2007-08 STATE AID HANDBOOK

 

STATE FORMULA AIDS AND ENTITLEMENTS FOR SCHOOLS IN NEW YORK STATE
(AS AMENDED BY CHAPTERS OF THE LAWS OF 2007)

The University of the State of New York
THE STATE EDUCATION DEPARTMENT
State Aid Unit
Albany, New York 12234
September, 2007

Return to State Aid Home Page

Table of Contents

Introduction and Major Formula Changes

1. Formula Aids for Major Districts
   1. Foundation Aid*
   2. Deduction for the Local School District's Share of Education Costs for Certain Students*
   3. Building Aid*
   4. Expanding our Children's Education and Learning (EXCEL)
   5. Reorganization Incentive Aid*
      1. Reorganization Incentive Operating Aid
      2. Reorganization Incentive Building Aid
   6. Transportation Aid (Non-Capital Only)*
   7. Aid on Transportation Capital Expense*
   8. Special Services Aid for Five Large City School Districts and Non-Components of BOCES
      1. Aid for Career Education*
      2. Computer Administration Aid*
   9. Aids for Educational Technology
      1. Instructional Computer Hardware and Technology Equipment Aid
      2. Aid for Computer Software Purchases
      3. Building Aid for Computer Technology*
      4. Aid for Instructional Computer Technology Services Purchased as a Shared Service Through a Board of Cooperative Educational Services
   10. Urban-Suburban Transfer Aid*
   11. Transitional Aid for Charter School Payments*
   12. Excess Cost Aids Related to Educational Services for Student With Disabilities Which are Paid in Conjunction with Federal Medicaid Reimbursements
       1. Supplemental Public Excess Cost Aid for Pupils in Public School and BOCES Placement
          1. Basic Excess Cost Amount
          2. Declassification Support Services Aid
          3. High Cost Public Excess Cost Aid
          4. Excess Cost Save Harmless Amount
          5. Integrated Settings Excess Cost Aid
       2. Excess Cost Aid for Pupils in Approved Private School Placements Or in State Operated Schools
       3. Public High Cost Aid Excess Cost Aid
       4. Public Excess Cost Setaside
   13. Set-Aside for Attendance Improvement/Dropout Prevention (AIDP) as Required by Paragraph f of Subdivision 12 of Section 3602 of the Education Law
   14. BOCES Aid
       1. BOCES Services Aid
       2. BOCES Administrative Aid
       3. BOCES Due-Save-Harmless Aid
       4. Payment of BOCES Aid
   15. Textbook Aid
   16. Library Materials Aid
   17. Aid for Conversion to Full Day Kindergarten Program*
   18. Universal Prekindergarten Grants
   19. High Tax Aid*
   20. Employment Preparation Education Aid
2. Miscellaneous Aids
   21. State Aid Payable to School Districts Impacted by School Tax Savings Under the School Tax Relief (STAR) Program
   22. Summer Component of Twelve Month Programs for Students with Disabilities
   23. Education Aid for Pupils from the Office of Mental Retardation and Developmental Disabilities
   24. Incarcerated Youth Aid
   25. Aid for Education of Homeless or Runaway Pupils
   26. Aid for Non-Operating Districts
       
   AA. Aid for Districts with Fewer than Eight Teachers
   BB. Lottery Revenues Used to Fund Apportionments Payable to Public School Districts
   
3. Payment Schedules
   CC.General Aids Payable to School Districts for Aids Identified with a Single Asterisk in the Table of Contents
   DD. Excess Cost Aids Payable to School Districts
   EE. BOCES Aid Payable to BOCES
   FF. Payment Schedule for School Tax Relief Aid (STAR)
   GG. Other Aids
   HH. Payment Schedule and Policy Regarding Aid Adjustments Occurring After the Last Scheduled Aid Payments for a Given Year

Appendix A

Explanation of Pupil Counts; Wealth Measures; and Local Expenditures, Measurements, and Adjustments

Appendix B

Acronyms

Sample Calculation of Aid on the Costs of Refinancing Chart

Return to State Aid Home Page

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INTRODUCTION AND MAJOR FORMULA CHANGES

Financial support for public schools came from three sources in 2005-06: the federal government (approximately 6%), state formula aids and grants (approximately 43%), and revenues raised locally (approximately 51%).  State aid for public schools comes primarily from the State General Fund (approximately 71%) wherein the major revenue source is state taxes (e.g. income and sales) Of the balance, approximately 17%, comes from STAR and 12% comes from a Special Revenue Fund account supported by lottery receipts. [1]  In contrast, the major source of local revenues for education are the tax levied  on residential and commercial properties within the boundaries of each school district (approximately 90%), and non-property tax revenues.  For the State's five largest cities, commonly referred to as the Big Five (NYC, Rochester, Buffalo, Yonkers and Syracuse), constitutional tax limits require that education revenues come from the total municipal budget as opposed to taxes levied by the school system. [2]

            This handbook focuses on the major State formula aids available to school districts during the 2007-08 aid  year and includes changes to those formulas enacted by the Legislature for 2007-08. The information and formula amounts contained in the handbook are based on  the formulas governing the specified aid categories as  enacted by the Legislature as part of the 2007-08 State budget. An explanation of the payment schedules for STAR, excess cost aids,  BOCES and other  aid categories is provided, as well as an appendix containing the definitions of key terms and a list of State Aid acronyms. Please note that on the home page of the State Aid website (http://stateaid.nysed.gov), you may enter the name of any NYS major public school district and view the formula calculations described in this publication. 2007-08 calculations will be available on the web in late fall 2007.

            For purposes of the 2007-08 handbook:

Current year = 2007-08 school year
Base year = 2006-07 school year
Year prior to the base year = 2005-06

            Following is a summary of major changes to formula aids enacted by the Legislature for 2007-08:

Foundation Aid ($13.6 billion)

A new general operating aid formula was enacted, providing districts statewide with approximately 71% of their total computerized State Aid. Funding for several existing aid formulas was folded into Foundation Aid. For example, Formula Public Excess Cost Aid supporting expenditures for students with disabilities was eliminated. This funding is now provided via a 1.41 pupil weighting in the Foundation Aid formula. See Section A for more information.

56 districts with at least one poorly performing school and which received Foundation Aid increases of specified minimum amounts must prepare a Contract for Excellence. The combined various reporting requirements of the contract for excellence create a vehicle for district accountability for the expenditure of these funds, and for academic results associated with the expenditures. Click here for more information on the contract for excellence: http://www.emsc.nysed.gov/mgtserv/C4E/home.shtml

Universal Prekindergarten Aid ($437.9 million)

A new formula-based Universal Prekindergarten grant was enacted, almost doubling the State funding available for prekindergarten programs for four year olds in 2006-07. See Section R for more information.

High Tax Aid ($100 million)

Districts located in eligible counties receive the greater of $100,000 or $147.29 multiplied by the 2006-07 public enrollment for the district. Districts ineligible for this aid, with a tax effort ratio greater than .040 and a regional cost index exceeding 1.3 may be eligible for the Tier 2 portion of this formula. See Section S for more information.

