Tax Levy Increases Compared to Inflation – A Decade Review

The most accurate picture of school budget increases is provided by a review of the school tax levy.   The tax levy increases have been compared to both inflation and the cost of personnel for the period 2001 to 2011.

Inflation as represented by the Consumer Price Index (CPI) has been 23% over this period.   CPI Calculator 

Personnel cost increases as represented by the Employment Cost Index (EPI) have been 38% overall, and 42% for state and local governments over this period, outpacing inflation.  (Data extracted and compiled from Bureau of Labor Statistics).

Tax levy increases have been 62.1% over this same period.   School tax levy data

Coupled with this the enrollment in Canandaigua has decreased by 9.6% over this same period.

The April 5, 2012 budget figures have 72.7% of the budget supporting personnel (2012-13 budget).  So if we assume 73% of the growth in costs is associated with personnel (at a EPI state gov’t rate of 42%), and 27% of the growth in costs is due to other factors driven by inflation (at a CPI of 23%), we would expect the increase in tax levy to be 37% over this ten year period.

Over the past decade, inflation has been 23%, personnel costs have increased by 42%, the student population has decreased by 9.6% while the tax levy (school budget) has increased by 62.1%.