THE WORLD READS WHITE PLAINS CITIZENETREPORTER — 8,324,077 VISITS IN ONE YEAR

WPCNR QUILL & EYESHADE. By John F. Bailey. February 18, 2009: The City Assessor, Lloyd Tasch, reported progress in the Board of Assessment Review efforts to adjudicate the over 800 challenges to city assessments filed in January. Based on preliminary judgments, the Assessor told WPCNR there would be an “all-time record” in assessment adjustments based on preliminary evaluation of the challenges to the 2009 Assessment Roll, indicating a further costly erosion of the assessment roll.

Asked for the additional negative impact on the Roll, currently sitting on $288.4 Million, Tasch said “It’s too early to tally up. Call me on March 1.”

Tasch said the three person Board of Assessment Review has disposed of 75% of the challenges, and they have until February 27 to complete the process.

Lloyd Tasch, the City Assessor reported to WPCNR in January,  that grievances filed with the Assessor’s Office over this year’s assessments totaled 858 properties. He said last year 500 grievances were filed, of which 179 were residential. This year, of the 858 grievances about 450 were residential homeowners, and the rest commercial.

The preliminary feeling the City Assessor confirms the softening of real estate prices in White Plains where the average median price of a home based on actual real estate sales has eroded to $680,000 as of the end of December, up from $650,000 at the close of November according to city-data.com. In Westchester County the average price of a home (the mean) has declined 16.7% since December of 2008.

The prospect of further softening of the Assessment Roll compounds the conundrum the School District faces which has to make up the $1.7 Million already by increasing the tax rate – if they keep the school budget at the present $184.4 Million.  The City Assessment Roll is slightly different from the school district, based on who the city gets to tax as opposed to the school district tax customers. The Common Council may wish to ask some questions about that at their budget briefing Thursday evening.

Presently, just to set the stage for you the school district  faces this problem:

Should the assessment figure remain at the $288.4 (rounded off here from $288,371,173)  Million figure, the decline to $288.4 Million  creates a  current $1.7 Million revenue shortfall (projected) in district revenues which in and of itself increases the tax rate from $503 to $510 per $1,000 of assessed valuation just to pay the current budget level of $184.4 Million.

If property owner challenges lower assessments more as Mr. Tasch is indicating, the shortfall will necessitate further increases in the school tax rate — putting extreme pressure on their budget cutters. They better be crossing their fingers that a ton of ObamaBucks will be heading White Plains way.

 Relation of Assessments to Tax Rate.

For those unfamiliar with the formula of how Assessments drive the tax rate: Here is a simple explanation:

This budget year 2008-2009 assessments were at $291.8 Million for the School District In the new Budget Year 2009-2010, the Assessor as of Jan 1 pegs them at $288.4 This year’s Tax Rate was $503.01

How was it figured? Here’s how:

One thousand dollars divides into $291.8 Million, 291,800 times. 291.8 times the present school tax rate $503.01 equals $146.8 Million – this year’s 2008-2009 tax levy.

Since preliminary assessments are down 3.4 Million (from $291.8) this means that at this year’s tax rate you only generate $145.1 Million in levy, leaving a shortfall of $1.7 Million in revenue. By adding $7 to the tax rate the district makes up that shortfall. ($510 x 288.4 produces $147 Million dollars. ) Sooooooooo, the school district needs to cut the budget  BELOW $184.4 Million to $182.7 Million to generate a zero tax increase this year.

WPCNR SCHOOL DAYS. February 17, 2009 UPDATED 4:51 P.M.: While White Plains schools are closed this week for winter vacation, the School Board will be worrying about the budget. They will be wondering how many “ObamaBucks”Governor David Paterson’s New York State Economic Recovery and Reinvestment Cabinet will be floating down the Hudson River to White Plains, and of course, whether or not the legislature will ease the Governor’s stealth property tax increase via his suggested cut of 18%  off STAR Basic and Enhanced Exemptions.

Meanwhile the Board of Education is sticking by its request of outgoing Superintendent of Schools Timothy Connors to slice more off the $190.3 M School Expense Budget submitted two weeks ago. 

Here is the schedule of upcoming meetings:

The Governor’s “manna distributors” in his Reinvestment Cabinet will have $1.7 Billion to distribute statewide to school districts spread over 2009-2010 and 2010-11, according to the Governor’s news release last week. The funding will be provided directly to school districts through the State Education Department, subject to specific federal formulas. The state also has $7 Million to distribute for education of homeless children; and $61 Million for education technology to share.

Meanwhile, the legislature according to Assemblyman Adam Bradley is attempting to restore cuts to the STAR Basic and Enhanced Exemptions “floor” which exacted a hidden property tax increase last year, forcing White Plains residents to pay for about 75% of their increased state education aid the school district received last year and claimed enabled them to cut taxes. Actually the increased state education aid given White Plains last year resulted in a school property tax increase. 

The 18% cut  in the STAR Basic and Enhanced Exemption floors which Governor Paterson’s office has suggested for  the 2009-2010 budget would mean about $109 Million less in reimbursements to school districts, which would be paid instead by state property tax payers,  according the Geoffrey Gloak of the Office of Real Property Services. 

Here are the big meetings coming up, released by the School District today:

            The next meeting of the Board Finance/Audit Committee will take place to discuss the Superintendent’s proposal prior to the meeting on the budget prior to the crictical Monday night, February 23 proposal:

                        Monday, February 23rd,  Board Finance/Audit Committee 5:30 P.M. at Education House — Open

            February 23:     Special Meeting, Education House, 7:30 P.M. The Superintendent of Schools is expected to unveil the Preliminary Budget — cut from the $190.3 Million figure now in play.

                        February 25:     Special Meeting, High School B-1 Room, 7:30 P.M.

                                                     Community Budget Forum: The public will be presented with the budget that the Board settles on based on the February 23 meeting.

                        March 9:          Regular Meeting, Education House, 7:30 P.M.

                                                     (Note change of location from listing in calendar)