Schools dodge midyear bullet
Approved budget deficit reduction plan leaves schools alone
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Local school districts fearing midyear cuts in aid as the state attempts to balance its budget deficit can breathe more easily -- for now.
Local legislators said a $2.8 billion deficit reduction plan that passed both the Assembly and the Senate this week will protect local school districts from a drop in the amount of state aid they receive, something Gov. David Paterson had said might be necessary.
The plan includes $1.6 billion in executive actions already taken by the governor, $391 million in revenue from federal education aid and the rest through spending cuts, although Assemblyman Marc Alessi (D-Shoreham) said no cuts were made to programs receiving matching federal dollars.
"This gives us some breathing room to prepare [for the 2010-11 budget]," Mr. Alessi said. The state faces a $5 billion deficit in the upcoming fiscal year.
Earlier this week, Gov. Paterson submitted an executive authority option that, had it passed, would have given him sole authority to decide how to make up the budget deficit. One sticking point, said Mr. Alessi and Sen. Ken LaValle (R-Port Jefferson), was midyear school aid cuts.
Reached by phone earlier this week, Mr. LaValle said, "Cuts in education are a non-starter."
"We simply have no other choice but to make reductions to health care and education if we want to demonstrate that we are serious about putting New York on the road to fiscal recovery," Mr. Paterson wrote.
Mr. Alessi cautions local school districts to plan accordingly, because, having escaped midyear state aid cuts this year, they will have less money available in 2010-11.
"We dodged a bullet for the moment," said Longwood superintendent Allan Gerstenlauer. "I don't think we'll dodge it forever."
Dr. Gerstenlauer said the district tries to plan out its costs and revenues three to five years ahead, but that is becoming increasingly difficult.
"One of the frustrations we all feel is the lack of certainty, but that's simply part of the process," he said.
Facing that uncertainty, Mr. Alessi said every elected official, from state to local levels, will have to take a hard look at expected revenues and expenses.
"We can't afford the level of spending we used to have," Mr. Alessi said.
Shoreham-Wading River superintendent Harriet Copel said she expects further reductions in state aid, be it through cuts or deferred payments. The district, she said, will put a plan in place when the state has made a final decision.
Dr. Gerstenlauer said his district may have to consider dipping into reserves or fund balances, something it almost certainly would have had to do this school year if faced with midyear cuts.
Pehaps hit even harder are local hospitals and health care providers, who could still face cuts this year.
According to a letter its representatives sent to the governor's office, Peconic Bay Medical Center has seen $2.38 million in cuts over the past 17 months. Mr. Paterson's deficit reduction plan, it says, would dock the hospital $250,000 more over the next 16 months.
"These cuts, on top of the other cuts we've had to deal with the past year and a half, are devastating," said Peconic Bay spokesperson Denise Civiletti. "They will likely mean job cuts and service reductions in 2010."
While further cuts are not a certainty, Ms. Civiletti said Peconic Bay must assume the worst and hope for the best.
Mr. LaValle said the state Legislature will begin discussing the 2010-11 fiscal year budget later this month.
jwilliams@northshoresun.com
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