Education Suit

At a term of the Supreme Court of the State of New York, held at the Courthouse for the Albany
County Supreme Court, in the City of Albany, New York, on the __ day of December, 2009.

PRESENT: HON: _ JUSTICE PRESIDING

STA TE OF NEW YORK SUPREME COURT

COUNTY OF ALBANY

DOUGLAS BECKER; BRIAN A. BOYD; GEORGE HEIDCAMP; PAUL M .. HETLAND; FLORENCE D. JOHNSON; PETER KRUSZYNSKI, KIMBERLY PETRAMALE; HARRY B. REEDER; WAYNE E. SCHLlFKE; SETH TURNER;

NEW YORK STATE UNITED TEACHERS, by its President, RICHARD C. IANNUZZI; NEW YORK STATE SCHOOL BOARDS ASSOCIATION, by its President, WAYNE E. SCHLlFKE; SCHOOL ADMINISTRATORS ASSOCIATION OF NEW YORK STATE,

by its President, PETER KRUSZYNSKI; and the NEW YORK

STA TE COUNCIL OF SCHOOL SUPERINTENDENTS, ORDER TO SHOW CAUSE

Plaintiffs,

Index No.

--------

- against -

HONORABLE DAVID A. PATERSON, as Governor of the State of New York; THE NEW YORK ST ATE DIVISION OF THE BUDGET; ROBERT L. MEGNA, as Budget Director for the New York State Division

of Budget; THE NEW YORK STATE OFFICE OF THE STATE COMPTROLLER; and THOMAS P. DiNAPOLI, as Comptroller of the State of New York,

Oral Argument is Requested.

Defendants.

UPON THE READING AND FILING of the annexed summons and verified complaint,

verified on the 16th day of December, 2009, the annexed affidavit of Robert Reilly, Esq., sworn to on

the 16th day of December, 2009, and the annexed exhibits and the annexed affidavit of Jay Worona,

Esq., sworn to on the 16th day of December, 2009; Susan Lipman, sworn to on the 15th day of

December, 2009; Steven Van Hoesen, sworn to on the 16th day of December 2009; Michele Victoria Handzel-Miller, Esq., sworn to on the 16th day of December 2009; Peter Kruszynski, sworn to on the 15th day of December 2009; and Peter Mannella, sworn to on the 16th day of December 2009,

LET THE DEFENDANTS SHOW CAUSE, at a term of this Court to be held in and for the County of Albany at the Albany County Courthouse on the __ day of December 2009 at __ a.m.zp.m. that day, or as soon thereafter as counsel can be heard, why an order and judgment should not be entered in this proceeding:

Preliminarily enjoining defendants, their agents, assigns and all persons associated with them from impounding or otherwise withholding the aid to localities funds that are due and payable to school districts on or before December 15,2009 or otherwise in December 2009 pursuant to article 73 of the Education Law and by appropriations made by chapter 53 of the laws of2009 including the appropriations bill A. 153-c/S. 53-c.

Sufficient cause appearing therefore, it is

ORDERED, that service of conformed copies of this Order, together with copies of the supporting papers upon which it is based and any other additional supporting affidavits, shall be made by serving an Assistant Attorney General of the State of New York at the Albany Office of the Attorney General and by serving each named defendant or their agents for receipt of service

before __ o'clock p.m. on , 2009, by either personal service, service by overnight

mail, or service by electronic means by sending PDF files containing the papers to an e-mail address designated for such purpose; such service shall be deemed good and sufficient service; and it is further

ORDERED, that copies of all responsive papers on behalf of defendants shall be served on the Office of James R. Sandner, Esq., attorney for plaintiffs, Becker, Boyd, Hetland, Petramale and New York State United Teachers, by its President, Richard C. Iannuzzi, at 800 Troy-Schenectady Road, Latham, New York 12110-2455, and on the Office ofJay Worona, Esq., attorney for plaintiffs,

Heidcamp, Johnson, Reeder, Schlifke and the New York State School Board Association, by its President Wayne Schlifke, at 24 Century Hill Drive, Latham, New York 12110; and on the Office of Arthur Scheuermann, Esq., attorney for plaintiffs Kruszynski and the School Administrators Association of New York State at 8 Airport Park Blvd., Latham, New York, 12110; and on the Office of Michele Victoria Handzel-Miller, Esq., attorney for plaintiffs Seth Turner and the New York State Council of School Superintendents, at 7 Elk Street, Albany, New York 12207, on or before

__ 0' clock p.m. on or before , 2009, by either personal service,

service by overnight mail, or service by electronic means by sending PDP files containing the papers to an e-mail address designated for such purpose; such service shall be deemed good and sufficient service; and it is further

ORDERED, that copies of all reply papers on behalf of plaintiffs shall be made by serving an Assistant Attorney General of the State of New York at the Albany Office of the Attorney General and by serving each named Defendant or their agents for receipt of service before __ o' clock p.m.

on , 2009, by either personal service, service by overnight mail, or service by electronic

means by sending PDP files containing the papers to an e-mail address designated for such purpose; such service shall be deemed good and sufficient service; and it is further

ORDERED, that this Order to Show Cause shall serve as notice to the parties that, regardless of whether defendants file an answer or a motion to dismiss, their submissions will be treated as crossmotions for summary judgment.

Dated: December _, 2009

Justice of the Supreme Court

ENTER:

84765/cwal141

STATE OF NEW YORK SUPREME COURT

COUNTY OF ALBANY

DOUGLAS BECKER; BRIAN A. BOYD; GEORGE HEIDCAMP; PAUL M .. HETLAND; FLORENCE D. JOHNSON; PETER KRUSZYNSKI, KIMBERLY PETRAMALE; HARRY B. REEDER; WAYNE E. SCHLlFKE; SETH TURNER;

NEW YORK STATE UNITED TEACHERS, by its President, RICHARD C. IANNUZZI; NEW YORK STATE SCHOOL BOARDS ASSOCIATION, by its President, WAYNE E. SCHLlFKE; SCHOOL ADMINISTRATORS ASSOCIATION OF NEW YORK STATE,

by its President, PETER KRUSZYNSKI; and the NEW YORK STATE COUNCIL OF SCHOOL SUPERINTENDENTS,

SUMMONS WITH NOTICE

Plaintiffs,

Index No.

----

- against -

HONORABLE DAVID A. PATERSON, as Governor of the State of New York; THE NEW YORK STATE DIVISION OF THE BUDGET; ROBERT L. MEGNA, as Budget Director for the New York State Division


Date Filed:

December 16, 2009

Defendants.

PLEASE TAKE NOTICE, that you are hereby summoned and required to serve upon

plaintiffs' attorneys an answer to the complaint in this action within twenty days after the service

of this summons, exclusive of the day of service, or within thirty days after service is complete if

this summons is not personally delivered to you within the State of New York. In case of your

failure to answer, judgment will be taken against you by default for the relief demanded in the

complaint; and

PLEASE TAKE FURTHER NOTICE, that Albany County is designated as the venue ofthe

proceeding as it is the County in which Defendants have their principal place of business, and in

which the defendants engaged in the acts giving rise to this complaint.

DATED:

December 16, 2009 Latham, New York

JAMES R. SANDNER, ESQ.

Attorney for Plaintiffs Becker, Boyd, Petramale, Hetland, and NYSUT, by its President Richard C. Iannuzzi

800 Troy-Schenectady Road

Latham, New York 12110-2455 Telephone: (518) 213-6000

JA Y WORONA, ESQ.

Attorney for Plaintiffs Heidcamp, Johnson, Reeder, and NYSSBA, and its President Wayne Schlifke

24 Century Hill Drive Latham, New York 12110 Telephone: (518) 783-0200

BY:.~;~A~-6. t_~~y:~~~-~~..----

~Casagran~ ~orona

Robert T. Reilly

Susan W. Fuller

Elizabeth R. Schuster

ARTHUR SCHEUERMANN, ESQ. Attorney for Plaintiffs SAANYS, and its President Peter Kruszynski

8 Airport Park Blvd

Latham, New York 12110

Telephone: (518) 782-0600

BY:~~

MICHELE VICTORIA HANDZELMILLER, ESQ.

Attorney for Plaintiffs New York

State Council of School Superintendents and Seth Turner

7 Elk Street

Albany, New York 12207 Telephone: (518) 449-1063

Arthur Scheuermann

TO: GOVERNOR DAVID A. PATERSON The Capitol

Albany, NY 12224

NEW YORK STATE DIVISION OF THE BUDGET The Capitol

Albany, NY 12224

ROBERT L. MEGNA, BUDGET DIRECTOR New York State Division of the Budget

The Capitol

Albany, NY 12224

NEW YORK STATE OFFICE OF THE STATE COMPTROLLER 110 State Street

Albany, NY 12236

NEW YORK STATE COMPTROLLER HONORABLE THOMAS P. DiNAPOLI Office of State Comptroller

110 State Street

Albany, NY 12236

HONORABLE ANDREW M. CUOMO New York State Department of Law The Capitol

Albany, NY 12224


COUNTY OF ALBANY

DOUGLAS BECKER; BRIAN A. BOYD; GEORGE HEIDCAMP; PAUL M .. HETLAND; FLORENCE D. JOHNSON; PETER KRUSZYNSKI, KIMBERLY PETRAMALE; HARRY B. REEDER; WAYNE E. SCHLIFKE; SETH TURNER;

NEW YORK STATE UNITED TEACHERS, by its President, RICHARD C. IANNUZZI; NEW YORK STATE SCHOOL BOARDS

ASSOCIATION, by its President, WAYNE E. SCHLIFKE; SCHOOL ADMINISTRATORS ASSOCIATION OF NEW YORK STATE,

by its President, PETER KRUSZYNSKI; and the NEW YORK

ST ATE COUNCIL OF SCHOOL SUPERINTENDENTS,

VERIFIED COMPLAINT

Plaintiffs,

Index No.

------

- against-


of Budget; THE NEW YORK STATE OFFICE OF THE STA TE COMPTROLLER; and THOMAS P. DiNAPOLI, as Comptroller of the State of New York,

Date Filed:

December 16, 2009

Defendants.

Plaintiffs, Douglas Becker, Brian A. Boyd, Paul M. Hetland, Kimberly Petramale, and New

York State United Teachers, by President Richard C. Iannuzzi, by their attorney, James R. Sandner,

Esq., ( Richard E. Casagrande, Robert T. Reilly, Susan W. Fuller, and Elizabeth R. Schuster, Esqs.

of Counsel); and

Plaintiffs George Heidcamp, Harry Reeder, Florence D. Johnson, Wayne Schlifke, and New

York State School Boards Association, by its President, Wayne Schlifke, by their attorney, Jay

Worona, Esq.; and

Plaintiffs School Administrators Association of New York State and Peter Kruszynski, Individually and as President of the School Administrators Association of New York State, by their attorney, Arthur Scheuermann; Esq.;and

Plaintiffs Seth Turner and New York State Council of School Superintendents, by their attorney, Michele Victoria Handzel-Miller, Esq.,respectfully allege:

1. PRELIMINARY STATEMENT

1. Plaintiffs commence this action for declaratory and injunctive relief to: (a) declare

that defendants' actions in ordering and effecting the impoundment of state funding for the general support of New York public schools that was appropriated by the New York Legislature in the enacted 2009-2010 New York State Budget, and apportioned by the Commissioner of Education, and which were due on or before December 15, 2009, pursuant to Article 73 of the Education Law violates the New York Constitution. Additionally, plaintiffs seek to enjoin defendants preliminarily and permanently from failing to timely pay and from continuing to impound such funds.

II. JURISDICTION

2. This Court has jurisdiction to issue a declaratory judgment pursuant to CPLR §300 1

and §3017, and to grant injunctive relief pursuant to CPLR Article 63. This Court has additional jurisdiction to grant declaratory and equitable relief, including preliminary and permanent injunctive relief, pursuant to State Finance Law Article 7-A (§§123-123U)).

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III. VENUE

3. Venue is laid in the County of Albany, as it is the County where defendants have their

principal place of business, and where the material events occurred.

4. No prior application for the relief requested in this complaint has been made in any

forum.

IV. PLAINTIFFS

5. Plaintiff Becker is and was, at all relevant times, over twenty-one years of age. He

resides at 698 Attridge Road, in the Town of Churchville, New York. Churchville is encompassed within the Churchville-Chili Central School District, where he is a homeowner and taxpayer. He is challenging defendants' action as a citizen-taxpayer.

6. Plaintiff Becker is also the parent ofa tenth grade student who is currently attending

the Churchville-Chili Senior High School, a public school within the Churchville-Chili Central School District.

7. Plaintiff Becker is employed by the Churchville-Chili School District, as a Math

teacher. He also serves as the President of the Churchville-Chili Education Association, the local union representing teachers in the district

8. Plaintiff Boyd is and was, at all relevant times, over twenty-one years of age. He

resides at 245 Rumsey Road, in the City of Yonkers, New York, where he is a homeowner and taxpayer. He lives in the Yonkers City School District.

9. Plaintiff Boyd is employed by the Yonkers City School District as a Fourth Grade

teacher.

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10. Plaintiff Heidcamp is and was, at all relevant times, over twenty-one years of age.

He resides at 2314 Route 32, in the Town of Saugerties, New York, where he is a homeowner and taxpayer. He lives in the Saugerties Central School District.

11. Plaintiff Heidcamp is also the President of the Saugerties School Board.

12. Plaintiff Hetland is and was, at all relevant times, over twenty-one years of age. He resides at 40 Alpine Street in the City of Rochester, New York where he is a homeowner and taxpayer. He lives in the Rochester City School District.

13. Plaintiff Hetland is employed by the Rochester City School District as a Social

Studies teacher.

14. Plaintiff Johnson is and was, at all relevant times, over twenty-one years of age. She

resides at 40 Pansey Place in the City of Buffalo, New York, where she is a homeowner and taxpayer. She lives in the Buffalo City School District.

15. Plaintiff Johnson also serves as a member of the Buffalo Board of Education.

16. Plaintiff Johnson is also the Vice- President of the Board of Directors of the New York State School Boards Association, as well as its President-Elect.

17. Plaintiff Kruszynski is and was, at all relevant times, over twenty-one years of age.

He resides at 6485 Salt Road, in the Town of Clarence, New Yark, where he is a homeowner and taxpayer. He lives in the Lancaster Central School District.

18. Plaintiff Kruszynski is also Principal of the Lancaster Middle School and also has

children attending public schools in New York State.

19. Plaintiff Kruszynski is also President of the School Administrators Association of

New York State.

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20. Plaintiff Petramale is and was, at all relevant times, over twenty-one years of age.

She resides at 31 Woodland Falls Road, in the Town of Saugerties, New York, where she is a homeowner and taxpayer. She lives in the Saugerties Central School District.

21. PlaintiffPetramale is employed by the Saugerties Central School District, as a Math

teacher, and is the parent of three children who are currently attending public schools within the Saugerties Central School District.

22. Plaintiff Reeder is and was, at all relevant times, over twenty-one years of age. He

resides at 812 Jeffrey Street, in the Town of Herkimer, New York, where he is a homeowner and taxpayer. He lives in the Herkimer Central School District.

23. Plaintiff Reeder is on the School Board for the Herkimer Central School District,

where he has served for 18 years.

24. Plaintiff Schlifke is and was, at all relevant times, over twenty-one years of age. He

resides at 1585 Westwood Road in the Town of Alden, New York, where he is a homeowner and taxpayer. He lives in the Alden Central School District.

25. Plaintiff Turner is and was, at all relevant times, over twenty-one years of age. He

resides at 32 Royal Oak Road, in the Village of Stone Ridge, New York, where he is a homeowner and taxpayer. He lives in the Saugerties Central School District.

26. Plaintiff New York State School Boards Association is a membership corporation

whose membership consists of approximately ninety-three percent of the public school districts of New York State, includes boards of cooperative services which, inter alia, advocates on behalf of its members on issues oflegal significance with statewide implications. Plaintiff Wayne E. Schlifke is its President.

5

27. Plaintiff New York State United Teachers is the state's largest union, representing

approximately 600,000 teachers, school-related professionals, academic and professional faculty in higher education, professionals in education and health care and retirees. Plaintiff Richard C. Iannuzzi is its duly elected President.

28. Plaintiff School Administrators Association of New York State is a professional

association representing principals, assistant principals, supervisors , directors and other professionals statewide who are responsible for the coordination of supervision of school programs, employees, or finance.

29. Each of the individual plaintiffs is specifically aggrieved by the actions of defendants

in illegally withholding state aid from their school district. Each plaintiff also has standing, as a citizen who has paid or is paying state income or sales taxes, to bring this action for equitable and declaratory relief under Article 7-A of the State Finance Law.

V. DEFENDANTS

30. Defendant Honorable David A. Paterson is the Governor and Chief Executive

Officer of the State pursuant to Article IV of the Constitution. His principal place of business is located at the Capitol in Albany, New York.

31. Defendant New York State Division of the Budget is a part of the Executive Branch

and is responsible for advising the Governor regarding the State Budget pursuant to Executive Law § 100 and State Finance Law, Article III and Article IV.

32. Defendant Robert L. Megna, is the duly appointed Budget Director for the Division

of Budget. As such he is the Chief Executive Officer of the Division of the Budget pursuant to the

6

Executive Law.

33. Defendant New York State Office of the State Comptroller is authorized, pursuant

to the New York State Constitution, Article V, § 1 and has such duties as are prescribed by the Constitution.

34. Defendant Honorable Thomas P. DiNapoli is the Comptroller of the State of New

York, having such duties as provided in Article V of the Constitution.

VI. FACTS

Separation o{Powers

35. The New York Constitution establishes that governmental powers are distributed

among three co-equal branches of government. (New York Constitution, Art. III, § 1; art. IV, § I; Art. VI).

36. The legislative power of New York State is vested in the Senate and the Assembly.

(New York Constitution, Art. III, § 1).

37. The Governor is the Executive Officer of the State (New York Constitution, Art. IV.

38. The Legislature makes the critical policy choices and the Governor implements those policy choices.

The Budget Process

39. The Governor must submit a proposed New York State Budget to the legislature,

which includes revenue bills or other legislation necessary to balance the budget. (New York Constitution, Art. VII, §§ 2 & 3).

40. The New York State Legislature is empowered to review the budget and take action,

7

depending on the nature of the appropriation. (New York Constitution, Art. VII, §4).

41. Every appropriation made by the Legislature must specify the object or purpose to

which the appropriated sum shall be applied. (New York Constitution, Art. VII, §7).

42. The Governor is not obligated to maintain a balanced budget throughout the fiscal

year. (New York Constitution, Art. VII, §2.)

The Appropriations in the Enacted State Budget

43. The Governor has the authority to object, or use a "line item veto" which permits the

Govemorto strike certain appropriations from the New York State Budget. (New York Constitution,

Art. IV, §7).

44. If the Governor objects to one or more appropriations, the Governor must, at the time

the bill is signed into law, append a statement of the items to which he or she objects, and the

appropriation thereby does not take effect. (New York Constitution, Art. IV, § 7).

45. The New York State Legislature appropriated money to support public education in

the 2009-10 Budget in Appropriations Bill A.153e/S52c, as follows:

State's General Fundi Aid to Localities Local Assistance Account -00 1 (Includes "general support for public schools") Local Assistance Account $19,249,597,000 billion.

46. Also due to be paid to school districts on or before December 15, 2009, is a portion

of the School Tax Relief aid known as "STAR" aid, pursuant to Education Law §3609-e(2)(f), and

State Finance Law §54-f.

