SUMMARY

Issue for Discussion

How do the Executive’s budget recommendations compare with Regents proposals?

Reason(s) for Consideration

For information.
         

Proposed Handling

This question will come before the Subcommittee on State Aid on February 13, 2006.

Procedural History

Issuance of the Executive’s budget recommendations each year begins the State legislative process. Understanding the Executive’s budget recommendations will help to inform Regents State Aid recommendations that will be developed over the coming months.

Background Information

Executive recommendations will be compared with Regents recommendations included in their 2006-07 State Aid to schools proposal, approved in October 2005, and in the Department’s budget recommendations, approved in September.

Recommendation

          Not applicable.

Timetable for Implementation

This discussion will inform the development of the Regents State Aid proposal to occur from February 2006 to October 2006.

HIGHLIGHTS OF THE EXECUTIVE BUDGET RECOMMENDATIONS

STATE OPERATIONS

The 2006-2007 Executive Budget recommendations reflect an agency-wide net decrease of $1.4 million in General Fund State Operations funding as follows:

• A $1.1 million General Fund increase to offset collective bargaining costs
• A $.71 million General Fund increase to offset fringe benefit costs
• A $.18 million General Fund increase for the GED (General Educational Development) testing program
• A General Fund reduction of $3.3 million due to the transfer of tenured teacher hearings costs to school districts
• A General Fund reduction of $.133 million and 37 FTE due to the transfer of funding for the Batavia Intermediate Care Facility (ICF) to the Office of Mental Retardation and Developmental Disabilities (OMRDD)

The 2006-2007 Executive Budget also recommends:

• Transferring fiscal responsibility for tenured teacher hearings costs to local school districts
• A Cultural Education Trust within the State Education Department to promote the mission of the State Archives, Library and Museum.  The Trust would develop recommendations to direct the investment of $20 million to enhance the public display of the collections and exhibits and $20 million to provide a new climate-controlled facility for collection storage.  These funds are available from the Cultural Education revenue account balance.

CAPITAL PROJECTS

The Executive Budget recommends funding for the following Capital Projects:

• $7.5 million - State School for the Deaf at Rome - Dormitory Renovations
• $2.1 million - Minor Rehabilitation Projects
• $.3 million - Cultural Education Center - Emergency Exit Design Study
• $1.7 million - Education Building Annex - Roof and Handrail Replacement
• $1.6 million - Education Building Annex - Computer Room Renovations
• $20 million - Cultural Education Facility for Collection Storage (as described above)

AID TO LOCALITIES     

          The Executive Budget recommends funding for a new Academic Achievement Awards program for school improvement ($.5 million)

          The Executive Budget recommends additional funding for the following General Funded programs:

• Science and Technology Entry Program (STEP) and Collegiate Science and Technology Entry Program (CSTEP) (an additional $9.5 million for a total of $19 million)

• Preschool Education (4410) (an additional $65.99 million for a total of $635 million)
• Private (4201) Schools for the Blind and Deaf (an additional $1.89 million for a total of $111.1 million)
• Summer School Program (4408) (an additional $48 million for a total of $237.9 million)

The Executive Budget recommends:

• Transferring funding for the Education of Native Americans to General Support for Public Schools (GSPS)
• Transferring funding for the SUNY Center for Autism to Federal IDEA funds
• Legislation to allow charter schools to finance capital facilities through the Dormitory Authority of the State of New York, increasing the existing cap on charter schools from 100 to 250, authorizing SUNY to delegate its chartering authority to not-for-profit agencies and making charter schools eligible to receive Building Aid.

The Executive Budget recommends eliminating funding for the following programs:

• National Boards for Professional Teaching Standards ($.5 million)
• New York City Peer Intervention ($.5 million)

SCHOOL AID PROPOSAL

Overview

The Executive Budget recommendation for General Support for Public Schools (GSPS) is $16.6 billion, an increase of $258.8 million or 1.6% over the current estimates of $16.3 billion for the 2005-2006 school year.  In addition, the Executive proposes a new, Sound Basic Education Reserve in which $375 million is set aside, to be allocated pursuant to a plan to promote the provision of sound basic education in schools throughout the State. Taken together, these two proposals represent overall funding of $16.9 billion, a total increase of $633.9 million or 3.9% over current funding levels.

Key Formula Provisions for 2006-2007 School Year

Flex Aid

The Executive Budget again proposes a consolidated “Flex Aid”. For the 2006-2007 School Year, Flex Aid will combine last year’s Flex Aid and the amounts added by the Legislature for a new Tier 2 Comprehensive Operating Aid and for additional Extraordinary Needs Aid, Educationally Related Support Services Aid, Limited English Proficiency Aid, Minor Maintenance and Repair Aid and Summer School Aid.  The Flex Aid apportionment will guarantee that every school district will receive the same amount it got in the previous year for the programs that are being consolidated.

2006-2007 Foundation Aid/Flex Aid Consolidation

(all figures in millions)

Tax Limitation Aid

The Executive recommends that all districts receive at least the same amount that they were apportioned in 2005-2006.  In addition, Tax Limitation Aid would be enhanced through two new tiers which will distribute additional aid to districts with low to moderate fiscal capacity and with high tax burdens, and to districts with high expenditures per pupil.  Aid is expected to increase by $47.7 million, from $135.1 million in 2005-2006 to $182.7 million, an annual growth of 35.3%.  Since 2004-2005, this apportionment has increased by $134.7 million or 280.8%.

