NYS Aid To HFCS Drops By $1.3 Million

by Alex Brooks
Hoosick Falls Schools Superintendent Ken Facin said this week that Governor Cuomo’s proposed reduction in school aid will have serious consequences for the Hoosick Falls District. Under the Governor’s proposal, total aid to the Hoosick Falls District would be cut by 13%, which is $1.3 million. In addition, there are unavoidable increases in costs to the District, as there are every year. Health insurance will cost 10% more. Contributions to retirement funds will go up 11% for one fund and 15% for the other. The District is contractually obligated for small increases in teacher salaries. Oil for heat and diesel fuel for the buses will probably be more expensive. Facin said altogether, the cost to run the school next year with exactly the same staff and program as this year would be over a million dollars higher than it was this year. So if you add together the proposed reduction in State aid and the anticipated increases in costs, the District is trying to make up a budget gap of over $2 million.
Facin said he understands that the Governor needs to significantly reduce spending, but he had hoped some distinction would be made between Districts with different needs. The impact of these cuts on a small rural district with a small tax base, which gets over half of its revenue from  State aid, is greater than the impact on a larger district with more businesses and a larger tax base, which gets only 30-40% of its revenue from State aid.
Facin points out that a 1% increase in the tax levy in the Hoosick Falls District brings in $85,000 more in revenue, so a few percentage points of increase in the local tax levy wouldn’t begin to close the budget gap. Facin said discretionary spending, for things like supplies and teacher training, is a very small part of the budget, so while some savings can be achieved there, it can’t possibly be enough to balance the budget.  The fact is, over 80% of the school budget is spent on paying salaries and benefits.
Facin said his understanding is that a 2% cap on the tax levy increase passed by the Senate was for next year, so there will not be a statutory tax cap in place for this year. But Facin said the Hoosick Falls District has been abiding by “a self-imposed tax cap” because he believes this “community doesn’t have any more to give.”
Facin said the Hoosick Falls District spent less money this year than it did the year before. “We will continue in that direction.” But he warns that the next three months are going to be “a painful and difficult time for schools.”
He said the Hoosick Falls District improved student results significantly over the past few years. He aims to continue that progress, but he said the looming budget shortfall presents “an incredible obstacle to maintaining the educational programs that we have.”
He said the District is facing “an immense challenge.” He vowed to look at every line item in the budget to look for savings, to “transform and readjust” the school to be more efficient.  A preliminary budget will be presented at the February 17 School Board meeting.