The projected tax rate increase in the Bethlehem School District budget proposal has dropped about a third of a percent as a result of state funds secured by the area’s assemblyman, but STAR benefits are being cut in town for the year.
The projected tax rate increase went down from the original 4.14 percent to 3.79 percent for Bethlehem residents and lowered from 5.24 percent to 4.24 percent for New Scotland residents.
Bethlehem School Board President James Lytle lauded the extra state funding as both good for the school and good for the taxpayer.
We very much appreciate our legislators’ efforts on behalf of Bethlehem Central, Lytle said. `It provides district taxpayers with some tax relief, while also allowing the district to equip Eagle and conserve $325,000 in capital construction funding.`
The news of the increased state funding comes as Bethlehem residents who receive a STAR exemption are being told they will see an increase to their school tax bill of $72.68.
`I feel it is important to notify residents about this change to the New York State STAR program because I am very concerned about the impact on our seniors with this adjustment,` said Bethlehem Town Supervisor Jack Cunningham.
Assemblyman Tim Gordon, I-Bethlehem, secured $500,000 for the district from the state budget, which was supported by Sen. Neil Breslin, D-Delmar, and subsequently passed in the finalized state budget in April. The funding was secured after the district’s Board of Education adopted the tentative budget on March 18, which in turn lowered the original projected increase.
`Bethlehem schools are known for the first-rate education they provide to our kids. However, sustaining that quality education for our kids should not further burden local property taxpayers,` Gordon said. `I could not sit by and let Bethlehem lose funding. Cuts lead to one of two outcomes ` either a program would be lost or property taxpayers would face an additional tax burden.`
A statewide budget vote for local schools and libraries will be held May 20, when residents will also vote on school board members and library trustees. In Bethlehem, this year’s vote will take place at the high school off of Delaware Avenue.
The proposed $84.8 million spending plan for the district will remain the same, according to school officials, but the additional funding will take some of the budget’s burden off of the local taxpayers. Out of the $500,000 netted by Gordon, $175,000 is being used to lower the estimated tax rate and the other $325,000 will take the place of capital construction funding to help equip and furnish Eagle Elementary,
The new school, the district’s first in more than 50 years, will be open in the fall, and an open house with guided tours will be held on Saturday, May 10, from 2 until 3:30 p.m.
Newly adjusted projections show that the school tax rate for Bethlehem will be $18.78 and $18.46 for New Scotland, which is down 6 cents per $1,000 of assessment from earlier projections.
This means that the owner of a $200,000 home in Bethlehem can expect an increase of $138 in their school taxes, and the same homeowner in New Scotland will see an estimated $172 increase.
The extra funds and lowered tax rate come at a time when STAR benefits are being reduced for the district.
Seniors who participate in the Enhanced STAR exemption will see an increase of $137.40 in their tax bill. STAR benefits change from year-to-year based on a state formula, but, according to Cunningham, the exemptions can now be adjusted at a rate of up to 10 percent instead of the previous 5 percent limit that was in place.
The basic STAR exemption is being decreased from $40,160 to $36,140, with Enhanced STAR, which is awarded to seniors with fixed income, being reduced from $76,020 to $68,420.
Matt Leon, communications director of the Bethlehem Central School District, said the STAR rates do change from year to year, and that the increase is not a permanent rate.
The state’s Department of Real Property Services sent out a release on the matter.
`After nearly a decade, the amounts of the exemptions vary due to several factors, including whether the municipality has reassessed its property, the level of assessment of the individual municipality, and other aspects set forth in state law,` the release stated. `In addition to changes in the exempt amount, the amount of STAR savings may vary based on the amount of taxes being collected by the given school district.“