Impact of New York State Budget Cuts Not Immediate in Salamanca Schools

January 8, 2010

With New York State teetering on the edge of financial ruin, tough choices have been made to keep the state solvent.

In early December, school districts across the state dodged substantial midyear funding cuts, as state legislatures approved a 1 percent decrease in school aid.

However, toward the end of the month, Governor David Paterson delayed 10 percent of state aid payments to all New York school districts.

For the Salamanca City Central School District, the delayed funds amount to nearly $135,000. Although the SCCSD is dependent on state aid for around 80 percent of its budget, Marcia Jones, SCCSD treasurer, said the district can weather the delay for a short time.

“Right now, we’re okay – we won’t feel the impact of that immediately,” Jones said. “However, if we don’t recoup that money, we will feel that later on.”

Jones said state officials have not indicated when schools would receive the delayed school aid. 
 
Keeping the Salamanca school distric t afloat for the time being is an undesignated fund balance from the last school year. The funds stem from Native American aid in the amount of $2 million, and are to be paid to the district over a two-year period.

“We have that money because we finally received that aid from the state that we were owed going back to 2004,” Jones said. “In hindsight, it’s been great to have that aid to help us through this period. But it was tough in previous years when we didn’t have that money.”

For other school districts in the state, Paterson suggested they tap into their reserves, citing nearly all districts have undesignated reserve balances. But usage of the undesignated fund balance is a temporary Band-Aid for the for all districts within the state.

“It’s not that many districts are over funded and have excess money available,” Jones said. “The thing many people don’t understand is that school districts can only have 4 percent set aside in reserve funds. It’s barely enough to cover a payroll.”

In response to the governor’s withholding of funds, several entities affiliated with state schools have banded together and filed a lawsuit against Paterson. The coalition, consisting of educational advocates, citizens and organizations like the New York State United Teachers and the New York State School Boards Association, contend Paterson’s actions violate the state’s Constitution.

While Salamanca school district officials are bracing for the potential impact of the delay in state aid, Jones said no school programs are slated to receive cuts.

“At this point in time, no programs in the district are in any danger of being cut,” she said. “However, we did receive a cut in our Extended School Day Grant (ESDG).”

Jones told The ‘Press the district lost about $26,000 in funding from the ESDG.

&l t;p>Through funds from the grant, the district provides educational enrichment programs for students, like Regents review courses and tutoring.

To compensate for the funding loss in the ESDG, Jones said district officials will reevaluate the programs covered by the grant’s funding.

In the mean time, Jones said she is concerned with future action the governor might make.

“I can appreciate and understand that the state has been in financial turmoil, and I understand that every entity needs to play a part in helping the state get through it,” she said. “But to wait until late in the game to (delay school aid) – especially when there are questions of whether or not it’s legal – makes it tough. I think it’s a pretty daring move and it sets a bad precedent for the future.”

“From a cash-flow perspective, (the district) still has payroll to make, utilities to pay and other financial obligations,” she continued. “When you’re relying on getting certain amounts of money at certain times of the year, then it can get tricky.”