Hochul's budget proposal may result in reduced state aid for certain Long Island school districts.

According to a recent Newsday review, Governor Kathy Hochul's proposed budget for the 2024-25 fiscal year could lead to the potential loss of state financial aid for dozens of Long Island school districts. The details of the budget announcement on Tuesday raised concerns about the impact it might have on the funding allocations for these districts, highlighting a significant development in the local education landscape.

Late on Tuesday, details of Governor Kathy Hochul's plan were disclosed in Albany, outlining a comprehensive package of nearly $35 billion in school assistance across the state. This substantial allocation of funds is a crucial aspect of the proposed budget. Despite the financial challenges implied by the plan, local school leaders held onto optimism, expressing hope on Wednesday that the State Legislature would step in to potentially restore funding for the upcoming school year. The anticipation for legislative intervention reflects the ongoing dialogue surrounding the budget's potential impact on education and the collective efforts to address funding concerns at the local level.

According to a Newsday analysis, the proposed budget reveals a mixed scenario for Long Island school districts. Approximately 77 districts are slated to receive over $182 million in increased state assistance, while 44 districts are expected to face reductions in state aid for the coming year. Notably, at least 18 districts are confronted with cuts exceeding 10%, indicating a significant financial challenge for those specific educational institutions. The analysis underscores the varied impact of the budget proposal on different districts across Long Island.

Many Long Island school districts may encounter financial setbacks in the 2024-25 fiscal year due to the governor's proposed budget, particularly with the elimination of the "hold harmless" provision. This provision, ensuring that districts receive at least as much aid as the previous year, has been a staple. Lawmakers, both Republicans and Democrats, are expected to engage in a battle not only for spending increases but also to retain the "hold harmless" provision, highlighting the contentious nature of the proposed changes and the potential for legislative resistance.

Superintendent Adam Fine expressed disappointment over the proposed cut, emphasizing the potential impact on East Hampton students. Despite the challenging situation, there's hope that the legislature will intervene to restore the necessary funding. The East End district specifically faces a significant cut, exceeding 20% in state aid, further underlining the urgency of securing adequate financial support for maintaining the quality of education in the region.

Newsday's examination of local district plans relied on statewide data from the state Education Department. The computerized lists, commonly referred to as "runs," offer detailed breakdowns of the distribution of almost $5 billion in the total proposed aid for Long Island. This data serves as a critical resource in understanding the allocation of funds and assessing the potential impact on individual districts within the region.

Superintendent Wayne Loper of the Valley Stream Central High School District expressed satisfaction, stating, "We are very happy that the governor has recognized the shortfall in funding we have experienced in past years and is bringing us up to the levels enjoyed by other districts." The proposed budget includes a substantial nearly 12% increase for the Valley Stream Central High School District, suggesting a positive response to the financial challenges faced by the district in previous years. This recognition by the governor is seen as a step toward aligning funding levels with those of comparable districts, addressing historical disparities in financial support.

The anticipated reductions in state aid stem from Governor Hochul's recent proposal to terminate the long-standing provision called "hold harmless." In existence for decades, this provision ensured that school districts could rely on receiving, at a minimum, the same amount of school aid as in the previous year. The proposed elimination of "hold harmless" introduces a significant shift in the funding dynamics for school districts, marking a departure from the historical stability provided by this provision.

State Budget Director Blake Washington informed Newsday that, following a substantial increase of $7 billion in school aid over the past three years and an additional $13 billion in federal aid during the same period, there is a shift toward establishing a more sustainable level of funding. The aim is to ensure that high-needs schools receive the necessary funding. This perspective underscores the state's effort to balance increased financial support with a focus on sustainability, especially in addressing the specific needs of schools requiring additional assistance.

The Hochul administration's decision to end the "hold harmless" provision was influenced by the reserves and surpluses of many moderate- and lower-needs school districts. Anticipating resistance, lawmakers from both Republicans and Democrats are expected to advocate not only for spending increases but also to preserve the "hold harmless" provision. The debate reflects a balance between addressing fiscal concerns and ensuring stability in funding for various school districts.

