Daily Gazette

School districts planning ahead for loss of aid
Wednesday, November 19, 2008

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— Area school districts are already bracing for flat or reduced aid for the 2009-2010 school year, even as the Legislature took no action on Gov. David Paterson’s proposed budget reductions for the current year during a special session on Tuesday.

Paterson had proposed lowering the amount of increase in state aid that districts were slated to receive from 9 percent to 5 percent to save an estimated $800 million and help close a $1.5 billion budget gap. Legislators opposed mid-year cuts and are now waiting for Paterson to release his budget proposal for next year on Dec. 16.

Assembly Minority Leader James Tedisco, R-Schenectady, said aid cuts this year would only have forced school districts to raise property taxes. Cuts in next year’s budget remain a distinct possibility, and he isn’t necessarily opposed. “It will be tough, but at least they will have a year to plan for them,” Tedisco said.

That is exactly what local districts are doing.

The Schenectady City School District had faced a potential $2.6 million reduction in its $97.3 million in aid. Superintendent Eric Ely said state officials may just pile whatever reduction is needed into next year’s budget. The district is already assuming a “dismal” amount of aid.

“I know it’s not going to be good. The question is how bad it’s going to be.”

The district is going to talk to its local legislators to try to answer that question. Ely has already frozen spending.

Other districts are doing the same thing. Greater Amsterdam School District Superintendent Thomas Perillo said right now purchases must be for “only necessities, only items for classroom instruction.”

The district was facing a reduction of just more than $1 million from the $32.5 million expected in state aid.

Perillo acknowledged it is going to be a challenging budget year. Even if aid remains flat, it would still be a reduction with rising costs.

“You do have salary costs that go up and [labor] bargaining units, they get between 3 and 4 percent, just by their contract. You’re already at a deficit,” he said.

Districts are tightening their belts. Schoharie Central School Superintendent Brian Sherman said the district has received proposed budget allocations for 2009-2010 that are 8 percent less than last year’s figures, which does not include reductions for a decrease in enrollment.

Aid cuts could result in layoffs of staff.

“We have no idea what the Legislature is going to do,” he said.

With aid cuts, Sherman anticipated eliminating stipends associated with curriculum initiatives and extracurricular activities next year.

The district would have to evaluate extracurricular activities, athletics and scheduled repairs. Another idea is to discontinue driver education and move the custodians off the third shift to eliminate the extra stipend they receive for working that time period.

Shenendehowa Superintendent L. Oliver Robinson said the school district needs to have a disciplined strategy.

“I don’t want the state to dictate our destiny. That’s why we have to be proactive in our approach,” he said.

The Shenendehowa Board of Education met on Tuesday evening to consider the impact of reduced aid in the 2009-2010 year. It is receiving $45.3 million this year.

Robinson said state officials have recommended that school districts use their fund balance or surplus. However, the problem with that approach is it plugs a hole in the budget for the immediate year and then the district is still behind.

“The last thing we want to do is say we solved this year’s problem … and in two years have 20 percent tax increase we’re proposing to the voters,” he said.

The district is already looking at leaving a number of positions vacant this school year including those of a high school librarian, transportation dispatcher guidance counselor, aquatic director and energy manager.

Robinson said the district could also realize some savings from less-than-anticipated health care costs and the fact that newer employees are typically paid at a lower rate than the retirees they replace.

Going forward, Robinson said, the district is exploring all options, including doing an all-out hiring freeze, sharing or doubling-up positions between buildings, having teachers handle more classes or having administrators teach classes.

“We have a lot of people who are certified teachers who are not in classrooms,” he said.

Other options are to reopen contracts to possibly seek adjustments in health benefits or higher co-pays or salary freezes.

Also, the district can look at reducing the number of elective courses, revamping bus routes and conserving energy.

The board plans to soon start working on its 2009-2010 budget with all these concerns in mind.



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