A report issued by Nassau County Comptroller Howard Weitzman reveals a $64 million disparity in the size of New York State STAR rebate checks distributed to homeowners in Nassau and Westchester counties with similarly-valued properties and school tax bills. Nassau residents are receiving significantly lower rebates in almost every case, according to the comptroller.
"The inequitable distribution of the STAR rebates is outrageous. The state school aid formulas and the STAR calculations make no sense," said Weitzman. "In total, our analysis shows that Nassau taxpayers were shortchanged by $64 million."
The report shows that the average basic STAR rebate check in Nassau is $240.75. By contrast, the average in Westchester is $386.27. In many of the communities compared in the two counties, the difference in checks is frequently $200 or more.
"Looking at the STAR rebate checks arriving in our mailboxes, it would be logical to think that owners of comparably valued homes, or who pay similar amounts of school tax, should receive rebate checks that are roughly equivalent. However, in almost every instance, Nassau homeowners received much lower STAR rebates than their neighbors in Westchester," Weitzman said.
In a ranking of all the school districts by the amount of the rebate checks, only three of the 30 districts with the highest STAR rebates are located in Nassau, and only one of the 30 communities with the lowest rebates is in Westchester. Westchester was selected for comparison because it is an affluent, mature suburban county similar to Nassau in size, residential makeup and property values.
Weitzman called for a revision of current formulas that determine the distribution of state aid to school districts and an overhaul of New York State's school aid and Tax Relief (STAR) rebate program.
Jericho Public Schools Superintendent Henry L. Grishman said, "Nassau's communities and school districts have struggled with less than their fair share of state aid for far too long. I commend Comptroller Weitzman for shedding light on the inequities of the state aid system."
Great Neck Public Schools Superintendent Dr. Ronald L. Friedman said, "A clear inequity exists between Westchester and Nassau, with Nassau districts being significantly shortchanged. Nassau taxpayers in districts of comparable wealth to Westchester districts are getting the short end of the state aid stick when it comes to STAR relief. The data is surprising, even shocking."
The report compares the rebate checks of taxpayers in school districts in Nassau with school districts in Westchester. In the Franklin Square Union Free School District, in 2004-2005, $4,696 was the average paid in school and library taxes. The rebate checks amounted to $226.82 for STAR and $378.78 for Enhanced STAR. However, in the Tarrytown School District, where $4,683 was the average school and library taxes paid, the rebate checks were $460.11 for STAR and $768.38 for Enhanced STAR.
According to the report for the following school districts:
Elmont - $4,552 average taxes paid, $258.38 rebate for STAR, $431.49 for Enhanced STAR.
West Hempstead - $5,007 average taxes paid, $249.52 rebate for STAR, $416.69 for Enhanced STAR.
"We are not calling for lower rebates for Westchester homeowners," Weitzman said, "but for a fairer distribution of education aid throughout the state. Nassau County residents carry the burden of more of their school district's budgets, receive less STAR assistance than comparable Westchester County, and now will receive a much lower STAR rebate check because of the unfairness of the STAR rebate formula to Nassau County residents. Our taxpayers need a school aid formula that is transparent and that meets the test of common sense."
A comparison of Basic STAR savings for the 2006-2007 school year shows that Westchester residents received an average $1,840 STAR exemption and Nassau residents received $1,020, an 80 percent difference. Suffolk residents received even lower STAR exemptions, $990 on average, than Nassau residents.