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ELMIRA, N.Y. -- While the Elmira City School District’s budget process this year is not quite over, it is never too early to look toward next year.

One potential problem that Elmira may face comes from a 2007 education law under former Governor Elliot Spitzer. Spitzer's "Contract for Excellence" rule required districts to spend a portion of their state money in one of six different areas, that includes class size reduction and maintaining programs and initiatives. But the district no longer receives the same amount of funding from the state.

"The issue is for years, since 2009 when our funding really has begun being cut, we have petitioned the state to essentially take these conditions off of our ability to use the resources and it hasn't gotten anywhere. What 2012-2013 looks like, we don't know," said Superintendent Joe Hochreiter.

In 2011-2012, the Elmira City School District had to allocate more than $2 million to "Contract for Excellence."