State guarantee proposal would equalize local spending above foundation formula, presenters say

Department of Taxes presenters described a proposed State Guarantee on Tuesday that would pay a share of school districts' discretionary spending above a new statewide foundation formula, aiming to equalize differences in local property wealth per student across large multi-town districts.

"For the record, I'm Rebecca Samaroff, the Deputy Commissioner at the Tax Department," Rebecca Samaroff told the joint House Ways & Means and Senate Finance hearing before introducing the department's presentation. Jake Feldman of the Tax Department said the "State Guarantee is a mechanism to compensate for different property cap spaces between school districts, if they choose to raise funds beyond what the state provides through the foundation formula."

The proposal discussed by department staff would: create five regional districts for equalization purposes; calculate each region's taxable grand list per student and average daily membership; and provide a percentage match on any local spending above the foundation formula up to a chosen benchmark (the administration modeled matching up to the median and up to the maximum). Presenters said districts would receive their match rate from the Tax Department as early as January in the implementation year so they could plan budgets.

Why it matters: Under current law, school district tax rates and homestead yields are set after local town meetings and legislative…