Protect taxpayers from picking up the rising costs

The New York State Senate Majority today introduced the "Taxpayer Empowerment and Accountability (TEA) plan," a comprehensive reform package designed to rein in runaway spending on school administrator salaries and pension benefits, and to protect taxpayers from being forced to pick up the rising costs. The Senate plan will result in increased transparency of school district expenses, encourage greater public input and institute meaningful reforms that will drive taxpayer dollars into the classroom where it can help students the most.

Under the major provisions of the plan, the State would require all payroll, benefits and contract information of school administrators to be available on the district’s web site to increase transparency; institute reforms to crack down on lawyers who are listed as school employees to collect additional health and pension benefits; control unnecessary spending, end needless regulations and prohibit unfunded mandates to school districts; and prevent those with conflicts of interest from serving on local school boards.

A number of these concepts are already being advanced in coordination with Attorney General Andrew Cuomo following a recent hearing held on Long Island, and members of the Senate Majority are working with the Attorney General’s office to craft legislation that addresses these important issues.

MAKE ALL PAYROLL, BENEFITS AND CONTRACT INFORMATION OF ADMINISTRATORS ACCESSIBLE ON A SCHOOL DISTRICT’S WEB SITE

Under this provision, school districts would be required to make all information relating to payroll, pension benefits and contracts of school administrators available on their web sites. In addition, the web site would include a link to State Education Department data that would allow school district taxpayers to compare salaries, school district enrollment and services provided in other school districts. The measure requires school districts to provide the public with at least 72 hours to review all contracts before the school board votes on that contract.

In conjunction with Attorney General Andrew Cuomo, the Senate is crafting legislation that would limit and restrict the conditions under which the State Education Department can grant waivers to retired superintendents who are then rehired at another school district for top pay while already collecting pension benefits at taxpayer expense. Current regulations would be reviewed and revised to increase the availability of qualified candidates.

Under this measure, the State would put in place new rules that would allow school districts to hire a retired superintendent only in extraordinary cases. Those districts seeking a waiver would initiate a multi-step approval process and be subject to an automatic review by SED and the New York State Comptroller if a certain threshold on salary and benefits is reached.

In addition, school districts would be required to give public notice if they intended to hire a retired superintendent, and would be obligated to disclose all salary and benefits to taxpayers on the school district’s web site.

The measure also requires the State to restrict "Golden Parachutes," a contractual agreement between a school district and an employee specifying that the employee will receive certain significant benefits if he or she is terminated.

"I understand that sometimes districts face a short term hardship in finding a superintendent in a limited period of time. Six figure salaries combined with six figure pensions is an unacceptable drag on taxpayer dollars. By limiting these retiree hires, we will protect the taxpayer and a younger group of education professionals will be given an opportunity to bring a fresh approach to school districts statewide," said Senator Carl L. Marcellino (R-Syosset).

The Senate is also working on legislation with the Attorney General to prohibit lawyers from being listed as employees of school districts for the purpose of earning additional pension and health benefits that drive up costs for taxpayers, and increase civil and criminal penalties for pension fraud.

CUT COSTS IN EDUCATION

To eliminate unnecessary spending and burdensome regulations, the Senate will advance the Paper Work Reduction Act in Education. The legislation will eliminate or streamline a myriad of individual reports and filings currently required by statute or SED.

Under this provision, the Legislature would also prohibit unfunded mandates and require the State to fund one hundred percent of the cost of any new requirements imposed on school districts.

The Senate Majority has also recommended protecting taxpayers by incentivizing and encouraging cooperation, coordination and the sharing of services among school districts, counties, cities, towns and villages.

"During these difficult economic times it is in everyone’s best interest, particularly the local property taxpayers we all serve, to find ways to operate more efficiently," said Senator Elizabeth Little (R,C,I-Queensbury). "The State needs to be a partner with local governments and school districts, providing financial assistance when and where it is needed and removing barriers that prevent the coordination and sharing of services and programs."

This provision would prevent school board attorneys from representing superintendents in their personal contract negotiations with the board, or in their personal legal work, as well as prohibit school board attorneys with spouses employed by districts from representing them in contract talks. In addition, the measure restricts school board members who have relatives who are employed by the district.

The Senate Majority has long been in the forefront of efforts to control costs, provide tax relief, and put in place lasting reforms which benefit taxpayers, including the original STAR program and its successful follow-up, the STAR rebate program.

The Senate also passed the NY-STOP program that would completely eliminate residential school property taxes in school districts that vote to phase out property taxes over five years, with revenue replaced by additional State funding. This plan would enable local voters to place a local cap on property taxes if they vote to do so.

The Senate has also advanced numerous measures to prohibit unfunded State mandates on municipalities and school districts, as well as incentives for local consolidation and shared services that would increase efficiency, reduce spending and lower property taxes for overburdened taxpayers across the State.