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City principals might be well advised to go on spending sprees — or else pay a price for planning ahead.

For the second time in two years, the Department of Education is trying to counter budget cuts by limiting the amount of money principals can roll over from this year’s budget into next.

Typically, a program known as the “Deferred Budget Planning Initiative” allows principals to stash unused money in a rainy-day fund that they can raid in the case of unexpected expenses or midyear cuts. But this year, principals are being asked to hand over half of their unused funds to the department’s central administration.

“This year, considering the current budget climate, the Deferred Program Planning Initiative is not a prudent option as it was originally designed,” said Barbara Morgan, a DOE spokeswoman. (more…)