tax-cap-150x150-3928769In a resounding win for Governor Andrew Cuomo and for property owners across New York, a state Supreme Court justice in Albany has dismissed a teachers’ union lawsuit that sought to invalidate New York State’s property tax cap on constitutional grounds.

A legal challenge from New York State United Teachers (NYSUT) was all but inevitable once Cuomo’s tax cap was passed by the Legislature in 2011. The union has a strong self-interest in overturning the law, whose main effect is to limit the amount of money available available for increases in teacher compensation, which comprises the lion’s share of school budgets. 

As noted in this space when the suit was filed last year, NYSUT’s case was weak to start with, boiling down to yet another constitutional challenge to New York’s school finance system — in this case, the long-standing requirement for voter approval of school budgets and taxes outside major cities.

Justice Patrick J. McGrath, a Rensselaer County Democrat elected to the state bench in 2008, clearly was not persuaded by the union’s arguments; indeed, his 16-page opinion could be summed up as “harrumph.” Practically the only bright spot for NYSUT was McGrath’s threshold finding that the individual plaintiffs, including both teachers and parents of public school students, had standing to sue.  Beyond that, he rejected each and every one of the grounds raised by the union while agreeing with key arguments made by lawyers for the defendants–Cuomo, state Comptroller Thomas DiNapoli and Education Commissioner John King.

For example, while NYSUT claimed the cap erodes “local control” of school spending, McGrath pointed out that the term “encompasses both favorable and unfavorable consideration of a school districts’ budget, while the plaintiffs (NYSUT) appear to equate local control with budget approval.”  He continued:

The vote itself connotes local control. Stated differently, local control is still served if a “cap” exceeding budget os disapproved by a district’s voters. [emphasis added]

McGrath also rejected the union claim that the ballot notice required under the tax cap law deterred school boards and taxpayers from seeking to override the cap:

Understanding what is required to approve a proposed cap-exceeding budget might influence the way a voter votes, but only  in an unpredictable way; some may be inspired to make sure the budget passes, and vote in favor; others may be inclined to vote against simply because the budget seems excessive.

NYSUT’s challenge to the 60 percent threshold for voter approval of budgets exceeding the tax cap also failed to win the day. Agreeing with the defendants, McGrath noted that a line of U.S. Supreme Court precedents had said that a supermajority requirement would not violate the constitution’s equal protection doctrine as long as it was not designed to discriminate against amy particular class of voters. 

The union reportedly says it’s “very likely” to continue its legal challenge. McGrath provided one possible opening for keeping the case alive by giving NYSUT permission to amend its original complaint to reflect this year’s enactment of Cuomo misnamed “tax freeze” program, which temporarily gives tax credits to homeowners living in school districts that stay under the cap. The union claims that the tax credit — which is temporary, and available only to residents of districts who have already explicitly voted to accept tax levies below the cap — “exacerbates” the impact of the cap. Which is, to put it kindly, even more of a stretch than the arguments that McGrath just rejected.

About the Author

E.J. McMahon

Edmund J. McMahon is Empire Center's founder and a senior fellow.

Read more by E.J. McMahon

You may also like

Report Reveals Albany’s Balanced Budget a Gimmick

Extending the budget window reveals large, yawning budget gaps growing from nearly $8 billion in 2026 to nearly $20 billion by the end of the decade. Read More

Voters Approve Nearly All School Budgets Within Tax Cap

School budget votes proposing an average increase in per pupil spending of 4.2 percent were overwhelmingly approved in state-wide voting held yesterday. Read More

School budgets sail under cap

Yesterday’s school budget votes proved once again New York’s school districts aren’t having much difficulty staying under—or overriding—the property tax cap. Read More

One-house megabucks

With the clock ticking toward the April 1 start of the next state fiscal year, Assembly Democrats just laid out their budget preferences—and, as usual, they add up to a massive tax-and-spend fantasy. Read More

Tax cap fibs test limits

Government unions aren’t letting the facts get in the way of their opposition to Governor Andrew Cuomo’s push for a permanent property tax cap. Testifying in Albany this month on Cuomo’s FY20 Executive Budget, union leaders made a number of misrepresentations regarding the cap, which since 2011 has slowed the growth of property taxes outside New York City. Read More

Cuomo holding strong on tax cap

Governor Andrew Cuomo on Friday laid down an important marker in his push to make the property tax cap permanent, rejecting changes that would weaken it. Read More

Assembly GOP wants higher taxes

Assembly Republicans, who ought to know better, have issued a proposal that would weaken the state’s property tax cap. Read More

Tax cap keeps getting grief

Seven years after its enactment, Governor Andrew Cuomo’s cap on property tax levies continues to be a target of unfounded criticism by some politicians and candidates who either don’t understand the cap or deliberately misrepresent how it works. Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100

General Inquiries: Info@EmpireCenter.org

Press Inquiries: Press@EmpireCenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.

Empire Center Logo Enjoying our work? Sign up for email alerts on our latest news and research.
Together, we can make New York a better place to live and work!