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

TO:	Subcommittee on State Aid and Full Board
FROM:	James A. Kadamus
SUBJECT:	Detailed Proposal on State Aid to School Districts for 2006-07
DATE:	October 5, 2005
STRATEGIC GOAL:	2 and 5
AUTHORIZATION(S):

SUMMARY

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.

Recommendation

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.

Attachment

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		Foundation Grant (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
CVEEB
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