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February 2004 Vol. XVIII, No. 2 |
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EXECUTIVE
BUDGET
2004-2005
HIGHLIGHTS
February 2, 2004
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The following is a summary of highlights of the
Executive Budget Appropriations Bills and Article VII Bills for 2004-2005.
S.6053/A9553
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Page
Number |
Statute Section |
Subject
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Summary
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Page 37 |
Education Law, §3602, sb 31-a |
Special Aid for Small
City School Districts |
Aid in 2004-2005 is equal to aid payable to
2003-2004. |
S.6057/A.9557
PART F
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1 |
Education Law §6281 sb B |
WICKS Law |
Exempts Dormitory Authority and City University
Construction Fund from the WICKS Law. |
PART I
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1 |
Education Law §2022 sb 7 |
School Budgets |
Imposes Cap on increases in
School Budgets of 120% of CPI or 4% whichever is less, unless 2/3 of the
voters approve the budget; Budgets approved by majority but not by 2/3
need not be resubmitted for second vote, and board is authorized to
reduce the budget to get under the Cap; and the budget may be submitted
for a second vote to obtain the necessary 2/3 approval; increases from
expenditures to comply with the judgment regarding the provisions of
sound basic education increases, increases from enrollment, increases
from gifts from Federal grants and aid added after the school budget is
adopted and expenditures in Section 2023 sb b are not included in the
definition of total spending. |
PART K
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1 |
Education Law §202 sb 1 |
Board of Regents |
Increases number of Regents to 18; permits Governor
to appoint 12 and the Legislature to appoint the balance, among other
things. |
PART L
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|
1 |
State Finance Law §97-eeee |
Tenured Teacher hearings |
Established a tenured teacher hearing account for
hearings under Education Law §3020-a to cover State Education Department
services for administration of such hearings; costs of such hearings on
and after April 1, 2004 shall be a charge on the school district and
set-off against state aid due. |
PART N
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1 |
Education Law §207 |
Legislative Power of the Regents |
Any rule or regulation which does not have
statutory authorization or for which the Commissioner projects
additional costs to the State or Local Governments must be submitted to
the State Director of Regulatory Reform for approval with a statement of
cost implications. |
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1-a |
Education Law §407-a sb 11 |
Dormitory Authority Construction Contracts |
Exempts such contracts with Special Acts School
Districts from the WICKS Law. |
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2 |
Education Law §458 subds. 1 and 2 |
NYC Educational Construction Funds |
Such subdivisions relating to Wicks Law are
repealed. |
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5-a |
Education Law §1608 subds. 7 ¶ 8 |
Property Tax Report Card |
Report card must provide data for the three
preceeding school years comparing the change in the levy with the change
in the CPI. |
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6 |
Education Law §1950 sb 4 ¶d sb¶2 |
BOCES Aid |
Excludes non-instructional and instructional
support services from definition of aidable shared service including
collective negotiations, recruiting, employee assistance programs,
business office services, planning services, public information
coordinator services, school food services, extra curricular activities
coordination, curriculum development, among other things, but such
services may be approved by the Commissioner as non-aidable shared
services; and telecommunication service may not be an aidable shared
service unless such services are equal to or less than services
available under an OGS – aggregated services contract. |
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6 |
Education Law §1950 sb 5 ¶b |
BOCES Aid |
Excludes from the definition of cost of services
allocated to component school districts by BOCES, the cost of any
services or commodities in excess of their cost under a state
centralized contract. |
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7-a |
Education Law §1760 sb 7 ¶a |
Property Tax Report Card |
See bill section 5-a above. |
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8 |
Education Law §2022 sb 2-a |
School Budgets |
School Budget notice shall include change in the
school tax levy and a comparison to the CPI for the three proceeding
schools years. |
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9 |
Education Law §3602 sb 6 |
Building Aid |
Establishes a third party review using a “value
engineering process” in consultation with the Dormitory Authority for
any capital projects costing $5 million or more or of the projected size
30,000 square feet of new or additional space; recommendations may be
rejected by the board if explained in writing and the Commissioner may
deny or grant aid in whole or in part based upon such recommendations or
may require the district to undergo a second review. |
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10 |
Education Law §3602 sb 6 ¶a |
Building Aid |
A project approved on or after February 1, 2004,
the cost allowances for the purposes of computation of building aid are
subject to a new formula based upon building project enrollment, basic
per pupil space allotment, and a basic per pupil allowance established
by the Commissioner and approved by DOB; basic per pupil allowance shall
be adjusted monthly by a statewide cost of labor and materials index;
the cost allowances limited to the lesser of 100% or equivalent to new
construction over the useful life or the enrollment times the percentage
