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

TO: The Honorable the Members of the Board of Regents

FROM: Theresa E. Savo

COMMITTEE: Full Board

TITLE OF ITEM: 2005-2006 Development Process

DATE OF SUBMISSION: June 25, 2004

PROPOSED HANDLING: Discussion

RATIONALE FOR ITEM: The Third Step in the 2005-2006 Budget Development Process

STRATEGIC GOAL: Goals 1-6

AUTHORIZATION(S):

SUMMARY:

The 2005-2006 budget is being developed using the budget development process outlined below. The third step in the process (highlighted below) calls for the Board to:

· review the existing three-year initiatives against established initiative outcomes and evaluation criteria (March 2004);

· evaluate the 2005-2006 initiatives proposed by the program offices using the established criteria in the Regents Standing Committees (June 2004);

· discuss the proposed 2005-2006 budget initiatives with the full Board of Regents (July 2004); and

· act on the "Bluebook" 2005-2006 Budget Proposal (September 2004).

The attached materials were reviewed in the respective Standing Committee meetings at the June 2004 Board of Regents meeting:

1) A Summary of Request Over 2004-2005 Level Funding by Fund Category (Aid to Localities, State Operations, Capital).

2) A Summary of Request Over 2004-2005 Funding by Program Area including narrative details in support of proposed increases.

If you have questions, please call.

Attachments

PROPOSED

2005-2006 BUDGET INITIATIVES

June 2004

Table of Contents

DEPARTMENT SUMMARY OF REQUEST OVER LEVEL FUNDING

DEPARTMENT SUMMARY OF REQUEST OVER LEVEL FUNDING

Budget Initiatives for Consideration in 2005-2006
Summary of Request Over Level Funding

($ THOUSANDS)

EMSC

2005-2006

PROPOSED BUDGET INITIATIVES

Priority Budget Initiatives

Strengthened Accountability to Ensure Improved Student Achievement and Effective Use of School Resources

Raising student achievement in the State’s neediest school districts requires effective use of school resources. This requires the use of good information on student achievement and school resources at all levels of education.

· The education system needs to be able to track the achievement of individual students as they move through the system to determine what works and for whom.

· School personnel need adequate and predictable revenues to support educational programs.

· They need to engage in long-range planning to ensure school improvement and good financial condition.

· The public needs good information in order to ensure that districts are providing the level and type of education they desire and that desired outcomes are actually being achieved at a reasonable cost.

· The State Education Department needs good information on student achievement and school resources to direct technical assistance and monitoring efforts on school improvement, to distribute State Aid to school districts, and to oversee school district financial condition.

Each of these actions is required for school accountability. The State Education Department has developed a variety of systems over the past few decades that provide information, albeit to a limited extent, on the effective use of school resources to raise student achievement. Recent advances in technology provide the potential to improve data and data systems, thereby enhancing school accountability. These information systems need to be updated and expanded to:

· Enable individual student tracking;

· Create a unified system to manage the collection, processing, maintenance, publication and projection of all State Aid related data; and

· Provide a comprehensive review of school district financial condition in order to ensure good fiscal health in support of quality educational programs.

Updating and expanding these systems is part of streamlining school district planning and reporting. The State Education Department receives over 125 plans, applications and reports from school districts each year. Some of these are outdated and many have redundant elements. Many are focused on processes that school districts use, which tell little about the results they accomplish. In order to streamline school district planning and reporting so that it is efficient and helps school districts focus on and improve student achievement results, good information systems are needed.

This budget request seeks $9 million to:

· Build a statewide student data system;

· Create a unified State Aid Management System; and

· Create and implement a Financial Condition Indicator System.

These systems will contribute in fundamental ways to accomplishing Regents goals to:

· Have all students meet high standards for academic performance;

· Have all educational institutions meet high performance standards;

· Make education, information and cultural resources available and accessible to all people; and

· Ensure that resources under our care are used or maintained in the public interest.

Strengthened Accountability to Ensure Improved Student Achievement and Effective Use of School Resources

Build a Statewide Student Data System

Teachers, school administrators and state officials rely on data to assess the quality and outcomes of the State’s educational system at levels ranging from the individual student to the State as a whole.

A statewide data system will meet a variety of educational and accountability needs. It will:

· Radically transform the way educational data are collected, maintained and used and create greater capacity to raise the achievement of all students in New York;

· Reduce redundant data collection and facilitate reporting by integrating Department data systems; and

· Inform educational policy and provide accountability for federal, State, and local institution and program management.

System Components:

The statewide student data system consists of the following components:

· A stable, statewide unique identifier assigned to each student.

· A database of student demographic, performance and program participation data that is accessible to teachers and administrators, and also supports State and Federal reporting.

· User friendly, reports and analytical tools to help teachers and administrators use data to improve instruction.

· Support and technical assistance to school districts to help them create and use quality data.

The system will:

· Provide the data necessary to implement New York State’s System of Accountability for Student Success.

· Enhance the State’s ability to audit critical data, such as attendance, enrollment and free- and reduced-price lunch data used to allocate State aid to schools and the performance data used for school accountability purposes.

· Substantially ease the burden on local school districts by reducing redundant data collection and facilitating reporting by integrating SED data systems.

· Replace at least five separate Department data systems related to student education.

· Reduce the time between data collection and ability to access and use data by at least two months.

Requested Resources

- Annual maintenance fee for statewide student data repository software: $1.5 million

- Analytical and reporting resources to provide teachers, administrators and policy staff with useable data analyses: $700,000

- Support to districts for maintaining and using data: $1.5 million

Create a Unified State Aid Management System

The current mainframe computer system used by the State Education Department consists of over two million lines of code and a complex network of programs that have evolved over the past 20 years to accommodate State Aid formula changes introduced by new legislation each year.

Under the present system:

· Different software is used to produce related information;

· Duplicate data is maintained on multiple systems;

· Maintenance is labor intensive and overly complex;

· Access is difficult and limited to only a few;

· Modeling capacity is limited and time consuming; and

· Management does not have the tools necessary to do timely and comprehensive data analysis.

The State Aid Management System (SAMS) will address the shortcomings of the current system by providing:

· A single point of access to State Aid data;

· The means for enabling the Department to collect information from school districts across the State more effectively;

· The capability to analyze districts’ fiscal needs;

· A streamlined method for distributing State and Federal funds to school districts; and

· Modeling capability during the annual State budget process to inform and assist the Executive and the New York State Legislature as they address State education funding requirements.

