East Hampton School Districts Cope With Near-Zero State Tax Cap

This year school districts in East Hampton Town—and across the state—are facing the lowest-ever cap on the tax levy increase with the near-zero amount of 0.12 percent, based on inflation, before exemptions are taken into account.

Due to this financial strain, administrators at the Springs, Amagansett and East Hampton school districts have not ruled out the possibility of asking for the permission of voters to pierce the state cap. Meanwhile, officials at the Wainscott and Montauk school districts have said they do not plan to try to pierce the cap.

Each district was required to fill out by March 1 a state form asking whether the district intends to pierce the cap.

Springs School District Interim Business Administrator Carl Fraser announced at the district’s first budget workshop on Monday night that with last year’s tax levy at $24,453,200, it has been determined that the tax levy change will be $50,180 to stay under the cap.

Mr. Fraser said that the district’s goals for next year—maintaining a well-grounded K-8 educational program, a class size of 25 and less, current staffing and staying committed to expansion of tech-supported instruction—“cannot be accomplished with a $50,180 increase in total taxes,” which is what the tax cap allows. The maximum allowable tax levy for 2016-17 would be $24,503,380 to stay under the cap.

Mr. Fraser introduced a preliminary 2016-17 budget proposal of $28,388,609, from which $860,248 would have to be shaved to meet the cap. If the budget were not reduced by that figure, there would be a 3.72-percent tax levy increase, which would exceed the cap, which in Springs’s case, after exemptions, would be 0.21 percent.

The district now faces three options, he said: cut the budget overage, don’t cut anything or land somewhere in between.

If the $860,248 were cut, Mr. Fraser said, the tax levy would increase by only 0.21 percent. In that case the owner of a home assessed at $400,000, which Mr. Fraser said is low for the area, would face a tax increase of $9 a year.

However, if nothing is cut, homeowners in the $400,000 margin would see a $150 per year tax increase.

Springs School Board President Elizabeth Mendelman said that the rise in enrollment has proved to be a major factor in the budget increases, specifically at the East Hampton School District, whose high school educates Springs students on a tuition basis.

Mr. Fraser stressed that these were preliminary numbers and that other factors could come into play in the future such as state aid and district debts.

“We want additional opportunity to scrutinze our budget line by line to see where we can make cuts,” said Superintendent John Finello.

Amagansett School District Superintendent Eleanor Tritt said that due to the state’s low tax levy cap, Amagansett’s 2016-17 allowable increase is a mere 0.16 percent, or $14,000.

“Obviously, unless we drastically cut programs that’s not possible,” said Ms. Tritt last week. “We have our paid tuition for students in secondary grades, and tuition costs are higher than anticipated.”

Due to the small size of the school, Ms. Tritt said that it’s not possible to cut in areas such as personnel. Instead, the district will be looking to make cuts in capital improvement projects—essentially, areas that do not impact instruction, she said.

She said district officials plan to have more information and specific budget numbers at the next Board of Education meeting on March 22.

Although the East Hampton School District has already held two budget workshops, Assistant Superintendent of Business Isabel Madison said the district was not ready to release the preliminary budget numbers in their entirety. She said this is due to numerous factors including state aid and BOCES contracts that could impact the tax levy.

Referring to the March 1 deadline for a decision, Ms. Madison said it is “unfair that [the districts] have to give a commitment before the state gives commitment to us” in terms of aid.

However, she said the district is doing its best to not pierce the tax levy cap this year.

“If something comes unexpected, we will explain what the implications are,” said Ms. Madison.

Superintendent Stuart Rachlin said that he does not believe Wainscott will pierce the tax levy cap. Still, he said, it will be several weeks before the budget is finalized to be presented to the public.

Superintendent Jack Perna of the Montauk School District said that district officials are not planning to pierce the cap and do not believe they will have to.

“The district treasurer and I are confident we’ll be okay this year,” he said.

Mr. Perna said the school previously faced major cuts and just last year restored a number of programs it had previously eliminated to save money.

“Hopefully we’ll be able to keep everything,” said Mr. Perna.