Subcommittee on State Aid and Full Board


James A. Kadamus


Detailed Proposal on State Aid to School Districts for 2006-07


October 5, 2005


2 and 5









Issue for Decision


Does the Board of Regents agree with the detailed proposal setting forth the proposed increase and distribution of State Aid to school districts to support the Board’s 2006-07 conceptual proposal on State Aid to school districts?


Reason(s) for Consideration


Review of Policy.

Proposed Handling


This question will come before the Subcommittee on State Aid and the Full Board on October 6, 2005. 


Procedural History


The development of the Regents proposal began in May 2005 and has been discussed by the Subcommittee on State Aid in June and July.  The Subcommittee Chair and SED staff met three times with the Department’s Education Finance Advisory Group and once with the Commissioner’s Advisory Panel on Special Education to discuss the conceptual proposal.  In September, the Regents approved their 2006-07 conceptual proposal for State Aid to schools.


Based on data available now, the Regents propose an increase of $1.3 billion over the previous year. However, new information will become available after November 15, and this amount will likely change.  Historically, four aids in particular have experienced significant increases as schools report their expenditures: Building, Transportation, Public Excess Cost (special education) and BOCES aids.  As a result, the Regents final recommendation will probably be for approximately a $1.5 billion increase. We will provide an update in late November.  The charts that follow are based on the preliminary estimate of $1.3 billion.


Background Information


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




VOTED:  That the Board of Regents recommend a proposal with a preliminary estimated increase of $1,339 million in State Aid to school districts for 2006-07, with 84 percent targeted to high need school districts, as well as other details included in the attached report.


Timetable for Implementation


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













Aids and Grants to be Consolidated and Other Aids

Under the Regents Proposal

on State Aid to School Districts

for School Year 2006-07



Aids and Grants Replaced by the

Proposed Regents Foundation Formula


2005-06 Aids and Grants

Regents Proposal for 2006-07

Computerized Aids















(Replaces all aids to the left)

Comprehensive Operating Aid

Operating Aid

Tax Effort Aid

Tax Equalization Aid

Transition Adjustment/Adj. Factor

Shared Services Savings Incentive

Computer Hardware Aid

Early Grade Class Size Reduction

Educationally Related Support Services Aid

Extraordinary Needs Aid

Full Day Kindergarten Conversion Aid

Gifted and Talented Aid

Minor Maintenance and Repair Aid

Operating Growth Aid

Operating Standards Aid

Operating Reorganization Incentive Aid

Small City Aid

Summer School Aid

Tax Limitation Aid

Teacher Support Aid

Other Aids and Grants

Categorical Reading Programs


Fort Drum Aid

Improving Pupil Performance Grants

Magnet Schools Aid

Flex Aid

Sound Basic Education Aid

Tuition Adjustment Aid

Urban-Suburban Transfer Aid



Other Aids


Other Aids and Grants


Building Aid

Grants for Overcrowded Schools

Building Reorganization Incentive Aid

Limited English Proficiency Aid

Private Excess Cost Aid

Public Excess Cost Aid

Textbook Aid

Learning Technology Grants

Library Materials Aid

Computer Software Aid

Special Services – Career Education

Special Services – Computer Administration

Universal Pre-Kindergarten Aid

Bilingual Education Grants

BOCES Spec Act, <8,Contract Aid

Transportation Aid

Bus Driver Safety Training Grants


Comptroller Audits

Division for Youth Transportation

Education of OMH/OMR

Education of Homeless Youth

Employment Preparation Education Aid

Incarcerated Youth

Native American Building Aid

Prior Year Adjustments


Special Act Districts Aid

Teacher Centers

Teacher-Mentor Intern