Requested Resources

- $5 million annually to provide funding for this multi-year effort.

Develop and Implement a School District Financial Condition Indicator System

Typically the general public has little awareness of school district financial condition until a crisis emerges. By then the choices are often limited and can require painful expenditure cuts or tax increases. The best prevention against fiscal emergencies is regular monitoring of district financial health, and appropriate budget adjustments. Good information on school district financial condition results in good communication about cost-effective ways to sustain quality educational programs, which helps to protect the public’s investment in its schools and to gain its support for future funding.

The following chart shows how an actual school district depleted its savings (fund balance) and consistently overspent (surplus/deficit), plunging itself into fiscal stress. Careful monitoring of fiscal indicators will help a district and the State to divert such stress before it occurs.

The measurement of school district financial condition:

In order to facilitate regular monitoring of school district fiscal health, the State Education Department has begun to report on indicators of school district financial condition. The Department reported on a small number of indicators of short-run financial condition. This fostered a positive dialogue with school districts and caused the Department to turn to the Education Finance Research Consortium for additional development. Previously, the Education Finance Research Consortium, with financial assistance from NYSED, contracted with researchers to begin development of a Financial Condition Indicator System (FCIS) and to survey school districts to determine the financial stability of school districts across the State.

A viable conceptual system has been developed for SED and shared with school business officials, school board members and administrators from the big city school districts, Yonkers, Syracuse, Rochester and Buffalo. The response from school districts officials has been favorable. Many districts want the system fully developed and put in place now.

The School District Financial Condition Indicator System is planned to become a critical application at NYSED to help school districts maintain good financial standing to support quality educational programs for students. The system will provide a comprehensive analysis of a school district’s financial condition and economic environment and will be used by NYSED and school district officials for three main purposes:

· Long range financial planning tool for school district officials.

· Early warning system for State oversight of school districts to prevent financial distress.

· Public information tool concerning the management of public resources to achieve educational goals.

The goal is to fully implement the FCIS in three phases. They are as follows:

1. Further development of the system

- To pilot long-range planning and early warning tools

- For use by the Big 5 Fiscally dependent city school districts

- To develop and pilot the public information tool

2. Development of a business plan and information technology protocols for implementing the system

3. Implementing the system

– Full implementation with all NYS school districts for long range planning and early warning system

– Implementation of a public information tool.

The implementation and maintenance of the FCIS will involve designing the method of presenting the FCIS (consisting of approximately 50 indicators), designing software to implement the collection and analysis of data from over 700 school districts, and maintenance of the system.

Cost benefit

The cost of developing and implementing the FCIS will be far less than that expended by the State on school districts in fiscal stress. If the system is effective at preventing stress, it will more than pay for itself.

· The measurement of financial condition and use of such data by the public school districts and the State will help improve the fiscal health of schools and the cost-effective use of district resources.

· The system will save taxpayers considerable amounts of money by avoiding the need for special legislative assistance when districts require financial assistance.

Benefits to school districts

The system will:

· Provide financial information to assist in comprehensive planning and other reform efforts to close the student achievement gap;

· Facilitate the exchange of information to districts on “best practices” in financial and capital management that can help them increase the effective use of existing dollars.

· Identify factors associated with financial distress, which can help indicate possible corrective action the district may take in the short run and long run.

· Identify districts in financial distress because of factors outside their control. This can help make the case for additional State dollars or reform of the school aid formula such as simplification or greater equity and adequacy.

· Enhance communication within the school district management team of superintendent, school business official and school board. The system can serve as a tool to communicate the status of the school district’s financial condition including trends that may lead to fiscal stress. This will lead to corrective actions that balance student and taxpayer equity while providing sustainable educational programs.

School Board Members, Superintendent and Business Official Working collaboratively on the school district budget.

Enhanced audit capacity

Results of the indicator system can assist the State Education Department and the New State Office of the State Comptroller in auditing school districts to ensure that public resources are used in the public interest. Information from the system will enhance the identification of high-risk school districts that stand to benefit the most from an audit. The information can also be used to pinpoint specific areas of concern for individual school districts. Additional audit resources may be necessary to provide audit services to identified high-risk districts.

Requested Resources

1. Further development:

· 2005-2006: $300,000

· 2006-2007: $300,000

2. Development business plan

· 2007-2008: $750,000

· 2008-2009: $750,000

3. Implement and maintain

· 2009-2010 and thereafter: $2.0 million

(Includes $222,000 for additional audit staff)

Total Requested Resources:

- FY 2005-2006 - $9,000,000

Future Budgetary Needs

Parent Involvement Advocacy

The No Child Left Behind Act of 2001 holds schools accountable for results, gives parents greater choice and promotes teaching methods that work. The parental involvement provision in Title I stresses the importance of ongoing, meaningful communication between school and home and emphasizes the rights of parents to have information that will enable them to make well-informed decisions and share responsibility in the development of effective schools. The Department must therefore continue to strengthen and support parental involvement in all aspects of education.

A parent involvement program will enable the Department to meet the following goals:

· Provide technical assistance and support to local school districts to enable districts to implement effective parent involvement activities that support student achievement;

· Ensure that parents receive timely information, in a language they understand, on student and school improvement;

· Disseminate information on effective parent involvement strategies and programs; and

· Provide parents with the information and skills they require to effectively support and advocate on behalf of their children. Build capacity in schools to increase parental involvement in all activities designed to improve student achievement.

Funds would support work with schools on increasing parental involvement. Proposed activities to be funded include:

· Establish regional parent resource centers to provide support to schools and families to develop and implement innovative parent involvement programs. In New York City, the downstate technical assistance center would work in conjunction with the ten regional districts and the central board and serve as a resource to building level parent involvement coordinators.

· Establish a statewide information hotline for parents.

· Support provision of services by SED staff.

The expenditure of these funds will result in:

· Higher student achievement for all students,

· Increased attendance and fewer student behavioral disruptions, and

· Increased public support for quality education.

Requested Resources

· $5 million per year for three years. Ten percent would be allocated to fund direct provision of services by SED staff.

