Governor's proposed state budget calls for reduced education aid
On Tuesday, Feb. 1, Governor Cuomo proposed a state budget that would result in Duanesburg Central Schools losing nearly $1.1 million in total state aid from the current school year to the next—which is a 16 percent reduction.
In all, the Governor proposed a $1.5 billion, or 7.3 percent, reduction in total state education expenditures. His proposed budget contains a series of other changes that would impact school districts across the state, including limiting reimbursements for certain expenses and some relief from other mandated expenses that drive up school costs.
The loss of $1.1 million in state aid combined with approximately $327,000 in increased health insurance premiums and pensions costs alone, results in an estimated $1.4 million budget gap between projected revenue and projected expenditures.
“Our foundation aid has been flat for the past four years,” explains Business Administrator Brenda Kane, “The current proposal of a 16 percent reduction in State aid coupled with the loss of the Federal stimulus funding and the increases in contractual expenses alone leaves us with a difficult time closing this type of budget gap."
Get involved
Community members are encouraged to learn more about the budget and get involved in the planning process by attending the Budget Work Sessions being held throughout February and March [BUDGET PLANNING CALENDAR]. The first budget session is Tuesday, February 15 at 7:30 p.m. in the MS/HS Multi-purpose room. (The original first budget work session on Feb. 1 was canceled due to severe weather conditions.)
Additional Highlights of the Governor’s Budget & Education
• Total aid is decreasing as a result of a Gap Elimination Adjustment assessed to all districts on a progressive basis, according to the state Division of Budget. The Gap Elimination Adjustment, a mechanism for the state to close its budget deficit, is larger than the total year-to-year funding cut of 1.5 billion. This is because it is based on the amount of aid the state is reducing from a funding increase scheduled to take effect, rather than current year levels. The GEA for Duanesburg is about $1.4 million, according to the state aid breakdown provided by the Division of the Budget.
• In his budget address, Governor Cuomo indicated that schools have access to some funding from a federal education jobs bill signed by President Obama last summer. Duanesburg is slated to receive $388,866 from New York’s share of this money, which is expected to improve its budget situation slightly. As with the stimulus funding for education this year, this federal jobs money is a one-time revenue source and will go away after next year.
• A report from the Governor's Mandate Relief Redesign Team is expected by March 1. In appointing this panel last month, he charged it with conducting a rigorous and comprehensive review of mandates imposed on school districts and other local taxing districts in order to look for the best and most cost-effective ways to deliver mandated programs and services and identify those that are ineffective, unnecessary, outdated and duplicative.
• The Governor has proposed a 2 percent cap on school district and municipalities tax levies, with a limited exception for voter-approved capital expenditures. The cap, which has passed the state Senate, would take effect in the 2012-13 school year. Educational organizations statewide have said that without mandate relief and other measures at the state level to help control costs, school districts would be unable to meet their basic expenses without deep cuts to educational programs.
• The Governor's budget proposal includes two, $250 million grant funding pools for school districts: One for districts that demonstrate significant improvements in student performance, and another for those that undertake long-term structural changes to reduce costs and improve efficiency.
• The Governor's budget proposal continues the STAR property tax relief program. It introduces a mechanism to prevent benefit increases when property values decline, and also limits the growth in exemption benefits to two percent annually.
• The reimbursement rate for districts providing required special education services to students in the summer would be adjusted, resulting in a potential cost shift from the state to individual districts.