School districts prepare to file suit against county over $30 million loss from sales tax cut
Monroe County, New York’s, suburban school districts are prepared to file a lawsuit against the county over its plans to cut districts' sales tax revenue in half to pay Medicaid costs, which translates to a loss of $30 million annually for the school districts. School officials say the county's plan to balance its budget is illegal and are also upset the county failed to involve them in the decision. Jody Siegle, president of the Monroe County School Boards Association said, "People were really outraged that a decision that would affect the schools so significantly would be made in such a short time and without ever involving the district." In the short-term, schools will have to rework their budgets to make up for lost revenue this year. In some cases, that amounts to a shortfall of a million dollars or more. Some school districts were prepared for the county’s budget move and budgeted extra funds just in case the county pulled funds. While that will not help these districts in the long-term, some taxpayers are wondering if there's fat to be trimmed elsewhere in school budgets. Nonetheless, school officials are quick to remind taxpayers that all budgets and capital projects must be approved by voters; and sometimes are voted down. They point out that without sales tax revenue some schools could be forced to raise taxes or cutback programs.
WHAM13.Com By Sean Carroll
[Editor’s Note: According to the report below, Monroe County Executive Maggie Brooks has defended her plan, saying that it preserves a revenue sharing formula and that districts are seeing a record hike in state aid that will provide them an influx of some $25 million even after the Medicaid swap is implemented. She also contends many districts did not budget for all the sales tax revenue they receive from taxpayers. She also is offering to local districts the services of the county's blue-ribbon panel of business leaders to help them contain costs and protect taxpayers.]
WXXI By Alex Crichton