Aid increases, GEA remains in governor’s budget proposal

The state investment in schools would increase by $807 million or 3.8 percent next year if enacted as outlined in Gov. Andrew Cuomo’s Executive Budget unveiled Jan. 21. The increase includes funding the governor has earmarked for the launch of several new education initiatives, including statewide universal, full-day pre-kindergarten.

Locally, the projected increase for Marcellus Central School District is $542,223, or 4.7 percent. However, only 1.5 percent of that increase is in the category of base aids.

The distinction between the two categories of base and expense-driven aid is significant, said Marcellus Business Administrator Anthony Sonnacchio.

“The base aids are permanent aid increases the district counts on from year to year to minimize increases in property taxes,” Mr. Sonnacchio said. “A 1.5 percent increase in base aids, in conjunction with the limited resources of our local taxpayers, falls short of the amount necessary to sustain the programming we currently provide for our students. We’re hopeful the Legislature considers realigning the governor’s proposal to help offset the aid cutbacks we’ve faced since the 2009-2010 school year.”

Governor Cuomo indicated that high-quality early education is one of the best investments to be made in education, but many schools do not have the space, staffing or equipment for such a program. He proposed spending $1.5 billion over five years to phase in the program.

“The state will move as fast as districts move,” the governor said. “It becomes a government chore to develop capacity.”

In addition to universal pre-kindergarten, Gov. Cuomo also proposed a $2 billion bond for a Smart Schools initiative to go before voters in November. If approved, the bond would give schools money for infrastructure improvements related to high-speed broadband access and classroom technology (e.g., smartboards, tablets). Schools could also use the funds to construct new pre-kindergarten classrooms, if the funds allow or if they prefer. The state would distribute the funds to schools based on the existing state aid formula.

Other new education initiatives in his proposal include:

• Investing $720 million over a five-year period in afterschool programs. Districts would have to submit plans to the State Education Department for approval.
• An $8 million SUNY/CUNY full-scholarship program for the top 10 percent of high school graduates. Eligible graduates must pursue careers in science, technology, engineering or math and work in New York State for five years following graduation from college.
• A $20 million Teacher Excellence Fund that would allow teachers rated as “highly effective” to be eligible to receive rewards of up to $20,000 annually.
• Officially eliminating standardized tests for students in grades K-2. Currently there are no state assessments in those grades.

Remaining in his proposal is the Gap Elimination Adjustment (GEA), which was introduced in 2010 as a way for the state government to close its budget deficit. It did so by spreading the funding shortfall around to all school districts through a GEA reduction to the overall Foundation Aid due to schools. Despite New York’s anticipated surplus, the governor’s proposal calls for only a partial restoration ($323 million) of funds withheld from districts through the GEA.

Marcellus has lost $7.8 million to the GEA in the last four years.

“Over the past four to five years, we have endeavored to confront the reality of limited resources while striving to protect the strong educational programming our community has come to expect,” Superintendent of Schools Dr. Craig J. Tice said. “It has not been easy by any stretch of the imagination.

“After Marcellus was identified as a school district in fiscal stress in both 2007 and 2008, the Board of Education mitigated the loss in state aid attributable to the GEA with the careful use of reserve funds,” Dr. Tice continued.

In fact, a recent report by state Comptroller Thomas P. DiNapoli indicated the Marcellus Central School District was not in fiscal stress and had a stress rank of 417 out of 674 (with 1 being the highest fiscal stress and 674 the least fiscal stress), Dr. Tice noted.

“In comparison, about 23 percent of the school districts in Central New York – and 13 percent statewide – found themselves in some form of fiscal stress,” Dr. Tice said.

The Executive Budget also proposes a two-year property tax freeze for homeowners residing in school districts that meet certain conditions. During the first year of the freeze, a district would have to pass a budget with a levy that stays within its property tax levy cap. During the second year, in addition to again staying within its cap, a district would have to agree to and implement a state-approved plan for shared services and consolidation.

Last year, 96 percent of school districts, including Marcellus, were able to stay within their property tax levy caps largely through reductions to programs, services and staff.

Visit http://www.budget.ny.gov/ for more details on the governor’s budget.