How to Come up with $34 Million?

November 11, 2013 Updated Nov 5, 2013 at 6:45 PM EDT

November 11, 2013 Updated Nov 5, 2013 at 6:45 PM EDT

Buffalo, N.Y. (WKBW-TV) - Facing a budget deficit of $34 million dollars, Buffalo School Leaders are scrambling to find ways to recover.
Ideas being discussed: advertising on school busses and lowering the heat to save on utility bills.
It follows a grim picture painted by Dr. James Williams, Buffalo's superintendent.
Wednesday, he outlined two possible spending plans, one of which calls for laying off 700 school district employees.

"We're spending more money than we're taking in," Williams said following his budget presentation to board members.

"We receive 80 percent of our funding from the state," he said "And that's a problem."

It's a problem because Governor David Paterson wants to reduced aide to local schools, leaving large urban districts like Buffalo with few options that include program cuts, larger class sizes and teacher layoffs.

Here is what Williams is recommending to the board:

- Ask teachers to contribute 20 percent towards health care costs, saving $12 million.
- Petition the state to change the charter school tuition formula, saving $15 million.
- Eliminate the cosmetic surgery rider, saving $7 million.

School officials admit it will be difficult to achieve just one of these options, so Williams has devised a second proposal. He calls it a plan for a "worst-case scenario."

The second option would layoff about 777 full and part-time employees.

Among them:

- 185 teacher aides
- 200 teachers
- 300 non-mandated bus aides
- 26 white collar positions
- 5 central office administrators

Unlike suburban school districts, major city school systems like Buffalo cannot levy taxes.

Ralph Hernandez, School Board president, is planning to ask the Buffalo Common Council for additional aid this year, but with a looming $24 million deficit, members of Mayor Byron Brown's administration said a boost in aid is unlikely.

"Tonight we saw a best-case scenario and a worst-case scenario," said School Board member Catherine Nugent Panepinto.

"I think there's lots of in between there," she added.

A final spending plan must be in place by July 1.