Transitional Aid for Charter School Payments ($22.5 million)

This formula provides funding for 15 districts in the State with a significant portion of their resident students at charter schools and for which payments to charter schools for these students constitutes a significant portion of their total general fund expenditures. See Section K for more information.

Instructional Computer Hardware and Technology Equipment  Aid ($37.4 million)

School districts are now obligated to loan computer hardware to nonpublic school students. See Section I for more information.

I
FORMULA AIDS FOR MAJOR DISTRICTS

A. FOUNDATION AID
[Sections 3602 (2 and 4) and 211-d of the Education Law]  
(2007-08 Estimated Total - $13,640.1 Million)

Foundation Aid, first enacted in 2007-08, is  the largest aid unrestricted aid category supporting public school district expenditures in New York State.

Foundation Aid has four main components:

• A State-specified expense per pupil, called the adjusted foundation amount, to which the State and school districts will contribute.
  
  
• A State-specified expected minimum local contribution per pupil (based on a computed tax rate or local share formula) representing each district’s contribution to the adjusted foundation amount per pupil
  

• The number of total aidable foundation pupil units (TAFPU) in the district.

• A calculation of  Foundation Aid payable, which adjusts Total Foundation Aid based on phase-in factors and minimum and maximum aid increases

 Following is a detailed description of calculated Foundation Aid components, as well as the determination of Foundation Aid payable.  

 

Adjusted Foundation Amount (AFA)

AFA = Foundation Amt.  X   Phase-in Foundation %  X  Regional Cost Index(RCI)  X  Pupil Need Index (PNI)

Foundation Amount
For the 2007-08 aid year, the Foundation Amount is $5,258.

The foundation amount reflects the average per pupil cost of general education instruction in successful school districts, as determined by a statistical analysis of the costs of special education and general education in successful school districts. In years in which the foundation amount is not determined by a statistical analysis, it will be adjusted annually to reflect the percentage increase in the consumer price index .  

Phase-in Foundation Percent
For the 2007-08 aid year, the Phase-in Foundation % is 1.0768.
For the 2008-09 aid year, the Phase-in Foundation % is 1.0506.
For the 2009-10 aid year, the Phase-in Foundation % is 1.0249.

Regional Cost Index (RCI)
The regional cost index reflects an analysis of labor market costs based on median salaries in professional occupations that require similar credentials to those of positions in the education field, but not including those occupations in the education field. The regional cost indices for the nine labor force regions are as follows:

 

Pupil Need Index (PNI)

• PNI =  1  +  Extraordinary Needs (EN) %        (Min = 1, Max = 2)

• EN % =

(Poverty Count + Limited English Proficiency Count X 5)+ Sparsity Count)
Base Year K-12 Public School Enrollment

X  100

• Poverty Count =

(.65 X Lunch Count) + (. 65 X Census Count)

• Lunch Count =

2003-04 +2004-05 + 2005-06  K-6 Free & Reduced Price Lunch Applicants
2003-04 + 2004-05 + 2005-06  K-6 Public School Enrollment
X
Base Year K-12 Public School Enrollment

• Census Count =
  Based on the 2000 Census as tabulated by the National Center on Education Statistics, the number of persons age 5-17 enrolled in the public school district and whose families had income below the poverty level divided by the number of persons age 5-17 in the school district
  
  
• Limited English Proficiency Count =
  Base year enrollment of pupils scoring at or below the 40th percentile on a standardized test of English proficiency and receiving LEP services
  
  
• Sparsity Count =  For school districts operating grades K through 12, base year public school enrollment  multiplied by a sparsity factor calculated as follows:

25.0 – (Base year Enrollment per Square Mile)
50.9

2. Expected Minimum Local Contribution Per Pupil

Each district’s expected minimum local contribution per pupil is the lesser of  a per pupil amount based on a computed tax rate (A) or a per pupil amount based on a calculated state sharing ratio (B).

Expected Minimum Local Contribution per pupil (A) =

(Selected Actual Value / TWFPU)  X  Local Tax Factor (LTF)  X  Income Wealth Index (IWI)

Selected AV
The lesser of 2004 Actual Valuation or the average of 2003 and 2004 Actual Valuation

Total Wealth Foundation Pupil Units (TWFPU)
The sum of  the (i) average daily membership for the year prior to the base year, plus (ii) the full-time equivalent enrollment of resident pupils attending public school elsewhere, less the full-time equivalent enrollment of nonresident pupils, plus (iii) the full-time equivalent enrollment of resident pupils attending a board of cooperative educational services full time.

Local Tax Factor (LTF)
For the 2007-08 aid year, the LTF is .016

Income Wealth Index (IWI )
IWI ( min = .65, max = 2.0) = 

 2004 Adjusted Gross Income (AGI) / TWFPU
$169,000 (State Avg. AGI /TWFPU)

Expected Minimum Local Contribution Per Pupil (B) =

Adjusted Foundation Amount  X  1.00  minus the highest of the following state sharing ratios:
1.37 – (1.23 X Combined Wealth Ratio)
1.00 – (0.64 X Combined Wealth Ratio)
0.80 – (0.39 X Combined Wealth Ratio)
  0.51 – (0.173 X Combined Wealth Ratio)

Combined Wealth Ratio (CWR) =

CWR   =  0.5  X  District FV / TWPU   +   0.5  X  District AGI / TWPU
                    $426,800                                   $136,600

Full Value per Total Wealth Pupil Units (FV/TWPU) =
The full value of taxable real property per pupil unit within the district divided by Total Wealth Pupil Units. TWPU is a measure of the weighted average daily attendance of resident pupils in a district. For 2007-08 aid, the full value per TWPU is the  2004 Full Value divided by 2005-06 TWPU.  The statewide average of 2004 full value per TWPU is $426,800.  When the district's  full value per pupil is divided by the statewide average, the quotient is called the pupil wealth ratio (PWR).  A PWR value of 1.000 means that the district is of average wealth on this measure, while a district of less than average wealth would have a PWR less than 1.000 and a district of greater than average wealth would have a PWR greater than 1.000

.Adjusted gross income per Total Wealth Pupil Units (AGI/TWPU) =
Adjusted gross income is based on personal income tax returns of district residents.  For 2007-08 aid, 2004 adjusted gross income, as verified by a statewide income verification process conducted jointly by the Education Department, the Department of Taxation and Finance, and the Office of Real Property Services, is divided by 2005-06 TWPU.  The statewide average of adjusted gross income per TWPU for 2007-08 aid is $136,600.  When the district's adjusted gross income per pupil is divided by the statewide average, the quotient is called the alternate pupil wealth ratio (APWR).  An APWR of 1.000 means that the district is of average wealth on this measure, while a district of less than average wealth would have an APWR less than 1.000 and a district of greater than average wealth would have an APWR greater than 1.000.