47. On April 7, 2009, the New York State Budget for fiscal year 2009-2010 was signed

8

into law by Governor Paterson. (L.2009, ch 53).

48. The Legislature appropriated funding for public schools in New York State in

A.153e/S.53c, an Appropriations Bill for education, labor and family assistance in the 2009-20 I 0 New York State Budget.

49. In its Appropriations Bill, the Legislature included appropriations for the General

Fund/Aid to Localities Local Assistance Account 001, which contained moneys to be used for "general support for public schools," and it appropriated funds from the school tax relief account 053.

The Payment Schedule

50. Pursuant to Section 360 I of the Education Law, the Commissioner of Education

apportions the amount annually appropriated by the legislature for the support for public schools.

51. The Education Law also sets out a schedule whereby moneys that are appropriated by

the Legislature will be apportioned and given directly to school districts during the fall, according to a specific schedule.

52. These payments, made directly to school districts, guarantee that a fixed percentage

of a school district's general aid apportionments, will be made to and received by school districts after statutorily prescribed payments are made, such as deductions for payments to the teachers' retirement system.

53. According to the statutory mandate, school districts shall receive payments made in

the fall, or "fixed fall payments," on or before October 15, on or before November 15, and on or before December 15. Education Law § 3609-a(I)(a)(4).

54. The Education Law mandates that on or before October 15 school districts will receive

9

an estimated twelve and one-half percent (12 Yz%) of moneys remaining, after statutorily prescribed payments are made, from the appropriation for general support of public schools; eighteen and seventy- five one-hundredths (18 75/100%) percent of moneys remaining, after the October payments are made, on or before November 15; and, on December 15, an estimated twenty-five percent (25%), of moneys remaining after the October and November payments are made.

55. In addition to the fixed fall payments, an amount of "excess cost aid" is also due to

the school districts on or before December 15, pursuant to Education Law §3609-b(1 )(b )(2).

STAR Payments

56. STAR aid also is due on or before December 15,2009 pursuant to Education Law §

3609-e(2)(t) and State Finance Law § 54-f.

The Extraordinary Session

57. The Governor called an extraordinary session of the Legislature on November 10,

2009 to address, among other things, the state Budget and appropriations.

58. During the extraordinary session, the Legislature voted and the Governor approved

certain Article VII bills and appropriations bills.

59. On November 25, 2009, in an extraordinary session of the Legislature, defendant

Governor Paterson submitted a bill to the Legislature that would have allowed him to authorize the Director of the Budget to reduce payment of appropriations made by the Legislature.

60. That bill, Program Bill No. 211, S.660 17/ AAOO 17, was not enacted by the Legislature,

but instead referred to a committee. This proposal has not been enacted into law.

10

61. The Governor concluded the Extraordinary Session on December 2,2009.

The Unconstitutional Withholdings

62. On December 9,2009, Governor Paterson announced that he and defendant director

of the Division of Budget Megna would administratively withhold aid to locality payments due to school districts and other localities that would otherwise be paid on or before December 15,2009.

63. At such press conference announcement on December 9, 2009, the Governor also

stated that he expected to be sued as a result of taking such action, stating that "I am directing the Division of the Budget to limit payments until the economy is leveled off. I will probably be sued for this ... "

64. As a result, Governor Paterson ordered that DOB limit or withhold the education

funding required as the third fixed fall payment to school districts, the excess cost aid, and the STAR aid due on or before December 15,2009.

65. In a press release issued on Sunday, December 13,2009, the Governor announced that

he directed the Division of the Budget to withhold 10 %, or $146 million, of the fixed fall payments due to be paid to school districts on or before December 15,2009, and 19%, or $436 million, in STAR aid to school districts due on or before December 15,2009.

66. In taking these actions, the Governor and the budget director are impounding $582

million is State aid to school districts that was lawfully appropriated by the NYS Legislature, signed into law by the Governor, and apportioned by the Commissioner of Education as being due and payable on or before December 15,2009

67. Upon information and belief, as a result of these actions, numerous school districts

11

will be financially devastated, teachers and other educational staff will be laid off, and programs and funding dependent on the anticipated December 15 fixed fall payments, excess cost aid and STAR aid will necessarily be cut.

68. As a further result of the withholding of such allocated funds, the ability of school

districts to offer minimally sound basic education to students in their schools will be seriously impacted and impaired, thus depriving those students of their constitutional right to a sound basic education.

AS AND FOR A FIRST CAUSE OF ACTION

69. Under the New York Constitution, Article III, the legislative power of this State is

vested in the New York State Legislature.

70. The separation of powers doctrine requires that the Executive Branch, which includes

the Governor and the Division of the Budget, not impair the Legislature in the performance of its constitutional duties, or, usurp the Legislature's constitutional powers.

71. The Governor is duty bound to ensure that appropriations are faithfully executed.

72. The Executive Branch, which includes the Governor and the Division ofthe Budget, has no inherent, express or discretionary power to impound funds that have been appropriated by the Legislature.

73. As such, the Governor's and Division of Budget's actions are an unconstitutional

usurpation of legislative authority in direct violation of the New York Constitution, Article III and IV.

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AS AND FOR A SECOND CAUSE OF ACTION

74. The New York Constitution, Art. XI, § 1, mandates that the legislature provide for the

maintenance and support of a system of free common schools, wherein all the children of the state maybe educated.

75. This constitutional provision mandates that the State provide funding to school

districts to ensure that the public schools receive adequate funding to provide a sound basic education to the children of New York State.

76. The defendants' actions in impounding legislatively authorized public school funding

violates Article XI § 1, and unconstitutionally interferes with the right of the children of New York State to receive a sound basic education.

77. The Defendants' actions are thus violative of the New York Constitution, Art. XI, § 1

AS AND FOR A THIRD CAUSE OF ACTION

78. The Governor chose to sign the 2009-2010 New York State Budget, which contained

the appropriations for aid to education that allocated funds to school districts statewide.

79. Prior to signing such Budget, the Governor did not veto any of the specific

appropriations for education pursuant to his authority under the New York Constitution.

80. The Education Law sets forth a statutorily required formula for mandatory payments

to school districts of state funds, such payments designated as fixed fall payments as required in Section 3609-a(l )(a)(4) of the Education Law, the excess cost aid required by section 3609-b of the Education Law and the STAR payments, as required by Section 3609-e(2)(f) of the Education Law.

81. The Governor lacks any legislative, statutory or constitutional basis to order funds that

13

are statutorily required by the Education Law not be paid in conformance with that statute.

82. The Governor's action in ordering and effecting the withholding of funds properly

allocated to education in the New York State Budget and required to be paid to school districts in a payment to be made on or before December 15,2009 violates the Education Law, is illegal and ultra

vires.

AS AND FOR A FOURTH CAUSE OF ACTION

83. The appropriation bills at issue contain language to the effect that none of the

appropriated funds shall be available for payment until the director of the budget issues a certification of approval.

84. Upon information and belief, the language mandates the budget director to review and

certify that all relevant payments have been duly and legally appropriated, and that the payments are paid timely and in the correct amount.

85. Upon information and belief, this language does not authorize the director of the

budget to overrule duly enacted legislative appropriations, or to make policy decisions about whether, when, or what percentage of these duly enacted appropriations shall be paid.

86. Upon information and belief, the budget director has not exercised his statutory

certification duties in good faith but has, at the direction of the defendant Governor, misused the certification process to implement the Governor's unilateral policy decisions about budgeting and deficit reduction, in patent disregard of his duty to faithfully execute the Article VII and appropriations bills enacted by the legislature and previously signed into law by the Governor.

87. These actions are illegal and ultra vires.

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WHEREFORE, Plaintiffs respectfully request that an Order and Judgment be entered:

1. Declaring that the Governor's orders and actions are unconstitutional as violative of

the New York Constitution's doctrine of the separation of powers;

2. declaring that the Defendants' actions in ordering and effecting an impoundment of

money allocated to education by the New York State Legislature in the 2009-2010 Budget is

unconstitutional and otherwise contrary to law;

3. ordering the defendants to immediately release the illegally impounded education

funding as required by the Education Law;

4. enjoining the Governor and the Executive Branch from any future withholding of

monies that were allocated to fund education in the New York State Budget for 2009-2010;

5. awarding attorneys fees to plaintiffs; and

6. granting the plaintiffs such other, further and different reliefas this Court may deem

just and proper, together with the costs and disbursements of this proceeding.

DATED:

December 16, 2009 Latham, New York

JAMES R. SANDNER, ESQ.

Attorney for Plaintiffs Becker, Boyd, Petramale, Hetland, and NYSUT, by its President Richard C. Iannuzzi

800 Troy-Schenectady Road

Latham, New York 12110-2455 Telephone: (518) 213-6000

JAY WORONA, ESQ.

Attorney for Plaintiffs Heidcamp, Johnson, Reeder, and NYSSBA, and its President Wayne Schlifke

24 Century Hill Drive Latham, New York 12110 Telephone: (518) 783-0200

Richard E. Casagrande Robert T. Reilly

Susan W. Fuller

Elizabeth R. Schuster

15

by:

ARTHUR SCHEUERMANN, ESQ. Attorney for Plaintiffs SAANYS, and its President Peter Kruszynski

8 Airport Park Blvd

Latham, New York 12110

Telephone: (518) 782-0600

BY:~~

Arthur Scheuermann

~~

84768!cwal141

MICHELE VICTORIA HANDZELMILLER, ESQ.

Attorney for Plaintiffs New York

State Council of School Superintendents and Seth Turner

7 Elk Street

Albany, New York 12207 Telephone: (518) 449-1063

tf~

iller

16


COUNTY OF ALBANY


NEW YORK STATE UNITED TEACHERS, by its President, RICHARD C. IANNUZZI; NEW YORK STATE SCHOOL BOARDS ASSOCIATION, by its President, WAYNE E. SCHLIFKE; SCHOOL ADMINISTRATORS ASSOCIATION OF NEW YORK STATE,


VERIFICATION

Plaintiffs,

- against-



Defendants.

ST ATE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

RICHARD E. CASAGRANDE, being duly sworn, deposes and says: that deponent is an attorney duly admitted to the practice of law in the courts of the State of New York and is associated with and is of counsel to James R. Sandner, Esq., attorney for Plaintiffs Becker, Boyd, Hetland, Petramale and NYSUT, by its President, Richard C. Iannuzzi. Deponent has read the foregoing Verified Complaint and knows the contents thereof; that the same is true to deponent's own knowledge, except as to the matters therein stated to be alleged on information and belief, and that as to those matters deponent believes them to be true. Deponent says that the reason this Verification is made by deponent and not by Plaintiffs is that Plaintiffs are not located within the County of Albany, the county in which deponent has his office. The grounds of deponent's belief as to all matters not stated upon deponent's own knowledge are as follows:

review of documents and correspondence. ~~~~z;(

ICHARD E. CASAerRANIiE I'

Subscribed and sworn to

befor me this 16th day of December, 2009


COUNTY OF ALBANY

DOUGLAS BECKER; BRIAN A. BOYD; GEORGE HEIDCAMP; PAUL M. HETLAND; FLORENCE D. JOHNSON, PETER KRUSZYNSKI; KIMBERLY PETRAMALE; HARRY B. REEDER; WAYNE E. SCHLIFKE; SETH TURNER; NEW YORK STATE UNITED TEACHERS, by its President, RICHARD C. IANNUZZI; NEW YORK STATE SCHOOL BOARDS ASSOCIATION by its President, WAYNE E. SCHLIFKE; SCHOOL ADMINISTRATORS ASSOCIA TION OF NEW YORK STATE by its President,

PETER KRUSZYNSKI; and the NEW YORK STATE COUNCIL OF SCHOOL SUPERINTENDENTS,

Plaintiffs,

against

HONORABLE DAVID A. PATTERSON, as Governor of the State of New York; THE NEW YORK STATE DIVISION

OF THE BUDGET; ROBERT L. MEGNA, as Budget Director

for the New York State Division of Budget; THE NEW YORK STATE OFFICE OF THE STATE COMPTROLLER; and THOMAS P. DiNAPOLI, as Comptroller of the State of New York,

Defendants,

STATE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

VERIFICATION

JA Y WORONA, being duly sworn, deposes and says: that deponent is an attorney duly admitted to the practice of law and is associated with and is of counsel to the New York State School Boards Association, and attorney for Plaintiffs Heidcamp, Johnson, Reeder and Schlifke. Deponent has read the foregoing Verified Complaint and knows the contents thereof; that the same is true to deponent's own knowledge, except as to the matters therein stated to be alleged on information and belief, and that as to those matters deponent believes them to be true. Deponent says that the reason this Verification is made by deponent and not by Plaintiffs Heidcamp, Johnson, Reeder and Schlitke is that they are not located within the County of Albany, the county in which deponent has his office. The grounds of deponent's belief as to all matters not stated upon deponent's own knowledge are as follows: review of documents and correspondence and conversation with t~;:___

J YWORONA

Sworn to before me on this 16th day of December, 2009.

~C2A&...IG---

Notary Public ARLENE P. McKEON-.ceeIIS Notary Public, State of New York Qualified in Greene County No.01MC5052014 Commission Expires Novemberi3, 20JJ...


COUNTY OF ALBANY


NEW YORK ST ATE UNITED TEACHERS, by its President, RICHARD C. IANNUZZI; NEW YORK STATE SCHOOL BOARDS ASSOCIA nON, by its President, WAYNE E. SCHLIFKE; SCHOOL ADMINISTRATORS ASSOCIA nON OF NEW YORK STATE,


VERIFICA nON

Plaintiffs,

- against-



Defendants.

STATE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

KEVIN S. CASEY, being duly sworn, deposes and says: that deponent is an auoi [ley duly admitted to the practice of law in the courts of the State of New York and is associated witl i and is of counsel to Arthur Scheuermann, Esq., attorney for plaintiffs School Administrators Association of New York State and its President Kruszynski. Deponent has read the foregoing Verified Complaint and knows the contents thereof; that the same is true to deponent's own knowledge, except as to the matters therein stated to be alleged on information and belief, and that as to those matters deponent believes I Item to be true. Deponent says that the reason this Verification is made by deponent and not by Plaint; ffs is that Plaintiffs are not located within the County of Albany, the county in which deponent has his office. The grounds of deponent's belief as to all matters not stated uIL n deponent's own knowledge are (lR follows: review of documents and correspondence.

Subscribed and sworn to

before e this 16th day of December, 2009.

~


COUNTY OF ALBANY

DOUGLAS BECKER; et al.

Affidavit of Michele Victoria Handzel-Miller

Plaintiffs,

Index No.

against

HONORABLE DAVID A. PATTERSON, as Governor of the State of New York; et al.

December 16,2009

Defendants,

STATE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

MICHELE VICTORIA HANDZEL-MILLER, being duly sworn, deposes and says: that deponent is an attorney duly admitted to the practice of law in the courts of the State of New York and is associated with and is of counsel to the New York State Council of School Superintendents, attorney for Plaintiff Turner. Deponent has read the foregoing Verified Complaint and knows the contents thereof; that the same is true to deponent's own knowledge, except as to the matters therein stated to be alleged on information and belief, and that as to those matters deponent believes them to be true. Deponent says that the reason this Verification is made by deponent and not by Plaintiff is that Plaintiff is not located within the County of Albany, the county in which deponent has her office. The grounds of deponent's belief as to all matters not stated upon deponent's own knowledge are as follows: review of documents and correspondence and conversations with the Plaintiff.

Sworn to before me on this ie" day of

Dece er,2009.


COUNTY OF ALBANY

DOUGLAS BECKER, et al,

AFFIDAVIT

Plaintiffs,

Index No.

-------

- against -

HONORABLE DAVID A. PATERSON, as Governor of the State of New York, et al,

Defendants.

ST A TE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

ROBERT T. REILLY, being duly sworn, deposes and says:

Preliminary Statement

l. I am of counsel to James R. Sandner, Esq., the attorney of record for the plaintiffs,

and, as such, I am fully familiar with the facts in this matter.

2. I submit this affidavit in support of plaintiffs' application for a preliminary injunction,

and for declaratory and permanent injunctive relief. Plaintiffs' motion for preliminary injunction

is before the court pursuant to an order to show cause submitted with this affidavit. On December

16,2009, Plaintiffs counsel notified the New York State Attorney General's Office that Plaintiffs

were submitting such order to show cause to the court. Plaintiffs' counsel made a good faith effort

to notify the Attorney General of the time, date and place that the application will be made and did

8. Also, excess cost aid is due on or before December 15,2009 pursuant to Education

Law §3609-b.

9. In addition, a payment of school tax relief aid, known as "STAR" aid also is due on

or before December 15, 2009 pursuant to Education Law §3609-e(2)(f) and State Finance Law §54-f.

10. Upon information and belief, the defendants' impounding of such funds will have a

substantial and material impact on public school districts' ability to meet their financial obligations for the 2009-10 school year.

The Unconstitutional Administrative Reductions

11. On Wednesday, December 9,2009, at a noontime presentation made at the American

Museum of Finance, 48 Wall Street, New York, NY 10005, the Governor and the Director of the Budget, Robert Megna, announced their intention to "administratively" withhold aid to locality payments due to school districts and other localities that would otherwise by paid in December 2009. They claimed a right to withhold such payments pursuant to the Division of the Budget's "certification" authority. A copy of a transcription of the Governor's speech as published on the web page of the Governor's office on December 10,2009 is attached hereto as Exhibit "A."

12. On Sunday, December 13,2009, the Governor issued a press release detailing the

funds that he was directing the Budget Director to withhold. A copy of that press release is attached hereto as Exhibit "B". The Governor announced that he would reduce the fixed fall school aid payments and excess cost aid payments due on December 15,2009 by ten percent (10%) ($146 million), and that he would reduce the STAR aid due on December 15, 2009 by nineteen percent (19%) ($436 million). This amounts to a total impoundment of $582 million in constitutionally

3

(DFP) at that time. In a press release dated November 5, 2009, he touted the components of his proposed DFP as including "across-the-board spending reductions." A copy of the Governor's press release regarding that extraordinary session dated November 5, 2009 is attached hereto as Exhibit "D." The Governor concluded such extraordinary session on December 2,2009 with the enactment of an Article VII bill and an appropriations bill incorporating a deficit reduction plan, though not one including all of the reductions he had proposed.

20. In his presentation on December 9, 2009, however, the Governor expressed his

dissatisfaction with the amount of reductions that the Legislature passed during the extraordinary session in its deficit reduction legislation -- despite his approval of it -- and declared his intent to unilaterally withhold aid to locality payments to school districts and other localities. In so doing, the Governor overstepped his constitutional authority.

21. In his speech on December 9, 2009, the Governor expressly stated that he believed

that "[t]he legislature made ... the wrong choice." The Governor then said that it was time for him "to make a choice."

22. At that point, the Governor directed the Division of the Budget to limit payments. He

said that he "will continue to hold payments until the economy has leveled off." He plainly acknowledged that he "will probably be sued for this."

23. In other words, the Governor made a policy choice that he believed the Legislature

should have made, but did not.

24. In addition, he acknowledged he did not have the authority to make such choice -

which is why he would get sued - but he did it regardless.

25. In directing the budget director to impound lawfully mandated appropriations, the

5

Governor was not exercising any executive power under the Constitution, rather he was taking a

politically expedient action.

26. Choosing among appropriations and determining which appropriations, ifany, should

be reduced and by how much is a critical policy decision to be made by the Legislature.