of the building being reconstructed times the basic per pupil allowance;
and limits the costs for site purchase, site improvement, original
furnishings, equipment or professional fees to 20% of construction costs
for prekindergarten through sixth and 25% for grades seven through
twelve and 25% for buildings or additions housing special education
programs of BOCES under a ten year lease, among other things. |
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11 |
Education Law §3602 sb 6 ¶c sb¶2 clause b |
Building Aid-Selected Aid Ratio |
Limits third choice of aid ratio to projects
approved between July 1, 2000 and July 1,2004. |
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13 |
Education Law §3602 sb 6 ¶e sb¶3 clause a |
Building Aid |
For aid payable in 2004-2005 for projects without a
contract award certificate on file with the commissioner as of November
15 of the base year, debt service shall be payable in July following the
current year. |
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14 |
Education Law §3602 sb 6 ¶e sb¶5 clauses a, b |
Building Aid |
Defines the assumed interest rate for the Dormitory
Authority finance projects as “actual average” interest rate. |
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15 |
Education Law §3602 sb 6 ¶k |
Building Aid |
Established building aid moratorium on new
projects, for projects not approved by February 1, 2004 pending
implementation of priority based system of approval of projects. |
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16 |
Education Law §3602 sb 6-f ¶c |
Building Aid |
Imposes building aid moratorium pending
implementation of a priority based system. |
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17 |
Education Law §3602 sb 7 ¶c, d |
Transportation Aid – Capital Debt Service and Lease
Expense |
In 2005-06 and thereafter, applies an assumed
amortization based on the useful life of the bus or equipment up to
seven years for amounts less than $10,000 |
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17-a |
Education Law §3641 sb 13 |
Transportation Capital Expense Transition Grants |
Establishes an application process for such grants
for such expenses for 2003-2004 |
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18 |
Education Law §3602 sb 14 ¶d |
Incentive Operating Aid for Reorganized Districts |
Limits save harmless for reorganized district to a
period of 15 years. |
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19 |
Education Law §3602 sb 24 ¶e |
Employment Preparation Education Apportionment |
Caps the apportionment to $84 million. |
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20 |
Education Law §3609-a sb 1 |
Moneys Apportioned |
Beginning July 1, 2004 reference to “school aid
computer listing for the current year” means aid run printout entitled
“BT456-1”. |
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22 |
Education Law §3609-c |
Aid to Small City School Districts |
Moneys apportioned shall mean aid shown on the
school aid computer listing for the current year or the apportionment
calculated based on data filed at the time of payment whichever is less. |
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27 |
Education Law §4404 sb 1 |
Appeals Procedures for Children with Disabilities |
The Commissioner shall establish rates and
standards for compensation of impartial hearing officers. |
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28 |
Education Law §4410 sb 10 ¶e sb¶(ii) |
Reimbursement of Costs for Actions Against the
Board or State |
The Commissioner will set maximum rates to be
approved by the Director of DOB. |
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29 |
Education Law §4410 sb 9 ¶a sb¶(iii) |
Preschool Moratorium |
Extends such moratorium to June 30, 2007 on new or
expanded programs. |
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30 |
General Municipal Law §101 sb 1 |
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Exempts School Districts, BOCES and Cities
Contracting on behalf of City School Districts from the WICKS Law. |
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31 |
Public Authorities Law §1680 sb 40 |
Dormitory Authority |
Authorizes the Dormitory Authority to consult with
any school district on capital projects, which consultation may include
independent third party reviews using value engineering processes. |
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44 |
Education Law §§4408, 4410 |
Children with Disabilities |
The Commissioner may excuse the deficiency of one
day of the 30-day operation requirement for approved July and August
programs for children with disabilities if such deficiency was failure
to operate on August 15, 2003 due to the electrical blackout on August
14, 2003. |
S.6056/A9556
PART H*
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Bill Section
|
Statute Section |
Subject |
Summary |
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1 |
Retirement and Social Security Law §11-a |
Duties of Comptroller |
Requires Comptroller to explore options to limit
the volatility of employer contributions and implement regulations. |
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2 |
Retirement and Social Security Law §311-a |
Duties of Comptroller |
See bill section 1 above. |
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7 |
Retirement and Social Security Law §430 sbd |
New Benefits |
Requires improvements or new benefits resulting in
an increase in liabilities shall be billed separately from the normal
contribution. |
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8 |
Retirement and Social Security Law §11 sb d |
Annual Reports |
Such reports shall show a comparison with other
state retirement systems in accordance with GASBY rules. |
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*The above modification will decrease the projected
increases for all state and local retirement systems, for the state from
$670 million to $170 million, for local governments $1.14 billion to $340
million.
