State Support to Public School Districts
History - State Aid as a percent of total expenditures for public schools
High point - 1968-69 - 48.1 percent
1999-00 - 42.1 percent (estimated)
85 percent from the General Fund (State income and sales taxes)
5 percent from lottery receipts
The school year is funded from two State fiscal years with 70 percent (plus $378.2 million) paid by March 31 (the end of first State fiscal year)Aid Programs
a 2.80 percent increase over the aid received the year before; or
7.80 percent of the increase in formula aids over the aid received the year before.
*Note: For 1999-00 the group of aids includes Operating, Tax Effort and Tax Equalization Aids.
Local Support for
Public School Districts
School District Types
Total State School Aid $12.9 billion
which represents 42.1 % of
Total General and Special Aid
Fund Expenditures of $30.6 billion
chart of revenue sources
chart of expenditures, 1984-85
chart of expenditures, 1996-97
Components of School Finance
A Comparison of School Districts
by Property Wealth Per Student
|Key Concepts Concerning School Aid|
Purposes of State Aid to Schools
Largest Aid Categories
Estimated1999-00 (in millions)
Operating Aid $5,929
Extraordinary Needs Aid $666
Special Education $1,772
Building, Including BANs $1,135
All major districts receive this aid
May be used for all legal expenses of the
Instructional Salaries/Fringe Benefits
Board of Education
Aid Per Pupil = Equalized State Sharing Ratio x (Ceiling Amount + a wealth-related 7.5 percent of 1997-98 Approved Operating Expenses between $3,900 and $8,000 per pupil).
For an average-wealth, average-expense district:
.41 x ($3,900 + .075 ($6,250 - $3,900)) = $1,671
Ceiling Amount of $3,900 is a proxy for expense
(Minimum = $400 per pupil)
State Sharing Ratio determination requires comparison of district wealth with average wealth of all districts in the State
Number of Pupils = Average Daily Attendance and WeightingsDistrict wealth is measured by:
< Actual Valuation Taxable Real Property Per Pupil < Adjusted Gross Income Per Pupil Annual Computations:
< Actual Value
Actual valuation of all districts divided by resident pupils of New York State to obtain State average AV/pupil.
1999-00 Aid: $243,800
< Adjusted Gross Income
Total adjusted gross personal income of all taxpayers, as reported on New York State income tax returns and including results of the statewide computerized income verification process, divided by resident pupils of State to obtain Stateaverage income/pupil
1999-00 Aid: $91,700For each district determine: < Actual Value/Pupil < Income/Pupil State Sharing Ratio Calculation (1):
< Compare District Wealth Measures to State Average Wealth Measures
District Actual Value/Pupil/$243,800
District Income per Pupil/$91,700
Weight Income and Actual Value Equally (50:50):
|.50(Dist AV/Pupil/$243,800)||+||.50(Dist Inc.per Pupil/$91,700)|
Average Wealth District CWR = 1.00
Below Average Wealth CWR = Less than 1.00
Above Average Wealth CWR = Greater than 1.00State Sharing Ratio Calculation (2):
Basic Principle: The poorer a district is compared to the State average, the greater the State sharing ratio.
|If the district's CWR is:||Then the State sharing ratio is computed as follows:|
|Less than .627||1.37 - (1.23* CWR) with a maximum ratio of .90
Range .599 to .900
|.627 - .800||1.00 - (.64* CWR)
Range .488 to .599
|.800 - 1.706||.80 - (.39* CWR)
Range .135 to .488
|Greater than 1.706||.51 - (.22* CWR) with a minimum ratio of zero
Range 0 to .135
State Sharing Ratio Chart
Number of Pupils
Average Daily Attendance (Full Day K-12)
Average Daily Attendance of 1/2 Day Kindergarten
Pupils with Special Education Needs
Pupils in SecondarySchool (7-12)
Pupils in Summer School
Sum = Total Aidable Pupil Units (TAPU)
Note: Additional Operating Aid for Pupils with Disabilities is Paid Through the Separate Public and Private Excess Cost Aid Formulas.
Calculation: Aid equals Operating Aid multiplied by the enrollment change index in excess of 1.004. The index equals the quotient of the district's enrollment for the current year divided by the enrollment for the base year.
