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Aldag, A. and Warner, M. (2018). "Fix the Cap." Issue Brief. Ithaca, NY: Cornell University. 

If the tax cap is to be made permanent, New York legislators should learn from best practices in other states. When compared to the best practices regarding similar tax caps in other states, local leaders want similar reforms. Reforms to the cap should include exemptions for capital expenditures and special districts. This will prevent the vicious cycle of the underfunding of infrastructure and eroding economic development. The cap should be set to 2% and not change every year, and should exempt emergency expenditures and pension payments. Lastly, PILOTs and developments on tax exempt properties should be included in calculating the growth factor. 

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Subject: Upstate NY Fiscal Stress