Troy City Schools cut spending by $3.1 million by eliminating 63 jobs and agreeing not to replace 13 retirees.

A few miles away, the Bethlehem Central School District trimmed its budget by taking the seldom-traveled path of renegotiating union contracts. That move will help the suburban district save $600,000 next year after members of the teachers’ union agreed to delay cost-of-living increases by four months.

Troy and Bethlehem schools aren’t alone as officials work hard to cut spending.

School districts around the state have eliminated jobs, offered retirement incentives and in some cases asked unions to re-open contracts, as they’re forced to contend with cuts in revenue and state aid.

Despite the efforts of some districts, the cost of running New York schools continues to grow. The average district will spend 2.35 percent more in the 2009-10 school year, compared to the current one. That number is smaller than the five consecutive years of 5 to 6 percent annual increases.

Still, the soaring cost of education has prompted policymakers, taxpayers and watchdog groups to ask why education in New York costs so much….

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