27. The Governor cannot arrogate this policy making power to himself.

28. As the sole rationale for his ability to withhold funds, the Governor, in his December

13,2009 press release, cites to a subsection of the appropriations bill in the enacted State budget for

2009-2010. A. 153-c/ S. 53-c at section 1, paragraph g.

29. That subsection states the following:

g) No moneys appropriated by this chapter shall be available for payment until a certificate of approval has been issued by the director of the budget, who shall file such certificate with the department of audit and control, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee.

30. That language, however, also was included in the enacted State budget for 2008-09

and in budgets prior to that budget. It was not unique for 2009-10. It is used in the State Finance

Law and in the administrative code applicable to the division of the budget. E.g., State Finance Law

§49; e.g., 9 NYCRR §13S.10.

31. Nothing in Article VII of the Constitution or in the State Finance Law gives the

Budget Director the power to withhold appropriations based on policy decisions made by the

Governor, or by the budget director, contrary to constitutionally mandated appropriations passed by

the Legislature and signed into law by the Governor.

32. Specifically, neither Article III, "the Budget," nor Article IV, "Appropriations," of

the State Finance Law gives the budget director authority to withhold lawful appropriations.

6

33. On its face, the language of subdivision "g" does not give the Governor the ability

to impound funds that were lawfully appropriated by the Legislature in an enacted budget approved by the Governor. In fact, it does not give any authority at all to the Governor, as it speaks only to the director of the budget. It certainly does not give the Governor the ability to pick which lawfully enacted appropriations should be paid or to unilaterally reduce any particular appropriation.

34. The language of subdivision "g" merely mandates the director of the budget, in

accordance with Article IV of the State Finance Law, to make sure that any amounts paid are paid in the correct amount, at the correct time and pursuant to the correct, lawful appropriation.

35. The language does not authorize the director of the budget to re-write the

appropriations made by the Legislature and approved by the Governor in the lawfully enacted State budget.

36. As is more fully set forth in the accompanying memorandum of law, the Court of

Appeals rejected a similar claim in County of Oneida v. Berle, 49 N.Y.2d at 520. There, the appropriation at issue read, in part, that "'[t]he moneys hereby appropriated shall be available for payment of state aid ... shall be apportioned in accordance with regulations promulgated by the commissioner of environmental conservation and as approved by the director of the budget." 49 N.Y.2d at 520. The Court of Appeals rejected the Budget Director's argument that "the appropriation statute invested the director with discretionary authority to withhold funds designated for the ... aid program." 49 N.Y.2d at 524.

37. The Court of Appeals found that "the appropriation did not confer unfettered

discretion upon the director to withhold all or any portion of the appropriation." 49 N.Y.2d at 524. The Court further found that "[ s ]uch a legislative delegation would be drastic indeed, and may not

7

be inferred from ambiguous language," especially "in instances where the Legislature has provided no guidelines for the exercise of discretion." 49 N. Y.2d at 524.

38. Clearly, in the present case, the Legislature did not delegate to the Budget Director

its power to impound appropriations.

39. Nor could the Legislature lawfully delegate such power to the Budget Director.

40. Under Article VII of the Constitution, such power lies with the Legislature.

The Constitutional Separation of Powers

41. The people of the State of New York have an interest in maintaining the separation

of powers that are set forth in the State Constitution. According to the Court of Appeals, '''[t]he safety offree government rests upon the independence ofeach branch and the even balance of power between the three ... [i]t is not merely for convenience in the transaction of business that they are kept separate by the Constitution, but for the preservation of liberty itself. '" New York State Bankers Ass 'n v. Wetzler, 81 N.Y.2d 98, 105, (1993), quoting, People ex. reI. Burby v. Howland, 155 N.Y. 270,282 (1898).

42. There are three co-equal branches of government in New York. "The legislative

power of this state shall be vested in the senate and the assembly." N. Y.Const.Art.III, § 1.

43. "The executive power shall be vested in the govemor." N.Y.Const.Art. IV, § 1. For

example, the Governor, and his subordinates such as the budget director, are duty bound to take care that appropriations are faithfully executed. County of Oneida v. Berle, 49 N.Y.2d 515,523 (1980).

44. According to the Court of Appeals, the Legislature makes the critical policy choices,

while the executive is responsible to implement those policies. Saratoga County Chamber of Commerce v. Pataki, 100 N.Y.2d 801,251 (2003).

8

45. The third branch, of course, is the judiciary, "a unified court system for the state."

N. Y.Const. Art. VI, § 1. According to the Court of Appeals, the judiciary "will always be available to resolve disputes concerning the scope of that authority which is granted by the Constitution to the other two branches of government." King v. Cuomo, 81 N.Y.2d 247, _(1993).

Likelihood of Success on the Merits

46. In the case at bar, by impounding certain lawfully authorized appropriations, the

Governor is exercising legislative power, not executive power, and he is thereby usurping the power of the Legislature. Regardless of any proffered rationale, the Governor is constitutionally prohibited from impounding appropriations that were passed by the Legislature, and that he himselfsigned into law.

Irreparable Harm

47. Of the harms plaintiffs seek to restrain and enjoin, the Governor's disregard for the

constitutional separation of powers must rank high on the list. While in some ways intangible, this harm is nevertheless great and irreparable.

48. According to the Court of Appeals, "[a]n 'act of the legislature is the voice of the

People speaking through their representatives. '" New York State Bankers Ass 'n v. Wetzler, 81

N.Y.2d 98,102 (1993), quoting, Matter of Sherrill v. O'Brien, 188 N.Y.185, 199 (1907).

49. The Governor is intentionally ignoring the voice of the People, seeking instead to

impose on the people his unilateral, constitutionally unauthorized policy decisions about which appropriations will be paid, when and in what amount.

50. In addition to this constitutional violation, there is the practical harm that will be

suffered by the public school districts, and by the students who are the ultimate beneficiaries of the

9

wrongfully impounded appropriations. Upon information and belief, absent injunctive relief, such districts will need to reduce services and layoff staff, causing disruption in the education provided to their students. Upon information and belief, the districts may fail to make payments on obligations and incur more debt, putting their credit at risk and causing them to need additional aid in the future. These districts, upon information and belief, already have undergone belt tightening to make it through the last fiscal year, are under intense pressure to meet the unfunded mandates of the federal No Child Left Behind Act and the State regulations implementing that Act in New York.

5!. The Governor's illegal policy decision to impound nearly $600 million in lawfully

authorized appropriations to our State's public school districts is particularly repugnant, given that Article XI § I of our Constitution mandates the State to offer all of its children the opportunity of a sound basic education. This duty, according to the Court of Appeals, can only be fulfilled by providing adequate school funding. See, Campaign for Fiscal Equity v. State, 86 N.Y.2d 307, 316 ( 1995).

52. Simply directing the Governor to release the impounded payments at some later date

will not make the Districts or the State's school children whole and is not adequate relief.

Balance of the equities tip in favor of Plaintiffs

53. Without being enjoined, the Governor will only be emboldened to take other and

additional unilateral actions, further unbalancing the three coordinate branches of government.

54. Indeed, the Governor is well-aware that his actions violate the Constitution but he

seems intent on carrying through with them regardless of his Constitutional obligations. Evidence of his awareness is twofold.

55. First, the Governor submitted a program bill during the November-December

10

extraordinary session stating, in part, that "the director of the budget shall be authorized, upon approval of the Governor, to direct reduction of payments of part ofany appropriation for fiscal year 2009-10" (Program Bill #211 a copy of which is attached hereto as Exhibit "E"). That bill, if enacted would have given the Governor the very power that he now seeks to unlawfully exercise. The Legislature did not pass that bill, instead it referred the bill to committee. Given that he proposed the program bill and knows that the Legislature did not pass it, it is clear that the Governor knows that he does not have the power to unilaterally impound appropriations.

56. Second, during his presentation on December 9, 2009, the Governor candidly

admitted that he knew he would be sued for his actions in reducing appropriations.

57. Thus, the Governor is acting in reckless and total disregard of the separation of

powers set forth in the Constitution.

58. In fact, on December 2, 2009, the very same day that he approved the Article VII

bill and appropriation bill enacted by the Legislature for its deficit reduction plan, the Governor in a written statement stated, in part, that "I have been and will continue to meet with Budget Director Robert L. Megna and Comptroller Thomas DiNapoli to assess the current cash-flow and revenue situation. Once that assessment is complete, I will announce the specific local assistance reductions I will implement unilaterally." A copy of the statement is attached hereto as Exhibit "F." Clearly, the Governor is now "unilaterally" implementing the reductions that he unsuccessfully urged the Legislature to implement in an Article VII bill. In other words, he as Governor intends to perform the policy making function of the legislature.

59. Finally, in light of the Berle case, the Governor must know that there is no merit to

the argument that the budget director's power to issue certificates of approval allows him to

11

withhold, at the Governor's direction, appropriations such as the withholding announced by the

Governor here.

60. For all these reasons stated in this affidavit, the preliminary injunction should issue.

Sworn to before me this

LINDA C. HUTCHINS

Notary Public, State of New York Residing in Columbia County t J Commission Expires June 30, 20_ Registration #4830995

84766/CWAI141

12

,.

GOVERNOR DAVID A. PATERSON WEDNESDA Y, DECEMBER 9, 2009 Museum of American Finance

Thank you.

Good afternoon to all of you who have braved inclement weather to come and be here before us today. I'd like to thank Lieutenant Governor Richard Ravitch for his presentation and also the Director of our Division for the Budget, Bob Megna, for that rather gloomy forecast inside to go along with the inclement one outside. And also to David Cowan and all the people of the Museum of American Finance who have graciously allowed us to use their facility today. And thank you so much for all of your cooperation and your very. very great service to us in setting up this program.

Good afternoon to all of you who are civic leaders, to those of you proficient in business, those of you who administer capital right here on Wall Street, those of you who represent our labor force and also those of you who work in government. I asked all of you to come here today to advise that we are in a very deep quagmire. New York is now at the breaking point. We are about to cross the financial rubicon into fiscal disaster. If we don't act now and if we don't all understand the perilous circumstance that confront us, it will further impair and impede our ability to address it.

When I became Governor in March of 2008, we closed a $7 billion budget deficit within the first two weeks. And as late as July, the 2009-2010 budget, the one that we passed in April, in July 2008 it was appropriated as having about a $5 billion deficit.

But as I talked to many of you in finance, and as I talked to people around the country about the inertia inherent of the American economy, it became clear to me that many people knew that we were standing on the verge of disaster, but not too many people wanted to talk about it.

At the end of July I gave an address, televised statewide, in which I warned that this would be the worst recession in American history since the Great Depression. I didn't exactly get a pat on the back for doing that. I was compared to Chicken Little, I was described as not knowing anything about finance, and it was said that I misestimated the revenues. The last critique was right, because at the time I estimated that we would have over twice the budget deficit that had originally been projected at about $10.5 billion. I was wrong.

We had a budget deficit that was twice what I had forecast, or $21.1 billion. This is when you add together $17.9 billion from the 2009-2010 budget process and $3.2 billion from the 2008-2009 year when revenues fell and we had to go back and close that bulging gap in our deficit. So, therefore, the budget deficit in New York quadrupled during that period of time.

That is the largest escalation of a budget deficit experienced by a state in the history of the United States. In other words, the one-year rise from $5 billion of deficit to $21 billion accounted for the greatest escalation of a proposed budget deficit in the history of this country.

New York became ground zero for the recession. New York has had revenues down over twice that of the national average; no other state has come within 35% of the downgrade of New York's revenues in the last 18 months. And because of that we have had to take very drastic actions.

,.

And you may agree with some of the actions that we took, and you may disagree with some of them. But certainly balanced against the eroding financial picture and also the highest escalated deficit in the history of this country, you have to look at that world through a completely different prism. We didn't want to raise personal income taxes. We did not desire to relieve property tax rebates. We did not want to cut vital services that hurt some of our most vulnerable people. And we certainly did not want, at this time, to raise fees on the middle class and the under privileged.

Our mind didn't change, our circumstances did. But somehow we balanced two budgets on time in the middle of a recession, never missed a payment to any of our obligators, made sure our payments were on time to schools and local governments, to service providers, and also to our work force. And our credit rating remained the same, one of the strongest in the country.

But that record is threatened at the end of this month because now New York has run out of cash. At the end of this month we have to make $2.5 biIJion of payments for property tax relief, what we caIJ the STAR program, $ 1.6 billion 10 school districts, $800 miIJion to the M.T.A. and other transit outlets, $500 million each to service providers and also to local governments. We are short on those payments.

Last year at this time of the year we had $7.5 biIJion cash on-hand, now we have less than $3 miIJion. And this situation has arisen because personal income taxes, as Mr. Megna discussed just briefly a little while ago, are down $4.2 billion this year.

In addition to that, financial services bonuses are down 22%, capital gains have not come back in the third and fourth quarters as we anticipated that they would. And so New York, which now pays more than any other state to Washington in taxes, is now further encumbered by the fact that in 2006 New York paid $62.1 biIJion more to the federal gOV( rnment than we received back. Only the state of California was close at about $45 biIJion.

In 2007, that figure rose to $86.9 billion that New York paid to the federal government and didn't receive back. California moved up to $60 biIJion. We are way, way ahead of other states in this endeavor. And so as you can see, our issues in New York are tied to the progress and the ability of Wall Street to create revenue. The health of our financial sector directly affects the economic security of people in aIJ comers of New York State.

In 2007 WaIJ Street finances provided 22% of the revenues in New York. More than one out of every $5 in wages comes from Wall Street. WaIJ Street capital is what is able to aIJow for what is on Main Street: smaIJ businesses, creating jobs.

Pundits describe this as a choice between WaIJ Street and Main Street, but in New York, we look at this whole prospect through a whole different prism. In New York Wall Street is Main Street.

Stretching back to 1790, this burgeoning vibrant financial center has been the epicenter of New York's identity and its prosperity. At the center, at the axis, of America's financial activity, New York City, with its great reputation and highquality capital markets, has benefited from those who have listed on our markets here, those who have done business here, and those who have replenished New York's economy.

Now, Wall Street has come under great attack; Americans are mad at Wall Street. They feel that there's been too much irresponsibility, too much greed and too much corruption. New Yorkers join with other Americans feeling that Wall Street has had a role in the burgeoning housing crisis and also in the unavailability of jobs.

Who can blame them? No one. But who can remind them? We can. Remind them of the inextricable connection between Wall Street's progress and New York's economy. Remind them that New York benefits from all that Wall Street actually does. There must be an understanding that Wall Street is the engine of New York's economy.

v

When the grape growers in California were mistreating their workers and spraying their product with pesticides, destroying the environment, California cleaned up the environment and changed their industry, but they stood behind one of their strong revenue raisers in that state.

In Michigan, when the automobile industries made several mistakes, creating a 16% unemployment rate in that state and nearly all going bankrupt, many things were done to try to fix the industry, but people in Michigan stood behind the engine of their economy.

You don't hear anybody in New England complaining about clam chowder.

You don't hear anybody in Maryland complaining about crab cakes.

If you say anything about com in Iowa, they'll run you out of town. If you say anything about oil in Texas, they'll string you up near the nearest tree.

We need to stand behind the engine of our economy in New York and that engine of economy is Wall Street.

Admittedly there are few financial institutions that can escape what would be a good measure of accountability in (his crisis. However, to utterly denigrate and vilify an entire industry at this point must inure into a constructive evaluation, if not acknowledgement, that in New York this has actually been part and parcel with economic growth.

We have experienced the pitfalls and the unfortunate reality of what happens when a market ceases to function profitably But we mustn't, in any way, take for granted what has been to New York and to New Yorkers the catalyst for our current global preeminence.

Economies all around the world seek out what are the networks and the nerve centers that capital market participants have weaved together through a collection of commercial banks, investment banks, market makers, asset managers, boutique advisors and brokerage houses. When companies want to expand their businesses, such as making their factories larger or employing new workers, finding creative new products, or in finding more people to serve as customers, they seek out these financial intermediaries to help raise capital.

Cities and states do the same thing whenever we are building or operating bridges, tunnels, railways, roadways and even schools. So whenever there is money to be raised, or investment across America or all around the world, these markets, these exchanges, and these financial institutions provide this and they're located right here in New York State.

Even in difficult financial times they provide backbone to American businesses that are trying to negotiate uncertainty this would be such as hedging fuel prices for the airlines, or guaranteeing coffee growers, farmers, or those who are engaged

in ranching what the price of their coffee beans, their wheat, or their cattle will be in the future. They assure that there will be future profits for the investments that businesses make today.

And as financial intermediaries, these market makers make sure that anyone that goes in to the capital markets will have a steady and seamless stream of liquidity that will bring buyers and sellers together and will provide for an efficient price discovery and really a functioning marketplace.

So on balance, Wall Street has created careers, has created profits, and has created resources that the State has benefited. And it hasn't just been acquisitions and land transfers or initial public offerings. It's been schools for our children, health care for our families; it's been homes for our neighbors and jobs for our State work force.

So when Wall Street has been burgeoning with success, New York's economy has been replenished. But as Wall Street has taken a very serious decline over the last year and a half, it has had to restructure. Many of you have had to cancel

proposed expansion, you've had to take losses personally, and you've had to, unfortunately, eliminate part of your work force.

But New York State has to restructure as well, because we are tied to where the Wall Street market is going. The Wall Street market decline has had to do with limited resources for every school district in the State. We are unable to complete a five-year road and bridge plan in New York, which provides infrastructure in Long Island and upstate New York, because Wall Street has been diminished. We are unable right now to complete a five-year capital plan for the M.T.A. from that same source, and the M.T.A.'s revenues in the last couple of days have been reported to be down.

But what we really need to understand is how close our government and our quality of life is to the function and to the future of Wall Street itself. And so as we approach probably the most difficult financial period that this State has ever faced, we have got to recognize that it is not just profits and benefits on Wall Street. It is also schools and health care and jobs and housing and our quality of life and the very stability of our financial system that rests on the decisions that we made. We do not have a cash flow problem in this State. We have a lack of cash crisis in this State.

Now, before many of you came out this morning with the horrible weather that you observed, I know that you listened to the radio or watched the television to hear traffic reports and transit reports to realize which trains are delayed and which roadways are clear. Here's the economic traffic report for America:

To the east and up north the state of Massachusetts has petitioned the federal government for a loan. To the west and a bit south is the state of Pennsylvania that has already delayed payments to schools and local governments to service providers, and to their own work force. Out west as we get to the Midwest, we go to Illinois, which had their credit rating severely downgraded today, and they blamed pensions, health care and an inactive legislature. As we move to (he slate of Michigan, a 16% unemployment rate and now they've closed 90% of their libraries. Twenty-six states have canceled earl y childhood education, pre-kindergarten programs; twenty-one states have laid off or furloughed their work force. Nine states have now engaged in early release programs, literally limiting parole, letting people out of jail because they couldn't meet their third quarter payments.

And now we come to the state of Arizona. They have leased or sold off state properties just to meet their third quarter payments. They sold their own capitol; they leased it back to themselves to meet third quarter payments. And now they've sold their legislative office buildings. I'll look into that.

And now we come to the grandaddy of them all: all the way west, the state of California, which has devastated its higher education system and now denied payments to the poorest of those who need Medicaid, they have canceled all after school activities and have gutted completely all of their domestic violence service programs. California's issuing 1.0. U.' s. They have a credit rating of triple b, one level above junk status, and nonetheless, they had to borrow $9 billion at a much higher interest rate to meet their third quarter payments.

