Wake-Up Call For County, Schools
December 16, 2009
County and school district program administrators are preparing to do without state aid for the time being in the wake of Gov. David A. Paterson’s announcement Monday that $750 million in aid to school districts and local governments would be withheld in order to maintain the solvency of the State.
Paterson directed the Division of the Budget to withhold portions of STAR payments and school aid, such as funding for BOCES and special education programs, funding through Aid and Incentives to Municipalities (AIM), payments to cou nties for human service reimbursements and reimbursements to health insurers for state employee fringe benefits.
Statewide, $436 million in STAR payments, $146 million in school aid, $45 million in AIM funds, $76 million to counties and $47 million for state employee benefits will be withheld.
According to the Governor’s Office, the State “will potentially pay the amounts that were delayed” as sufficient revenue becomes available.
The statement continues: Paterson “reserves the right to institute further payment delays over the remaining months of the fiscal year in order to preserve the State’s cash position.”
Administrators and buisness officers in Greene County say they will continue “belt tightening” as the year progresses proceed with caution as next year’s budget process begins. However, they remain optimistic that the State will disburse the funds at a later date.
Interim County Administrator Dan Frank said early Tuesday afternoon that only the County’s Child Welfare Services would be affected by the Governor’s decision.
Frank said he was still waiting for full information regarding the $179,000 the Governor is withholding.
“Overall the entire economic climate is putting a lot of pressure on the County,” he said, adding that the County bears the burden to make up revenues lost by individuals who do not pay property or school taxes in full.
Department of Social Services Commissioner Kira Pospesel said she had not anticipated the delay in payment. Pospesel said she feared that the 40 percent of state funding being withheld would become a permanent cut written into, or out of, the Governor’s proposed budget.
“That is even scarier for us,” she said.
At least three school districts rec eived word of aid withheld Tuesday morning.
Catskill Central School District Superintendent Dr. Kathleen Farrell said the $85,000 in aid withheld from her district will effect the district’s flow of funds.
Farrell said the cuts may affect the timing of purchases but that the district will still function without the money.
“We are not anticipating any major deficit, it will just be in timing,” she said.
Farrell said the Governor had suggested that schools keep money in a reserve fund to be used if necessary. But, she said, using this money could leave Catskill, or any other school districts unprepared for an emergency.
“We understand that everyone has to pay some price but to have reductions come during the school year when there has been no planning for reduction makes it more difficult to manage,” she said.
She said she is optimistic that Paterson will restore the funds during the current school year.
Cairo-Durham Central School District Business Manager Lisa Jilek said a total of $97,739.31, or 10 percent of general operating aid, of lottery aid and of excess cost aid, would be withheld from her district.
The district has already placed a freeze on spending, she said, and is evaluating extra personnel costs such as overtime or substitutes.
“Everyone has to look at their cash flow to make sure there is enough cash on hand to meet needs,” she said.
She also said money may be directed away from her and other schools in the Governor’s proposed budget, which is usually released in December.
“We are bracing to see if are going to be any additional cuts,” she said.
Jilek said additional aid payments to the district are due in January and February.< ;/p>
Greenville Central School District spokeswoman Colleen Hall said at least $77,834 will be withheld from her district.
She said the status of the district’s 20 percent STAR payment, which the district is scheduled to receive in January, is unknown.
She said the district would lose revenue from interest and although the district would review all expenditures, it would wait to learn whether the money withheld will be released.
“We are not making any final decisions until we know it is officially a cut,” she said. “Right now it is hard to know exactly how to proceed until we have a final decision from the government.”
Other districts in the County had not received notification by mid-day Tuesday, but even their administrators are still concerned that delays or cut may still come.
Hunter-Tannersville Central School District Superintendent Patrick Darfler-Sweeney said he is waiting to see if he receives any official notice from the Governor’s office.
In the meantime, Darfler-Sweeney said his business office is conducting a cash-flow analysis to make sure all district paperwork is in line in case the district needs to apply for a revenue anticipation note in the future.
Darfler-Sweeney also said the Governor may not have the unilateral power to withhold the funds.
Dr. Earle Gregory, superintendent of the Coxsackie-Athens Central School District, said no specific information had been provided him on the aid funds.