July 2001 vol.XV, no.7   

 STATE BUDGET UPDATE

 The State Legislature has returned to Albany with the Governor’s blessing twice so far this month in order to pass continuing resolutions to fund basic government operations.  Each time the “extenders” have had a one week duration, insuring the Legislators’ return the following week.  The next scheduled sessions will be held the week of July 30^th.  As of the date of this newsletter, Senate and Assembly leadership are trying to work out a “bare bones” budget which would allow school districts to know how much aid they will get before their tax bills go out.  This approach would leave the more contentious, and much smaller appropriations for later negotiations in a supplemental budget, and would reverse the Assembly’s stance on requiring a three way budget which covers all issues. The unfortunate consequences of this approach are only now becoming fully apparent. For example, the bare bones budget will use the Executive Budget spending parameters for education ($14.1 billion or a $382 million increase). A number of districts budgeted for greater amounts of state aid and will have to adjust projected tax levies upward or cut programming. The Executive Budget also project a $12 million decrease in Hurd Aid. Despite the Legislature’s rejection of that proposal, in the short term, so long as the bare bones budget is in place, districts will be without any assurances that Hurd Aid losses will be restored.

 

The Association has contacted both Houses and the Executive, personally and in writing, to express dismay at this turn of events. While details of the Budget are being worked over the next few days, it will not be clear how  specific Executive proposals such as the changes to building aid amortization will be handled. Many of those changes were essential to the overall structure of the Governor’s Budget. It will be difficult to use his spending parameters but pick and choose among his various proposals. We  previously sent materials to each district outlining the position of the Governor and each House on state aid to education for 2001-2002.  We hope this has been of some help at this time. However, in view of this week’s developments, districts are in an even more complex  environment concerning their tax levies and budgets. We urge each small city district to contact ists representatives to express the need for a full, fair and prompt budget. Give us a call if you have questions or think we can be of  assistance.

 

The Association has also continued to monitor specific small city school concerns related to the budget.  These include insuring greater aid equity through transition cap reform and the Hurd Aid freeze, working for an increase in the minimum Hurd Aid several districts received last year and advocating for austerity budget cap reform.

 

With respect to Hurd Aid, both Houses supported a continued freeze in Hurd Aid very early in the session, rejecting the Governor’s failure to include a freeze in his budget.  In addition, the possibility is still alive that the minimum Hurd Aid (.004 of TGFE) authorized in last year’s budget would be increased to .01 of TGFE.  The Kuhl/Kolb bill, S.2570/A.2126, was moved to the Senate Finance Committee but held (killed) in the Assembly Education Committee.  Nevertheless, the increase could be included in items considered in budget negotiations.  It would be of particular help if those districts affected by the increase contacted their representatives in both Houses to ask for support on this.  We believe that the following districts would benefit from the increase from .004 to .001 of TGFE:

 

(LIST)

 

LEGISLATIVE UPDATE

Several important bills/issues have been the subject of attention the last few weeks:

 1)  Debt Ceiling on Small City School Districts

            Senator Kuhl and Assemblyman Canestrari introduced bills this session to remove the Constitutional limit on borrowing in small city districts (S.4766/A.8680) and to increase the statutory limit from 5% to 10% (S.4765/A.8681).  S.4766/A.8680 is currently in the Assembly Judiciary Committee, respectively.  Since an amendment to the State Constitution requires passage of a bill in two separate Legislatures and approval on a statewide referendum, the earliest these bills could be effective would be in November 2003.

 

            A shorter term, but perhaps almost as effective, solution is currently under discussion.  Central school districts do not include amounts to be received in building aid in the computation of their debt ceilings under the Local Finance Law.  This provision is statutory and possibly could be amended to cover small city districts as well, without the need for a Constitutional amendment.  Exclusion of amounts received as building aid from the total debt of a district is only a partial solution.  Nevertheless, it would free up considerable room under the cap, permitting districts to finance projects without the awkward financial structuring currently being used in many cases.  Discussions have started with the Senate Education Committee.  When it becomes clear whether this approach is feasible or not, we will be contacting the small city districts which have expressed interest in the issue.

 

2)            Fingerprinting Requirement for New Employees

 

            Legislation passed last year requiring fingerprinting and clearance checks on all new employees and employees of district contractors caused much commotion this Spring as the July 1^st effective date grew near.  The Department issued regulations in June settling the issue over contractors’ employees by allowing boards to exempt those contractors’ employees who did not have direct contact with students.  The Legislature also weighed in by passing an amendment, albeit 17 days late, permitting provisional appointments of new employees without a clearance for a 90 day period in certain cases, among other things (S.3148/A.8898).  The attitude in Albany is that the problems with the Project SAVE legislation have now all been cured.  Please let us know if you have questions regarding implementation of the new regulations or the amendment.

 

3)            Unemployment Insurance Benefits for Non-Teaching Staff

 

     S.2954/A.7328 would permit non-teaching employees of certain educational institutions to qualify for unemployment insurance benefits during the summer months when not actively working.  This bill, introduced by Senator Saland and Assemblywoman Nolan, may have a sizable price tag which must be picked up local school districts.  S.2954 is in the Senate Rules Committee and A.7328 is on the Assembly calendar and can be approved at any time.  Association officers visited the Capitol late/last month to express dismay over this bill.  A memorandum in opposition has also been filed with both Houses.

 

 

 

 

SUMMER CONFERENCE-AUGUST 12^TH-13^TH

OTESAGA HOTEL, COOPERSTOWN

             The Association’s annual conference is only a few weeks away and preparations are almost completed.  We anticipate a larger than usual attendance, so if you are planning to come and have not signed up, let us know as soon as you can.

 

            The guest speaker for Sunday night, Professor James Garbarino, is the renowned author (Lost Boys and Parents Under Siege) and lecturer from Cornell University.  We are sure you will enjoy hearing him and be glad you had an opportunity to meet him.  The program on Monday focuses on new technology and its use in education.  The speakers will cover synchronous and asynchronous distance learning, how it can work in your district and what legal and administrative issues this technology will raise.