When the PWR and the APWR of a district are averaged together, the resulting average wealth ratio is called the combined wealth ratio (CWR) of the district [3]. Note that a district of average wealth according to both property and income variables would have a combined wealth ratio of 1.000.  Districts wealthier than the average would have a combined wealth ratio greater than 1.000 and districts less wealthy than the state average would have a ratio less than 1.000.

       B. DEDUCTION FOR THE LOCAL SCHOOL DISTRICT'S SHARE OF
EDUCATIONAL COSTS FOR CERTAIN STUDENTS
[Section 4401(8) of the Education Law])
(2007-08 Estimated Total = $-33.3 Million

The educational costs for certain students under the care and custody of a State agency or with unique educational placements are paid in the first instance by the State.  In the year following the school year in which educational services are provided to these students, the State assesses a basic contribution in support of such expenditures from the school district of residence.  This basic contribution is defined in subdivision 8 of Section 4401 of the Education Law as an amount equal to the total base year property and non-property taxes of the school district divided by the base year public school enrollment of the district.  Any revenues received from the State under the School Tax Relief Program are considered property taxes for this purpose.  The basic contribution is assessed for the following types of students:

• students attending State-supported schools for the blind or deaf;
• students placed in a family home at board, an orphan asylum or other such institution who previously resided in a school for the mentally retarded operated by the State Office for Mental Retardation and Developmental Disabilities;
• students residing in a school for the mentally retarded operated by the State Office for Mental Retardation and Developmental Disabilities who receive educational services in a public school district or a BOCES;
• students residing in an intermediate care facility or an individualized residential alternative who receive educational services through the public school district of current location;
• students placed in a child care institution by the Family Court, the Department of Social Services or the State Division for Youth who receive educational services at the expense of a local social services district agency;
• students placed in a residential psychiatric treatment facility, a residential treatment facility or a child care institution who receive educational services at the expense of a local social services district agency or the New York State Office of Mental Health;
• students incarcerated in a county operated correctional facility who receive educational services through the public school district of current location;
• runaway or nonresident homeless students who receive educational services through the public school district of current location; and
• students placed by the school district in a Children’s Residential Project (CRP) School on or after July 1, 1995.

C. BUILDING AID
[Section 3602(6)(6-a)(6-b)(6-c)(6-e)(6-f) of the Education Law]
(2007-08 Estimated Total = $1,768.0 Million)

Building Aid is available for expenses incurred in construction of new buildings, additions, alterations or modernization of district-owned buildings, for purchase of existing structures for school purposes, and for lease and installment purchase payments under certain circumstances
.
Steps in computing Building Aid

• Building plans and specifications for the project must be approved by the Facilities Planning Unit of the State Education Department.
  
  
• The pupil capacity of the building is assigned to the project by the Facilities Planning Unit.
  
  
• Estimated construction costs and estimated incidental costs are determined. Construction costs are for major contracts (general construction, heating and ventilating, plumbing, and electrical), while incidental costs are for such items as site purchase, site development, original equipment, furnishings, machinery or apparatus, and professional fees.
  
  
• A maximum construction cost allowance for each building project is computed by multiplying a pupil construction cost allowance figure, adjusted for regional cost differences, by the assigned pupil capacity for the building.
  
  
• The pupil construction cost allowance is adjusted monthly, based upon an index which reflects changes in cost of labor and materials. The index available for the calendar month in which the construction contract is signed for a specific project is the index used. The actual construction cost allowance is the lesser of the computed maximum or the actual construction costs.
  
  
• Regional Cost Adjustment: For approved building projects with a general construction contract awarded on or after July 1, 1998, the construction cost allowance will be adjusted by a factor reflecting regional differences in labor market composite wage rates established by the Commissioner of Labor each year. The adjustment will result in increased cost allowances for school districts in high cost areas of the State. Since the index cannot be less than one, the adjustment cannot be negative for districts in other areas of the State. In calculating Building Aid actual costs claimed for aid may not exceed the cost allowance.
  
  
• The maximum incidental cost allowance is 20 percent of the maximum construction cost allowance for K-6 buildings, and 25 percent of construction cost allowance for Grade 7-12 buildings and for special education space. The actual incidental cost allowance is the lesser of the computed maximum or actual incidental costs.
  
• To aid debt service expenditures associated with retro projects (see below) and BANS, a bond percent is calculated to determine the aidable portion of the expense. The bond percentage is derived from the ratio of total approved cost allowances to the total principal borrowed.

Categories of Building Aid

Chapter 383 of the Laws of 2001 established a new method of apportioning Building Aid. Previously, State Aid partially reimbursed districts for their actual approved debt service expenditures for approved projects based on the actual amortization schedules associated with their borrowings. The most significant change is that beginning in 2002-03, aid is paid on assumed debt service expenditures based on assumed amortization schedules. The laws of 2002 also changed the way districts are reimbursed for capital outlay (not borrowed) expenditures associated with approved construction projects.

Under the assumed amortization method of aiding building expenses, projects are identified as either “retro” or “prospective.” Retro projects are those with Commissioner’s approval date (CAD) before 12/1/01, for which debt (bonds, BANS or capital notes) was first issued before 12/1/01. These projects are identified as retroactive or “retro” because they meet these criteria and are associated with borrowings that had principal outstanding as of July 1, 2002. Retro projects are aided differently than “prospective” projects. Prospective projects are those with CAD on or after 12/1/01 or, CAD before 12/1/01 but for which debt was first issued after 12/1/01.

Following is a description of the Building Aid categories:

1. Assumed debt service expenditures associated with “retro” borrowings with principal outstanding as of 7/1/02, including assumed debt service expenditures associated with energy performance contracts.

• The remaining blended maximum useful life of the projects associated with the debt issuance (Click here for detailed explanation on calculating the blended maximum useful life of a project.)
  
  
• A statewide average interest rate (except that if the borrowing was refinanced by the Dormitory of the State of New York (DASNY), the DASNY interest rate was used, and except for special provisions for rates for the Big 5 city school districts (Click here for an explanation of the calculation of the statewide average interest rate.)   (Click here to view a chart with both retro and prospective interest rates for assumed amortizations.)
  
  
• Equal semiannual assumed payments of interest and principal. For existing projects, the first two semiannual payments are assumed to occur in the 2002-03 school year, generating aid in that school year.

Although there are two assumed payments per year for purposes of establishing an assumed amortization schedule, actual Building Aid paid on retro projects is part of regular Building Aid and is paid to districts as part of the 3609-a General Aid payment schedule.

2. For refunding bonds issued on or before 7/1/05, the reasonable costs of refinancing retro borrowings to align actual district debt service schedules with the assumed schedules on which aid is based. (Click here for a detailed memorandum on reimbursement for refinancing, including the information that appears below, information on claiming aid and a Q and A section.)

   With aid on existing debt now based on assumed rather than actual amortization schedules, aid payments were no longer aligned with actual district debt service expenditures. Many districts refinanced their existing debt in order to better align their actual debt service schedules with the assumed schedules the State is now using to pay Building Aid. To facilitate the move to assumed amortization, State Aid is available to partially reimburse districts for the costs of refinancing retro borrowings.

