As increasing gloom settles over New York’s fiscal crisis, schools are preparing for, at best, no increase in state aid next year – which could drive up local property taxes around the state.

David Albert, a spokesman for the state School Boards Association, says the organization has been advising members to prepare for school aid to stay the same. Some schools have already moved up their budget planning for the 2009-2010 school year from January 2009 to this month.

Gov. David Paterson said earlier this month that everything is being considered for budget cuts. He underscored that Tuesday, saying no part this year’s budget will be spared cuts now that the state is facing a $1.5 billion shortfall. A month ago that was $1.2 billion.

But school officials aren’t ready to consider midyear cuts.

The association is advising members to start talking with the public now about the problems schools could face through cuts. It’s also lobbying against any property tax cap proposals, saying it would be a blow if they get less aid than expected.

Schools and the powerful New York State United Teachers union warn that cuts will lead to fewer teachers – creating larger class sizes, fewer programs and layoffs. The state made midyear aid cuts in 1990, but that led to outrage by unions representing teachers and other public employees, who have become more powerful lobbyists and campaign contributors since then.

The majority of school costs — about 70 percent — go to personnel costs like salary, health benefits and pensions. Schools are promised another $2 billion increase in spending next fiscal year. State school aid is now more than $20 billion a year and per-pupil spending — as a statewide average — is among the highest in the nation.

From a budget of more than $120 billion, the state just has $54.9 billion left to spend this fiscal year.

Democrats in the Assembly and Republicans in the Senate said they are ready to work together with the governor.

(Source: 1010WINS)