WPCNR SCHOOL DAYS. From the Office of the State Comptroller Thomas DiNapoli. December 23, 2009(EDITED): School districts across New York state, including White Plains and New York City, face a potential funding gap of at least $2 billion when the American Recovery and Reinvestment Act funding runs out in 2011-12 unless federal aid is renewed or replaced by state aid, according to analysis released today by State Comptroller Thomas P. DiNapoli. Property taxpayers could face on average a 7.7-percent tax increase in 2011-12 to make up the loss in ARRA funds, assuming school budgets and state aid remain constant.

The White Plains School District according to Comptroller DiNapoli's Office  received $3,876,166 of its $13,736,444 in school aid this year from the American Recovery and Reinvestment Act funding that is due to expire. If the funds are not restored by Washington,  the district faces a 2.1% tax increase to replace those funds. This would based on other factors cited last week by the school district send the district budget well over the$200 Million mark in 2010-11.

Last week the School District Finance Committee heard Assistant Superintendent for Business, Fred Seiler detail that the district faced a $15 Million increase in expenses made up of $$2 Million (now $3.9 Million according to the Comptroller's figures) deficit in state aid, a STAR EXEMPTION DECREASE, $3 MILLION more in salaries, $3.5 Million more in pension costs, $4 Million in Health benefits, and replacement of about $3 Million decline in the assessment roll. The increase indicated by the Comptroller this week, if the ARRA is not extended, would mean if the City School District Budget does not cut expenses, the budget will top $203 Million.

"ARRA funding has helped ease some of the budget pain for school districts and taxpayers," DiNapoli said. "But that money stops in 2011-12, and when it does, New York’s schools face a $2 billion funding gap. That’s a big hole to fill. The time to start thinking about how to fill that hole is now, not when the money is already gone. It won’t be easy; schools are already facing financial problems. But this won’t just go away."

DiNapoli’s analysis found ARRA funds made up on average 5.3 percent of total school budgets in 2009-10. The school budgets most reliant on ARRA funds in their 2009-10 budgets are New York City (5.7 percent), the big four districts (5.1 percent) and high-need schools (4.9 percent). Low-need school districts face the smallest gap as ARRA funds represented just 2.4 percent of their 2009-10 budgets.

In upstate New York, school districts in Central New York, the Capital Region and the Finger Lakes ARRA funds made up 5.5 percent, 5.2 percent and 5.1 percent of their budgets on average in 2009-10 respectively. ARRA funds represented just 3.2 percent of Long Island school districts' budgets and 3.3 percent of Mid-Hudson Valley school districts' budgets.

DiNapoli’s analysis also found ARRA funding helped independent school districts hold tax levy increases to 2.1 percent on average, rather than an estimated 7.7-percent increase had ARRA funds not been available. Alternatively, school districts would have had to cut costs by as much as 3.2 percent without ARRA funds.

The state projects that foundation aid (the main source of school aid to most districts) will increase by 17 percent over the next three years. To backfill the stimulus funding and meet this commitment, the state would need to increase its share of funding by $4.1 billion, or 31 percent, between 2010-11 and 2012-13, an unlikely scenario given the state’s fiscal difficulties.

To view DiNapoli’s analysis, visit: http://www.osc.state.ny.us/press/arra-snapshot-121709.pdf.

To view a district-by-district breakdown of ARRA funding as a percent of school district 2009-10 budgets, visit: http://www.osc.state.ny.us/press/arra-percent-budget-by-dist-2009-10.xls.