How would my taxes be affected?
This table shows the estimated tax impact of the proposed budget based on an assessed home value of $100,000. To determine the annual tax difference based on a home value of $150,000, multiply the amount in the “Difference” column by 1.5. For an assessed home value of $200,000, multiply the “Difference” amount by 2, and so on.
|Town||Annual Taxes (2020-21)||Annual Taxes (2021-22)*||Annual Difference*|
*Based on the proposed 1.35% tax levy increase. Figures are estimates and subject to change based on STAR exemptions, changes in assessed and full values, and equalization rates.
Why levy taxes if HCSD received extra state and federal aid this year?
It is a best practice to keep the tax levy close to the tax cap each year so that a future tax spike can be avoided. Since the tax cap is based on the actual taxes levied in the previous year, the District does not want to find itself in a financial position where it must ask for more than the maximum allowable levy to offset expenses. To illustrate this point, see how HCSD used the required state formula to calculate the 2021-22 tax cap (NOTE: the maximum allowable increase is 1.56% however the 2021-22 proposed budget requires a smaller increase of 1.35%). Notice that the first step in the formula is the prior year’s tax levy. If HCSD decided to greatly reduce the 2021-22 tax levy based on the additional state and federal revenue, it would negatively impact the 2022-23 tax cap calculation. Again, the District does not want to be in a position where it must ask for more than the maximum allowable levy to offset expenses and “make ends meet.” Furthermore, the federal funds are one-time only funds intended to help districts recover from the pandemic. For long-term financial planning purposes, it would be unwise to drastically reduce the tax levy based on a one-time influx of federal funds.
What is a utility tax, and why is it part of the District’s revenue?
Under Publication 750 of New York state law, small city school districts such as Hudson are eligible to receive a percentage of the telephone, gas and heating fuel costs collected by the utilities, also known as a “utility tax.” This helps spread the tax burden across all District residents and not just home/property owners. Also, the additional revenue received from the utility tax allows HCSD to limit increases in property taxes as much as possible and still receive enough revenue to operate.
What happens if the budget is defeated?
If the budget proposal is not approved, the District may resubmit the original budget or submit a revised budget to voters on June 15, 2021. If the revised budget proposal is not approved, the Board must adopt a contingency budget with a 0% increase in tax levy. A contingency budget would result in a reduction of $325,937 from the current proposal. It is possible that a contingency budget could require reductions in staff and larger class sizes. Each program and department would be reviewed to potentially eliminate non-mandated expenses for next year (e.g., extracurricular activities, field trips, sports, and non-mandated academic programs or electives).
Where can I get more details about the budget?
The 2021-22 Budget Book contains more line-by-line details of the proposal. It will be available on April 27, 2021.
For more information, please call the Business Office at 518-828-4360, ext. 2100.