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Meeting of the Board of Regents | June 2007

Wednesday, June 13, 2007 - 11:00pm













The Honorable the Members of the Board of Regents



Theresa E. Savo   chart


2008-2009 Budget Development Process



June 13, 2007



Goals 1-6





Executive Summary

Issue for Discussion


This is the third of several steps in the 2008-2009 budget and legislative development process as follows:


  • Review the existing budget and legislative initiatives to identify those components that are unmet and determine if the unmet components should be considered in the development of the 2008-2009 proposals (March 2007);
  • Discuss the draft legislative initiatives and the conceptual goals of the Regents State Aid proposal (May 2007);
  • Evaluate the 2008-2009 budget and legislative initiatives proposed by the program offices in the Regents Standing Committees (June 2007);
  • Discuss the proposed 2008-2009 budget initiatives and the State Aid conceptual proposal with the Full Board of Regents (July 2007);
  • Act on the 2008-2009 Budget Proposal, the Regents Priority Legislative Proposal and the State Aid conceptual proposal (submitted as separate Regents items) (September 2007); and
  • Approve the final 2008-2009 State Aid proposal (October 2007).


Reason(s) for Consideration


Board direction and input are sought at each step in the process of developing the Department’s annual budget and legislative proposals.


Proposed Handling






Procedural History


          The Department budget and legislative proposals are developed over several months and involve staff from all areas of the Department. The Department budget and legislative proposals are expected to:


  • be linked to the Department’s strategic plan and the 24-month calendar;
  • achieve the outcomes established by the Regents Goals; and
  • include all program areas in the development process.


Background Information


Each year the Board of Regents is invited to review the existing initiatives and suggest changes.  The Commissioner and Deputies then meet to make adjustments to existing initiatives or to develop new initiatives for the upcoming year.  Deputy Commissioners involve the respective Regents Standing Committees in the review and evaluation of the initiatives for the upcoming year.  The draft budget and legislative proposals, reflecting any changes recommended by the Regents Standing Committees, are then reviewed with the Full Board in July and the Regents act on the final budget and legislative proposals in September.




Attached is a summary of the proposed 2008-2009 budget initiatives for your review.  You will have an opportunity to discuss and provide input on the proposed initiatives at the respective Regents Standing Committees.


Timetable for Implementation











2008-2009 Budget Development


NAME OF INITIATIVE: Comprehensive Technical Assistance Centers with Focus Improvement Teams


COST:             Year 1  -  $16M

                            Year 2  -  $16M

                            Year 3  -  $16M


Lead Deputy:  Johanna Duncan-Poitier


Other Program Areas Involved:  VESID


Aim(s) Aligned To:  Regents Goals 1 & 3 


P-16 Core Principle(s) Aligned To:  Action numbers 2, 3, 9 & 13




The Regional Network Strategy for School Improvement (RNS) currently serves as the Department’s system of support for schools and districts identified for improvement under the State’s accountability system.  The RNS is designed to accomplish the following:


  • Assist schools and districts identified by State and federal accountability systems to improve student achievement in identified areas; and
  • Build the capacity of identified districts and schools to sustain organizational performance through ongoing professional development, data driven planning and action.


The contracts for major components of the RNS will expire on June 30, 2008.  A report by a Leadership Academy IV team entitled, “The Next Generation of School Improvement” found that the lack of a designated lead for school improvement at both the State and regional level is a major concern and has resulted in duplicative and uncoordinated services to schools.  In addition, a 2005 report issued by the Education Alliance at Brown University said New York’s RNS “currently does not display the characteristics of a fully coherent system of support as the alignment is incomplete and there is incomplete evidence of shared understanding of the school improvement processes/approaches within and across levels of the system.”


The expiration in 2008 of major components of the RNS under contract, combined with the school improvement work required by Article VII presents the Commissioner and the Regents with an opportunity to redesign the network strategy.  Components of the RNS to expire include seven Regional School Support Centers (RSSCs), six Students Support Services Network centers (SSSN) and seven Regional Adult Education Network centers.  This proposal is for the creation of four regional Comprehensive Technical Assistance Centers (C-TACs) that will replace some or all of the current centers aligned with the network strategy.  The mission of these centers will be to better coordinate support and intervention in schools and districts in the assigned region.  Considerable attention will be provided to districts facing critical fiscal and/or performance issues or those with the early signs of failure.  Funding the C-TACs with State funds will provide maximum flexibility with the design of the strategy and allow the Department to address the requirements of Article VII without supplanting with federal funds.


The contract for the C-TACs will include a provision for the creation of Focus Improvement Teams composed of people with recent and proven track records of fiscal and academic reform.  In those cases in which a district is failing or the early warning signs are present, the C-TAC will direct a Focus Improvement Team to the district to assess the situation, provide needed expertise, recommend research based practices to address the immediate urgency of the situation, help implement those initiatives quickly to address and resolve the situation, and make immediate recommendations to the Commissioner and the local school administrators for long term solutions.  The focus will be on quick action, available expertise provided to the district and school, and implemented action steps that set up a district for success and improvement.  The Focus Improvement Team will also coordinate its work with the distinguished educators or other SED initiatives that may be involved depending on the extent of problems and issues at the district.




  • Report by a Leadership Academy IV team entitled, “The Next Generation of School Improvement.”
  • Report issued by the Education Alliance at Brown University examining New York’s RNS.
  • Article VII Planning & Implementation Team reports a total of 571 schools are in accountability status categorized as follows:


  • 199 SINI;
  • 144 Corrective Action;
  • 163 Restructuring; and
  • 65 SURR.


Article VII requirements will greatly increase the number of schools in accountability status over time.




This initiative will help ensure that schools and districts in need of improvement receive coordinated technical assistance and professional development.  Focus Improvement Teams will provide intensive support for schools and districts with the greatest need for intervention.  




The RFP is under development and contracts for the C-TACs must be in place by July 1, 2008.  The goal of the Focus Improvement Teams is to assist the schools and districts in addressing their needs quickly and on the spot to resolve problems and issues when they have reached a critical point or before they become out of control.  With flexibility to establish and employ the team as needed, results could be achieved very quickly.   Success will be measured through feedback from our stake holders in the district in need, including teachers, administrators, students, and parents.  Long-term success will be measured by evaluating the district to see that the trigger points that initiated the Focus Improvement Teams were addressed and resolved or that the problems did not grow into much larger concerns.










2008-2009 Budget Development


NAME OF INITIATIVE: Teachers of Tomorrow Program


COST:             Year 1 - $4 M

                            Year 2 - $5 M

                            Year 3 - $6 M


Lead Deputy:  Johanna Duncan-Poitier


Other Program Areas Involved: VESID and OCE


Aim(s) Aligned To:


P-16 Core Principle(s) Aligned To:


Strengthen Instruction.  Define, reduce and then eliminate the inequitable distribution of teaching talent and improve teacher retention.




