The D&C, Nov. 13, 2008, reported that Gov. Paterson has proposed a reduction in NYS school aid for the current (2008/09) school year.  Is the educational sky going to fall?

Personally, I am opposed to mid-year adjustments in NYS school aid

However, NYS embarked on unprecedented expansion of school aid under Gov. Spitzer (2007/08).  As usual, the NYS legislature did not critically look at our state’s financial health.   Let’s remember that NYS school aid comes from NYS taxes.  I warned of this eventuality at a Board meeting last year.  Unfortunately, it is “time to pay the piper”.

We can look at the NYS school aid numbers in a more understandable manner using the actual NYS aid percentages.  Let’s say:

In 2006, your rich uncle gave you $1,000.

In 2007, this nice uncle gave you $1,047…a 4.7% increase.

In 2008, this very generous uncle gave you $1,229…a huge 17.4% increase over 2007.

In 2009, this uncle promised you $1,379…another large 12.2% increase over 2008.

Today, the uncle’s financial condition is in the toilet so he says he has to cut back on his promise.  You, of course, tell him that you counted on that money and it has already been spent.  He is sorry, but he is in serious financial difficulty.

He says he must reduce his gift by $108 (7.8%) of the $1,379 that he promised.  You still will get $1,271.

$1,271 is a 3.4% INCREASE over 2008.  It is a 27% increase over 2006.

Yes, it is not the 12.2% that you thought you were going to get.  But for the current economic times, you can argue that 3.4% is a reasonable increase.

Of course, the primary problem is that you (the District) have already allocated all of the anticipated revenue.

Certainly, deciding where the District is going to find $983,000 (the proposed reduction amount) in mid-year is a serious task.

However, the FAIR Plan was rescinded.  This means that next year, the District will receive the normal (approx.) $1 million from the Sales Tax that was not budgeted this year.  The District will also receive an (approx.) $200,000 payment for back Sales Tax revenue that was not received this year.

Is the educational sky falling this year?  I believe there is a combination of financial approaches that will allow Brighton to weather the school aid reduction this year without affecting program or teachers.

The more pressing question:  How will the District deal with a 3.4% (or less) increase in NYS school aid next year?