S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7814

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 17, 2011
                               ___________

Introduced  by  M. of A. TENNEY, BLANKENBUSH -- Multi-Sponsored by -- M.
  of A. BARCLAY, McLAUGHLIN, PALMESANO -- read once and referred to  the
  Committee on Education

AN  ACT  to amend the education law, in relation to removing any portion
  of incentive operating aid from the gap elimination adjustment

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph e of subdivision 1 of section 211-d of the educa-
tion law, as amended by section 1 of part A of chapter 58 of the laws of
2011, is amended to read as follows:
  e.  Notwithstanding  paragraphs  a and b of this subdivision, a school
district that submitted a contract for excellence for the  two  thousand
eight--two  thousand nine school year shall submit a contract for excel-
lence for the  two  thousand  nine--two  thousand  ten  school  year  in
conformity  with the requirements of subparagraph (vi) of paragraph a of
subdivision two of this section unless all schools in the  district  are
identified  as  in  good  standing  and  provided further that, a school
district that submitted a contract for excellence for the  two  thousand
nine--two  thousand  ten school year, unless all schools in the district
are identified as in good standing, shall submit a contract  for  excel-
lence for the two thousand eleven--two thousand twelve school year which
shall,  notwithstanding  the  requirements of subparagraph (vi) of para-
graph a of subdivision two of this section, provide for the  expenditure
of  an  amount  which  shall  be not less than the product of the amount
approved by the commissioner in the contract for excellence for the  two
thousand   nine--two   thousand  ten  school  year,  multiplied  by  the
district's gap elimination adjustment percentage. For purposes  of  this
paragraph,  the  "gap elimination adjustment percentage" shall be calcu-
lated as the sum of one minus the quotient of  the  sum  of  the  school
district's  net  gap  elimination  adjustment  for two thousand ten--two
thousand eleven computed pursuant to chapter fifty-three of the laws  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10829-02-1
              

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two  thousand  ten, making appropriations for the support of government,
plus the school district's gap elimination adjustment for  two  thousand
eleven--two  thousand  twelve  as  computed pursuant to a chapter of the
laws  of  two  thousand eleven, making appropriations for the support of
the local assistance budget, including support for general  support  for
public  schools, divided by the total aid for adjustment computed pursu-
ant to a chapter of the laws of two thousand  eleven,  making  appropri-
ations  for  the  local assistance budget, including support for general
support for public schools.  Provided, further, that such  amount  shall
be  expended  to  support and maintain allowable programs and activities
approved in the two thousand nine--two thousand ten school  year  or  to
support new or expanded allowable programs and activities in the current
year.   PROVIDED, HOWEVER, THAT THE GAP ELIMINATION ADJUSTMENT SHALL NOT
BE APPLIED TO ANY PORTION OF FUNDS RECEIVED THROUGH INCENTIVE  OPERATING
AID PURSUANT TO SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER.
  S  2.  Paragraph  cc of subdivision 1 of section 3602 of the education
law, as added by section 25 of part A of chapter 58 of the laws of 2011,
is amended to read as follows:
  cc. "Gap elimination adjustment percentage" shall mean the quotient of
the gap elimination adjustment amount set forth for each school district
as "GAP ELIMINATION ADJUSTMENT" under  the  heading  "2011-12  ESTIMATED
AIDS" in the school aid computer listing produced by the commissioner in
support  of the enacted budget for the two thousand eleven--two thousand
twelve school year and entitled  "SA111-2",  divided  by  the  statewide
total  of  all such gap elimination adjustment amounts set forth for all
districts in such school aid computer listing.  PROVIDED, HOWEVER,  THAT
THE  GAP  ELIMINATION  ADJUSTMENT SHALL NOT BE APPLIED TO ANY PORTION OF
FUNDS RECEIVED THROUGH INCENTIVE OPERATING AID PURSUANT TO THIS SECTION.
  S 3. Subdivision 17 of section 3602 of the education law, as added  by
section  37  of  part A of chapter 58 of the laws of 2011, is amended to
read as follows:
  17. Gap elimination adjustment. a. Notwithstanding any other provision
of law to the contrary, the commissioner shall reduce  payments  due  to
each  district  for  the two thousand eleven--two thousand twelve school
year and thereafter pursuant to section  thirty-six  hundred  nine-a  of
this  article  by  an  amount  equal  to  the gap elimination adjustment
computed for such district, and  such  amount  shall  be  deducted  from
moneys  apportioned  for  the purposes of payments made pursuant to such
section thirty-six hundred nine-a and if the reduction is  greater  than
the  sum  of the amounts available for such deductions, the remainder of
the reduction shall be withheld from payments scheduled to  be  made  to
the  district  pursuant  to  section  thirty-six  hundred nine-a for the
following school year, and provided further that an amount equal to  the
amount  of  such  deduction  shall  be  deemed  to have been paid to the
district pursuant to this section for the  school  year  in  which  such
deduction  is  made. The commissioner shall compute such gap elimination
adjustment and shall provide a schedule of such reduction in payments to
the state comptroller, the director of the  budget,  the  chair  of  the
senate  finance  committee  and the chair of the assembly ways and means
committee.  PROVIDED HOWEVER, THAT THE GAP ELIMINATION ADJUSTMENT  SHALL
NOT  BE APPLIED TO ANY PORTION OF FUNDS RECEIVED THROUGH INCENTIVE OPER-
ATING AID PURSUANT TO THIS SECTION.
  b. The gap elimination adjustment for  the  two  thousand  eleven--two
thousand  twelve  school  year  shall  be  computed as follows, PROVIDED
HOWEVER, THAT THE GAP ELIMINATION ADJUSTMENT SHALL NOT BE APPLIED TO ANY
PORTION OF FUNDS RECEIVED THROUGH INCENTIVE OPERATING  AID  PURSUANT  TO

