Schools 'concerned' about delays on state aid payments

In an effort to keep New York state from running out of money next month, Gov. David Paterson is delaying payments to local school districts, among other significant state spending reductions to the tune of $750 million.

The state will withhold just over $100,000 in state aid and a currently unknown amount in STAR rebate funding from the Baldwin School District in December.

Paterson’s decision has made Baldwin school officials uneasy, but they say they will continue to monitor information as it becomes available.

"The Baldwin School District is concerned about the reported delay in state aid but even more troubled by the possible cut in STAR, which would be an even greater loss," district officials said in a statement released Monday. "We will continue to watch the situation as we develop the district budget over the next year."

The district is due $1.01 million from the state for the month of December, but after the reduction, will only receive $913,213. The governor's office did not disclose details on when local school districts would be paid in full.

Matt Anderson, a spokesman for the New York State Budget Office, said the state has experienced “an unprecedented drop in revenue beyond anything seen in recent history,” which is why Paterson decided to withhold scheduled payments. If current expenditures had been made on schedule, Anderson said, the state’s general fund would have a negative balance of over $1 billion at the end of December — the first time in the state’s history that the general fund would have ended a month in the red.

“The governor said he won’t let the state run out of cash on his watch,” Anderson said.

Anderson added that a district-by-district breakdown of the $436 million set to be withheld from STAR payments across the state is not available at this time.

Anthony Bottan contributed to this story.