New York State Summer Institutes

For 34 years, the New York State Summer School of the Arts (NYSSSA) has served students from every area of the State who represent New York’s economic, cultural and racial diversity, identifying tomorrow’s leaders in the arts and providing them with intensive, pre-professional training and career development opportunities. Over 15,000 students have participated in this legislative initiative. The program’s success has been demonstrated by former students’ achievements with top professional companies all over the world and individual testimonials documented in yearly alumni surveys.

“Absolutely one of the most intense, thrilling, different and influential experiences of my life! One of the few times I felt that I was actually an "artist" - total immersion in theatre, with talented peers and outrageous teachers. I was more free to experiment and examine myself than at any other time in my life.” Daniel Gerson, ‘83

The Summer School of the Arts has operated on the same level of State funding ($690,000) since 1994. In that time, there have been increases in all areas of program costs, but most especially in the cost of room and board, facilities rental and transportation. These costs, which represent 2/3 of the overall expenses, have risen by 35 percent over the past ten years. On the other hand, the artistic faculties of each school, as well as the residential life staff needed to ensure the health and safety of students, have received minimal, if any, increases in compensation.

“NYSSSA influenced me in ways so deep that I don’t even have the words for how it did. I know that would not feel the way I do right now about myself and the world of dance if it weren’t for the NYSSSA School of Dance and Carolyn Adams.” Erin Cowley, ‘96

The formula for operating NYSSSA is an equal share of State Funds and Special Revenue, which is derived from student tuition. To compensate for these rising costs, it has been necessary for NYSSSA to raise the Special Revenue strand by increasing tuition approximately 10% and decreasing tuition assistance by 23%. In 1994, tuition assistance was 33%; the current spending plan calls for tuition assistance to be 10%. NYSSSA continues to ensure that the programs are still accessible to all New York State students, as per the original legislative intent. However, the current funding levels are now limiting the program’s ability to ensure diversity among both students and staff. Many families, especially middle-income ones, are being required to pay a significant amount in tuition, thus forgoing other educational opportunities.

“Their financial aid program made it happen for me!” Stefon Harris, ’88, Blue Note artist

NYSSSA BUDGET COSTS

· Room & Board, Facilities and Transportation – 66%

· Other (printing, publicity, administration) – 7%

· Auditions – 3%

· Personnel – 24%

In order to maintain the integrity of the program and to ensure the health and safety of students, an increase in funding is essential. An increase of $200,000 enables the program to:

· return tuition assistance to a level that ensures equity of access for all of New York’s students.

· provide appropriate compensation for artistic and residential life staff.

· provide funding for the rising costs of room and board, as well as transportation and facilities rental.

“Artistic Director Russell Stanger said, “You will think of your life as before NYSSSA and after NYSSSA.” He was absolutely right.” Julianne Kelly, ‘85

Resources Requested - $200,000

Mandated Needs:

Education of Native Americans

The Commissioner of Education, by law, has responsibility for overseeing the education of Native American students residing on reservations in New York State. Pursuant to Sections 4101 (1) and (2) of Article 83 of Education Law, the Commissioner contracts with school districts for the tuition, transportation and maintenance of three, State-owned, reservation school buildings in the State.

Additional funding of $11,700,000 for prior year liabilities and $3,172,000 for the 2005-2006 school year program for a total increase of $14,872,000 is requested to meet this need.

NONPUBLIC SERVICES AID

Chapter 507 of the Laws of 1974 requires that nonpublic schools be reimbursed for the actual costs they incur in providing required services to the State. These services include the administration of State testing and evaluation programs and participating in State programs for reporting basic educational data.

Additional funding is requested to meet the costs of inflation, continue expanded component re-testing of State exams, NAEP testing in nonpublic schools under NCLB, continued administration of NYSESLAT, and implementation of new attendance regulations.

SCHOOL HEALTH AND SAFETY PROGRAM

The New York State Education Department’s Office of Facilities Planning is statutorily mandated, as the New York State Code Jurisdiction on public school property, to ensure the health, safety and well-being of the 2.8 million public school students and staff. With the increasing need to repair, renovate, and replace school facilities now approaching an average age of 60 years, over 2,000 capital project building permits are processed annually. The Office also oversees programs such as Rebuild Schools to Uphold Education (RESCUE), annual fire safety inspections at over 6,000 school facilities, and assists with Project SAVE.

The Department requires an additional $400,000 annually to strengthen technical assistance, compliance monitoring and the capital building permit review process.

HIGHER EDUCATION AND THE PROFESSIONS

2005-2006

PROPOSED BUDGET INITIATIVES

Priority Budget Initiatives

Regents Goal 3:

"The public will be served by qualified, ethical professionals who remain current with best practice in their fields and reflect the diversity of New York State."

Teachers of Tomorrow

Research shows that a certified teacher is the single most important factor in improving student achievement. Yet only 9,000 of approximately 18,000 new teachers seek employment in New York State public schools each year. The Teachers of Tomorrow program:

· attracts qualified teachers to hard-to-staff schools and hard-to-staff subject areas

· recruits and prepares second career teachers and paraprofessionals through alternative teacher certification programs

· supports new teachers through first-year teacher support, thereby reducing attrition and facilitating the transition to teaching

To assist high-need school districts recruit and retain certified teachers, Teachers of Tomorrow provides:

· certification stipends and tuition reimbursement to help teachers with interim licenses and teachers in hard-to-staff schools meet certification requirements

· recruitment incentives to new teachers in teacher shortage or subject shortage areas

· summer teaching experiences to new teacher candidates

· opportunities for hard-to-staff schools to recruit national board certified teachers

Teachers of Tomorrow Helps to Recruit and Retain Teachers for High-Need Schools

In its first three years (2000-2003), the Teachers of Tomorrow program:

· Provided 39 high-need, low-performing school districts in New York State with funds to recruit 7,247 new teachers in hard-to-staff schools and subject areas.

· Assisted high-need, low-performing districts by providing them with the resources to permanently certify 4,977 existing teachers.

· Advanced 5,920 temporarily licensed teachers to provisional certification.

· Provided resources for 1,572 pre-service teachers to receive internships in urban settings (available in the Big 5 school districts - New York City, Yonkers, Buffalo, Rochester and Syracuse).

