Local schools could be facing midyear cuts in state funding, if the green light is given to Gov. David Paterson’s plan to cut $5 billion from the state budget.

Paterson has said his proposed two-year, $5 billion deficit reduction plan is needed to improve New York state’s financial situation by addressing the growing budget deficit. The plan would cut $3 billion this year and $2 billion from the 2010-11 budget by curtailing state spending in a number of areas.

That includes aid to schools, where cuts were avoided last year when Paterson proposed a similar midyear cut to the state budget. The cuts would reduce about $700 million in school state aid.

State lawmakers will meet for a special meeting today to consider Paterson’s plan.

Starpoint Superintendent C. Douglas Whelan said the mid-year cuts would pose some problems for school districts. Starpoint would see a $847,157 reduction in state aid, but Whelan said the district would be able to deal with the cuts in a few ways.

First, Starpoint has some savings found in its workman’s compensation expenses, because much more had been budgeted than has been spent this year. The district also has found savings in two key ways: the cost of student transportation coming in under budget and an improved bond rating. Starpoint has a rating of AA minus, just four spots below the highest possible rating of AAA and two spots higher than the district’s previous rating of A.

If the cuts do occur, Whelan said Starpoint will look closely

at every cost, but staff probably wouldn’t be cut. Finding places to cut will be a hard task for any district, he said.

“When you have your revenue set and your operation going, then to try to come up with savings, it’ll be difficult,” Whelan said. “Schools will be hard-pressed.”

Under the governor’s plan Lockport City Schools would see a cut of $1,314,011 in state funding, which comprised a substantial part of school district’s budgets this year. At a previous board of education meeting, Superintendent Terry Ann Carbone said the district was freezing all spending until the situation plays out in Albany.

Rural school districts would face some challenges. Newfane could see a reduction in aid of about $527,243, while Barker would have to deal with a $326,565 loss in funding. Barker Superintendent Roger Klatt said if the cuts were to happen, the district would take two steps. The first move would be to use money from the budget’s fund balance.

“Then we would further curtail spending,” Klatt said.

The Royalton-Hartland School District could be looking at a $451,315 reduction in state aid, said Superintendent Kevin MacDonald. While Roy-Hart is always watching how it spends, a mid-year reduction would cause some real hardships for the district, MacDonald said. Wilson Superintendent Michael Wendt said his district was also facing financial hardship if Paterson’s cuts are approved by the Assembly and state Senate. Wilson would take a hit of $402,288 in state aid.

“It certainly poses an issue for the district,” Wendt said. “It’ll be difficult, but we will deal with it the best we can and minimize any effects on programming for students.”

The governor said in a statement that the school aid reduction would be structured based on local fiscal capacity, student need and residential tax effort. Before the proposed mid-year cuts, 2009-10 school year aid was projected to total $21.9 billion, an increase of $415 million or 1.9 percent over 2008-09. If Paterson’s cuts are approved by lawmakers, overall 2009-10 school year state aid would total $21.2 billion, a decrease of $271 million or 1.3 percent from 2008-09. When federal stimulus aid from the American Reinvestment and Recovery Act is included, state support for school districts in the 2009-10 school year would total about $22 billion, a $546 million or 2.5 percent increase compared to the prior year, according to the governor’s plan.

Contact reporter Joe Olenick at 439-9222, ext. 6241.