The following criteria must be met in order to receive reimbursement for refinancing costs:

• The project or projects included in the new issuance had to be retro projects
• The refunding bond must have been issued on or before 7/1/05
• The district could not demonstrate net present value savings (Note: Local Finance Law was amended to allow refunding under this condition)
• Aid payable in 2002-03 and/or 2003-04 for approved debt service expenditures was reduced due to the application of assumed amortization to unpaid principal outstanding as of 7/1/02

The main purpose of reimbursement for the costs of refinancing is to minimize the impact on districts due to the application of assumed amortization. Therefore, the statute distinguishes between the state share of the costs of refinancing and the local share of the costs of refinancing. The state share of costs is reimbursed more generously than the local share, since theoretically districts need only refinance the state share of existing debt in order to better align their payments with assumed aidable debt service payments.

In order to distinguish between the state and local shares of refinancing costs for purposes of determining the aidable costs associated with each component, a state share ratio is calculated. This state share ratio is not the same as and should not be confused with the district's building aid ratio. Please see below the sample calculation of aid on the costs of refinancing for a mathematical display of the state share ratio calculation and its application. Click here for Sample Calculation of Aid on the Costs of Refinancing.

3. Assumed debt service expenditures associated with new borrowings to finance remaining approved retro project costs.

In addition to the amortization of the 7/1/02 remaining balance on debt issued to fund retro projects, districts may need to borrow additional money to fund remaining approved costs for retro projects. Assumed amortization schedules are created for this debt issued after 7/1/02 in order to determine the aidable debt service expense for Building Aid purposes. The remaining useful life for these amortizations is the same as that calculated for the amortization of the 7/1/02 remaining balance.

4. Actual debt service expenditures for retro borrowings which have been exempted from assumed amortization via the waiver process.

   Through June 30, 2005, school districts could apply to SED for a waiver from the application of assumed amortization to retro bonds, other amortizations or lease-purchase agreements in existence as of July 1, 2002. This means that under certain circumstances, retro borrowings may continue to be aided in the manner in which they were aided prior to the enactment of the assumed amortization. Prior to assumed amortization, the districts' debt service payments from the actual amortization schedules for the borrowings were the basis for aidable debt service expense and building aid. Waivers could also be granted to adjust the period of assumed amortization and/or the interest rate. Click here to view a document containing the guidelines for approving retroactive assumed amortization waivers.

5. Assumed debt service expenditures associated with prospective projects.

   Prospective projects are those projects with Commissioner’s approval date after 12/1/01, or approved before 12/1/01 but for which the first borrowing was issued after 12/1/01. Aidable debt service expenditures for prospective projects are based on assumed amortization schedules. For each prospective project, an assumed amortization schedule is generated based on:

• Total approved project costs, except that for projects with CAD before July 1, 2002, capital outlay (cash) costs are not included in the costs to be amortized;
• A statewide average interest rate (except that if the project is funded with borrowing through the Dormitory of the State of New York (DASNY), the DASNY interest rate is used, and except for special provisions for rates for the Big 5 city school districts.) By September 1 of each year, districts must submit information to SED regarding all capital debt issued in the prior year. The interest rates for these borrowings are used to calculate the statewide average interest rate. The interest rate used to generate the assumed amortization schedule is tied to the CAD of the project. (Click here for an explanation of the calculation of the statewide average interest rate.)
• A term of 15, 20 or 30 years for reconstruction projects, additions and new buildings, respectively
• Two assumed, level debt service payments during each aid year

An assumed amortization schedule for a prospective project is not generated, and aid does not begin to be paid on the project until 18 months after the CAD or certification to SED that a general construction contract has been signed, whichever is later. Example: for Project A, CAD is 7/28/01. CAD plus 18 months is 1/28/03. If the date of SED notification of contract signing date was on or before 1/28/03, the first aidable assumed debt service payment would have fallen in the second half of the 2002-03 aid year. 2002-03 aid to the district on the project was based on the aidable debt service expense associated with one assumed debt service payment. In the 2003-04 aid year and the remaining years of the assumed amortization, aid will be based on the aidable debt service expense associated with two level, assumed debt service payments.

Although there are two assumed payments per year for purposes of establishing an assumed amortization schedule, actual Building Aid paid on prospective projects is part of regular Building Aid and is paid to districts as part of the 3609-a General Aid payment schedule.

Note: Deferral of aid on prospective projects without contract signing notification on file with SED by the November 2006 database. Since the 2004-05 aid year, initial Building Aid payments on prospective projects have been deferred to July of the following aid year where contract signing notification  via submission of the SA-139 form, was not on file with the Department by a date specified in statute at the time the State  budget was enacted, even if the contract has been signed and 18 months has elapsed since Commissioner’s approval date.

6. Base year expenditures for security cameras, stationary metal detectors, electric partitions, other security devices and safety devices for electrically operated partitions, room dividers and doors.

School districts may receive partial reimbursement for base year expenditures associated with security cameras, metal detectors and other security devices. Special maximum cost allowances of $2,000 per unit for security cameras and $6,000 per unit for metal detectors are prescribed by the Commissioner for these items, and claims must be approved by SED Office of Facilities Planning before aid is generated.

In addition, partial reimbursement is available to districts for base year expenditures associated with complying with section 409-f of the education law. Section 409-f requires in part that every electrically operated partition or room divider be equipped with safety devices which stop the forward motion of the partition or room divider, and stop the stacking motion of the partition or room divider, when a body passes between the leading panel of such partition or divider and a wall, or when a body is present in the stacking area of such partition or divider. A special maximum cost allowance of $6,000 per unit is prescribed by the Commissioner for these devices, and claims must be approved by SED Office of Facilities Planning before aid is generated.

Aid in this category is calculated using the district's current year building aid ratio. (See below for more information on building aid ratios)

7. Current year approved expenditures for lease payments.

   School districts may receive aid on current year expenditures for lease payments on leases that have been approved by the Commissioner. The leases must be for a period of five years or less, except that the term can exceed five years if voter approval in the lessee district is obtained before the lease is executed. The term of the lease may not exceed the period of probable usefulness for the building. Voter approval must also be obtained in the lessee district in order to undertake capital projects in the leased facility during the term of the lease. School districts may not enter into leases with an option to purchase.

   To be eligible for aid, the leased facility must meet requirements for access by individuals with disabilities to facilities and programs as defined by the Commissioner, and the leased space must be used to house pre-k through grade 12 programs (other than 4410 programs), with minimal associated administrative and support services space as approved by the Commissioner.

8. Base year expenditures for building condition surveys.

   An additional apportionment of aid is available for the structural inspection of school buildings used for instructional purposes and conducted in accordance with sections 409-d and 409-e of the education law, and accompanying regulations. The apportionment equals the product of the building aid ratio and the actual approved expenses incurred by the district in the base year for each school building inspected by a licensed architect or licensed professional engineer, except that the aid amount cannot exceed the structural inspection aid ceiling. The inspection aid ceiling is based on a maximum cost allowance per square foot, adjusted by the commissioner on the basis of an index number reflecting changes in the costs of labor and materials. The aid can only be received if no state aid claim for the inspection of such building has been submitted within the five years prior to the submission of a claim.. Most school districts claimed aid in 2005-06 and 2006-07 and will therefore claim aid again in 2010-11 and 2011-12 for base year expenses.

