Study: Using federal stimulus money to avoid school layoffs will leave budget shortfall

Study: Schools face shortfall after stimulus ends

ALBANY, N.Y. — A study shows that using federal stimulus money to avoid layoffs at schools is going to create a shortfall even more difficult for states and schools to contend with when that money runs out.

The analysis released Monday by the New York state comptroller shows that after the stimulus money ends, property taxes could increase to make up for the loss of federal money on top of annual increases in school spending.

A spokeswoman says the U.S. Education Department encouraged schools to diversify the use of stimulus money to avoid huge budget shortfalls when it runs out in 2011-12.

The temporary stimulus money was allocated to help states suffering deep drops in revenue because of the recession.

The study by Democrat Thomas DiNapoli is the first of its kind.