Dr Agruso Explains The Tax Cap Calculation

Kings Park Superintendent of Schools Dr. Susan AgrusoPreparing a school budget is not easy.  The budget must meet the academic needs of the students as well as comply with state mandates and existing contracts. In addition, escalating pension costs, capital expenditures and a two percent tax cap must be factored in. It is a herculean task. 

Kings Park School District’s Superintendent, Dr. Susan Agruso is up to the task. Since joining the Kings Park School District in 2008 Dr. Agruso has developed a keen understanding of the Kings Park Community.  She is a strong advocate for the Kings Park School District and can quickly rattle off a stream of accomplishments by Kings Park students.  She also understands the reality of today’s tough economic times.   

Dr. Agruso knows that getting people to understand the budget and this year’s two percent tax cap is paramount for gaining budget approval.

Speaking to Rotarians on Tuesday, March 20, Dr. Agruso pointed out important points about the property tax cap. The cap sets the limit of annual growth to 2 percent or the rate of inflation, whichever is lower. There is a mechanism for exceeding the 2 percent cap. If a district presents a budget exceeding the cap, 60 percent of voters need to approve the budget.  If a budget fails two times the district must freeze property tax levies.  The tax cap calculation includes exceptions, which may make the levy higher. 

What goes into budget levy calculation? Start with tax levy from 2012 which you multiply by the tax base growth factor (Tax Base Growth Factor is assigned to the district by the state comptroller). Add 2012 PILOTs (payments in Lieu of taxes) subtract tort exemptions and 2012 Capital Tax levy.  That number is multiplied by the allowable growth factor (2 percent).  From this total you subtract 2013 PILOTs and add 2013 Tort Exemptions and 2013 Capital Tax Levy and 2013 Pension Exemptions. This total is the Maximum Allowable 2013 Tax Levy.

Dr. Agruso is committed to presenting a budget that does not exceed the tax cap.  There is a lot that goes into holding the line to 2 percent.  “Everything is examined to find efficiencies including a review of our programs, class size, and transportation. We are constantly being challenged to do more with less.” 

Despite the challenges of budgeting,  Dr. Agrusso remains optimistic about the students and the district. “We have wonderful students who work hard and excel in so many areas.  This is a great district.”

Tuesday, May 15, 2012 is the School Budget Vote.