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THIS SECTION, based on an updated electronic [date] DATA file containing
actual  and  estimated  data  relating  to  apportionments due and owing
during the current school year and projections  of  such  apportionments
for  the following school year to school districts and boards of cooper-
ative educational services from the general support for public  schools,
growth  and  boards  of  cooperative educational services appropriations
produced pursuant to paragraph b of subdivision  twenty-one  of  section
three  hundred  five  of  this chapter on February fifteenth of the base
year. The gap elimination adjustment for  a  district  shall  equal  the
lesser  of  the  district's  percentage  reduction  and  its TGFE check,
provided, however, that in the case of a  district  with  a  tax  effort
ratio  greater  than four percent (0.04) and a combined wealth ratio for
total foundation aid computed pursuant to subparagraph two of  paragraph
c  of  subdivision three of this section that is less than one and five-
tenths (1.5), the gap elimination adjustment for a district shall  equal
the  lesser  of  the  percentage  reduction,  the TGFE check and the tax
effort reduction, and further provided that in  the  case  of  a  school
district,  other  than  a  city school district of a city having a popu-
lation in excess of one hundred twenty-five thousand, with (A) an admin-
istrative efficiency ratio of less than  one  and  eight-tenths  percent
(0.018)  and  (B) an administrative expense per pupil of less than three
hundred forty-eight dollars ($348), the gap elimination adjustment shall
be reduced by an amount equal to the administrative efficiency  restora-
tion,  and  further provided that, where applicable, the gap elimination
adjustment shall be reduced by an amount equal to the sum of the  needs-
based  restoration  plus the low wealth-high tax effort restoration plus
the enrollment adjustment award.
  (i) The percentage reduction shall be the sum of (A)  the  product  of
the  total aid for adjustment, multiplied by six and four-tenths percent
(0.064), and (B) the product  of  four  thousand  four  hundred  dollars
($4,400)  multiplied  by  the reduction factor, multiplied by the public
school district enrollment  for  the  base  year  computed  pursuant  to
subparagraph  two  of  paragraph  n  of subdivision one of this section,
provided, however, that such percentage reduction shall not be less than
the product of nine and one-half  percent  (0.095)  multiplied  by  such
total  aid  for  adjustment, and not more than the product of twenty-one
and four-tenths percent (0.214) multiplied by such total aid for adjust-
ment.
  (ii) The tax effort reduction shall be the product of  the  total  aid
for  adjustment,  multiplied  by  the  quotient  of twenty-three percent
(0.23) divided by the quotient of the tax effort ratio computed pursuant
to subparagraph three of paragraph a  of  subdivision  sixteen  of  this
section  divided by four and two hundred forty-seven thousandths percent
(0.04247), provided, however, that such tax effort reduction  shall  not
be  less  than the product of thirteen percent (0.13) multiplied by such
total aid for adjustment, and not more than the product of  twenty-three
percent (0.23) multiplied by such total aid for adjustment.
  (iii)  The  TGFE check shall be the product of the TGFE percentage and
the total general fund expenditures of such district in the base year.
  (iv) The administrative efficiency restoration shall be the product of
seventy-five dollars ($75),  multiplied  by  the  state  sharing  ratio,
multiplied by the total aidable foundation pupil units computed pursuant
to  paragraph  g  of subdivision two of this section for the purposes of
computing total foundation aid.
  (v) The needs-based restoration shall be the sum of (A) the product of
the needs-based grant, multiplied by the public school district  enroll-

