By Mark Scott
Albany, NY – Some local school districts in New York are leering of using their reserves to make up for the temporary loss of state aid. A small number of districts don't even have reserves in place to ease the pain.
Governor David Paterson held up school aid payments to keep the state from running out of money. He suggested that most school districts have reserves on hand to deal with the shortfall.
The State Education Department reports local schools have a combined $1.1 billion in reserve. But groups representing local schools say many district administrators want to preserve their rainy day funds for future years, especially since pension costs are expected to skyrocket in 2011.
Tim Kremer of the State Schools Board Association says the delay is making planning difficult and is causing some chaos.
Paterson said last week that aid payments could be made as early as January if the state's revenue picture improves.
Kremer says the system of funding public education in New York is complicated and is dependent on state cooperation. Other education advocates say districts with little or no reserves are usually the ones which are most in need of state aid.
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