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April 2002 Vol. XVI, No.4Legislative Update
Last week the Legislature left Albany for their
Easter/Passover break without having begun active State Budget negotiations. The
early March “three-way” discussions on how much revenue would be available
to the State in 2002-03 led many to hope that those negotiations could begin at
once. The disappointment felt at the Capitol was significant as some expressed
the sentiment “here we go again”. Senator Randy Kuhl, chairman of the Senate Education
Committee, spoke to small city school board members and superintendents at the
Association’s annual Legislative Breakfast on March 26th, 2002 and
somewhat dispelled that pessimism. Senator Kuhl began his remarks with a brief
review of last year’s budget dilemma. He said that by the last three months of
2001 the State was faced with some grim realities and that the provisions of
Chapter 383 were necessary to free up some $200 million in aid dollars badly
needed elsewhere. He went on to state that though there would not be an
on time State Budget early revenue discussions showed that the two Houses were
only $160 million apart in their projections and that closing the gap would be
easier than last year when the gap was nearly $1 billion. The two Houses also
had agreed that significant dollars must be added to the Governor’s flat
budget recommendation, that BOCES should be outside any Flex type aid, that
Teacher Centers/Support Aids should be restored, that Public/Private Excess Cost
Aids should be outside Flex Aid and that an inflationary increase at least
should be given through Operating Aid. These initiatives alone would cost an
additional $500 million but are “doable”.
He concluded by saying that a timely Budget was possible but that the
Legislature was contemplating shorter notice provisions for local school budget
votes as a way of giving the Legislature more time but allowing voters to vote
on budgets while knowing how much state aid their district would get. Assemblyman Steven Sanders, chairman of the Assembly
Education Committee, followed as a guest speaker. Assemblyman Sanders said he
essentially agreed with Senator Kuhl’s remarks. He said that last year’s
“base budget” was really the Governor’s budget, which the Legislature
passed with the intention of returning in September to add significant dollars
to education aid. Then turning to
the current State Budget he stressed that the Flex Aid approach was a good
approach for non-expense driven aids. He said he wanted to go forward with
Ladder Aids but slowly, to insure that the dollars will really be there. He said
the Assembly is also interested in doing something with the BOCES Superintendent
salary cap, with increasing the retained surplus from 2% to 3.5% or 4% and with
reform of the State Budget process. The Assembly wants an April budget and wants
to avoid the events of 2001 where school districts, which had learned how to
cope with late State Budgets by estimating probable levels of state aid, had the
rug pulled out by an abrupt “change in the rules”. President’s Corner The
association has put forth an effective lobbying campaign this year. In
March, Executive Director Robert Biggerstaff and several executive board members
met with legislators and the Governor's representatives to remind these
leaders of the needs of small
city schools. As always, our elected officials listened. Also,
I drafted an opinion piece that was published in local newspapers throughout the
state. I have always supported the idea of more public relations to inform our
school district voters of the unique needs of small city schools.
Thank you for your approval and comments of support. Our
annual Legislative Breakfast and Seminar held at the Fort Orange Club in Albany
on March 26, 2002 was well attended. The morning began with attendees abuzz of
budget woes. The front page of the local Times Union reported that the Albany
school district would cut 63 staff
positions to survive budget shortfalls. Other superintendents and school board
members had similar cuts and double-digit tax increases. Troy is putting before
voters a tax increase of nearly, 40%. On the other hand, Mount Vernon is adding
staff and expanding programs. At the breakfast, Senator Randy Kuhl, Chairman of the Senate Education Committee, and his counterpart Assemblyman Steve Sanders gave their views on the Executive budget and other pertinent topics. Surprisingly, these two gentlemen actually agreed on several issues, especially, state education budget issues. Both acknowledged the devastating events of September 11th, 2001 would create budget shortfalls because of state revenue losses. Assemblyman Steve Sanders predicted that the budget would be passed sometime in April. Senator Kuhl did not contest that idea. Their presentations and forecasts were very positive and showed a sincere effort to address the needs of educators.
