DiNapoli: Give school districts more flexibility

After his review of all schools districts and the Board of Cooperative Educational Services (BOCES) in New York, state Comptroller Thomas DiNapoli cited several districts for having excess funds in its Employee Benefit Accrued Liability Reserve funds. Although there is no legal limit as to how much money districts can have in this account, DiNapoli said many districts had more money than would be reasonably needed in the coming years.

The EBALR fund is used pay teachers and staff for unused leave time, such as sick and vacation days, when they leave the district. Once money goes in to the fund, it can only be used for that purpose.

DiNapoli wants districts to use this excess money to benefit taxpayers. However, legislation is required for districts to be able to transfer money out of an EBALR account to its operating budget. He is proposing that the state Legislature adopt this change.

Dr. Les Omotani, superintendent of the Hewlett-Woodmere Public Schools, said he would be in favor of such legislation. "This action will not cost the state of New York any additional funds and will allow school districts like Hewlett-Woodmere to continue to wisely plan for the future and be fiscally responsive to our taxpayers," said Dr. Omotani.

Dr. Peter Weber, the Hewlett-Woodmere Public Schools assistant superintendent for Business said almost a decade ago the district began to set funds aside to meet its statutory requirement to pay a portion of retiree health insurance bills when it was "widely anticipated that the state would pass the necessary legislation to either amend the Employee Benefit Accrued Liability Fund or permit establishment of separate trust funds." He added that the district like many others was proactive in setting these funds aside because if delayed the higher the ultimate cost would be because of rising health insurance expenses.

"We need leadership and long term planning from our elected officials," said Dr. Weber. "We are already paying the price for too many years of one-shot remedies."

District officials for the Lawrence Public Schools could not be reached for comment on DiNapoli's proposed legislation.