www.taxcapnow.org Launched Today

ARCC President Todd Shimkus today was one of a handful of leaders from Long Island, to Rochester, to the Adirondacks to launch www.taxcapnow.org in an effort to support Governor Paterson's proposed tax cap in NY. Leading off the list of speakers at the press conference, Mr. Shimkus said:

"Each and every property tax increase is a pay cut for the working families employed by our members and also for the small business owners that are the lifeblood of our communities. The precarious tower of expenses - gas, groceries, health insurance - grows taller every day, and adding higher property taxes threatens to topple that tower, crushing the families who are already struggling to shoulder the most basic expenses. As a result, THIS is a critical or perhaps even an essential time for NY to pass a property tax cap.

On a personal note, I brought my family here in 2003, leaving Massachusetts, where I was born and raised. At first when I arrived in Glens Falls, I used to talk about coming here from “Tax-a-chusetts,” but let me tell you New York takes the cake when it comes to property taxes.

As you know, there was a taxpayer revolt in Massachusetts in the late 1970’s that resulted in the passage of Proposition 2 ½ in 1980. I’ve often wondered since relocating here why hasn’t there been a taxpayer revolt yet in NY because it is clear that there is even more reason for it here in this state.

In 1980, Massachusetts and New York were 1 and 2 in total combined state and local tax burdens. Massachusetts now ranks 28th. Do you know where NY ranks? We're still at the top nearly 3 decades later.

While living in Massachusetts, I had the honor of serving on a regional school board from 1986 to 1989 and on a Town Board from 1989 to 1993. In both elected positions, we were subject to Proposition 2 ½ - - a cap on the annual increase in our tax levy. I am here to tell you as a former school board member that a property tax cap is the right way to relieve our state’s crushing tax burden because it works to control government spending, but it can do so much more.

To those special interests who say it will hurt schools and claim they need more than a 4% annual increase, I say you’re missing a couple of key points. In Massachusetts, local school districts that could present to their voters a logical and compelling reason to override Proposition 2 ½ have been successful in generating revenue above the tax cap. 224 communities in Massachusetts have passed overrides since 1990 including cities like Worcester, Springfield, and Holyoke - - showing that even poorer school districts can muster voter support to spend more than the cap.

Under the Governor’s property tax cap, local school districts in New York will also have the ability to override the cap if there are compelling reasons or projects that capture the imagination of the local community and its voters. So when someone suggests that a tax cap takes away the voice of voters or erodes local control, I laugh and suggest that they simply don’t know what they’re talking about.

I can assure you as well that a property tax cap also changes the mindset of local school boards, school administrators, parents and professional educators. For instance in Massachusetts, the local educational community was very interested and took an active role in many cases promoting economic growth. They did this in Massachusetts because one way to increase revenue above the cap is through generating new growth.

The Governor’s proposal would likewise offer local New York school districts the same incentive or a motivation to help stimulate economic development. Right now in NY, the local school boards, administrators and professional educators that I speak with all correctly state that they contribute to our economic growth by providing a quality education that helps to train our future workforce.

They’re correct, but they can do so much more and they will if they realize this is the best option for securing new revenue to support the programs offered to students in their districts. In Massachusetts, I saw grassroots efforts by school leaders and professional educators actively involved in Town Meetings, Planning Board and Zoning Board hearings for projects that diversified the tax base and generated new revenue. Right now the only people showing up at Planning and Zoning Board hearings are neighbors opposed to projects in their backyard.

One additional and perhaps obvious way for school districts to continue to provide an outstanding education to their community’s children even with a tax cap is to find ways to reduce overhead and management costs. For instance, the BOCES system in our region is a model for shared services that could be expanded to include a number of additional management functions now performed by each separate school district in our region. A tax cap in NY is just the stimulus we need to promote more efficient administration of school districts where the direct services to students are improved while the overhead costs are reduced by shared services and regional consolidation.

To repeat, working families and small business owners are under tremendous economic pressure right now and every property tax increase is a cut in pay. New York has a chance and perhaps an obligation to help by adopting the Governor’s property tax cap. And if this is the start of New York’s own taxpayer revolt, I am proud to be here today to launch this grassroots effort on behalf of our members and the thousands of families that they employ."