with mixed results. |
