Principals get extra year to spend $50M

New York City principals will get an extra year to spend $50 million in money restored to their budgets after cuts, following a push by unions to give schools more time to spend down a recent influx of school funding, Education Department officials said Wednesday.

City school leaders got a sudden windfall last month when officials reversed $130 million in planned midyear budget cuts to schools that saw enrollment declines.

But administrators were told they had to spend the money quickly to meet city purchasing deadlines or risk losing it altogether. School leaders and union officials warned that the use-it-soon requirement for the funds could lead to hasty spending decisions and wasted money, Chalkbeat first reported last week.

City officials at least partially heeded those warnings Wednesday, announcing that a total of up to $50 million from school budgets can be rolled over into the next school year — giving principals additional time to decide how to spend the cash. Education Department officials say $50 million is their projection of how much will be left over in school budgets after principals spend what they need to for this school year.

“Principals deserve every bit of support that we can give them, which is why we restored over $130 million to their budgets this year and are making sure surplus funds can be used for next year’s expenses as well,” said city Schools Chancellor Meisha Porter. “Our school leaders have been through a lot this year, and we’re thrilled to be able to provide them with more flexibility to spend their resources on their school communities.”

Mark Cannizzaro, the president of the Council of School Supervisors and Administrators, proposed the idea of allowing schools to roll over some of the excess funds in response to concerns about the tight spending deadlines.

“We were thrilled to learn that schools will not be held in deficit for September, and we are further pleased to hear that at least some of the funds will be eligible for rollover into the 2021-22 school year,” Cannizzaro said.

“This will give schools an opportunity to spend these funds thoughtfully in the best interests of the students they serve. We thank Chancellor Porter for responding to our concerns,” he added.

School leaders had been lobbying city officials for months to not deny them funds for enrollment drops this year, arguing the declines would be higher because of the COVID-19 pandemic, and that they needed the extra funds to bolster academic and emotional support for families hit hardest by the pandemic.

City officials finally agreed to cancel the midyear funding cuts late last month, after news of a federal stimulus package set to funnel more than $4 billion to city schools.