ASBO State Budget Follow-up Questions and Answers

ASBO members raised the following questions during last week’s webinar on the Enacted Budget. Unfortunately, for many of the questions, there are no clear answers. However, ASBO is in close communication with the Governor’s Office, Legislature, and SED and will bring you updates as we have them.

Q: Should I be paying my contracts (for example, transportation)? If I do, will I receive state aid on the payments?

A: This is one of the most asked questions. Unfortunately we don’t have an answer for districts, but we can let you know that the state is certainly aware of the issue and is actively working on a solution.

Q: Will districts receive State Aid on transportation used to provide meals during the COVID-19 closure?

A: There is no definitive yes to this question, but school districts are encouraged to closely track and record related expenses.

Q: With potential mid-year State Aid cuts and no set date for the school budget vote, how should my district proceed with finalizing its budget and planning for a vote?

A: The enacted State Budget includes three periods during 2020 in which the state will compare anticipated revenues and budgeted spending with actual revenues and spending. If revenue is more than one percent short of forecasted or spending one percent more than budgeted, then the state will cut its budget accordingly. ASBO recommends school districts wait to adopt their budgets until the end of the first review period, which runs from April 1-30. We should know in early May if, and to what degree, there will be cuts. 

In regards to the budget calendar, the timeline leading up to the vote builds backwards from the date of the vote. As things currently stand, with no vote scheduled, there is no updated calendar. This is why the Property Tax Report Card deadline has not been changed in SAMS.

Q: Could cuts during the state’s 2020-21 fiscal year impact School Aid for the 2019-20 school year?

A: The answer to this is unclear, but we have been told that the state is fully aware of the consequences cuts to 2019-20 would have for school districts.

Q: How should my school district handle contractual issues if the school year ends up requiring additional days?

A: There are no clear answers yet, but anything from the state would have to come through an Executive Order.

Q: What if my district is in the midst of a Capital Outlay project that we will be unable to complete by June 30 because of COVID-19?

A: There is no clear answer to this question, but ASBO believes that a one-time allowance for two projects in 2020-21 for districts that didn’t complete one in 2019-20 would be a workable solution.

Q: What happens with required data collection and reporting? For example, for school districts scheduled to calculate their non-allowable pupil decimal.

A: Like with many answers, the answer to this is not yet finalized. ASBO is currently working with SED to identify upcoming deadlines and requirements and determine whether they are derived from statute or regulations. SED and the Regents have shown a willingness to be flexible with regulatory deadlines, as shown at the most recent Regents meeting. Requirements based in statute will require an Executive Order from the Governor to change. SED is unable to change these deadlines, but encourages districts that are unable to complete a required filing to reach out to the office of state aid.

We have asked members to share with us any upcoming deadlines or requirements that they are unable to complete because of COVID-19. These can be submitted to Andrew Van Alstyne at andrew@asbonewyork.org