EdVANTAGE Blog

My sense is that the Governor and Legislative Leaders continue on a timeline to produce a state budget within eight days, in time for the start of the state fiscal year on April 1.

A few items from the news on how state budget negotiations may be proceeding…

Fred Dicker of the New York Post writes, “Gov. Paterson and legislative Democrats have secretly agreed on an $8 billion, two-year tax hike on individuals making more than $500,000 a year that will ‘sunset’ around the time he plans to run for election in 2010, legislative sources told The Post.”

Mr. Dicker adds that a temporary increase in the 4 percent state sales tax to 4.5 percent is also under “intense discussion.”

The column also speculates on possible shifts in the regional distribution of school aid.

Newspapers in the Gannett chain report that Senate Democrats are pushing to restore funding for the Middle Class STAR Property Tax Rebate program. Governor Paterson proposed eliminating the $1.4 billion program, one of the largest single cuts in the entire state budget.

My presumption had been that the program would not be restored. Although the first two years of property tax rebates more than offset tax levy increases for taxpayers and districts, it has not yet built up a constituency of supporters like that of School Aid or the traditional STAR program.

The New York Times reported on Long island and Westchester school districts contemplating layoffs of instructional personnel, some for the first time in decades. The articles notes, “Most of the region’s school boards are aiming for budgets that keep the tax levy increase below 4 percent, a challenge made more frustrating by the uncertainty about state aid.”

A week ago, Gannett papers published a similar article presenting statewide perspectives, and stressing the reluctance of districts to count on federal stimulus aid until more is known about how much aid they will receive, when, and what strings may be attached.

A column from the Associated Press warns that an on-time budget could be a mixed blessing, if state leaders rely on federal stimulus aid and “temporary” state tax increases (as described above) to put off tough choices until after the next statewide election, in 2010.