The tradition of prioritizing increased school aid, particularly in suburban areas like Long Island, has long been a top concern for state legislators and their constituents, especially during election years. However, ending the hold-harmless provision encounters obstacles extending beyond debates over the proposal's merits. The issue involves navigating the delicate balance between addressing financial concerns and meeting the expectations and priorities of constituents, emphasizing the complexity of the decision-making process in the realm of education funding.

Lawrence Levy, executive dean of Hofstra University’s National Center for Suburban Studies, remarked, “The political realities are that this has been so much a part of the financial planning of the districts and the political priorities of the legislators who represent them that it’s hard to imagine the Senate and the Assembly going along.” This underscores the entrenched nature of the "hold harmless" provision in both the financial strategies of school districts and the political considerations of legislators, indicating potential resistance to its elimination within the legislative bodies.

The proposed cutbacks follow three years of substantial appropriations for the Nassau-Suffolk region, including a record $771 million increase in state financial aid approved for the current school year. The financial landscape is further complicated by the expiration of a $500 million infusion in federal pandemic aid for local schools, intensifying the challenges faced by the region in maintaining previous levels of funding.

Bob Vecchio, executive director of the Nassau-Suffolk School Boards Association, expressed concerns on Wednesday, revealing that upon closer examination of the governor's proposal, there were even more "devastating" cuts to foundation aid for many Long Island districts. This emphasizes the potential severity of the impact on foundational support for education in the region, raising alarms about the proposed budget's consequences for local school districts.

The state's foundation aid formula incorporates factors like enrollment and the local community's wealth. The "hold harmless" provision, integral since its establishment in 2007, has played a crucial role in the application of foundation aid, providing stability to districts by ensuring they receive at least the same amount of aid as in the previous year. State education advocates highlight the significance of this provision in maintaining a fair and consistent approach to funding distribution.

Bob Vecchio expressed the gravity of the situation, stating, "It’s an excess of $40 million in aid lost. It will be nearly impossible for some of these districts to make up the difference." This underscores the substantial financial impact that the proposed cuts could have on certain districts, potentially posing significant challenges in bridging the funding gap and maintaining essential services for students.

The New York State School Boards Association noted that the governor's proposal seems to "pull back from the substantial progress New York has made with Foundation Aid funding." This observation reflects concerns about the potential regression in the advancements made in Foundation Aid funding, suggesting that the proposed changes could have a detrimental impact on the positive strides previously achieved in supporting education across the state.

Tim Hearney, president of the Suffolk County School Superintendents Association, indicated that in Suffolk alone, there appears to be approximately $33 million in lost foundation aid. However, he cautioned that it's still early in the process, highlighting the evolving nature of budget discussions and the need for continued assessment as the situation develops.

Tim Hearney, president of the Suffolk County School Superintendents Association and superintendent of the Bayport-Blue Point district, acknowledged that a potential loss of $33 million in foundation aid could "possibly have an impact on programs and eventually students." However, he emphasized the need for more information and expressed hope that adjustments would be made in the future as districts plan their budgets. This reflects the ongoing uncertainty and the expectation for further clarification and potential modifications in the budget planning process.

Educators emphasize that this type of aid is crucial for the future operations of their school systems. In the Lawrence district, the potential loss is substantial, with up to a 38% cut in foundation aid, marking the largest percentage reduction of any district in Nassau County, according to school officials. This underscores the significant impact the proposed cuts could have on individual districts and highlights the importance of foundation aid in sustaining essential operations within the education system.

Superintendent Ann Pedersen expressed the district’s perspective, stating, “The district sees no rationale in cutting funding to a population of high-needs students.” Acknowledging the preliminary nature of the governor’s numbers, she conveyed hope that state legislators would intervene to restore the foundation aid that the district believes has been misguidedly taken away from their students. This reflects a call for reconsideration and advocacy for maintaining essential funding for high-needs student populations.

sources: 
Newsday

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