State lawmakers and school districts are not panicking, but they say state budget negotiations have gotten more complicated, following word of a $2.3 billion revenue shortfall.
Some think cuts in school aid and health care could be a possibility.
Watervliet superintendent Lori Caplan says if aid to her district were to be cut, she would have some tough decisions to make.
Elementary and secondary education was the topic of a joint budget hearing at the Capitol on Wednesday.
Some lawmakers say there is a concern that the $2 billion deficit could get even larger.
Assemblywoman Pat Fahy says there's no benefit to cutting education funding.
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