Assemblywoman Donna Lupardo (D-Endwell) sent a letter to Comptroller DiNapoli yesterday asking him to clarify what it means in practical terms if a school district experiences fiscal insolvency.

"Because the school aid formula has not been reworked in many years, fundamental inequities have persisted,” said Lupardo. “Now many school districts, including some in the Southern Tier, face fiscal uncertainly. Local officials have also expressed concern over educational insolvency because of the many challenges they face.”

In her letter to Comptroller DiNapoli, Lupardo wrote: "Last year, I became aware that New York State has no provision in statute to allow school districts to declare bankruptcy. My understanding is that we are now using the language of insolvency to describe these dire conditions. I am hoping that you can provide some clarification as to what that would mean for a school district."

At the same time, Lupardo and her colleagues are pushing legislation originally introduced last year. Lupardo is the prime co-sponsor of the “School Funding Equity Act" (A04609). The legislation addresses inequities in the computation of school aid that put upstate and rural schools at a disadvantage. The bill would enact a regional cost index and remove the artificial floor and ceiling of the combined wealth ratio (CWR) used in distributing state aid, so that aid can flow to where it is most needed. It would also calculate aid based on data collected within the last five years to help school districts experiencing fluctuations. "The bottom line is that this legislation would result in a redistribution of aid to low-wealth, high need districts, like ours in Upstate," said Lupardo.