Unfair to Upstate: New Analysis Shows Governor’s Tax “Freeze” Plan Favors Downstate Suburbs and Shortchanges Upstate; Upstate Lawmakers Join Advocacy Groups in Calling it Unfair
(Albany, NY) An analysis released by New Yorkers for Fiscal Fairness, Citizen Action of New York, Alliance for Quality Education and Strong Economy for All found that Governor Cuomo’s tax “freeze” plan would disproportionately favor downstate suburban communities at the expense of upstate communities. Click here for the full analysis.
Homeowners in downstate suburban counties would receive rebates that are three times the size of the rebates offered in upstate counties under the so-called “freeze” plan. For the school tax portion of the rebate, the average homeowner in a downstate suburb would receive a $324 freeze check, while in upstate regions average rebates would range from $97 in the Mohawk Valley to $132 in the Finger Lakes.
Members of the State Senate and Assembly who represent communities in upstate New York are calling the plan unfair.
“Upstate schools are experiencing extreme fiscal stress, and it is important to closely examine all proposals and policies to ensure that no one region bears an unfair burden and that our children receive the best education possible,” said State Senator David Valesky (D-Syracuse).
Upstate taxpayers would not only subsidize higher rebate checks for well-off suburban homeowners, but would also face the impact of cuts in schools and local services in order to fund the freeze which would cost $1.8 billion over three years – amounting to a double-whammy for upstate communities.
“The tax freeze plan is unfair,” said Assembly member Addie Russell (D-Theresa). “Under this plan, rural upstate municipalities that are truly struggling to fund education, police, fire and other essential services will be left behind while New York’s wealthiest suburbs reap these new tax benefits.”
The “freeze” checks would be paid out of the state budget, the same funds which could otherwise be used to pay for schools or local services like police and firefighters – either of which would produce a much fairer distribution than the proposed “freeze.”
“A number of legitimate concerns have been raised about the proposed tax freeze and associated rebate check. After crunching the numbers, it does not appear that upstate taxpayers will actually benefit that much,” said Assembly member Donna Lupardo (D-Endwell). “I strongly support the governor’s interest in tying property taxes to personal income, commonly referred to as a ‘circuit breaker.’ Many of us have been advocating this approach for years.”
“I do not support the tax proposal in its current form because it’s unfair to upstate New York because our rebate checks would be much smaller than in downstate suburbs. Under the plan, money that could be going to fund our schools would instead be sent to downstate suburban counties,” said Assembly member Barbara Lifton (D-Ithaca).
“Instead of providing help to struggling communities and taxpayers, the tax freeze is just another gimmick that benefits the wealthiest communities at the expense of all the rest of us,” said Karen Scharff, Executive Director of Citizen Action of New York. “We need to focus the state’s limited resources on badly needed school aid and basic services in the places where the economy has been hit the hardest.”
“The property tax freeze may make for a great sound bite but it is not a sound solution to provide meaningful tax relief, especially in upstate New York. This ill-conceived proposal will cost nearly a billion dollars and will direct the largest benefits to the state’s wealthiest communities, regardless of need and leave upstate residents with what amounts to the equivalent of a small pizza party. This election year proposal will hurt our schools and communities and not deliver any meaningful relief to the families that need it the most in upstate New York,” said Ron Deutsch, Executive Director of New Yorkers for Fiscal Fairness.
“This is an ill conceived plan that shortchanges upstate homeowners and communities. It targets state funds to wealthier communities in suburban counties. The money would be better spent stopping yet more cuts to programs for students in schools upstate and throughout the state,” said Billy Easton, Executive Director of Alliance for Quality Education.
“By giving larger rebates to residents of wealthier areas, this tax freeze plan will only serve to broaden economic inequality in this state,” said Michael Kink, Executive Director of Strong Economy for All. “We need to prioritize the communities that need help the most.”
About AQE
The Alliance for Quality Education is a coalition mobilizing communities across the state to keep New York true to its promise of ensuring a high quality public education to all students regardless of zip code, income or race. Combining its legislative and policy expertise with grassroots organizing, AQE advances proven-to-work strategies that lead to student success and echo a powerful public demand for a high quality education. www.aqeny.org