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ment  for  the  base year computed pursuant to subparagraph two of para-
graph n of subdivision one of such section  thirty-six  hundred  two  of
this  part,  plus (B) in the case of any district for which the quotient
of  the  Limited  English  proficient  count  for the base year computed
pursuant to paragraph o of subdivision one of this  section  divided  by
the  public school district enrollment for the base year computed pursu-
ant to subparagraph two of  paragraph  n  of  subdivision  one  of  this
section,  exceeds  thirteen percent (0.13), the product of the total aid
for adjustment  multiplied  by  seventy-five  hundredths  of  a  percent
(0.0075).
  (vi)  The  low  wealth-high  tax  effort restoration shall be, for any
school district with a tax effort ratio greater than six percent  (0.06)
and  a  combined wealth ratio for total foundation aid that is less than
seven-tenths (0.7), the product of one hundred dollars ($100.00)  multi-
plied  by  the  public  school  district  enrollment  for  the base year
computed pursuant to subparagraph two of paragraph n of subdivision  one
of this section.
  (vii)  The  enrollment  adjustment  award shall be the product of five
hundred dollars ($500.00) multiplied by the enrollment increase for  any
eligible  school district. An eligible school district shall be a school
district (A) with a combined wealth ratio for total foundation aid  less
than  three  (3.0)  and  an enrollment increase greater than or equal to
forty-five, where, (B) for such school district, either  the  enrollment
increase  is  greater  than  one  percent  (0.01)  of  the public school
district enrollment for the base year or the combined wealth  ratio  for
total  foundation  aid  is  less than two (2.0). The enrollment increase
shall be as the positive  difference  of  the  estimated  public  school
district  enrollment  for the current year computed pursuant to subpara-
graph two of paragraph n of subdivision one of  this  section  less  the
public school district enrollment for the base year computed pursuant to
subparagraph two of paragraph n of subdivision one of this section.
  (viii)  For  the  purposes  of  such  computation,  (A) "total aid for
adjustment" shall mean the sum of the amounts set forth for each  school
district  as "FOUNDATION AID", "FULL DAY K CONVERSION", "BOCES + SPECIAL
SERVICES", "HIGH COST EXCESS COST", "PRIVATE EXCESS COST",  "HARDWARE  &
TECHNOLOGY",   "SOFTWARE,   LIBRARY,   TEXTBOOK",  "TRANSPORTATION  INCL
SUMMER", "OPERATING REORG  INCENTIVE",  "CHARTER  SCHOOL  TRANSITIONAL",
"ACADEMIC  ENHANCEMENT",  "HIGH  TAX  AID"  AND "SUPPLEMENTAL PUB EXCESS
COST" under the heading "2011-12  ESTIMATED  AIDS"  in  the  school  aid
computer  listing  produced by the commissioner in support of the execu-
tive budget proposal for the two thousand  eleven--two  thousand  twelve
school year;
  (B)  "the  state  sharing  ratio"  shall  mean the state sharing ratio
computed for total foundation aid computed pursuant to  paragraph  g  of
subdivision three of this section, but not less than ten percent (0.10);
and
  (C)  "reduction factor" shall mean the product of the positive remain-
der of one less the three-year average  free  and  reduced  price  lunch
percent  computed pursuant to subparagraph (ii) of paragraph p of subdi-
vision one of this section, multiplied by the combined wealth ratio  for
total  foundation aid computed pursuant to subparagraph two of paragraph
c of subdivision three of section thirty-six hundred two of  this  part;
and
  (D)  "needs-based  grant"  shall  mean,  (1) in the case of a district
determined to be a high need school district pursuant to clause  (c)  of
subparagraph  two  of paragraph c of subdivision six of this section for