The Teachers of Tomorrow (TOT) program has been an effective tool in the recruitment and retention of appropriately certified and highly qualified teachers in New York State.  However, more needs to be done because there is a current and projected shortage of highly qualified and appropriately certified teachers in specific subject areas and in specific urban and rural schools and districts.   In 2005-2006, high poverty middle and secondary schools had over 17 percent of core classes not taught by highly qualified teachers, due mainly to teachers without appropriate certification.  Also, according to the Second Annual Report on Teacher Supply and Demand, in 2005-2006, 5.1 percent of New York State’s full-time equivalent (FTE) teaching assignments were held by teachers with no prior teaching experience, compared to 4.8 percent in 2000-2001.  In addition, FTE vacancies for new teachers in elementary and early childhood remained at close to 3,000 in 2005-2006. 


To address these and other issues facing the present and future of teaching in New York State, we seek to expand the TOT program to:


  • Provide for the tuition reimbursement component of TOT to be available for up to 500 teaching assistants/paraprofessionals that participate in teacher preparation programs designed around the skills that teaching assistants already possess. Teacher preparation institutions will be invited to register teacher preparation programs (including on-line programs) to service this population.


Research on the labor market in New York State found that 85 percent of public school teachers accepted their first teaching positions within 40 miles of their hometowns.  This provides strong evidence of the value for communities and schools to increase their effort to “grow” their own teachers through such efforts as Future Teachers of America.

Barnett Berry, President of SE Center for Teaching Quality, in his 2004 article entitled Recruiting and Retaining “Highly Qualified Teachers” for Hard-to-Staff Schools discusses efforts made to prepare paraprofessionals as teachers. He states:


Finally, few states have supported “grow your own” programs that target paraprofessionals already working in hard-to-staff schools. However, there are several notable local efforts, including several fueled in the mid 1990s by the Wallace-Readers’ Digest Fund and its Pathways to Teaching Careers program. One program at Armstrong State University in Savannah, Georgia, used grant funds to pay tuition for paraprofessionals to become fully licensed teachers. The program included assistance to pass the state’s teacher test (PRAXIS) and yielded new teachers, 94% of whom were still teaching after 5 years.


A recent evaluation of the program revealed that Pathways produced teachers who are rated as more effective, have higher retention rates, and are more likely to teach in hard-to-staff schools than the typical beginning teacher (Clewell & Villegas, 2001). Almost by definition, paraprofessionals, a rich source of future teachers, have a deep knowledge of the students and communities they serve. They are generally long-standing residents of the community, and they are likely to remain as teachers, serving the school’s long-term improvement needs. However, they will also need to be highly qualified according to NCLB, which means having at least 2 years of college. States and districts, despite the influx of Title I and II highly qualified teacher funds, may not have the resources to fully support paraprofessionals in meeting NCLB standards, and then moving on to become fully prepared teachers (Berry, Hoke, et al., in press). Because of the very low wages they earn, paraprofessionals often have second jobs that limit their ability and the time needed to meet higher teaching standards. (page 15)


        Cost: $1,050,000.00 would provide for up to 3 courses a year for each of the 500             participants and an amendment to allow for teaching assistants/paraprofessionals to      participate.  Plus, an additional $1.7 million for substitute paraprofessionals/teaching    assistants to give release time to paraprofessionals that are in the program.


  • Increase the dollar award in the recruitment incentive component of the TOT program from $3,400 to $4,000.  Cost: $300,000 for up to 500 teachers at the new rate.


  • Allow per diem substitute teachers to participate in the tuition reimbursement component of the TOT program.  In many cases, long-term substitute teachers completing this educational program could benefit from such a financial incentive and could help meet the need in hard-to-staff schools. No cost, but will need legislative amendment to allow this group to participate in TOT.


  • Provide for the tuition reimbursement rate to be “equal to the current SUNY tuition rate.”  This will allow the tuition reimbursement rate to keep pace with any increases in the SUNY tuition rate. Cost: Increase tuition reimbursement from $700 to $1,100 per course for 2,375 participants.  Total - $950,000.



Second Annual Report on Teacher Supply and Demand, 2005-2006, at  and Adding to the Prospective Pool of Qualified Teachers: Re-Employing Retired Public Employees as Teachers in Hard-to-Staff Schools.




More appropriately certified and highly qualified teachers in core academic subjects especially in high need low-performing schools.




Some results during first year with continuing results each year thereafter.


















2008-2009 Budget Development


NAME OF INITIATIVE: Preparation of Inclusive Teachers for Grades 7-12                       


COST:             Year 1 - $400,000

                            Year 2 - $350,000

                            Year 3 - $350,000


Lead Deputy: Johanna Duncan-Poitier


Other Program Areas Involved:   EMSC


Aim(s) Aligned To:  


Aims of the 2005 Education Summit

  • Everyone will complete middle level education ready for high school
  • Everyone will graduate from high school ready for work, higher education, and citizenship


P-16 Core Principle(s) Aligned To:


P-16 Initiative

  • Improve academic outcomes for children with disabilities


Governor’s Accountability Plan Aligned To:


  • Teacher quality standards: Expand alternative teacher preparation programs




Through collaborative P-16 teams, funding will be provided for two projects in which institutions of higher education will offer alternative preparation programs to prepare inclusive (combined general/special education teachers) for grade 7-12 certification.  One project will be funded in English/social studies and another in mathematics/the sciences. Program candidates may be either career changers or recent college graduates with undergraduate degrees in English, mathematics, social studies/history, the sciences, or closely related academic areas.  Programs will be funded for up to three years to assure completion of required courses and adequate supported experience in the field.


DATA USED TO SUPPORT INITIATIVE: (From the Second Annual Report on Teacher Supply and Demand)


Possible Shortages & Surpluses


  • SHORTAGE: 19.5 percent of Special Education Teaching Certificates issued to serve 47 percent of students with disabilities in 7-12
  • SURPLUS: 80.5 percent of Special Education Teaching Certificates issued to serve 53 percent of students with disabilities in P-6


In the academic year 2005-2006, 10.3 percent of classes for students with disabilities statewide were not taught by highly qualified teachers, an increase from 9.5 percent in 2004-2005.  The highest percentages in 2005-2006 were in high-need districts such as New York City (24.6 percent), Rochester (15.2 percent), and Syracuse (15.4 percent).




Each of the 2 funded programs will prepare at least 25 teachers in the designated subject area(s).  Throughout the program, candidates will teach with transitional B certificates while completing college program requirements, receiving school-based mentoring during the first year and college-based support in the second and third years. 




Candidates will complete the full college program, obtaining a master’s degree and receiving initial or professional certification (depending on years of teaching experience), within three years.