9. Base year expenditures for certain capital outlay projects.

   Beginning with 2002-03 capital expenses for 2003-04 aid, districts may receive reimbursement for base year capital outlay expenses for projects that are wholly funded through capital outlay and which fall into one of the following three categories:

1. A project with a total cost of no more than $100,000. A district may receive aid for a maximum of one such project in any aid year. A district may spend and report the capital expense for such a project over multiple years, and receive aid on the same project over multiple years; however, only one project per year can receive aid.
2. A construction emergency project. A construction emergency project is a project that is necessary to provide immediate repairs in order to eliminate or mitigate hazards that threaten the health and/or safety of the building's occupants as a result of either the unanticipated discovery of hazardous substances such as asbestos, or significant damage caused by a fire, snow storm, ice storm, excessive rain, high winds, flood or a similar catastrophic event. An emergency project may be carried out prior to receipt of Commissioner's approval, but in order to be eligible for State Aid the project must receive approval from the SED Office of Facilities Planning.
3. A project that if bonded, would cause a small city school district to exceed 95% of its constitutional debt limit.

The appropriate building aid ratio will be applied to approved project expenses to determine aid. Capital outlay expenses for projects in these categories are not eligible for Reorganization Incentive Aid. .

Click here for more information on Capital Outlay Exception Aid: http://stateaid.nysed.gov/build/capexc_aid.htm

10. Assumed expenditures associated with capital outlay expense incurred after 6/30/02, for projects approved by the commissioner on or before 6/30/02.

    Beginning with the 2003-04 aid year, and 2002-03 capital outlay expenditures, Building Aid no longer reimburses districts for approved capital outlay expenditures made in the base year. Capital outlay expenditures incurred after June 30, 2002, for projects approved by SED before 7/1/02, have been amortized, without interest, and aid is being paid out over the life of the project according to an assumed schedule. Building Aid on the amortized capital outlay was first paid in the 2004-05 aid year.  Building Aid on the amortized capital outlay was first  paid in  the 2004-05 aid year. (Click below for detailed calculation information:  http://stateaid.nysed.gov/Am%20cap%20for%20web%201-04.htm

    An additional apportionment is available for school districts educating pupils residing on Indian reservations, in an amount representing the actual per pupil cost within the cost allowance assigned to Native American pupils.

    Aid in all of the above categories is paid to districts according to the General Aid payment schedule 3609-a. For categories 1 through 10, aid is based on the approved aidable expenditures multiplied by a building aid ratio. The building aid ratios are explained in the next section.

Building Aid Calculation

State Aid is paid on a building project only up to the total approved cost allowance. Total approved cost allowance is the sum of the construction cost allowance plus the incidental cost allowance.

The Building Aid formula =

Aidable Building Expense X Building Aid Ratio

The calculation of the current year Building Aid ratio =

1.000 - (2004, AV/2005-06 RWADA X 0.51) / $510,000 (State Average full value per RWADA)

Aidable building expense = aidable expense from each of the expense categories listed and described above.

Note that 0.51 is the local share for districts of average wealth (i.e., district average full value per pupil equals the State average ($510,000). For districts of average wealth the State share is 0.49. For property wealthy districts the State share would be smaller, and for property poor districts the State share would be larger. The maximum state share/Building Aid ratio is 0.95 for most districts, and .98 for certain high need districts as described below.

Applicable State Share Ratios for Building Aid

• 2007-08 State Share Ratio for building projects approved by the voters prior to July 1, 1998: The higher of the calculated 2007-08 current year Building Aid ratio or the selected Building Aid ratio for aids payable in 2006-07.  (Selected 2006-07 aid ratio = the highest Building Aid ratio of any aid year from 1981-82 through 2005-06.)
  
  
• 2007-08 State Share Ratio for building projects approved by the voters on or after July 1, 1998, but before July 1, 2000: The 2007-08 state share ratio for these projects is computed by selecting the higher of the calculated current year Building Aid ratio or the selected Building Aid ratio for aids payable in 2006-07. This selected state share ratio is then enhanced by an additional incentive apportionment of 10 percent of approved building expenses.  The sum of this additional incentive aid, Regular Building Aid, and Reorganization Incentive Building Aid, however, cannot exceed 95 percent of the approved building expenses. The 10% incentive is not payable for energy performance contracts that are not voter approved, aid on security cameras and other security/safety devices or Building Condition Survey Aid.
  
  
• 2007-08 State Share Ratio for building projects approved by the voters on or after July 1, 2000: The 2007-08 state share ratio for these projects is computed by selecting the higher of a)  of the calculated current year Building Aid ratio  or b)the remainder of the selected Building Aid ratio for aids payable in 1999-00 minus 10 percent or c) for districts with a pupil wealth ratio greater than 2.5 and an alternate pupil wealth ratio less than 0.85 in the 2000-01 aid year, for projects with a voter approval date between 7/1/05 and 6/30/07: 1.263 multiplied by the State sharing ratio. This final, selected ratio is then enhanced by an additional incentive apportionment of 10 percent of approved building expenses.  The sum of this additional incentive aid, Regular Building Aid, and Reorganization Incentive Building Aid, however, cannot exceed 95 percent of the approved building expenses.  Please note that for projects that are not approved by the voters and are not emergency projects, such as energy performance contracts, this additional incentive aid is not payable.
  
  
• High Need Supplemental Building Aid Ratio (HNSBAR) for identified high needs districts with projects approved by the voters on or after July 1, 2005 and for aid on lease expense, building condition survey expense, and capital outlay exception expenses; i.e., projects less than $100,001, emergency projects: For projects eligible to be aided by the HNSBAR, the maximum aid ratio is 98%; the maximum remains 95% for all other projects. .Click here for more information on the HNSBAR http://stateaid.nysed.gov/build/hnsbar_060805.htm
  

In order to receive Building Aid on energy performance contracts, the estimated Building Aid payable must be excluded in determining the cost savings under the contract and the contractor must guarantee recovery of the contract costs by the school district from energy savings realized during the term of the contract which cannot exceed 18 years. Aid payable on energy performance contracts is based on the rules of assumed amortization as described above, depending on whether the contract is identified as retro or prospective. All prospective energy performance contracts are amortized over a 15-year period.

D. EXPANDING OUR CHILDREN’S EDUCATION AND LEARNING (EXCEL)
[Chapter 61 of the Laws of 2006 as amended by Chapter 57 of the Laws of 2007]
(Total Program Allocation = $2.6 Billion)

EXCEL provides additional funding for certain types of school construction projects. To support this program, the Dormitory Authority of the State of NY (DASNY) is authorized to issue a maximum of $2.6 billion in bonds and notes: a maximum of $1.8 billion for NYC and a maximum of $0.8 billion for other districts.

