Governor recommends $1.1 billion (5 percent) cut
in School Aid statewide

In his State budget proposal, Governor Paterson called for a $1.1 billion (5 percent) cut in school aid statewide. Similar to last year, a bottom-line reduction is applied against total aid (excluding Building Aid and Universal Pre-kindergarten Aids). This time the bottom-line reduction is called a “Gap Elimination Adjustment.” The GEA reduces aid by $1.4 billion statewide. The GEA is partially offset by increases in other aid categories to produce the net overall year-to-year cut statewide of $1.1 billion.

The Governor’s Budget explains the GEA this way: “The Executive Budget recommends a one-time $1.4 billion reduction to certain formula-based School Aid categories. This is comprised of a one-year $2.1 billion Gap Elimination Adjustment for the 2010-11 school year, partially offset by the use of the remaining $726 million of the American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization Fund - Education Fund award. The reduction is structured so that a low-wealth district will face a smaller percentage cut than a higher-wealth district. In addition, the GEA is adjusted for student need, administrative efficiency, and residential tax burden.”

How would the Governor’s Proposal affect Warwick?

Under the Governor’s proposed budget, Warwick would see $1.9 million less in state aid next year than the district received for 2009-10, leading to tough decisions facing the district as it crafts its 2010-11 school budget.

The actual net aid loss for Warwick, after accounting for increases in transportation and BOCES aid, is projected to be $1.4 million. Click here to see the state aid numbers (pdf) for all New York schools, with Warwick’s numbers listed on the bottom of page 52.

The loss in aid of $1.9 million is about an 8 percent reduction in the district’s total state aid package from the current year.

While it is early in the state’s budget process, the Governor’s proposal puts the Warwick Valley Central School District in the position of having to make some difficult decisions. “Every dollar that doesn’t come from state aid is usually made up through program cuts or property taxes.” said Superintendent Ray Bryant, “Like everyone else, our community is feeling the pinch of this economic crisis – we must respond by doing our best to cut expenditures wherever possible while still delivering an outstanding education to every student.”

Click here to see exactly what areas of the 2010-11 WVCSD school budget will be affected by the reduction in state aid, and by how much. (pdf)

State aid accounts for about 30 percent of the district’s budget. Prior to the recession, state aid had generally increased every year to help districts keep pace with the rising costs of running a school system. A cut in state aid, combined with continued rising costs, can result in a significant gap between expenses and revenues.

For example, this year the district’s budget is about $78 million. To run the same exact program next year would require a budget of about $81.4 million — about $5 million more than projected revenue, including the governor’s state aid proposal. The district would have to raise taxes by about 14 percent to make up this lost revenue – obviously not an option. Difficult decisions about cuts need to be made, and all areas are open for consideration. Some of the areas to be discussed at this Saturday’s Community Budget Forum at the Middle School include class size, transportation, athletics and the arts (art and music instruction).

Dr. Bryant said the district will continue to refine its own budget projections and list of potential reductions, which will be shaped ultimately by community input, state budget developments, and the Board of Education’s budget workshops in March.

Over 100 people come out for the Community Budget forum

Seeking input from the community as it begins to build the 2010-11 school budget, the district hosted a well-attended Community Budget Forum on Sat., Jan. 30.

More about the Jan. 30 Community Budget Forum