And I think the worst example of it all, even further west, the state of Hawaii, who has canceled 20 days of the school year. They are limiting their school calendar starting in January from five days to four.

So I'm not making a prediction when I stand here and tell you what the fate of our economy is. I am telling you su aight out what will happen to New York and New Yorkers, and it's amazing that it didn't happen before, because we arc ground zero of the economic crisis. We were harder hit [than] any other state, but somehow we got back into Albany in August in an election year, and in the summer, and we created a $500 million surplus. We had a cushion when the downturn in Wall Street hit, and that's why, though we're hanging on by a thread, that's why we haven't had to make the disastrous decisions that other states have made and that we will make if we don't act now.

And so on October 15, I offered the legislature a deficit reduction plan. It called for an immediate closing of $3.7 billion of deficit, no one-shots, no gimmicks, across-the-board sharing of this sacrifice. And last week the legislature gave me, after two months of wrangling, their last best offer. They cut $2.7 billion, half a billion dollars short of even what even

they recognized as the budget deficit. By the way, the Comptroller believes that it's $4 billion, so that would bring the legislature $1.5 billion short of his projection.

And the legislature took $400 million of stimulus money for education next year and used it to close the gap this year. Borrowing from Peter to pay Paul. Trying to delay the inevitable. Trying to delay that day of reckoning. But the day of reckoning was here in October when I issued that budget.

And so actions have consequences, choices matter, and people will remember who stood up in this financial period to try to address it and who, rather, buried their heads in the sand.

The legislature made a choice. I think it's the wrong choice. (think it's the irresponsible choice. (think it's a choice that has great consequences. But it is a choice. And it is a choice that's left the state in peril that the Budget Director just described and that the Comptroller has warned, and that Moody's rating service has told us will have a downgraded credit rating and send us billowing down a hill along with the other states, thirty-four of them that have made these mistakes. There are 49 states that have had revenue losses in the first three quarters of this year. Forty-eight of those states are in deficit and 34 of them have gone down that unfortunate path. New York is not one of those states and we can keep it that way.

That's why it's time for me to make a choice. I am directing the Division of the Budget to limit payments so that we will have the cash to pay our debts at the end of December. I will continue to hold payments until the economy is leveled off. I will probably be sued for this, but I will not let New York State run out of money on my watch.

It comes down to this simple proverb that every state, that every government, that every family should know: You can't spend money that you don't have. This excessive spending puts individuals in the position of losing their credit cards, becoming personally bankrupt, losing their cars, and in some cases losing their homes. We're not going to let it happen to our State.

I am going to take, I can and will legally take, the necessary steps to keep New York out of insolvency. Mr. Ravitch, our Lieutenant Governor, worked in the fiscal recovery of the late 1970's. He knows what happens to entities that flirt on the verge of insolvency. It isn't just different numbers on a balance sheet. It's increases in crime and denial of what are basic services.

We're not going to let that happen in New York, and that's why I came to all of you civic leaders to ask you to tell people all around your communities why we're taking these actions. The people should be involved as much in this decision. But there have been many downturns and ebbs and flows in economies in history. This may be one of the worst, but we will recover from it.

We have other industries spouting up a New York State, industries in clean and renewable energy production, industries in medical and scientific research, industries of information technology. And we are going to weave relationships between those upstate innovators and Wall Street capital. We are going to create other industries to replace our financial services and also our manufacturing industries that have been hindered.

But we have to understand that we will need Wall Street, we will need that capital investment to foster that agenda. And this is why New York will come back and the sooner we address this problem, the stronger and faster we will recover from it.

New York is a great State. We have many people who are primed to lead. We know what the obstacles have been. We have faced these obstacles before. We have persevered and we have won.

In the next few months, we're going to have to tighten our belts, we are going to have to fight, we're going to have to suffer, and we're going to have to pay, but we will win. This State will come back to its financial preeminence and leaders

in this country in economic development. We have an opportunity to show the rest of the country what financial leadership is and how to get out of an economic quagmire and with your help and, with the help of all people from New York, a bipartisan help, a help from upstate and downstate, we will persevere.

Thank you for coming this morning and thank you, and God bless the great State of New York. Thank you very much.

6

N YS DOB: Press Release \.

Page 1 of2

NYS Division of Budget

David A. Paterson, Governor Robert L. Megna, Budget Director

STA TE OF NEW YORK DIVISION OF THE BUDGET

DAVID A. PATERSON, GOVERNOR

FOR IMMEDIATE RELEASE:

December 13,2009

CONTACT: Matt Anderson M~tt-,-~!Jde_rso.!l@Q_I,J_Qg_~,~~!~·JlY·_u~ 518.473.3885

GOVERNOR PATERSON OUTLINES PAYMENT REDUCTION PLAN TO KEEP STATE SOLVENT

Action Needed to Address Cash-Flow Problem

Through Use of the Certification Provision, Budget Division to Withhold $750 Million in Scheduled Payments

Governor David A. Paterson today outlined what steps he has directed the Division of the Budget to take in order to keep the New York State solvent. To address a severe cash shortage and help keep the current-year budget in balance, he has ordered $750 million in reductions to scheduled December payments. The following fact sheet outlines the State's current cash position, as well as the specific actions Governor Paterson is ordering the Budget Division to implement through its Certification Provision authority. These measures will ensure the continued operation of New York's government.

December Payment Reductions Fact Sheet

The Division of the Budget's most recent update to the State financial plan forecasted a current-year deficit of $3.2 billion. Additionally, the Office of the State Comptroller has said that this budget gap could be more than $4 billion. However, the Deficit Reduction Plan (DRP) that the Legislature enacted on December 2 - when combined with the administrative cuts Governor Paterson is implementing - included only $2.7 billion in current-year savings actions. Regardless of any budget actions proposed in January, measures must be taken to address the State's severe projected cash-flow crunch during the month of December and the remainder of this fiscal year.

Background: Cash-flow Situation

Even after using $1.2 billion in rainy day reserve funds for cash-flow purposes and delaying a scheduled $1 billion pension fund payment, the Division of the Budget forecasts that, if current expenditures are made on schedule, the State's General Fund will have a negative balance of over $1 billion at the close of December. This would represent the first time in New York's history that the General Fund has ended a month with a negative balance. Indeed, the State's cash position is weaker than at any point in recent history - even after the attacks on September 11.

When the General Fund has a negative balance, it is authorized to temporarily borrow money from other governmental funds (the "Short-term Investment Pool" or STIP) for a period of up to four months or the end of the fiscal year - whichever period is shorter - in order to help meet immediate cash-flow needs. However, the funds available to the State in the STIP for cash-flow purposes are limited. At the close of December, current projections from the Division of the Budget and Office of the State Comptroller indicate that STIP resources may be temporarily exhausted. Moreover, within the month of December itself, there may be periods of time when daily available fund

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N YS DOB: Press Release

Page 2 of2

balances are inadequate to make scheduled payments.

Background: Certification Provision

The 2009-10 Enacted Budget included a blanket "Certification Provision" that governs local assistance appropriations. It states that:

"No moneys appropriated by this [law] shall be available for payment until a certificate of approval has been issued by the director of the budget, who shall file such certificate with the department of audit and control, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee."

In order to preserve the continued financial stability and orderly operation of State government, Governor Paterson has directed the Division of the Budget to exercise its authority to withhold certification of local assistance payments for appropriations subject to the Certification Provision.

Specific December Payment Reductions

The Division of the Budget has identified the largest expenditures that the State is expected to make in December. These include: a $2.3 billion payment to school districts for the STAR program; $1.5 billion in School Aid payments; $450 million in payments to cities through the Aid and Incentives to Municipalities (AIM) program; $398 million in payments to counties for human services reimbursements; and $247 million in payments to health insurers for State employee fringe benefits. Together, they total $4.9 billion.

Municipalities and school districts are expected to receive payments for AIM ($450 million) and School Aid ($1.5 billion) by December 15. The certificates for those payments will each be reduced by 10 percent. These reductions will help the State maintain a positive cash position over the course of the next week.

Additional payments for STAR, human services, and State employee fringe benefits are expected to be made later in the month. The certifications for those expenditures will each be reduced by approximately 19 percent. This higher percentage reflects the significant uncertainties related to cash availability at the end of the month due to risks associated with potential receipts volatility.

In total, these December certification reductions will produce a total of $750 million in cash-flow savings.

Payment

Amount

Reduction

Payee

$436MSchool Districts $146M • School Districts $45M . Cities

$47M . Insurance Carriers $76MCounties

$750M

. STAR Payment l?~hOOI Aid IAIM

$1,460M

iTOTAL

$4,850M

As sufficient revenue becomes available, the State will potentially pay the amounts that were delayed. As a result, these particular December reductions represent cash-management actions, rather than a permanent elimination of liability for these specific payments. Governor Paterson will announce further actions in his Executive Budget to fully eliminate the State's remaining current-year deficit. He also reserves the right to institute further payment delays later over the remaining months of the fiscal year in order to preserve the State's cash position.

###

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c

School Aid Certification Reduction (Dec 15 Payment)

