School Districts Scramble After Paterson Delays State Aid ALBANY - The Mount Vernon School District has largely stopped ordering supplies and equipment for its schools. The Saugerties Central School District has warned 36 teachers that they could face layoffs. The Albany School District is switching to a cheaper food service company starting next month. On Monday, superintendents across the state - and particularly in smaller and poorer districts - were recalibrating their budgets after Gov. David A. Paterson announced that he would temporarily withhold $146 million in school aid payments due on Tuesday and an additional $436 million in property tax reimbursements due to be paid to districts later this month. Districts had already been developing plans to make cuts during the months the governor and lawmakers were sparring over budget cuts, but superintendents lamented the news that the state would defer payments in the middle of the school year. "As a result of these cuts, we've had to put a freeze on virtually everything that's being ordered for our district, everything from textbooks to equipment," said Welton Sawyer, the Mount Vernon district superintendent, adding that his district did not have adequate reserves to cover the delays. "We're going to have to look at everything from increasing class size to cutting teachers," he said. Seth Turner, the superintendent of the Saugerties School District, said, "We don't have a reserve fund to rely on." "It's very difficult, and what's particularly difficult is that these numbers keep changing," he added. For his part, the governor has argued that education has to be cut as the state faces growing future deficits, particularly since New York spends more per pupil than any other state. But the State Senate has fought making any significant spending cuts, arguing for a patchwork of temporary steps, from raiding the coffers of public authorities to refinancing the state's tobacco bonds. The sides reached a compromise earlier this month, but failed to solve the state's immediate cash shortage. Over the weekend, the governor unilaterally took the step of delaying a variety of payments agreed to in this year's budget, a move that is expected to face a legal challenge, from the Legislature, labor unions or education advocates. "Delaying payments to schools and delaying payments to agencies - these are not popular things that I'm doing," the governor acknowledged in an interview on Monday, adding that he wanted to prevent a cash crisis "that would throw the government into chaos." What remains unclear is if school districts will ever get the money being withheld. A statement released by the governor's office on Sunday said that "as sufficient revenue becomes available, the state will potentially pay the amounts that were delayed." Asked to explain what was meant by "potentially," the governor said that if the state's revenue fell short of projections in January, "then I would register those delayed payments as cuts in the budget and ask the Legislature to approve it." The governor has argued that most school districts have adequate reserves to cover the current shortfall, and he appears to be correct. But some do not, and most districts are taking steps to curb expenses as budget pressures are expected to worsen. "We will not be laying off staff," said Jeffrey P. Simons, superintendent of schools in the city of Rome, in central New York. "We put in a soft freeze; we're limiting expenses in areas that we feel would have the least impact on programs for students," he added. We're cutting back on curriculum development, we're cutting back on some expenses associated with staff overtime, we've frozen purchasing of supplies and equipment other than those absolutely necessary for an emergency. Rome faces a shortfall of roughly $500,000 from the governor's action, but has several million dollars in reserve. Cynthia Bianco, the superintendent of the Niagara Falls City School District, said she had about $1 million in reserves, and said delaying 10 percent of the school aid payment alone would cost about $640,000. "I think what's impacting the most is the uncertainty of it," she said, adding, "my biggest question is: Is this a delay or is it permanent? If we have to borrow, we're going to have to pay interest. Mayor Michael R. Bloomberg, asked about the governor's move while attending a climate conference in Copenhagen, said, "While I'm sure I'll disagree with a lot of it, you've got to give the governor credit. He's at least doing something.