2008-2009 Budget Development


NAME OF INITIATIVE: Planting the Seed


COST:             Year 1 - $175,000

                            Year 2 - $180,000

                            Year 3 - $185,000


Lead Deputy:  Johanna Duncan-Poitier


Other Program Areas Involved: VESID, OCE, EMSC


Aim(s) Aligned To:


  • To provide information on shortages in teaching and key professions


P-16 Core Principle(s) Aligned To:


  • 13 Priorities in the Regents Statewide Plan for Higher Education: Qualified Professionals for Every Community throughout the State





Planting the Seed is a multimedia approach that will give students a good sense of what different professions and teaching fields are all about, directly from current professionals in the field. It will tell students what academic courses are important for pursuing particular careers and identify colleges where degree programs are offered in those fields and links to financial assistance and grant programs that are available to help them with the costs of attending college.  Teachers and guidance counselors will be given resource material that will help students learn more about the teaching and professional jobs (e.g., names of regional professionals who could visit the school and talk to students directly) and how they can best guide students to prepare for college degree programs in these areas.


SED will seek foundation support for development and production costs related to this proposal. We seek State support for two professional positions and one clerical position to ensure that this program remains current over time and that staff are available to coordinate the active participation of professionals in schools throughout the State.




An Adequate Supply of Qualified Teachers. Improving the schools requires teachers who can assistall children to meet or exceed the Regents Learning Standards, including the gifted and talented, non-native speakers, pupils with disabilities, pupils of all racial/ethnic backgrounds, and pupils from socioeconomic backgrounds ranging from those eligible for free lunches to those with family incomes in the highest brackets. 


In 2002-2003, 218,000 classroom teachers worked in our public schools and BOCES.  More than 9 percent of those reporting their age are at or near retirement.  Shortages of qualified teachers exist or are projected in:



  • bilingual education
  • mathematics
  • career and technical education
  • science
  • English
  • social studies
  • languages other than English
  • special education
  • library media specialist



The following table reports the difficulty in recruitment found by districts seeking certified teachers in hard-to-fill disciplines.



Difficulty of Recruiting Certified Teachers

Subject Area

Somewhat Difficult or

Very Difficult

Foreign Language








English as a Second Language


Computer Science


Music or Art


Special Education



Research on the teacher labor market in New York State found that 85 percent of public school teachers accepted their first teaching positions within 40 miles of their hometowns.  This provides strong evidence of the value for communities and schools to increase their effort to “grow” their own teachers through such efforts like Future Teachers of America.


An Adequate Supply of Qualified Professionals.  Nationwide, six professions are among both the fastest growing occupations and those with the largest number of job openings, 2002–2012, according to the Bureau of Labor Statistics:


  • pharmacists
  • physical therapists
  • veterinarians
  • dental hygienists
  • physicians
  • mental health and substance abuse social workers


Dental hygienists, pharmacists, and physicians are professions with slower than average growth in New York over the past seven years.   The Department collaborates with school districts and colleges’ and universities’ professional programs to identify shortages of professionals, like physical therapists and occupational therapists, providing services to pupils and to provide incentives for individuals to enter programs leading to licensure.


Pharmacy.  A national survey found 5,500 vacant chain pharmacy positions in 2003; it estimated that retail pharmacies would fill one billion more prescriptions in 2006 than in 2001.  A federal report found nearly 7,000 unfilled retail pharmacist positions across the U.S. in 2000 rising from about 2,700 in 1998; it projected the number to grow.  It estimated that there are 196,000 licensed pharmacists in the U.S.; it expected the number of active pharmacists to grow by only 28,500 over the next decade, 800 fewer than the 29,300 growth over the past decade.  Nationwide, there were 33 percent fewer pharmacy school applicants in 1999 than in 1994.  In New York, the number of practicing pharmacists grew by only 1 percent between 1997 and 2004, from 18,800 to 19,000.  In 2001, the mean age of pharmacists responding to a survey was 46.  Approximately 25 percent planned to leave the workforce over the next 5 years.


Nursing.  The Bureau of Labor Statistics projects jobs for RNs to grow faster than average through 2008.  A national survey projected a need for 2.6 million full-time practicing registered nurses (RN’s) this year; however, only some 1.5 million RN’s practice full time.  A recent survey found that the number had grown by only 5.4 percent, the smallest increase since the surveys were begun.  In New York, with 238,000 RNs and 67,000 licensed practical nurses (LPNs) registered to practice in 2004, the trend is similar.  The number of registered LPNs grew by 6 percent between 1997 and 1999, then declined by 10 percent by 2004.  The number of registered RNs grew by 6.3 percent between 1997 and 2004 (to 238,000).




  • More students enrolled in teacher preparation programs.
  • More students enrolled in courses leading to a professional license shortage area.





We expect that beginning in the 2008-2009 school year, students will begin to benefit from this initiative. This is a long term initiative which will be focused on grades 5-10 with the intent of having more students in underserved communities select teaching and the professions as careers to pursue.



Until 2002, the number of new nursing and pharmacy licenses declined or stayed flat.























2008-2009 Budget Development


NAME OF INITIATIVE:         Enhanced Student Protection


COST:             Year 1 - $150,000 (Gen Fund)

                            Year 2 - $150,000 (Gen Fund)

                            Year 3 - $150,000 (Gen Fund)


COST:             Year 1 - $650,000 (Rev)

                            Year 2 - $650,000 (Rev)

                            Year 3- $650,000 (Rev)


Lead Deputy: Johanna Duncan-Poitier


Other Program Areas Involved:


Aim(s) Aligned To:


  • Every child will get a good start.
  • Every child will read by the second grade.
  • Everyone will complete middle level education ready for high school.
  • Everyone will graduate from high school ready for work, higher education, and citizenship.


P-16 Core Principle(s) Aligned To:


This initiative will help ensure that only highly qualified teachers and school employees are in the classroom and in New York State schools.




This initiative is designed to enhance the protection of New York’s school children.  In New York State, schools act “in loco parentis” with respect to children during the school day.  It is the Education Department’s obligation to ensure that only safe adults are allowed access to our children in the school setting.  This initiative will ensure that New York State leads the way in developing training, fingerprint screening, professional development, and enforcement programs designed to protect children from acts of misconduct by school employees. 


In order to accomplish the goal of increasing student protection, this initiative has two distinct components – training and professional development, and fingerprint screening and enforcement.







Training and Professional Development:  The training and professional development component is designed to reduce the risk to school children by providing guidance to both new and veteran educators on ethics, appropriate student-educator boundaries, and the educator discipline process (including Education Law 3020-a and Part 83 of the Commissioner’s Regulations).  It is estimated that the training and professional development component will come from State funds and will cost $150,000 annually.  This will support the development of training materials including a training video and supporting curriculum.  It is anticipated that this training will be incorporated into the Commissioner’s Regulations as a certification workshop requirement for new educators.  Certified educators will be able to take coursework in this topic to satisfy a portion of their professional development requirement.   


Fingerprint Screening and Enforcement: The fingerprint screening and enforcement component requires the commitment of additional resources in order to timely implement the review of criminal histories for all school employees and to promptly resolve any educator discipline issues as outlined in Part 83 of the Commissioner’s Regulations. 


