2025-26 School Budget Development
DRAFT Tax Cap Presentation
Presented by:
Jeremy Nardone, Business Administrator
February 11, 2025
Caledonia-Mumford
Central School District
Understanding the Tax Cap Formula
January 1, 2012, the Governor put into law the Tax Cap Formula which “limits the annual growth of property taxes levied by local governments and school districts to 2 percent or the rate of inflation, whichever is less”.
Due to this language, constituents have the misconception that each school districts tax cap is at exactly 2%.
Many factors go into the calculation of this formula such as; current and subsequent year PILOT’s, the rate of inflation or 2% whichever is lower, the tax base growth factor, current and subsequent year debt exclusions, NYS pension contribution increases that exceed 2%, Tort exclusions and carryover.
Caledonia-Mumford
Central School District
Understanding the Tax Cap Formula (continued)
PILOT’s - See District presentation on PILOT’s given 2/11/2025
Rate of Inflation - Each January, the rate of inflation is determined for fiscal years beginning July 1
Tax Base Growth Factor - This factor is based on actual physical changes to taxable property such as new construction of homes, stores and offices. This does not include changes in the assessed value of existing, unchanged taxable properties.
Debt Exclusions - Debt compared to aid. We receive roughly 84% back in building aid on Capital Projects and roughly 74% back in transportation aid for buses.
Caledonia-Mumford
Central School District
Understanding the Tax Cap Formula (continued)
Pension Increases - If any of the pension systems (ERS or TRS) increase by more than 2% in a given year, an exclusion is given to allow districts to increase taxes more to offset this charge.
Tort Exclusions - Districts can increase their tax levy for costs resulting from court orders or judgments against the local government. This adjustment can only be made for costs that exceed 5 percent of the total prior year’s tax levy.
Carryover - To have carryover, a district must have an actual tax levy less than the Tax Levy Limit (before exclusions). The Available Carrovery Amount is the lessor of;
Caledonia-Mumford
Central School District
Understanding the Tax Cap Formula (continued)
Carryover - To have carryover, a district must have an actual tax levy less than the Tax Levy Limit (before exclusions). The Available Carrovery Amount is the lessor of;
Carryover Calculation #1 Carryover Calculation #2
$7,740,650 x 1.5% = $116,110 $7,740,650 - $7,923,478 = ($182,828)
District’s have to take the lessor of these two numbers, however, it can’t be less than 0.
Caledonia-Mumford
Central School District
How the Tax Cap Formula Affects the Vote?
If Districts put out to vote a tax levy increase that is within (at or under) the tax cap, a simple majority is required to pass the budget. This simple majority is 50% plus 1 vote.
The tax cap formula is not absolute. Districts can vote on a tax levy increase that is greater than the tax cap formula. In this case, a super majority is required to pass the budget. This super majority is at least 60%.
Prior Year Tax Levy $7,923,478
Tax Base Growth Factor x 1.0066 $7,975,773
Prior Year PILOT (payment in lieu of taxes) + $88,361
$8,064,134
Prior Year Exclusions (capital levy court orders) - $181,573
Adjusted Prior Year Levy = $7,882,561
Allowable Growth Factor x $1.0200
$8,040,212
PILOTS from coming year - $117,378
Tax Levy Limit = $7,922,835
Coming Year Exclusions + $182,950
Tax Levy Limit = $8,105,784
Available Carryover + 0
Maximum Allowable Levy (50% +1) = $8,105,784
$182,306
Caledonia-Mumford
Central School District
Tax Cap
Cal-Mum
Tax Levy Limit
2.30%
2025-2026 Budget Development
New York State Tax Cap
DRAFT
Caledonia-Mumford
Central School District
Questions