To date, 21 New York State colleges have prepared over 4,000 second career individuals for teaching positions through Teachers of Tomorrow’s alternative certification programs.

Invest in Success: Support a Program that Works!

Teachers of Tomorrow has successfully helped hard-to-staff school districts recruit, prepare, and retain qualified teachers.

New Teachers Recruited through TOT Programs:

- 2000-2001 – 1,706

- 2001-2002 – 1,596

Teachers Retained with TOT incentives

- 2000-2001 – 5,486

- 2001-2002 – 2,419

Teachers of Tomorrow will continue to help close the gap by improving the educational outcomes of our students in the lowest performing school buildings. Invest in success by expanding Teachers of Tomorrow --

Encourage Partnerships to Help Prepare and Recruit Teachers and Paraprofessionals

Through a competitive four-year grant program, expand Teachers of Tomorrow to provide funds to hard-to-staff school districts that develop partnerships to recruit, prepare, support and retrain teachers through an alternative teacher certification program. As many as 15,000 teachers could be prepared over four years (i.e., three cohorts of 5,000 teachers taking two years to complete the program). Each partnership would provide matching funds to support the program. School districts may use these funds to recruit new teacher education candidates from colleges in New York State.

Also, expand Teachers of Tomorrow to allow paraprofessionals and candidates holding a Transitional–B certificate to participate in the program.

Requested Resources
An additional $36 million, for a total of $56 million, is requested to support this program:

· 2005-2006 School Year - $36 million

· 2006-2007 School Year - $36 million

· 2007-2008 School Year - $36 million

Support New Classroom Teachers

According to the Education Trust, students taught by inexperienced teachers for multiple years have lower achievement rates than their counterparts taught by experienced teachers.

Expand Teachers of Tomorrow to encourage entry-level teacher support programs. Provide funding to districts with programs enabling veteran skillful teachers to deliver support to novice teachers.

· Reduces teacher turnover

· Improves teacher quality

· Helps raise student achievement

The end result: increased teacher retention and increased teacher effectiveness. The exodus of beginning teachers from the classroom ranges from 30% to 50% - most departing in the first three years. The problem is most critical in urban schools. Teacher retention rates among beginning teachers with support are significantly higher than those of beginning teachers without support.

Requested Resources

Based on an estimated 9,750 entry-level teachers to be served by the Entry-Level Teacher Retention program, projected costs are:

· 2005-2006 School Year - $52 million

· 2006-2007 School Year - $52 million

· 2007-2008 School Year - $52 million

Future Budgetary Needs

Regents Goal 1

“All students will meet high standards for academic performance and personal behavior and demonstrate the knowledge and skills required by a dynamic world.”

Invest in Opportunity Programs – they work!

Higher Education Opportunity Program (HEOP)

The Higher Education Opportunity Program (HEOP) provides access to and financial support for higher education to students who do not meet the regular entrance requirements and are economically disadvantaged. HEOP is one of a few proven strategies for helping to reduce youth underemployment and unemployment in the State.

Outcomes

· 28,613 HEOP students have graduated since 1969.

· Of the 1,013 HEOP graduates in 2002-2003, 68% were employed directly after graduation, enrolled in graduate or professional school, or matriculated at a senior college or another institution.

· Graduation rates for Black and Hispanic HEOP participants are consistently higher than for regularly admitted Black and Hispanic students.

Requested Resources

An additional $5.5 million for a total of $27.5 million is requested to serve 6,250 (FTE). This aid will:

· Increase academic support; and

· Increase supplemental financial assistance.

Liberty Partnerships Program

The Liberty Partnerships Program (LPP) provides at-risk students with services designed to improve their ability to graduate from high school and enter postsecondary education and the workforce. LPP helps to establish collaborative and supportive partnerships between postsecondary education institutions, public and non-public K-12 schools, parents, and other stakeholders. There are 57 Liberty Partnerships Programs serving over 14,000 students living in urban, rural and suburban communities.

Keys to Success

· Year-round programs and services that promote educational and personal excellence among at-risk youth.

· Effective teaching and learning experiences throughout the K-16 continuum.

· Professional development opportunities that facilitate innovations in academic and social intervention.

· Collaborative community activities genera-ting systemic and sustained resources for at-risk students and high-need schools.

· Parent/extended community involvement.

Outcomes

· The annual dropout rate of LPP students is under 2%; compared to the statewide rate of over 5%.

· Approximately 1,500 high school graduates in the LPP go on to postsecondary education institutions each year.

· Through relationships with partners, Liberty Partnerships Programs at the State and local levels have been able to leverage expanded resources for students and partner schools.

Requested Resources

An additional $7.25 million for a total of $18.75 million is requested to address the challenges to at-risk student achievement. The success of the program has created a backlog of students who desire to enter the program. Additional funding will provide opportunities to:

· Increase students served by 1,200.

· Reduce student/staff ratios.

· Strengthen professional development for staff and faculty.

· Expand use of technology to improve student/program performance.

Science and Technology Entry Programs: Promoting Careers in Math, Science, Technology, and Health

· The Science and Technology Entry Program (STEP) helps to increase the number of historically underrepresented and disadvantaged students prepared to enter college, and improve their participation rate in mathematics, science, technology, health-related fields and the licensed professions.

· The Collegiate Science and Technology Entry Program (CSTEP) works to increase the number of historically underrepresented students who enroll in and complete undergraduate or graduate programs leading to professional licensure or careers in mathematics, science, technology (MST), and health-related fields.

Outcomes

· In 2002-03, 96% of STEP graduates enrolled in college

· Nearly half of college-going graduates of the STEP actually pursued careers in math, science, technology, and health in 2002-03.

STEP Compared to State Averages -

Regents Diploma

STEP - 73%

State - 52%

Minority - 24%

College-Going Rate

STEP - 94%

State - 81%

Minority - 67%

· In 2002-03, 78% of college seniors in the C-STEP program graduated.

· 20% of C-STEP participants enrolled in graduate/professional school in 2002-03; 31% were employed in math, science, technology, or health-related fields.

· 44% of C-STEP students achieved a 3.0 or better G.P.A in 2002-03.

The STEP program serves over 5,500 students per year and the C-STEP program serves approximately 3,500 students annually. We can’t stop here! Proportionate representation of the New York State school population would require that an additional 3,077 minorities earn bachelor degrees in math, science, technology, and health fields. We are requesting additional funds to serve more students.

