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N.Y. lottery winner's gain hurts his home town

Topic closed. 19 replies. Last post 5 years ago by time*treat.

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mediabrat's avatar - 18z0typ
upstate NY
United States
Member #108791
March 31, 2011
549 Posts
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Posted: May 30, 2012, 10:46 pm - IP Logged

If their numbers had been based on median income, they wouldn't have run into this problem.

Instead, it was based on total income. Let 'em squirm.

Your income will never be so high that some bureaucrap won't think s/he knows better than you what it should be spent on ... part of that being a hefty salary for themselves.

You're right, my bad.  I don't know where I got median income from.

Patriot

    cbr$'s avatar - maren
    Cordova,Al.
    United States
    Member #104482
    January 15, 2011
    4873 Posts
    Online
    Posted: May 31, 2012, 12:11 pm - IP Logged

    One Green Island, New York, resident's Lottery bonanza could be a financial nightmare for the village's tiny school system.

    John Kutey's $28.7 million share of the $319 million Mega Millions prize in 2011 may lead to a mega cut in state aid for the Green Island Union Free School District.

    At risk are the district's staffing and educational programs. Saving them may mean another double-digit jump in property taxes.

    The village has the second largest tax levy rate hike in the state this year at 12.47 percent.

    "It's the perfect storm: a small impoverished district with the big Lottery winner," Superintendent Michael Mugits said.

    The Heatly School, the district's only school, has 331 students from kindergarten through grade 12. Fifty-nine percent of the students receive free or reduced cost meals.

    Kutey was one of seven employees at the New York State Homes and Community Renewal in Albany who cashed in the winning Mega Millions ticket.

    "We'd all like to be in his spot," Mugits said of Kutey. He could not be reached for comment.

    Green Island finds itself in a different spot, facing a state aid squeeze because the state uses the aggregate income of a district's residents to calculate some forms of school aid. About 45 percent of the district's $6.8 million budget is funded by the state.

    Kutey's $28.7 million jackpot is equivalent to 68 percent of the previous $42 million annual earnings of the 2,610 residents of the seven-tenths-of-a square-mile village. Add the numbers together and the Green Island's income jumps to $70.7 million.

    The income boost makes Green Island appear on paper to have the same resources as the Capital Region's richer and larger suburban districts.

    "The odds were against this happening. When I called the state about this, I thought I had lost the call," Mugits said about the long silence that greeted his request for help on how to handle the problem.

    The state Lottery was created to fund education. In an unexpected twist the Lottery may cost Green Island a significant portion of its state aid.

    Just what will happen is not known as it appears the situation was never anticipated at either the state or local level.

    "It only just came to our attention, and we're studying it," Tom Dunn, a spokesman for the state Education Department, said last week.

    How huge a reduction in state aid Green Island faces is unknown. A lost of 10 percent would be roughly equal to the $348,080 the district lost in payment in lieu of taxes from the Green Island Power Authority after its revenue from the sale of hyrdroelectric power plummeted.

    To fill the whole in its budget, the district cut spending but was still forced to impose the 12.47 percent tax levy increase, which the voters overwhelmingly approved May 15.

    It may take action by the state Legislature to rescue the district's finances, Mugits said.

    Meanwhile, Green Island village government should escape major problems because the municipality's aid is based mostly on population, said Sean Ward, executive assistant to Mayor Ellen McNulty-Ryan.

    There may be some small impact on housing programs that rely on income, he noted.

    Thanks to mediabrat for the tip.

    congrat's to John Kutsey on his win.       Party                                             If John Kutsey is only one of seven employee of the New York State Home                                                 & Community Renewal in Alany to cash in his ticket, what about the other six?                                                                                                             Why single him out as the root of the                                                                                                               school district problem? Some body had                                                                                                           to win it why not him?Thinking of...

      mediabrat's avatar - 18z0typ
      upstate NY
      United States
      Member #108791
      March 31, 2011
      549 Posts
      Offline
      Posted: May 31, 2012, 7:49 pm - IP Logged

      congrat's to John Kutsey on his win.       Party                                             If John Kutsey is only one of seven employee of the New York State Home                                                 & Community Renewal in Alany to cash in his ticket, what about the other six?                                                                                                             Why single him out as the root of the                                                                                                               school district problem? Some body had                                                                                                           to win it why not him?Thinking of...

      The other six people live in different towns and school districts.  Therefore, they have nothing to do with this.

      Patriot

        maximumfun's avatar - Lottery-030.jpg
        Lavender Rocket

        United States
        Member #124616
        March 16, 2012
        2642 Posts
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        Posted: June 3, 2012, 2:05 pm - IP Logged

        Wouldn't it be nice for the lottery winner to simply make up the difference for the local schools during the year(s) that his win skews the public money that comes to fund the public school???

          time*treat's avatar - radar

          United States
          Member #13130
          March 30, 2005
          2171 Posts
          Offline
          Posted: June 4, 2012, 2:26 am - IP Logged

          Wouldn't it be nice for the lottery winner to simply make up the difference for the local schools during the year(s) that his win skews the public money that comes to fund the public school???

          It might be "nice" but it wouldn't be very smart. No No

          The town would only lean on him to make up every other shortfall they face. 

          Ask yourself where exactly do those funds go. It's not detailed enough to say "it goes to the school system".

          Who's pay envelopes do those "public school funds" wind up in?

          In neo-conned Amerika, bank robs you.
          Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.