Districts will not be allowed to increase the tax levy to the extent necessary to fund items of expenditure excluded from the tax cap. Expenditures are no longer subject to the overall contingent budget spending cap.
If a clerical or technical error is made and the levy exceeds the maximum allowed by law, the excess amount collected should be placed in reserve. Excess amount and any interest earned will be used to offset the tax levy in the following year.
We have reported that Cooperstown, Cherry Valley-Springfield and Milford Central schools are trying to stay below or at the cap for at least this year. We commend them for doing this when things look so bleak. However, we know there will be a time, probably sooner rather than later, that the districts will have to eventually exceed the cap. Schools just cannot keep going if things keep going the way they are as local school officials have said they are facing “financial insolvency.”