Despite the dramatic increase in the number of discipline complaints brought on by the fingerprinting process and the extraordinary rise in subsequent arrests against certificate holders, the funding for the teacher discipline and fingerprinting process has not been increased since the Safe Schools Against Violence in Education (SAVE) legislation was enacted in 2000 (Ch. 180, L. 2000).  Moreover, on July 1, 2007, all of the non-public and private schools will have an opportunity to have their employees fingerprinted.  No new funding was provided for SED for this legislation.  Based upon the fact that this will add potentially 2,100 more schools, the impact on the daily operations of the Office of School Personnel Review and Accountability (OSPRA) unit will be substantial.  It is estimated that there will be 15 percent more fingerprint applications to process, review and refer for investigative and legal review.  It will also bring a similar increase in the number of subsequent arrests and certification actions. 


SED will require additional investigators and attorneys to effectively protect students from individuals who put them at risk.  Data in the following charts shows that in 2007 OSPRA anticipates:


  • Reviewing 5,000 fingerprint generated rap sheets.
  • Investigating 5,400 complaints against certificate holders and applicants for certification (from all sources).
  • Prosecuting approximately 120 cases against certificate holders and applicants for certification.
  • Issuing 4,000 subsequent arrest letters to school districts.
  • Denying 400 individuals clearance for employment.





The data also shows that over the past 5 years, in 277 cases with an adverse outcome, over 75 percent of the cases are the result of a serious sexual misconduct or inappropriate behavior.  This translates into the revocation, suspension or surrender of the certificates of 210 individuals, who have been convicted of a sex crime, engaged in lewd behavior, endangered the welfare of a child, engaged in an inappropriate relationship with a student, or viewed pornography in the classroom.


SED proposes to create a new revenue account to fund the enforcement and fingerprint screening component of this initiative.   




See the following fingerprint processing, investigative, subsequent arrest and discipline statistics.  Also following is a multi-agency comparison of staffing ratios.




This initiative is anticipated to be supported by two separate revenue streams.  The training portion will be supported by state operations funds.  The enforcement component is anticipated to be funded by a new revenue account.  The revenue account would be created with funds raised through a $16 processing fee on new fingerprint applications.  The current fee of $99 is passed directly through SED to Division of Criminal Justice Services and the FBI.  SED retains no portion of the current fee to account for fluctuations in processing.  This $16 processing fee will raise the current fee from $99 to $115.  It is anticipated that this new fee would raise approximately $650,000.


An informal survey of other New York State agencies, the New York City Department of Education (NYCDOE) and out-of-state agencies, indicate that the fee for processing fingerprints (if any) varies from $7 to $51.  In New York State processing fees vary from $16 to $36.  The NYCDOE currently charges a $16 processing fee, making the total due for a fingerprinting application $115.




This initiative will ensure that New York State leads the way in developing training, fingerprint screening, professional development, and enforcement programs designed to protect children from acts of misconduct by school employees. 












*       2002 shows an abnormally high number of complaints.  This was due to the implementation of fingerprinting

**     2007 is a projection based upon 4 month data


The data in this chart represents the number of complaints filed against certificate holders from all sources.  Certificate holders may have more than one complaint.


*       2007 is a projection based upon 4 month data


The data in this chart represents the number of certificate holders who have been arrested after they were certified and school employees who were arrested after their fingerprints were filed with SED.





*2007 is a projection based on 4 month data.


The data in this chart represents the number of Intents to Deny Clearance and Denial of Clearances issued to non-certified school employees from 2001-2007.





*2007 is a projection based upon 4 month data


The data in this chart represents the number of individuals with a criminal history per year who are referred for investigative review.







This chart represents the increase in legal prosecutions of teacher discipline cases primarily as a result of the fingerprinting legislation and heightened awareness of boundary issues.







The data in this chart represents the percentage and number of adverse outcomes (revocation, surrender or suspension) in hearings against certificate holders that were based on sex crimes, inappropriate relationships, or pornography in the classroom.  The total number of adverse outcomes from 2001-2007 is 277.






(Includes estimate of staff at SCI)











Number of Prints Processed Annually







Rap Sheet Review and Clearance Process














Number of Discipline Complaints Annually


8,000 +/-





Investigative Staff (from all offices)



~60 (est.)


5 (other titles)




(waiting for info)

~16 (est.)





(M-3 above)


(waiting for info)

~10 (est.)




Support Staff

(investigative only)


(waiting for info)

~45 (est.)




Total Staff


(waiting for info)








2008-2009 Budget Development


NAME OF INITIATIVE:  Independent Living Centers                                         


COST   :             Year 1 - $13,230,600 (base) + $5,000,000    Total:  $18,230,600          

                            Year 2 - $18,230,600 (base) + $5,000,000    Total:  $23,230,600          

                            Year 3 - $23,230,600 (base) + $5,000,000    Total:  $28,230,600


Lead Deputy:  Rebecca Cort


Other Program Areas Involved: EMSC and Higher Education


Aim(s) Aligned To:  Aim number 4


P-16 Core Principle(s) Aligned To:  Action numbers 4,5,7,11,12 &13




Expand the capacity of VESID’s statewide network of 39 Independent Living Centers (ILCs) to assist students with disabilities and their families with:


  • access to special education and related services;
  • transitions from preschool to elementary school;
  • transitions from school to adult life;
  • postsecondary education; and
  • vocational rehabilitation. 


Eleven ILCs currently administer transition projects federally funded under Individuals with Disabilities Education Act (IDEA) and are formal partners in 23 of VESID’s 60 Model Transition Programs.  Through these programs ILCs assist students and families in transition planning, self advocacy, career exploration, after school and summer employment, access to postsecondary education and vocational rehabilitation services.  This initiative will expand the statewide capacity of ILCs to deliver school to adult life transition services.


The initiative leverages a proven model of peer support and mentoring inherent to ILCs. All ILCs are staffed and governed by people with disabilities who are skilled in areas of peer counseling, mentoring, individual advocacy, information and referral, housing assistance, transportation assistance, independent living skills training, public benefits advisement, diversity training and systems advocacy. 


Increasingly, ILCs assist adults with disabilities with job readiness, access to postsecondary education, vocational rehabilitation training and related supports.  The initiative will enable ILCs to provide additional support to college students, augment college based disabled student services and expand workforce development initiatives.



Increased demand for Independent Living services at existing centers:


**   Data for 2006-2007 and 2007-2008 are projections based on average 4.42 percent increase from 2001-2002 to 2005-2006


VESIDStatePerformance Plan 2005 Baseline Data

Compliance Rate for Individual Regulatory Citations - Transition IEPs


Number of Districts in Compliance

Percent of Districts in Compliance

When the CSE met to consider transition service needs, the school district invited the student.  If the student did not attend, the district ensured that the student's preferences and interests were considered.







