Budget and Voting Information

The tax levy is the total amount of money a school district raises in taxes each year from all property owners in the district.

Tax rates are calculated by dividing the total amount of the levy by the total taxable assessed value in a community. Tax rates are affected by changes in both municipal assessments and state equalization rates, which are determined in the summer. The tax rate is used to calculate each individual property tax bill. 

As the name implies, equalization rates are intended to spread the tax burden across all municipalities (cities, towns and/or villages) within the school district as fairly as possible. In New York state, each municipality determines its own level of assessment. The rates are intended to “equalize” or balance these differences within the same school district. For example, one municipality’s assessments may be more recently updated than others, and property values don’t change equally in all municipalities within the school district. 

A municipality’s equalization rate is set by New York state to reflect a municipality’s level of assessment. It is calculated by dividing total assessed value by total market value.

• An equalization rate of 100 means that the municipality is assessing property at 100 percent of market value.

• An equalization rate of less than 100 means that the municipality’s total market value is greater than its assessed value. 

• An equalization rate of greater than 100 means that the municipality’s total market value is less than its assessed value. 

You can find additional information on equalization rates and links to local assessment rolls here: https://tax.ny.gov/pit/property/learn/eqrates.htm.

The tax levy limit is the highest allowable tax levy (before exemptions) that a school district can propose as part of its annual budget. When staying at or below the tax levy limit, budget proposals can be approved by a simple majority of voters (50 percent + 1). Any proposed tax levy amount above this limit would require budget approval by a supermajority (60 percent or more) of voters. The tax levy limit sets a threshold requiring districts to obtain a higher level of community support for a proposed tax levy above a certain amount.

The proposed tax levy increase of 2.95% represents a $73,421 increase over the prior year’s levy. This increase is $19,321 less than the maximum allowable increase of $92,742 as calculated for 2025-26 through a prescribed state formula. As a result, the budget requires the support of a simple majority (50 percent + 1) of voters to be approved.

Residents’ tax bills are determined by several factors that are out of the district’s control, including assessment levels and equalization rates, which are set by the New York State Office of Real Property Services.

While the final tax rates for 2024-25 cannot be determined until the summer when final assessments and equalization rates are available, the district estimates that a 2.95% tax levy increase would result in an annual increase of about $26 on a home with a fair market value of $100,000. Based on current equalization rates and assessments, the homeowner would pay an estimated $897 in school taxes (before the applicable STAR exemption).

In addition to annual growth in salaries and the cost of BOCES services, school districts, like everyone, are being impacted by higher inflation rates. This has contributed to greater than normal increases in the cost of health insurance, utilities, fuel, and supplies-everything from classroom and instructional materials to cleaning supplies. 

New York State’s School Tax Relief Program, or STAR, provides partial school property tax savings to eligible homeowners. Most New Yorkers who own and live in their homes are eligible for STAR savings on their primary residences. There are two STAR programs, Basic and Enhanced, with different eligibility requirements. More information can be found at: https://www.tax.ny.gov/pit/property/star/eligibility.htm.

No. The STAR program is tax relief for homeowners paid for by New York state through state taxes. This tax relief for homeowners does not affect the school district budget.

A fund balance is created when a district receives more revenue than expected and/or spends less than the amount budgeted. As part of the 2025-26 budget, Avoca CSD plans to allocate $903,042 from its fund balance to lower the total tax levy and reduce the tax impact on district residents in the coming year. 

Under New York state law, if the school budget is defeated, the board of education typically has two options: put the same or a modified budget up for another vote on the third Tuesday in June, or immediately adopt a contingent budget. If residents defeat the proposed budget during a second vote, the board must adopt a contingent budget. 

State law mandates that under a contingent budget, a school district must adopt a budget with no tax levy increase and must eliminate all non-contingent expenses. The administrative portion of the budget would also be subject to certain restrictions.

If Avoca CSD were to adopt a contingent budget for 2025-26, the district would have to cut expenditures by $185,456. By law, the following items would be excluded from a contingency budget: school-provided student supplies, salary increases for some managerial and confidential employees, equipment purchases, transfers to the Capital Fund, non-essential maintenance of school facilities, and public use of school buildings and grounds, except where there is no cost to the District. 

Boards of Cooperative Educational Services, or BOCES, provide shared services to school districts as a way to pool resources and share costs. Sharing allows districts to provide programs and services that they might not be able to afford otherwise. A district using BOCES services for the current school year is reimbursed a portion of the cost of the services in the following school year by New York state. The amount returned to each district varies by service and is based on a formula that takes into account the district’s financial resources. The Avoca CSD receives approximately 75% percent reimbursement on the aidable BOCES services it uses.

It takes many people to create and maintain a safe and productive learning environment for Avoca’s students. Employees teach, transport, coach and care for the community’s children. They clean buildings, mow athletic fields, order supplies and make decisions so that schools run effectively and efficiently. For the 2025-2026 school year, approximately 64% percent of the district’s budget will go to pay salaries and benefits.