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

                                  3289

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 24, 2013
                               ___________

Introduced  by  M. of A. TENNEY, BLANKENBUSH -- Multi-Sponsored by -- M.
  of A. BARCLAY, CROUCH, 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 2 of part A of chapter 57 of the laws of
2012, 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 and provided further
that, a school district that submitted a contract for excellence for the
two thousand eleven--two thousand twelve school year, unless all schools
in the district are identified as  in  good  standing,  shall  submit  a
contract  for excellence for the two thousand twelve--two thousand thir-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03371-01-3
              

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teen school  year  which  shall,  notwithstanding  the  requirements  of
subparagraph  (vi)  of  paragraph  a of subdivision two of this section,
provide for the expenditure of an amount which shall be  not  less  than
the  amount  approved by the commissioner in the contract for excellence
for the two  thousand  eleven--two  thousand  twelve  school  year.  For
purposes  of this paragraph, the "gap elimination adjustment percentage"
shall be calculated 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 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 chapter
fifty-three 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 adjust-
ment computed pursuant to chapter fifty-three of the laws of  two  thou-
sand  eleven,  making  appropriations  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. Paragraphs a, c and the  opening  paragraph  of  paragraph  b  of
subdivision 17 of section 3602 of the education law, paragraph a and the
opening  paragraph  of  paragraph  b as added by section 37 of part A of
chapter 58 of the laws of 2011 and paragraph c as amended by  section  6
of  part  A  of  chapter  57 of the laws of 2012, are amended to read as
follows:
  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  thir-
ty-six  hundred  nine-a  for  the  following  school  year, and provided
further that an amount equal to the amount of such  deduction  shall  be

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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 ELIMI-
NATION ADJUSTMENT SHALL NOT BE APPLIED TO ANY PORTION OF FUNDS  RECEIVED
THROUGH INCENTIVE OPERATING AID PURSUANT TO THIS SECTION.
  The  gap elimination adjustment for the two thousand eleven--two thou-
sand 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  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.
  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 gap elimination adjustment restoration
amount, if any, allocated pursuant to 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 be deemed to have been in full force and effect on the
same  date  and in the same manner as section 25 of part A of chapter 58
of the laws of 2011, took effect; provided, further, that the amendments

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to section 3602 of the education law made by section three of  this  act
shall  be  deemed to have been in full force and effect on the same date
and in the same manner as section 37 of part A of chapter 58 of the laws
of 2011, took effect.