The Initial Gale of the Financial Storm

Governor Paterson announced the details of his financial plan to cut this year’s budget by $2 billion dollars. It comes as no surprise that education funding is on the governor’s chopping bloc. The 2008-2009 budget is $120 billion, but the revenues to fund that amount have suffered as a result of the deepening recession battering the state economy.

Not only is there a shortfall in this year’s budget revenue, but the anticipated deficits for the future are draconian. It is projected that next year’s budget is facing a revenue decline of nearly $12.5 billion, and a forecast of the deficit for the next four years is $48 billion.

A substantial amount of Governor Paterson’s total proposed cuts are directed at school aid.

Under his proposal, the Yorktown School District would lose $972,837 in anticipated state aid, a 7.2% reduction.

“Midyear cuts would have a concentrated, painful impact on students – from pre-K through higher ed – and the neediest New Yorkers who rely on public services and who are already feeling much of the pain from the current crisis,” said NYSUT President Richard Iannuzzi. “I’m confident the governor recognizes this, but believes there is no choice other than the steps being proposed. We respectfully disagree. We are committed to constructive solutions, but they must focus on the revenue side.”

In addition, NYSUT will not reopen contracts to any concessions despite the state’s fiscal crisis. “I don’t see any local leader wanting to come to the table to give something up,” said Iannuzzi. “So, if there’s an incentive being offered in exchange for what they would be giving up, then local leaders may entertain that.”

The state Legislature will meet November 18 to take up the Governor’s proposals. Republican senators, who will still possess a majority in the Senate until the end of the year, are opposed to any mid-year state education cuts. How much of the governor’s proposal will be adopted, if any at this time, is in question. His recommended cuts in mid-year state aid may not survive legislative opposition.