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The New York State The Gap Elimination Adjustment (GEA) was initiated to help address the $10 billion budget deficit in the 2010 fiscal year.  Since that time school officials say $1.1 billion in school aid has been withheld from districts across the state.  Intense lobbying has had little effect, although little by little funding levels have been restored.  This year the State Senate passed a resolution to eliminate the reductions, but the Assembly has not taken action.  While some money has been restored, a full restoration did not make it into the new budget proposal.

"We kept hearing that they would be doing a full restoration this year, School Superintendent Chris Pettograsso said at Monday's Lansing Board Of Education meeting.  "That is not the case.  So we have to continue to advocate hard for the restoration of the GEA."

Pettograsso says that despite a $167,634 restoration of aid funding to the district, the reduction in school aid to Lansing this year is still $330,000 this year.  That is on top of $5,760,000 the district has lost since the GEA was established.  Even if the GEA were eliminated past losses would not be paid back to the schools.  All districts in the state have suffered: The Ithaca City School District stands to lose $1.15 million dollars in 2016-17 school aid.  Since it's inception the GEA has cost districts over $1.1 billion state-wide.

Some districts have seen full restoration.  In Tompkins County Newfield will not see a loss in the coming year.  But every other district in the County will have to make up for losses or make cuts to programs.

Lansing School Board Member Tony Lombardo, recently returned from a Statewide School Finance Consortium (SSFC) conference, said that reductions in aid as a result of only $862 million for school aid, the remaining GEA losses,  $266 million in foundation aid,  (only an 1.7% increase), coupled with restrictions on school districts' ability to raise revenue locally because of the state property tax levy cap mandate.  He said the GEA must be eliminated, and there should be more of an increase and a more equitable distribution of foundation aid.

"If you combine all this you can see it is very difficult for schools to raise money," Lombardo said.  "They are saying there is a state surplus.  There's no reason to even have it any more.  We need to get rid of it.  Lansing is still owed around $330,000.  Some districts were made whole -- they got almost all of their GEA money back."

Reductions in Foundation Aid has been a sore spot with school officials for a decade.  Parents brought a case known as the Campaign for Fiscal Equity (CFE) against the State that claimed children were not given the opportunity to receive an adequate education in New York State.  The New York State Court of Appeals ruled in favor of the CFE in 2006, saying the state was violating the children's' constitutional right to a sound and basic education by depriving schools of necessary funding.

"Foundation aid is the biggest chunk of our state aid," said Lansing School Business Administrator Mary June King.  "The court at that time told the State that they needed to increase those dollars to school districts over some period of time.  They didn't increase those dollars.  Instead, beginning with Governor Patterson's term, they have reacted with reductions."

"We found some other places around the state where that kind of reserve has been created," she said.  "I have spoken with Assemblywoman Barbara Lifton and am waiting to hear back from Senator Mike Nozzolio.  Barbara is focused on creating transition aid for schools.  So we would have a grant or some type of aid during the transition (if the plant were to close).  It would be great, but in the meantime we still need a reserve.  I am not sure where she is falling on that, and I would like to let her know that is a need for our district.  We're hopeful that she will represent us for that request."

Lifton supports the closing of the Cayuga Power Plant, which will mean a substantial revenue loss, especially for the Lansing School District.  She has been advocating for transitional funding for districts like Lansing that suffer sudden revenue losses due to events like plant closings.   The New York State Public Service Commission (PSC) was expected to have ruled at the end of last year on whether the plant will remain open after being converted from coal power to natural gas, but has been eerily silent, wreaking havoc with school budget planning in Lansing.

Nozzolio and his colleagues wanted $1 billion restored to schools across the state by "accelerating the complete and total elimination of the GEA as part of the 2015-16 state budget".  Last month the State Senate passed a bill (S6377) that would entirely eliminate the GEA, restoring close to $434 million in remaining cuts.

"If you combine all this you can see it is very difficult for schools to raise money," Lombardo said.  "They are saying there is a state surplus.  There's no reason to even have it any more.  We need to get rid of it.  Lansing is still owed around $330,000.  Some districts were made whole -- they got almost all of their GEA money back."

Pettograsso said the district would be providing parents and other community members with form letters to be sent to Nozzolio and Lifton, not only asking for their support in eliminating of the GEA, but also for state permission for the district to create a tax stability reserve fund.  The reserve fund would provide a buffer for taxpayers in the event that the Cayuga Power Plant, the district's largest taxpayer, closes or loses more value.

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