February 2006 Vol. XX, No. 2

LOBBY DAY A SUCCESS

Despite the snow, Joan Purtell, Association President, Bob Biggerstaff, Association Counsel and Andy Sattinger, Association staff made it to Albany to spend the day with various legislators and staff on January 23^rd as planned. The day began in Assemblyman Tedisco’s office where Association’s concerns were heard. The group then met with Greg Roberts and Kevin Muniz from Senator Paterson’s office (D-Senate Minority Leader), Mary Louise Mallick (Secretary, Senate Finance), Sean McKinnon (Senate Finance) and Michael Fox from Senator Bruno’s office (R-Senate Majority Leader representing Saratoga Springs CSD, Mechanicville CSD, Rensselaer CSD and Troy CSD), Jocelyn Dax, (Senior Assembly Ways & Means staffer), Senator Meier (R, representing Rome CSD, Utica CSD and Vernon Verona Sherrill CSD) and finally, Assemblyman Canestrari (D, representing Cohoes CSD, Rensselaer CSD, Troy CSD and Watervliet CSD). During each meeting the Governor’s Budget was discussed and it was recognized that many of his education initiatives would have serious negative implications for small city districts struggling with rising costs of “doing business” leaving them unable to maintain programming strength. Assemblyman Tedisco, Mary Louise Mallick, Senator Meier and Assemblyman Canestrari each said it was essential to help high need districts such as the small city districts this year.

The board will be scheduling additional meetings on February 27^th with Senate Education Committee Chairperson Stephen Saland, Senator Dale Volker and newly appointed Chair of the Assembly Education Committee, Assemblywoman Catherine Nolan, to continue the work of the 23^rd.

ASSOCIATION
PRESS RELEASE
AND BUDGET ANALYSIS

At the last Board of Directors meeting held January 22^nd in Albany, it was decided that the Association would issue a press release detailing its analysis of the Executive Budget. The press release includes comments from Association finance consultant Charlie Winters’ memo on the budget and is found below. The press release was issued on January 31^st to all major newspapers in the State. The Association is also scheduled to give testimony on the Executive Budget on Monday, February 6^th at the Joint Legislative Hearing on the Executive Budget.  

PRESS RELEASEPRIVATE

January 30, 2006              

FOR IMMEDIATE RELEASE         CONTACT: Robert E. Biggerstaff, Esq.
 Executive Director and General Counsel   
 Telephone: (518) 475-9500                             Fax: (518) 475-7677   

Small City Schools Dismayed by Governor’s Budget

The Association of Small City School Districts board spent most of Sunday afternoon last week reviewing the recently released Executive Budget for State fiscal year 2006-07. They concluded that Governor Pataki’s overall school aid package which totals $634 million in new money, or a 3.89% school year increase, is a relatively good start prior to the start of legislative negotiations but falls far short of its stated goal of helping poor schools.  Moreover, more than half of this money ($375.13 million) does not show in the released aid runs because it is to be held in a “Sound Basic Education Reserve”.  Thus, school districts looking at their own computer runs of formula aids will only see a disappointing 1.79% average increase (1.33% for small city districts). Most districts use the Governor’s aid figures to begin building the school budget in preparation for the may budget vote. A 1.79% increase will force many, particularly the poorest/high need districts, to make sharp cuts into essential program funding.

The net increase in formula aids of $275.32 contains the following provisions:

The Cuts: 

·        Once again the Governor recommends reducing the reimbursement rate of Private Excess Cost Aid to equal Public Excess Cost Aid.  This represents a reduction of $98 million in aid from last year.

The Adds:

·        Tax Limitation Aid is distributed on a gerrymandered formula to benefit higher wealth districts on Long Island.  The 35% increase in this aid is probably included to maintain the traditional “shares” of any increases in aid between and among regions of the state. 

·        Similarly, a new Fiscal Stabilization Grant of $40.20 million is added to New York City as a bullet item, to bring its increase up to the state average.  This kind of patchwork gimmickry should be offensive to the courts and to every high-poverty district in the state.

No change: 

·        Transportation Aid, Public Excess Cost Aid and Building Aid formulas are left in place.

·        Textbook, Hardware, Software, and Library Materials formulas are left in place.

Frozen:

·        Once again the Governor recommends the lesser of a freeze in BOCES Aid or the formula calculation, if it produces a decrease.  This would have a far harsher impact on poorer districts such as the small city schools.

·        Flex Aid (including old Operating Aid plus several others) is frozen.  This is over half of the overall school aid, and is often more than half of all funding for poorer districts.  This is highly disequalizing and a slap in the face to aid reform.