School District Payment Prior to Actual Payment Certification
Certification Reduction Reduction
ADD£SON 1,042,002 937,802 (104,200)
ADIRONDACK 1,048,221 943,399 (104,822)
AFTON 1,210,419 1,089,377 (121,042)
AKRON 840,609 756,548 - (84,061)
ALBANY 7,446,427 6,701,784 (744,643 )
ALB£ON 1,599,017 1,439,116 (159,902)
ALDEN 684,002 615,602 (68,400)
ALEXANDER 721,744 649,569 (72,174)
ALEXANDRIA 347,123 312,411 (34,712)
ALFRED ALMOND 374,402 336,962 (37,440)
ALLEGANY-LIMES 876,375 788,738 (87,638)
AL TMAR PARISH 621,129 559,016 (62,113)
AMAGANSETT 10,643 9,579 - (1,064)
AMHERST 330,922 297,830 (33,092)
AMITYVlLLE 2,430,822 2,187,740 (243,082)
AMSTERDAM 114,380 102,942 (11,438)
ANDES 2,562 2,306 (256)
ANDOVER 304,227 273,804 (30,423)
ARDSLEY 237,414 213,672 (23,741 )
ARGYLE 548,225 493,403 (54,823)
ARKPORT 330,089 297,080 (33,009)
ARUNGTON 2,739,358 2,465,423 (273,936)
ATIlCA 1,252,643 1,127,379 (125,264)
AUBURN 1,880,327 1,692,295 (188,033)
AUSABLE V ALLEY 1,085,270 976,743 (108,527)
AVERILL PARK 82,356 74,121 (8,236)
AVOCA 668,915 602,024 (66,892)
AVON 279,902 251,912 (27,990)
BABYLON 418,870 376,983 (41,887)
BAlNBRIDGE GUI 582,404 524,163 - (58,240)
BALDWlN 1,014,682 913,213 (10 I ,468)
BALDWlNSVlLLE 1,608,144 1,447,330 (160,814)
BALLSTON SPA 1,205,597 1,085,037 (120,560)
BARKER 715,638 644,074 (71,564)
BATAVIA 1,630,248 1,467,224 (163,025)
BATH 1,359,140 1,223,226 (135,914)
BAY SHORE 631,470 568,323 (63,147)
BA ¥PORT BLUE P 963,130 866,817 (96,313)
BEACON 2,454,592 2,209,133 - (245,459)
BEA VER RIVER 547,443 492,699 (54,744)
BEDFORD 402,963 362,666 (40,296)
BEEKMANTOWN 1,084,067 975,660 _(108,407)
BELFAST 407,880 367,092 (40,788)
BELLEVlLLE-HEN 233,636 210,272 (23,364 )
BELLMORE 193,232 173,909 (19,323)
BELLMORE-MERRI 698,319 628,487 (69,832) BEMUS POINT 206,847 186,162 (20,685)
BERUN 754,117 678,705 (75,412)
BERNE KNOX 578,3 16 520,484 (57,832)
BETHLEHEM 1,046,763 942,087 (104,676)
BETHPAGE 532,438 479,194 (53,244)
BINGHAMTON 2,478,947 2,231,052 (247,895)
BLIND BROOK-RY 137,656 123,891 (13,766)
BOLl V AR-RlCHBG 875,847 788,262 (87,585)
BOLTON 36,678 33,010 (3,668)
BRADFORD 325,475 292,927 (32,547)
BRASHER FALLS 942,887 848,598 (94,289)
BRENTWOOD 15,848,328 14,263,495 (1,584,833)
BREWSTER 1,051,022 945,920 - (105,102)
BRIARCLIFF MAN 166,226 149,603 (16,623)
BRIDGEHAMPTON 44,319 39,887 (4,432)
BRIGHTON 592,504 533,254 (59,250)
BROADALBIN-PER 1,107,788 997,009 (UO,779)
BROCKPORT 2,322,522 2,090,270 (232,252)
BROCTON 735,749 662,174 (73,575)
BRONXVILLE 130,433 117,390 (13,043)
BROOKFIELD 12,465 11,219 (1,247)
BRUNSWICK CENT 359,368 323,431 - (35,937)
BRUSHTON MOIRA 838,373 754,536 (83,837)
BUFFALO 50,694,025 45,624,622 (5,069,402)
BURNT HILLS 902,696 812,426 (90,270)
BYRAM HILLS 197,396 177,657 (19,740)
BYRON BERGEN 623,783 561,405 (62,378)
CAIRO-DURHAM 977,393 879,654 (97,739)
CALEDONlA MUMF 478,722 430,850 (47,872)
CAMBRIDGE 715,339 643,805 (71,5341
CAMDEN 2,141,383 1,927,245 . (214,138)
CAMPBELL-SA VON 955,774 860,196 (95,577)
CANAJOHARIE 313,420 282,078 (31,342)
CANANDAIGUA 1,059,991 953,991 (105,999)
CANASERAGA 361,737 325,563 (36,174)
CANASTOTA 587,415 528,674 (58,742)
CANDOR 714,028 642,625 (71,403)
CA NlS TEO-GREEN 1,939,820 1,745,838 ( 193,982)
CANTON 1,188,795 1,069,916 (118,880)
CARLE PLACE 207,160 186,444 (20,716)
CARMEL 1,836,377 1,652,740 (183,638)
CARTHAGE 2,471,420 2,224,278 (247,142)
CASSADAGA V ALL 1,013,557 912,201 (LO 1,356)
CA TO MERIDIAN 1,236,491 1,112,842 ( 123,649)
CATSKILL 843,276 758,948 (84,328)
CA TT ARAUGUS-U 897,011 807,310 (89,70 I)
CAZENOVIA 362,893 326,603 (36,289)
CENTER MORICHE 917,580 825,822 . (91,758)
CENTRAL ISUP 12,155,259 10,939,733 (1,215,526)
CENTRAL SQUARE 2,561,026 2,304,923 (256,103)
CHAPPAQUA 430,572 387,514 (43,057)
CHARLOTTE V ALL 364,981 328,483 (36,498)
CHATEAUGAY 461,567 415,411 (46,157) CHATHAM 394,343 354,908 (39,434)
CHAUTAUQUA 428,270 385,443 (42,827)
CHAZY 237,527 213,775 (23,753)
CHEEKTOW AGA 550,734 495,661 (55,073 )
CHENANGO FORKS 1,356,530 1,220,877 (LJ5,653 )
CHENANGO VALLE 681,171 613,054 (68,117)
CHERRY VLY-SPR 23,758 21,382 (2,376)
CHESTER 213,040 191,736 (21,304)
CHITTENANGO 1,091,671 982,504 (109,167)
CHURCHVILLE CH 1,501,450 1,351,305 (150,145)
C[NCfNNATUS 34,229 30,806 (3,423 )
CLARENCE 928,338 835,504 (92,834)
CLARKSTOWN 1,272,408 1,145,168 (127,241 )
CLEVELAND HILL 643,630 579,267 (64,363 )
CUFTONFINE 265,004 238,503 · (26,500)
CLINTON 30,572 27,514 (3,057)
CL YDE-SA V ANNAH 845,423 760,881 (84,542)
CLYMER 324,571 292,113 (32,457)
COBLESKL-RlCHM 2,069,032 1,862,129 (206,903)
COHOES 1,557,813 1,402,031 (155,781)
COLD SPRING HA 149,434 134,491 (14,943)
COL TON PIERREP 162,794 146,515 (16,279)
COMMACK 2,027,829 1,825,046 (202,783)
COMSEWOGUE 2,110,082 1,899,074 · (211,008)
CONNETQUOT 151,750 136,575 (15,175)
COOPERSTOWN 310,544 279,489 (31,054)
COPAKE-TACONIC 756,919 681,227 (75,692)
COPENHAGEN 401,656 361,490 (40,166)
COPIAGUE 4,059,861 3,653,875 (405,986)
CORINTH 775,363 697,827 (77,536)
CORNING 1,471,397 1,324,257 (147,140)
CORNWALL 748,454 673,609 (74,845)
CORTLAND 1,221,689 1,099,520 (122,169)
COXSACKIE A THE 273,180 245,862 (27,3 18)
CROTON HARMON 196,505 176,855 (19,651)
CROWNPOfNT 368,835 331,952 (36,884)
CUBA-RUSHFORD 827,837 745,053 (82,784 )
DAL TON-NUNDA 1,029,749 926,774 (102,975)
DANSVILLE 1,992,583 1,793,325 (199,258)
DERUYTER 19,428 17,485 (1,943)
DEER PARK 1,943,954 1,749,559 · (194,395)
DELHI 618,718 556,846 (61,872)
DEPEW 1,164,096 1,047,686 (116,410)
DEPOSIT 430,251 387,226 (43,025)
DOBBS FERRY 165,897 149,307 (16,590)
DOLGEVILLE 861,214 775,092 (86,121 )
DOVER 763,635 687,272 (76,364 )
DOWNSVILLE 243,998 219,599 (24,400)
DRYDEN 1,166,934 1,050,240 (116,693)
DUANESBURG 317,641 285,876 · 01,764)
DUNDEE 605,642 545,077 (60,564 )
DUNKIRK 1,489,091 1,340,182 (148,909)
E SYRACUSE-MIN 1,308,769 1,177,892 ( 130,877) E. LRONDEQUO[T 70,059 63,053 (7,006)
EAST AURORA 206,063 185,457 (20,606)
EAST BLOOMFlEL 482,065 433,858 (48,206)
EAST GREENBUSH 1,319,398 1,187,459 (131,940)
EAST HAMPTON 3,760 3,384 (376)
EAST [SUP 2,435,212 2,191,691 (243,521 )
EAST MEADOW 1,417,253 1,275,527 (141,725)
EAST MORICHES 334,740 301,266 · (33,474)
EAST QUOGUE 115,615 104,053 (1l,561)
EAST RAMAPO 2,804,359 2,523,923 (280,436)
EAST ROCHESTER 29,988 26,989 (2,999)
EAST ROCKA WAY \9,837 17,853 (1,984)
EAST W[LLISTON 176,097 158,487 (17,610)
EASTCHESTER 175,126 157,614 (17,513)
EASTPORT-SOUTH 2,172,696 1,955,426 (217,270)
EDEN 271,302 244,172 (27,130)
EDGEMONT 207,251 \86,526 · (20,725)
EDINBURG 57,257 51,531 (5,726)
EDMESTON 496,313 446,682 (49,63\)
EDWARDS-KNOX 685,189 616,670 (68,519)
ELBA 418,790 376,911 (41,879)
ELDRED 297,616 267,855 (29,762)
EUZABETHTOWN 342,584 308,325 (34,258)
ELLENV[LLE 1,270,086 1,143,077 (127,009)
ELUCOTTVILLE 190,315 171,284 (19,032)
ELMlRA 5,038,143 4,534,329 (503,814)
ELMlRA HEIGHTS 645,545 580,990 (64,554)
ELMONT 873,424 786,081 (87,342)
ELMSFORD 90,164 81,148 (9,016)
ELWOOD 687,136 618,422 (68,714)
EV ANS-BRANT 2,282,010 2,053,809 (228,201)
FABlUS-POMPEY 514,723 463,250 (51,472)
FAIRPORT 1,679,642 1,511 ,678 (167,964)
FALCONER 779,888 701,899 · (77,989)
FALLSBURGH 1,075,528 967,975 (107,553 )
FARMINGDALE 2,346,618 2,111,956 (234,662)
FA YETTEV[LLE 632,931 569,638 (63,293 )
HLLMORE 519,443 467,499 (51,944)
FLRE [SLAND 8,706 7,836 (871)
HSHERS [SLAND 7,968 7,172 (797)
FLORAL PARK 7,411 6,670 (741)
FLORIDA 249,325 224,393 (24,933 )
FONDA FUL TONV[ 145,654 131,089 · (14,565)
FORESTV[LLE 358,917 323,026 (35,892)
FORT ANN 428,654 385,789 (42,865)
FORT EDWARD 523,121 470,809 (52,312)
FORT PLAIN 923,074 830,767 (92,307)
FRANKFORT-SCHU 311,131 280,018 (31,1l3)
FRANKLrN 200,553 180,497 (20,055)
FRANKLrN SQUAR 473,278 425,950 (47,328)
FRANKLrNV[LLE 1,237,837 1,114,053 (123,784 )
FREDONIA 47,789 43,010 · __ .,,_~..c.
(4,7791
FREEPORT 4,087,341 3,678,606 (408,734) FREWSBURG 36,289 32,660 - (3,629)
FRIENDSHIP 408,892 368,003 (40,889)
FRONTlER 1,408,601 1,267,741 (140,860)
FULTON 117,961 106,165 (11,796)
GALWAY 299,337 269,404 (29,934 )
GANANDA 465,927 419,334 (46,593)
GARDENCfTY 470,023 423,021 (47,002)
GARRISON 36,874 33,187 (3,687)
GATES CHIll 1,892,936 1,703,643 (189,294)
GENERAL BROWN 620,428 558,385 (62,043 )
GENESEE V ALLEY 36,105 32,495 (3,611)
GENESEO 435,439 391,895 (43,544)
GENEVA 2,178,782 1,960,904 (217,878)
GERMANTOWN 383,248 344,923 (38,325)
GlLBOA CONESVr 265,637 239,073 (26,564)
GLBTSVLLE-MT U 19,109 17,198 (1,911)
GLEN COVE 306,448 275,803 (30,645)
GLENS FALLS 829,703 746,733 - (82,970)
GLENS FALLS CO 66,843 60,159 (6,684)
GLOVERSVILLE 3,073,504 2,766,154 (307,350)
GORHAM-MIDDLES 1,064,886 958,398 (106,489)
GOSHEN 627,576 564,818 (62,758)
GOUVERNEUR [,743,122 1,568,810 (174,312)
GOWANDA 1,110,333 999,299 (111,033)
GRAND [SLAND 738,622 664,760 (73,862)
GRANV[LLE 1,165,046 1,048,542 ( 116,505)
GREAT NECK 517,901 466,111 - (51,790)
GREECE 2,893,778 2,604,400 (289,378)
GREEN ISLAND 30,085 27,076 (3,008)
GREENBURGH 281,089 252,981 (28,109)
GREENE 995,660 896,094 (99,566)
GREENPORT 116,901 105,211 (11,690)
GREENV[LLE 778,340 700,506 (77,834)
GREENW[CH 552,412 497,170 (55,241 )
GREENWOOD LAKE 885,936 797,343 (88,594)
GRGETWN-SO OTS 599,417 539,475 - (59,942)
GROTON 856,333 770,700 (85,633)
GUILDERLAND 1,083,542 975,187 ( 108,354)
HADLEY LUZERNE 27,116 24,404 (2,712)
HALDANE 128,464 115,618 (12,846)
HALF HOLLOW HI 1,581,30 I 1,423,171 (158,130)
HAMBURG 982,349 884,114 (98,235)
HAMILTON 232,275 209,048 (23,228)
HAMMOND 325,444 292,900 (32,544)
HAMMONDSPORT 251,164 226,048 (25,116)
HAMPTON BA YS 607,559 546,803 (60,756)
HANCOCK 394,035 354,631 (39,403)
HANNIBAL 1,382,900 1,244,610 (138,290)
HARBORFlELDS 693,381 624,042 (69,338)
HARPURS V[LLE 746,920 672,228 (74,692)
HARRlSON 325,897 293,308 (32,590)
HARRlSVlLLE 312,082 280,874 012082
HARTFORD 512,379 461,141 - (51,238) HASTrNGS ON HU 178,068 160,261 ( 17,807)
HAUPPAUGE 1,529,224 1,376,301 (152,922)
HA VERSTRA W -ST 4,049,915 3,644,924 . (404,992)
HEMPSTEAD 6,039,348 5,435,413 (603,935)
HENDRICK HUDSO 422,801 380,521 (42,280)
HERKIMER 700,928 630,835 (70,093)
HERMON DEKALB 406,184 365,565 (40,618)
HERRICKS 596,513 536,862 (59,651 )
HEUVELTON 516,034 464,430 (51,603)
HEWLETT WOODME 15,889 14,300 (1,589)
H[CKSVILLE 913,175 821,858 - (91,317)
HIGHLAND 644,515 580,064 (64,452)
HIGHLAND FALLS 439,515 395,563 (43,951)
HILTON 1,113,762 1,002,386 (11l,376)
HINSDALE 395,527 355,974 (39,553 )
HOLLAND 585,550 526,995 (58,555)
HOLLAND PATENT 1,091,512 982,361 (109,151 )
HOLLEY 913,371 822,034 (91,337)
HOMER 1,454,982 1,309,484 (145,498)
HONEOYE 515,964 464,367 - (51,596)
HONEOYE FALLS 499,608 449,647 (49,961)
HOOSIC V ALLEY 815,139 733,625 (81,514)
HOOSICK FALLS 835,426 751,884 (83,543)
HORNELL 1,485,366 1,336,829 ( 148,537)
HORSEHEADS 991,914 892,722 (99,191 )
HUDSON 695,808 626,227 (69,581)
HUDSON FALLS 1,746,977 1,572,279 (174,698)
HUNTER TANNERS 235,427 211,885 (23,543)
HUNTrNGTON 762,901 686,610 - (76,290)
HYDE PARK 1,405,270 1,264,743 (140,527)
[LION 1,350,675 1,215,608 (135,068)
lND[AN LAKE 2,706 2,435 (271)
lNDIAN RlVER 4,094,191 3,684,772 ( 409,419)
[ROQUOlS 531,539 478,385 (53,154)
[RVrNGTON 170,713 153,642 (17,071)
[SLAND PARK 65,1l8 58,606 (6,512)
[SLAND TREES 623,919 561,527 (62,392)
[SUP 931,771 838,594 (93,177)
[THACA 1,184,678 1,066,210 ( 118,468)
JAMESTOWN 4,281,577 3,853,419 (428,158)
JAMESVILLE-DEW 464,517 418,065 (46,452)
JASPER- TRPSBRG 455,586 410,028 (45,559)
JEFFERSON 222,159 199,943 (22,216)
JERlCHO 361,371 325,234 (36,137)
JOHNSBURG 229,088 206,179 (22,909)
JOHNSON C[TY 1,298,163 I, 168,347 - ( 129,816)
JOHNSTOWN 706,298 635,668 (70,630)
JORDAN ELBRlDG 828,320 745,488 (82,832)
KATONAH LEW[SB 516,905 465,214 (51,690)
KEENE 43,301 38,971 (4,330)
KENDALL 720,278 648,250 (72,028)
KENMORE 3,100,453 2,790,408 (310,045)
KINDERHOOK 623,522 561,170 (62,352) K[NGS PARK [,049,764 944,788 (104,976)
K[NGSTON 3,733,908 3,360,5 [7 (373,391)
KIRYAS JOEL 6,562 5,906 (656)
LA FARGEVlLLE 317,303 285,573 - (31,730)
LA FAYETTE 652,731 587,458 (65,273)
LACKAWANNA 615,772 554,195 (61,577)
LAKE GEORGE 165,089 148,580 (16,509)
LAKE PLACID 157,883 142,094 (15,788)
LAKE PLEASANT 31,033 27,929 (3,103 )
LAKELAND 2,670,305 2,403,274 (267,030)
LANCASTER 1,138,553 1,024,698 (1l3,855)
LANSING 244,003 219,603 (24,400)
LANSINGBURGH 1,720,302 1,548,272 - (172,030)
LAURENS 480,355 432,319 (48,035)
LAWRENCE 19,487 17,538 (1,949)
LEROY 527,546 474,791 (52,755)
LETCHWORTH 922,138 829,925 (92,214)
LEVITTOWN 3,307,701 2,976,931 (330,770)
LEWISTON PORTE 752,515 677,264 (75,252)
UBERTY 1,471,619 1,324,457 (147,162)
LlNDENHURST 3,558,359 3,202,523 (355,836)
USBON 489,963 440,967 (48,996)
LITTLE FALLS 790,858 711,773 (79,086)
LIVERPOOL 2,820,791 2,538,712 (282,079)
LIVINGSTON MAN 422,846 380,561 (42,285)
UVONlA 651,760 586,584 (65,176)
LOCKPORT 1,740,392 1,566,353 (174,039)
LOCUST V ALLEY 256,933 231,239 (25,693)
LONG BEACH 1,748,484 1,573,635 (174,848)
LONGLAKE 17,936 16,142 - (1,794)
LONGWOOD 6,669,570 6,002,613 (666,957)
LOWVILLE 1,016,1l8 914,506 (101,612)
LYME 179,637 161,674 (17,964)
LYNBROOK 307,885 277,097 (30,789)
LYNCOURT 144,368 129,931 (14,437)
L YNDONVlLLE 531,538 478,384 (53,154)
LYONS 906,107 815,496 (90,611 )
MADISON 389,246 350,321 (38,925)
MADRID WADDING 583,203 524,883 - (58,320)
MAHOPAC 2,175,932 1,958,339 (217,593)
MAINE ENDWELL 825,875 743,287 (82,587)
MALONE 2,128,295 1,915,466 (212,830)
MALVERNE 422,177 379,959 "'----"0
(42,218)
MAMARONECK 503,105 452,794 (50,311)
MANCHSTR-SHRTS 354,145 318,730 (35,414)
MANHASSET 362,104 325,893 (36,210)
MARATHON 692,969 623,672 (69,297)
MARCELLUS 374,030 336,627 - (37,403)
MARGARETVlLLE 11,803 10,622 (1,180)
MARION 926,617 833,955 (92,662)
MARLBORO 664,419 597,977 (66,442)
MARYVALE 568,623 511,761 ----'-
(56,862)
MASSAPEQUA 662,156 595,940 (66,216) MASSENA 1,720,236 1,548,212 (172,024)
MA TTlTUCK-CUTC 189,111 170,200 (18,911)
MAYHELD 33,816 30,434 (3,382)
MCGRAW 465,296 418,767 (46,530)
MECHANlCV[LLE 407,675 366,907 (40,768)
MEDlNA 2,066,835 1,860,151 (206,683)
MENANDS 32,948 29,653 (3,295)
MERRICK 143,731 129,358 (14,373)
MEXICO 1,818,586 1,636,728 (181,859)
MIDDLE COUNTRY 6,336,274 5,702,647 (633,627)
MIDDLEBURGH 37,492 33,743 (3,749)
MIDDLETOWN 5,299,516 4,769,564 (529,952)
lvtILFORD 347,321 312,589 (34,732)
lvtILLBROOK 162,188 145,969 - (16,219)
lvtILLER PLACE 1,322,279 1,190,051 ( 132,228)
MINEOLA 272,975 245,677 (27,297)
MlNERVA 67,146 60,431 (6,715)
MlNISINK VALLE 2,856,776 2,571,099 (285,678)
MOHAWK 711,764 640,588 (71,176)
MOHONASEN 597,760 537,984 (59,776)
MONROE WOODBUR 2,453,651 2,208,286 (245,365)
MONTAUK 48,003 43,202 (4,800)
MONTlCELLO 2,274,125 2,046,713 - (227,413)
MORAV[A 233,191 209,872 (23,319)
MORlAH 768,775 691,897 (76,877)
MORRIS 439,179 395,261 (43,918)
MORRlSTOWN 312,083 280,875 (31,208)
MORRlSV[LLE EA 616,814 555,133 (61,681)
MOUNT MORRlS 385,667 347,100 (38,567)
MOUNTSlNA[ 898,420 808,578 (89,842)
MOUNT VERNON 5,440,797 4,896,718 (544,080)
MT MARKHAM CSD 446,958 402,262 (44,696)
MT PLEAS CENT 520,607 468,546 (52,061 )
N. ROSE-WOLCOT 1,749,494 1,574,545 (174,949)
N. TONAWANDA 1,543,210 1,388,889 (154,321)
NANUET 245,5\2 220,960 (24,551 )
NAPLES 430,007 387,007 (43,001)
NEW HARTFORD 447,548 402,794 (44,755)
NEW HYDE PARK 297,188 267,469 (29,719)
NEW LEBANON 250,343 225,308 - (25,034)
NEW PALTZ 971,167 874,050 (97,117)
NEW ROCHELLE 1,562,356 1,406,121 (156,236)
NEW YORK C[TY 688,910,364 620,019,327 (68,891,036)
NEW YORK MILLS 210,622 189,560 (21,062)
NEWARK 2,045,489 1,840,940 (204,549)
NEW ARK V ALLEY 961,391 865,252 (96,139)
NEWBURGH 9,265,693 8,339,124 (926,569)
NEWCOMB 1,617 1,456 (162)
NEWFANE 1,365,919 1,229,327 - ( 136,592)
NEWHELD 727,947 655,152 (72,795)
NIAGARA FALLS 2,742,979 2,468,681 (274,298)
N[AGARA WHEA TF 1,294,357 1,164,922 (129,436)
N[SKAYUNA 684,339 615,905 (68,434) NORTH BABYLON 3,242,403 2,918,163 (324,240)
NORTH BELLMORE 699,706 629,736 (69,971 )
NORTH COLLlNS 481,367 433,230 (48,137)
NORTH COLONIE 617,118 555,406 (61,712)
NORTH MERRICK 22,852 20,567 (2,285)
NORTH SALEM 146,395 131,755 (14,639)
NORTH SHORE 330,497 297,448 - (33,050)
NORTH SYRACUSE 1,802,424 1,622,182 (180,242)
NORTH WARREN 122,810 110,529 (12,281)
NORTHEAST 20,428 18,385 (2,043)
NORTHEASTERN 77,701 69,931 (7,770)
NORTHPORT 912,388 821,150 (91,239)
NORTHRN ADlRON 577,450 519,705 (57,745)
NORTHVILLE 231,420 208,278 (23,142)
NORWICH 1,570,525 1,413,473 (157,053)
NORWOOD NORFOL 961,769 865,592 (96,177)
NYACK 363,146 326,831 (36,315)
OAKFIELD ALABA 792,138 712,924 (79,214)
OCEANSIDE 1,141,539 1,027,386 (114,154)
ODESSA MONTOUR 552,701 497,431 (55,270)
OGDENSBURG 1,488,787 1,339,909 (148,879)
OLEAN 1,060,303 954,273 (106,030)
ONEIDA CITY 1,218,380 1,096,542 (121,838)
ONEONTA 790,813 711,732 - (79,081)
ONONDAGA 324,429 291,986 (32,443)
ONTEORA 612,177 550,959 (61,218)
OPPENHEIM EPHR 427,937 385,143 (42,794)
ORCHARD PARK 1,176,481 1,058,833 (117,648)
ORISKANY 341,734 307,560 (34,173)
OSS£NING 519,927 467,935 (51,993)
OSWEGO 755,104 679,593 (75,510)
OTEGO-UNADILLA 792,903 713,612 (79,290)
OWEGO-AP ALACHI 882,338 794,104 - (88,234)
OXFORD 450,314 405,283 (45,031)
OYSTER BAY 141,606 127,445 ([4,161)
OYSTERPONDS 37,116 33,404 (3,712)
PALMYRA-MACEDO 52,687 47,418 (5,269)
PANAMA 29,171 26,254 (2,917)
PARISHVILLE 398,638 358,774 (39,864)
PATCHOGUE-MEDF' 5,416,650 4,874,985 (541,665)
PAVILION 1,026,984 924,286 (102,698)
PAWLING 426,224 383,602 - (42,622)
PEARL RIVER 379,414 341,473 (37,941)
PEEKSKILL 2,447,243 2,202,519 (244,724)
PELHAM 260,765 234,689 (26,077)
PEMBROKE 493,378 444,041 (49,338)
PENFIELD 826,281 743,653 (82,628)
PENN YAN 1,106,179 995,561 (110,618)
PERRY 724,612 652,151 (72,461 )
PERU 1,806,514 1,625,862 (180,651)
PHELPS-CLIfTON 1,562,834 1,406,551 ( 156,283)
PHOENIX 1,906,005 1,715,404 (190,600)
PINE BUSH 3,299,953 2,969,958 (329,995) P[NE PLAINS 461,118 415,006 (46,112)
PINE VALLEY 731,673 658,506 (73,167)
P[TTSFORD 608,232 547,409 (60,823)
PLA[NEDGE 1,091,300 982,170 (109,130)
PLAlNVIEW 823,138 740,824 (82,314)
PLATTSBURGH 974,088 876,679 (97,409)
PLEASANTVlLLE 256,736 231,063 (25,674)
POCANTICO HILL 76,304 68,673 (7,630)
POLAND 20,829 [8,746 (2,083)
PORT BYRON 950,275 855,248 (95,028)
PORT CHESTER 936,682 843,014 (93,668)
PORT JEFFERSON 140,215 126,193 (14,021)
PORT JERVIS 2,596,848 2,337,163 (259,685)
PORT WASHINGTO 478,496 430,646 (47,850)
PORTV[LLE 567,528 510,775 (56,753)
POTSDAM 1,095,372 985,835 (109,537)
POUGHKEEPSIE 6,997,288 6,297,559 - (699,729)
PRATTS BURG 380,737 342,663 (38,074 )
PULASKI 1,155,577 1,040,019 (115,558)
PUTNAM 14,242 12,818 (1,424)
PUTNAM V ALLEY 508,281 457,453 (50,828)
QUEENSBURY 839,289 755,360 (83,929)
QUOGUE 16,005 14,405 (1,601)
RAMAPO 841,535 757,382 (84,154)
RANDOLPH 777,406 699,665 (77,741 )
RA VENA COEYMAN 908,203 817,383 - (90,820)
RED CREEK 1,070,368 963,331 (107,037)
RED HOOK 1,160,449 1,044,404 (116,045)
REMSEN 432,619 389,357 (43,262)
REMSENBURG 33,716 30,345 (3,372)
RENSSELAER 904,910 814,419 (90,491)
RHINEBECK 371,130 334,017 (37,1l3)
RICHHELD SPRI 453,151 407,836 (45,315)
RIPLEY 345,394 310,854 (34,539)
RIVERHEAD 1,197,863 1,078,077 - (119,786)
ROCHESTER 38,674,200 34,806,780 (3,867,420)
ROCKVILLE CENT 20,722 18,650 (2,072)
ROCKY POINT 1,907,757 1,716,981 (190,776)
ROME 4,529,235 4,076,312 (452,924)
ROMULUS 347,456 312,710 (34,746)
RONDOUT V ALLEY 1,467,086 1,320,378 (146,709)
ROOSEVELT 6,269,559 5,642,603 (626,956)
ROSCOE 165,455 148,910 ( 16,546)
ROSLYN 259,221 233,299 (25,922)
ROXBURY 229,364 206,427 (22,936)
ROYAL TON HARTL 723,832 651,449 (72,383)
RUSH HENRIETTA 1,457,283 U ll,555 (145,728)
RYE 134,446 121,002 (13,445)
RYE NECK 99,916 89,925 (9,992)
S. GLENS FALLS 1,343,461 1,209,115 ( 134,346)
S. HUNTINGTON 1,571,878 1,414,690 (157,188)
S. JEFFERSON 72,978 65,681 . (7,298)
S. KORTRIGHT 280,188 252,169 (28,019) S. ORANGETOWN 478,878 430,990 (47,888)
SACHEM 398,687 358,818 (39,869)
SACKETS HARBOR 252,955 227,659 (25,295)
SAG HARBOR 178,636 160,773 (17,864)
SALAMANCA 1,356,240 1,220,616 (135,624)
SALEM 398,957 359,062 (39,896)
SALMON RIVER 1,848,214 1,663,392 (184,821)
SANDY CREEK 1,094,485 985,037 (109,449)
SARANAC 1,407,108 1,266,397 (140,711)
SARAN AC LAKE 550,395 495,355 · (55,039)
SARA TOGA SPRIN 1,557,626 1,401,864 (155,763)
SAUGERTIES 1,243,850 1,119,465 (124,385)
SAUQUOlT VALLE 763,326 686,994 (76,333)
SAYVILLE 1,480,382 1,332,344 (148,038)
SCARSDALE 313,303 281,972 (31,330)
SCHALMONT 753,924 678,532 (75,392)
SCHENECT ADY 290,316 261,285 (29,032)
SCHENEVUS 327,554 294,799 (32,755)
SCHODACK 383,562 345,206 · (38,356)
SCHOHARIE 823,756 741,381 (82,376)
SCHROON LAKE 52,417 47,175 (5,242)
SCHUYLER VILLE 665,961 599,365 (66,596)
SCIO 715,745 644,170 (7[,574)
SCOTIA GLENVIL 950,637 855,573 (95,064)
SEAFORD 447,857 403,071 (44,786)
SENECA FALLS 645,116 580,605 (64,512)
SEWANHAKA 1,626,946 1,464,252 (162,695)
SHARON SPRINGS 355,995 320,395 · (35,599)
SHELTER ISLAND 27,688 24,919 (2,769)
SHENENDEHOWA 1,821,967 1,639,770 ([82,197)
SHERBURNE EARL 66,067 59,460 (6,607)
SHERMAN 412,482 371,234 (41,248)
SHERRILL 1,019,018 917,116 (101,902)
SHOREHAM- W AD IN 623,758 561,382 (62,376)
S[DNEY 1,140,533 1,026,479 (114,053)
S[L VER CREEK 1,068,881 961,993 (106,888)
SKANEA TELES 296,436 266,792 (29,644)
SLOAN 860,936 774,843 (86,094)
SMITHTOWN 148,655 133,789 (14,865)
SODUS 1,059,519 953,567 (105,952)
SOLVAY 723,854 651,469 (72,385)
SOMERS 479,861 431,875 (47,986)
SOUTH COLONIE 880,581 792,523 (88,058)
SOUTH COUNTRY 3,312,482 2,981,234 (331,248)
SOUTH LEWIS 964,089 867,680 · (96,409)
SOUTH SENECA 881,170 793,053 (88,117)
SOUTHAMPTON 168,792 151,913 (16,879)
SOUTHERN CA YUG 560,224 504,202 (56,022)
SOUTHOLD 186,583 167,925 (18,658)
SOUTHWESTERN 534,388 480,949 (53,439)
SPACKENKILL 20,800 18,720 (2,080)
SPENCER V AN ET 855,960 770,364 (85,596)
SPENCERPORT 1,186,339 1,067,705 <:-'-
(118,634) SPRfNGS 100,855 90,769 ( 10,085)
SPRfNGVILLE-GR 735,264 661,738 (73,526)
ST JOHNSVILLE 464,848 418,363 · (46,485)
ST REGIS FALLS 353,279 317,951 (35,328)
STAMFORD 358,988 323,089 (35,899)
STARPOINT 747,791 673,012 (74,779)
STILLWATER 34,061 30,655 (3,406)
STOCKBRIDGE V A 448,325 403,493 (44,833)
SULLIVAN WEST 1,326,545 1,193,890 (132,654)
SUSQUEHANNA V A 764,760 688,284 (76,4 76)
SWEET HOME 82,132 73,919 (8,213)
SYOSSET 745,071 670,564 · (74,507)
SYRACUSE 20,230,775 18,207,697 (2,023,077)
TARRYTOWN 405,866 365,279 (40,587)
THOUSAND ISLAN 241,803 217,622 (24,180)
TIIREE VILLAGE 1,814,948 1,633,453 (181,495)
TICONDEROGA 23,358 21,022 (2,336)
TIOGA 826,591 743,932 (82,659)
TONAWANDA 862,712 776,441 (86,271 )
TOWN OF WEBB 3,226 2,903 (323)
TRI VALLEY 609,940 548,946 (60,994)
TROY 3,624,016 3,261,614 (362,402)
TRUMANSBURG 746,121 671,509 (74,612)
TUCKAHOE 110,273 99,245 (11,027)
TUCKAHOE COMMO 68,260 61,434 (6,826)
TULLY 282,494 254,244 (28,249)
TUPPER LAKE 613,546 552,191 (61,355)
TUXEDO 62,134 55,920 (6,213)
UNADILLA 1,794,465 1,615,018 · ( 179,446)
UNION SPRINGS 754,304 678,874 (75,430)
UNIONDALE 1,205,548 1,084,993 (l20,555)
UNION-ENDICOTT 1,373,188 1,235,869 (137,319)
UTICA 7,154,660 6,439,194 (715,466)
V STR THlRTEEN 365,642 329,078 (36,564)
V STR TWENTY-F 16,676 15,009 (1,668)
VALHALLA 273,439 246,095 (27,344)
V ALLEY STR CHS 1,036,318 932,686 (103,632)
V ALLEY STR UF 276,669 249,002 · (27,667)
V ALLEY-MONTGMR 1,708,577 1,537,719 (170,858)
VAN HORNS VILLE 228,332 205,499 (22,833)
VESTAL 950,165 855,149 (95,017)
VICTOR 572,765 515,489 (57,277)
VOORHEESVILLE 224,340 201,906 (22,434 )
W. IRONDEQUOIT 1,008,713 907,841 (100,871)
WALLKILL 1,552,850 1,397,565 ( 155,285)
WALTON 921,954 829,759 (92,195)
WANTAGH 783,952 705,557 - (78,395)
WAPPINGERS 147,056 132,351 (14,706)
WARRENSBURG 881,489 793,340 (88,149)
WARSAW 824,863 742,377 (82,486 )
WARWICK V ALLEY 1,009,403 908,462 (100,940)
W ASHINGTONVILL 1,261,330 1,135,197 (126,133).
WATERFORD 381,262 343,136 (38,126) WATERLOO CENT 1,589,268 1,430,341 (158,927)
WATERTOWN 2,516,936 2,265,242 (251,694)
WATERVlLLE 702,654 632,389 (70,265)
WATERVLIET 1,267,200 1,140,480 (126,720)
WATKINS GLEN 965,873 869,286 - (96,587)
WAVERLY 873,473 786,126 (87,347)
W A YLAND-COHOCT 1,563,206 1,406,885 (156,321)
WAYNE 605,516 544,965 (60,552)
WEBSTER 1,870,448 1,683,403 (187,045)
WEEDSPORT 554,617 499,156 (55,462)
WELLS 142,260 128,034 (14,226)
WELLSVILLE 930,246 837,221 (93,025)
WEST BABYLON 2,033,156 1,829,841 (203,316)
WEST CANADA V A 557,131 501,418 (55,713)
WEST GENESEE 1,115,098 1,003,588 (1l1,5lO)
WEST HEMPSTEAD 410,222 369,199 (41,022)
WEST [SUP 110,406 99,366 (I [,041)
WEST SENECA 2,212,893 1,991,604 (221,289)
WEST VALLEY 315,017 283,515 (31,502)
WESTBURY 109,300 98,370 (10,930)
WESTFlELD 31,617 28,455 (3,162)
WESTHAMPTON BE 104,141 93,727 - (10,414)
WESTHILL 475,505 427,955 (47,551)
WESTMORELAND 34,603 31,143 (3,460)
WESTPORT 138,704 124,834 (13,870)
WHEA TLAND carr. 421,346 379,211 (42,135)
WHEELER VILLE 75,019 67,517 (7,502)
WHITE PLAINS 757,878 682,090 (75,788)
WHITEHALL 666,705 600,034 (66,670)
WHITESBORO 945,715 851,144 (94,572)
WHITESVILLE 320,930 288,837 - (32,093)
WHITNEY PQ[NT 1,477,411 1,329,670 (147,741)
WILLIAM FLOYD 13,381,811 12,043,630 (1,338,181)
WILLIAMSON 614,789 553,311 (61,479)
WILLlAMSVlLLE 1,486,811 1,338,130 (148,681 )
WILLSBORO 181,893 163,703 (18,189)
WILSON 882,219 793,997 (88,222)
WINDHAM ASHLAN 83,096 74,786 (8,310)
WINDSOR 1,224,005 1,101,605 (122,401)
WORCESTER 388,274 349,447 (38,827)
WYANDANCH 2,280,928 2,052,835 (228,093)
WYNANTSKILL 137,570 123,813 (13,757)
WYOMING 169,600 152,640 (16,960)
YONKERS 13,897,169 12,507,452 (1,389,717)
YORK 685,536 616,982 (68,554)
YORKSHRE-PIONE 2,495,676 2,246,108 (249,568)
YORKTOWN 704,532 634,079 (70,453)
TOTAL 1,460,965,176 1,314,868,660 - (146,096,516) www.ny.gov - GOVERNOR PATERSON ISSUES PROCLAMATION FOR EXTRAOR. .. Page 1 of 1


