Governor Paterson's letter about school aid for 2009-10
Although
the proposed mid-year cut in aid to New York schools is off
the table, Governor Paterson, in a letter dated Nov. 25,
makes it clear that a significant reduction in state aid to
schools next year should be anticipated.
“Fiscal management is all about making hard, painful decisions, and the rejection of a mid-year School Aid reduction by the Legislature means that deeper declines in funding for school districts will now be necessary in 2009-10 to ensure a balanced budget,” the Governor wrote.
“I understand the necessity to reduce spending during these economic times – to make moves to reduce the state’s deficit,” said Warwick Superintendent Dr. Frank Greenhall. “I applaud the governor for demonstrating leadership in confronting the state’s budget problems. As superintendent I fully understand the importance of trying to make a budget work and of having to make unpleasant recommendations to meet budget constraints.”
“My goal,” Dr. Greenhall continued, “is to minimize any impact on the students we serve. As a district, we are cognizant of the need to build the 2009-10 school budget under the constraint of the current cuts and within the parameters of future reductions or loss of aid. We do not expect the state’s fiscal woes to be cleared up with a one-shot adjustment in aid to schools.”
Immediate impact of financial crisis
The district has been proactive in dealing with the difficult economic climate by closely monitoring its spending, restricting certain budget areas in the current year, and postponing plans for capital project work. A series of short-term and long-range concepts are being discussed to address the current economic situation, while considering the needs of the students and the pockets of the taxpayers. The most immediate impact of the current financial crisis is that the Board of Education has postponed the Phase Two Capital Project work within the district that was to be voted on by the public on Dec. 16, 2008.
Even though the Phase Two work, funded from state aid from the Phase One project and the aid generated from the Phase Two work, could have been done with no additional cost to Warwick taxpayers, the Dec. 16 vote has been postponed because, as Dr. Greenhall explained, “With aid from the state in potential jeopardy, we felt that the district could not firmly count on a set future state aid rate. So, I cannot predict with total certainty that the Phase Two work could be done at no additional cost to the taxpayers.” Another reason for the postponement, according to Dr. Greenhall, is simple logic: “Would a homeowner replace windows or a furnace at a time when income was reduced if the windows and boiler currently served their function?” The collective response by administration and the Board of Education was an easy “no.”
SAVING FOR THE FUTURE
In trying to maintain the equilibrium between student needs and taxpayers’ ability to afford, the decision was made to postpone future work until better economic times when aid is certain. In the meantime, the Board of Education will propose a new capital reserve resolution for public approval during the budget vote in May. If approved, this fund would be used to offset future project work using currently available funds and aid generated by the Phase One capital project work within the district. The initial establishment of a capital reserve in June of 2006 is what allowed the district to have the Phase One project work done at no additional cost to taxpayers.
CUTTING SPENDING RIGHT NOW
For the expected loss of revenue, the
district is looking at everything that can be done to save
money, including reviewing all positions vacated by staff
retiring or leaving the district, energy usage, conferences
and reduction in expenditures for supplies and equipment.
Purchases of items not immediately necessary for instruction
have been stopped. Additional areas of savings are being
researched by building administrators, and this review will
hopefully allow the district to continue to offer the
caliber of program that students and the Warwick community
have come to expect.
“These are certainly interesting times we live in,” said Dr.
Greenhall, “and my hope is that by making tough decisions
the district can find avenues to continue programs without
putting a further burden on the taxpayers.”