Under the student's present levels of performance, the IEP includes a statement of the student's needs, taking into account the student's strengths, preferences and interests, as they relate to transition from school to post-school activities.







The IEP includes appropriate measurable postsecondary goals based upon age appropriate transition assessments relating to training, education, employment and, where appropriate, independent living skills.







The IEP includes measurable annual goals consistent with the student's needs and abilities, including (if applicable) benchmarks or short-term objectives.





The IEP includes a statement of the transition service needs of the student that focuses on the student's courses of study.





The IEP indicates the recommended special education program and services to advance appropriately toward meeting the annual goals relating to transition needs.





The IEP includes needed activities to facilitate the student's movement from school to post-school activities, including: instruction, related services, community experiences, the development of employment and other post-school adult living objectives, and when appropriate, acquisition of daily living skills and functional vocational evaluation.





The IEP includes a statement of the responsibilities of the school district and, when applicable, participating agencies, for the provision of such services and activities that promote movement from school to post-school opportunities, or both.























  • Improved graduation rates for students with disabilities.
  • Increased numbers of graduating students with disabilities participating in postsecondary education and vocational training.
  • Increased numbers of New Yorkers with disabilities pursuing and securing employment.
  • Increased numbers of New Yorkers with disabilities transitioning from restrictive living environments (e.g., group residences) to community-based living, learning and earning.





SFY 08-09 SED Budget Request $5,000,000


  • SFY 2008 increase of $5 million to support distribution of $4.6 million to 39 ILCs or approximately $118,000 per ILC plus;


  • One new satellite in Ontario County funded at the base funding level of $284,000; and


  • VESID ILC central office administration at $116,000 for monitoring, quality assurance, technical assistance and fiscal administration.


SFY 9-10 SED Budget Request $5,000,000


  • Five percent cost of living increase built on the base of $18.2 million to the ILC network of 40 ILCs at a cost of approximately $910,000;


  • Three new satellite programs for established NYC ILCs targeting minority and non-English speaking communities located in Brooklyn, Bronx and Queens and base funding for a new ILC of $400,000 or $1.2 million;


  • Funding enhancements for the remaining Big 4 cities of Buffalo, Rochester, Syracuse and Yonkers along with Nassau and Suffolk County regions at $195,000 each or $1,170,000;


  • Establish new ILCs at federally funded satellite programs in Saratoga, Oswego, Chemung, Lewis and Columbia Counties along with the Franklin County Center that currently functions as a stand-alone federal ILC.  Each of these centers would be funded at $200,000 to augment their federal funding with State dollars for a total of $1.2 million;


  • Establish a new ILC in the city of Schenectady (building on the city’s current commitment to a satellite program) for $400,000; and
  • Maintain VESID’s administrative and technical support for the ILC network at $120,000.



SFY 10-11 SED Budget Request $5,000,000


  • Five percent cost of living allowance built on a base of $23.2 million to support 47  ILCs or approximately $1,160,000;


  • Further enhanced support of non-English speaking populations in major urban areas at $1.2 million;


  • Expand rural outreach based on a needs assessment of services to the remaining State 18 counties without operating centers totaling $2.5 million.  A range of outreach and program development will target the following counties:


Allegheny, Chenango, Essex, Fulton, Greene, Hamilton, Livingston, Madison, Orleans, Otsego, Schuyler, Schoharie, Seneca, Tioga, Washington, Wayne, Wyoming, Yates


  • Maintain VESID’s administrative and technical support for the ILC network at $140,000.






2008-2009 Budget Development


NAME OF INITIATIVE: Postsecondary Education and Students with Disabilities


COST:             Year 1 - $15,000,000

                            Year 2 - $30,000,000

                            Year 3 - $30,000,000                                        


Lead Deputy:  Johanna Duncan-Poitier


Other Program Areas Involved:  VESID


Aim(s) Aligned To:   Aim number 5


P-16 Core Principle(s) Aligned To:   Action numbers 2, 5 & 11




The proposal would establish a funding program to improve disability services at institutions of higher education.  The State University of New York, City University of New York, accredited independent colleges and universities and degree-granting proprietary institutions would be eligible to receive funds.   Funds provided according to this program would in no way be intended to supplant funds already being received by these institutions from any existing sources.


Support for students with disabilities cannot end at grade 12. The value of postsecondary education to individual students is self-evident. There is a positive relationship between attainment of a postsecondary degree and higher median earnings of individuals and a higher unemployment rate for individuals who do not hold a postsecondary degree.  Students with disabilities need to have the same access to this valuable resource—postsecondary education—as their non-disabled peers and to be provided appropriate support to assist in their success.


Currently, there aren’t sufficient funds available to educate all students with disabilities in our State’s colleges and universities.  The supports that individual students with disabilities need to fully access postsecondary education can be quite costly.  For example:


  • An adaptive computer system for a student with a disability can cost up to $3,000.


  • Interpreter services for a deaf student at CUNY could cost $40,000 per academic year for one student.


In addition, very few college faculty have been provided professional development to assist them in adjusting their teaching methods to incorporate the learning styles of students with disabilities.



The lack of college and university support services for students with disabilities, coupled with physical barriers to full access to campuses have denied New York’s students with disabilities the opportunity to pursue a postsecondary education at institutions of higher education of their choice.  Each year, more high school students with disabilities graduate with Regents diplomas and go on to college. In 2003-2004, 69 percent of students with disabilities who completed secondary education earned either a Regents diploma, local diploma or high school equivalency diploma. Of the students with disabilities who complete high school, 50 percent have plans to pursue postsecondary education, according to SED statistics. The number of students with disabilities graduating with baccalaureate degrees continues to increase, from 49.9 percent in 1997 to 62.9 percent in 2003. And, the number of students in higher education programs who voluntarily identify themselves as having a disability increased by 62.6 percent from 1993 to 2004.





This bill would take an important first step toward providing all students with disabilities full access to postsecondary education by providing dedicated funding to all sectors of New York’s higher education system to support the development and implementation of institutional plans for improving access, expanding programmatic activities for students with disabilities, and enhancing recruitment of students with disabilities.







                                                  2008-2009 Budget Development


NAME OF INITIATIVE: The New York Knowledge Initiative: Cultural institutions and resources for lifelong literacy, learning and workforce development        


COST:             Year 1 - $63,357,000

                            Year 2 - $63,357,000

                            Year 3 - $63,357,000


Lead Deputy:  Jeffrey Cannell


Other Program Areas Involved:  All SED program areas are impacted


Aim(s) Aligned To:  Aim numbers 1-6


P-16 Core Principle(s) Aligned To:  Action numbers 1-7, 9, 11 &12




The New York Knowledge Initiative recognizes that strong cultural institutions, and the educational programs and resources that they produce and provide, play a critical role in advancing New York State’s P-16 Education Initiative and New York State’s competitiveness in a global economy.  New York’s cultural institutions are also crucial to helping schools meet new accountability standards for raising student achievement included in the 2007-2008 adopted State budget.  The 2008-2009 New York Knowledge Initiative proposals will help to strengthen New York’s cultural institutions so they can improve student achievement, close performance gaps and give students the skills and the information they need for today’s global economy.  The New York Knowledge Initiative will also strengthen the institutions’ ability to promote innovation, workforce development, and economic growth.  Funding proposed in the New York Knowledge Initiative will help libraries, public television stations, archives, museums and historical societies in New York State to address each one of the six key aims in the P-16 Plan for Action. 


