HHH Faces $12.7M Budget Shortfall Under Tax Cap

The Half Hollow Hills School District faces a $12.7 million shortfall next year if residents vote to stay within the state’s new tax cap, the board of education said on Tuesday during the first event in a series of budget forums.

Come budget time, the board of education will have two options. The first is to propose a budget requiring a tax levy at or below 2 percent, which would be decided upon in a popular vote. If the board chooses to do this, it would result in a $12.7 million loss, officials said.

The second choice is to propose a budget above the tax levy limit, but it would have to be approved by a super majority of 60 percent. The ballots would also have to have a printed disclaimer indicating to the voter that the budget exceeds the tax levy limit. 

“Having an educated public is going to be our greatest ally,” Superintendent Kelly Fallon said referring to some of the misconceptions of the tax cap legislation, such that one’s tax rate will only increase by 2 percent. This is not true. The legislation only refers to the tax levy, or the amount of the budget in which a public facility raises in taxes. The fire departments, libraries and water districts are also subject to the tax levy limit, said Anne Marie Caliendo, assistant superintendent for finance and facilities.

The board of education is worried that residents may put education in Half Hollow Hills in jeopardy because of the notion that their tax bills will decrease.

“For me as a superintendent, it is extremely frustrating when Long Islanders begin to hear about the 2 percent," Fallon said. "It is the first time in my 27-year career when an overwhelming number of school budgets have passed. People are saying that they want to support our schools and the state is saying that you can’t."

For Half Hollow Hills, a decrease of $12.7 million puts all of the schools’ programs at risk.

“We’re not talking about paper, supplies, a softball team or an additional AP course. Twelve million is a lot of things. There will be very little that will not be touched,” the superintendent said.

The board of education did not yet say whether it would put forth a popular vote or super majority budget.

“We are going to put a responsible budget on the table,” Caliendo said.

The next forum will take place on Jan. 24.