A school tax cap that would derail education in New York state failed to gain traction in the state Assembly after NYSUT, in concert with a statewide coalition of dedicated community groups, made a full-court press against Gov. David Paterson's controversial plan.

Under the leadership and strong advocacy of Assembly Speaker Sheldon Silver, the Assembly instead backed a circuit-breaker bill that would determine a household's property taxes based upon income.

The Assembly vote, which drew bi-partisan support, came less than two weeks after the GOP-controlled Senate approved Paterson's plan. That plan would limit the revenue a district could raise locally by capping annual school tax increases at 4 percent or the rate of inflation, whichever is less.

That bill also includes a provision for voter-initiated propositions that could impose an even more restrictive tax levy limit on school districts.

The standoff between the two houses means the battle — one in which NYSUT and community groups will remain actively engaged — could continue through the election season and possibly into next year. 

"While a cap may sound appealing, similar schemes have failed in California, Massachusetts, Colorado and other states, resulting in devastating cuts to educational programs and services to children," said NYSUT President Dick Iannuzzi. "We simply cannot, and will not, allow that to happen in New York."

In the wake of a television campaign by NYSUT, two groups — the Alliance for Quality Education and the Working Families Party — launched an unprecedented statewide television campaign pointing out the pain inflicted by tax caps in other states.

NYSUT, at its summer endorsement conference just four days after the Senate's passage of the cap, decided to suspend the endorsements of all 38 state senators — both Republican and Democratic — who voted in favor of the bill.

"Candidates endorsed by the union not only receive financial support, but benefit tremendously from NYSUT's powerful get-out-the-vote machine, which includes activists going door to door, working phone banks and sending out mailings," said NYSUT Executive Vice President Alan Lubin.

Support for circuit breaker

Two back-to-back polls conducted by the Siena Research Institute show New Yorkers favor a circuit-breaker approach to property tax relief over a cap.

A Siena poll in August determined 58 percent of respondents favored a circuit breaker, compared to 33 percent who preferred a cap.

That marked a slight gain in support for a circuit breaker compared to July, when Siena found New Yorkers favored a circuit breaker over a cap by 52 percent to 36 percent.

The Assembly's bill would create an income tax hike on those who earn more than $1 million per year. The revenue generated from the so-called "millionaire's tax" would pay for a circuit breaker and help offset the state's projected $6.4 billion deficit.

Polls have shown repeatedly that when it comes to raising revenue, New Yorkers favor a millionaire's tax over cuts to essential services.

Concerns about the devastating effects of a tax cap have been raised by a broad coalition that includes the Working Families Party, the Alliance for Quality Education, New Yorkers for Fiscal Fairness, the Educational Conference Board, the State Parent Teachers Association, the Fiscal Policy Institute and the Campaign for Fiscal Equity.

"This is perhaps the most critical issue facing public education in a generation," said Lubin. "Those who are taking a stand against a destructive tax cap can rightly call themselves a champion of children and equity in public education."

— Matt Smith