Earlier this year, New York Governor Kathy Hochul released her draft executive budget proposal for 2024-25, including state aid runs for public school districts. While the proposal looks better for some communities than others, no local district officials are happy with what they’re seeing.
All 673 school districts in New York would receive less foundation aid than expected under Hochul’s plan, with around half likely to receive cuts of varying degrees. While foundation aid would rise by around $500 million under the executive budget draft, changes in the formula would mean around $420 million less than anticipated, particularly as the aid package was fully funded last year. The proposed changes center around the longstanding “Save Harmless” policy, which was designed to ensure districts don’t see a reduction in foundation aid from the previous year, even when their enrollment declines.
Statewide bipartisan opposition to the proposed changes to the foundation aid formula has been widespread, particularly as federal Covid-19 aid runs out later this year, and there is hope that the collective effort could make a difference.
Of the four school districts covered by Hudson Valley One, Onteora would be hit the hardest, with over $3 million cut from their nearly $8 million foundation aid package for the current school year. Overall, the Onteora Central School District (OCSD) would see a reduction in overall state aid of 29.02 percent, nearly three times as much as the closest district in Ulster County.
OCSD Superintendent Victoria McLaren said the potential cuts could be devastating for her district.
“Onteora faces drastic reductions in our state aid with the governor’s proposed budget,” McLaren said. “This has forced us to work on two budgets: one with the aid that the governor’s office has proposed, and one with a restoration of the ‘Save Harmless’ provision as all of our representatives have indicated they are fighting to have in place. We have been told by every representative that they are universally opposed to the cuts and that they are hopeful for partial or full restoration of our aid.”
The OCSD is already planning to close Phoenicia Elementary School at the end of the current school year, dropping them from three to two elementary schools.
“However, we were specifically working to avoid any staff reductions,” McLaren said. “We were only eliminating positions through attrition as appropriate. That is still our intention, but if the $3 million reduction in aid becomes a reality, we will be forced to implement additional cuts to programs. We intend to minimize the impact to students.”
The OCSD is urging concerned citizens to reach out to their state representatives in an effort to please their case, and have provided contact information: Legislative Action – Onteora Central School District
The New Paltz Central School District (NPCSD)would see a comparably minimal reduction in foundation aid of nearly $117 thousand under the governor’s proposed budget, but their overall state aid would drop by 6.63 percent. Like the OCSD, the NPCSD has seen its student population steadily decline over the years.
“We are facing a very difficult budget situation,” said NPCSD Superintendent Stephen Gratto. “Losing over $400,000 in state aid does not help the situation.”
Gratto added that the state aid situation is not as dire as in other districts because it doesn’t account for as high a percentage of their funding.
“State aid only accounts for about 29 percent of our budget while the tax levy accounts for about 69 percent of our revenue,” Gratto said. “So, we owe our taxpayers a great big thank you for their support. We could not stay open without them.”
Still, NPCSD officials estimate that their tax levy increase could be around 3.63 percent under current tabulations, perhaps a tall order for the public to approve.
“We are looking at all areas of our school (district) as we make a plan for balancing the budget,” Gratto said. “It is certain that some staffing cuts will be necessary and we are disappointed that some of our outstanding employees will be affected. However, our continually decreasing enrollment has made many cuts possible that would have been impossible just a few years back.”
In an early March press release, New Paltz United Teachers (NPUT) expressed concern about proposed cuts and their impact on the district’s students.
“Much of what is being proposed does not fully take into consideration its impact on student programming or how it will diminish student opportunities and available assets/resources,” reads the press release.“We are, and always have been, proud of what we have been able to deliver to our students, especially through the challenges we’ve all collectively faced in the last five years. Whatever difficult decisions must be made should have as little impact on our students as possible and keep the outstanding education that our members have always provided to our students intact.
“While a budget is a financial plan for the district, it is also a communication tool — it articulates the values and priorities of its schools,” continues the NPUT press release. “We, the New Paltz United Teachers, ask for the community’s support as we hold the New Paltz Central School District accountable to THIS priority — continuing to provide the outstanding educational programs and opportunities it always has for our students!”
