At this time, the fiscal year 2011 budget for the Department is uncertain and challenging. Based on our best estimates - which could shift as Albany has yet to pass its own budget - we are planning for a cut of $500 million in State education aid. In addition to this assumed State cut, the Department's nondiscretionary costs (e.g., special education mandates, pension and other compensation obligations, etc.) are expected to grow by nearly $1.2 billion in FY11 relative to FY10.
To cover a good portion of our growing expenses, the City is increasing funding to the Department by more than $800 million. At the same time, the Department is reducing non-school budgets by $130 million. However, these additional dollars and non-school savings aren’t enough to cover the combined effects of the $500 million State cut and the $1.2 billion growth in nondiscretionary costs, resulting in a reduction to school budgets of $313 million. Overall, schools will take reductions to their total budgets not to exceed 4.16%.