Requested Resources

An additional $2.0 million for a total of $12.0 million is requested to serve 12,100 students.

· This increase will produce 334 additional minority MST bachelor degrees annually through CSTEP and 148 additional minority students enrolling in college and majoring in MST fields annually through STEP.

Regents Goal 2

“All educational institutions will meet Regents high performance standards.”

College and University Investment Program

New York State has a tremendous resource within its higher education system which is a critical partner in meeting the State’s workforce and economic development needs as well as meeting the educational needs of its citizens. The higher education system is richly diverse, with:

· 266 colleges and universities;

· a wide variety of institutions in the public, independent and proprietary sectors serving every geographic region of the State;

· institutions focused on specific needs of different populations, including vocational education, liberal arts and sciences, graduate level study, health care and the arts;

· over 25,000 registered programs in these institutions leading to degrees or certificates;

· over one million students enrolled in the State’s colleges on an annual basis;

· over 200,000 degrees earned each year at our institutions;

· one of the highest college-going rates in the nation (second only to Massachusetts);

· the nation’s largest, need-based grant aid program for students which helps keep our college-going rates high; and

· a statewide graduation rate for undergraduates that is at or above national rates.

The College/University Investment Program builds upon the strength and diversity of New York’s system of higher education to help meet additional workforce, economic and societal needs. This program will provide grants to institutions of higher education to:

· assist hard-to-staff schools train, recruit, and retain teachers prepared to teach all children to Regents learning standards;

· increase collaboration between liberal arts faculty and schools of education faculty to improve teacher preparation at the master’s degree level;

· initiate Summer Training Institutes to help college faculty use information technology to improving teaching and learning;

· support Summer Training Institutes that pair community college faculty with four-year college faculty to help enrich freshman survey courses at community colleges;

· create partnerships between colleges and low-performing school districts to ensure that teacher preparation meets the needs of the students they are being prepared to serve and to enhance professional development activities for all teachers;

· continue to explore the most effective educational strategies for preparing second career individuals to meet the needs of our school districts through alternative certification processes;

· provide scholarships for students willing to teach in hard-to-staff subject areas and hard-to-staff schools;

· develop a closer link between the higher education system in New York and the global scientific community by providing fellowships for international doctoral and post-doctoral candidates in the sciences; and

· support exchange programs for students in small liberal arts and sciences colleges to enrich their studies in related fields.

Resources Requested:

· $12 million for five years.

Statutorily Mandated Needs:

Aid to Independent Colleges and Universities

The annual entitlement for each institution is based on the number of earned degrees conferred the previous year.

The current rates are $600 per associate degree, $1,500 per baccalaureate degree, $950 per master’s degree, and $4,550 per doctoral degree. Since 1990-1991, the program has not been fully funded. In 2003-2004, the State Budget provided $44,250,000 or 33% of full funding.

Of the 142 independent degree-granting institutions in New York State, 101 participate and receive Bundy Aid.

An additional $3 million for a total of $47.25 million is requested for this program.

Regents Goal 3

“The public will be served by qualified, ethical professionals who remain current with best practice in their fields and reflect the diversity of New York State.”

Ensuring Excellence and Opportunity: Teacher Opportunity Corps

The Teacher Opportunity Corps (TOC):

· enhances the preparation of teachers and prospective teachers by helping them address the learning needs of students at- risk.

· encourages historically underrepresented and economically disadvantaged individuals to enter teaching.

Strategies for Success

The TOC emphasizes high performance - study, graduation and certification in teaching careers.

· TOC’s specialized curriculum and supplemental field placements at low-performing schools help participants address the needs of students at risk.

· TOC provides support services including counseling, academic advisement, research experiences and preparation for certification examinations designed to maximize participants’ success.

· Support is provided to TOC participants in their critical first year of teaching.

Benefits and Outcomes

· Most projects have reported a 95% teacher retention rate after 5 years.

· A more diverse teaching pool which reflects the enrollees in New York State.

· Novice teachers gain successful classroom management/survival skills, which help them meet the needs of students at-risk.

· Successful collaborations with schools/districts serving students at-risk.

· In 2002-03, 110 TOC participants graduated; 83 applied for certification; 95 first-year teachers received support; and 42 graduates continued their studies in graduate school.

Requested Resources

An additional $2.75 million for a total of $3.5 million is requested to serve 1,900 enrollees at an average cost of $1,842 per enrollee. Resources will be used to:

· Increase TOC by 1,493 enrollees at $1,842 per enrollee.

· This funding would increase the numbers of bachelor's and master's degrees granted to historically underrepresented and economically disadvantaged teachers entering and being retained in teaching annually through TOC.

Statutorily Mandated Needs:

Fiscal Responsibility for Fees Associated with Tenured Teacher Disciplinary Hearings

Chapter 691 of the Laws of 1994 requires the New York State Education Department to compensate hearing officers and stenographers for their customary fees and other reasonable expenses incurred in the performance of their duties. The cost of disciplinary cases filed each year has grown significantly.

An increase of $1,200,000 for a total of $2,500,000 is requested for case expenditures.

Year Cases Filed Cost

1998-1999 173 $ 1,108,800

1999-2000 229 $ 1,360,800

2000-2001 241 $ 1,490,350

2001-2002 217 $1,696,820

Fingerprinting Teacher Certification Applicants

Chapter 181 of the Laws of 2000 requires fingerprinting of prospective employees of school districts, charter schools and Boards of Cooperative Educational Services and applicants for teacher and administrator certification. A General Fund appropriation increase of $650,000 for a total of $1,650,000 is required to meet the Department’s responsibilities under the statute including the cost of developing and maintaining databases, processing fingerprint cards and evaluating criminal records.

Priority Budget Initiatives

The Nursing Faculty Scholarship Program

Recent surveys of New York State nursing programs reveal that in 2002, 1 out of every 10 programs turned away qualified nursing applicants because of lack of qualified faculty. As interested individuals consider nursing as a profession, it is important that there be enough qualified faculty to prepare new nurses. Increased support for educational opportunities for nurses and nursing faculty is needed.

Based upon the State Education Department’s nursing survey, approximately 165,640 RNs are working in the State. There has been virtually no growth in the State nursing workforce from 1996 to 2002.

