Attachment G

Draft Bill Language

Definitions, Part 1 – District Funding Target

Base Cost (BC): The Base Cost is the 2001-2002 actual average cost of raising student performance by one level, in regionally adjusted dollars, for districts testing at least 100 students on ELA 4^th and 8^th and Math 4^th and 8^thgrade exams. This was calculated at $4,007 per pupil. This amount, or another amount established by the Commissioner of Education by February 15^th of any year using a similar method must be indexed annually based on school cost inflation to represent the cost level of the aid year.

Lag Adjustment: This is the inflationary adjustment in NYS education costs between the last base cost and the aid year to be established annually by the Commissioner of Education. A three-year adjustment is necessary between the $4,007 from 2001-02 to 2004-05. An annual inflation of 4% would result in a lag adjustment of 1.1249.

Adjusted Base Cost (ABC): This is the product of the Base Cost times the Lag Adjustment. ($4,007 X 1.1249 = $4,507)

Performance Target: This is the average level of achievement desired minus one. To achieve an average level of 2.8 a gain of 1.8 levels is needed over level one.

Foundation Level (Aid Ceiling): This is the product of the Performance Target times the Adjusted Base Cost. ($4,507 x 1.8 = $8,113)

Adjusted Enrollment: This is the K-12 BEDS enrollment for the year prior to the aid year less, one-half of the half-day Kindergarten enrollment for the year prior to the base year. This basis might be adjusted upward for growth or stabilized by a two-year average for districts with declining enrollment.

Poverty Weighted Pupils: This is the product of the K-6 free and reduced lunch percent for the year prior to the aid year times the Adjusted Enrollment times the poverty weight of 1.0905.

Regional Cost Factor: This is the ratio of the cost levels within each region to the cost level of the lowest cost region in the state, as established by the Commissioner of Education.

Regional Cost Weighted Pupils: This is the product of the Adjusted Enrollment and the district’s regional cost factor minus 1.00.

Size Correction (Sparsity) Weighted Pupils: For districts with fewer than 25 pupils per square mile, this is .5 times the positive difference, if any, calculated by subtracting the greater of 500 or the district adjusted enrollment from 1,500.

Limited English Weighted Pupils: This is the product of .199 times the number of such pupils in the year prior to the base year.

Total Weighted Enrollment: This is the sum of the Adjusted Enrollment plus the Poverty Weighted Pupils plus the Regional Cost Weighted Pupils plus the Sparsity Weighted Pupils plus the Limited English Weighted Pupils.

District Funding Target: This is the product of each district’s Total Weighted Enrollment times the Foundation Level (Aid Ceiling).

Definitions, Part 2 – Local and Non-Local Shares of Funding Target

Total Property Wealth Pupils: This is the Total Weighted Enrollment less nonresident enrollment plus resident students educated in other school districts.

Property Wealth per Pupil: This is the total actual value of property from two years prior to the aid year divided by the Total Property Wealth Pupils.

District Property Wealth Ratio: This is the ratio of the district Property Wealth per Pupil to the state average property wealth per pupil established by the Commissioner of Education using the sum values of all districts.

Total Income Wealth Pupils: This is the sum of the total Property Wealth Pupils plus the resident nonpublic enrollment of the district.

Income Wealth per Pupil: This is the total adjusted gross income from two years prior to the aid year divided by the Total Property Wealth Pupils.

District Income Wealth Ratio: This is the ratio of the district Income Wealth per Pupil to the state average income wealth per pupil established by the Commissioner of Education using the sum values of all districts.

Combined Wealth Ratio: This is the average of the Property Wealth Ratio and the Income Wealth Ratio.

Local Share of Education Costs: This is the product of .4828 times the local district combined wealth ratio. For districts with a combined wealth ratio greater than 2.072, this will generate a local share greater than 1.000 indicating that the local wealth is sufficient to fund more than the District Funding Target solely from local resources.

State and Federal (Non-Local) Share of Education Costs: This is the local share subtracted from 1.000. For districts with a combined wealth ratio greater than 2.072, this will generate a Non-Local share less than zero, indicating that the local wealth is sufficient to fund more than the District Funding Target solely from local resources.

Definitions, Part 3 – State Aids

Other Resources: This is the sum of non-competitive local allocations provided under Federal Statutes to improve K-12 education, such as NCLB and IDEA and non-competitive local allocations provided under state statutes to improve K-12 education, such as state Magnet Schools, Improving Pupil Performance, Class Size Reduction, and others. Funds provided under competitive grants, funds for pre-kindergarten education and funds provided for non-educational purposes as determined by the Commissioner of Education are not included as Other Resources.

Base Year State Aid: This is the sum of all 2003-2004 general fund computerized aids EXCEPT Building Aid, Reorganization Incentive Aids and Growth Aid.

State Aid Adequacy Level: This is the positive or negative difference obtained by subtracting the Local Share and the Other Resources from the District Target Funding.

Minimum Aid: This is the positive difference, if any, derived from subtracting the State Aid Adequacy Level from zero.

Save-Harmless Aid: This is the positive difference, if any, derived from subtracting the Local Share, Other Resources and Minimum Aid from the Base Year Aid Level.

Funding Gap: This is the positive difference, if any, derived from subtracting the Base Year Aid from the State Aid Adequacy Level.

State Aid Payable: This is the greater of 1): lesser of a) Base-Year Aid times 1.15 or b) the Funding Gap divided by 5; or 2): the sum of minimum aid plus save-harmless aid.

Changes in Provisions for Budget Adoption

For all school districts containing schools designated as being under registration review (SURR), or containing schools designated as being in need of improvement (SINI), either for the current year or for the prior year, the proposed annual school budget or, in the case of cities exceeding 125,000 residents, the approved budget, must at least equal the lesser of the following:

1) The District Funding Target for the aid year less the current year Other Resources as established by the Commissioner of Education, or

2) The current year budget, plus the increase in state aid provided above divided by the State Share

A board of education failing to adopt a budget meeting the above requirements will be subject to removal by the Commissioner of Education.

Should the voters fail to approve such budget two times, in a district requiring voter approval, the total amount calculated above shall constitute the minimum amount of a contingency budget to be adopted by the board of Education unless the district would be eligible for a higher amount under existing law, in which case the board of Education may adopt either method of determining the annual budget.