Schools React to Paterson's Announcement to Release Aid Payments

By Karen DeWitt

Albany, NY – Schools are reacting with cautious optimism over Governor David Paterson's announcement that he intends to pay back schools and local governments the $750 million dollars in funds that he withheld in December.

Tim Kremer with the State School Boards Association, says if the governor follows through and completes the payments, it will be "good news" for schools.

"So far, they've had to use reserves in order to pay their bills," said Kremer. "This will replenish those reserves."

New York State United Teachers President Dick Ianuzzi says the schools and teachers union may still peruse their lawsuit against Paterson's actions.

"We'll be watching to see what it is he's actually committing to do," said Ianuzzi. "That will drive the decision about the lawsuit."

The governor has warned he may have to withhold payments again in March.