An eligible EXCEL project is a project that:

1. has been reviewed by Facilities Planning and approved as an EXCEL project;
2. did not have an SA-139 on file with SED before April 1, 2006 and
3. falls within one or more of the following categories:
   • Education technology
   • Health and Safety
   • Accessibility
   • Physical capacity expansion or school construction
   • Energy

The maximum additional apportionment (MAA) is calculated as follows for districts other than NYC:

For districts eligible for the High Need Supplemental Building Aid Ratio (HNSBAR):

2005 enrollment (as it appears on the SA0607 computer run) X $778.22

For any other eligible district:

2005 enrollment (as it appears on the SA0607 computer run) X $320.46

EXCEL funds may be used in addition to Building Aid as long as the sum of apportionments under Building Aid and EXCEL funds applied to the project do not exceed the total project cost. EXCEL funds may also be used in lieu of Building Aid. If a district chooses to receive EXCEL funds in addition to Building Aid, Building Aid will be paid on the full approved project cost; i.e., receipt of EXCEL funds will not reduce the Building Aid apportionment. If a district chooses to receive EXCEL funds in lieu of Building Aid, no Building Aid will be calculated for the project. There is no 95% or 98% cap on the portion of project cost that can be supported by State funds; i.e., EXCEL Aid can be applied to the difference between approved project cost and total project cost such that it is possible in some instances for there to be no local share.

Click on these links for more information on EXCEL:
http://stateaid.nysed.gov/build/excel_update_memo_052507.pdf
http://stateaid.nysed.gov/build/excel_memo_052507.pdf
http://stateaid.nysed.gov/excel_memo_062606.pdf
http://stateaid.nysed.gov/excel_0607.htm
http://stateaid.nysed.gov/max_excel_for_web_031407.xls

E. REORGANIZATION INCENTIVE AID
[Section 3602(14) of the Education Law]

Two forms of incentive aid to encourage school district reorganizations into more effective and efficient units are available.

1.REORGANIZATION INCENTIVE OPERATING AID
[Section 3602(14) (d) and (d-1) of the Education Law]
(2007-08 Estimated Total = $0.0 Million)

For school districts that reorganize after July 1, 2007, Incentive Operating Aid is available for 14 years beginning with the first school year of operation as a reorganized district. 

Incentive Operating Aid for the first five years of operation as a reorganized district =

.40  X  (2006-07 Selected Operating Aid per Pupil X Total Aidable Pupil Units)

For purposes of this aid, the 2006-07 Selected Operating Aid per Pupil X TAPU is the amount frozen as of the date upon which a data file was created for the 2/15/07 State Aid Estimates;[5] that is, it will not be recalculated again during the 14 years a reorganized district receives this aid.  After receiving Reorganization Incentive Operating Aid for 5 years, the additional 40% apportionment will be reduced by 4 percentage points each year until the apportionment reaches 0 in the fifteenth year of reorganization. The sum of  Selected Operating Aid per pupil  X  TAPU and Incentive Operating Aid may not exceed 95 percent of the district's Approved Operating Expense used for aid calculations in the current school year.

:

2.REORGANIZATION INCENTIVE BUILDING AID
[Section 3602(14) of the Education Law]
(2007-08 Estimated Total = $14.8 Million)

Incentive Building Aid is 25 percent of the Building Aid otherwise paid on an approved building project for districts that reorganized prior to July 1, 1983. Aid is paid on such projects for which the general construction contract is signed prior to July 1, 2008 or within 10 years from the effective date of reorganization, whichever is later. For school districts that reorganized on or after July 1, 1983, Incentive Building Aid is 30 percent of the Building Aid otherwise paid on an approved building project. Aid is paid on such projects for which the general construction contract is signed prior to July 1, 2008 or within 10 years from the effective date of the reorganization, whichever is later. In no case, however, may the sum of regular Building Aid (including the 10% Incentive Aid) and Incentive Building Aid exceed 95 percent of approved building expenditures in these areas, or 98 percent for districts eligible for the high needs supplemental building aid ratio as described on the previous page.

Note:  There is no Reorganization Incentive Building Aid for expenses associated with the refinancing of retro projects that are reimbursed by the State at a rate of 100%.

• Please refer to the 2006-07 State Aid Handbook for a detailed explanation of how Operating Aid was calculated prior to its repeal in 2007-08.
  
  
  

F. TRANSPORTATION AID (NON-CAPITAL ONLY)
[Section 3602(7) of the Education Law]
(2007-08 Estimated Total = $1,369.2 Million (including Summer Transportation Aid)

Transportation Aid is based on a district's approved transportation non-capital expenses. Approved transportation expenses are generally those made in transporting all pupils to and from school once daily and between the school attended and Boards of Cooperative Educational Services, or in transporting pupils to approved shared programs at other school districts or occupational education programs within a district. They include expenditures for the operation of a school district transportation supervisor's office, and for operation of district-owned buses, contract buses, and public service vehicles (subway included).

The process of sorting expenditures is summarized as follows:

1. Determine those transportation expenses which are deducted from total operating expenditures to insure they do not generate any other aid;
2. Determine which of the transportation expenses can be used as approved transportation expenses to generate Transportation Aid.

Transportation expenses approved for Transportation Aid include only those incurred in transporting allowable pupils on approved buses, over approved routes. A non-allowable pupil decimal based on an historical record of pupils is used as a substitute for the actual deductible cost of non-allowable pupil miles and also is applied to the purchase of buses. This decimal must be recomputed every three years, or when district transportation policy revisions require a recalculation. Pupils attending a universal pre-kindergarten program pursuant to Section 3602-e of the Education Law who are transported using available vacant seats on existing bus routes will not increase the non-allowable pupil deduction.

Examples of non-allowable pupils are: non-disabled pupils who live 1 1/2 miles or less from the school attended (unless the pupil lives within an approved, designated child safety zone), and non-disabled pupils transported to public schools outside the district of residence when classes are maintained by the district of residence.

Expenditures for transportation services provided for field trips, athletic trips, excursions, and noon trips for lunch, cannot be used to generate Transportation Aid. The expenses for such trips are pro-rated on the basis of route mileage. Expenditures for operating late bus trips to transport pupils who stay late for club or athletic activities are aidable approved transportation expenses.

Pursuant to Education Law 3622-a(6), transportation services provided to academic summer schools operated by the school district during the summer of 2001 and thereafter are aidable transportation expenses for aid payable in 2002-03 and thereafter. However, if the total statewide apportionment attributable to allowable summer transportation expenses exceeds $5,000,000, individual school district allocations will be prorated to ensure that the apportionment for summer transportation does not exceed $5,000,000. The prorated apportionment for summer transportation becomes final and not subject to change as of September 1 of the school year immediately following the aid year in which aid was paid; e.g., 9/1/08 for 2007-08 aid.

Transportation contracts must be filed with the Education Department within 120 days of start of service in order to generate full Transportation Aid. Only contract expenditures up to the amount stipulated in the contract, and within reasonable cost guidelines developed by the State Education Department, may be allowed for aid purposes. Section 3625(1) of the Education Law also requires that every transportation contract be submitted to the superintendent of schools for approval before such contract is filed with the Department.

