This article examines the impact of the fiscal recovery policies stemming from the 2007-09 economic recession and the implementation of the 2011 New York State Property Tax Levy Cap on the budgets of school districts located within a Long Island, New York suburban township. The research basis of this paper is based on two studies conducted by the New York State Council of School Superintendents and the New York State Council of School Business Officials and data collected from the Office of the New York State Comptroller and the New York State Education Department. The quantitative budget data utilized for this study was collected from the Office of the New York State Comptroller and the New York State Department of Education and categorized three years prior to the enactment of the Property Tax Levy Cap (2008-09 to 2010-11) and three years after its enactment (2011-12 to 2013-14). This data encompasses the timeframe of the 2007-09 Great Recession government recovery policies and, the Gap Elimination Adjustment and the 2011 Enactment of the N.Y.S. Property Tax Levy Cap. The recommendations of this study are separated into three parts, including the (1) the use of financial forecasting, strategic planning and fiscal tolerance assessment, (2) the recommendation for an adjustment to the New York State Tax Levy Cap modeled after other states, to provide districts with the ability to address mandated cost drivers in fiscally difficult times and (3) recommendations for further research.