ALBANY, N.Y. (AP) -- As increasing gloom settles over New York's fiscal crisis, schools are preparing for, at best, no increase in state aid next year -- which could drive up local property taxes around the state.
David Albert, a spokesman for the state School Boards Association, says the organization has been advising members to prepare for school aid to stay the same. Some schools have already moved up their budget planning for the 2009-2010 school year from January 2009 to this month.
Gov. David Paterson said earlier this month that everything is being considered for budget cuts. He underscored that Tuesday, saying no part this year's budget will be spared cuts now that the state is facing a $1.5 billion shortfall. A month ago that was $1.2 billion.
``The state's budget gap has doubled to a projected deficit of $12.5 billion next year, a record amount for New York,'' said Errol Cockfield, a Paterson spokesman. ``The cuts we need to make are painful but the magnitude of the problem is so severe that no area of the budget can be immune from cuts.''
But school officials aren't ready to consider midyear cuts.
``You're in the middle of the school year, you've set the tax rate -- tax bills have already gone out,'' Albert said. ``You've planned your spending ... Midyear school cuts would be devastating.''
The association is advising members to start talking with the public now about the problems schools could face through cuts. It's also lobbying against any property tax cap proposals, saying it would be a blow if they get less aid than expected.
``Costs do rise every year, but districts -- even with flat aid -- are going to have to make some decisions about how to meet rising costs without increasing property taxes and without increases in state aid,'' he said.
Schools and the powerful New York State United Teachers union warn that cuts will lead to fewer teachers -- creating larger class sizes, fewer programs and layoffs. The state made midyear aid cuts in 1990, but that led to outrage by unions representing teachers and other public employees, who have become more powerful lobbyists and campaign contributors since then.
``The teachers union, in fact, has been a major beneficiary of the state's overspending -- this has been a golden age for them,'' said E.J. McMahon, the director of the fiscally conservative Empire Center for New York State Policy.
McMahon says it would be disruptive to alter school aid midyear, but it's impossible to balance next year's projected $12.5 billion deficit without cutting into it.
The majority of school costs -- about 70 percent -- go to personnel costs like salary, health benefits and pensions. Schools are promised another $2 billion increase in spending next fiscal year. State school aid is now more than $20 billion a year and per-pupil spending -- as a statewide average -- is among the highest in the nation.
NYSUT President Richard Iannuzzi said cuts in state aid would disproportionately affect poorer school districts. The union has been encouraging conversations about how to save schools money through consolidation of services. The union also supports raising taxes and efforts to get assistance from the federal government.
But Iannuzzi disagreed with Paterson's assertion that New York spends too much.
``It's not that the revenue has remained good and the spending has gotten out of hand,'' Iannuzzi said. ``It's that the spending has remained constant and the revenue has fallen off.''
From a budget of more than $120 billion, the state just has $54.9 billion left to spend this fiscal year.
Democrats in the Assembly and Republicans in the Senate said they are ready to work together with the governor.
``We will insist that New York does not walk away from its obligation to the education, safety and health of its citizens,'' said Dan Weiller, a spokesman for Democratic Assembly Speaker Sheldon Silver.
``We won't support midyear school aid cuts, tax hikes or cost shifts that force local governments to raise taxes,'' said Scott Reif, a spokesman for Republican Senate Majority Leader Dean Skelos.
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