Here’s how cultural institutions play a critical role:


  • ACTION: Promote a sustainable early education program for all students. ($10 million annually)
  • Public libraries, museums, and public television stations host language and math literacy programs and provide materials for families with children from birth through age 4 – the age where the foundations of future learning success are laid.
  • Many libraries and museums host story time for young children to introduce them to books and the joy of reading.  Many low-income children don’t have books in their home or someone to read to them.
  • Public television stations train parents, caregivers, daycare providers, and others on how to use the programming on public television, along with reading aloud and simple activities, to develop children’s school readiness. Included in training is information on community supports for adults whose children may need early intervention.
  • Discovery Centers at museums across the State provide object based informal education opportunities including books and exploration activities for children with their parents and for daycare groups and home-schooled students. Innovative exhibit programs help young children learn to recognize sight words and develop an excitement about learning.
  • Research shows that children who are exposed to books and literacy skills at a very young age are reading at grade level by the third grade, and those reading at grade level by third grade will do well academically in future grades.
  • ACTION: Increase literacy and academic outcomes of school-age children and parents by expanding proven summer reading programs in libraries. ($1 million annually)


  • The Statewide Summer Reading Program is an important tool in helping schools raise graduation rates and student achievement levels. 
  • Studies show that library summer reading programs raise student learning levels. The positive impact is most evident in those communities where reading and literacy resources are less available to students and the achievement gap is most evident.  Giving young people the chance to read for fun and enjoyment over the summer builds literacy skills, helps those from less advantaged environments catch up to their more advantaged peers and fosters future success in learning and school.


  • ACTION: Improve academic outcomes for children with disabilities. ($757,000 annually)


  • The New York State Library and the New York Public Library Talking Book and Braille Libraries target services to students who are blind and physically handicapped.
  • Public libraries and museums have programs and other resources to help students with disabilities.


  • ACTION: Improve high school attendance and graduation rates. ($15 million)


  • NOVELNY – the New York Online Virtual Electronic Library – helps schools, colleges and universities achieve excellence and retain students.
  • Research shows that students with strong reading and literacy skills have better attendance rates, do well in school and graduate.
  • Effective school libraries with good quality print and electronic collections, advanced Internet access, and a certified librarian raise reading scores by 10  - 20 percent.


  • This is true regardless of at-risk factors such as family economic level and school size, district expenditures per pupil, teacher/pupil ratio, and racial/ethnic demographics.
  • NOVELNY enables every school to provide quality, state-of-the-art digital resources to students and teachers, no matter how limited community and school resources may be.
  • NOVELNY raises the quality of our school, public and college libraries without stressing local budgets. The average school library has 25 magazine subscriptions.  NOVELNY gives them 300 as well as age appropriate research resources, educational games, and e-books.
  • New York State ranks 35th out of 50 states in overall per capita expenditures for statewide database licensing.   New York spends 13 cents per capita, while New Jersey  spends 94 cents, Alabama 90 cents, Connecticut 55 cents  South Carolina 50 cents, Michigan 37 cents, Texas 26 cents and Ohio 24 cents and Illinois 23 cents.
  • NOVELNY provides what general Internet search engines like Google cannot.  Serious, quality information, full-text articles, original research, unbiased evaluations of health and other issues – all free of advertisement and vendor bias.
  • NOVELNY provides New York’s community colleges and universities with access to research and development information they cannot afford to access on their own.
  • New York State spends no State funds on statewide database licensing.  $2.5 million in temporary federal funds support the highly successful pilot demonstration of statewide database licensing for NOVELNY.  Over 5,000 libraries now participate in NOVELNY and use continues to soar.
  • Because NOVELNY is currently supported entirely by limited, temporary federal funds and receives no State support, it cannot grow to meet the information needs of New York’s schools, businesses, colleges and the public.


  • ACTION – Raise the learning standards to exceed global standards so all students graduate ready for citizenship, work and continued education. ($5 million annually)


  • Create learning standards-aligned content with teacher guides, extensive online cultural resources, and interactive flexibility to fit classroom needs using resources of the New York State Archives, Library, Museum and Public Broadcasting and cultural institutions around the State.


  • ACTION: Improve outcomes for English language learners. ($2 million annually)


  • English-as-a-Second-Language and other literacy programs in public libraries, at museums, and on television help prepare non-English speaking and low-literacy level parents to support their children’s early literacy, homework, and other school efforts.
  • Archives and other historical organizations offer web-based literacy and learning resources using historical records that are meaningful to the English language learner and his/her community. 


  • ACTION: Strengthen Museum services to support schools as they work to improve student achievement. ($30 million annually)


  • The Museum Education Act will help students complete school and prepare for work, higher education, and citizenship.
  • Participation in after-school programs at museums leads to better school-day attendance (Harvard Family Research Project) and increases the likelihood that students will graduate from high school and attend college. (New York State Museum)
  • Students participating in high-quality after school programs at museums have better grades, better peer relations and emotional adjustment, and lower incidences of drug use, violence and pregnancy. (Afterschool Learning Opportunities for America’s Families, 2000)
  • Museum-created resources used in school science programming increase student performance in both science and writing proficiency. (Valle Imperial Project in Science)
  • More students perform at the accomplished level in using evidential reasoning after participating in a Teaching Literacy Through Art program. (Guggenheim)


  • ACTION: Strengthen Library and Archives services to support lifelong learning. ($1,200,000 annually)


  • Extend public hours of the New York State Library and Archives to include Saturdays and evenings.




  • Research on impact of strong libraries, museums, and public broadcasting on early literacy skills and P-16 student performance and achievement.
  • Construction and renovation needs of public libraries and data on the current state of public library buildings in New York State.
  • Anticipated savings and benefits to taxpayers from statewide and regional collaboration and resource sharing among and on behalf of libraries.
  • Skyrocketing use of NOVELNY at over 5,000 libraries.
  • Number of adults trained and using public television resources with children.
  • Number of children in poverty who enter preschool or kindergarten with skills at par with middle class children.