S.6060/A9560
PART Q
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|
1 |
Tax Law §606 sb gg |
STAR Cost of Living Credit |
Provides for a personal income tax credit for the
increase in the STAR tax savings (STAR savings times CPI); but such
credit is not allowable in any district not in compliance with the
statutory spending cap. |
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CHARLIE WINTERS
LOOKS AT
THE
GOVERNOR’S
BUDGET
Date:
January 20, 2004 |
In a bid to stop global warming, Governor Pataki has
proposed to freeze almost every thing in sight. In addition to frozen pipes
and frozen buses, the Governor also wants public schools to deal with a
freeze in Operating Aid, Extraordinary Needs Aid, Educationally Related
Support Services, Limited English Proficiency, Public Excess Cost Aid and
BOCES Aid. Private Excess Cost Aid is allowed to run, but is prorated
downward by almost 8.1% to freeze the total amount paid. Thus, costs are
expected to increase here by 8.8% with no added aid. Small City Aid remains
frozen. Transportation Aid is capped at a maximum increase of 2.5%. The
bottom line increase for all districts is 1.02%, none of it driven by wealth
or need.
In a move that ought to at least heat up the courts a
little, the Executive Budget protected all of the save-harmless features for
high wealth districts while freezing the largest share of the school budget
in the poorest districts. The wealthiest districts can make up this loss
with a very small tax increase, while the effect on the poorest districts is
profound. With pensions, health insurance and special education costs
driving 5% inflation on overall costs, an aid freeze represents a 3.5% cut
in buying power in poor districts where state aid makes up 70% of the
budget, but only a .75% cut in wealthy districts where state aid makes up
only 15% of the budget. Since any cost saving measures that the legislature
may enact will also affect all districts equally, the poorest districts end
up lagging even farther behind. As a sop to the courts, the Governor
recommended a $100 million increase for New York City under the heading of a
“Sound Basic Education Grant”. At the same time he proposed a cut of $41.81
million in Teacher Support Aid for the City, leaving it with a bottom line
increase of $56.21 million or 1.05%--about the same as the state as a
whole. Buffalo, Rochester, Syracuse and Yonkers were also pretty much
flat.
In other areas, the Governor once again proposed to
“reform” BOCES, and put a moratorium on building projects until they can be
“prioritized”. He proposed a new STAR credit costing $43 million, but paid
as a credit against income taxes rather than school taxes, and only in
districts that cap their spending to 120% of the CPI or 4%, whichever is
less. To help districts stay within the cap, he is again proposing to
require a 2/3 majority budget vote to exceed the cap. However, he also
added “court ordered funding to provide a sound basic education” to the list
of current exclusions from the budget cap.
He proposed adding a comparison of the district’s
three-year increase in the tax levy compared to the CPI to the existing
Property Tax Report Card, while also adding the decline in the percent of
state support of the local budget was not mentioned.
