NY A41005

Establishes a tax levy limit for school districts (except large city school districts) beginning with the 2011-2012 school year, capped at the lesser of 1.04 or 1 plus 120% of the inflation factor, with a minimum growth factor of 1.0.

Requires voter approval of school district tax levies through propositions at annual meetings, with qualified voters able to approve underride propositions for more restrictive tax limits by petition and special district meeting.

Implements different voting thresholds for tax levy propositions: 50% approval if within the statutory limit, or 55-60% approval if exceeding the limit (depending on state aid increases).

Applies similar tax levy limitations to local governments (counties, cities, towns, villages, fire districts) beginning in fiscal year 2011, with a two-thirds vote override requirement for budgets exceeding the limitation.

Modifies school district budget procedures to eliminate contingency budgets and budget revotes, instead requiring adoption of budgets that comply with approved tax levy propositions or the calculated tax levy base if no proposition passes.