The New York State Association of School Business Officials (NYSASBO) says almost every school district in the state has tapped their fund balances to plug holes in their budgets.. Results of a recent survey show that 99% of school districts tapped their fund balances sighting limitations in state aid and the property tax cap. 81% of the districts report they will exhaust or spend down their fund balances within 5 years if limitations on state aid and the tax cap remain in place. 31% of respondents replied they would exhaust their fund balances within the next 18 months. And further – 56% of districts reported that at least 10% of their 2012-2013 operating budget consisted of monies from their fund balance.
Executive Director Michael Borges, says Many school districts, especially those in low wealth rural and urban communities, will be facing both educational and financial insolvency within the next couple of years.