Businesses to Pay Most of Hauppauge School Budget

Hauppauge’s business districts will contribute more to the 2013-14 school budget than resident taxpayers, according to information provided working a budget workshop Tuesday at the Whippoorwill Administration building.

Administrators have proposed a spending plan of $101,612,222, which carries a property tax levy of $79,490,508. Businesses and commercial industries will foot the bill for approximately 55-percent of the tax levy, while taxes paid by homeowners will contribute about 45-percent, according to the presentation.

“We’re very fortunate to have such a strong commercial base and the majority of the property tax levy is funded by the commercial property and not by the homeowners, so our homeowners will get some relief from that,” James Stucchio, assistant superintendent for business of operations said. 

Part of the reason the heaviest tax burden falls on businesses is due to increased payments in lieu of taxes (PILOTs). The Hauppauge School district will see $344,000 more in PILOTS in 2013-14 than in the current budget.

Stucchio said that Hauppauge’s situation is a unique advantage to homeowners since residents foot between 80-percent and 90-percent of the tax levy bill in many other districts. 

“This is not the case in other districts so we’re very fortunate here that over half (of the tax levy) will be paid by businesses,” he said.

The district will also see an increase of $100,000 in tuition revenues from outside students and an increase of $1,600 in building rentals. An additional $15,000 will come in from miscellaneous revenue sources, the administration predicts. The district will also see about $153,000 in additional BOCES aid and $3,201 in materials aid.

Increased revenues however, do not close the state aid gap.

Hauppauge School District expects to see a decrease of $457,000 in state aid (including building aid) in the 2013-14 school year. The district will also lose much of its high tax aid, which allowed for areas of high taxation to be given relief. As it stands now, Hauppauge expects to lose $381,675 of its high tax aid. Superintendent Patricia Sullivan-Kriss said that the district is working with local state legislators to regain the high tax aid.