  • By September 2008, New Yorkers will have 24/7 remote and onsite access to a robust continuum of high quality electronic information and content (from preschool levels to 16 and beyond) via the web and the New York Online Virtual Electronic Library that will help them achieve success as students, workers, parents and citizens.
  • The number of children who enter school with below-average preliteracy and psycho-social skills will be reduced.
  • Parents will be engaged in their children’s early learning and later school experience.
  • By September 2008, the New York State Library and Archives will be open to the public during the evening and every Saturday.
  • By September 2009, increase proven training programs for librarians and parents and caregivers on how to teach reading. By 2010, expand the number of public libraries and museums that offer robust programs of early literacy services for parent and caregivers of children from birth to 4 years of age.
  • By September 2009, a competitive grants program will be in place that will expand the availability of innovative museum programs for schools.
  • By September 2009, formula based funding for museums and historical societies will strengthen institutions across New York increasing the availability of learning tools for all New Yorkers.
  • By 2010, expand public library services to 500,000 additional English language learners, including library and museum materials in multiple languages, web-based resources including teacher guides, lesson plans and primary materials, English language classes, programs to help parents with children’s early literacy and homework, job information, and public access computers. Build on successful models in Queens, Hempstead, Glens Falls, and Westchester County. 
  • By 2010, expand number of children participating in New York Statewide Summer Reading Program to 1.5 million.



  • Results can be demonstrated by 2010. 
  • All programs must have sustained, ongoing annual funding and leadership support from the Office of Cultural Education in order for New York’s cultural institutions to continue to provide needed materials and services.

2008-2009 Budget Development


NAME OF INITIATIVE: The New York Knowledge Initiative: Ensuring the long-term survival and appropriate care of the State’s government records and cultural resources     


COST:             Year 1 - $39,750,000

                            Year 2 - $41,000,000

                            Year 3 - $41,750,000


Lead Deputy:  Jeffrey Cannell


Other Program Areas Involved:  OMS


Aim(s) Aligned To:  Aim number 6 


This is a statewide accountability initiative, focusing on four issues: (1) disaster preparedness and response services for State and local governments and cultural institutions across New York (2) developing a plan to deal with the growing problem of preserving State and local government records that are contained in electronic systems (3) permanent support for the renewal of facilities and resource sharing among libraries and (4) effective training and support for governing boards of cultural institutions for dealing with these and other issues impacting the stewardship and ongoing access to their collections.


P-16 Core Principle(s) Aligned To:   Action number 9




Institutions that hold cultural resources (records, books, artifacts, historical and scientific objects, specimens, etc.) include State and local governments, libraries, archives, museums, historical societies, botanical gardens, zoos and many other cultural organizations that are regulated or chartered by the Regents.  These organizations need help in guarding their collections against disasters; developing emergency plans, recovering from damage when disasters -- both natural and manmade -- occur;  preparing plans for identifying, maintaining, protecting and assuring access to electronic records; and providing modern and adequate facilities to protect and provide access to their collections.  This initiative will build capacity statewide to protect these valuable collections and facilities and to provide for their ongoing access by the people of New York.


Here’s how New York State must exercise its responsibility to hold governments and cultural institutions accountable for stewardship of their collections and facilities:


  • ACTION – Strengthen services, governance and infrastructure for accountability and access.


  • Increase State support for public library construction and renovation. ($30 million annually)
  • Make the gains of 2007- 2008 permanent and increase funding level to $30 million in order to address a $1.7 billion statewide need for public library construction and renovation.


  • Strengthen libraries, encourage collaboration and resource sharing and save taxpayer dollars . ($8 million annually)
  • Maintain a robust network of State-funded library systems by making the $8 million provided in 2007-2008 System Supplementary Aid permanent.


  • Develop a program to ensure the long-term management, disposition and preservation of State and local government electronic records through a full assessment of the New York’s situation and research into best practices in other states and at the federal level to identify our best options.  This initiative will develop a plan and budget to support electronic records programming to ensure that these important State resources will be preserved for the future.  (Year 1 $500,000,  Year 2 $750,000, Year 3 $1,500,000)
  • In today’s world, government records, including prison and mental health facility case files, student and educational data, geographic information systems, election data, court records and agency websites, are increasingly created and maintained in electronic systems. 
  • The records of New York’s State and local governments are at great risk because there are limited resources to identify electronic records of long-term value and no resources to develop a robust means to capture, preserve and make available the digital records that now form the backbone of government activities in the State.  


  • Minimize risk of damage or destruction from natural and manmade disasters to collections and records held by New York's governments and cultural institutions (Year 1 $500,000, Year 2 $1,500,000, Year 3 $1,500,000)
  • Compile directory of cultural materials statewide, including locations and contacts, and make that information available to SED and SEMO, as necessary. Include geospatial referencing via GIS.
  • Enable customers to rapidly access emergency and recovery services through contracts or other negotiated agreements with vendors.
  • Develop and deliver training in emergency preparedness and response for institutions and governments that hold cultural materials. Assist constituents in development of emergency plans.
  • Provide bridge grants to fund urgent needs in the immediate aftermath of an emergency. 
  • Provide secure storage for micrographic and digital masters of essential information, for repositories statewide.


  • Strengthen State support for local accountability by establishing effective training and support programs for non-profit museum, library and public television governing boards and trustees. ($750,000 annually)
  • Some 7,000 library trustees in New York State are responsible for governing 755 local libraries with more than 1,100 facilities and $1.3 billion in public and private income.
  • New York has more museums and historic societies than any other state –and the most influential public television stations in the nation. New York’s museums are among the leading art, history, and natural history institutions in the world.
  • There are no education or training programs for trustees of these cultural institutions in New York State to inform them as to their fiscal oversight and stewardship responsibilities and to provide them with the current information and tools necessary to successfully carry out this critical policy and fiscal oversight role.




  • Council of State Archivists disaster planning survey, 2005/2006.
  • New York State Historical Records Advisory Board survey, 1997.
  • Fiscal impact data on 2006 floods in New York.
  • Heritage Preservation survey, 2006.
  • Electronic records data from Council of State Archivists survey of state archives, 2005.
  • New York State records retention and disposition data on electronic records.
  • Comprehensive research libraries training needs survey of 1996.



  • Protection of New York’s cultural resources.
  • Protection of vital information resources that support the ongoing operation and document the legal, fiscal and administrative activities of local and state government in New York.
  • Potential savings of millions of dollars by averting expensive and time-consuming disaster recovery costs for damaged records and cultural materials.
  • Data sufficient to assess the status and conditions of digital information created by New York State and local government.
  • A long-term plan and resource requirements for ensuring the effective management of electronic records of New York government.
  • Creation of a core group of librarians, archivists and cultural organization staff experienced and knowledgeable in disaster prevention and response.
  • Greater sharing of knowledge and creating partnerships between cultural organizations.
  • Creation and use of web based and other new technologies to facilitate greater sharing of resources and expertise.
  • More New Yorkers, including those with disabilities, will have access to modern, accessible cultural education facilities in their communities and to the library materials services they need, regardless of where they live.
  • More New Yorkers will have access to affordable, quality library services in their local communities via collaborative regional services provided by library systems.




  • Three - five years for disaster planning and plan implementation.
  • Two years for electronic records planning [at the end of two years, we will have a plan and budget that will be the basis for requesting significant resources for implementation].
  • Increased funding will be provided to libraries within the first fiscal year.
  • Trustee training will begin in the first year and will be ongoing because of the size of the trustee population and regular turnover in membership.



