JANUARY 15 UPDATE: Governor Paterson has announced that schools will receive the delayed portions of state aid from December as well as the delayed STAR payments from January. The full-day kindergarten grant are still delayed until next fall.

December 2009

State aid delays, reductions leave $1.68 million in doubt at Scotia-Glenville

State aid payments to school districts throughout New York were reduced by 10 percent or $750 million in December because of the state's budget situation and future STAR payments would be cut by 19 percent or $436 million in January.

Educational labor unions and groups have filed a lawsuit against the governor to prevent these reductions. State legislative leaders have also signaled that the governor's action is likely illegal.

Scotia-Glenville to receive $95,063 less in delayed state aid in December
With the state aid reductions in December, Scotia-Glenville stands to receive $95,063 less than was expected, as detailed below. The governor is saying this is a "delay" and will be replaced once the state's budget looks healthier in the spring.

"Scotia-Glenville will be able to handle this type of reduction in state aid in the short term," said Superintendent Susan Swartz. "If this were to become a permanent reduction, following by overal reductions in the 2010-11 school year, the situation would become much worse."

STAR reduction of $722,000 in January
In January, the state has announced that it will reduce STAR (State Tax Relief) program payments to schools. As it now stands, each propertyowner receives a STAR reduction in their tax bills each September. That money is replaced by the state to the local school district.

In Scotia-Glenville's case, a payment of about $3.8 million was expected during the current school year. So far, a $154,000 payment had been received and an additional $3.7 million payment was due in January.

A 19 percent reduction of the STAR total is about $722,000 - equivalent to 3 percent on the Scotia-Glenville tax rate.

"That type of reduction would be much more difficult for Scotia-Glenville to absorb from its reserves," added Swartz.

She said that the Board of Education would have to consider a variety of mid-year options, such as freezing spending, eliminating positions and other measures to be sure the school district's finances remain in tact.

Delayed Full Day Kindergarten grant payment totals $866,000
On top of the announced measures from the state, an $866,000 grant payment to convert to full-day kindergarten due to be paid to Scotia-Glenville in June 2010 will be delayed until at least September 2010.

The state has told school disticts that they would be able to count that Sepember payment as revenue for the 2009-10 budget year at the end of the school district's fiscal year June 30, though the money won't be forthcoming until three months later at the earliest.

That delayed funding will create an immediate problem as the district attempts to fund its summer budget, before taxes are collected and state aid received for the 2010-11 school year.

Total: $1.68 million in delayed/reduced payments
In total, the delayed aid in December, delayed/reduced STAR payment in January and postponement of the full-day kindergarten conversion aid totals $1.68 million. If that total amount has to be made up by taxpayers, it would account for a 6.9 percent tax increase before deliberations even begin on the 2010-11 school budget.

Announced reductions in state aid by the state will have the following impact on Scotia-Glenville: