Colonie schools are preparing for the possibility of additional state aid cuts in January, according to school officials.
Gov. David Paterson ordered $750 million in reductions to scheduled December payments, according to his office, to cut into the state’s budget deficit.
The Division of the Budget forecasted a $3.2 billion deficit, and the state comptroller predicts the budget gap could be more than $4 billion. However, the states Deficit Reduction Plan enacted on Wednesday, Dec. 2, combined with administrative cuts, only included $2.7 billion in savings, according to a Sunday Dec. 13 statement.
As sufficient revenue becomes available, the state will potentially pay the amounts that were delayed, according to the statement. `He also reserves the right to institute further payment delays later over the remaining months of the fiscal year in order to preserve the State’s cash position.`
Tom Rybaltowski, assistant superintendent for business in North Colonie, said the district was operating under the assumption it would have all of its state aid, until two weeks ago when $61,000 were delayed due to state budget constraints.
`The bigger problem that we’re hearing about is the potential for withholding January’s aid,` he said.
The state could hold 19 percent of the districts STAR payments in, which would amount to $900,000, Rybaltowski said.
`We don’t know if the money is really delayed for a short time, or if it’s being cut mid-year,` he said.
Rybaltowski said the district is keeping its options open as far as how to make up the difference, and using reserves and making cuts are all potential solutions.
`We’re not waiting, we’re planning,` he said.
He said multiple plans, both for optimistic and pessimistic scenarios, are being drawn up going forward. He also said federal stimulus money that was promised last year has already been accounted for, and could not be used for January aid cuts.
Rybaltowski said the priority has always been to give the students the best education possible, and the district will continue to do so going forward.
South Colonie is also preparing for additional cuts, as it also has had December payments withheld.
The governor’s action amounted to an $88,100 loss in revenues to South Colonie Schools, according to information from the district.
`The Governor has said that during the next few months other monies, including STAR payments of $1.3 million due to South Colonie in early January, may also be delayed as part of the strategy for dealing with the state fiscal crisis,` the statement reads. `Although the Governor is saying that this money is just being lagged and will be paid in the future, some pundits are speculating that this lag may become a permanent cut. If this is the case, the district will be faced with some serious decisions on how to make up the money including possible mid-year staff reductions and spending freezes across the board.`
The New York state teachers union, NYSUT, filed suit claiming the governor took illegal and unconstitutional action by withholding funds.
`The district will continue to monitor this situation as further economic news is released,` according to the districts Web site.
“