Forces Buffalo system to pay $11 million more

By Tom Precious
News Albany Bureau
Published: July 09, 2010

ALBANY — Gov. David A. Paterson issued yet another veto Thursday to prevent what he called a legislative end run to increase state spending on public schools.

But the fiscal fallout from the governor’s action includes blowing a $11 million hole in the Buffalo Public Schools budget, which could force another 200 layoffs in the system.

The governor previously vetoed $419 million in state funding for 700 school districts. But, the administration said Thursday, a separate bill approved by the Legislature contained a one- sentence provision that, in effect, would undermine the school aid veto.

Paterson called the provision a “poison pill,” saying legislators tried to “achieve through the back door” what they could not get through the vetoed bill.

The governor added that he felt legally compelled to veto the entire 45-page bill, not just the single, objectionable provision.

The result? While he claims his action saves money for the state, it sharply increases expenses for some schools systems — especially Buffalo.

For Buffalo Public Schools, the issue involves how much, per pupil, the school system must pay charter schools attended by youngsters from the system. Last year, the state froze those payments to help systems like Buffalo, and the freeze was to remain in effect this year.

But by vetoing the entire bill, Paterson undid that agreement.

As a result, Buffalo schools face an additional $11 million in expenses for the coming school year. Statewide, school districts will have to pay charters an additional $70 million.

“This is problematic,” Buffalo School Superintendent James A. Williams said.

With his budget already adopted and 400 layoffs planned, Williams said the additional charter school payments could cost another 200 jobs.

“And it’s July, and we’ve got to open school in August,” he added. “We can’t operate public schools with all these uncertainties.”

In his latest veto, issued a day after the delivery of nearly 6,700 other vetoes totaling about $700 million in spending, Paterson acknowledged spiking a number of “worthwhile” programs, including a number that had been in the budget he proposed in January. These included continuing the freeze on charter school payments.

But the governor, a Democrat, said the Legislature, controlled by his own party, had forced his hand.

“In essence, the Legislature has presented me with a Hobson’s choice: veto this legislation despite the positive aspects it contains or accept the irresponsible spending it compels, and agree thereby that New York State have a budget that is out of balance from the outset.”

Austin Shafran, a spokesman for Democrats who control the Senate, said the veto “jeopardizes jobs and our school children with the typical Albany power play.”

Assembly Speaker Sheldon Silver, a Manhattan Democrat, declined to comment.

David Albert, a spokesman for the New York State School Boards Association, said Paterson’s earlier veto of $419 million in school spending already prevented those funds from going out the door.

“I think you can make the argument that the veto is unnecessary because the money is not there,” he said. But he said a number of programs will face “serious ramifications.”

While the governor sought to sound fiscally tough, the veto will provide more spending for some schools. It cancels a freeze that had prevented districts from updating certain data — such as enrollment — on which state funding is based. As a result, the state will have to pay out $100 million more than anticipated.

Though he insists otherwise, the governor appears to be setting the stage for more budget talks, along with resolution of some nonfiscal matters that were not resolved at the end of session. These include including a new financing arrangement being pushed by the University at Buffalo.

The Senate is considering a return next week to adopt the last budget bill — a $1.5 billion revenue-raising measure.

tprecious@buffnews.com