Cuts cuts cuts

There are going to be cuts, like it or not. The solution? Pay more taxes. By the way, several sources say that the Town of Marlborough taxes will be going up an estimated 21% in January.

 

School districts waiting for solution on state aid

School districts hope the state Legislature will find a way around Gov. David Paterson’s proposal to cut millions of dollars out of this year’s school budgets.

The prospects of a rescue are uncertain, even as the Legislature hammers out a budget reduction deal with the governor.

Paterson wants school districts to use their “rainy day” funds to cover current expenses instead of getting the money from the state.

School officials said Paterson’s proposed cuts will cause higher taxes or program cuts, even if districts use their rainy day reserves.

On Tuesday, there were mixed reports on whether legislators were making progress on a budget agreement. The Assembly has been ready for a week to sit down and make tough decisions, said Assemblymen Kevin Cahill, D-Kingston.

When looking at raw numbers, Paterson’s right. In the mid-Hudson, all but two school districts in June had more money in reserve than the amounts Paterson proposed to slash.

But even Paterson says that draining reserves in an unsteady economy isn’t sound planning — for the state. The governor refuses to use the state’s $1.2 billion reserves because it might affect the state’s credit rating and leave the state without cash flow.

“The inconsistency is that the governor is arguing that school districts should use their fund balances but he doesn’t want to use his,” said Frank Mauro of the Fiscal Policy Institute.

Aside from cushioning for a rainy day, districts use money in their reserve funds to keep taxes low. The Fallsburg School District put $1.9 million toward offsetting the levy this year.

“If we have to use that money to pay for the midyear cuts, that will fall directly on the back of the taxpayers,” Superintendent Ivan Katz said.

Cahill expects that health care and school aid will see cuts, although smaller than those proposed by the governor.

“If we have sacred cows, we cannot solve the crisis,” Cahill said.

Source: Times-Herald Record

Advertisements

One Response

  1. Please provide me with any info on the future tax increases for Marlbo School that you may know about. I see that your say 21%in Jan. is that a fact? Where did it come from?

    Thanks

Comments are closed.

%d bloggers like this: