Based on stimulus package allocation figures recently released by the Department of Education in Washington, D.C. New Rochelle may be looking at an astounding $19 mm windfall from New York State’s share of DoE allocations under the America Recovery and Reinvestment Act 2009 — none of which is accounted for under the recently proposed New Rochelle school budget which is up for vote in May 19th.
New Rochelle schools may also be getting millions for infrastructure projects. The City School District of New Rochelle has so far refused to provide the public with its list of infrastructure requests although John Quinn, Assistant Superintendent for Finance, did reveal at a recent budget workshop that a multi-million dollar request to replace all the roofs at New Rochelle public schools had been submitted to Albany.
This would be in addition to the $8 million in new spending requested by the City School District of New Rochelle under their newly released “preliminary budget”. Further, the District has squirreled away millions of dollars in reserves as a “rainy day fund” and has expressed some optimism that $4.2 million in state aid cuts by Gov. David Paterson maybe returned to the District.
School Tax Increase May Double District’s “Conservative” Estimate
All of this is leaving many New Rochelle residents wondering why, in these difficult economic times, the school district would seek a significant tax increase on property owners. The 2009-10 budget calls for a 4.9% tax although that figure has been described as “wishful thinking” because it assumes that the assessed value of property in New Rochelle will decline the same as the previous year in a market where home values have declined 20%, homes sales are down 50%, foreclosures are up 100%, unemployment is nearing 10% and other municipalities are reporting a 300% increase in assessment appeals. The New Rochelle Finance Department is projecting a 3% decline which, if correct, would translate into a 6.9% tax increase. A decrease in assessed value of property three times higher than last year (-4.2) would result in a tax increase of 8.3%.
The New York Times is reporting that New York State Education is a “huge winner” in the Stimulus Money sweepstakes for State Allocations, an entirely different pot of money, of which New York will receive a disproportionally large share due to various federal formulas for distributing funds:
With the nation’s second-largest budget deficit, the state benefits from a formula that sends extra money to concentrations of poor students, as well as one that rewards states for their own school spending. New York will receive about $1,724 per student, the most of any large state and roughly $400 more per pupil that than Connecticut and New Jersey.
The Department of Education in Washington, D.C., which is administering $97 billion in stimulus funds, will soon begin to distribute a large chunk of the money, with $80 billion to be distributed over two years.
If New Rochelle with a projected student population of 10,831 next year were to receive the the average amount of $1,724 per pupil in New York State, New Rochelle schools will get $18,672,644.
The Times articles notes that $50 billion of the money is for “fiscal stabilization” which is to be used for “avoiding or reversing cuts”. This raises the question as to whether by not cutting any programs – and actually adding an entirely new program (Full-Day Kindergarten), the District is going to find itself ineligible for a large mount of the $80 billion being put on the table.
America Recovery and Reinvestment Act 2009 – State Allocations
Recovery and Reinvestment Act
New York Actual
Title I Grants to Local Educational Agencies 1,226,786,099
School Improvement Grants TBD
Impact Aid Construction 0
Educational Technology State Grants 21,765,804
Education for Homeless Children and Youths TBD
IDEA Part B Grants to States 721,466,166
IDEA Part B Preschool Grants 33,216,002
IDEA Part C Grants for Infants and Families 23,636,568
Vocational Rehabilitation State Grants 148,275,309
Independent Living State Grants 1,052,397
Services for Older Individuals who are Blind 1,985,566
Federal Work Study 97,199,941
State Fiscal Stabilization Fund 0
New York Total 2,275,383,852
Recovery and Reinvestment Act
New York Preliminary Estimate
Title I Grants to Local Educational Agencies 906,198,380
School Improvement Grants TBD
Impact Aid Construction 623,833
Educational Technology State Grants 55,492,691
Education for Homeless Children and Youths TBD
IDEA Part B Grants to States 759,193,324
IDEA Part B Preschool Grants 35,017,461
IDEA Part C Grants for Infants and Families 23,686,688
Vocational Rehabilitation State Grants 25,694,844
Independent Living State Grants 856,884
Services for Older Individuals who are Blind 2,297,730
Federal Work Study 19,826,764
State Fiscal Stabilization Fund 3,017,796,810
New York Total 4,846,685,409
