ALERT: New York State Assembly Passes Budget Resolution

The New York State Assembly has released a budget resolution for Fiscal Year 2006, rejecting most of the Governor's school aid proposals, and putting forth its own restructuring of school aid. As part of its legislative proposals "…the Assembly proposes the creation of a Foundation Operating Aid formula that will provide… predictable school funding." The Foundation formula targets 81.7 percent of its proposed $490,000,000 to the high need school districts in the state. Total increases in the 2005-2006 school year would come to about $790 million.

The Assembly maintains Class Size Reduction funding at $140,000,000. Universal Prekindergarten is maintained at $204,000,000. Experimental Prekindergarten is maintained at $50,200,000. Minor Maintenance is funded at $50,000,000.

In Attachment A of the Assembly report of its resolution, the calculation for the Formula is as follows:

Foundation Amount ($4,594) x Regional Cost Factor x Pupil Need Index x Measurement of Fiscal Capacity = State Aid Per Pupil x Number of Pupils = Total Foundation Aid (Every school district would receive at least a minimum of $500 per pupil.)

The Foundation amount "…represents the cost of providing general education services based on NYS schools that are performing well (Regent's Successful Schools Study). TIMES

The Regional Cost Factor (9 regions based on the wages of non-school professionals in NYS). This ranges from an index of 1 in the North Country to 1.496 in NYC/Long Island.

TIMES

The Pupil Need Index (This index is based on geographical sparsity and eligibility for the Free and Reduced Price Lunch program, a measure of poverty. These are common measures of need in existing school aid formulas.)

TIMES

The Measurement of Fiscal Capacity (A particular district's sharing ratio will determine the state share of the total calculated foundation amount. Local fiscal capacity is based on both income and property measures.) =

State Aid Per Pupil ($500 minimum if aid generated from the previous calculation is less than $500 per pupil)

TIMES

Number of Pupils (weighted and based on enrollment as opposed to attendance). =

Total Foundation Aid (100% Save Harmless to a base of several consolidated aid categories. Minimum increase of 1 percent.)

There is a consolidation of several existing formulas into the new proposed Foundation Operating Aid. These include:
• Comprehensive Operating Aid
• Extraordinary Needs Aid
• Reorganization Operating Aid
• Educationally Related Support Services Aid
• Summer School Aid

The Assembly proposes funding Building Aid projects with contracts signed by February 15th of the school year, and rejects the Executive's Building Plan. The Assembly also proposes to increase Building Aid funds by $25,443,000, but unlike last year, did not propose a $1.3 billion state contribution to the city's capital plan.

 

Source: Report of The Ways and Means Committee on the New York State Assembly Budget, Fiscal Year April 1, 2005 to March 31, 2006 State of New York.