New York school districts must "look at ways to cut costs"

New York State Comptroller Thomas DiNapoli stating the obvious:

"Many school districts have taken steps to align spending with today's economic realities. But it's imperative that every school district look at ways to cut costs and plan strategies that help them deal with fiscal stress,"....

"Raising taxes should be a last resort," he said.

General-fund expenditures declined in 209, or 33 percent, of New York's districts in 2009-10, indicating many are already developing ways to manage financial challenges, the report said. From 2007 to 2008, 34 school districts, or 5.4 percent, cut spending.

ADDED:  The comptroller's report - Staying Ahead of the Curve:  School Districts Responding to Fiscal Challenges

For the entire article:

Comptroller's report: School districts' financial state could worsen

12:43 AM, Mar. 15, 2011

Written by Cara Matthews Albany Bureau

ALBANY — School districts have been cutting spending in response to poor economic conditions, but their financial condition could worsen with less state and federal aid and lower property values following the collapse of the housing market, according to a state report released Monday.

"Many school districts have taken steps to align spending with today's economic realities. But it's imperative that every school district look at ways to cut costs and plan strategies that help them deal with fiscal stress," state Comptroller Thomas DiNapoli said in a statement.

New York's fiscal climate will take time to improve, he said.

"Raising taxes should be a last resort," he said.

General-fund expenditures declined in 209, or 33 percent, of New York's districts in 2009-10, indicating many are already developing ways to manage financial challenges, the report said. From 2007 to 2008, 34 school districts, or 5.4 percent, cut spending.

Statewide, spending rose an average of 2.5 percent in 2010. On average, the biggest increases were in districts on Long Island (3 percent), in the Southern Tier (2.9 percent) and in western New York (2.7 percent), DiNapoli found.

The increase in the Finger Lakes region was less than the state average. But 7 percent of districts in that area had liquidity ratios below 1.5 percent, which means cash flow could be a problem, the report said.

State aid to school districts dropped by $1 billion this year, almost 8 percent, and Gov. Andrew Cuomo has proposed $1.5 billion in cuts in 2011-12. From 2006 to 2009, state aid grew by 9 percent annually. Federal stimulus funding runs out after the current year.

DiNapoli spoke at a state School Boards Association meeting Monday and released the report at the event.

"It confirms a lot of what we've been saying in that school districts are seeking ways to reduce spending and keep property-tax increases to a minimum," said David Albert, a spokesman for the association.

Spending for school districts grew about 1.5 percent from 2009-10 to 2010-11, Albert said.

"So districts are looking for ways to save money. … I think we have seen a trend toward lower spending," Albert said. "Obviously that's difficult to accomplish in an environment where you're getting cuts in state aid."

The comptroller's report said mid-Hudson and Long Island school districts are showing signs of fiscal stress in 16 of 22 financial indicators used by the Comptroller's Office, more than any other parts of the state. The collapse of the housing market, higher per-pupil costs and higher debt levels are some of the main reasons.

Property values have dropped in almost 88 percent of school districts in these regions, which get about 75 percent of their education funds from local sources. By contrast, upstate districts get about 44 percent of funding from local property taxes.