Extraordinary Needs Aid
Eligible % x Aid Allowance x EN Aid Ratio x EN CountWhere: Eligible % = .11 x (1 + (EN% - 74.5)/38.7 )
EN% = EN Count (described above)/1998 enrollment
Minimum Eligible % is 0.11 (i.e., 11%)
Aid Allowance = District's expense-adjusted Operating Aid Ceiling.
EN Aid Ratio = 1 - (.4 x (district income per pupil/$91,700)
This would equal .60 for a district at the State average of income/pupil.
Minimum aid ratio is 0.
|Comprehensive Operating Aid|
Comprehensive Operating Aid (COA) is the sum of a district's Operating Aid and Extraordinary Needs Aid.
Set-asides: Districts with the poorest pupil performance and attendance (based on spring 1997 Pupil Evaluation Program test scores and 1997-98 attendance rates) must set aside a portion of their Comprehensive Operating Aid for improving attendance and performance and file a plan with the Commissioner.
The Big Five districts are also required to use a portion of their aid to reduce class sizes in kindergarten through grade 3.
|Excess Cost Aids for Students with Disabilities|
Additional State Aid for the education of students with disabilities is provided separate from and in addition to Operating Aid for general education according to two formulas: Public Excess Cost Aid and Private Excess Cost Aid.
< Public Excess Cost Aid is wealth equalized and uses State Aid weightings which are applied to three pupil categories according to the percentage of time students receive special education. The .13 weighting for declassification support services, provided to assist with costs for services to students and teachers in the first year the student is declassified from special education, was increased to 0.50 in 1997-98. < Private Excess Cost Aid is a wealth-equalized share of the tuition a district pays for a public school student with needs that can only be met through a contract with an approved private day or residential school. (Local social services districts pay for any maintenance costs for students placed in a residential school.)
Educationally Related Support Services Aid (ERSSA)
Purpose:To help defray costs of providing support services which will enable pupils to maintain their placement in a regular education program. For 1996-97, eligibility for ERSSA services was expanded to include qualified handicapped persons under the Americans with Disabilities Act and any students with disabilities whose attendance did not generate any Excess Cost Aid, and eligible services were expanded to meet the needs of such students. Since 1996-97, aid is not capped by the Transition Adjustment. Amount appropriated: $66 million.
|Tax Equalization Aid*|
Purpose:To direct additional State funds to school districts in which the sum of the per pupil local revenue from a tax rate of $19.50 per $1,000 of actual value of real property plus the district's operating aid per pupil is insufficient to cover the district's 1997-98 Approved Operating Expense (AOE) per pupil, up to $8,000 per pupil. (The State average tax rate for all school purposes is $17.89 per $1,000 of Actual Value.) Amount appropriated: $536 million to 223 districts.
Calculation: The positive remainder of the lesser of $8,000 or the district's AOE/pupil minus the district's Operating Aid/pupil minus the product of .01950 and the district's Actual Value/pupil is multiplied by the district's number of pupils.
*Effectively, no change in aid from the prior year. Note the description of Transition Aid.
|Tax Effort Aid*|
Purpose:To provide additional State Aid to school districts in which the 1996 residential real property tax levy including taxes levied on condominium properties, as determined by the State's Office of Real Property Services, exceeds 3 percent of the district's 1996 adjusted gross income. In addition, the district must have an actual value wealth ratio less than 2.0. (The State average residential levy as a percent of income is 2.3 percent.) Amount appropriated: $195 million to 297 districts.
Calculation: For eligible districts, the aid ceiling of $912.48/pupil is multiplied by a factor equal to the quotient of the positive remainder of the district's residential levy as a percent of income, but not more than 7.0 percent, minus 3.0, divided by 4.0. The result is multiplied by the district's number of pupils.
*Effectively, no change in aid from the prior year. Note the description of Transition Aid on page 29.
