Highlights of the 2009-10 Executive Budget Recommendations
(Compared to the 2008-2009 appropriation as adjusted mid-year)
State Operations
The 2009-2010 Executive Budget recommendations include:
- General Fund State Operations support of $50.3 million reflecting a decrease of $5.5 million from the 2008-2009 appropriation as adjusted mid-year.
- A reduction of 21 General Fund FTEs for a total of 3,199 FTEs Department-wide
- A General Fund reduction from $15 million to $12.2 million for accountability
activities to reflect the following change:
- All 39 districts currently on the program will continue with a reduced financial liability unless all school buildings in the school district are reported as “In Good Standing”
- Districts remaining in the program would maintain funding on existing C4E programs less the percentage of the Deficit Reduction Assessment
- No fee increases for Department programs
- A reduction of $2 million in the annual $6 million “sweeps and transfers” of revenue out of the Office of Cultural Education special revenue account
The 2009-2010 Executive Budget recommendations also include the following Statewide adjustments:
- Elimination of the 2009-2010 State employee salary increases
- A 5-day State employee salary deferral
- Creation of an Employee Retirement System Tier 5
- Modified health care contributions for future retirees
Aid to Localities (Other than School Aid)
The Executive Budget recommends increased funding for the following General Fund programs:
- Case Services (an increase of $2.2 million for a total of $54 million)
- School Lunch and Breakfast Program (an increase of $1.7 million for a total of $31.7 million)
- Summer School Program (Section 4408) (an increase of $17 million for a total of $260.4 million)
The Executive Budget recommends a reduction in funding for the following General Fund programs:
- Adult Literacy (a reduction of $2 million for a total of $4.9 million)
- Aid to Independent Colleges and Universities Program (Bundy Aid) (a reduction of $2.6 million for a total of $41.6 million)
- Aid to Public Broadcasting (a reduction of $9 million for a total of $9.4 million)
- Aid to Public Libraries (a reduction of $16.6 million for a total of $94.5 million)*
- County Vocational Education and Extension Boards (a reduction of $8,138 for a total of $932,000)
- Post Secondary Education of Native Americans (a reduction of $11,601 for a total of $598,000)
- Collegiate Science and Technology Entry Program – CSTEP (a reduction of $3.6 million for a total of $4 million)
- Nonpublic Mandated Services Aid elimination of comprehensive attendance taking (a reduction of $44.5 million for a total of $80.6 million)
- SUNY Center for Autism (a reduction of $500,000 for a total of $490,000)
- Supported Employment (a reduction of $17,285 for a total of $15.2 million)
* Includes a Capital Projects appropriation of $14 million for Local Library Construction
The Executive Budget recommends elimination of the following General Fund programs:
- After School Programs (a reduction of $9.8 million)
- Apprenticeship Training Program (a reduction of $1.7 million)
- Math and Science High Schools (a reduction of $1.4 million)
- Missing Children Education Program (a reduction of $1 million)
- Rochester Children’s Zone (a reduction of $2 million)
- Transferring Success (a reduction of $314,900)
- Workplace Literacy (a reduction of $1.9 million)
The Executive Budget also recommends:
- Shifting State funding for Early Childhood Direction Centers to Federal IDEA program funding ($604,420)
- Shifting an additional $5.3 million in State funding for Private (4201) Schools for the Blind and Deaf to Federal IDEA funds ($4.3 million was previously shifted in 2008-2009) for an all funds total of $122.8 million
- Shifting/reducing State funding for Section 4410 preschool services to school districts and counties by reducing the State’s share from 59.5% to 47% and . making school districts responsible for 15% of the costs, thereby reducing the county share by 2.5%.
- Changing SEIT program costs to a fee for service basis
Capital Projects
The Executive Budget recommends funding for the following Capital Projects:
- $14 million – Local Library Construction; Library Aid
- $4 million – Critical Health and Safety Rehabilitation Projects at the St. Regis Elementary School
- $.8 million – Critical Health and Safety Rehabilitation Projects at the Batavia State School for the Blind
- $2 million – Minor Rehabilitation Projects Department-wide pursuant to a plan to be approved by the Division of the Budget
Highlights of the 2009-10 Executive Budget Recommendations
(2009-10 School Year Compared to the 2008-2009 School Year)
School Aid Proposal
Overview
The 2009-10 Executive Budget proposes $20.7 billion in funding for General Support for Public Schools (GSPS). The Executive Budget freezes Foundation Aid at 2008-09 levels for two years, then resumes an extended phase-in formula, with full implementation in 2014-15. Funding is also frozen for five other aid formulas (including Universal Prekindergarten programs), and funding is reduced or eliminated for six categorical grants funded through General Support for Public Schools. Other formula aids are continued under the current statutory authorization.
The Executive Budget also proposes a $1.1 billion Deficit Reduction Assessment that is computed through a formula that recognizes district pupil need, fiscal capacity and tax effort. District reductions are limited to a maximum of 3% of their adjusted total aid (excluding Building Aid and Universal Prekindergarten Grants), and a maximum of 13%. In addition, the impact on high-need districts is limited to 2.5% of their total general fund expenditures.
