Citing the state's cash crunch, Gov. David Paterson announced he is pushing back a $2.1 billion school aid payment scheduled for Wednesday.
"The fact that extraordinary cash-management actions such as these are necessary underscores the dire nature of our state's fiscal circumstances," Paterson said in a statement. "Significant spending reductions must be made if we want to put New York on the road to long-term fiscal and economic recovery."
The money -- which is used to supplement school district operating budgets -- will still be sent on June 1, the statutory deadline, Paterson said. In December, Paterson touched off a firestorm when he delayed $750 million in payments to school and local governments until January. They were eventually made in full.
Education groups sued the governor over that move, but the case fizzled as the money flowed. The groups -- including New York State United Teachers and the New York State School Boards Association -- argued that a delay reflected an impoundment, which exceeded the authority given to the governor under the constitution.
The suit likely will be revived. Officials and NYSUT and NYSSBA were not immediately available for comment.
This move does not affect negotiations over the 2010-11 budget, which is currently the subject of negotiations among lawmakers. Paterson said the need for delay reinforces his calls for spending reductions. Paterson proposed reducing school aid by $1.4 billion.
"Unfortunately, the spending plans that the Senate and Assembly have put forward did not include enough cuts to move us toward the goal of a fiscally responsible and sustainable state budget," Paterson said. "In fact, in light of the state's worsening revenue situation, additional reductions beyond even those included in my original budget proposal may ultimately be necessary."
