Local Residents Not Convinced Tax Cap Will Help

Long Islanders pay some of the highest property taxes in the nation, and Babylon Village residents in particular report some of the highest bills around.

But a new state bill approved late last month promises to make it harder for those bills to increase drastically from one year to the next. A tax cap law got the nod from Albany, restricting allowed increases to 2 percent or to the inflation rate, depending on which is lower.

While many homeowners felt vindicated by the Governor Cuomo-led effort, others are worried about the impact on local schools and whether it will have the intended effect.

Donna Noesi, an elementary school teacher who lives in Babylon , understands homeowner frustrations but thinks the reductions in spending need to be carefully chosen to avoid negatively impacting students.

"In my district [not Babylon] we took a zero percent pay increase for next year. We also need to look into pension reform and having people pay a larger percentage of their health benefits."

Although Noesi saod the tax cap seems like a simple solution, in reality, it could have unforeseen consequences.

"The problem with the tax cap is that fixed costs like fuel, and pensions and medical have to get paid, and little will be left over for programs for children. The result will be that teachers will have to be let go and class sizes will go up."

Individual school districts and local governments can increase budgets above the tax cap with a 60 percent or higher approval from a public vote.

The law goes into effect for 2012 and is valid until 2016. Babylon Village residents approved the latest school budget, which, with a 2.86 percent hike, is higher than the permitted increases under the new law. The budget passed by a two to one margin and that may mean future potential votes to overturn the tax cap could have a good chance of passing.

Jack Boyd, a Babylon Village homeowner, thinks the legislation is a good idea, but is skeptical that the cap would have any lasting impact.

"I can’t help but be reminded of Congressional balanced budget laws, you know the ones that legislators pass to protect the electorate from [themselves] and then proceed to ignore year after year."

West Babylon's increase for the 2011-2012 school year was also higher than the allowed cap, coming in at 6.46 percent.

Town of Babylon residents pay the highest effective tax rate in Suffolk County, according to a May 2011 report by the Empire Center for New York State Policy. The report states Babylon property taxes average $26.35 per $1,000 of property value, compared to a county median of $18.60 and a statewide median of $27.43.

Babylon school district officials have disputed the report's findings, stating that comparing tax rates was misleading, and pointed out that the budget increase was one of the lowest on Long Island.