Gov. Cuomo Vetos Bill Curtailing School Districts’ Borrowing for Short-Term Expenditures

eHezi Archives 20 Comments

Cuomo, Andrew The governor has rejected legislation that would undermine the intent of New York’s newly enacted property tax cap by allowing school districts to issue 15-year bonds to cover a portion of their rising teacher pension costs. The press release issued stated the following:

Governor Andrew M. Cuomo yesterday vetoed a bill that would have allowed school districts to issue new borrowing to cover short term expenditures, passing the bill to future taxpayers at a much higher cost.

The bill (A.6309/S.04067-A) would have allowed school districts- without voter approval- to borrow over $1 billion through bonds to cover current pension costs. The bonds plus interest would be paid off over 15 years, forcing taxpayers in some cases to pay back significantly more than the amount originally borrowed.

“The people of the State of New York have made it clear that they will no longer tolerate the fiscal irresponsibility and reckless spending that has driven their property taxes through the roof,” Governor Cuomo said. “Families across the state have been forced to cut back and live within their means and governments and school districts must do the same. New York has no future as the tax capital of the nation and this veto sends a strong message that we will not put today’s tough decisions on tomorrow’s taxpayers.”

Governor Cuomo’s veto will protect taxpayers from the massive tax increases in the future that would be needed to cover the costs of borrowing, and ensures that the recently passed 2% property tax cap, a hallmark of the Governor’s campaign and a priority of his administration’s first year, will remain intact.

Districts issuing pension bonds would push a growing expense into the middle of the 2020s, gambling (with taxpayers’ money) that taxpayer-contribution rates will fall sharply in a few more years. For that to happen, however, returns on pension-fund asset will need to exceed the fund’s already optimistic 8 percent yearly target throughout the next decade.

Meanwhile, by the time their borrowed money is exhausted in 2014, districts that have borrowed to cover pension increases will have fallen even further behind in meeting their actual current pension expenses.

That is, the bonding option could easily become “a millstone rather than a life raft,” as state Assemblyman Jim Hayes (R-Amherst) put it in yesterday’s floor debate on the bill.

Enhanced by Zemanta
eHeziGov. Cuomo Vetos Bill Curtailing School Districts’ Borrowing for Short-Term Expenditures

Comments 20

  1. Funny coming from a veteran teacher who ASSUME they are untouchable. Most teachers would still have a job if the YFT was a true union. Veteran teachers do the least work but make the most money and obvioulsy have no desire to help their co-workers. Its the veteran teachers who are comfortable with their tenure and do little work who give teachers the bad rep they have now

  2. Teachers can not assume that they are entitled to a job. In the business world there would be no questioning a layoff. Stop with the blame game and either look for another job or just wait to be called back.

  3. I am a laid off teacher and think the YFT is useless. There is no unity, just a bunch of greedy individuals looking for their raises. Puleo is a joke as a leader and does not care if teachers are brought back. Every time I call the union to see what they are doing I get the same prepared statement that pretty much me tells me they are doing nothing. The YFT is an embarrassment to the teaching profession.

  4. No job has guaranteed employment. You will be called back. Unfortunately, this is what Yonkers is all about. Good luck!!!!!

  5. Surprise, surprise Pierorazio will accept 1500 out of 2000 student to the preK program in September. What a bluff. Pat was smarter than Pierorazio and knew this was all a farce. So where are the 42million in cuts?????? It seems that by the end of the summer most positions will be filled and the old tricks don’t work any more!!!!

  6. More than that…for 30 years, multiple studies on the benefits of prekindergarten show $17 saved per dollar spent on Pre-K programs. That $15 million one year of Pre-K for more than 2,000 Yonkers children would have cost? Equals a potential $255 million spent over the next 25 years of the lives of these students who will be needed more special ed. services, more food stamps, more public healthcare, more police enforcement, more incarceration, etc…than they would have consumed had we chosen to pay for one year of Pre-K now. Some Americans and their short attention spans win the wrong battle once again.