This same sincerity among legislators was mirrored during my recent trip to
Salamanca. Mark Ward, Superintendent of Salamanca City School District,
organized and hosted a meeting of Southern Tier school districts and invited the
Association to take part in a televised panel on Equity Issues. I represented
the Association on a panel of at least
20 organizations including CFE, NYSUT, the
Governor's office, and two legislators from Olean. Assemblywoman
Catharine Young predicted a state budget by April 15, while Senator Pat McGee
gave tacit agreement. Is
it possible that legislators will now do the
right thing and pass the state budget in a timely manner? More
importantly, will the budget address the needs of our students in small city
school districts? An affirmative answer will only come through our continued
lobbying and public relations efforts. I
encourage all members of the association to participate in our post card
campaign. The postcards ask our
political leaders to improve equity, increase Hurd Aid and provide debt ceiling
relief to permit our districts to repair school facilities. Please contact
Robert Biggerstaff with any questions or feedback regarding this effort at
518-462-5300, 518-436-0210(fax) or reb@degraff-foy.com. March 26th
Legislative Breakfast The question and answer period that followed Assemblyman Sander’s and
Senator Kuhl’s presentations
was of particular interest. The following is a summary of the highlights of that
dialogue: Tom McGowan: What happens
if CFE is defeated on appeal? Assemblyman Sanders: The
purpose of state aid is to compensate for district wealth and student need. We
will continue our efforts to achieve that. We should get rid of the transition
cap and save harmless next year. Senator Kuhl: The Senate
currently has no plans in the event of a CFE defeat Dan Lowengard: Shortening
the time for school budget notices is not feasible. The Hurd Aid formula
doesn’t work anymore. Not raising taxes in Albany (Senator Kuhl had said taxes
would not be raised to support increases in the State Budget) only means they
must be raised locally. Lonnie Palmer: 27% of
Albany CSD’s budget is state aid; 70% of its property is tax exempt; 60% of
students are on the free and reduced price lunch program. There is $25 million
in the Charter School Stimulus fund proposed by the Governor. Why not give $2500
per student to districts with charter schools? Why not share the $10 million
pilot payment given to the city with the school district? Assemblyman Sanders: The
state aid formulas do not account for poor districts with high percentages of
tax exempt property. This must be changed. District payments for charter schools
should be aidable. Fixed costs do not decline when students leave to attend
charters. Also, payments to charters should be aligned with the actual costs of
operating the charter schools. Parents want a choice in schooling but the jury
is still out on the effectiveness of charters and their effect on the public
schools. We limited the number of charters at 100 and the experiment is
worthwhile. Senator Kuhl: Use of the
stimulus fund will be looked at as well as the issue of tax exempt property. Ronald Ross: What are
the Legislature’s thoughts on the new standards and assessments? Assemblyman Sanders: I
compliment the commissioner and the chancellor on tackling the standards issue
but do not believe the only way to assess is through high stakes testing. The
current system is a little too rigid but I believe there has been meaningful
progress nonetheless. Barbara Gaffuri: The State
has asked Albany CSD to take more high needs students. Has any thought been
given to compensating for that? Assemblyman Sanders: The
Legislature will reject the Governor’s proposed freeze on Excess Cost Aid and
should look at the costs of mainstreaming. March 26th
Seminar The breakfast was followed by an appearance by the commissioner, a presentation on Academic Intervention Services (AIS) by Tom McGowan, superintendent of Glens Falls CSD and Carl Militello, superintendent of Dunkirk CSD and a presentation on changes in building aid payments under Chapter 383 of 2001 by Jeff Pohl, chief counsel from the NYS Dormitory Authority, Charles Szuberla of SED and John Puig of First Albany Corporation. Commissioner
Mills began his segment of the morning with a brief address
and stated that schools needed $599 million in education aid increases this year
at least, 87% of which should go to high needs districts. He also commented on
the teacher shortage issue, which he believes has gotten to crisis proportions.
