2009-10 Enacted Budget Gap-closing Plan – Education

Education Initiatives

In the Enacted Budget, federal economic recovery aid reflected in the final State budget agreement will provide dramatic increased resources for school districts.

School aid will total approximately $21.9 billion in 2009-10, an increase of $405 million or 1.9 percent. When combined with other federal economic recovery aid through Title I of the Elementary and Secondary Education Act ($454 million) and Individuals with Disabilities Education Act programs ($398 million), support for school districts is expected to increase by $1.2 billion.   Due to the additional financial resources provided through American Recovery and Reinvestment Act (ARRA), the Enacted Budget provides an additional fiscal benefit to school districts of $2 billion compared to the Executive Budget.

While Foundation Aid will be maintained at 2008-09 levels ($14.8 billion) in both the 2009-10 and 2010-11 school years, the Enacted Budget maintains the commitment to fully phase-in Foundation Aid increases.  However, in recognition of the State’s deteriorating fiscal condition Foundation Aid increases will now be fully phased-in by 2013-14. The original schedule would have fully phased-in this formula in 2010-11.

The Budget continues the Contract for Excellence Program (C4E) for 2009-10. This program will require 32 school districts with academic shortcomings (including all of the Big 5 cities’ school districts) to maintain funding levels on specific proven education programs, such as class size reduction, to assist in improving student performance levels.

For Charter Schools, tuition payments made by school districts to charter schools will be frozen to 2008-09 levels for the upcoming school year, reflecting that Foundation Aid is also being maintained at 2008-09 levels. Charter schools that experience enrollment increases will receive funding for those additional pupils.

Federal stimulus funding was used to eliminate the Deficit Reduction Assessment proposed in the Executive Budget.  Additionally, this aid was used to restore funding for the following programs:  Preschool special education, Teacher Centers, Academic Improvement Grants, Public Broadcasting, the Teacher Mentor Intern program, Math/Science High School program, and new funding for the “Say Yes to Education” demonstration program.

Gap-closing actions

*Impact of this reduction is fully or partially offset by federal funding, as described below.

School Aid

• Formula-based School Aid Reduction. School Aid funding for the 2009-10 SY totals $21.9 billion, an increase of $405 million or 1.9 percent compared to 2008-09 SY levels. Including additional Federal funding provided through Federal education aid formulas via IDEA and Title I, this amount grows to $22.7 billion, an increase of $1.2 billion or 5.7 percent.  This has two major components:
  • First, State support for certain School Aid funding categories, including Foundation Aid and Universal Prekindergarten (UPK), will be maintained at 2008-09 levels for two years (2009-10 and 2010-11), delaying previously scheduled increases; and
  • Second, unlike Foundation Aid and UPK, expense-based aids such as Building Aid, Transportation Aid, and others will not be limited to 2008-09 levels and will increase year-to-year based on existing statutory provisions. Funding for these categories of aid is projected to increase by $405 million in 2009-10.
• Significant funding increases in Foundation Aid and Universal Prekindergarten were scheduled to be phased-in over a four-year period with a complete phase-in occurring in the 2010-11 school year. This phase-in period will be extended to seven years – with a full phase-in occurring in the 2013-14 school year. After maintaining State funding for Foundation Aid and UPK at 2008-09 levels in 2009-10 and 2010-11 the State-funded planned phased-in increases will resume in 2011-12 and both aid categories would be fully funded in 2013-14. (2009-10 School Year Savings: $1.5 billion; 2010-11 School Year Savings: $3.4 billion; 2009-10 State Fiscal Year Savings: $1.0 billion; 2010- 11 State Fiscal Year Savings: $2.8 billion)
• Eliminate Funding for Mathematics/Science Initiatives. This discretionary grant program provides supplemental math and science summer programs at colleges and universities for students and teachers. Funding is eliminated to prevent further reductions in direct aid to schools. (2009-10 School Year Savings: $10 million; 2010-11 School Year Savings: $10 million; 2009-10 State Fiscal Year Savings: $7 million; 2010-11 State Fiscal Year Savings: $10 million)
• Reduce Funding for the Teacher Mentor-Intern Program. This discretionary program provides funding for new teachers to be mentored by experienced teachers. Funding is reduced to prevent further reductions in direct aid to schools. After this reduction, $2 million in Federal funding is allocated for this program. (2009-10 School Year Savings: $8 million; 2010-11 School Year Savings: $8 million; 2009-10 State Fiscal Year Savings: $6 million; 2010-11 State Fiscal Year Savings: $8 million)
• Eliminate Funding for Other Discretionary Grant Programs. Funding for Universal Prekindergarten Planning Grants and Rochester Children’s Zone pilot program is eliminated. (2009-10 School Year Savings: $3 million; 2010-11 School Year Savings: $3 million; 2009-10 State Fiscal Year Savings: $2 million; 2010-11 State Fiscal Year Savings: $3 million)

