A budget crunch in Albany could mean local school districts in the Hudson Valley will lose critical dollars that could disrupt classroom programs, educators say.

Gov. David Paterson announced Sunday he will withhold hundreds of millions in aid to school and local governments because, he says, the state is $1 billion short of its obligations due to be paid Tuesday.

"We're finding out the day before and we still don't know ? what the cost is going to be and we don't know if that cut will be a permanent cut," says Stepheny Moe, business director of the Ramapo Central School District.