BUFFALO, N.Y. — Buffalo Public Schools and the Buffalo Teachers Federation wrapped up a second arbitration hearing Monday in their on-going dispute over City Honors.

District leaders rolled out and rested their case, after calling three witnesses, including its Chief Financial Officer.

"To establish the budgetary impact that the hiring of 16 additional staff at City Honors has on our school district," said Nate Kuzma, Buffalo Public School District legal counsel.

District leaders say the aides were needed to perform non-instructional supervisory roles, City Honors teachers are not required to do, like cafeteria and study hall duty.

To make up the more than $275,000 cost this school year, and $571,000 annually, the district looks to cut five and half positions.

"I didn't learn anything new, let's put it that way," said Phil Rumore, Buffalo Teachers Federation President.

Teachers were set to be let go in February and re-assigned to other schools, before the union was granted a temporary restraining order.

Union leaders, who presented their case last month, says the district can afford to fund the handful of positions and the aides, with millions in surplus and reserve funds.

"When you're talking about another $275,000 out of a billion dollar budget, it appears to us that they could have afforded the teacher aides and not transfer teachers out of the building," Rumore said.

Yet finance leaders say the district is operating on an annual multi-million deficit and cannot afford to fund teachers and aides long term while meeting the needs of other schools.

"There are many competing demands for a limited amount of resources and we have to be smart and strategic about how we budget in this school district," Kuzma said.

Meantime, both sides continue to try and work out a compromise on their own, despite the district having to clarify its latest proposal three times.

"I'm not so sure we can't just settle it on our own," Rumore said. "Once we get the questions answered, then we can take a look at it."

"It doesn't seem that it's heading in that direction," Kuzma said.

The arbitrator also heard from the principal of City Honors and the Associate Superintendent of Human Resources.

The union gets one last shot during a third and final arbitration hearing set for next month.