The $1.8 billion that schools don't get

With help from Shawn Ness

Education leaders and advocates are backing new legislation that they say could bring more than $1.8 billion in tax dollars back to school districts.

A coalition that includes several state advocacy groups and unions is calling for the passage of a bill that would prohibit Industrial Development Authorities from abating property taxes that would go to school districts across New York.

In a letter sent to Senate and Assembly leaders today, the group points to the diverted funds as another fiscal hardship school districts are expected to overcome.

According to an analysis of New York’s local tax data by the union-backed group Good Jobs First, school districts missed out on $1.8 billion in the 2021 fiscal year that went instead to lower companies' tax bills.

The report equates that to an average $541 per student, but notes there is a disproportionate impact on communities with students of color.

“We are sick of our schools being shortchanged,” New York State United Teachers president Melinda Person said at a Capitol news conference. “We need this bill because our schools deserve all the resources they’ve been promised…We don’t support tax breaks that drain the resources from our schools.”

Sen. Sean Riley (D-Buffalo) said there is bipartisan support for his bill to limit IDAs, especially given the governor’s proposal for school aid that would result in cuts to some districts.

“When a business is exempted from the property tax, they’re saving money, but they’re saving it at the expense of every other taxpayer,” Ryan said. “It creates shortfalls in our school districts, the state taxpayer, or the local taxpayer is forced to fill the gap.”

The letter was signed by the state’s teachers union, AFL-CIO,