Daniel T. Connor
Superintendent

227 Main Street
Goshen, NY 10924
(845) 615-6720

District news

View the results of the Tax Levy Cap Quiz

January 12, 2012 - On December 6, in an attempt to address some important key points and help clear up misinformation, the district created a brief, 8-question online "quiz" for residents to test their knowledge about the new tax levy cap legislation.

As of January 8, 37 people had taken the quiz with an average quiz score of 71 percent. The results for each individual question are posted below:

QUESTION 1

True or false: Under the new tax levy cap law, my tax bill will only increase by 2%.

Answer: False

Quiz Results: 92% correct answers, 8% incorrect answers

Explanation: The tax cap law does NOT cap an individual’s school tax bill. Increases in individual tax bills are often different from increases in the tax levy due to a variety of factors outside a school district’s control, and this will continue to be true.

QUESTION 2

True or False: The new law will limit the district’s tax levy increase by 2%

Answer: False

Quiz Results: 71% correct; 29% incorrect

Explanation: The new law has been referred to as a “2 percent tax cap,” but the law itself does NOT limit how much the tax levy can actually increase under a proposed budget. The law does, however, require at least 60 percent voter approval for a school budget if the proposed levy increase exceeds a certain amount. That amount, called the “tax levy limit,” will be calculated by each district according to a formula outlined in the law.

QUESTION 3

Multiple Choice: Why is the "tax levy limit" important?

A. The “tax levy limit” is the highest allowable tax levy, before exemptions, that a school district can propose and only need the approval of a simple majority of voters (more than 50 percent).

B. The "tax levy limit" is a 2% increase from last year - the same for all public school districts.

C. A school district cannot propose an amount higher than the "tax levy limit."

Answer: A

Quiz Results: 79% correct; 21% incorrect

Explanation: The "tax levy limit" is different for each school district based on an 8-part formula as dictated by the Legislation. Though much publicized, the “lesser of 2 percent or the rate of inflation (CPI)” is only one factor in a school district’s “tax levy limit.” The new law does not in fact restrict any proposed tax levy increase to two percent.
Furthermore, a school district can propose an amount higher than the "tax levy limit" -- a super majority of more than 60% of voter approval would be necessary. Essentially, the “tax levy limit” sets a threshold requiring districts to obtain a higher level of community support for a proposed tax levy above a certain amount.

QUESTION 4

True or false: When calculating the "tax levy limit," the new law takes into account some expenses that are outside the district's control.

Answer: True

Quiz Results: 66% correct; 34% incorrect

Explanation: There are certain expenses such as some pension costs, voter-approved local capital expenditures and court orders that are exempt from a district’s "tax levy limit" calculation. However, tax certioraris are not exempt.
These exemptions are then added to the "tax levy limit" to find a district's "maximum allowable levy."

As a result, a districts final tax levy could be greater than its "tax levy limit" yet still be considered within that limit, under the new law.

QUESTION 5

Multiple Choice: Do district residents still vote on the school budget?

A. Yes, on March 1.

B. Yes, on the third Tuesday in May.

C. No, there are no budget votes under the new law.

Answer: B

Quiz Results: 79% correct; 21% incorrect

Explanation: Residents will continue to vote on a proposed budget on the third Tuesday in May -- May 15, 2012. The vote will be held from 6 a.m. to 9 p.m. in the Board of Education in the Main Street Building.

On March 1, a school district must submit its unique “tax levy limit” to the state.

QUESTION 6

True or False: The Board of Education's options include: Proposing a budget requiring a tax levy before exemptions at or below the “tax levy limit," requiring a simple majority of 50% voter approval; or proposing a budget requiring a tax levy before exemptions above the “tax levy limit,” requiring a super majority of 60% voter approval. This also requires a statement on the ballot indicating the required tax levy before exemptions exceeds the “tax levy limit.”

Answer: True

Quiz Results: 84% correct; 16% incorrect

Explanation: Before exemptions, a tax levy that is at or below the "tax levy limit" requires a simple majority, while a tax levy that exceeds the "tax levy limit" requires a super majority. By law, a proposed tax levy that is above the "tax levy limit" must include a statement on the ballot on May 15.

Please note that if a tax levy exceeds the "tax levy limit" after exemptions, then only a simple majority is needed.

QUESTION 7:

Multiple Choice: What happens if the budget is voted down twice by district residents, and is forced to adopt a contingency budget?

A. As in previous years, a contingency budget would mean that the district could not increase spending by more than 120 percent of the average change in Consumer Price Index (CPI) or 4 percent, whichever is lower.

B. Under the new law, a district that adopts a contingency budget can levy a tax no greater than that of the prior budget year – which amounts to a 0 percent increase.

C. There will be a 2 percent increase in the tax levy.

Answer: B

Quiz Results: 55% correct; 45% incorrect

Explanation: Certain existing contingency budget requirements will remain in effect that prohibit spending in specific areas including community use of buildings, certain salary increases and new equipment purchases.

The most significant effect of a contingency budget is that a district cannot increase its current tax levy by any amount. This results in a zero percent increase from the previous year.

QUESTION 8

True or false: After a school district calculates its “tax levy limit,” it then adds exemptions into that amount to find its "maximum allowable levy." Adding these exemptions may cause the "maximum allowable levy" to be higher than a district's "tax levy limit" and would require 60 percent of votes to pass the budget.

Answer: False

Quiz Results: 32% correct; 68% incorrect

Explanation: A super majority of 60 percent of voters is required to pass the budget ONLY when the tax levy exceeds the district’s "tax levy limit" BEFORE exemptions, such as some pension costs, voter-approved local capital expenditures and court orders.

Learn more
To learn more about the tax levy cap law, or to take the tax levy cap quiz, visit the district's Tax Levy Cap information page.