As noted in previous columns, the Long Island Association (LIA), Long Island's business organization, has forcefully advocated for significant changes in the way schools are funded in New York State in order to provide greater equity to both Long Island schools and Long Island taxpayers. Numerous LIA studies have noted that Long Island taxpayers pay a substantially greater share of the cost of education than do residents in other parts of the state as a result of substantial inequities in state aid formulas.

In a just released study, the LIA has analyzed the governor's proposals regarding state school aid and STAR aid. The report commends the governor for seeking fundamental changes in the state's school aid system including, most importantly, some recognition of regional cost differences. While commending the governor for many of the changes, the LIA notes that there are, unfortunately, serious flaws which need to be addressed in order to bring equitable relief to Long Island schools and Long Island taxpayers. The report specifically notes the following:

• Although the new foundation aid formula proposed by the governor represents some progress, the level by which it is funded is insufficient, resulting in a minimum increase of just 3 percent for 113 out of the 124 school districts in Nassau and Suffolk. A number of the districts which are capped are some of Long Island's poorest districts. The LIA recommends that all districts receive a minimum increase of 5 percent until further research can be done to make the formula more equitable.

• The LIA proposes that the regional cost factor which was used in prior studies be included in the new state foundation aid formula rather than the regional cost factor included in the governor's proposals as it does not sufficiently recognize the differences between the cost of doing business on Long Island and the rest of the State.

• The LIA proposes that the governor create a special commission charged with thoroughly reviewing the foundation formula and its impact on school districts across New York State. The LIA further recommends that this commission be comprised of representatives from school districts representing all regions of the State as well as representatives of the taxpayer community.

• The LIA notes that the "high tax" and "tax limitation" aids included in the current school aid structure have been critically important to Long Island schools. Governor Spitzer's proposals recommend the elimination of these specific aids. The LIA recommends that, if these aids cannot be replicated within the foundation formula, they be retained as separate aids as they are critical to limiting the tax burden imposed on Long Island communities.

• The LIA applauds the targeting of new STAR aid to senior citizens and those who are least able to afford Long Island's property taxes. The LIA notes, however, that the sliding scale developed by the governor "does not realistically fit the household income circumstances of many Long Islanders."

• Lastly, the LIA notes that the governor's proposal includes no property tax relief for businesses and that the new STAR program will shift more of the property tax burden from residential taxpayers to business. This will have a negative effect on the Long Island economy.