The Impact of the School Tax Relief Exemption on School Spending in New York State

Client: (Research)
Faculty: Amy Ellen Schwartz, Johanna Lacoe
Team: Suraj Abdulai, Naheed Afroz, Alvin Wong
Year: 2010
The Capstone team studied the impact of New York State's School Tax Relief (STAR) exemption on school district spending in New York State. STAR is a state funded property tax relief program that reduces property taxes for homeowners and indirectly decreases the cost of additional school spending. Anything that induces more school spending is a source of great concern, given that New York State has long had the highest local taxes and school expenditures of any state in the United States. While the theory suggests that the STAR exemption has led to increased education spending, it is worth noting that STAR's implementation in the early 2000's coincided with other changes in pension laws and state and federal educational standards. The Capstone team used data from the New York State Office of the Comptroller and the U.S. Census to analyze the impact of STAR on school education expenditures.