  7. Yonkers hasn’t changed in 30 years. We all known that superintendents come and go. Pierorazio will be leaving. Teachers outlast all superintendents. He has made this mess. He should have presented the budgeted he needed making sure our schools were solvent and running. Instead he went along with Amicone so all his patronage jobs remained in tack.
    I may make 95,000 but I have been laid off several times when I started in Yonkers. Like I said, it is the YPS MO for layoffs. The only difference was that the superintendents all presented fair budgets.

  8. Yonkers and other cities are excluded from the two percent cap.There is a new reality of stagnant growth in the country for the foseeable future, that governments and the public workforce and elected officials must face.

  9. Dear Veteran Teacher,
    You were not asked to take a vow of poverty. You get paid between $90,000 and $130,000. You were asked to freeze salaries for one year, to aid in saving others livelihood. State, County and City municipal salaries have grown beyond what the tax payers can sustain. Next years 2% property tax will certainly result in austerity budgets for all municipal employees. You also state that City Hall has not given up a dime. Your right, they gave $500,000,000. Also, your boss is Pierorazio, if you think he is lying, why do you work for him? Now who lacks character, look in the mirror.

  10. Veteran teachers know how Yonkers works. You can’t give up what has been negotiated in the past for what you now have. Pierorazio is disingenuous with his proposals when City Hall has not given up a dime. At the last Audit meeting ,he stated that no teacher has been called back referring to their unwillingness to give back. Teachers gave up 2 years of raises as part of their four year contract. Has Pierorazio offered a contract with zero for this year with an offer for the following year. I doubt it. This whole budget problem will repeat itself every year. Teaching is a profession that is responsible for our children. We did not take a vow of poverty.
    Those in central office know that several teachers have already been called back and with full time kindergarten more teachers will be returned. Nothing Pierorazio states can be believed. In the long run he will need to bring back the majority of the positions and the union knows that. That has been the MO for Yonkers schools.

  11. Dear Tired Of It All
    The teachers who have maintained their employment, fell no quilt for those who have lost their livelihood. They can do this because they choose to believe that Pierorazio and Amicone are lying. The truth is, and they all know it, the city and state are having major fiscal difficulties. If the teachers continue to maintain the ideology of never giving back, then more teachers will lose their jobs, their jobs become more difficult, and the children will suffer. Ask yourselves, was it worth it. Teaching is a vocation, which is much more than an occupation. These teachers need to be taught compassion, then maybe they would become fine teachers.

  12. Every year Pierorazio gives the same lies. The first one is that we are getting 1100 new students. He says this every year and by now we should have 30,000 students. The district also loses students every year. Why doesn’t he give us accurate information. The leadership in NYC dealt with their problems but Yonkers seems to have a credibility issue. No one believes Pierorazio………yes even the teachers. We have given the city two years of zero pay raises but we are unwilling to be lied to by a superintendent that has made it his career to spin the facts. The BOE needs to open their eyes and see who the real advocates for children are in Yonkers.It’s not our leadership.

  13. Just another bullet in the heart of public education. Wait ten years and watch as any money saved now will be spent ten-fold on law enforcement, prisons and the judiciary. Meanwhile, none of those positions in our future high-tech society will have applicants capable of filling them and we will see a further trend to those that are either very rich or very poor. The middle class in this country is on the verge of extinction thanks to the short-sighted class warfare of the Republican Party and their allies and enablers like Andrew Cuomo.

  14. Andrew Cuomo is acting more Republican than the Republicans. In the long run school districts and urban centers like Yonkers will suffer.

  15. How about that Stewart-Cousins? A terrible idea hatched by the NYC UFT to circumvent property tax caps.The only good Democrat is a defeated Democrat.

Leave a Reply

This comment will be displayed anonymously. Your name and email address will not be published.

Comments that are off topic will be removed. If you want a topic to be covered, email me at:

This site uses Akismet to reduce spam. Learn how your comment data is processed.