November 5 , 2009

GOVERNOR PATERSON ISSUES PROCLAMATION FOR EXTRAORDINARY SESSION OF LEGISLATURE FOR NOVEMBER 10

Proclamation Also Contains Legislative Agenda, Including State Spending Cap with Circuit-Breaker Property Tax Relief Program, Tier V Pension Reform, Public Authorities Reform and Marriage Equality

Governor David A. Paterson today signed a proclamation calling an extraordinary session of the Legislature to address the current-year deficit and additional legislation that was not finished at the end of session last June. In accordance with the proclamation, the Legislature will convene an extraordinary session on November 10 at noon.

In addition to Governor Paterson's Deficit Reduction Plan (DRP), the extraordinary session proclamation contains eight legislative items to be addressed by the Legislature; including the Governor's proposed cap on State spending which includes a circuit-breaker property tax relief program, structural reforms to the State pension system and public

a uthorities reform.

"The time to act is now. The Deficit Reduction Plan, while painful, is necessary to keep our State afloat," Governor Paterson said. "New York can no longer afford delays, and New Yorkers will no longer stand for delays. I have met with my colleagues in government and I understand and agree with the need to lessen the impact that these reductions will have on all New Yorkers - but the surest way to mitigate the pain is to act now."

Governor Paterson's two-year, $5.2 billion DRP would have a current-year impact of $3.2 billion in 2009-10 and a recurring impact of $2 billion in 2010-11. The components include across-the-board spending reductions and a tax penalty forgiveness program. The DRP also makes structural reforms to the pension system and proposes a cap on State spending, both of which would yield long-term taxpayers savings.

The full legislative menu submitted by Governor Paterson for Tuesday's session includes:

• Implementing a deficit reduction plan to address the current-year budget gap and improve New York's long-term fiscal stability;

• Capping the growth of State government spending to help control State expenditures and improve New York's long-term fiscal integrity; and establishing a school tax circuit breaker tax credit and a Property Tax Circuit Breaker Reserve Fund to provide property tax relief to New Yorkers;

• Providing property tax relief through efficiency in local government by making it easier for municipal governments to form cooperative health benefit plans for their employees; facilitating highway shared services agreements among municipalities, and between municipalities and State agencies; allowing multiple counties to employ a single public health director; increasing the local competitive bidding thresholds on public works contracts; equalizing the treatment of collateral sources in tort actions against public employers and protecting parties to

the settlement of a tort claim from certain unwarranted lien, reimbursement and subrogation claims; and authorizing the municipal bond bank agency to issue bonds, notes or other obligations to purchase bonds issued by municipalities to provide for public improvements afforded by the American Recovery and Reinvestment Act of 2009;

• Eliminating a statutory inconsistency that allows certain serious felons to become eligible for parole and medical parole earlier than intended;

• Providing same-sex couples the same opportunity to enter into civil marriages as opposite-sex couples;

• Enhancing penalties for operating a motor vehicle while impaired by alcohol, drugs or a combination of both while a child is a passenger in the vehicle, and expanding court-ordered use of ignition interlock devices;

• Reforming the pension system by creating a new tier of pension benefits (Tier 5) for certain newly hired State and local government employees;

• Reforming public authorities in New York State by increasing the transparency and accountability of authorities and their transactions and improving oversight of such authorities through the creation of an independent authorities budget office; and

• Establishing a municipal sustainable energy loan program to assist property owners in the installation of renewable energy and energy efficiency improvements.

Legislative Bill Drafting Commission 12161-05-9

PROGRAM BILL II 2 1 1

s.

Senate

EXTRAORDINARY SESSION :tfl~

IN SENATE--Introduced by Sen

--read twice and ordered printed, and when printed to be committed to the Committee on

-------- A.

Assembly

IN ASSEMB~Y--Introduced by M. of A.

with M. of A. as co-sponsors

--read once and referred to the Committee on

*BUDGBI*

(Authorizes the director of the budget to reduce payment of all or part of any appropriation for fiscal year 2009-2010 upon certification)

Reduce payment of appropr

AN ACT

to authorize the director of the budget to reduce payment of all or part of certain appropriations; and providing for the repeal of such provisions upon expiration thereof

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

IN SENATE _

Se.n.et.te introducer·.11 signAture

of chi. proposal

The senators wboae D4IIle8 lire cixcled below wish to join me in the aponl!lorahip

809 Skelos

815 Addabbo

.55 M •• t

848 Aube..rUne

842 BaDacic

846 Brea11D

s03 Poley

824 La.nz.a

a08 Fuschillo 839 Larltin

822 Golc11iD a01 LaValle

841 Grillo 840 L4!1..bell

e06 fllWllOIl 852 Lihous

836 Ilaslu!lll- a4:5 Little

.so De.PrlmCiaco 'l'bompaoD

sOl J'obnson, c. st3 Kc.Do.Pald

805 Karcell1Do

832 Diu 810 Huntley

sOt Johnson, 04 a13 MoDserrate

a17 Dilan

a29 Duana

a33 Xspa.o~ ,,404. Parley .0,2 Flanagan

862 Ke.Eiarz

8::U ~lei.n

a18 Mont.gomery

aU OWJrato

83"1 Oppeah8imer

1111 Pa.d.avUl

8 21 P4%lt.er

830 PerkinIJ

s61 Ranzenhofer

856 Robach

841 Sa.l4lld

S14 smith

»25 Squadxon

s58 Btac.bowski

dE Stavi8ky

83 S Stewart ~

Cous1..as

919 SUIPSQl1 849 Va1esky

s60 T.b.ompsotl

s23 SsviDo 859 volker

.,51 Se1f1lrd.

sll Schnei4ennan 8S3 Winner

82& Sf'l:rrOJ:X) sS7 Young

IN ASSEMBLY _

s26 x.ru.eqer

a3B Morabcm

Aseeamly int:t'oducer's • .lguatllre

The Kember. of tho AIIIseml:lly .hose names are cixcled below will}!. to joiI1 ee in the

s54 N03;zolio

0.001 A1essi

0.032 COok.

0.083 HeaStie

0.021 Altco

0.084 Arroyo

.035 AUbry

a136 Bacalles

0.099 Ball

a.l:il4 Barclay

0.014 ilana

a040 Barron

a082 Benedetto

0.079 Be.a.ja.&.i.n 0.073 Bi.ng

.055 BoylaD4

0.008 Boyle

.OB9 Bradley

aD'" Braman

80092 Brodsky

0.142 Corw:lD

a02& "evesi

0.085 Crespo

0.04.8 Hlklnd

0.107 Crouch

80018 fioopeL'

0.04:5 cymbrowitz: 0.060 Hyer .. Spe.ncer a132 Marelle

a12& Qaks

0.069 O'DoIltLell a06f, Si.lver

80093 Spano

0.063 Cu.8ick.

0.144. Hoyt

4138 OelKonte 80042 JaCobs

e.034 DenDekker 4095 Jaffee

&1.16 De8tito

a05? Jeffries

a08l Di:c.owitz

80131 John

0.114 Duprey al12 Jord.a.n

0.003 Bc1c1ington 0.074 Xavonagh

0.004. Bnglebriqht a06S Kellner

a130 Brrigo 0.129 J:olb

0.072 Bapaillat 80135 Kooa

a071 Farrell 0.025 LaJl(:man

80005 'PielWa: 0.091 La.t1.mer

0.123 PinCh

0.013 I..avine

0.04.6 Broo)::-uasuy 0.007 Pitzpatrick aDSO Lentol

0.127 Lopez. P.

0.147 Burling'

0.117 Butler

0.101 Cahill

a096 Calboun

80043 Cazara

a143 Ge.bryszak. a125 Litton

0.090 G4let

6133 Go.rltt

a053 LOpez, V.

a022 Meng

0.017 NcXevi tl: 0.067 Rosent.hA.l

80118 Russell

al02 Killer, a, 0.012 SalacliI10

e.038 Miller. !l. all3- Say..ard

aOS2 l!i1I.ma.D

80029 Bcarborougb.

0.103 Mo1i.ne..ro a016 Scb.i.mel

a14S Schroeder

0.037 Nolan

0.14.0 Scb..UtaJ.nger

s122 Scozzafava

0.137 O'Mara alOO Sltartados

a0!51 Ortir:

alSO Parment

0.088 Paulin

4121 St.lrpe

8014.1 Peoples- 0.110 'fedisco

Stoke8 0.002 Thiele

0.011 Sweeney

0.023 Phatter

a039 Peruta a061 Titone

80062 'Tobacco

a058 Perry a031 Titua

a068 Powell

0.097 Pretlow

6097 Rabbitt

a009 Raia

a006 JtamcI!J

aOS4 TOWIUI

aOB Walker

a041 WeUlsteill

a020 Weisenberg

0.106 Canestrari ..14.9 Giglio 0.120 Kagnare11i 0.134 Reilich 0.070 Wright

a024 Weprin

a036 Gianari8

801215 Lupardo

80026 Carrozza. a066 Glick aOS9 Maisel al09 Reilly a0.94 Zebrowski

80071 Gil:lson

80111 Magee

0.086 Castro alOS Gordon 0.030 HUkey 8007& Rivera .. J.

aO-l7 Colt.oD

al19 Chriaten&en a07S Gottf:z:ied 0.021 Kayersohn 800800 Jtivet"G.1 If.

