APPENDIX A

APPENDIX A

Description of 2006-07 Formula Aids to School Districts

Formula Operating	Uses a per-pupil formula equalized for school district fiscal capacity. Provides a small amount to help districts with additional spending up to $8,000 per pupil. Not paid in 2006-07 (see Flex Aid) but used to calculate other aids (e.g., LEP, Growth, Full Day K Conversion, Operating Reorganization Incentive Aids).
Flex	Unrestricted aid to school districts for school operation and maintenance. It replaces Comprehensive Operating Aid, Tax Effort Aid, Tax Equalization Aid, Transition Adjustment, tier 2 of Comprehensive Operating Aid, Extraordinary Needs Aid, Educationally Related Support Services Aid, Limited English Proficiency Aid, Summer School Aid, Minor Maintenance and Repair Aid, Gifted and Talented Aid, Operating Standards Aid, Instructional Computer Technology Aid and Shared Services Aid for non-components of BOCES.
Sound Basic Education	The new formula for 2005-06 aid used ceiling amounts per pupil, was wealth equalized and reflected regional cost differences and concentrations of children living in poverty. Districts received at least $25,000. For 2006-07, districts received the 2005-06 aid plus a share of a statewide total of additional aid that is in proportion to their 2005-06 aid.
Supplemental Extraordinary Needs	Unrestricted general aid with adjustments to meet the needs related to educating populations with a concentration of poverty, LEP or geographical sparsity. Tier 1 aid: districts with lower CWR's receive aid that is equalized using the district's operating aid ratio. Tier 2 aid: districts with above average wealth and moderate to high pupil needs receive flat grant per pupil aid adjusted by the percent of students in need. Tier 3 aid is a flat grant per pupil based on the district’s pupil need count.
Limited English Proficiency	Categorical per pupil aid for approved programs serving pupils scoring below 40 percent on an English Language Assessment. Equalized by being based on operating aid per pupil. This new aid is paid separately from Flex Aid.
Enrollment Adjustment	Districts with an enrollment increase receive aid that is equalized using the district’s operating aid ratio.
High Tax	Districts located in eligible counties receive a flat grant per enrolled pupil. Eligible counties have residential levy exceeding 4 percent of adjusted gross income.
Tax Limitation	This unrestricted aid is available to districts with high tax effort; it is based on a ceiling amount per pupil and is district wealth equalized. Additional aid is provided for expenses per pupil exceeding the State average.
Universal Pre-Kindergarten	Targeted per pupil grant for approved programs. Prorated to stay within a statewide appropriation. District eligibility determined by unserved children. Equalized by operating aid ratio and EN percent. Grants continue but formula does not apply for 2006-07.
Supplemental Universal Pre-Kindergarten	Targeted per pupil grant for an expansion of approved programs. Prorated to stay within a statewide appropriation of $50 million. District eligibility determined by unserved children. Equalized by operating aid ratio and EN percent.
Class Size Reduction	Targeted aid to add K-3 classes in districts with greater than 20 pupils per K-3 class in 1993-94. Grant per classroom based on 1994-95 teacher salary and start-up costs. Phased-in by fiscal capacity and EN percent. Grants continue but formula does not apply for 2006-07.
Textbook	Unequalized reimbursement of expenses up to a flat grant per pupil maximum.
Computer Software	Unequalized reimbursement of expenses up to a flat grant per pupil maximum.
Library Materials	Unequalized reimbursement of expenses up to a flat grant per pupil maximum.
Hardware and Technology	Expense-based reimbursement up to an equalized ceiling amount per pupil for computer hardware and educational technology equipment. Uses the district’s current year building aid ratio which reflects its relative property wealth. Local share not required.
BOCES	Expense-based aid for districts that are components of BOCES to obtain services. Equalized by either the district’s tax rate or relative property wealth per pupil.
Textbook	Unequalized reimbursement of expenses up to a flat grant per pupil maximum.
Computer Software	Unequalized reimbursement of expenses up to a flat grant per pupil maximum.

Special Services— Computer Administration	Expense-based aid up to a maximum per pupil for computer expenses. Equalized for district fiscal capacity. Big 5 Cities and other non-component districts of a BOCES are eligible.
Special Services— Career Education	Expense-based aid up to a maximum per pupil for career education expenses. Equalized for district fiscal capacity. Big 5 Cities and other non-component districts of a BOCES are eligible.
Full Day K Conversion	One year unrestricted aid on a current year basis for approved programs in districts that agree to convert to full day kindergarten programs. Equal to operating aid per pupil.
Operating Growth	Additional unrestricted operating aid for districts that experience year-to-year enrollment growth above 0.4 percent.
Reorganization Incentive-Operating	Additional unrestricted operating aid for districts that have reorganized within the past 14 years. Depending on reorganization year, up to an additional 40 percent of operating aid is provided (the percent is scaled down after 5 years).
Excess Cost--Public	Targeted per pupil aid for students with disabilities in public school- or BOCES-run programs. Wealth equalized and pupil weighted in relation to service intensity. Additional aid for moving from a restricted placement into general education setting. Additional aid for pupils in very high cost programs. Additional aid for pupils in general education setting 60 percent or more of school day.
Excess Cost--Private	Wealth equalized per pupil aid for students with disabilities that the public school places in private school settings or State-operated schools for the deaf or blind.
Transportation	Expense-based aid for approved capital and operating expenses for transportation of pupils. Property wealth equalized with a choice of aid ratios and sparsity adjusted. Starting in 2005-06, debt service expenses are aided on an assumed amortization schedule.
Summer Transportation	Transportation aid was expanded to cover summer school programs to help students meet higher learning standards. Districts with approved programs are eligible for aid up to a maximum State total of $5 million.

Building	Expense-based aid for construction and financing of approved building projects. Choice of property wealth equalized aid ratios back to 1981-82, depending on date of voter approval. Up to an additional 10 percent incentive was provided for projects approved on or after July 1, 1998. Allowable construction cost adjusted for regional cost differences starting in 1998. Starting in 2002-03, debt service expenses are aided on an assumed amortization schedule.
Reorganization Incentive- Building	Similar to Reorganization Incentive-Operating aid, an additional amount of aid (25 or 30 percent depending on year of reorganization) is provided for building projects related to reorganization. A maximum of 95 percent of approved building expenses can be aided in total by Building and Reorganization Building aid (98 percent for high needs districts for projects approved after 7/1/05). The district’s selected building aid ratio applies.
Small Cities Aid	Unrestricted transition aid for small cities that were subject to constitutional tax limits before 1985. Intended originally to phase out at a 2 percent annual rate, have been held harmless since 1994-95. Not equalized.
Expanding our Children's Education and Learning (EXCEL)	A total of $2.6 billion is available for capital construction. The maximum allocations are: $1.8 billion for the New York City school district; $400 million for non-NYC high Need/Resource-Capacity districts, based on a flat grant per pupil; and $400 million for average and low Need/Resource-Capacity districts, based on a smaller flat grant per pupil.

return to narrative