The Mystery

·        The Sound Basic Education Reserve represents almost 60% of the total increase without any allocation formula specified.  This amount could be used up merely to restore the proposed cuts in Private Excess Cost and BOCES Aid, leaving a truly disastrous year for the small city and other poor districts whose taxpayers and students are already badly served by state aid.  In order to make any progress toward reform, the Legislature will need to add substantially to this package, and almost all of the adds must be highly targeted.  Retaining the Governor’s proposed cut in Private Excess Cost Aid would free up almost $98 million for targeted aid.

Once again the Executive looked out for wealthy districts on Long Island while ignoring the mandate of the Court of Appeals.  As usual, the heavy lifting required to accomplish meaningful education reform is left undone. 

STAR 

The Governor also found another $530 million for a new $400 property tax rebate scheme for residents of districts that stay below the budget cap—basically, an heavy handed attempt to create an incentive to vote down the local school budget.  The Governor makes no distinction between high spending, low tax districts, and struggling, high tax districts.  This funding can certainly be put to a better use. 

Education Tax Credit 

The Governor found $400 million to pay for $500 income tax credits (read mini-vouchers) for families with incomes below $90,000 in school districts with under-performing schools. 

The Association’s President Joan Purtell, board member from Binghamton CSD stated “once again education funding is going in the wrong direction. Only lip service is being paid to the need to strengthen schools in our poorer communities. The governor and the legislature need to stand up for the kids in our districts and do what is right this year.” She also said that there appears to be enough money available this year to allow the State to make substantial progress toward school aid reform.  Unfortunately, it is often more tempting to do a large number of insignificant things than to accomplish any one important thing.

DEBT CEILING LEGISLATION UPDATE

Bob Biggerstaff has been in touch with Senator Volker’s office and was told the Senator has expressed interest in introducing a bill that will eliminate building aid from the debt ceiling calculations. Assemblyman Canestrari, sponsor of the bill in 2003, will introduce the bill in the Assembly. This legislation will have a major impact on capital plans in those small city districts close to or over their Constitutional debt ceilings.

SMALL CITY SCHOOL LITIGATION UPDATE

The return date on the Attorney General’s motion to dismiss is scheduled for February 21^st. The return date is the date on which the motion papers, for and against, are delivered to the Judge for his review. Both the AG and the Association have requested permission to argue the motion orally before the Court. This request has been denied. However, depending on the nature of the AG’s reply to the Association’s papers, this request may be renewed next week. In any event, a decision on the motion is expected within two months.

ASSOCIATION BUSINESS

The Board of Directors has asked Bob Biggerstaff to write a letter to Senators Schumer and Clinton regarding the Title I funding loss and to depict the plight of small city schools. They want to be “on record” at least in opposing the decrease in this essential funding. 

The Association will also be exploring progress made on the $2 million TLQP Grant (Teacher Leadership Quality Program) obtained in 2003. This grant is intended to improve math curriculum and teaching in the 8^th grade. It is being administered by SUNY-Binghamton, SUNY-Albany, St. Rose College, Sage College and St. Mary’s College in conjunction with eight small city districts, Glens Falls CSD, Newburgh CSD, Beacon CSD, Poughkeepsie CSD, Hudson CSD, Utica CSD, Elmira CSD, and Binghamton CSD. Early reports of test improvements are encouraging and are of particular interest in view of the Regents’ changes to the Math curriculum and the Governor’s proposals for Community College collaboration to improve Math and Science performance.

The Association would like to welcome its newest board members. Edward Brown, President of the Board of Education at Albany CSD, replaces Scott Wexler after his resignation from the Albany Board. Marilyn Skermont, Superintendent at Utica CSD has replaced Dan Lowengard, who has taken the position of Superintendent at Syracuse CSD and Michael Shea, Superintendent at Oneonta CSD. Thomas Woodhull, Board of Education member, Newburgh CSD has also agreed to serve. He replaces Tom Fitzgerald who resigned from both his BOE and the Association’s board of directors. We welcome them all to the Association and are grateful for their willingness to serve.

MIDDLETOWN
CSD
ANNOUNCES OPENING

UPCOMING
EVENTS

February 27, 2006
Board of Directors Lobby Day
12:00pm to 3:00pm
Meetings with Senator Dale Volker, Assemblywoman Catherine Noland and Director John Cape, Division of Budget
Capitol, Albany 

March 21, 2006
Association Legislative Breakfast and Seminar
8:00 am to 12:00 pm
Fort Orange Club, Albany
SPEAKERS:
Senator Stephen Saland, Chair, Education Committee
Assemblywoman Catherine Nolan (tentative), Chair Education Committee
Comptroller Alan Hevisi
Superintendent Daniel Lowengard, Syracuse CSD

 May 21 – 22, 2006
Annual Conference
Gideon Putnam, Saratoga Springs