Questions followed: Charles Dedrick: The
real issue in education is not money, but the division in resources over all
between the haves and have-nots. It is a class issue where poor communities do
not have access to better schools, or to private schools. What is the long term
effect of this? Commissioner Mills: The new
standards only apply to public schools. Parochial schools have voluntarily
complied. About 75 others like Dalton and Greely give no Regents exams. The
report cards coming out will show a shocking disparity in performance by race
and poverty, even in wealthier districts. Some poor districts have figured out
how to improve performance. These results must be replicated elsewhere. Lonnie Palmer: Do we need
to tell the public about improvements that have taken place over the last 10
years? The report card is not the whole message. Commissioner Mills: I
strongly agree. Barbara Gaffuri: Student
mobility is high and affects report card results. Commissioner Mills: This is
true and we need to look at tracking students. Presentations
on Academic Intervention Services then followed and Carl
Militello and Tom McGowan accompanied by their program directors reviewed AIS
programs and experiences in their respective districts. They spoke about the
criteria in Dunkirk for determining the need for AIS in primary, middle and high
school levels. They also described
the available support services, the delivery of services and staff development.
In Glens Falls the teachers were given specific goals, e.g. one year growth on
the Terra Nova test and 85% passing the Regents exams, to provide a connection
between the AIS program and the overall curriculum. The program serves about 10%
of the students. The class size there is about 18 to 19 and attendance between
88-92%. One program of particular success is the homework club with Adirondack
Community College students as tutors. Each district
provided materials, which were handed out explaining the programs. Anyone
desiring a copy of those materials should contact Nancy DePaulo, nd@degraff-foy.com.
Our thanks go out to both districts for their excellent presentations. Building aid
payment changes under Chapter 383 were then discussed by
representatives of SED, NYS Dormitory Authority and First Albany Corporation.
Chuck Szuberla of SED provided a memo (which you should have already received)
dated March 2002 giving answers to the many questions that have arisen regarding
the implementation of the complex provisions of Chapter 383. He summarized the
context in which 383 was passed and explained that building aid had grown from
$680 million to $1.7 billion annually over the last four years. He also stated
that during that period high need districts and NYC spent far less on capital
facilities than the wealthier districts did. Something had to change, he said.
Questions followed: Charles Dedrick: When the
assumed interest rate was 5.38 use of DASNY was not attractive but the rate has
been lowered? Charles Szuberla: Yes, the
rate is now 4.5. It will be revised every 10 years at least and the revised rate
may apply to existing debt unless financed through DASNY. Existing debt must be
refinanced by July 1, 2002. Waivers are possible under limited circumstances.
Only four small city districts are over the constitutional debt ceiling and only
one other within 25% of the ceiling. Waivers will only be available if: 1) the
refinancing pushes a district within 95% of the ceiling, 2) bonds were already
refunded once, 3) tax exempt status on bonds would be lost, 4) the project would
be paid off in 2002-03 in an amount less than $500,000, or in 2003-04 in an
amount less than $500,000, and 5) the refinancing would cause a negative cash
flow for the State. Either the state portion or the whole debt may be refinanced
at the district’s option and refinance costs on the state share are 100%
reimbursable and on the local share are aidable. Jeff Pohl and Cheryl Ismael
from the Dormitory Authority and John Puig from First Albany Corporation spoke
on the availability of financing and refinancing through DASNY on a pooled or
individual basis. John Puig emphasized that districts with weaker credit ratings
would benefit from DASNY financing and be able to access lower interest rates.
(Subsequent conversations with Jeff Pohl have revealed that the DASNY board of
directors will be reviewing the Chapter 383 financing program this month and
expect to give final approval to proceed by early May.) John Puig also provided
explanatory materials which are available upon request. Dates To Remember May
31, 2002 12:00 August
18 & 19, 2002 |
Albany
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