Click here for a complete list of aidable and non-aidable transportation expenses.

The formula for calculating Transportation Aid is:

Approved Transportation Expenses X [Selected Sharing Ratio + Sparsity Factor]

Districts may select the higher of the following three sharing ratios for use in the formula: (Cities with a population of more than one million may not use Sharing Ratio 3)

1) Sharing Ratio 1 = 1.263 X Formula Operating Aid Sharing Ratio

2) Sharing Ratio 2 = 1.010 -    [2004 Selected FV/2005-06 RWADA   X   0.460]
                                                            510,000 (State Average)

3)Sharing Ratio 3 =  1.010 -    [2004 Selected FV/2005-06 RPNPª     X 0.460]
                                                           445,300 (State Average)]

The sparsity factor (minimum = 0) is calculated as follows and is added to the selected sharing ratio to determine the State Share Ratio for Transportation Aid:

21.000 - Fall 2004 Enrollment per Square Mile
317.88

The sum of the Selected Sharing Ratio and the sparsity factor cannot be less than 6.5 percent and cannot exceed 90 percent.



G. AID ON TRANSPORTATION CAPITAL EXPENSE
[Section 3602(7) of the Education Law
(2007-08 Estimated Total = $54.4 Million)

Chapter 57 of the Laws of 2004 established a new method of apportioning Transportation Capital Aid. For aid years 2004-05 and prior, State Aid partially reimbursed districts for their actual approved debt service expenditures for approved buses based on the actual amortization schedules associated with their borrowings. Districts also were partially reimbursed for actual base year transportation equipment, lease and garage rental expenses. Beginning with the 2005-06 aid year, aid on all types of transportation capital expense is paid based on assumed amortization schedules using a statewide average interest rate. The following categories of transportation capital expenditures are eligible for Transportation Aid:

1. Retro assumed debt service expenditures associated with bus borrowings with principal outstanding as of July 1, 2004
2. Retro assumed debt service expenditures associated with bus leases and garage rentals with payments remaining as of July 1, 2005 (i.e., leases beginning before 7/1/05)
3. Retro 0405 assumed debt service expenditures associated with the approved cost of a) buses with purchase order (PO) date between 7/1/03 and 6/30/04, but for which no borrowing was reported to SED and for which the first payment was not made until on or after 7/1/04 and b) all buses with purchase order date between 7/1/04 and 6/30/05
4. Prospective assumed debt service expenditures associated with the approved cost of a)buses with purchase order date on or after 7/1/05 and b)leases beginning on or after 7/1/05
5. Prospective assumed debt service expenditures associated with aidable transportation equipment purchases
6. In 2005-06 and 2006-07 only, assumed debt service expenditures for excess of 2003-04 actual bus purchase/lease expenses over estimated 2003-04 bus purchase/lease expenses on file with SED by November 15, 2003

The categories listed above are described in detail below:

1. Retro assumed debt service expenditures associated with bus borrowings with principal outstanding as of 7/1/04.
   
   For each existing debt issuance associated with retro bus purchases, an assumed amortization schedule was created based on:

• The principal remaining for each bus borrowing issued before 7/1/04, calculated by subtracting all cash and principal payments made on the borrowing through 6/30/04 from the total net cost of the buses associated with the borrowing
• A remaining life equal to the number of years resulting from the following calculation: 5yrs - (7/1/05 - borrowing date), rounded to the nearest year; borrowings with a remaining principal but a calculated term of 0 or less years are assigned an amortization term of .5 years (the equivalent of one assumed payment)
• A statewide average interest rate calculated using the principal and interest payments for all bonds and BANS issued in the year prior to the aid year; e.g., assumed amortizations beginning in the 2006-07 aid year will be based on bus borrowings issued between 7/1/05 and 6/30/06.

Equal semiannual assumed payments of principal and interest. For existing borrowings, the first two semiannual payments are assumed to occur in the 2005-06 school year, generating aid in that school year

2. Retro assumed debt service expenditures associated with bus leases and garage rentals with payments remaining as of July 1, 2005 (i.e., leases beginning before 7/1/05).
   
   For each approved lease beginning before 7/1/05, with payments remaining as of July 1, 2005, an assumed amortization schedule is created based on:

• The amount of the remaining lease payments
• A term equal to the number of years remaining on the lease; five years for leases beginning between 7/1/04 and 6/30/05
• A statewide average interest rate calculated using the principal and interest payments for all bonds and BANS issued in the year prior to the aid year; e.g., assumed amortizations beginning in the 2007-08 aid year will be based on bus borrowings issued between 7/1/06 and 6/30/07. (Click here for a mathematical explanation of the interest rate calculation: http://stateaid.nysed.gov/statewide_int_rate_calc_tetherdoc12-24-04.htm)
• Equal semiannual assumed payments of principal and interest. The first semiannual payments are assumed to occur in the 2005-06 school year, generating aid in that school year.

3. Retro 0405 assumed debt service expenditures associated with the approved cost of a) buses with purchase order date between 7/1/03 and 6/30/04, but for which no borrowing was reported to SED and for which the first payment was not made until on or after 7/1/04 and b) all buses with purchase order date between 7/1/04 and 6/30/05.
   
   For each bus purchased, as determined by the purchase order date, an assumed amortization schedule is created based on:

• The approved cost for each bus
• A remaining life resulting from the following calculation: 5yrs - (7/1/05 - purchase order date), rounded to the nearest year;
• A statewide average interest rate calculated using the principal and interest payments for all bonds and BANS issued in the year prior to the aid year; e.g., the rate applied to assumed amortizations beginning in the 2005-06 aid year will be based on bus borrowings issued between 7/1/04 and 6/30/05;
• Equal semiannual assumed payments of principal and interest. The first semiannual payments are assumed to occur in the 2005-06 school year, generating aid in that school year.

4. Prospective assumed debt service expenditures associated with the approved cost of a) buses with a purchase order date on or after 7/1/05 and b) bus/garage leases beginning on or after 7/1/05
   Prospective bus purchases are those buses purchased on or after July 1, 2005. Prospective bus or garage leases are those leases beginning on or after July 1, 2005 as determined by information provided on leases approved by the Office of Management Services. Aidable debt service expenditures for prospective bus purchases and leases will be based on assumed amortization schedules that begin 12 months after the purchase order date or lease begin date, respectively. For each prospective bus or lease, an assumed amortization schedule will be generated based on:

• Approved cost of each bus purchased on or after 7/1/05 or in the case of leases, the total lease amount approved by the Office of Management Services
• A statewide average interest rate calculated using the principal and interest payments for all bonds and BANS issued in the year prior to the aid year; e.g., prospective assumed amortizations beginning in the 2006-07 aid year will be based on bus borrowings issued between 7/1/05 and 6/30/06; (Click here for a mathematical explanation of the interest rate calculation.)
• A term of 5 years
• Equal semiannual assumed payments of principal and interest. For example, 2006-07 assumed debt service for a bus with a PO date between 7/1/05 and 12/31/05 will be based on two assumed payments of principal and interest; assumed debt service for a bus purchased on or after 1/1/06 will be based on one assumed payment of principal and interest. Although there are two assumed payments per year for purposes of establishing an assumed amortization schedule, actual Transportation Aid paid on prospective bus purchases/leases is part of regular Transportation Aid and is paid to districts as part of the 3609-a General Aid payment schedule.

