1. State Aid & Financial Planning Service Questar III 10 Empire State Blvd., Castleton, NY 12033 (518) 477-2635 http://sap.questar.org/ “Basics of State Aid”

2. Agenda Overview of Funds for Education Local, State and Federal State Budget Process SAMS State Aid Formula Output reports

3. In New York State, 2009-10 public education funding comes from three sources: – 7.8 percent from federal sources, –41.7 percent from State formula aids and grants, – 50.5 percent from revenues raised locally. "Analysis of School Finances in New York State School Districts 2008-09” New York State Education Department. January 2011.

5. 5 Infusion of Federal Money - American Recovery and Reinvestment Act The American Recovery and Reinvestment Act (ARRA) primarily allocates funds to school districts in four ways: 1. Fiscal Stabilization Funds ($3.05b) 2. Additional IDEA (611 and 619) Grants ($393.9m) 3. Additional Title 1, Part A ($423.4m) All of the above ended in 2011 4. Education Jobs Funds ( EJF) ($608 m) 4. Education Jobs Funds ( EJF) ($608 m) EJF ends 6/30/2012

6. The Design of State Aid Poor districts receive more aid than wealthy districts. Wealth Equalization Determination of Fiscal Capacity Aid Distribution Systems

7. State Budget Process Regents’ Proposal –Released in November –Reflects Regents’ program priorities & initiatives –Conceptual format –District by district aid projections not available

8. State Budget Process Executive Budget Proposal –Released in January –Reflects Governor’s priorities & fiscal condition of state –Based on projected district data for upcoming school yr. submitted with Fall state aid claim –Verify root cause of changes in aid Formula Estimated data

9. State Budget Process Final Budget Projections –Released when Governor & Legislative leaders come to an agreement on state aid to education –Formula changes drive $ to regions & priorities –Based on priorities & $ available –Timing of state budget does not coincide with district budget timelines –Projections are based on estimated data (Forms A, F & ST-3) provided by district the previous Fall

10. State Budget Process Final Budget Projections –Identify aid formulas with significant change and determine reason for change Formula was modified Estimated district data (expense, pupils) –Does projection data accurately reflect actual data –Ex. New bus purchases, increased BOCES services, actual high cost or private EC expenses for SWD –Compare the budgeted revenue to final projection

11. Timeline For Reporting State Aid Data July – December –Districts collect & report state aid data via State Aid Claim Forms (SAMS). –SED reports preliminary 2009-10 state aid via General Aid Output reports available on SED State Aid Unit website –SED compiles the projected data (estimates for 20010-11). Districts had until 11/1/09 to make corrections to data that will be used for legislative proposals

12. Timeline For Reporting State Aid Data January – April –SED, Gov & legislature use the estimated data to prepare projections for 20010-11 state aid under the Governor’s proposal, as well as the final aid projections May – June –SED prepares State Aid Claim Forms for distribution to school districts in June. Districts begin to collect 2009-10 school year data for 20010-11 state aid

13. State Aid Management System (SAMS) Claim data due first business day of September Certified and submitted ONLY by Superintendent user name & password –Form A – Pupil data –Form FT and FB – Financial data for calculating selected state aid –ST-3 - Annual Financial Statement

14. Log on to NYSED Application Business Portal http://portal.nysed.gov

15. Web based data collection portal

16. State Aid Output Reports Available on SED State Aid Unit website Detailed calculations of aids Should be monitored regularly

18. State Aid Payment Schedule State Aid payments are based on a schedule of fall, winter & spring payments –TRS obligations are paid by state from General State Aid –Lottery revenues paid in full by 9/1 (not a separate revenue) –Fall payments based on fixed percentage –Winter payments for most aid dependent districts –Spring payments guarantee districts receive 90% of state & local revenues by May 1 st –September – any aid claimed in excess of final aid estimates –Aid recoveries taken in June

19. State Aid Payment Schedule Public High Cost & Private Excess Cost Aid –Paid separately (Dec., March, June, Aug., Sept.) – State share of Medicaid comes in separate payments BOCES Aid –Paid separately (Feb., June, Sept.) Full Day K Conversion Aid – paid in June

20. State Aid Payment Schedule STAR (School Tax Relief Program) –Taxpayers receive a reduction in their school taxes based on a reduction in property assessments –School district is reimbursed by state for lost tax revenues due to reductions –Paid in Oct., Nov., Dec., Jan. –Middle Class STAR – rebate checks to property owners – Eliminated New this year……. –STAR Benefits frozen at 2% increase

21. Basic Formula 101 Student Count X $ amount X Ratio

22. State Aid Factors Student count Pupil Counts –Total Aidable Foundation Pupil Units (TAFPU) & TAFPU for Payment –A count of Average Daily Membership (ADM) or average # of students enrolled including dual enrolled –Special Weightings for: Students with disabilities Summer School FTE Declassified Pupils Total Wealth Foundation Pupil Units (TWFPU) – Used to determine Full Value per Pupil Resident Weighted Average Daily Attendance (RWADA) Pupil Need: –Free and Reduced Price Lunch % (FRPL) – Census Poverty of 5-17 year olds –Rural Sparsity – LEP/ESL/ELL Student Count

23. State Aid Factors - Ratio District Wealth –Aid is driven to districts based on need property wealth (Full Value) personal income of residents (Adjusted Gross Income) –Aid Ratios play a role in almost all formulas including Foundation Aid Regional Cost Index

24. Aid Ratios Combined Wealth Ratio (CWR) Selected Sharing Ratio – Derived From CWR - Used in Foundation Aid Resident Weighted Average Daily Attendance (RWADA) Ratio –Building Aid –BOCES Aid –Hardware Aid Transportation Aid Ratio Public Excess and High Cost Aid Ratio Private Excess Cost Aid Ratio

25. Types of Aid Foundation Aid –Created in 2007-2008 in response to the CFE litigation –over 70% of all state aid –Frozen at the 2008-2009 level

26. FOUNDATION AID OR

27. $500 x Selected TAFPU

28. Types of Aid Categorical Aids –Designed to drive $ to certain types of programs & legislative priorities –Examples: High Tax, Textbook, Public High Cost & Private Excess Cost Aids, Computer Hardware Aid

29. Types of Aid Expense Driven Aids – “Spend to Get” –Aid ratio is applied to approved expenditures to generate aid –Building Aid – based on approved project costs of purchase, renovations, reconstruction & new construction (no Building Aid on maintenance & repairs) Aid is paid based on Assumed Amortization of the approved project costs using a maximum useful life & statewide average interest rate

30. Types of Aid Expense Driven Aids – “Spend to Get” –Transportation Aid – based on cost of day to day operation of transporting pupils to & from school including: Bus purchase and lease Contract transportation Salaries & allowable benefits of transportation personnel –BOCES Aid – based on approved BOCES services, administrative & facilities costs (not special education or transportation) –Aid paid year following expense

31. Types of Aid Aid for Students with Disabilities – Public Placements Weighted and aided in Foundation Aid (Form A) High Cost Aid for high cost public programs (STAC) – Private Placements Aid based on tuition (SED approved) and FTE (STAC)

32. For more information: State Aid & Financial Planning Service Questar III 10 Empire State Blvd., Castleton, NY 12033 (518) 477-2635 (315) 793-8608 (518) 477-4284 Fax http://sap.questar.org/