SUMMARY OF 1999-00 STATE
APPORTIONMENTS FOR SUPPORT OF
PUBLIC ELEMENTARY AND SECONDARY SCHOOLS
The 1999-00 appropriation of $12.1 billion for general support of public schools includes increases in major computerized State Aid categories of $921.9 million, with the following changes to the 1998-99 aid formulas and payment schedules:
Transition Adjustment (The subtotal of Aids w/Transition increases by $137 million to $6.3 billion): The adjustment provides for a save-harmless based on the sum of aids payable in 1998-99 for Operating, Tax Effort, Tax Equalization and Transition Adjustment aids. However, the district's total aids under these formulas for 1999-00 may not exceed the greater of two aid maximums: a) 1.0280 multiplied by the district's 1998-99 Subtotal with Transition (i.e., formula aids are capped at 2.80% over the base); or, b) the 1998-99 Subtotal with Transition plus .0780 multiplied by the positive result of the 1999-00 aids subject to the transition minus the 1998-99 Subtotal with Transition (i.e., the district's increase in formula aids over the base is capped at 7.80%). The formulas for generating the aids subject to the transition adjustment are unchanged from 1998-99.
Operating Standards Aid ($20 million increase to $102 million): This aid is based on Selected TAPU (which is multiplied by 1.26 (up from 1.06) if the districts Extraordinary Needs percent exceeds 60%) multiplied by the sum of $7.50 (up from $6) and the product of $61.50 and a new aid ratio (with a minimum ratio of .078). The aid ratio equals 1 (.66 *((.5 * Income Wealth ratio) + (.5 * Spending Ratio)). The spending ratio is the quotient of 1997-98 Approved Operating Expense/TAPU for Expense divided by $6,058. This aid may be used by school districts, in accordance with a district plan, to fund services and expenses incurred in helping students improve achievement in order to meet the new high learning standards and assessments established by the Board of Regents.
Extraordinary Needs Aid ($12 million increase): A save-harmless provision guarantees districts no less aid than in the base year.
Educationally Related Support Services Aid (ERSSA) ($6 million increase): The first tier of ERSSA is equal to the product of: $335; the Operating Aid Ratio with a .25 minimum; and, 9% of the Selected Total Aidable Pupil Units. The second tier of ERSSA is equal to the product of: $635.00 (an increase from $500); the Public Excess Cost aid ratio; 15% of the Selected Total Aidable Pupil Units; and the Extraordinary Needs percent in excess of 60%.
Public Excess Cost Aid ($56 million increase): The State average 1997-98 approved operating expense per pupil is established as $6,250. The save-harmless provision is continued for 1999-00. Additional provisions also affect apportionments for 2000-01 and 2001-02. For 2000-01, the additional weighting for pupils receiving special services for at least 60 percent of the school day is reduced from 1.7 to 1.68 and the save-harmless provision is reduced to 99.1 percent of the base year apportionment. For 2001-02, the pupil weighting is reduced to 1.65 and the save-harmless provision is reduced to 99.13 percent of the base year apportionment.
Computer Software Aid ($4 million increase) and Library Materials Aid ($2.6 million increase): The aid amount per pupil used to calculate Software Aid increases from $4.58 to $7.55. The aid amount per pupil used to calculate Library Materials increases from $4.00 to $6.00.
Textbook Aid ($18 million increase): The general fund portion of the Textbook Aid ceiling increases from $25.90 to $31.87 (the $15 lottery grant remains the same).
BOCES Aid ($40 million increase): No change in calculation of aids for 1999-00.
Building Aid ($284 million increase): The date certain reporting requirements are continued. For 2000-01 and thereafter, the building aid ratio choice is limited to the current year aid ratio or the most favorable aid ratio over the period 1981-82 through 1999-00 less 10 percent.
Transportation Aid ($67 million increase): A third aid ratio choice is added: 1.01 (.46 * (Resident Public and Nonpublic Enrollment Wealth Ratio)). Date certain reporting requirements which provide that any bus purchase budgeted or reported to the Commissioner after November 15 of the prior school year can not be aided until the second year after the year of purchase are continued. Any pupils attending a Universal Prekindergarten program pursuant to Section 3602-e of the Education Law who are transported using available vacant seats on existing bus routes will not result in any increase in the nonallowable pupil deduction.
Universal Prekindergarten Program ($43 million increase): $100 million is provided for grants to eligible school districts for the 1999-00 school year, a $43 million increase over the previously authorized funding level. The minimum grant award for 1999-00 is increased from $2,000 to $2,700 and the aid per prekindergarten pupil is increased from $260 to $600. The Commissioner is required to determine those districts eligible for grants in future years and notify each district so identified by November 15 of the base year to allow districts time to consider their participation in the program and to complete all planning requirements on a timely basis.
