Tuesday, February 28, 2012

Bailing Out From A Huge Budget Deficit ...


< ====   NEW POLL

Will The Greece Board of Education
Opt To Exceed The 2% Tax Cap?


The cap is not absolute. School budgets can exceed the cap if approved by at least 60 percent of school district voters. Tax caps for counties, cities, towns, villages and special districts can be overridden by a vote of at least 60 percent of the local governing bodies.

The annual cap in your community will seldom be exactly two percent. It could be lower if the rate of inflation has been below two percent, which was the case in several recent years. However, as explained in the following pages, the law also includes several exceptions and allowances that can make the cap higher. These factors will vary from year to year and will differ in each taxing jurisdiction.

A simple majority of voters will now have the power to block any tax increase in independent school districts. Districts that fail to win voter approval for their proposed budgets after two   tries must freeze their property tax levies.
  

6 comments:

Anonymous said...

Or raise the assessment?

Anonymous said...

There is no way this board will consider putting forth budget to the voters that exceeds the cap. They have enough trouble getting 50% of the voters to approve a normal budget. They would never get 60% to approve a budget above the cap.

Anonymous said...

If they sell a building for $4.5 million (+/-) they got it made for this year. Maybe do the same next year. So they're set for two years, right?

Anonymous said...

5:17 has it right. The district will probably keep the budget under the 2% cap and then work with the town to raise assessments so it will appear the B of E is doing its job. I have seen this happen several times over the last 10 years or so.

Anonymous said...

The town can not raise assessments in an effort to circumvent the 2% cap.
That is expressly forbidden. The only way the tax levy can be increased is by the addition of new construction or physical expansion of the taxable property in the district.
The 2% tax cap is a cap on the levy, not on tax rate. if they collected $100 last year, they can collect $102 this year.
There are some exemptions, of course. (Rapid increase in pension costs are exempted)

SCATS said...

To 10:58AM ~~ It's Greece where following rules/laws/policies is never a priority ;) Nothing would surprise me.