Meeting of the Board of Regents | April 2009

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

 

 

TO:	Subcommittee on State Aid
FROM:	Johanna Duncan-Poitier
SUBJECT:	Regents State Aid Proposal—Review of State Budget
DATE:	April 15, 2009
STRATEGIC GOAL:	1, 2, 3 and 5
AUTHORIZATION(S):

 

SUMMARY

 

Issue for Discussion

 

How does the 2009-10 enacted State Budget compare with the Regents 2009-10 State Aid proposal?

 

Reason(s) for Consideration

 

Review of Policy

Proposed Handling

 

              This question will come before the Subcommittee at their April meeting.

 

Procedural History

 

The Regents approved their State Aid proposal for school year 2009-10 in December 2008 and explored cost containment and mandate relief proposals in January and February 2009.  In March, they discussed how federal stimulus funds related to their state aid proposal and the need for legislative advocacy.  The Legislature passed its Budget for 2009-10 on April 3, 2009.

 

Background Information

 

The Regents carefully crafted this year’s State Aid proposal to retain those critical funding directions necessary to continue the State’s progress toward educational adequacy, despite the State’s worsening revenue picture.   The Regents recommended that the State continue to phase in the Foundation Aid formula and to continue to increase support for universal pre-kindergarten.  In order to preserve funding for these critical priorities, the Regents recommended cost-containment strategies including mandate relief, regional transportation and expanded use of BOCES shared services.

 

This review of the 2009-10 enacted State Budget in relation to the Regents 2009-10 State Aid proposal will provide a foundation of information upon which to develop the Regents proposal for school aid for 2010-11.

 

The attached item provides highlights of the school aid portion of the 2009-10 enacted State Budget.   This is an updated version of the item that was previously sent to the Regents.

 

 

 

 

 

 

 

Attachment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2009-10 School Year Compared to the 2008-2009 School Year)

 

SCHOOL AID PROPOSAL

The 2009-10 enacted budget provides $21.8 billion in funding for General Support for Public Schools (GSPS). This represents an increase of approximately $405 million, largely the product of increases in expenditure-based aid categories. The enacted budget freezes Foundation Aid at 2008-09 levels for two years, then resumes an extended phase-in formula, with full implementation in 2013-14.  Funding is also frozen for five other aid formulas (including Universal Prekindergarten programs), and funding is reduced or eliminated for four categorical grants funded through General Support for Public Schools.  Other formula aids are continued under the current statutory authorization. 

The $1.1 billion Deficit Reduction Assessment proposed by the Executive is counteracted by a new, Deficit Reduction Assessment Offset, which is funded through the State Fiscal Stabilization Fund of the American Recovery and Reinvestment Act of 2009 (ARRA).

The enacted budget is accompanied by continuation of the Contracts for Excellence for the districts that were designated in 2008-09.  Each district that does not have all school buildings in good standing would be required to maintain support for Contract for Excellence programs.

Six formula aid categories are frozen at 2008-09 levels for the 2009-10 and 2010-11 school years.  These are comprised of five programs that schools are able to use for general operations, and one specialized aid program -- Universal Prekindergarten Grants.

(all figures in millions)

Aid Category	2008-09 Funding	2009-10 Funding
Foundation Aid	$14,875	$14,875
High Tax Aid	205	205
Education Grants	18	18
Supplemental Public Excess Cost Aid	4	4
Academic Enhancement Aid	8	8
Universal Prekindergarten Grants	375	375
Total	$15,485	$15,485

 

In addition, the following grant programs were reduced below the funding levels in current law, or eliminated:

(all figures in millions)

Aid Category	2008-09 Funding	2009-10 Funding
Full-Day K and UPK Planning Grants	$1	$0
Math and Science Initiatives	10	0
Rochester Community Schools Pilot	2	0
Teacher-Mentor Intern	10	2
Total	$  23	$   2

NOTE:    the Teacher-Mentor Intern program was supported by funds made available through ARRA.