Asked about the concerns addressed in the NPUT press release, Gratto said, “We actively seek input from all of our employees, parents, students and community members. Although it won’t be easy, we anticipate that we will be able to create a fiscally responsible budget that preserves all programs and fully supports our student’s educational needs.”
Gratto added that the district could address other budgetary areas using its fund balance.
“We have a modest fund balance — restricted and unrestricted — available to us,” Gratto said. “It is our intention to use a significant portion of our savings to create a balanced budget and to make money available for very necessary repairs and improvements.”
The Saugerties Central School District (SCSD) would see its foundation aid decrease by around $441,000, but their overall aid would increase by 3.17 percent under the governor’s initial salvo.
Like many other districts, the SCSD begins their budget process by rolling over their current year’s plan as a baseline, and then trimming or adding where they deem appropriate given the funding available. With a potential reduction in foundation aid and the end of federal pandemic aid, the SCSD is in a difficult spot, said Superintendent Dan Erceg.
“One of those positions that we have funded through the federal funds, we’re looking at to see which ones should be maintained, which ones should be reduced or repurposed, and how it can be most effective with our funds,” Erceg said, noting that the Covid funding included hiring social workers for each of the district’s schools.
“The mental health needs continue to be there,” Erceg said. “So how do we maintain that position?”
Like other superintendents, Erceg said he’d contacted state lawmakers to try and reverse the governor’s proposed funding changes.
“Many seem to be on board with reinstating the foundation aid,” Erceg said. “Maybe not necessarily getting that three-percent increase, but getting that money reinstated.”
Erceg shared a letter he’d sent to the SCSD’s state representatives, in which he said, “The Governor’s proposal will have a negative impact on students in the Saugerties Central School District and many other districts in our state.”
Among his requests, Erceg is asking the state to continue its financial commitment to universal pre-kindergarten, which he said was connected to the district adding additional student seats. Pulling funding could upend the district’s current UPK offerings.
“For the past two years, we have had 80 students in our program without a waiting list,” Erceg wrote. “There is not a demand for more UPK at this time, and we do not have space in our buildings to add additional classrooms. Instead, grant districts the flexibility to locally describe how to allocate the additional aid for UPK so that existing programs can be sustained. On Friday, January 26, I met with our UPK provider to discuss their projected $27,000 shortfall this year and $80,000 shortfall next year. The UPK provider is housed in our buildings and does not pay rent. We are at risk of losing our UPK provider and then the district will be left to end the program or ask our taxpayers to fund the program.”
In his letter, Erceg said the SCSD had already addressed its declining student population by closing Mt. Marion Elementary School several years ago; the building currently houses the pre-K program. He said reducing state aid could lead to difficult choices that might hurt students.
“Our enrollment is on a decline, but we are providing more support for our students than ever before,” he said.“Without action at the state level, and with our Covid-related federal funding running out, we may be making difficult choices between maintaining UPK or maintaining reading teachers. We may be deciding between maintaining our literacy and math instructional coaches or maintaining a social worker. We may be asking our already taxed psychologists, social workers, nurses and speech pathologists to pick up more responsibilities. Furthermore, we may be forced to eliminate enrichment opportunities that we know our students deserve.”
The only district within Hudson Valley One’s coverage not set to see a decrease in state aid is Kingston, which under Hochul’s proposal would see its foundation aid rise by nearly $3 million, and its overall aid rise by 5.21 percent. But Kingston City School District Superintendent Paul Padalino said the increase is lower than the state promised, particularly notable after they finally hit the mark last year after over a decade of coming up short.
“If the foundation aid formulas were to run properly, we’re about 25 percent short of what we were supposed to be getting under that,” Padalino said. “I know it doesn’t resonate with some of my colleagues who are looking at zeros, or even some reduction, but this is what we were supposed to be getting. And that was the point of putting the foundation aid formula together and running it, to make sure that we had predictability as far as our aid is concerned.”
Padalino said he will be curious to see how the numbers look when the budget is finally adopted at the state level.
“The pie is the pie,” he said. “How they cut it up is the issue.”
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