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Mid Hudson Times, Wednesday, October 17, 2018
Town seeks alternative funding for education
By LAUREN BERG
The town of Newburgh town board passed a resolution
at the October 9 meeting requesting the reform of New
York State public education funding.
New York State currently relies on local property taxes
to provide the bulk of funding required for public schools.
It is the board’s opinion, as stated in the resolution, that
placing the burden of school taxes on property owners is
“the greatest financial hurdle faced by homeowners in
the State,” and believe it has caused many residents to
sell their properties and move out of New York.
However, most other states have found creative
alternatives. Many states fund public schools through
sales and state income taxes, as well as mortgage taxes
and excess profit taxes. Even New York City no longer
funds its public schools through property taxes.
The town’s resolution also makes mention of a recent
Supreme Court ruling that sales tax can be collected
from internet retailers even in states where they do
not have a physical presence. Adjusting state law to tax
these providers in New York would create an influx of
revenue, part of which the town board believes should
be earmarked for public education. According to Town
Supervisor Gil Piaquadio, these taxes could generate
the equivalent of nearly 25% of the state’s budget as
additional revenue. They hope, together with the voices
of other town resolutions being passed this month, that
their message will be heard in Albany.
“Responsibility for the education of our youth should
be more fairly and equitably distributed and not placed
on the backs of property owners,” the board writes.
They add that the two-percent tax cap law is proof that
the Governor, Senate and Assembly are aware of the
problem, even if in public they deny it. Governor Andrew
Cuomo took heat this past September for stating that
he believes people are moving out of upstate New York
because of the weather.
“People will make demographic choices about where
they want to live…some of them are climate-based,”
stated Cuomo. He added that the number of people
leaving is not as bad as it used to be. “Young people were
leaving because parents were saying, ‘You better leave.
There are no economic opportunities here.’ That is no
longer the case.”
City budget battle brewing
Continued from page 1
and the city council.
“This proposed budget is DOA, done on arrival,” said
Jacobson. “We have until the 26th to adopt a budget. I
think there are many things we can do. At this point we
need alternatives and I don’t think anyone here will vote
on the budget as proposed.”
The budget proposed by the city manager includes
raising the tax levy 3.35 percent bringing the total tax
levy to a 7.1 percent increase.
For many residents a raise in the tax levy is not possible
on their incomes. Countless members of the community
walked up to the mic. Among them was Dwayne Jordan
owner of Yenom Holdings LLC, a development company
in the City of Newburgh.
“I came here in 2014 and saw an opportunity for
growth,” said Jordan. “The taxes were high at the time
but I never thought they would go higher. The median
income of my tenants is $35,000, mostly single. They can’t
withstand tax hikes. There’s a human factor that no one
is looking at. I advocate for my tenants because they are
the customer and the people of the city of Newburgh.”
Jordan has held off on raising his rent for four years,
but last year he had to raise rent $25. The seemingly
small number hit his tenants hard. They cannot afford
a tax hike. If a tax increase does occur Jordan will have
to take his business outside of Newburgh. His consulting
partners are reluctant to invest in Newburgh because it
is too much of a risk.
“If the taxes went through I would look at other cities
to bring my business to,” said Jordan.
The meeting also shed light on the process for property
assessments in the city. Shay Sellars owner of FARE
Property LLC, is looking to relocate her main office
outside of Newburgh.
“I had trouble selling with the taxes, we had a lot of first
time home buyers and I could not guarantee anything for
these people,” said Sellars. “On the investment side the
idea of a tax increase scares leadership and it scares me.
My own business is looking to relocate with the increased
rates.”
Sellars next door neighbor Nadia Tarrs, on Montgomery
Street is a homeowner who invested her life’s savings into
her property. She was outraged when in two years her
taxes went from $14,000 to $22,000 a year.
“Raising taxes on homeowners will only add to the
city’s financial burden by stomping on the hopes of
newcomers and forcing people like me to leave,” said
Tarr. “My neighbors have the same exact footprint and
pay significantly less than me. There is a disparity and
the tax estimation system needs to be looked at.”
According to the City Assessor Joanne Majewski
homes are evaluated at 100 percent market value. This
is a choice made by the municipality when evaluating
the properties it owns. This decision to evaluate at 100
percent market value was made in 2008.
“We follow New York State property tax law and state
guidelines for property assessment. They say overall we
are at 100 percent of the market value,” said Majewski.
When evaluating properties Majewski says the city
takes into consideration many factors such as property
size, room count, and the condition of the building. To
account for the differences in property taxes for similar
sized homes the assessor’s office takes into account the
assessment done prior to March 1. If rebuilding is done
after March 1 the property taxes may not necessarily
reflect the current assessment of the property.
Majewski also looks at mass appraisals for the market
along with individual assessments of each home to come
up with a value. If an individual believes their home
is improperly assessed they can speak with Majewski
at City Hall or file a complaint by May 4, through the
assessment review board. Applications for complaints
are available on the City of Newburgh website or at City
Hall.
I n B rief
New Windsor spending
plan up by 8 percent
Spending in New Windsor’s preliminary town
spending budget is slated to go up 8 percent, with
tax bills increasing by 9.7 percent in the town’s
preliminary 2019 budget.
Unanimously, the town board Oct. 3 voted to
circumvent the state-mandated property cap tax
levy limit by a 5-0 vote.
The proposed $39.55 million budget would boost
spending by budget’s impact on daily life in town
which is clear in this detailed spending plan.
The comptroller’s office listed $530,3350 worth of
active proposals in the preliminary budget.
A public hearing on the new spending plan is
slated for Nov. 7 at 7 p.m. at New Windsor town hall.
Nov. 20 is the deadline for adopting the proposed
$39.55 million budget.
The spending plan would add $184.91 to the
property tax bill for a typical single-family home
assessed at $40,000.
The proposed tax levy for real property taxes is
proposed as $3,922,569.
Not all the spending choices have been made and
still were under review.
The town’s ambitious spending plan envisions
property taxes of $12,172,668 for highway
maintenance to keep streets in good repair.
The proposed budget reflects the heightened
actives of the New Windsor Police Department
under a new police chief and a Town Justice Court
whose fines and forfeit bail came to $955,000 in 2017.
Ambulance charges are $528,050, for the town
based New Windsor volunteer ambulance corps.
Salaries include $71,396 for the town clerk, and
$5,000 each of the four members of the town board
and $78,000 for the highway superintendent.
In the budget, metered water sales are expected to
be saving homeowners money and conserving water
for years ahead.
- Wayne Hall
School safety is topic of
district town hall meetings
The Newburgh Enlarged City School District is
scheduled to host two town hall meetings to discuss
safety. Details and topics of discussion are below.
The events are in observance of America’s Safe
Schools Week (October 21-27).
The meetings will take place on Wednesday, Oct.
24, 6:30 - 7:30 p.m. and again on Saturday, Oct 27
from 10 to 11:30 a.m. Both will occur at the Board of
Education Auditorium, 124 Grand Street, Newburgh.
Dr. Roberto Padilla, superintendent of schools
will discuss current safety measures in our schools
and on the horizon.
Mr. Joseph Grubman, new Director of Safety
and Security to present and answer questions.
A representative from a safety firm will present
about SMART Bond technology updates.