Early Grade Class Size Reduction Aid ($75 million): Grants for early grade class size reduction will be available to eligible districts with approved plans for reducing class size in grades kindergarten, one, two and three to not more than 20 students per class. If necessary, grants are prorated to equal a State appropriation of $75 million.
Minor Maintenance and Repair Aid ($50 million): For the second year, there is an additional apportionment for repair of instructional school facilities based on the age and square footage of district buildings. The funds must not supplant expenditures the district has already budgeted for repairs, but no local match is otherwise required.
Instructional Computer Technology Aid ($16 million increase): Formula aid is equal to approved 1998-99 expenditures for capital outlays and/or 1999-00 expenses for debt service and/or leases multiplied by the greatest of: (a) the selected building aid ratio for 1999-00 aid; (b) the millage ratio; or (c) 0.36. Each districts aid is prorated to remain within a $25.0 million statewide appropriation. Expenses aided under this new Aid will not be eligible for BOCES Aid.
Shared Services Aid for noncomponent districts of BOCES including the Big 5 City School Districts ($6.5 million increase): Formula Aid is equal to 1998-99 expenditures for instructional support services multiplied by the higher of the millage ratio or the Current Actual Valuation/1997-98 RWADA aid ratio, with a .36 minimum and .90 maximum. Each districts aid is prorated to remain within a $10 million statewide appropriation.
Full Day Kindergarten Conversion Aid ($5 million decrease): Districts with any half-day kindergarten or no kindergarten programs in 1996-97 and in the base year (1998-99) are eligible for aid equal to the estimated 1999-00 Operating Aid per Selected TAPU multiplied by any increase in full day kindergarten enrollment in 1999-00 over 1998-99. School districts must offer full day programs to all kindergarten students in order to qualify for this aid.
Tax Limitation Aid ($25 million): This new aid replaces Tax Freeze and Limitation Aid. Districts with a pupil wealth ratio below 2.0 and a tax effort ratio above 3.9 percent are eligible for aid which is calculated as the Residential Levy per Pupils for Tax Aid multiplied by .0305, multiplied by the Tax Limitation Aid Ratio (1 (.5 * CWR)), multiplied by the Pupils for Tax Aid.
Small Cities Aid: The 1999-00 Small Cities Aid is the same as 1998-99 Small Cities Aid.
Additional or Prospective Provisions Not Included with Computerized Aids:
(RESCUE - Rebuilding Schools to Uphold Education 145 million increase): Aid is available in addition to Building Aid and Minor Maintenance and Repair Aid to fund school facility costs related to construction and maintenance. The maximum additional apportionment available for RESCUE for the school years 1999-00 through 2001-02 is the districts sharing ratio multiplied by $145,000,000. The sharing ratio is the districts resident public and nonpublic school enrollment divided by the State total resident public and nonpublic school enrollment (to 6 decimals without rounding). The result is prorated to remain within the $145 million total commitment with no district receiving less than $20,000.
Aid for Building Condition Surveys of School Buildings: Beginning with aids payable in the 1999-00 school year, aid is provided for base year expenditures incurred by school districts in conducting building condition surveys equal to the product of the district's building aid ratio and eligible base year expenditures, up to a specified building condition survey aid ceiling per square foot of floor area. The ceiling for aids payable in 1999-00 is $0.20 gross per square foot.
Payment Schedules: The payment schedules for General Aids, Excess Cost Aids, BOCES Aid and Small Cities Aid remain the same for 1999-00.
School Tax Relief (STAR) Aid Payment Schedule: A separate payment schedule is created for the payment of School Tax Relief Aid representing tax savings provided by school districts to their taxpayers under the STAR Program. For the 1998-99 school year, school districts were guaranteed payment of 35% of STAR Aid by October 15, 70% by November 15, 80% by December 15, and the balance by the first business day in January. That same schedule is extended to apply to the 1999-00 school year. For the 2000-01 school year and thereafter, STAR Aid will be paid pursuant to a schedule based on the recommendations of the School District Cash Flow Study Commission's report which was submitted to the Governor and the Legislature in March of 1998.
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last update: 3/23/00 by cbs