What happens if a majority of the residents vote no on the proposed budget?
If the proposed budget is defeated at the polls on May 17, state law gives the school board three options. Board members may:
= Put the same budget before the voters a second time,
= Put a revised budget before the voters, or
= Adopt a contingent budget.
If residents vote down a budget a second time, the board must adopt a contingent budget. According to the State Education Department’s interpretation of the current statutes governing contingent budgets, BKW — like other districts throughout the state — would need to limit its spending increase, excluding certain budget categories, to no more than 120 percent of the Consumer Price Index.
A contingent budget is calculated by removing all non-contingent appropriations from the proposed budget. Under state law, BKW would be required to cut another $53,073 from the budget by eliminating community use of building and grounds, certain equipment, salary adjustments for non-union personnel, non-essential maintenance, consultant services and food program subsidy.
How would the proposed budget affect local property taxes?
The proposed budget calls for a 3.51 percent tax levy increase, or $364,183. The school tax levy — defined as the amount of money the school must raise from taxes to balance the budget — is just one aspect of property taxes. Other factors that will affect the tax bill you receive in September include:
= Your town’s equalization rate. These rates represent the state’s judgment of how closely assessed values in your town match the “true market value” of the properties. It is a ratio of a municipality’s total assessed value to its market value. In the case of school taxes, the equalization rate helps determine how the school tax levy is shared among a district’s municipalities. A municipality that has an equalization rate of 100 percent means that municipality is assessing property at full market value. Thus, property owners are paying the most accurate share of that municipality’s tax burden, including school taxes. Equalization rates for the district’s seven towns are sent to the school district by late August.
= Your town’s tax rate. This is defined as the amount of taxes you pay per $1,000 of your home’s assessed value. Tax rates are calculated using equalization rates (set by the state) and assessments (determined by your town assessor).
How has the STAR program changed this year?
New York State’s School Tax Relief (STAR) Program, which provides property tax exemptions (also known as homestead exemptions) for New York homeowners, established an income limitation this year. Basic STAR is available to anyone who owns and lives in his or her own home and earns less than $500,000. Enhanced STAR is available to senior homeowners whose incomes do not exceed $79,050.
The Basic STAR Exemption will exempt the following amounts of the assessed value of homes from school taxes in the towns listed below:
Berne: $19,910
Knox: $18,310
Middleburgh: $19,800
New Scotland: $30,190
Rensselaerville: $17,410
Westerlo: $270
Wright: $22,200
The Enhanced STAR Exemption will exempt the following amounts of the assessed value of homes from school taxes in the towns listed below:
Berne: $39,890
Knox: $36,670
Middleburgh: $39,670
New Scotland: $60,480
Rensselaerville: $34,870
Westerlo: $550
Wright: $44,470
For more information or to apply for a STAR exemption, contact your town’s assessor.
For more Budget Q&A, see our Community Forum Q&A and FAQ: Budget
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