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Will Long Island Schools Be Set Adrift? Is Insolvency on the Horizon?

Will Long Island Schools Be Set Adrift? Is Insolvency on the Horizon?. January 31, 2013 Dr. Roberta A. Gerold, President-Elect, SCSSA Dr. Alan B. Groveman, Past President, SCSSA Mr. Charles A. Leunig, Babylon Cluster Chairperson Mr. James F. McKenna, President, SCSSA.

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Will Long Island Schools Be Set Adrift? Is Insolvency on the Horizon?

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  1. Will Long Island Schools Be Set Adrift?Is Insolvency on the Horizon? January 31, 2013 Dr. Roberta A. Gerold, President-Elect, SCSSA Dr. Alan B. Groveman, Past President, SCSSA Mr. Charles A. Leunig, Babylon Cluster Chairperson Mr. James F. McKenna, President, SCSSA

  2. Panelists’ Perspective

  3. Overview Fiscal Insolvency Educational Insolvency Part 100 – What Isn’t Required NYS Constitutional Requirement Overview Key Questions Advocacy Planning

  4. Fiscal Insolvency June 2011 SED memo outlines “Procedures and assistance when school districts are threatened with insolvency.” The document answers the question, “What if a district becomes insolvent?” as follows: • There is no provision in statute to allow districts to declare bankruptcy. The Bankruptcy Code requires specific state statutory authorization to declare bankruptcy – 11 USC section 109(c)(2). Many districts have sought and received special legislation to help them deal with a financial emergency or deficit.

  5. Educational Insolvency 2013-14 Regents State Aid Proposal references to “Educational Insolvency”: • Support for Regional Secondary Schools – …Regional Secondary schools may offer a lifeline for saving instructional programs on the verge of “educational insolvency,” i.e., the inability of school districts to provide quality educational programs due to significantly reduced revenues and small enrollments.

  6. Educational Insolvency (cont’d) 2013-14 Regents State Aid Proposal references to “Educational Insolvency”: • Develop and Track Education Opportunity Indicators - …An academic researcher has been engaged to develop a limited, but essential, number of reliable and valid indicators to measure the educational opportunities available to students in each district. This important endeavor will also enable department staff to monitor changes over time and provide an early indication of “educational insolvency.” It is anticipated that the approach could also help identify best practices.

  7. Part 100 Regulations

  8. NYS Constitutional Requirement In 2003, NYS Court of Appeals held that the State Constitution requires the State to provide all students with a “meaningful high school education,” one that will prepare them to “function productively as civic participants capable of voting or serving on a jury” and “to obtain competitive employment.”

  9. NYS Constitutional Requirement (cont’d) The Court described the essential resources that are necessary to provide all students with the opportunity for a sound, basic education. The judge articulated these as follows: Sufficient numbers of qualified teachers, principals, and other personnel; Appropriate class sizes; Adequate and accessible school buildings with sufficient space to ensure appropriate class size and implementation of a sound curriculum;

  10. NYS Constitutional Requirement (cont’d) Sufficient and up-to-date books, supplies, libraries, educational technology, and laboratories; Suitable curricula, including an expanded platform of programs to help at-risk students by giving them “more time on task”; Adequate resources for students with extraordinary needs; and A safe, orderly environment.

  11. Key Questions –Educational Issues / Insolvency In terms of Educational Insolvency: • What is the “tipping point” in your school-community? Cite examples of reductions that would represent educational insolvency in your community. • When do you think you might reach the tipping point? • Do you feel like your district is already headed in that direction?

  12. Key Questions –Fiscal Issues / Insolvency In terms of Fiscal Insolvency: • What is the fund balance situation in your district? Reductions? Plans? • What is the tax levy limit situation in your district? How did you address the cap last year? What is the outlook for this year? Does your community understand the cap? • What does your state aid history look like? Does your community understand the relationship of state aid to property taxes?

  13. Advocacy Planning Can You Answer These Questions for Your District?

  14. SCSSA Leadership Board of Directors President – Mr. James F. McKenna, Mattituck-Cutchogue UFSD President-Elect– Dr. Roberta A. Gerold, Middle Country CSD Vice President – Mr. Anthony Cacciola, West Babylon UFSD Treasurer– Mrs. Susan A. Schnebel, Islip UFSD Secretary – Dr. Charles T. Russo, East Moriches UFSD Past-President – Dr. Alan B. Groveman, Connetquot CSD Legislative Committee Chairperson Mr. Gary D. Bixhorn Eastern Suffolk BOCES Babylon Cluster Mr. Anthony Cacciola West Babylon UFSD Islip Cluster Ms. Patricia Sullivan-Kriss Hauppauge UFSD Huntington/Smithtown Cluster Ms. Diana Todaro Harborfields CSD East End Cluster Mr. David Gamberg Southold UFSD Brookhaven/Riverhead Cluster Ms. Nancy Carney Riverhead CSD Executive Director Dr. Candee Swenson

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