Ten Point Analysis of the Impact of the State Budget on Long Island School

Ten Point Analysis of the Impact of the State Budget on Long Island Schools (All Calculations Include Building Aid)

Suffolk County School Superintendents Association

REGIONAL IMPACT

• Long Island schools enroll approximately 17% of the students in the state but will receive only 12% ($2.335 billion) of all school aid ($19.360 billion).

• Long Island public schools will receive less aid next year ($2.335 billion) than four years ago, in 2007-08 ($2.499 billion). Aid as a share of projected expenditures will drop to 21.4% in 2011-12, down from 25.7% in 2007-08.

• Between 2010-11 and 2011-12, Long Island schools will lose $89.3 million in Federal support and $90.4 million in state aid, for a total loss of $179.7 million. This represents an aid loss of 7.1% from year to year.

• Long Island schools experienced an overall aid loss 14.5% greater than the rest of the state (7.1% vs. 6.2%). • Long Island school aid per pupil is reduced to $4,326, which is 31.2% lower than the rest of the state ($6,285).

FORMULA ISSUES

• The school aid formulas remain broken. There are 29 low wealth (CWR<1.0) school districts on Long Island enrolling 37.5% of the students (171,142). Of the 25 that are losing aid, one in five will experience a cut in excess of 7%.

• Foundation Aid, which comprises 77% of all state aid, is $3,329 per pupil on Long Island. This is 31.2% lower than the rest of the state ($4,835).

TAX LEVY IMPACT

• The loss of $179.7 million in state support is the equivalent of a 2.4% increase in the Islandwide property tax levy ($7.467 billion).

• On a county by county basis, the loss of aid will drive a 3.2% property tax levy increase in Suffolk and a 1.7% property tax levy increase in Nassau.

TAX CAP SCENARIO

If the proposed tax cap was in effect for 2011-12, Islandwide school spending would have to be reduced by $314.5 million in order to live within the cap, assuming the following:

• Costs increased by 3.5% • Applied fund balance is unchanged • Cap set at 2%

The impact of the necessary cuts would differ dramatically between school districts.

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