Schools brace for delays in state aid

HARLEM VALLEY — Following an announcement from Gov. David Paterson on Dec. 13 that he will withhold nearly $750 million in aid to schools, local governments and other agencies, school districts across the state and county are trying to figure out how long the payments will be delayed and what that means for the remainder of the 2009-10 school year as well as next year’s budget.

Specifically, Paterson has delayed approximately 10 percent of state aid and 19 percent of STAR (the state’s School Tax Relief program) payments. The governor explained in a press release that the cuts are necessary to keep the state solvent.

Both Webutuck and Pine Plains have addressed the governor’s decision at recent Board of Education (BOE) meetings. The biggest problem, both districts agree, is the lack of concrete information from the state about exactly how much is being withheld and when, if ever, the delayed payments will be sent to the districts.

For Webutuck, Interim Superintendent David Paciencia has estimated a reduction of anywhere between $130,000 to $230,000.

“No one’s been able to confirm with the state,†Paciencia said during a telephone interview on Dec. 18. “We’re being told to count on it happening. Is it a withhold or an absolute cut? Nobody knows.â€

Paciencia said he felt the announcement would have the greatest amount of impact on the proposed budget for the 2010-11 school year, calling it “just the tip of the iceberg.â€

No budget change

expected

At Webutuck’s Dec. 14 BOE meeting, board President Dale Culver said he was confident that, save the state completely eliminating all aid to the district, the 2009-10 school year would continue as budgeted for.

“We’ve anticipated over the last 36 months the decline in state aid and this is not the dire straits we planned for,†he explained. “Through June of this year, everything we have here will be maintained. The only thing they could do to knock us down  is to  completely stop state aid.â€

A similar approach in planning for a worst-case scenario was also taken in Pine Plains, according to district Superintendent Linda Kaumeyer during a Dec. 18 telephone interview.

“On the one hand it’s very difficult,†she said. “But on the other, for at least the last year to year and a half we were aware because of the recession and because of the state’s economic situation that there would be some kind of aid cut.â€

Kaumeyer also pointed out that it’s very likely that ARRA (stimulus) funding will be cut short for the 2010-11 year to cover state budget deficits from the current year. While districts have known that stimulus funding was going to drop off after the second year, having the “funding cliff†arrive sooner will be challenging for the district, she said. Nearly $900,000 of this year’s state aid to Pine Plains is covered by ARRA funds.

Due to the anticipation of cuts Pine Plains placed a hold on purchases a few months ago, the superintendent said, and has been watching the district’s cash flow on a regular basis. The superintendent did not offer an estimate on what the cuts/delayed payments would total. She did, however, state in her bi-monthly press release summarizing the month’s Board of Education meetings that according to the governor’s original mid-year budget cut proposal in September, reductions to the district’s funding would be over $615,000. Whether or not that number will be eventually reached is unknown, but Pine Plains will be planning for it, the superintendent said.

“Last year we wanted to try to plan thinking there would be possible further reductions in state aid. That involves really conservative spending,†she said. “Just like any home’s budget, when you anticipate a shortfall in revenue you have to reduce your spending where you can.â€

At Webutuck, the district will continue to look at reducing costs, supplies and equipment before more significant cuts are made.

“The last thing we want to do is reduce or cut staff,†Paciencia stressed. But with 80 percent of the school’s budget comprised of salaries and benefits, the superintendent said it was clear that if state funding continued on a similar path the school would need to consider those cuts.

“When you impact the staff  you impact class size and students’ education,†he said, “and that’s the last thing we want to do right now. We want to make sure we know what numbers we’re going to get before taking any drastic measures.â€

When the schools open back up after the holidays the districts will begin planning for next year’s budget, and both schools are hoping the state’s budget will be more defined by then.

“Our budget schedule will look similar to what it was in recent years,†Kaumeyer said. “And we encourage members of our community who are interested to follow the information we provide on the district Web site [ppcsd.org].â€

“We’ve planned ahead,†said Culver at the Dec. 14 board meeting. “We’ll be looking at harder numbers in January when we have a clearer vision of where Albany is.â€

“As clear as it can be,†Paciencia amended.