Support for Pupils with Disabilities

Public Excess Cost Aid for pupils served in school districts and BOCES will continue to be apportioned under the current formula provisions.  Public Excess Cost Aid increases by $131.3 million from $2,397.1 million to $2,528.4 million, a growth rate of 5.5%.  Aid for children placed in private settings will be apportioned using the same formula that is employed for public placements, in order to eliminate fiscal incentives for private placements.  As a result, Private Excess Cost Aid will decrease from $218.0 million in 2005-06 to $120.1 million in 2006-2007, a drop of $97.9 million or 44.9%.

Career and Technical Education Aid

As it did for the past two years, the Executive Budget proposes that BOCES Aid be apportioned under the existing formula, but that the apportionment will be capped at the BOCES Aid that was received in 2005-2006.  BOCES Aid is estimated to be $546.4 million in 2005-2006, and would decline to $536.3 million in 2006-07, a decrease of  $10.1 million or 1.9%. 

Special Services Aid, which provides aid for career education activities and computer services to districts that are not components of BOCES, will be funded under the existing formula.  Funding will increase by $1.1 million or 0.8%, from $141.5 million in 2005-2006 to $142.6 million in 2006-2007.

Aid for Instructional Materials

The Executive Budget continues to fund the preexisting formulas for Textbook Aid, Library Materials Aid and Computer Software Aid.

Building Aid

Building Aid and Building Reorganization Incentive Aid are estimated to total $1,520.8 million for 2005-2006 and $1,597.4 million for 2006-2007.  This increase of $76.6 million represents 5.0% growth over the previous year. The Executive Budget continues Building Aid formula changes that were enacted as part of prior budgets by deferring until 2007-2008 all aid for new projects that have not fully documented their eligibility by the date upon which the database used in support of the Executive request was created. 

The Executive also proposes reforms that would reduce building cost increases for 2006-2007 and thereafter.  Specifically, the Executive Budget proposes a new, simplified method of calculating cost allowances for school building projects, and authorization for school districts to obtain advisory services from the Dormitory Authority of New York State (DASNY).  In addition, the aid calculations used for determining aid payments to the rest of the State are applied to New York City and BOCES construction projects.  This will not affect the total amount of State aid, but it will defer the initial payments of that aid for new projects.  The Executive again proposes an exemption for school districts from the WICKS Law requirements.  This recommendation was also a part of the Regents State Aid Proposal. Finally, the Executive recommends enactment of legislation to create a new Joint School Construction Board for Syracuse, in order to oversee and supervise capital improvements to city schools.

Transportation Aid

Transportation Aid for operating expenses will be calculated under the existing formula.  Transportation Aid and Summer Transportation Aid are estimated to grow from $1,209.6 million in the 2005-2006 school year to $1,299.6 million under the Executive proposal, an increase of $90.0 million or 7.4%.

Math and Science Education Initiatives

The Executive also provides several initiatives designed to help New York State produce workers with the skills necessary for tomorrow’s economy.

• A $5 million increase is proposed for the Teachers of Tomorrow program, to attract and retain math and science teachers entering the teaching profession by means of alternative certification.
• $5 million is provided for Institutes for Math/Science Teachers.  This will include $2.5 million for university-based programs to provide professional development for math and science teachers, and $2.5 million for community college programs offering summer math and science for middle school students.
• A new, $5 million program, Engineers of the Future, is funded to support pre-engineering programs at middle schools and high schools.
• An additional $9.5 million is provided in a separate funding proposal, for the expansion of the Science and Technology Entry Program and the Collegiate Science and Technology Entry Program (STEP/CSTEP).
• The Executive proposes a Science and Technology Taskforce to develop a comprehensive statewide plan to strengthen science and technology education through public/private partnerships.

Other Aid Initiatives

The Executive proposes a variety of measures designed to reward performance and efficiency.

• For the 2006-2007 school year, a new, $500,000 program of Academic Achievement Awards, funded outside of General Support for Public Schools, is recommended, to recognize schools that have demonstrated educational performance.
• Prospectively, additional State Aid will be apportioned to school districts that demonstrate improved performance.

The Executive has fully funded the $6.0 million in Academic Improvement Grants to support the Roosevelt School District.

The Executive Budget also recommends new funding of $5.8 million to provide health services in the Big Four City School Districts.

School Tax Relief (STAR)

The Executive proposes the continuation of the STAR tax exemption, and recommends a new STAR Plus tax rebate to reward homeowners in school districts that restrain their spending.  A $400 rebate will be provided directly to homeowners in those school districts that keep their budgets within a proposed school spending cap.  In addition, in 2007-2008, districts that are eligible for the STAR Plus program in 2006-2007 will receive a 2% increase in their Flex Aid allocation.

School Accountability

Reforming the School Voting Process (RSVP)

The Executive Budget will also include initiatives to increase voter participation in local school district elections by:

• Expanding access to polling places;
• Extending voting hours;
• Insuring that supervisors of voting have no vested interest in school elections;
• Requiring bond resolution votes to be conducted on the statewide budget voting day; and
• Eliminating budget re-votes and requiring districts to offer voters the opportunity to vote for spending caps.

Codes of Ethics for School Districts

The Executive will also require school districts to formulate and adopt codes of ethics, which district officials and board members must follow.

Standards for School Business Officials

The Executive Budget also established new requirements for school business officials, including:

• Increased coursework in finance and accounting;
• Completion of a school finance-related internship; and
• Ongoing professional development.