February 2005 Vol. XIX, No. 2 

GOVERNOR’S
BUDGET
MAKES
SOME
PROGRESS
TOWARD
EDUCATION AID
REFORM         

The Executive Budget for 2005-06 was delivered on January 18^th and presented little in the way of new ideas, but did make some proposals for Education Aid reform. While the overall effect on aid equity was limited, the Governor did recommend creation of a new aid category, Sound Basic Education Aid. This aid was more highly targeted toward districts with high student poverty and low property wealth and contained a student weighting of 1.3 for students on the Free and Reduced Price Lunch program. The Governor also recommended a continued freeze in Hurd and major revisions to Private Excess Cost Aid and BOCES Aid. Association Education Finance Consultant, Charles Winters, prepared a more in depth analysis of the budget as follows:  

Governor Pataki’s school aid proposal is more balanced and more thoughtful than in past years.  As in the past, the governor attacks BOCES Aid and Private Excess Cost Aid.  He also seeks more aid increases for the least needy districts in the state.  While the formula for Flex Aid contains some elements of the CFE case, in that a Geographic Cost of Education Index (GCEI) is used along with a poverty adjustment (.33), the effect is very small and general Flex increases only range between .5% and 2.5%.   

This year, however, the governor also proposes a new aid category, which he called Sound Basic Education Aid (SBE) and is made up of three components: English Language Learners Aid, Economically Disadvantaged Student Aid and Sparsity Aid.

Once again there are minimum provisions operating without any regard for need.   

The ELL component is a wealth equalized $143/ELL student, with an average wealth district getting 60% of that, or $85.80 per student, modified by the GCEI index.

The disadvantaged student component is based on $715 times a weight of .35, or $250.25, with an average wealth district getting 60% of that, or $150.15, modified by the GCEI.   

The formula adds an additional amount for districts with more than 1,200 students per square mile, which includes some small city schools.  This would be $12.60 in a district of average wealth.  If the district has fewer than 25 students per square mile, an amount is calculated as the density drops.  This would typically run between  $3.00 and $10.00 per disadvantaged student.    

The net outcome for general purpose aid, including SBE, is an overall increase of 5.4%.  The Big-5 increase by 7.0%, the small cities by 5.7% and the non-city districts by 3.5%.  The effect is somewhat positive overall, although the minimum provisions create large percentage increases for some of the very wealthiest districts in the state. 

These increases are offset by cuts in Private Excess Cost Aid and BOCES Aid yielding a net increase, excluding Building Aid, of 3.2% for the state.  This breaks out to 5.2% for the Big-5, 2.6% for small city schools and 1.4% for non-city districts.  This represents a far better starting point for the Legislature than the Governor has proposed in the past. 

However, the Governor failed to take the opportunity to propose any meaningful reform that could assure high-poverty districts of ongoing increases for the future.  Instead, he has created yet another one-year band-aid on top of a decade of prior band-aids.  Instead of the first installment of a multi-year reform, this looks like the first skirmish in a multi-year battle. 

If the state is to undertake a planned and thoughtful response to the CFE case, it will be up to the legislature or the courts to design it. 

LITIGATION
STEERING
COMMITTEE,
DISTRICTS
AND
ATTORNEYS
MEET

The Steering Committee met with Plaintiff/Supporting Districts and their attorneys on Friday, February 18^th, in Albany to discuss litigation strategy, review the Supreme Court order in the CFE case dated February 14^th, review the NYCLU case decision handed down by the Court of Appeals on February15^th, review status of the Utica CSD case and set a timetable for commencement of the SCSD suit. To date twenty five small city school districts have indicated support for the Association’s education aid reform litigation and several more will be taking board votes to do so shortly. It was clear to the Committee from the Governor’s quick reply indicating his intention to appeal the CFE order, which appeal may take over two years to resolve, that the Association has no choice but to continue as expeditiously as possible with its lawsuit. 

The Committee agreed that the litigation would be commenced on March 15^th by filing of summons and complaint in the State Supreme Court for Albany County. That will coincide with the Association’s Legislative Breakfast and it is anticipated that press coverage of the event will be sought. The Committee formed a Public Relations Committee, comprised of Thomas McGowan, Supt. Glens Falls CSD, Charles Dedrick, Supt. Cohoes CSD, and Thomas Fitzgerald, BOE Newburgh CSD.

The Association’s Litigation Steering Committee has asked that Plaintiff Districts send in their board resolutions, complete the litigation survey, identify a student/parent willing to be named in the complaint and send in the initial financial contribution in the next two weeks. Supporting districts are, likewise, asked to submit their BOE resolutions and initial contributions soon. Districts which may be considering joining this effort are also welcome. Please notify Beth at beb@biggerstaff-firm.com or 518-475-9500.

LEGISLATIVE
BREAKFAST
MARCH 15TH

The State Comptroller, Alan Hevesi, has just confirmed that he will appear at the breakfast at 9:30 am to speak. He will be discussing his five point plan for school district accountability. 

Also, appearing earlier that morning will be Assemblyman Steven Sanders and Senator Stephen Saland, Chairmen of the Assembly and Senate Education Committees, respectively. We have also invited all of the Senators and Assembly members representing small city districts. This promises to be an interesting and informative event. If your district has not already responded, please notify Beth at 518-475-9500 or beb@biggerstaff-firm.com.

DATES
TO
REMEMBER

March 14, 2005 RESCHEDULED (from January 23, 2005)
1:00pm-4:00pm Fort Orange Club, Albany
Association Board of Directors Meeting

March 15, 2005
Legislative Breakfast, 8:00 am, Fort Orange Club, Albany

May 22-23, 2005 Annual Conference and Association Annual Meeting at the Gideon Putnam Hotel, Saratoga Springs