Last year Senator Balboni held a press conference at Herricks Middle School to announce a package of aid from the State, a package of aid which one long-time observer characterized as "ingenious." Although Senator Balboni and his colleagues in the Senate were unable to make the structural changes in the New York State school funding formulas necessary to address the needs of Long Island schools and Long Island's overburdened taxpayers, they were able to cobble together a package of aids which - collectively - provided some relief to both Long Island school districts and Long Island taxpayers. It was clearly not the solution to our situation but it was, in Senator Balboni's words, "a major step in the right direction." That package included six elements.

1. A general increase in the state aid formula.

2. A new provision in the aid formula to help communities in which homeowners carried very high tax loads.

3. Additional STAR rebates which were mailed directly to homeowners in October.

4. Child tax credits.

5. Tax credits for volunteer firefighters and ambulance workers.

6. Grants for school construction (known as EXCEL aid).

Governor Spitzer's proposals for school aid and property tax relief take major steps in somewhat different directions. In fact, if enacted, they might represent some of the most significant structural changes in New York State school finance in a long time. While more information is necessary to fully understand these proposals, several things seem clear:

1. Historically, help from New York State has come in the form of state aid to school districts. When the State created the STAR program in the late 1990s, the picture started to change. As noted in other columns, STAR has become an increasingly significant factor each year. Under Governor Spitzer's plan STAR will become the dominant factor for districts like Herricks, with a big shift in 2007-08 and further changes in subsequent years. While the special STAR aid (which was mailed directly to homeowners in October 2006) will expire, on-going STAR aid will increase from $7.08 million to $10.5 million.

2. Herricks, and districts like it, are likely to receive only token increases in State aid for the foreseeable future. Governor Spitzer has proposed radical changes in state school aid formulas, greatly simplifying them and adding a cost-of-doing-business factor. However, most of the new aid is targeted to New York City and other high needs districts. Over 300 districts in the state will receive only token increases.

3. STAR aid is to be targeted to relatively low income homeowners and senior citizens, with an adjustment for differences in income levels between upstate and downstate. Downstate homeowners with incomes of $80,000 or less would be eligible for additional property tax relief amounting to 80 percent of their current Basic STAR benefit. Benefits would taper down to 30 percent with incomes higher than that. Taxpayers with incomes above $235,000 would receive no new benefit. The Senior STAR benefit would be enhanced by 30 percent in 2007-08 and 40 percent in 2008-09.

For the column next week, I will try to develop specific estimates for STAR based on the information available.