BC News

Governor's budget proposal signals difficult decisions ahead for BC
Release Date: Dec. 17, 2008

Under the proposed budget released by Governor David Paterson on Wednesday, the district would have to grapple with a significant state funding cut in its 2009-10 budget, including a more than $2.2 million loss in anticipated aid as part of the state's deficit reduction efforts.

This $2.2 million figure is more than 9 percent of the district's total state aid package in the current year.

"We are still combing through the details of the Governor's proposal, but it's safe to say these figures are concerning," Dr. Tebbano said. "Essentially, there are only two options to make up for every dollar that is not received in state aid - property taxes and cuts to programs and services. As always, we'll work to control costs wherever possible, but a cut on this scale could result in significant programmatic reductions or eliminations."

Dr. Tebbano noted that the Governor's proposal is now in the hands of state legislators; the state budget deadline is April 1, 2009 - although the Governor is hoping that the Legislature will act on the proposal by March 1.

In his budget proposal, the Governor indicated that school foundation aid - aid on most operating expenses - would remain flat for the next two years. However, because of the dire economic times, all districts would receive a "Deficit Reduction Assessment" (DRA) – a one time cut for districts designed to help the state close its own budget gap. For Bethlehem Central, this figure is $2.28 million.

In recent years, the trend has been for state aid to increase to help offset rising school costs - many of which are mandated and beyond local control. If enacted, the Governor's 2009-10 proposal would leave the district with the dual challenge of coping with the state aid loss at a time when the cost of running a school system continues to climb. The Governor's proposal also would shift an additional cost to districts in the form of preschool special education - a responsibility that has historically been borne by state and county governments.

"I understand that state leaders have a responsibility to address the fiscal crisis and state deficit," Dr. Tebbano said. "Our mission, however, is to maintain a high quality program that meets the needs of all students while holding the line on taxes for our community. Clearly a significant reduction in state aid and the shifting of additional costs to districts renders this task difficult."

According to Dr. Tebbano, the district's existing budget was carefully and conservatively crafted, meaning that areas to cut costs without affecting students will not be easily identified.

"It is important that everyone understands the magnitude of what has been proposed," he said. "We will continue to be as creative and cost-effective as possible, but it's hard to imagine reducing spending on the order of what may be required without taking a hard look, as a community, at some areas that would be incredibly painful to eliminate or cut."

"For this reason, the community's participation in the upcoming budget forums is essential in a year when budget priorities will help guide some difficult decisions," he added.

A series of four community budget forums will begin on January 12. Since enacting a precautionary non-essential spending freeze earlier this fall, district officials have conducted a close review of the district's finances. This information will be shared as part of the budget forums. (See Web site for a full schedule).

Under the Governor's proposal, total aid to the district would decrease by nearly 6 percent, or $1.28 million. However, that figure reflects an estimated $800,000 in new aid related to full-day kindergarten start-up costs.

After adjusting for that $800,000 - because it is not part of the current year's budget - a more than $2 million cut remains to state aid that helps fund existing programs and services.

The district will continue to monitor state budget developments and will report on their implications for the community on its Web site and at the community budget forums in January and February.

Dr. Tebbano said that he was encouraged to see that the Governor budget includes some measures to help districts control costs, including some mandate relief.

“I hope state leaders consider these items and additional efforts to help districts contain costs,” he said. “To the extent that the state can pass much needed relief, it will help districts absorb any cuts in aid while preserving their core academic programs to the greatest extent possible.”

 

 

 

 

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