Part of the Problem with NY School Taxes...

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Part of the problem with our school taxes in NY
byE.J. McMahon of the Empire Center for New York State Policy. ejm@empirecenter.org
Will Andrew Cuomo defy the special interests that have long controlled Al bany -- starting with the public-sector labor unions whose political arm endorsed him -- to deliver the kind of change he promised in his successful campaign for governor of New York?

The answer is simple: He has no choice. The Empire State's fiscal problems are simply too massive to permit further dithering, buck-passing and corner-cutting.

Stuck: With a $9 billion budget hole next year, Gov.-elect Cuomo can't dodge bitter battles. Throughout his campaign, Cuomo explicitly and repeatedly promised to hold the line on spending and broad-based taxes. The new numbers mean he can't keep that promise unless the first budget of his tenure cuts spending below current levels.

-- will be property taxes.
In an audacious move, Cuomo began his campaign last May by calling for a broad limit on property taxes in New York. Moving beyond the 4 percent maximum cap on school taxes proposed two years ago by Gov. Paterson, Cuomo proposed a maximum cap of 2 percent on the annual growth in property-tax levies by all government units -- schools, counties, cities, towns, villages and special districts.

This cap could only be overridden by a 60 percent "supermajority" of residents. It would allow for limited, extraordinary exceptions, like capital expenses previously approved by voters. But it would otherwise contain no loopholes.

But Cuomo can't credibly propose a tax cap in isolation. It must be coupled with changes in collective-bargaining provisions that now make it hard for local governments and school districts to control their labor costs.

The changes should start with repeal of the Triborough amendment, which guarantees seniority "step" increases in pay even after a labor contract has expired. Above all, they must include fundamental reform of public pensions, which are about to skyrocket to levels never before seen in New York.



During much of the 44 consecutive years they controlled the upper house before 2009, the Republicans institutionally allied themselves with public-sector labor unions, especially the New York State United Teachers. During previous fiscal crises, they joined Assembly Democrats to enact major tax and spending increases.

"In many ways, we lost our way in the past, and we got the message and we're going to correct the direction of the state," Sen. Dean Skelos, the GOP leader, told The Post's Fred Dicker yesterday.

Cuomo needs to remind Skelos of that quote, early and often. Skelos & Co., for their part, need to hold Cuomo's feet to the fire.



E.J. McMahon is a senior fellow with the Manhattan Institute's Empire Center for New York State Policy. ejm@empirecenter.org



Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/now_comes_the_real_fight_rgGLkJzbfV8PlLiZ3MpIbJ#ixzz14LM1MfIB