No School Tax Benefit Slated for West Islip Residents

Despite a state audit released last week that commented three separate times that the District’s financial practices from 2017 through 2021 resulted in real property tax levies being higher than necessary, West Islip residents will not see any benefit from lower taxes.

Board President Anthony Tussie confirmed in a response to a resident dated July 29 that none of the fund balances or excess reserves related to the $18.6MM in surpluses over the course of 2017 through 2021 will be used to reduce the tax levy. Tussie’s response cited the Office of State Comptroller (OSC) guidance that recommends Districts be cautious when using one time revenues from excess fund balances against recurring expenses such as property taxes. While this recommendation is just that, a recommendation, the OSC could not prevent the Board from lowering taxes if the Board decided to. Furthermore the OSC’s audit report appears to be inconsistent with its own guidance as it states on page one that fund balances can be used to lower property taxes for the ensuing fiscal year and then again leaves the door open for lower property taxes in its recommendation number 5 that states to use excess funds to benefit residents in accordance with statutory requirements. The resident wrote to Tussie asking for the tax levy to be reduced by $6.2MM which is cited in the audit report as the increase in taxes over the four years of $18.6MM surpluses. The impact on reducing the tax levy by $6.2MM would still allow the District to retain $12.4MM while at the same time provide residents with a onetime reduction in school taxes of approximately 7%. Alternatively the $6.2MM could be placed in a reserve earmarked to offset future years’ tax increases. However the Board has no appetite to return money that it never needed and this decision coupled with the hardship for many residents that school taxes continue to increase above the tax rate increase shown in budget presentations due to the State’s continued reduction in the basic star exemption is disheartening.

Tussie’s response went on to say that $3.2MM in overfunded reserves will be moved to the second capital reserve that was approved by voters this past May and is targeted to improve facilities although the specifics have yet to be finalized. This approach, Tussie noted, is consistent with the OSC recommendation that uses a onetime benefit of an excess fund balance to pay a non-recurring expenditure such as a capital project.