The enacted budget caps Universal Prekindergarten funding at current levels for existing programs, although it authorizes districts that first started new programs in 2008-09 or that operated part-year programs in 2008-09 to expand their existing programs, and provides for additional funding up to the maximum grant allowable in the 2008-09 school year.  Aid is estimated to total approximately $375 million.

The provisions for apportioning both Public High Cost Excess Cost Aid and Private Excess Cost Aid remain unchanged. Public Excess High Cost Aid decreases by $8.4 million from $477.6 million to $469.2 million, a growth rate of -1.8%.  Private Excess Cost Aid will increase from $275.8 million in 2008-09 to $300.2 million in 2009-10, an increase of $24.4 million or 8.9%.

The enacted budget continues existing provisions for these aid categories. BOCES Aid is estimated to increase by $47.1 million or 7.0%, to an overall level of $715.2 million.

Special Services Aid (which provides aid to the Big Five and other districts that are not components of BOCES for career education activities, administrative computer services and academic programs) is estimated to be $202.8 million, an increase of $6.7 million, or 3.4% over 2008-09 levels.

The enacted budget continues the preexisting allocation formulas for Textbook Aid, Library Materials Aid, Computer Software Aid and Computer Hardware Aid.

Building Aid and Building Reorganization Incentive Aid are estimated to total $2,064.7 million for 2008-09 and $2,268.7 million for 2009-10.  This increase of $204.0 million represents 9.9% growth over the previous year.  

In addition, the enacted budget provides $165.0 million in State funding to pay debt service on bonds issued to provide EXCEL Grants for capital construction. Of that amount, $130.0 million is attributable to projects funded in New York City, and an additional $35.0 million is attributable to other eligible projects.  This represents an increase of $63.0 million or  61.8% over the previous year's funding of $102.0 million.

Transportation Aid will be calculated under the existing formula.  Transportation Aid and Summer Transportation Aid are estimated to grow from $1,535.5 million in the 2008-09 school year to $1,638.5 million under the enacted budget, an increase of $103.0 million or 6.7%.

The enacted budget proposes continuation of Charter School Transitional Aid, providing $18.4 million in State aid to districts that are significantly impacted by a concentration of charter schools, a decrease of $1.9 million or -9.2% below 2008-09 levels.

The enacted budget also freezes 2009-10 Charter School Basic Tuition at the 2008-09 level to correspond with the Foundation Aid freeze.

The enacted budget also continues funding of $13.8 million to provide health services in the Big Four City School Districts and a $12 million in special academic improvement grants for Roosevelt, of which $6 million is funded through ARRA.

The enacted budget also funds a number of initiatives with monies available through the recently-enacted Federal American Recovery and Reinvestment Act of 2009 (ARRA).  In general, the enacted budget appropriates half of the amount available to New York State under ARRA, and assumes that the remaining half will be appropriated in the following State Fiscal Year.  The programs funded are as follows:

Program	Appropriation
Cafeteria Equipment Grants	6,000,000
Title I Part A Grants to School Districts	454,000,000
Title I School Improvement Grants	127,000,000
Title VII Subtitle B McKinney-Vento Grants	4,500,000
Title II Part D Education Technology Grants	28,000,000
Support of Elementary and Secondary Education	1,196,600,000
4410 Reimbursement to Counties for Preschool Students with Handicapping Conditions	132,800,000
Teacher Resources and Computer Training Centers	40,000,000
Math and Science High School	1,382,000
Roosevelt Special Academic Improvement Grant	6,000,000
Teacher Mentor-Intern Program	2,000,000
Syracuse Say Yes to Education Program	350,000
IDEA	398,000,000
Funding that Benefits School Districts	2,396,632,000
State Incentive Grants (Race to the Top)	200,000,000
Teacher Incentive Fund	20,000,000
Statewide Data Systems Grant	10,000,000
Aid to Educational Television and Radio	5,587,000
Vocational Rehabilitation Grant	15,000,000
Independent Living Centers	900,000
SUNY Community Colleges	27,648,000
CUNY Community Colleges	10,752,000