State aid to Shelter Island School District remains unclear

Negotiations are underway between Gov. Kathy Hochul (D) and New York State legislative leaders over several critical issues, including school aid.

The governor has insisted she wouldn’t raise taxes on the wealthy to provide more school aid. She has also been holding fast to her view that a provision, guaranteeing school districts aid at least equal to what they received in the previous year, has to be eliminated.

Many legislators in the State Senate and Assembly see a rollback in aid as a reversal of the state’s commitment to education. However, when it appeared state revenues would be higher than originally expected, legislators took that as a sign that money would be available to restore school aid to last year’s level.

At last week’s School District budget workshop, Superintendent Brian Doleger, Ed.D. said he wasn’t suggesting the Board of Education make any cuts in spending — at least not yet. Currently, the district is holding to a $13.08 million spending plan for the 2024-25 school year, up from this year’s budget of $12.44 million.

Mr. Doleger is still hoping the optimistic outlook last week will prove to be true. The Board has delayed the April 8 date at which it had planned to approve the budget request. That meeting is now set for April 15.

Ms. Hochul’s original proposal would have cut the district’s state aid by $170,000. If that is restored, the district could close the gap by making cuts in travel and conference expenses, materials, supplies and equipment, and bring the spending plan in line with the state-imposed 2% tax cap. That would avoid any cuts in educational programs, Mr. Doelger said at the March 11 budget workshop.

He hailed the district’s ability to cut its fund balance — money allocated but not spent in a previous year — since 2018. But that came with a warning that less money will be available from the fund balance to offset spending the following year.

With rising costs in areas over which the district has no control — including health insurance premiums, energy costs, contractual agreements — it is becoming increasingly difficult to avoid going above the tax cap, Mr. Doelger said.

Fast forward a year, and the district could be struggling to maintain its educational programs and stay within the 2% tax cap for the 2025-26 school year.

There has been speculation that the state will miss the April 1 date for an on-time budget and negotiations could be expected to be somewhere between a week and several weeks late.

If state aid isn’t known by the time the Board of Education meets April 15, it’s likely there will be discussion of possible specific cuts. But by then, there could be a strong indication of the state’s intention vis-a-vis school aid that would influence the amount of spending cuts that would have to be considered.

The Reporter will continue to monitor the situation in Albany and carry updates on its website as they are received.