Other Education Related Programs

• Reduce Spending on the Comprehensive Attendance Program (CAP) as it Applies to Nonpublic Schools. New Annual funding available to nonpublic schools to participate in the Comprehensive Attendance Program will be limited to $30 million. Nonpublic schools will continue to receive over $80 million in aid for other mandated services, including traditional attendance-taking, as well as other support for student instructional costs. (2009-10 Savings: $14 million; 2010-11 Savings: $14 million)
• Use Federal Special Education Funds for Selected Programs. Federal funding will be used for selected special education-related costs. (2009-10 Savings: $11 million; 2010-11 Savings: $11 million
• Reduce Amounts Available for Prior-Year School Aid Claims. State funding for prior-year aid claims submitted by school districts is reduced. After this action, $15 million is still available for these liabilities. (2009-10 Savings: $9 million; 2010-11 Savings: $9 million)
• Reduce Funding for State Operations. The 2009-10 Enacted Budget reduced the State Education Department's General Fund State Operations budget by a total of $7.1 million. Of this amount, $5.4 million is associated with expected agency efficiencies, $1.3 million is related to 26 attritions/layoffs, and the remaining $0.4 million is associated with forgoing the 2009 M/C performance advance, longevity payment and three percent cost-of-living adjustment. (2009-10 Savings: $7.1 million; 2010-11 Savings: $7.7 million)
• Eliminate Additional Funding for After-School Programs. This funding is used to supplement approximately $90 million the state receives in federal funding for the 21st Century Community Learning Centers after school program. After this action, nearly $28 million in state funds will continue to be available for after-school programs through the Extended Day program. (2009-10 Savings: $7 million; 2010-11 Savings: $10 million)
• Reduce Funding for Arts Grants. The Council on the Arts distributes grants to various arts and cultural not-for-profit organizations throughout New York State. The 2009-10 Enacted Budget provided a total of $42.7 million for Arts Grants.(2009-10 Savings: $3.3 million; 2010-11 Savings: $3.6 million)
• Reduce Funding for Aid to Public Broadcasting Stations. State funding for public broadcasting provides operational assistance to 9 public television and 17 public radio stations. The 2009-10 Enacted Budget reduced overall support by 15 percent. After this reduction, public broadcasting stations will receive $15 million in funding. Of this amount, $5.6 million will be supported with monies from the State Fiscal Stabilization Fund - Other Governmental Services Fund provided by the ARRA. (2009-10 Savings: $2.7 million; 2010-11 Savings: $2.7 million)
• Reduce Funding for Aid to Public Libraries. Library Aid provides operating support to public libraries, library systems, and reference and research libraries. The 2009-10 Enacted Budget reduced State support for local library operations. After this action, $91.1 million was provided for aid to libraries. Additionally, $14 million for capital construction projects was continued. (2009-10 Savings: $2.4 million; 2010-11 Savings: $4.8 million)
• Reduce Funding for Independent Colleges and Universities (Bundy Aid). Bundy Aid provides unrestricted financial assistance to independent colleges and universities within New York State based on the number and type of degrees conferred at each institution. The 2009-10 Enacted Budget provided a total of $41.6 million for Bundy Aid. (2009-10 Savings: $1.9 million; 2010-11 Savings: $1.9 million)
• Eliminate State Funding for the Apprenticeship Training Instruction Program. This program provides funds to school districts and BOCES for supplemental classroom instruction related to students enrolled in state-approved apprenticeship programs. The state share of this instructional component is a minor share of the total program funding for apprenticeship programs. (2009-10 Savings: $1 million; 2010-11 Savings: $2 million)
• New Spending on Legislative Initiatives. (2009-10 Spending: $39 million; 2010-11 Spending: $3 million)