0.033 Clark a098 Gunther a019 NcDoDougb aD76 Rivera, p.

&139 Hawley

al04 HcBneny

&056 ROllinson

1) Si.Jlgle KouBe Bill (introduCed o.nd. printed separately in either or both

houses). trni-BUl {introduced sinzultan.eously in both houses and printed (l.S one bil L Senate 8M A48edbly .lntroduc.er eign the. same copy of t:.he bill}.

2) Circle name8- of co-apOIlSOr8 cmd retuxn to introduction clerk. with 2 signed

copiea of bill and 4 copies ot memorandum in support. (single bouse): ox 4 8igned

copies of bill ~ 8 copies of DeDJrandwa in support (un! -bill) •

LBDC 10/23(09

j j.

!

I

!

11/24/09

2

12161-05-9

::-;_ ~

-, -

1 Section 1. Legislativ. findings. The legislature finds that the defi-

2 cit in New York state's current accounts presents a genuine danger that

3 the state will lack the funds necessary to mak~ payments as they come

4 due. Further, the legislature finds that alternati'\rem~ans of securIng

5 funds to make such payments may not be available. Therefore, in light of

6 the above and the state's extremely precarious and worsening fiscal

7 situation, the legislature intends that it shall be a condition of all

8 appropriations made for fiscal year 2009-2010 that the governor may
9 direct reduction of payment of a part of any appropriation solely as
10 necessary to allow for disbursements to be made, and with the proviso
11 that no obligation for debt service, compliance with collective bargain-
12 ing agreements or payments required by federal statute, or the state or 13 federal constitution shall be altered as a result of this condition.

14 S 2. In addition to authority otherwise provided by law, the director

15 of the budget shall be authorized, upon approval of the governor, to

16 direct reduction of payments of part of any appropriation for fiscal

17 year 2009-2010, provided that such reductions are uniformly applied to

18 the extent practicable and are in an amount that does not exceed the

19 amount necessary to reduce estimated annual state disbursements to a

20 level not to exceed the estimated annual receipts expected to be ava11-

21 able in such fiscal year. Such direction may be exercised notwithstand-

22 ing any other provision of law, except that it shall not apply to any

23 funds appropriated for the payment of debt service, related expenses or

24 funds appropriated pursuant to an agreement entered into pursuant to

25 article 14 of the civil service law, and any payment required under

26 federal law or the state or federal constitution.

27 S 3. This act shall take effect immediately, and shall expire and be

28 deemed repealed December 31, 2009.

NYS DaB: Press Release

Page 1 of 1

STATE

David A. Paterson, Governor Robert L. Megna, Budget Director

STATE OF NEW YORK DIVISION OF THE BUDGET

DAVID A. PATERSON, GOVERNOR


December 2, 2009

CONTACT: Matt Anderson Matt.Anderson@budget,st<l~_.I1Y_·us 518.473.3885

STATEMENT FROM GOVERNOR DAVID A. PATERSON

"While the deficit reduction legislation passed by the Legislature provides needed savings, it falls well short of what is necessary to put New York on the road to fiscal and economic recovery. It does not fully address our current-year budget deficit. It does not solve our severe cash-flow crunch. It does not address our long-term structural imbalance. And at $2.7 billion in current-year savings, it does not even achieve the $2.8 billion deficit reduction target that some have touted for two days.

"As Governor, I have a fundamental responsibility to keep our State solvent. Every day New Yorkers know that they simply cannot spend money that they do not have, and our State government should understand that as well. For decades, Albany has refused to take the necessary steps to control spending, and has too often put off until tomorrow what should have been done yesterday. I will not allow this to continue on my watch.

"Because certain legislators are unwilling to stand up and control spending for fear of the political consequences, I will move forward and implement the tough choices they were unwilling to make. In the coming days, I will direct the Division of the Budget to reduce State aid payments administratively in order to balance the budget and prevent New York from running out of cash.

"I have been and will continue to meet with Budget Director Robert L. Megna and Comptroller Thomas DiNapoli to assess the current cash-flow and revenue situation. Once that assessment is complete, I will announce the specific local assistance reductions I will implement unilaterally.

"I do not take this action lightly, but there is no other responsible path. If the Legislature will not do what is necessary, I will take the difficult actions that are needed to restore our State's fiscal integrity."

###

1 ""\ J() 1""\ f'\r\r\

STATE OF NEW YORK

SUPREME COURT COUNTY OF ALBANY

DOUGLAS BECKER; BRIAN A. BOYD; GEORGE HEIDCAMP; PAUL M. HETLAND; FLORENCE D. JOHNSON, PETER KRUSZYNSKI; KIMBERLY PETRAMALE; HARRY B. REEDER; WAYNE E. SCHLIFKE; SETH TURNER; NEW YORK STATE UNITED TEACHERS, by its President, RICHARD C. IANNUZZI; NEW YORK STATE SCHOOL BOARDS ASSOCIATION by its President, WAYNE E. SCHLIFKE; SCHOOL ADMINISTRATORS ASSOCIATION OF NEW YORK STATE by its President,

PETER KRUSZYNSKI; and the NEW YORK STATE COUNCIL OF SCHOOL SUPERINTENDENTS,

AFFIDAVIT OF JAYWORONA

Plaintiffs,

Index No.

- against

HONORABLE DAVID A. PATTERSON, as Governor of the State of New York; THE NEW YORK STATE DIVISION

OF THE BUDGET; ROBERT L. MEGNA, as Budget Director

for the New York State Division of Budget; THE NEW YORK STATE OFFICE OF THE STATE COMPTROLLER; and THOMAS P. DiNAPOLI, as Comptroller of the State of New York,

Date Filed:

December 16, 2009

Defendants,

STATE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

JAY WORONA, being duly sworn, deposes and says:

1. I am General Counsel and Director of Legal Services for the New York State School

Boards Association, Inc. (hereinafter also referred to as "NYSSBA" or "the Association"), and

an attorney duly admitted to the practice of law in the State of New York. I am also the attorney

for Plaintiffs New York State School Boards Association, George Heidcamp, Florence D.

Johnson, Harry B. Reeder, and Wayne E. Schlifke. As such, I am fully familiar with the facts in

this matter.

2. Chapter 53 of the Laws of 2009 appropriated funds for the general support of public schools to be paid from the general fund's aid to localities local assistance account - 001 and for the school tax relief (STAR) program from the school tax relief account - 053.

3. The appropriated funds for the general support of public schools and the STAR program moneys are critical to school districts.

4. Nonetheless, on December 15, 2009, defendants acted to "administratively" withhold lawfully appropriated aid to localities and STAR program funds due to school districts on that date.

5. In an official statement released December 13, 2009, defendant Governor Paterson indicated, in relevant part, that the withholding of such funds constituted "cash-management actions, rather than a permanent elimination of liability for these specific payments." However, in that same statement, the Governor further indicated that he "reserves the right to institute further payment delays later over the remaining months of the fiscal year in order to preserve the State's cash position."

6. Plaintiffs challenge the legal validity of defendants' actions regarding their present and future withholding of lawfully appropriated state aid and STAR program funds.

7. NYSSBA is a not-for-profit membership corporation incorporated under the laws of the State of New York located at 24 Century Hill Drive, Suite 200, Latham New York, whose membership consists of approximately 680 or ninety-three percent (93%) of the public school districts of New York State, including boards of cooperative educational services (BOCES). Pursuant to Section 1618 of the Education Law of New York State, NYSSBA has the responsibility of "devising practical ways and means for obtaining greater economy and efficiency in the administration of school district affairs and projects." As such, NYSSBA is

duly authorized to conduct programs and activities in the interest of its school members. (See Op. Counsel, 1 Educ. Dep't Rep. 718 (1951)).

8. One activity conducted by NYSSBA on behalf of its members is its participation in legal actions of statewide significance that will have an impact on the Association's members.

9. At a meeting held on December 5, 2009, NYSSBA's board of directors discussed the implications of the actions ofthe defendants in withholding state-aid funds lawfully appropriated by the New York State Legislature for school districts throughout New York. It also considered the impact of those actions on the ability of boards of education to discharge their statutory responsibility to make available a sound basic education to children entitled to attend public schools within their respective school district.

10. The concerns discussed at NYSSBA's board of directors meeting of December 5, 2009 were prompted by defendant Governor Paterson's continuing efforts to reduce the State's deficit with "across-the-board spending reductions" and his convening of an extraordinary session of the State's Legislature.

11. Specifically, NYSSBA's board of directors was concerned about the results of any withholding of state aid to school districts including consequent cuts in educational programs and reductions in staff, class size increases resulting from staff reductions and liabilities resulting from related contractual grievances, the inability of school districts to pay vendors, their need to borrow money and the related interest expenses generated by such borrowing, as well as the local tax levy increases that will need to be imposed on already fiscally burdened communities for the upcoming school year in order to address the financial impact on local school communities created by the defendants' actions.

12. As a result, at its December 5, 2009 meeting, NYSSBA's board of directors directed the Association's General Counsel to undertake any action necessary to challenge the ability of the State to delay, cut, or otherwise stop school aid payments without the requisite legal authority to do so.

13. In accordance with this directive, I am acting as attorney for NYSSBA as well as for the individual Plaintiffs George Heidcamp, Florence D. Johnson, Harry B. Reeder, and Wayne E. Schlitke, who although also members of the board of education of their respective school district, are challenging the defendants' actions at issue herein as citizen-taxpayers seeking both a declaration that the defendants' actions are unlawful and injunctive relief.

14. Plaintiff George Heidcamp is a resident of New York State who resides at 2314 Route 32, Saugerties, New York, and is also a member of the board of education of the Saugerties Central School District.

15. Plaintiff Florence D. Johnson is a resident of New York State who resides at 40 Pansy Place, Buffalo, New York. She also is a member of the board of education of the Buffalo City School District, and Vice-President and President-Elect of the board of directors of the New York State School Boards Association.

16. Plaintiff Harry B. Reeder is a resident of New York State who resides at 812 Jeffrey Street, Herkimer, New York, and is also a member of the board of education of the Herkimer Central School District.

17. Plaintiff Wayne E. Schlitke is a resident of New York State who resides at 1585 Westwood Road, Alden, New York. He is also a member of the board of education of the Erie 1 Board of Cooperative Educational Services, and President of the board of directors of the New York State School Boards Association.

18. Plaintiffs George Heidcamp, Florence D. Johnson, and Harry B. Reeder have commenced this action in their individual capacity as a "citizen-taxpayer" as defined in Article 7-A of the State Finance Law.

19. Plaintiff Wayne E. Sclifke has commenced this action both in his individual capacity as a citizen-taxpayer under Article 7-A of the State Finance Law and as President of the board of directors ofthe New York State School Boards Association.

20. Individually, and as residents of New York State, Plaintiffs George Heidcamp, Florence

D. Johnson, Harry B. Reed, and Wayne E. Schlifke have paid and are paying both state income and state sales taxes. As such they each are a person who is and may be affected or specially aggrieved by the activity complained of in this action. It is their contention that the defendants have caused and are now causing a wrongful expenditure, misappropriation, misapplication, and an illegal and unconstitutional disbursement of state funds by taking actions in violation of clear constitutional limitations on their authority, as well as long established statutory requirements.

21. School district budgets across the state support N ew York's system of public education through a combination of local property taxes, state aid and federal aid.

22. In accordance with Sections 1608, 1716, 1804(4) and 2601-a of New York's Education Law, school districts are required on an annual basis to prepare a proposed budget for the upcoming school year and submit it for approval by the school district's qualified voters in the month of May. Without voter approval of the proposed budget, a board of education would have to adopt a contingency budget consistent with the requirements of Sections 2022(5), 2023, 2601- a(4),(5) of New York's Education Law.

23. School budgets go into effect July l" of each year pursuant to Section 2(15) of New York's Education Law, which defines a school year to include the period commencing on July 15t

in a year and ending on June 30th of the following year, often also referred to as a school district's fiscal year.

24. Both voter-approved school budgets and board-adopted contingency budgets include funds appropriated through the State's legislative process for the support of public education which, in tum, help to determine the portion of the budget that must be raised through local property taxes.

25. The STAR program is a state-funded exemption from school property taxes available to those meeting the eligibility requirements of Section 425 of New York's Education Law. It allows qualifying homeowners to pay lower property taxes to fund the school system, and enables school districts to make up the difference with state funds. (See also, Education Law

§3609-e).

26. Pursuant to Section 1306-a of New York's Real Property Tax Law and Section 3609-e of the Education Law, school districts set the amount of taxes and the tax rate for the school budget tax levy without regard to the STAR exemption. The tax savings to those qualifying for the STAR exemption is then paid by the State to school districts following their submission of an application to the State Board of Real Property Services, which must compute and certify to the commissioner of education the amount of aid payable. STAR moneys owed school districts are then payable upon audit and warrant of the state comptroller from vouchers certified and approved by the commissioner of education, in accordance with a statutorily prescribed schedule.

27. Pursuant to New York's Real Property Tax Law, a board of education must adopt a tax warrant by September 1, each year. The school tax collector may then begin the process of collecting payment of the local taxes supporting a school district's budget. Any uncollected taxes must be forwarded to the county where the school district is located by November 15th each

year. The county is obligated to pay the school district the amount of uncollected taxes by April 1 st (Real Property Tax Law §§ 1306(1); 1318(3); 1330(2)).

28. The distribution of state-aid payments, including legislatively appropriated funds for the general support of public schools and STAR moneys, are spread throughout the school year. However, pursuant to Education Law Section 3609-a, fixed payments must be made in the months of October, November and December comprising the majority of a district's state aid payments.

29. The December aid payment represents a substantial amount of a school district's total aid.

That payment is particularly critical to a school district's cash flow to meet the costs set by the school budget that becomes effective at the start of a school district's fiscal year every July 1st.

30. In accordance with the State's statutory scheme, the bulk of a school district's revenue each year is received from local taxes. The collection and payment of revenue from these taxes, however, does not begin until the third month of the fiscal year and runs through the following April 1 st. Therefore, it is critical for school districts to receive lawfully appropriated school state aid and STAR moneys on the statutorily designated dates in order to maintain programs and services, meet payroll, discharge purchasing and debt service obligations and other legal liabilities.

31. According to the New York Court of Appeals, there is no constitutional obligation to maintain a balanced state budget. Neither is there an "implied power" for the executive branch of government to "unilaterally 'reduce' a lawful appropriation" (Matter of County of Oneida v. Berle, 49 N.Y.2d 515, 521-24 (1980)). No matter how "laudable its goals, the executive branch may not override enactments which have emerged from the [constitutionally prescribed] lawmaking process" (Id. at 523).

32. In addition, it is now beyond question, that "the State has obligated itself constitutionally to ensure the availability of a 'sound basic education' to all its children" (Campaign Jar Fiscal Equity, Inc. v. State of New York, 100 N.Y.2d 893, 902 (2003)).

33. As acknowledged by the New York Court of Appeals, the purposes of state aid to schools are "to assist school districts in providing an effective education, maintain a state-local partnership in public education, equalize school revenues by providing state aid III inverse proportion to each school district's ability to raise local revenues, and encourage model programs to address the needs of the school community" (ld at 929 (2003)).

34. The on-time payment of lawful legislative appropriations for the general support of public education and STAR funds are critical to the state-local partnership integral to the fulfillment of this constitutional mandate (ld, at 929-30).

35. Under the guise of prudent fiscal management, the defendants' actions actually subvert the very purposes of state aid to schools, and the state's constitutional mandate to ensure the availability of a sound basic public education.

36. Unavoidably, the defendants' actions also drastically impair the ability of school districts throughout New York State to meet their own responsibility under that constitutional mandate. Resulting cuts to educational programs and services, staff reductions, and increases in class sizes involve many of the very issues that lie at the core of compliance with the obligation to provide a sound basic public education (See Campaign for Fiscal Equity v. State oJNew York, 100 N.Y.2d 893 (2003); 86 N.Y.2d 307 (1995)).

37. It is, therefore, the contention of Plaintiff NYSSBA and the individual Plaintiffs George Heidcamp, Florence D. Johnson, Harry B. Reed, and Wayne E. Schlifke that the defendants

acted unlawfully in withholding the payment of legislatively appropriated school state aid funds

and STAR moneys.

38. For the foregoing reasons, and for the reasons set forth in the accompanying Summons

and Complaint, Memorandum of Law, Attorney Affidavits, and other related papers, Plaintiffs

are entitled to both declaratory and injunctive relief rendering null and void the defendants'

actions at issue herein and ordering defendants to pay school districts the state aid funds and

STAR moneys unlawfully withheld from them.

Dated: December 16, 2009

Sworn to before me this 16th day of December, 2009

a&~

Notary Public

ARLENE P. McKEON 92 2mNotary Public, State of New York Qualified in Greene County NO.01MC5052014 Commission Expires November 13. 20..lJ.._


COUNTY OF ALBANY

DOUGLAS BECKER; et al.

Affidavit of Michele Victoria HandzelMiller

Plaintiffs,

Index No.

against-

HONORABLE DAVID A. PATTERSON, as Governor of the State of New York; et al.

December 16, 2009

Defendants,

ST ATE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

MICHELE VICTORIA HANDZEL-MILLER, being duly sworn, deposes and says:

1. I am General Counsel for the New York State Council of School Superintendents

(hereinafter "THE COUNCIL"). As such I am fully familiar with the facts in this

matter.

2. I am an attorney duly admitted to the practice of law in the State of New York.

3. I submit this affidavit in the instant action on behalf of SETH TURNER, in his

capacity as a citizen taxpayer, and in his capacity as a member of THE COUNCIL.

4. In 2009, the legislature acted to appropriate funds for the general support of

public schools to be paid from the general fund's aid to localities local assistance

account - 001 and for the school tax relief (STAR) program from the school tax

relief account - 053 (see generally Chapter 53 of the Laws of 2009) .

5. The appropriated funds for the general support of public schools and the STAR

program moneys are critical to school districts.

6. On December 11, 2009, defendants acted to withhold lawfully appropriated aid to localities and also indicated his intention to withhold STAR program funds due to school districts at a later date.

7. Plaintiffs challenge the legal validity of defendants' actions in withholding such funds.

8. THE COUNCIL is a professional association duly chartered by the New York State Education Department with offices located at 7 Elk Street, Albany New York.

9. THE COUNCIL'S membership comprises approximately 680 school superintendents out of 708 in New York State, or 96% of all school superintendents as well as BOCES superintendents and superintendents of special act school districts. Pursuant to New York State Education Law §§ 1711(2)(a), 2508(1) and 2566(1), superintendents of schools are the chief executive officers of school districts. In this capacity, superintendents of schools are responsible for enforcing all provisions of law and all rules and regulations relating to the management of schools including educational, social, recreational and budgeting issues under the direction of the board of education. Superintendents have the right to speak on all matters which come before the board of education.

lO. THE COUNCIL'S mission is to advocate on behalf of the state's school superintendents, develop and promote policy on matters relating to elementary and secondary education, school finance, school leadership and superintendents' role as chief executive officers of school districts. THE COUNCIL has over a century of service to New York State school superintendents.

2

11. A primary interest of THE COUNCIL and its members is to support education leaders by providing legal, financial and other resources necessary to ensure students receive the best educational opportunities possible. THE COUNCIL engages in a variety of activities to further these ends. These include: working with the New York State Legislature and Board of Regents developing laws and policies impacting school practices, education policy and ensuring effective use of New York public sector labor and employment law.