· The average RN today is 47 years old, a figure that reflects a substantial aging of this workforce over time. The average age of nursing faculty in higher education is 53.

· The demand-supply gap in New York is estimated to be over 30,000 nurses by 2007.

· About 23% (close to 40,000 RNs) of the current New York workforce and 31 percent of nursing faculty in higher education will be leaving the profession in the next 5 years. Since it takes many years of education and experience to earn credentials to serve in nursing education settings, the loss of considerable numbers of nurse educators is a cause for great concern.

Retention Outlook for Nursing Faculty in Higher Education

· 69% staying for a least 5 years

· 31% leaving within 5 years

Strategies for recruiting future nurses are dependent upon having faculty to provide instruction to new students. At a time when there is a tremendous emphasis on getting students interested in pursuing the nursing profession, there are not enough nursing instructors to teach those programs.

The Nursing Faculty Scholarship Program seeks to provide 100 awards of $15,000 annually for 3 to 5 years to students seeking a master’s degree in nursing or doctoral study who:

· are residents of New York State

· demonstrate academic merit

· have previous nursing experience

· meet certain admission criteria

Award recipients must agree to work in an area of nursing education in New York State upon completion of their degree. During the second year of the award, 100 additional scholarships would be granted for a total of 200 awards.

Scholarship funding is needed to cover education expenses, including tuition, laboratory and other fees, room and board, transportation, supplies, health insurance, books, child care and costs to support daily living.

Future Budgetary Needs

Regents Goal 4

“Education, information, and cultural resources will be available and accessible to all people.”

A multi-phased technology initiative will integrate licensing services in the Office of the Professions. Customers—licensed professionals, consumers, employers, applicants, associations and others—will be able to access comprehensive print, phone, and Web-based services. Building on existing process improvements, the system will help to maximize efficiencies and enhance staff-assisted and self-service contacts.

Services:

· Apply for—and renew—professional licenses/permits online

· Pay fees electronically

· Securely access application and licensure records using a PIN number

· Expanded access to consumer information on the professions

· Up-to-date practice information for licensed professionals

Advantages:

· Efficient, integrated, and accessible services

· Faster licensure and discipline actions

· Enhanced e-options for customers

· Paper reduction: paperless transactions, e-file reviews, and document management

· Improved searches of professional disciplinary actions and e-filing of misconduct complaints

These advantages, coupled with our traditional services, enhance public protection. This is why the Office of Technology ranks this initiative among its Top 75 Priority Service Transactions in New York State.

Requested Resources

· No additional funds or appropriation authority are requested.

Regents Goal 3

“The public will be served by qualified, ethical professionals who remain current with best practice in their fields and reflect the diversity of New York State.”

Protecting the Public from Unlicensed Practice of the Professions

Imagine you are conferring with a health care professional.

Imagine you are stuck in a traffic jam, backed up on a bridge.

Imagine you are meeting with a CPA to assess the details of your spouse's small business.

Now imagine if that medical professional was a fraud…or if that bridge's construction did not incorporate the principles applied by design professionals…or if that "CPA" managed the financial health of your family without having the education or experience to do so. When non-licensees provide services restricted to licensees, people get hurt.

A 2003 law gives the Department new authority to civilly prosecute cases of illegal practice in the 44 licensed health, design, and business professions. This complements the Attorney General's continuing responsibility for the criminal prosecution of illegal practice, which in practice is limited to the most severe cases.

Illegal Practitioners Are Everywhere

Unlicensed practitioners are a clear threat to health and safety. Many operate underground, and these "backroom practitioners" are highly mobile. Many do not speak English, and often they victimize the most vulnerable New Yorkers, including recent immigrants and those who are poor or infirm. The victims may not realize the need for licensure, or they may recognize the illegal practitioner as someone from the community who offers a service they need but can't otherwise afford or do not know how to access. There are sophisticated illegal practitioners as well, including licensed professionals (and revoked licensees) who knowingly extend their practices beyond bounds.

For civil prosecution of these dangerous practitioners, the Department's Office of the Professions (OP) will need to establish an entirely new operation with specialized staff to support and manage civil prosecutions: undercover investigators, translators, and hearing officers, among others.

The New Process

The law sets a lengthy, multistage process:

NEW - If an investigation substantiates a complaint, the Office will pursue a formal cease and desist order.

NEW - OP must establish a hearing process for contested cases, since alleged violators will have a right to a hearing, with two additional opportunities to appeal.

NEW - Cases that proceed to hearings will require hearing officers, either employed by or contracted for and paid by the Department.

NEW - To ensure the effectiveness of cease and desist orders, OP will need a new system to monitor compliance.

NEW - Along with monitoring compliance, OP will need to track actions and collect fines (up to $5,000 per violation) and restitution. This includes going to court to enforce cease and desist orders, restitution, and civil penalties.

Demand, Resources, & Support

We anticipate the number of illegal practice complaints will at least double from the current 600, and the law will likely yield at least 100 hearing cases annually. The expectation in the field is that OP's pursuit of illegal practice will be as aggressive as its pursuit of misconduct by licensed professionals.

Each allegation will have to be investigated, and existing staff members cannot meet this new demand. The redeployment of existing staff would only compromise OP's ability to act against professional misconduct. Likewise, new and different skills are needed to handle the civil prosecution process.

COMPLAINTS OF PROFESSIONAL MISCONDUCT AND UNLICENSED PRACTICE RECEIVED ANNUALLY

(Projection: Almost a 40% increase from ’98 – ’03 average)

1998 5,998

1999 6,842

2000 8,252

2001 7,490

2002 7,616

2003 7,134

2007 * 10,000

* Minimum projection, based on implementing the new mental health therapy professions and the civil prosecution of illegal practice.

Two million dollars will be needed to implement the law. That includes funding for new staff members (coordinator, investigators, attorneys, legal assistants, etc.) and undercover investigators, expert consultants, travel, stenographic transcripts, equipment and more.

The field overwhelmingly supports OP's request for additional resources. Given its new authority, OP wants to send a clear message that unlicensed practice is dangerous and won't be tolerated.

Requested Resources

- $2 million in additional annual spending authority. Revenue to be generated by a dedicated surcharge.

