Governor Continues to Threaten School Aid Delays/Cuts - NYSASBO Prepared to Join Lawsuit Against Governor If Necessary

Ever since the Legislature passed the deficit reduction plan last week, Governor Paterson has repeatedly stated that the $2.7 billion included in the plan is insufficient to balance the current state budget or to meet its cash flow needs and has threatened to withhold State Aid payments to schools coming due on December 15th. A limited delay of the payment that includes general aid, excess cost and VLT would be difficult but potentially understandable - an undefined delay that could drag beyond the school year would be devastating for many districts and very likely illegal.

As of this afternoon, it is uncertain what the Governor has requested of the Division of Budget (DOB) or what DOB will do regarding certification of School Aid payments. What does appear certain is that the State Aid payment will not go out by the 15th. Without action today by DOB there just isn't enough time.

New York State School Boards and the Council of School Superintendents have sent a letter to boards and superintendents asking them to detail the impact a delay and/or cut (in an amount consistent with what the Governor was seeking in November) would have on school districts. We encourage school business officials to work with their superintendents in providing information. If Governor Paterson does seek to unilaterally reduce school aid, this information will be useful in a potential lawsuit to enjoin the Governor from taking such action. NYSASBO has agreed to sign-on to such a suit if necessary. We expect word on the Governor's actions shortly - stay tuned.