The Executive’s request for General Support for Public Schools (GSPS) reduces overall aid by $698.3 million, a 3.3% reduction below current estimates for the 2008-09 school year. The majority of the decrease in General Support for Public Schools is from formula-based aids, and is targeted at low and average need districts, which will receive an estimated 60.7% of all computerized reductions.
The Executive proposal is accompanied by continuation of the Contracts for Excellence for the 39 districts that were designated in 2007-08, with a reduced liability. Each district that does not have all school buildings in good standing would be required to maintain support for Contract for Excellence programs, but would be allowed to reduce funding in proportion to the impact that the Deficit Reduction Assessment had on that district.
Key Formula Provisions for the 2009-10 School Year
Foundation Aid
The Executive Budget proposes that six formula aid categories be frozen at 2008-09 levels for the 2009-10 and 2010-11 school years. These are comprised of five programs that schools are able to use for general operations, and one specialized aid program -- Universal Prekindergarten Grants.
(all figures in millions)
| Aid Category | 2008-09 Funding |
2009-10 Funding |
Foundation Aid |
$14,874 |
$14,874 |
High Tax Aid |
205 |
205 |
Education Grants |
18 |
18 |
Supplemental Public Excess Cost Aid |
4 |
4 |
Academic Enhancement Aid |
8 |
8 |
Universal Prekindergarten Grants |
401 |
401 |
Total |
$15,510 |
$15,510 |
In addition, the following grant programs were reduced below the funding levels in current law, or eliminated:
(all figures in millions)
| Aid Category | 2008-09 Funding |
2009-10 Funding |
Full-Day K and UPK Planning Grants |
$1 |
$0 |
Math and Science Initiatives |
10 |
0 |
Roosevelt |
12 |
6 |
Rochester Community Schools Pilot |
2 |
0 |
Teacher Centers |
40 |
0 |
Teacher-Mentor Intern |
10 |
0 |
Total |
$ 75 |
$ 6 |
Support for Early Childhood Education
Although the Executive Budget caps Universal Prekindergarten funding at current levels for existing programs, it authorizes districts to start new programs or to expand their existing programs, and provides for additional funding up to the maximum grant allowable in the 2008-09 school year. If all districts were to fully utilize their maximum grants, aid could total approximately $451 million.
Support for Pupils with Disabilities
The provisions for apportioning both Public High Cost Excess Cost Aid and Private Excess Cost Aid remain unchanged. Public Excess High Cost Aid increases by $52.0 million from $412.5 million to $464.5 million, a growth rate of 12.6%. Private Excess Cost Aid will increase from $262.1 million in 2008-09 to $299.9 million in 2009-10, an increase of $37.8 million or 14.4%.
Career and Technical Education Aid
The Executive Budget continues existing provisions for these aid categories. BOCES Aid is estimated to increase by $33.3 million or 5%, to an overall level of $706.1 million.
Special Services Aid (which provides aid to the Big Five and other districts that are not components of BOCES for career education activities, administrative computer services and academic programs) is estimated to be $203.4 million, an increase of $6.7 million, or 3.4% over 2008-09 levels.
Aid for Instructional Materials
The Executive Budget continues the preexisting allocation formulas for Textbook Aid, Library Materials Aid, Computer Software Aid and Computer Hardware Aid.
Building Aid
Building Aid and Building Reorganization Incentive Aid are estimated to total $2,063.1 million for 2008-09 and $2,263.5 million for 2009-10. This increase of $200.4 million represents 9.7% growth over the previous year.
In addition, the Executive provides $165.0 million in State funding to pay debt service on bonds issued to provide EXCEL Grants for capital construction. Of that amount, $130.0 million is attributable to projects funded in New York City, and an additional $35.0 million is attributable to other eligible projects. This represents an increase of $63.0 million or 61.8% over the previous year's funding of $102.0 million.
Transportation Aid
Transportation Aid for operating expenses will be calculated under the existing formula. Transportation Aid and Summer Transportation Aid are estimated to grow from $1,525.5 million in the 2008-09 school year to $1,618.5 million under the Executive proposal, an increase of $93.0 million or 6.1%.
Other Aid Initiatives
The Executive proposes continuation of Charter School Transitional Aid, providing $18.4 million in State aid to districts that are significantly impacted by a concentration of charter schools, a decrease of ($1.9 million) or -9.2% below 2008-09 levels.
The Executive Budget also recommends continued funding of $13.8 million to provide health services in the Big Four City School Districts.
Mandate Relief
The Executive budget also proposes a number of initiatives designed to enable school districts to operate more cost-effectively. These include:
- A five-year exemption from the Wicks law that imposes costly bidding requirements on school building projects;
- A proposal to streamline and reduce paperwork and reporting requirements;
- Legislation allowing districts to access their Employee Benefit Accrued Liability Reserve Funds in order to maintain educational programs during the 2009-10 school year;
- A proposal to create a new, Tier V retirement category that will reduce school district pension costs;
- Procurement reforms that will afford districts additional flexibility in contracting with vendors; and
- A proposal to insure that districts are not burdened with new mandates before they have had the opportunity to plan and budget for them.