CULTURAL EDUCATION

2005-2006

PROPOSED BUDGET INITIATIVES

Priority Budget Initiatives

Regents Goal 4

“Education, information and cultural resources will be available and accessible to all people.”

New Century Libraries: Investing in 21st Century Libraries

The New Century Libraries initiative will help New York State achieve higher learning standards, address the problems of urban/high-needs areas, and develop a skilled and productive workforce. It will provide New Yorkers with equitable access to the quality library services they need now and in the future.

NOVEL: A Critical Resource for New Yorkers in the Information Age

NOVEL (New York Online Virtual Electronic Library) is an integral part of this initiative and a critical resource for New Yorkers. It is New York’s first statewide virtual library, or “library without walls.” By March 2004, 4,792 libraries were actively using the pilot NOVEL databases program, which is supported by temporary Federal funds. Use of NOVEL databases has soared 3500 percent. However, libraries need ongoing support for updated technology and staff training to meet increasing public demand for access to NOVEL in the library, from home, school, or work.

NOVEL cannot continue to depend solely on temporary Federal funding. Without sustained State funding, some NOVEL databases may be lost as soon as late 2005.

NOVEL is a smart investment. Through NOVEL, libraries are able to provide the high-quality, reliable sources of electronic information that New Yorkers need at tremendous cost savings to their communities and libraries. For example, online databases purchased through NOVEL could cost localities 30 times as much to purchase on their own. If NOVEL were funded at the requested level, savings to local libraries would exceed $150 million.

Requested Resources for FY 2005-2006: $107 million

· $14 million for NOVEL (aid to localities)

· $20 million for Library Construction Grants (capital)

· $73 million for additional resources requested in the New Century Libraries initiative (aid to localities)

Public Library Construction Grants: Investing in a Community Resource

New Century Libraries proposes that in 2005–06 the State invest $20 million in public library construction to renovate and upgrade public library facilities, enabling them to be accessible to New Yorkers with disabilities and accommodate new computer and Internet technologies. Particularly in disadvantaged areas, libraries are centers of community life that promote information literacy and afford opportunities for lifelong learning.

Additional Aid to Localities for 21st Century Library Service:

$10 million to help more libraries move to the public library district model
$18 million to strengthen and support school libraries
$10.2 million to increase library hours for urban neighborhoods and fund programs to help new Americans
$16 million to ensure a minimum level of $20 per capita in support for public libraries and a program of incentives to achieve excellence
$1 million to strengthen library literacy and reading programs for adults and families
$2 million to recruit a new generation of skilled librarians
$15.1 million to increase access to the resources of the State’s academic, special, and research libraries for all New York’s students and faculty
$.7 million to strengthen library services for individuals with disabilities.

Future Budgetary Needs

Regents Goal 4

"Education, information and cultural resources will be available and accessible to all people."

Public Television in the Digital Age

Requested Resources

Digital Transition $25 million

Total $25 million

Digital Transition

Phase I (completed): By May 2003 public television stations were required to broadcast a digital signal.

Phase II: By May 2006 public television stations must be fully operational in digital and must relinquish their analog signals.

Empire Central

The public broadcasting stations are committed to establishing the Empire Channel, a totally dedicated education channel with interactivity and on-demand programming. Professional development for educators, with downloadable material, programming for parents and programming targeted to the disability community would be part.

Benefits

· fulfills required FCC mandates for digital conversion

· insures access of public television to all New Yorkers

· establishes a statewide education channel

· maintains local control and content of public television

· provides operational efficiencies and cost savings

· generates Federal and private funding

Regents Goal 5

"Resources under our care will be used or maintained in the public interest."

NYS Museum Renewal

Since 1836 the New York State Museum has collected and interpreted the State's natural and cultural legacy. Museum researchers have been pioneers in the investigation of the natural and human history of New York. The Museum's vast collections represent some 11,500 years of human activity.

The Need

Recent capital funding appropriations have led to great improvements in the Museum galleries but many remaining museum exhibitions on the first floor are “tired.” The exhibits contain dated information, use little or no technology, do not represent the ethnic and racial diversity of the State and do not make use of the Museum's important collections.

Exhibition Renewal Overview

The Museum's disciplines of geology, biology, anthropology and history will be featured in presentations of integrated exhibit stories about the State's natural and human past and their connections to the present. While the main exhibits will serve as a window on New York, the temporary exhibits will continue to bring the world to New York.

The new exhibitions will be more interactive, will employ as wide a range of exhibit techniques, approaches and media as possible and will use the Museum's collections more intensively.

Requested Resources:

No additional funds are requested.

· The entire project will cost $50 million and take 10 years to complete.

· $10 million of the $50 million will be raised through a capital campaign fund.

· $5 million appropriation authority is requested for 2005-06 to initiate the first major phase and for the next phases.

Statutorily Mandated Needs:

Aid to Libraries –

Education Law Sections 271, 272, 273, 273-a, 284 and 285 provide general aid to libraries, including the 74 library systems, central libraries in public library systems, all 744 member public libraries, some 216 academic libraries and several special libraries such as the New York State Library’s Talking Book and Braille Library serving 39,000 readers with disabling conditions in 55 upstate counties.

With the implementation of the 2000 census, an additional $2.4 million for a total of $91.3 million is required to fund the full statutory level.

The Department is also proposing separate legislation to provide formula stabilization to ensure no library or system receives less than the amount received in 2001-2002 for those programs negatively impacted by the 2000 census for a total cost of $200,000.

Aid to Public Radio and Television –

Section 236 of the Education Law provides aid to 17 public radio and 9 public television stations. In 2002-2003 the State appropriated approximately 52 percent of the funding called for under the statute.

An additional $12.7 million for a total of $26.5 million is required to fully fund the statutory level.

VESID

2005-2006

PROPOSED BUDGET INITIATIVES

Priority Budget Initiatives

Regents Goal 4

“Education, information, and cultural resources will be available and accessible to all people.”