Note: An assumed amortization schedule for a prospective bus purchase or lease is not generated, and aid does not begin to be paid on the bus purchase or bus lease, until 12 months after the purchase order date or lease begin date.

5. The prospective assumed debt service expenditures associated with transportation equipment purchases.
   Assumed amortization schedules for transportation equipment purchases are the same as those for prospective bus purchases/leases, except that all assumed debt service expense for an aid year will be based on two equal semiannual payments of principal and interest, regardless of the actual purchase date of the equipment. In other words, the purchase order date for all equipment purchased in a given school year is assumed to be July 1 of the school year. The amortization of the equipment purchase amount will begin one year later.
   
   
6. In 2005-06 and 2006-07 only, assumed debt service expenditures for excess of 2003-04 actual bus purchase/lease expenses over estimated 2003-04 bus purchase/lease expenses on file with SED by November 15, 2003.
   Prior to the implementation of assumed amortization, any excess 2003-04 expense not aided in 2004-05 would have become an aidable expense for 2005-06 Transportation Aid. Under assumed amortization, the 2003-04 excess expense will still be aided, but it will be amortized over two years, at the statewide average interest rate. Beginning with 2005-06 data collection due to SED on September 2, 2005, no annual expense will be reported on Form F, and the November 15 date certain will no longer be in effect.

Notes:
For every aidable assumed debt service expense category listed in this section, aid is determined by multiplying aidable expenses by the district's selected transportation aid ratio for the current aid year.
Although there are two assumed payments per year for purposes of establishing an assumed amortization schedule, Transportation Aid is still paid to districts as part of the 3609-a General Aid payment schedule.

H. SPECIAL SERVICES AID FOR FIVE LARGE CITY SCHOOL DISTRICTS AND
NON-COMPONENTS OF BOCES
[Section 3602(10) of the Education Law
(2007-08 Estimated Total = $130.7 Million)

These special aids are provided to the five large city school districts (Buffalo, Rochester, Syracuse, Yonkers and New York City), and any other school district that was not a component of a board of cooperative educational services (BOCES) in the base year, in lieu of aid payable to other school districts for career education and administrative uses of technology purchased as shared services and aided through BOCES. A school district receiving aid under this category may not claim BOCES Aid for similar services/purchases.

1. AID FOR CAREER EDUCATION
[Section 3602(10) of the Education Law]
(2007-08 Estimated Aid = $93.7 Million)

The city school districts having a population in excess of one hundred twenty-five thousand (New York City, Buffalo, Rochester, Syracuse, Yonkers) and any other school district that was not a component of a BOCES in the base year are entitled to aid for certain career education pupils in grades 10-12. Aid per pupil equals the career education aid ratio multiplied by $3,900.

The formula for calculating Career Education Aid is:

$3,900 X Career Education Aid Ratio X 2006-07 Weighted Career Education Pupils

Weighted pupils is defined as the sum of the attendance of students in grades 10-12 in career education sequences in trade, industrial, technical, agricultural or health programs plus 0.16 multiplied by the attendance of students in grades 10-12 in career education sequences in business and marketing.

The aid ratio is obtained as follows:

1.000 - (CWR X 0.59) = Aid Ratio (minimum aid ratio = 0.360)

 

2. COMPUTER ADMINISTRATION AID
[Section 3602(10)(c) of the Education Law]
(2007-08 Estimated Aid = $37.0 Million)

The large city school districts and any other school district that was not a component of a BOCES in the base year are entitled to aid for approved expenses for data processing pursuant to regulations of the Commissioner.

The formula for this aid is:

Aid Ratio X the lesser of: Base Year Expenses or $62.30 X the 2006 Fall Public School Enrollment of the district in grades K-12

The aid ratio equals:

1.000 - (CWR X 0.51) (minimum aid ratio = 0.300)

Eligible computer services include:

1. the following services related to pupil records: maintenance and reporting of basic student data, maintenance and reporting of attendance, test scoring and reporting and student scheduling;
2. the following services related to employee records: maintenance and reporting of attendance and substitute teacher scheduling;
3. the following services related to central business administration: accounting, recordkeeping, payroll information and retirement systems records;
4. administrative costs actually incurred, up to a maximum of five percent of the cost of all other approved services.

I. AIDS FOR EDUCATIONAL TECHNOLOGY

1. INSTRUCTIONAL COMPUTER HARDWARE AND TECHNOLOGY EQUIPMENT AID
   [Sections 753 and 754 of the Education Law]
   (2007-08 Estimated Aid = $37.4 Million)

School districts are eligible for aid for the purchase or lease of micro and/or mini computer equipment or terminals for instructional purposes. Aid is equal to the lesser of the approved expenditures, or

$24.20 X RWADA aid ratio for the current year X Pupils attending schools within the public school district’s boundaries and enrolled during   the base year in grades K-12 in a public school district or nonpublic school.

Approved expenses are those incurred in the base year as reported on the Annual Financial Report of the school district. Up to twenty percent of the district's maximum allocation may be for hardware repair and/or staff development related to use of computer technology. Expenditures up to the amount of maximum aid may be included by the board of education in a contingency budget.

The RWADA aid ratio = 1.000 -[ (2004 Selected FV/2005-06 RWADA) X] 0.51
                         $510,000

Pursuant to Section 754 of the Education Law, beginning in 2007-08, public school districts must loan computer hardware and equipment to nonpublic school students.

Click here for more information on hardware aid and the loan of hardware and equipment to nonpublic students.
http://stateaid.nysed.gov/hw_equipment/hw_loan_cmpr_060607.htm
http://stateaid.nysed.gov/hw_equipment/hw_loan_req_060607.htm

2. AID FOR COMPUTER SOFTWARE PURCHASES
[Section 751 and 752 of the Education Law]
(2007-08 Estimated Aid = $46.6 Million)

Each public school district may claim a maximum apportionment of Computer Software Aid equal to the product of $14.98 multiplied by the number of pupils attending schools within the public school district's boundaries and enrolled during the base year in grades K-12 in a public school district or nonpublic school. Each public school district is required to use such funds to purchase and loan computer software for instructional purposes on an equitable basis to both public and nonpublic school students attending schools within the district's boundaries during the current school year. Aid is equal to the lesser of the maximum apportionment or the actual expenditures incurred by the school district for software purchases during base year as reported on the Annual Financial Report of the school district.

The amount of aid calculated pursuant to this formula is considered final and not subject to change after April 30 of the claim year.

3. BUILDING AID FOR COMPUTER TECHNOLOGY
[Section 3602(6) of the Education Law]
(2007-08 Estimated Aid is Included in Building Aid)