12. THE COUNCIL also provides legal counsel and advice to school superintendents with respect to matters pertaining to employment and budget issues.

13. The defendants' actions compromise the ability of the school districts to ensure children receive a sound basic education through a well designed, stable and functioning finance system and therefore, the defendants' actions will have a profound impact on schools. As such, the entire constituency of THE COUNCIL will be directly affected by the outcome of this case.

14. On December 8, 2009, THE COUNCIL'S executive committee considered the Governor's threats to unilaterally delay a portion of the December 15 School Aid payments, concerned because the Governor's threatened action would repudiate the efforts of the Legislators who fought hard to avert the mid-year cuts to School Aid.

15. THE COUNCIL'S executive committee was concerned that the Governor's actions would inflict harm on schools and that such a decision is contrary to the governmental decision-making structure created by the state constitution.

3

16. On December 8, the executive committee directed the Association's General Counsel to 'join in the litigation and otherwise support the efforts of the parties with standing to prevent the Governor from withholding school state aid payments. "

17. In accordance with this directive, I am acting as attorney for THE COUNCIL, as well as for Plaintiff Seth Turner, who, although a superintendent of schools, is challenging the defendants' actions at issue herein as citizen-taxpayers seeking both a declaration that the defendants' actions are unlawful and injunctive relief.

18. Plaintiff Seth Turner has commenced this action in his individual capacity as a "citizen-taxpayer" as defined in Article 7-A of the State Finance Law. As a resident of New York State, he has paid and is paying both state income and state sales taxes. As such he is a person who is and may be affected or specially aggrieved by the activity complained of in this action. It is his contention that the defendants have caused and are now causing a wrongful expenditure, misappropriation, misapplication, and an illegal and unconstitutional disbursement of state funds by taking actions in violation of clear constitutional limitations on their authority, as well as long established statutory requirements.

19. Plaintiff Seth Turner is a resident of the State of New York residing in Ulster County at 32 Royal Oak Road, Stone Ridge, New York 12484. He is also a Superintendent of Schools duly certified by the New York State Department of Education and currently serves in that capacity for the Saugerties Central School District (hereinafter referred to as the "School District"). The School District's

4

offices are located in Ulster County at 310 Washington Avenue Extension, Saugerties, New York 12477.

20. Plaintiff Seth Turner is also a member of THE COUNCIL.

21. The School District has a total enrollment of 3054 students for the 2009-10 school year. The district currently employs 271 teachers, 108 paraprofessionals, and 16 other professionals (which includes building administrators, guidance counselors, psychologists, and school nurses).

22. Plaintiff Seth Turner has held his position as Superintendent of Schools for the School District since July l, 2009, but has been continuously employed by the School District since 1997. Prior to his appointment as Superintendent, he served as principal of an elementary school for six years, an assistant principal for two years, and three years as a teacher before that.

23. Pursuant to Section 1711(2) of the New York State Education Law, as superintendent of schools, Plaintiff Seth Turner is the School District's chief executive officer charged with enforcing all provisions of law and all rules and regulations relating to the management of the schools under the direction of the School District's board of education.

24. As a result of Plaintiff Seth Turner's licensing credentials and experiences with the School District in discharging his statutory responsibilities, he is a person familiar with the school budget process and the impact of state aid on the operation of a school district. His responsibilities as Superintendent of Schools for the School District makes him familiar with the impact of any delays or withholding of state aid payments on the School District's operations.

5

25. Under Education Law Section 2(15) a school year includes the period commencing on July first in a year and ending on June 30th of the following year, often also referred to as the school district's fiscal year.

26. On an annual basis, a school district must prepare a proposed budget for the upcoming school year. The proposed annual budget must be submitted for approval by the school district's qualified voters.

27. The distribution of state aid payments are spread throughout the school year, and under the law, the December aid payment represents on average approximately ten (10%) percent of a district's total aid and as such is particularly critical to a school district's cash flow. Therefore, it is critical for school districts to receive state aid on the statutorily designated dates in order to meet payroll, purchasing and debt service obligations in a timely fashion.

28. A delay in the December aid payment would be devastating for the Saugerties Central School District where Plaintiff Seth Turner, as superintendent, is duty bound by the terms of the School District's collective bargaining agreement with its teachers union to notify thirty-six (36) teachers that they could be laid off effective January 31, 2010. If Plaintiff Seth Turner had not given the notice, the teachers would have been entitled to guaranteed employment for the remainder of the school year even if the School District becomes unable to meet the financial costs associated with their continued employment.

29. If the state aid payments are delayed or withheld the School District would be forced to layoff at least twenty (20) of these thirty-six teachers.

6

30. Additional staff lay-offs would include: one (1) administrator, four (4) secretaries, two (2) social workers, two (2) psychologists and a bevy of teaching assistants.

31. The School District does not have monies in a reserve fund that would cover the costs it would have to incur as a result of any delay or withholding of state aid payments.

32. The Defendants' actions to withhold lawfully appropriated aid to localities and STAR program funds due will cause grave harm to Petitioner Seth Turner, to THE COUNCIL's members and to the school systems they serve.

33. Not all school districts have monies in a reserve fund that would cover the delay in scheduled payments. Without monies in a reserve fund to cover the costs, school districts would have to excess teachers, administrators, and support staff immediately, and would have to do so without providing appropriate notice to the staff as required by law. In most cases, the excessed teachers would have been entitled to guaranteed employment for the remainder of the school year even if the School District becomes unable to meet the financial costs associated with their continued employment

34. Non-mandated programs will be hit hard by the reduction in state aid, including a reduction or cessation of field trips, sports, music, arts, and extra-curricular activities.

35. School districts not able to absorb the loss of funding will have to find ways to cut spending, without cutting people, by cutting transportation, and cutting supplies and equipment purchases.

7

36. Since reserve funds cannot be used for regular expenses, school districts will have to borrow to meet payment obligations for regular expenses such as payroll, health insurance payments, and accounts payable including payments to BOCES, and other obligations.

37. The defendants' actions will result in late payments of bills by school districts, added fees, and credit problems that will have a long term effect on school district finances.

38. The delayed payments will put many school districts in an unstable financial position, forcing school districts to use the available fund balance, therefore eliminating this resource in case of a true emergency.

39. The delay in the December payment will harm school district cash flow, and cause districts to borrow which will increase future expenditures, and cause a decrease in anticipated interest earnings for the year. The delay may also harm bond ratings for many of the school districts.

40. If the December state aid payment was permanently cut, school districts would be forced to increase the tax rate to make up for the shortfall of state aid from the previous year, and/or the elimination of state aid would result in massive cuts to the educational programs offered by school districts in 2010-2011.

41. The defendants' actions will force some school districts to re-draft its second semester course offerings to eliminate classes, making it impossible for graduating seniors to complete the Advanced Placement (hereinafter "AP"), classes they have been taking which will impact their college plans. Courses that

8

could be eliminated include, but are not limited to: AP Spanish, English, and Calculus. Other remaining electives would also be eliminated.

42. The defendants' actions will force some school districts to cut speech improvement services and other Response to Intervention strategies, and cuts to staff will place a burden on Special Education and undoubtedly increase school suspensions and increased dropouts.

43. The defendants' actions will force some school districts to cancel after-school programs that assist children with autism in life skills. School districts would be forced to eliminate use of school buildings that the community depends upon to run programs for the benefit of students.

44. Mid-year cuts to state aid, of this magnitude will negatively affect the educational program for students in many school districts.

45. The defendants' actions fail to follow the rule of law and would require changes in law that would otherwise need to be approved by the Assembly and Senate.

46. The defendants' lacks the authority to permanently withhold or reduce the payment of school aid to school districts. Such action would require changes in law to be approved by the Assembly and Senate. These same laws should not be interpreted to permit the Governor to temporarily withhold the aid payments. The Governor cannot unilaterally amend the state budget and state laws.

9

Dated: December 16, 2009

to before me on this 16th day of er'2009.~

No

MICHELE V. HANDZEL-MILLER, ESQ. General Counsel

Attorney for proposed Amicus Curiae New York State Council of School Superintendents

7 Elk Street

Albany, New York 12207 (518) 449-1063

(518) 426-2229(f)

10

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ALBANY

--------------------------------------------------------------------x

DOUGLAS BECKER, et aI.,

Plaintiffs,

-against-

AFFIDAVIT

HONORABLE DAVID A. PATERSON, et aI.,

Index No.:

RJINo.:

Defendants.

Action for a Declaratory Judgment with Preliminary and Permanent Relief

--------------------------------------------------------------------x

STATE OF NEW YORK)

ss.:)

COUNTY OF ERIE)

PETER KRUSZYNSKI, being duly sworn, hereby deposes and says:

1. I am an employee of the Lancaster Central School District ("District"), for the

past fifteen years, and am currently Principal of the Lancaster Middle School.

2. I am a taxpayer resident of the State of New York, with school-aged children that

attend public schools in the State of New York. I currently reside at 6485 Salt Road,

Clarence, N.Y.

3. I am currently President of the School Administrators Association of New York

State ("SAANYS"). SAANYS directly represents approximately 7,000 school

administrators in the State of New York, and is a founding member of the New York

State School Administrators Consortium ("NYSSAC") which represents approximately

15,000 school administrators located in every county in the State of New York.

NYSSAC also represents the administrators in each of the Big Five City School Districts

in the State of New York.

1

4. I make this Affidavit in support of the above-captioned action seeking to prevent

Defendant Governor David Paterson from withholding monies duly appropriated by the

state legislature in accordance with its constitutional and statutory authority.

5. The school district budget, passed by a vote of school district taxpayers in May,

was based upon an expectation of a specific income derived from legislative action. For

the Governor to unilaterally alter the amounts of state aid that school districts will receive

will, upon information and belief, require districts to disrupt the continuity of programs

designed to educate our youth, and reduce personnel whose jobs are to instruct our youth

and ensure their safety and security.

6. The disruption of the educational process that will result from the Governor's

action will be unable to be cured as the students continue to process through the schools.

7. Further, without judicial intervention, such behavior is subject to repetition, which

would in effect render the public approval of school district budgets meaningless.

8. The Governor's action will have a direct adverse impact upon the Lancaster

Middle School, the Lancaster School District, the educational services offered to my own

children and to children around the state.

WHEREFORE, your affiant respectfully requests that Defendants be required to release

school-aid monies in accordance with proper legislative direction.

Subscribed and sworn to before me this 15th day of December, 2009

U'S>Q±RJ<S 00., \.9

NOTARY PUBLIC --~

BETH E. FAUL

NOTARY PUBLIC. STATE OF NEW YORK

Reg. NO.01FA6107155

QUALIFIED IN ERIE COUNTY

My Commission Expires March 22. 20 ~ Q_;

2

STATE OF NEW YORK

SUPREME COURT

COUNTY OF' ALBANY

DOUGLAS BECKER et. al.

AFfIDAVIT

Plaintiffs,

Index No.

-~-----

. against -

Date Filed:

December L S. 2009

HONORABLE DA vro A. PATERSON) as Governor of the State of New York; et al.

Defendants.

1. I, Susan Lipman, President of the New York Congress of Parents and Teachers. Inc. (NYS PTA) with nearly 350,000 Inembetsstate~de rer*e~iifili~ theinterests for children and youth, and supported by a vote of the NYS PT A Ext::'ciJti\ie 'COrn.niittee, believe that the actions of the Governor will do irreparable harm to the educational programs and opportunities available to the students of New York. Specifically, the decision to delay payments by reducing the $2,3 billion payment to school districts for the STAR program by 19% and $1.5 billion i.n school aid payments by 10% presents serious fiscal implications on the ability of local school districts to continue to provide necessary educational services to children.

2. NYS PTA has adopted resolutions regarding funding of education and reform of stare aid formulas within which we call for a funding solution for aid to school districts that is adeqIJBI-G. equitable, predictable, that provides equal educational opportunities for all public school stuJRents and that urge the legislature and the governor to increase financial suppOrt of public education, It is our belief that the Governor's actions are in direct opposition to the positions of our association.

3. Additionally. we are concerned about the final paragraph of the Governor's December 13th press release that reads: 4'A~ sufficient revenue becomes available, the State will potentially pay

1

the amounts that were delayed. As a result; these particular December reductions represent cashmanagement actions, rather than a permanent elimination of liability tor these specific payments. Governor Paterson will announce further actions in his Executive Budget to fully ellminate the State's remaining current-year deficit. He also reservesthe right to institute further payment delays later over the remaining months of the fiscal year in order to preserve the State's cash position." We believe that language opens the door for non-payment of the aid legally owed to districts or at the very least the potential that additional aid payment delays will have a negative compounding affect for school districts.

4. Therefore, we support the efforts of the New York State School Boards Association (NYSSBA) and the New York State United Teacher~ ~y~UT) in seeking injunctive relief to stop the Governor from taking these steps .

. .J

(~) :

~~~~~'~------~~~~~~ Susan Lipman, resident New York State Congress of Parents and Teachers, Inc, One Wembley Court

Albany) NY 12205·3830

518-452-8808

Sworn to before rne this It; day of December, 2009

Notary Public ~ ~~:: __

7 .

I Sarbera Ssagtaves Notal}' Pubrlc. Slate of New York

- No. 01 SE61 07297

Ouallfled in Suffolk County

CommiSSion Expires Maron.;lJ.- ).-O} ;r-

I

2

STATE OF NEW YORK

SUPREME COURT COUNTY OF ALBANY

DOUGLAS BECKER, et. aL,

Plaintiffs,

AFFIDAVIT

Index No.

-----

against

HONORABLE DAVID A. PATERSON, as Governor of the State of New York,

et. aL,

Defendants.

STATE OF NEW YORK )

) ss.:

COUNTY OF ALBANY )

PETER F. MANNELLA, being duly sworn, deposes and says:

1. I am the Executive Director of the New York Association for Pupil Transportation, Inc.,

(NY APT), and I state our association's belief that the actions of the Governor to withhold funds due to

school districts can and will do irreparable harm to the education programs, services and opportunities

available to the students of New York State.

2. Members of NY APT are the women and men whose school based responsibilities include the safe

and efficient transportation of more than 2.3 million children to and from school each day. They include

school transportation supervisors and directors, head school bus mechanics, dispatchers, safety trainers,

and others engaged in the safe transport of our children.

3. Specifically, we are concerned over the reduction of the $2.3 billion payment to school districts

for the STAR program and $1.5 billion in school aid payments by 19% and 10%, respectively. These

reductions present serious implications for the capacity of school districts to provide necessary

educational and related services for our children.

4. The loss of revenues for our schools has an impact not only on instructional support but also on those operational and management activities that ensure the viability of the school day. For instance, state funds in support of school transportation services are essential to: ensuring that proper equipment and vehicles, including some 50,000 yellow school buses are purchased, maintained and operated safely each and every day of the school year; ensuring that some 50,000 school bus drivers and attendants meet necessary standards of licensing, training and preparation for their sensitive and vital jobs: transporting our children on those school buses; ensuring that schools are able to carry out safety training and practices, sound routing and stop selection, school bus safety drills and orientation for children; ensuring that all personnel involved in that school transportation enterprise are properly credentialed and prepared for the work they do on behalf of the children and their safety.

5. We also express our concern that the Governor's statements on December 13, 2009, suggest or imply the potential for future delays and similar actions related to state funding. The Governor's press release that day included this language:

"As sufficient revenue becomes available, the State will potentially pay the amounts that were delayed. As a result, these particular December reductions represent cash-management actions, rather than a permanent elimination of liability for these specific payments. Governor Paterson will announce further actions in his Executive Budget to fully eliminate the Stare's remaining current-year deficit. He also reserves the right to institute further payment delays later over the remaining months of the fiscal year in order to preserve the State's cash position."

6. We are concerned that this places our school districts in the position of not knowing with any certainty what amounts of funds to expect from the state and of not knowing whether or if state funds are forthcoming as legislated in the adopted 2009-2010 state budget. No enterprise can operate on those

prermses.

7. We clearly are aware of, understand, and appreciate the financial situation in which our state

government finds itself. However, we are deeply concerned that school districts are in similar situations

and that the interests of the children are not served by these kinds of unilateral actions by the state.

School aid must be fair and predictable as well as allocated and administered in accordance with enacted

laws.

8. Accordingly, and by formal action of our Board of Directors, our association respectfully requests

the Court to grant injunctive relief to stop the Governor from withholding from school districts funds that

have been legally authorized and appropriated for payment in support of educational costs for our

children.

Sworn to before me this 16th day of December, 2009

Notary Public

JOAN S. SHEVLIN

:;",,'1" • State of New York Notar\, ···,I.."!·'SH6057070

?!~nsselaer county

C iTr-'~'S\Clr; Expires 4/9/20_j)_

~/t'! 01: Ill .. :>

STATE OF NEW YORK

SUPREME COURT

COUNTY OF ALBANY

DOUGLAS BECKER et. al.

AFFIDAVIT

Plaintiffs,

Index No.

-------

- against-

Date Filed:

December _, 2009

HONORABLE DAVID A. PATERSON, as Governor of the State of New York; et al.

Defendants.

1. The New York State Association of School Business Officials (NYSASBO) is the professional organization that represents the school administrators responsible for the day-to-day financial operations of public school districts across New York State.

2. Primarily, public school districts have two primary sources of revenue to support their vast educational activities - local taxpayer dollars and state aid. Sustaining the educational activities of the district depends on the consistent receipt of resources from these two sources.

By unilaterally delaying state aid payments, the Governor has forced school districts to scramble to make adjustments in spending (i.e. program and/or staff reductions), make emergency borrowings or, if they are lucky enough to have them, dip into their undesignated fund balance. If such a delay were not disruptive enough to the school program, the Governor's refusal to provide direction regarding when the residual aid payments will be made, allows the State to perpetually delay every school aid payment. This leaves school districts with no choice but to err on the side of caution and preempt deficits by making program cuts or borrowing significant dollars to replace a potential permanent loss of state aid. This pressure will be greatest on the low-wealth, high-need schools districts which depend most on state aid to fund school programs.

If the Governor's actions are allowed to stand, and this aid payment-to-aid payment guessing game is allowed to continue, school districts will have no choice but to make management practices that are counter productive to sound financial practices. At best, they will result in increased local property taxes due to unnecessary borrowing costs. At worst, staffing cuts and the mid-year dismantling of student programs will result in unnecessary and irreversible cuts.

Furthermore, if the Governor's unilateral actions are allowed to stand, the Legislature will become irrelevant in financial matters related to aid to school districts. Such a scenario would render future state budgets meaningless and subject school district operations to the threats and whims of a single elected official.

3. Therefore, we support the efforts of the New York State School Boards Association (NYSSBA),

New York State United Teachers (NYSUT), the New York State Council of School Superintendents (NYSCOSS), and the School Administrators Association of New York State (SAANYS) in seeking injunctive relief to stop the Governor from taking these steps.

St~ven Van Hoesen, Director Of Government Relations New York State Association of School Business Officials 7 Elk Street

Albany, NY 12207

518-434-2281

! ~ -rt.

S worn to before me this day of December, 2009

NotaryPublic ~

MAR ET MAURER

Nota'Y Public. State of New york No.01MA609Q046 Oualiiied in A!bany ~u;t~Ol \ Commission Expires Apn •

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﻿At a term of the Supreme Court of the State of New York, held at the Courthouse for the Albany

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At a term of the Supreme Court of the State of New York, held at the Courthouse for the Albany