VESID Employment and Independence Initiative – Regents Priority Initiative

I. Integrated Employment: $6 Million

VESID produces jobs for persons with disabilities in New York State. Funding is needed to sustain services for eligible consumers and to generate the benefits that come from employing people with disabilities. Individuals with disabilities going to work support New York State. In 2003, 15,010 individuals with disabilities were placed in employment by VESID resulting in $225 million in annualized earnings that are returned to the community. In the last five years, VESID has helped reduce reliance on public benefits by assisting over 17,500 welfare recipients in obtaining employment. The employment of these individuals increased tax revenues and savings in public benefits. Over the last six years, VESID’s active caseload grew by nearly 5%. The average cost per consumer served has risen by 3.35% over the same period. The Medicaid Buy-in Option, which allows current SSI and SSDI recipients to continue receiving health benefits while earning larger amounts of money, has the potential to generate a large increase in people needing VESID services.

The benefits of serving these additional consumers include:

Annualized Earnings - $13.5 Million

II. Supported Employment: $8 Million

VESID is seeking capacity to serve an additional 1,000 individuals with severe disabilities and place them in integrated job settings that are more cost-effective. This will enable individuals with significant disabilities to move into employment and community participation. The average intensive cost for placing an individual in Supported Employment is much less than the comparable cost of less integrated day services at OMRDD and OMH.

The fiscal benefits of placing these additional individuals into employment include:

Annualized Earnings - $10 Million

Requested Resources

· Integrated Employment - $6 million to restore Executive Budget reductions, Cost of Living increases to community-based rehabilitation agencies, to serve additional consumers due to outreach, the Workforce Investment Act and Welfare Reform to continue progress toward the goal of 20,000 job placements per year.

· Supported Employment - $8 million to open up services for approximately 1,000 of the most severely disabled individuals.

Regents/SUNY/CUNY Joint Budget Initiative

I. Postsecondary Education and Disabilities: $15.0 Million

A high school diploma is no longer sufficient to ensure individuals with disabilities competitive employment; in many cases a college education is necessary. Approximately 50% of students with disabilities and 20% of individuals with disabilities over the age of 21 will access postsecondary education next year and will continue to grow. Over 2 billion dollars in school aid are allocated annually to support students with disabilities (3-21 years of age) to prepare them for future employment. To further this effort of enhanced employment opportunities, increased access to postsecondary education is needed by funding programs for the improvement of disability services at institutions of higher education.

The lack of college and university support services for students with disabilities, coupled with physical barrier to full access to campuses, have worked together to deny many potential students the opportunity to pursue a postsecondary education.

This proposal, generated from recommendations made by the Task Force on Postsecondary Education and Individuals with Disabilities, was developed in consultation with representatives of SUNY, CUNY, the independent colleges and universities, and the degree-granting proprietary colleges.

Requested Resources

$15 million to:

· Provide base funding for capacity building.

· Support the development of programmatic activities.

· Support recruitment programs that establish targets for recruitment of students with disabilities.

REGENTS BUDGET INITIATIVE: VOCATIONAL AND EDUCATIONAL SERVICES FOR INDIVIDUALS WITH DISABILITIES

VESID Employment and Independence Initiative

Numbers of People with

Disabilities Placed in Employment

by VESID

and Their Annualized Earnings

Total Placements = 15,010

Total Annualized Earnings = $224,821,067

Federal Fiscal Year 2003

Greater percentages of students with disabilities are planning to

pursue college after high school. Of the students with disabilities

who completed high school, 48.5 percent had plans to pursue

a college education.

Postsecondary plans of students with disabilities

who completed high school*

*Plans of students with disabilities who dropped out are not included in these calculations. Final: March 17, 2004

The Enrollment of Self-identified students with disabilities in higher education programs has been increasing steadily.

Enrollment of Individuals with Disabilities*

1997 - 28,174 - 2.8 %

1999 - 30,593 - 3.0%

2000 - 34,041 - 3.3%

2001 - 36,060 - 3.4%

2002 - 38,012 - 3.5%

*Data for 1998 are not available

Future Budgetary Needs

Regents Goal 4

“Education, information, and cultural resources will be available and accessible to all people.”

VESID Employment and Independence Initiative – Additional Budgetary Needs

I. Independent Living: $1.0 Million

New York’s 36 Independent Living Centers serve over 72,000 individuals and thousands of businesses throughout New York State. They have become the primary resource for information necessary to enhance community integration of people with disabilities, increase physical and communication access and remove disincentives to work. Independent Living Centers remain instrumental in facilitating implementation of the U.S. Supreme Court’s Olmstead Decision, creating strategies with school districts to enhance transition planning and services for youth with disabilities, and increasing access to new and emerging employment options under the Workforce Investment Act and New York’s Medicaid Buy-in programs. Independent Living Centers continue to be the only consumer controlled, community based, nonresidential, not-for-profit network in New York State operating based on a self-help, peer driven model.

II. Readers Aid: $200,000

The Readers Aid program provides reimbursement to Institutions of Higher Education for the cost of providing interpreters, readers or note-takers for eligible students who are deaf, deaf-blind or blind; are residents of New York State; and are matriculated in a degree-granting program. Institutions of Higher Education are eligible to receive up to $1,000 ($500 per academic semester) to provide access to these services for eligible students vital to their studies, enabling students to succeed academically.

There are 460 New York State students enrolled in this program, or 160 more than can be supported through the current annual appropriation of $300,000. This request is only a small portion of the total cost for interpreters, readers and note-takers for all New York State residents who are deaf, deaf-blind or blind and are enrolled in New York State Institutions of Higher Education.

Requested Resources

· Independent Living - $1.0 million to maintain the services provided to individuals with disabilities by the 36 Independent Living Centers across the State.

· Reader’s Aid - $200,000 for reimbursement to Institutions of Higher Education for the cost of providing interpreters, readers or note-takers for eligible students who are deaf, deaf-blind or blind. The Institutions of Higher Education are eligible to receive up to $1,000 ($500 per academic semester) for each eligible student for these services.

Special Education Services - Statutorily Mandated Needs

Allowance to Private Schools for the Blind and Deaf (4201)

To support private schools for the education of students, who are deaf, blind or severely orthopedically disabled as required by section 4201 of the Education Law, including an assessment on raising standards. The appropriation requested also provides for State reimbursement of education costs for deaf infants below the age of three attending programs approved by the Commissioner at various public and private settings. The requested additional funding of $3,800,000 represents a 2.7% COLA.

Education of Children with Disabilities – Preschool (4410)

To support the education of preschool children with disabilities consistent with federal and State requirements. The requested additional funding of $16,586,000 represents a 3.0% COLA.