Archives for category: The economy

Property Tax Cap Fiscal Years Beginning 2014 | Thomas P. DiNapoli

From The Torch:

Under the law passed in 2011, the cap on tax levies is set at the lesser of 2 percent or the rate of the growth in an “inflation factor,” calculated as the average monthly change in the Consumer Price Index (CPI) for the 12-month period ending six months before the start of the fiscal year.

The actual cap will differ by locality, depending primarily on the amount of allowable exclusions for growth in the local property values. Localities also will be able to exclude the amount by which the change in pension contributions exceeds two percentage points. DiNapoli will be announcing 2014-15 contribution rates any day now.


The cap is more difficult for school districts to exceed, since school budgets (outside the “big five” cities) are subject to approval in a public referendum. Their cap is based on the average of 12 months ending in December — a number that won’t be known until mid-January. Based on current inflation trends, however, schools should also be ready to deal with a starting-point cap of less than 2 percent next year. This time around, their pension exclusion won’t kick in, so the average effective school tax levy cap will be much closer to 2 percent than it was in 2013-14.

Local tax cap drops to 1.66% for 2014 | E.J. McMahon | The Torch | August 16, 2013

In 2011, after the unemployment rate doubled from 5 to 10 percent, the housing market crashed and the stock market took a nose dive, we took an early look at the impact of those economic contractions on teacher employment and found that, while there were isolated layoffs of significance (mostly in California), teachers had been relatively protected from job loss.


  • On average, teachers continued to get raises post-recession, but the increases were one-third to one-half of what they were at the start of the recession.
  • In 80 percent of the districts studied (33 out of 41), teachers had a total pay freeze or pay cut in at least one of the school years between 2008-09 and 2011-12.
  • 95 percent of the districts (39 out of 41) froze or cut at least one component of scheduled teacher raises (step increases or annual adjustments) at some point over the four years.
  • Of the forty-one districts in our sample, Chicago Public Schools had the highest average raise over the four years at 6.5 percent.

The Recession’s Impact on Teacher Salaries

“Sticky wages” are the reason for unemployment during recessions and depressions.

In recessions, money and wealth fall, but wages stay the same or even increase. Thus some people must lose their jobs altogether so that others can keep the salaries they had before.

Click image to enlarge
Teacher raises since crash
Wages: average for Irvington teacher compared to average Irvington
& Tarrytown residents

4% average increase in teacher compensation year-to-year
Highest IBM raise = 3.5%
Sticky wages: wage change in 2011
Work sharing: A strategy to preserve jobs during the global jobs crisis
Kuzarbeit scheme

At a rate of 169,000 jobs per month (over the past year), 10 years and 2 months. May 2023.

Hamilton jobs gap calculator

The first 5 charts on this Historinhas post tell the story. (And, for Fed Watchers, declining inflation expectations, too.)

update 1/11/2012: Michael Darda’s “jobs gap” chart (click to enlarge)

0 Darda - Employment Gap