Under mandate relief, the Governor seeks to require the
Regents to obtain the approval of the Governor’s Office of Regulatory Reform
before adopting new regulations that would add costs. Once again he is
proposing an exemption from the Wicks Law.
Despite the Legislature’s heroic override of last
year’s proposal, the aid law they finally enacted had little equalizing
power. Thus, small city schools and high need schools generally ended up
proposing smaller budget increases yet higher tax increases than the average
district in 2003, making it pretty certain that wealth-related spending gaps
increased this year. Under this proposal, poorer schools and poorer
students would fall even further behind.
All in all, the governor is pretty much thumbing his
nose at the State’s highest court and also at all of the students who are
looking to the CFE ruling for a real opportunity to graduate from high
school. It is interesting to note that on the 50th anniversary
of Brown v. Board of Education, New York State continues to become more
separate and less equal.
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SENATOR
SALAND
“DEFINING
A SOUND,
BASIC
EDUCATION
IN NY”
Times Union
Sunday
January 18, 2004
B1
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Stephen M. Saland wrote an article that appeared in
Sunday January 18th’s Times Union section, Perspective.
The article entitled, Defining a sound, basic education in N.Y.,
speaks to the ramifications of the CFE decision. He notes that court did not
rule that the state system for funding education was unconstitutional but
rather New York State is failing to meet its constitutional obligation to
provide a sound basic education and a meaningful high school education. The
court did not provide definitions for a “sound, basic education” or a
“meaningful high school education.”
Saland reports the Court of Appeals required the state
to “ascertain the actual cost of providing a basic education in New York
City” by June 30th. The Court also requires the state to provide
a system of accountability “capable of measuring whether the opportunity for
a sound, basic education was being provided.”
The Court also rejected the idea that Regents standards
are the definition of a sound, basic education rather those standards are “aspirational.”
Saland also notes that the information upon which the Court based its ruling
on data ending in the 1996-97 school year. Saland points out it is yet to be
determined what, if any, effect the NCLB Act, the Schools Under Registration
Review list, new governance of New York City’s schools, a dramatic decrease
in the number of uncertified teachers and $1.7 billion in additional state
aid to New York City will have on school performance.
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ASSOCIATION ANALYSIS
OF
EXECUTIVE
BUDGET
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The Association has completed its annual analysis of
the Governor’s Budget. Below are some findings as relate to totals for SCSD,
NYC, the State and suburban schools. For a complete analysis, including
monies for individual SCSD schools and separate aids, please go to the
Association website,
http://scsd.neric.org or call our office at 518-462-5300 and ask for
Beth Biggerstaff.
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2003-2004 |
2004-2005 |
% |
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01/15/04 |
flex aid* |
flex aid |
change |
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SCSD TOTALS |
$985,636,293 |
$985,636,293 |
0.00% |
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NYC total |
$3,805,084,248 |
$3,805,084,248 |
0.00% |
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STATE TOTALS
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$9,957,158,779 |
$9,957,158,779 |
0.00% |
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State - NYC |
$6,152,074,531 |
$6,152,074,531 |
0.00% |
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State-NYC+SCSD |
$5,166,438,238 |
$5,166,438,238 |
0.00% |
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* includes
Comprehensive Operating, Extraordinary Needs, ERSSA, |
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LEP, Summer School,
Tax Limitation and Excess Cost-Public Aids |
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2003-2004 |
2004-2005 |
% |
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01/15/04 |
total aid exc sm
city |
total aid exc sm
city |
change |
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SCSD TOTALS |
$1,326,727,682 |
$1,342,811,351 |
1.21% |
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NYC TOTALS |
$5,092,402,916 |
$5,198,302,194 |
2.08% |
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STATE TOTALS
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$13,761,412,423 |
$14,002,097,892 |
1.75% |
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State - NYC |
$8,669,009,507 |
$8,803,795,698 |
1.55% |
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State-NYC+SCSD |
$7,342,281,825 |
$7,460,984,347 |
1.62% |
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2003-2004 |
2004-2005 |
% |
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01/15/04 |
small cities aid |
small cities aid |
change |
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