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the school aid computer listing produced by the commissioner in  support
of  the  enacted  budget  for the two thousand seven--two thousand eight
school year and entitled "SA0708", having a  need-resource  category  of
three  or  four,  sixty-one  dollars  ($61.00), and (2) in the case of a
district determined to be an average need school  district  pursuant  to
clause (c) of subparagraph two of paragraph c of subdivision six of this
section for the school aid computer listing produced by the commissioner
in  support  of the enacted budget for the two thousand seven--two thou-
sand eight school year and entitled  "SA0708",  having  a  need-resource
category of five, fifty-four dollars ($54.00).
  (E)  "administrative  efficiency ratio" shall mean the quotient of the
sum of the expenditures related to the  board  of  education,  including
expenditures  for  the  board of education, the district clerk's office,
the district meeting, auditing service, the treasurer's office, the  tax
collector's  office, legal services and the school census, plus expendi-
tures for central administration, including expenditures for  the  chief
school  officer, the business office, the purchasing office, the person-
nel office, the  records  management  officer,  public  information  and
services,  fees  for  fiscal  agents  and  undistributed indirect costs,
divided by the total expenditures charged by a district to the  general,
debt service, and special aid funds, excluding transfers from the gener-
al fund to the debt service and special aid funds, based on expenditures
reported by the district for the school year two years prior to the base
year,  based on data on file for an electronic data file used to produce
the school aid computer listing produced by the commissioner in  support
of the executive budget request; and
  (F)  "administrative expense per pupil" shall mean the quotient of the
sum of the expenditures related to the  board  of  education,  including
expenditures  for  the  board of education, the district clerk's office,
the district meeting, auditing service, the treasurer's office, the  tax
collector's  office, legal services and the school census, plus expendi-
tures for central administration, including expenditures for  the  chief
school  officer, the business office, the purchasing office, the person-
nel office, the  records  management  officer,  public  information  and
services,  fees  for  fiscal  agents  and  undistributed indirect costs,
charged by a district to the general,  debt  service,  and  special  aid
funds,  based  on  expenditures  reported by the district for the school
year two years prior to the base year,  divided  by  the  public  school
district  enrollment for the base year computed pursuant to subparagraph
two of paragraph n of subdivision one of this section based on  data  on
file for an electronic data file used to produce the school aid computer
listing  produced by the commissioner in support of the executive budget
request; and
  (G) "TGFE percentage" shall mean,
  (1) in the case of a district determined  to  be  a  high-need  school
district  pursuant  to  clause (c) of subparagraph two of paragraph c of
subdivision six of this section for  the  school  aid  computer  listing
produced  by  the  commissioner in support of the enacted budget for the
two  thousand  seven--two  thousand  eight  school  year  and   entitled
"SA0708",
  (a)  in the case of a city school district in a city with a population
in excess of one million inhabitants, four and five hundred thirty-seven
thousandths percent (0.04537),
  (b) in the case of a city school district in a city with a  population
of  more  than  two hundred fifty thousand inhabitants and less than one

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million inhabitants according to the two thousand federal  census,  four
and one-tenth percent (0.041),
  (c)  in the case of a city school district in a city with a population
of more than two hundred ten thousand  inhabitants  and  less  than  two
hundred fifty thousand inhabitants according to the two thousand federal
census, four and thirteen hundredths percent (0.0413),
  (d)  in the case of a city school district in a city with a population
of more than one hundred seventy thousand inhabitants and less than  two
hundred  ten  thousand inhabitants according to the two thousand federal
census, five and ninety-seven hundredths percent (0.0597),
  (e) in the case of a city school district in a city with a  population
of  more than one hundred thousand inhabitants and less than one hundred
seventy thousand inhabitants  according  to  the  two  thousand  federal
census, five and fifty-three hundredths percent (0.0553),
  (f)  in  the case of any other such school district which has a three-
year average free and reduced price lunch percent greater than  seventy-
five  percent  (0.75)  and  which has an administrative efficiency ratio
less than one and fifty-five hundredths percent (0.0155), four and  nine
hundredths percent (0.0409), and
  (g)  for all other such school districts, six and eight-tenths percent
(0.068), or
  (2) in the case of all other school districts, eleven percent (0.11).
  c. The gap elimination adjustment for  the  two  thousand  twelve--two
thousand  thirteen  school year and thereafter shall be equal to the gap
elimination adjustment for the base year, plus, in any year in which the
preliminary growth amount exceeds the allowable growth amount, the prod-
uct of the gap elimination adjustment percentage for such  district  and
the  positive  difference, if any, between the preliminary growth amount
less the allowable growth amount, as computed  pursuant  to  subdivision
one of this section, and less the product of the gap elimination adjust-
ment  percentage  for  such  district and the gap elimination adjustment
restoration amount, if any, allocated pursuant to  subdivision  eighteen
of this section.  PROVIDED, HOWEVER, THAT THE GAP ELIMINATION ADJUSTMENT
SHALL  NOT BE APPLIED TO ANY PORTION OF FUNDS RECEIVED THROUGH INCENTIVE
OPERATING AID PURSUANT TO THIS SECTION.
  S 4. This act shall take effect immediately; provided,  however,  that
the  amendments to section 3602 of the education law made by section two
of this act shall take effect on the same date and in the same manner as
section 25 of part A of chapter 58 of the laws of  2011,  takes  effect;
provided,  further, that the amendments to section 3602 of the education
law made by section three of this act shall take effect on the same date
and in the same manner as section 37 of part A of chapter 58 of the laws
of 2011, takes effect.