Skip to main content

State Aid | October 2006

Tuesday, October 24, 2006 - 9:30am


Subcommittee on State Aid and Full Board


Jean C. Stevens



Detailed Proposal on State Aid to School Districts for 2007-08


October 24, 2006


2 and 5









Issue for Decision


Does the Board of Regents agree with the detailed proposal setting forth the proposed increase and distribution of State Aid to school districts to support the Board’s 2007-08 conceptual proposal on State Aid to school districts?


Reason(s) for Consideration


Review of Policy.

Proposed Handling


This question will come before the Subcommittee on State Aid and the Full Board at the October meeting. 


Procedural History


The development of the Regents proposal began in February 2006 with monthly discussion by the Subcommittee on State Aid.  The full Board discussed the conceptual State Aid proposal at the September meeting.  The Subcommittee Chair and SED staff met with the Department’s Education Finance Advisory Group to discuss the conceptual proposal.  The detailed proposal, including the conceptual proposal and funding recommendations, is before the Board for approval in October.


Background Information


For the fourth year, the Board of Regents will carry forward a multi-year proposal to establish a foundation aid program that adjusts for differences in school district pupil needs and regional costs.  Its goal is to close the achievement gap in a manner that is adequate, effective and efficient.


Based on data available now, the Regents propose an increase of $1.48 billion over the previous year. However, new information will become available after November 15, and this amount will likely change.  Historically, four aids in particular have experienced significant increases as schools report their expenditures: Building, Transportation, Public Excess Cost (special education) and BOCES aids.  As a result, the Regents final recommendation will likely be for approximately a $1.7 billion increase. We will provide an update in late November.  The charts that follow are based on the preliminary estimate of $1.48 billion.




VOTED:  That the Board of Regents recommend a proposal with a preliminary estimated increase of $1.48 billion in State Aid to school districts for 2007-08, with 82 percent targeted to high need school districts, as well as other details included in the attached report.


Timetable for Implementation


Once the Regents approve their detailed State Aid proposal, they will have the opportunity to advocate for its inclusion in the Executive’s budget proposal and in enactment of the Legislative budget signed into law by the Governor.  Once school funding is in place, the Department will continue to work with school districts on the most cost-effective practices to raise student achievement so that virtually all students meet State learning standards.








New York State Board of Regents

Proposal on

State Aid to School Districts



Exhibit A summarizes the increase the Regents recommend for school year 2007-08 for New York State school districts: $1.48 billion in seven general aid categories.  Of this, the Regents recommend that the Legislature and Governor appropriate a $978 million increase for a new, simplified Foundation Aid to help school districts raise student achievement and accelerate gap closing.


Exhibit B shows the share of the increase for high need school districts versus all others under the Regents proposal compared with State Aid for the current school year.  The Regents proposal would direct 82 percent of the increase to high need school districts compared with approximately 70 percent currently.  This change would ensure all school districts have the resources needed to provide all students with an opportunity to meet State learning standards.


Exhibits C and D show the distribution of the Regents proposal in the first year (2007-08) and at full implementation for need-resource categories of school districts.  For example, New York City would receive approximately 51 percent of the overall increase in 2007-08 and approximately 55 percent at full implementation.


Exhibit E shows the proposed distribution of computerized aid per pupil for school year 2007-08 compared with 2006-07 for school districts grouped by need-resource capacity category.  The four high need school district categories would have the greatest increase under the Regents proposal while average and low need school districts would experience more modest increases.


The final two pages of this detailed proposal list Regents recommendations for (1) the aids and grants to be consolidated under the proposed Foundation Aid and (2) the aids and grants to be retained as separate aid programs.










Aids and Grants to be Consolidated and Other Aids

Under the Regents Proposal

on State Aid to School Districts

for School Year 2007-08



Aids and Grants Replaced by the

Proposed Regents Foundation Formula



2006-07 Aids and Grants

Regents Proposal for 2007-08



Computerized Aids




Comprehensive Operating Aid


Computer Hardware Aid


Early Grade Class Size Reduction


Educationally Related Support Services Aid


Enrollment Adjustment Aid


Extraordinary Needs Aid


Flex Aid




Gifted and Talented Aid


Text Box:  <br />
Foundation<br />
Aid<br />




High Tax Aid


Minor Maintenance and Repair Aid


Operating Aid

Operating Growth Aid


Operating Standards Aid


Operating Reorganization Incentive Aid


Small City Aid

Sound Basic Education Aid

Summer School Aid


Supplemental Extraordinary Needs Aid


Tax Effort Aid




Tax Equalization Aid


Tax Limitation Aid




Teacher Support Aid




Transition Adjustment/Adj. Factor








Other Aids and Grants


Categorical Reading Programs




Fort Drum Aid


Improving Pupil Performance Grants


Magnet Schools Aid


Shared Services Savings Incentive




Tuition Adjustment Aid




Urban-Suburban Transfer Aid







Other Aids



Other Aids and Grants

Bilingual Education Grants


BOCES Spec Act, <8,Contract Aid

Building Aid

Building Reorganization Incentive Aid

Computer Software Aid/Textbook Aid

Bus Driver Safety Training Grants


Division for Youth Transportation

Education of OMH/OMR

Education of Homeless Youth

Employment Preparation Education Aid

Engineers of the Future

Fiscal Stabilization Grants

Full Day Kindergarten Conversion Aid

Full Day Kindergarten Planning Grants

Incarcerated Youth

Institutes of Mathematics and Science

Learning Technology Grants

Library Materials Aid

Limited English Proficiency Aid

Native American Education

Native American Building Aid

Prior Year Adjustments

Private Excess Cost Aid

Public Excess Cost Aid


Special Act Districts Aid

Special Services – Career Education

Special Services – Computer Administration

Student Health Services

Teacher Centers

Teacher-Mentor Intern

Teachers of Tomorrow Grants

Transportation Aid

Universal Pre-Kindergarten Aid