A little-known proposition will be on the ballot this year that could have a tremendous impact on some school districts in our region if it is approved by voters. New York Proposition 1 seeks to address debt limitation inequities imposed upon small city school districts, which are school districts that have fewer than 125,000 inhabitants according to the most recent federal census. If approved, the constitutional change would bring uniformity to debt limits for schools throughout the state. There are currently 57 small city school districts throughout the state. In Orange County three school districts, Newburgh, Middletown, and Port Jervis, are included in this designation. These three districts have different rules than the 15 others in the county when it comes to their finances. This measure is under consideration by voters due to an archaic provision in the state constitution that limits small city school districts’ debt level to 5 percent of their average full value of taxable real estate, except with approval by more than 60 percent of voters, the Board of Regents, and the State Comptroller. Rural and suburban districts are permitted a 10 percent limit that is instead set by local finance law. In addition to having a higher debt ceiling, rural and suburban districts are also permitted to deduct costs reimbursed through State Building Aid from their limit, which is not permitted for small city school districts. For years, these differences have put small city school districts at a disadvantage. This funding inequity has impacted students who attend small city school districts for no other reason than that the population level of their school district is within the boundaries of a small city zip code. This has resulted in disparities falling more heavily upon students from minority and economically disadvantaged backgrounds who attend these small city schools at higher rates. These tighter restrictions are a relic of a time prior to 1997 when small city school districts’ budgets followed vastly different rules than their rural and suburban counterparts, such as not needing voter approval for annual operating budgets. When they were first enacted, there was also no property tax cap. In years since, small city school district guidelines have been changed and they now have the same voter approval process and tax cap limitations as rural and suburban schools. The measure passed both the State Senate and Assembly by large margins in the last two legislatures. I was proud to vote “yes” in support of the repeal of this antiquated law as a member of the Senate and encourage voters to do the same when they head to the polls on November 7th. I strongly encourage you to vote “yes” for Proposition 1 and deliver equity to the students of our small city schools who have been unnecessarily disadvantaged for far too long.
