ALBANY, NY (03/06/2013)(readMedia)-- The New York State Association of School Business Officials (NYSASBO) calls upon the Legislature to place a one year moratorium on resetting the interest rate used to calculate building aid for capital projects.
Legislation signed into law in 2001 (Chapter 383) requires the State Education Department to reset the interest rate used to calculate Building Aid payments to school districts at least once every ten years. As a result of resetting the interest rate, 558 school districts will lose $34.5 million retroactively for the current 2012-13 school year and $33.8 million in the upcoming 2013-2014 school year.
"These cuts are widespread and come on top of recent news of federal sequester cuts to our schools already reeling from state imposed caps on their state aid and local revenue," stated Michael J. Borges, NYSASBO Executive Director.
"We urge the Legislature to include language in the state budget that places at least a one year moratorium on resetting the interest rates for calculating Building Aid so these cuts will not be applied retroactively and give school districts the time to plan for these reductions going forward," continued Mr. Borges.
A list of impacted school districts and amounts can be found here: https://stateaid.nysed.gov/build/html_docs/interest_rate_recalibration_feb2013.htm