This report briefly describes that the average allowable levy growth is 3 percent, rather than the 2 percent voters may be expecting.
The number of school districts overriding the tax cap has declined each year. In general, school districts’ decisions to override the tax cap were based, at least in part, on necessity. When examining the relationship between fiscal stress and tax cap overrides, we found that fiscally stressed school districts were nearly three times more likely to override the tax cap when compared to school districts that were not designated as stressed.
Between a tax levy limit that restricts local funding, State and federal aid cuts and a lack of other sources of funding, schools are facing fiscal challenges that are not likely to dissipate in the short term.
School districts across New York state, including New York City, face a potential funding gap of at least $2 billion when the American Recovery and Reinvestment Act funding runs out in 2011-12 unless federal aid is renewed or replaced by State aid. | [view a district-by-district breakdown of ARRA funding - .xls]
New Yorkers plan to spend up to $192 million for back-to-school supplies this year, with approximately 64 percent of this spending ($123 million) driven by school supply lists from their children’s schools.
As local governments address fiscal challenges posed by stagnant or declining State and local revenues, increased demand for social services and growing fixed costs, local government officials should be mindful of the impact that budget decisions can have on the cost of borrowing. These costs can increase significantly if prudent budget decisions are not made within the context of multiyear capital planning.
County sales tax collections (not including New York City) declined by 5.9 percent in 2009 compared to 2008. Fifty-three of 57 counties had sales tax declines. | [view County Sales Tax Collections 2007-2009 - Including New York City - pdf]
The Patient Protection & Affordable Care Act (ACA) was signed into law on March 23, 2010. As a result, the eligibility requirements for Medicaid have expanded and New York State (State) will now see an increased enrollment in the program as of January 2014. To assist with the additional costs associated with the increased coverage, the Federal government is providing additional Medicaid relief funding. This funding is anticipated to start in January 2014.
Issued to: County, City, Town and Village Chief Fiscal Officers, School District and BOCES Business Officials.
This bulletin highlights accounting and budgeting changes for counties who share their own sales tax revenues with other local governments within their boundaries. These changes are necessitated by the recent Statements from the Governmental Accounting Standards Board (GASB).
