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January 2003 Vol. XVII, No. 1                  

Association board meets with Governor's office 
and division of budget

 The Association’s board of directors met with Carol Stone, director of the division of budget, and Jeffrey Lovell, assistant secretary to the governor for education on November 22nd to discuss small city districts concerns regarding the 2003- 2004 state budget. In attendance was Dr. Ronald Friedman, Long Beach Superintendent, Teresa Bennett Plattsburgh board member, Joan Purtell, Binghamton board member, Sandra Lockwood, Rome board member, Vito DiCesare, Beacon superintendent, Thomas McGowan, Glens Falls superintendent, Michael Egan, Fulton superintendent, Dr. Peter Tamburro Oneida superintendent, Sue Skidmore, Elmira board member, and Norma Barton, Canandaigua board member.

 The board presented its summary of recommendations for the executive budget for 2003- 2004 which advocates greater equity in state aid distribution, an increase in Hurd aid, charter school finance reform, contingency budget cap reform, debt ceiling reform and elimination of the two-year lag in payment of uncollected taxes among other things.

 The board stressed that over the last six years small city school districts received in the below average aid increases: 48 percent to 53 percent (total computerized aids minus transportation and building aids).  This would translate into a $50 million increase in state aid for small city districts in the current year alone.  Moreover, when Hurd aid is considered, the gap is even greater.  With an enormous state budget deficit looming, aid to education must be used cost effectively and therefore must be directed to those districts with the greatest need.  The board stated that manipulation of the state aid formula in recent years has prevented the necessary targeting of aid.

 The governor's office and the division of budget indicated that, while there would be no midyear aid reduction, the coming year would be very difficult and the executive was looking for ways to cut education costs.  They invited the association to contribute suggestions giving mandate and fiscal relief to school districts.  The board agreed to develop proposals in the near future.

  

Regents propose major state aid reforms                 

The Regents have asked for a modest 3.5% overall increase in general aid yet proposed a sweeping consolidation and overhaul of almost all of the major formulas.  Of the $516 million overall increase, they indicate that 76% goes to high need districts.

 

Aid Category

Current

Proposed

Dollar

Percent

2002-03

2003-04

Change

Change

Comprehensive Operating Aid

      7,251

      7,459

        208

2.9%

Gap Aid

      1,175

      1,318

        143

12.2%

Aids for Students w/Disabilities

      2,353

      2,410

          57

2.4%

BOCES & Special Services

        624

        695

          71

11.4%

Instructional Materials

        255

        266

          11

4.3%

Transportation

        997

      1,146

        149

14.9%

Building Aid

      1,160

      1,100

         (60)

-5.2%

Small City Aid

          82

          76

           (6)

-7.3%

Other Computerized Aid

        188

        175

         (13)

-6.9%

Total Computerized Aid

    14,085

    14,645

        560

4.0%

All Other Aids

        460

        416

         (44)

-9.6%

Total General Aid

    14,545

    15,061

        516

3.5%

 Major changes include:

  • Eight formulas are consolidated with Operating Aid, with an increase in the aid ceiling from $3,900 to $4,600, an enrollment based pupil count that includes pre-kindergarten pupils, and a regional cost index.  Increases are capped for many districts, but the proposal would allow decreases for other districts. Districts with average or above average local effort are guaranteed 95% of the 2002-2003 aid, whereas those with less than average effort will receive at least 85% of their 2002-2003 aid.
  • Five formulas are consolidated into Gap Aid
  • Textbook, Software and Library Materials Aids would be consolidated for greater flexibility.
  • Public Excess Cost Aid is adjusted to provide a greater incentive to districts to place students in integrated settings.
  • BOCES Aid is better targeted by changing the millage aid ratio, an option used by wealthier districts. This produces a zero increase in BOCES Aid overall.
  • Special Services Aid for non-components of BOCES is enhanced to become more comparable with BOCES Aid.

 As is usual with the Regents proposal, no district-by-district results were released.  However, these changes should produce overall losses for high wealth/low poverty districts and gains higher than normal cost increases for low wealth/high poverty districts.  This is precisely the type of aid distribution that is necessary to improve equity when resources are unusually scarce.  It is a surprising and courageous move for the Regents to propose aid cuts in order to re-target existing funds.

 Board meeting held on November 22, 2002

 The Board of Directors held its fall meeting in the office of DeGraff-Foy in Albany on November 22, 2002 following the meetings with Jeff Lovell and Carol Stone.  The 2003 legislative session was previewed and the association's legislative priorities were discussed.  Among matters covered was the mid state consortium proposal for state aid reforms.  To assist the board in this discussion, Charles Winters, association consultant for state aid and school finance, was invited to attend the meeting.  Charlie reviewed the consortium proposal, pointing out both its strengths and weaknesses.  Charlie commended the consortium for its efforts to revise a highly complex education aid formula.  He observed that the proposal’s reliance on real property values as the sole measure of district wealth undermined the overall equity of aid distribution.  The board agreed that it would communicate with the consortium to convey this and other concerns.

The board discussed the need to monitor developments in the implementation of the new federal law entitled the "no child left behind act (NCLB)". The act principally affects districts which are highly dependent on title I money.  Therefore, most small cities will be greatly concerned over the implications of the no child left behind act.  The board will open a line of communication with the state education department committee on the NCLB and will thereby be able to keep the association advised on a current basis.

 It was also agreed that the board would meet with Senator Hillary Clinton's capital region office to explore ways of collaborating with regard to the issues of character education and the no child left behind act.  It was suggested that a new approach be used and that the economic benefit of character education be demonstrated.  It was surmised that using the state education department’s data and an association survey of violence and discipline costs that the case could be made.

 DATES TO REMEMBER

 January 12, 2003                            Association Board Meeting at NYSSBA Mid-Winter Conference

March 24, 2003                            Legislative Breakfast and Seminar at Fort Orange Club, Albany

May/June                                 Association Board Meeting (Tentative)

August 10 and 11, 2003              Summer Conference, Annual Meeting and Board Meeting

 

 

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•
Beacon
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•
Cohoes
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Cortland
•
Dunkirk
•
Elmira
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•
Gloversville
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Johnstown
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Little Falls
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Mechanicville
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New Rochelle
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Niagara Falls
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Olean
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Rensselaer
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Rome 
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