With no legislative resolution to the curtailment of the SALT deduction in sight, it’s time to look at some other measures we can take to ameliorate the tax bite.
At a limit of only $10,000, even those with modest homes and incomes are affected on Long Island. This is an opportunity to address some structural imbalances that have been allowed to fester thanks to our comatose elected “representatives.”
Most residents don’t realize it, but a part of our property taxes go to fund a portion of teacher pensions. In today’s economy, this is an anachronism.
It’s also massively hypocritical of “pro-labor” NYSUT types to have the impoverished among us fund the pensions of superintendents who will cash out with over $300,000 per year. In order to reduce the burden property taxes put on the cost of something on so basic a need as shelter, this contribution should be eliminated altogether.
Some districts will save more than others. But based on a list of taxpayer contributions from NYSTRS for the 2018-19 school year, it is dismaying to see some districts that are starved for resources kicking up millions of dollars to one of the 142 superintendents we employ on Long Island, which is, of course, deliberate redundancy.
Wyandanch, which has been reduced to begging for private contributions to keep certain programs in place, pays $2,953,000 to fund the pensions of the already well off.
The Freeport school district pays $7.4 million. Sewanhaka, $9.2 million. From every aspect, this is a moral abomination that should not be allowed to continue for one minute more. I realize that is a heavy lift politically, given the legendary fecklessness and cowardice of our elected representatives, but perhaps someone will try.
Interestingly, NYSTRS flat out refuses to classify the property tax-funded portion of the pensions they administer as coming from “taxpayers.” The term of choice is “employer contribution.”
Another quick fix is redirecting library funding. Long Island is rightly proud of its library system, and it is money well spent, especially in an age where so many minds have been rotted by electronic media.
A visit to any one of them shows people do get value out of them. However, placing the revenue stream to pay for them on a basic need like a home is not productive. While the County is swimming in debt, thanks to the cynical manipulation of its property tax system and its reckless bonding to fund property tax refunds, debt can be used for productive purposes.
With the 30 year Treasury yielding under 2.00 percent, and in the midst of a scorching hot municipal bond market that can’t keep up with demand, now would be the time to float a single issue bond that would cover library expenses for the next 30 years.
Once funded, this line item could be removed from the property tax, and the proceeds dedicated for the use of ongoing library operations for decades to come, at what amounts to the free use of money.
There are perhaps a dozen way to reduce property tax burdens by shifting the revenue stream mix in different combinations in order to soften the blow of the loss of the SALT deduction.
Rest assured your county, Senate and Assembly officials will continue their visits to the Boy Scouts and VFW halls, and “inspect” raw sewage facilities instead.
Donald Davret
Roslyn