2008-2009 Budget Development


NAME OF INITIATIVE: Educational and Academic Technology to Improve Performance


COST:             Year 1 - $500,000

Year 2 - $500,000

Year 3 - $500,000


Lead Deputy:




Create a new Office of Educational and Academic Technology to effectively use technology to improve performance:


  • Education must do what the business community has done: use technology to vastly improve productivity.  Technology is being applied to educational curriculum, testing processes, distance learning, professional development, and broadband communication in our educational institutions.   The University of the State of New York (USNY) spends considerable money to make this vision of a technology-rich educational environment a reality.  The goal is to identify more ways to harness those USNY resources, leverage existing technology, fill in whatever gaps exist and improve educational performance.


  • A central office within the State Education Department is needed to coordinate the ‘mapping’ of the digital capacity of USNY institutions, develop and implement a USNY Technology Policy and Plan, and coordinate federal and State funding for technology use in the field.  The Department is requesting funding for 3 positions for research and additional internal technology ($500,000).





2008-2009 Budget Development


NAME OF INITIATIVE:  Office of Innovation     


COST:             Year 1 - $170,000

                            Year 2 - $170,000

                            Year 3 - $170,000


Lead Deputy:  David Miller




Funding for an additional 2 FTEs is requested to assist the Chief of Staff/Deputy Commissioner for Innovation and to increase capacity.  One position is requested to help provide analysis and coordination of informational requests received based on the direct needs of the Commissioner, the deputies and the Department.  One position is requested to help coordinate and promote innovation projects and opportunities and to assist in bringing innovation pilot projects to larger scale.




2008-2009 Budget Development


NAME OF INITIATIVE:  Electronic Grants System      



  • $300,000 for assistance in needs assessment study, in writing RFP and helping with the post award assurance monitoring.
  • $1.5 million estimated cost for SED to use an existing electronic grants system currently being used by another State Agency.  This would be the cost to copy and operationalize an existing system.
  • $100,000 estimated yearly maintenance cost to maintain system.


Lead Deputy:  Johanna Duncan-Poitier


Other Program Areas Involved:   VESID, OP, OMS, OCE


Aim(s) Aligned To:


Transition the SED’s financial systems to web-based technology to improve efficiency and reliability.  Reduce cycle time for specific SED services.


P-16 Core Principle(s) Aligned To:


Strengthens the capacity of SED to support schools as they work to improve student achievement and the Department’s capacity to hold them accountable for doing so.




To convert current grant system from a paper system to an electronic system. The electronic system will streamline the grant process for the entire Department. The electronic system will save labor time, be a more accurate system, and improve the cash flow to districts and reduce the likelihood of lapsed State and federal funds. 




  • A study done by outside vendor KPMG.  The report from KPMG dated April 19, 2004 stated our current paper system is very time consuming and contains many steps for potential errors.
  • RFI was done to get an idea of cost for electronic grant system.  (RFI #05-002.)




Reduction in local aid cycle time resulting in enhanced fiscal support to local education agencies and other grantees which will ultimately improve the quality of programs and improve student achievement.




An E-grant system would be operational by April 1, 2009.



2008-2009 Budget Development


NAME OF INITIATIVE:  Implementation of the Student Lending, Accountability, Transparency and Enforcement (SLATE) Act


COST:             Year 1 - $800,000

                            Year 2 - $800,000

                            Year 3 - $800,000


Lead Deputy:   Johanna Duncan-Poitier




The State Education Department supports all efforts that will reduce the cost of postsecondary education for all students and help ensure the integrity of the student loan industry which exceeds $5 billion per year in New York State.


This law will directly impact 271 colleges in New York State, serving over 1.1 million students and thousands of college financial aid officers. In 2004-2005, New York colleges reported the disbursement of $4.618 billion in federal loans and $1.054 billion in nonfederal loans for a total of $5.672 billion in student loans. Also, it is our understanding that law is intended to regulate loans to students attending non-degree granting vocational schools. This will include another 450 schools serving at least 80,000 students. There is no reliable data on the loan volume in these schools. Therefore, over 700 educational institutions and their financial aid personnel will be subject to the provisions of this new law.


SLATE is an extremely comprehensive law designed to regulate a $5 billion industry which impacts hundreds of thousands of students at over 700 separate educational locations each year. The key provisions of the law:


  • Prohibits lenders from making gifts – including the practice of revenue sharing – to colleges and universities or their employees in exchange for any advantage in loan activities.
  • Bans colleges and universities from soliciting, accepting or receiving any gifts whatsoever – including those construed as part of a revenue sharing practice – from lenders in exchange for advantageous loan consideration.
  • Bars college and university employees from receiving any advantage, reimbursement or benefit from serving as a member of a lender’s advisory board.
  • Prohibits lender employees and agents from posing as college or university employees, including staffing the school’s financial aid offices with lender employees.
  • Bans lenders and schools from agreeing to certain quid-pro-quo high-risk loans that prejudice other borrowers or potential borrowers.
  • Prohibits schools from linking or directing potential borrowers to any electronic master promissory notes or other loan agreements that do not allow students to enter a lender code or name for any lender offering the relevant loan at that guarantee agency.


The Department has a significant investigative, quasi-judicial and fiduciary responsibility to implement the new law, including the following:


  • All financial aid officers are required to report to the Department any offer of a “gift” by a lender institution.


  • All financial aid officers have to submit a financial disclosure form to the Department as it relates to any financial interest with lender institutions.


  • For any violation of the provisions in SLATE, a hearing must take place and fines could be levied.


  • Any alleged violations must be investigated and appropriate evidence must be secured for use at a hearing for presentation to a hearing officer.


  • Colleges must make full disclosure to all students requesting information on a loan. Along with full disclosure will come student complaints which must be investigated and may lead to a hearing.


  • The Department must collect all fines:


  • Operate a grant program to award institutions funds (from collected fines) to initiative education programs to inform prospective borrowers; and/or


  • Repay students who paid an inflated price for a loan because of a violation of a provision within this new law.


The Department believes that all of the aforementioned activities for SED must be undertaken to ensure that this law is effectively implemented to the benefit of all students using loans to pay for their postsecondary education.  Based on SED’s experience in investigating and conducting discipline hearings relating to proprietary schools and the licensed professions and investigating and conducting hearings on moral character issues involving certified teachers, SED would need an appropriation of $800,000 to cover additional professional personnel costs.  To carry out the duties imposed by SLATE, it is estimated the department would need to hire additional attorneys, professional conduct investigators, senior professional conduct investigators, auditors and support staff.  Additionally, funding is necessary to cover non-personnel services as well as the costs associated with administering the hearings required by the bill.  The State Education Department recommends approval of this bill based on our expectation that SED will be provided with adequate funding to implement the bill.