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Federal Bucks saves some LI schools
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Federal dollars help LI schools keep aid intact

BY JOHN HILDEBRAND

john.hildebrand@newsday.com

11:13 PM EDT, March 31, 2009

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ALBANY - Most Long Island schools Tuesday managed to weather the economic downturn with aid money relatively intact - but only because of a historic infusion of money from Washington aimed at saving teachers' jobs and bolstering special education.

Overall, Island school districts gained $86.3 million, or 3.3 percent over the current year, in a budget package pushed through Tuesday by the State Legislature's Democratic majority.

School officials generally describe the increase as a relief, given the fact that Gov. David A. Paterson had called for a $157-million reduction in aid to the regions's schools less than four months ago.

Paterson later agreed to restore the cuts, after the U.S. Congress approved an economic stimulus bill with money earmarked to maintain local government services such as schools and police. Tuesday, legislators approved that restoration along with distribution to the Island of an additional $60.2 million in federal assistance for special education, and $5.6 million for "Title I" academic tutoring.

All that federal aid, plus a small increase in state reimbursement for school construction, adds up to $222.8 million.

"Oh, we're ecstatic!" Sachem superintendent Charles Murphy said. He added that the extra $4.9 million in aid approved for his district would help bolster his call for a zero increase in next year's property tax levy.

"This allows us to present a budget to our taxpayers that can be supported," said Kenneth Rodgers, assistant superintendent for business in Uniondale.

However, some school authorities accuse Paterson and state legislators of trying to take credit for what was essentially a federal bailout. Until Tuesday, the state had never included U.S. aid - historically, a relatively small part of school revenue - in its calculations of district-by-district assistance.

GOP legislators contend, meanwhile, the Island will be hit disproportionately by the Democrats' decision to raise taxes on high earners, and to stop STAR rebate checks, used since 2006 to offset school property taxes.

"We know property taxes will go up, partly because of this budget," said Assemb. Joseph Saladino (R-Massapequa).

Some regional analysts agree the Island is being shortchanged. They note that New York City schools get an aid increase of $625.9 million, or 7.5 percent, in the package OK'd Tuesday.

"What this budget does is continue to drain Long Island," said Martin Cantor, director of the Long Island Economic and Social Policy Institute, based at Dowling College.

In November, the institute released findings that the region sent Albany $39.3 billion in tax revenue from 2002-06, and received only $27.7 billion back. Cantor contends the income tax hike will widen that disparity.

Some local school districts continue to face severe financial pressures, despite Tuesday's aid increase. For example, lawmakers concede falling state revenue makes it difficult to help Wyandanch schools close an estimated $2.5-million deficit gap, though that district's aid is to rise by about $564,000 next year.

Wyandanch school board president Denise Baines said the limited state response may force staff layoffs and cancellation of next year's sports programs.

Despite the aid package's limitations, Democrats say it is a significant achievement, given the deepening recession and the fact it was adopted on time.

"We're trying to make the best of a bad situation," said State Sen. Brian Foley (D-Blue Point).

Congressional Democrats, who said their stimulus package would prevent teacher layoffs, have since acknowledged some jobs will probably be lost. They add, however, that federal assistance has helped a bad situation from turning into a disaster.

"It's not going to solve all the school districts' problems, but it's going to ameliorate them," said Sen. Charles Schumer.



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