Clerical error to cost Schenectady school district $1 million

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A mistake in a legal notice from six years ago has cost the Schenectady City School District about $1 million in transportation aid for this school year.

The mistake involves transportation contracts the district entered into during the 2003-04 year that were extended through 2007-08. It involved a total of $4 million worth of state transportation aid over that time period.

Assistant Superintendent for Business Michael San Angelo told the Board of Education Wednesday that when the district sent out a request for proposals for transportation services in 2003, it also published a legal notice in a newspaper as required by law. However, the criteria for rating the bids was left out of the notice.

The state Education Department identified the error in 2008 as it has been catching up on reviewing these aid appropriations. Consequently, it decided that transportation aid would not be paid to the district.

Superintendent Eric Ely said it was a clerical error by a person that is no longer working for the district.

“It’s something that routinely in the past would have been forgiven,” he said.

Ely said state Sen. Hugh Farley, R-Niskayuna, had introduced a bill in the state Legislature to forgive the mistake. This would have enabled the district to receive $1 million in aid this coming year. However, Gov. David Paterson vetoed it.

“Because we were assured it was a routine item — it would go through, no problem — we did not budget that,” Ely said.

Board member Jeff Janiszewski criticized the state for using something like this as a pretext for withholding the funds.

“They’re running away from an obligation of over a million to us,” he said.

Ely said Farley plans to reintroduce the bill but getting anything through the Assembly or Senate would be difficult now. Farley could not be reached for comment.

Transportation aid was just one issue looming over a brief presentation district officials gave to the board in response to Paterson’s proposed mid-year aid cut of $2.16 million as part of his deficit reduction plan.

Another factor contributing to the budget strain is projected double-digit increases in employer contributions to pensions, although that would affect the 2010-11 budget and not the current one.

Business Manager Sal DeAngelo said the district also has seen a large number of property tax challenges as a result of the citywide reassessment.

The board Wednesday approved a number of assessed value reductions and refunds in the amount of $14,000.

DeAngelo said there are about another 100 property tax challenges — not including commercial properties.

Ely said the district is also hamstrung by the $17.5 million it receives in Contract for Excellence funds as a high-needs district. The state kept the aid amount flat, but costs have increased. The district is prohibited from cutting any programs in the contract.

For example, the district has 15 teachers who are serving as instructional coaches to help others become better teachers. While such a program is beneficial, Ely said the district cannot continue to have that level of staffing in the current fiscal climate.

School officials unsuccessfully lobbied legislators to loosen the restrictions. There are only 37 districts in the contract, Ely said, so collectively, they do not have a very large voice to lobby the Legislature.

Ely said he believes it is going to be impossible for the district to replace the revenue Paterson wants to cut without dipping into surplus. “It’s nickels and dimes when you’re talking about a $160 million budget,” he said.

Even if it were to lay off staff, the district is contractually obligated to give 90 days’ notice.

“I think it’s premature to talk about what we might cut,” he said.

Ely has already frozen discretionary spending, which includes money for field trips and about $10,000 of funds it awards to each school to allow building principals to purchase prizes to reward students for good behavior.

Janiszewski hoped the budget would not be as bleak since economic activity has begun to pick up slightly.

President Maxine Brisport said she found the entire matter “unsettling.”

“I think it’s a shame that any school district has to worry about this. If there’s a cut, children are going to have to suffer the consequences,” she said.

Board member Linda Bellick said she was also upset because Schenectady is listed as a district in need of improvement.

“We can’t expect to get off the list and do what we have to do for the kids if we keep dismantling what we worked so hard to put together,” she said.