Senate Bill S501

                                 BILL NUMBER:  S501

 TITLE OF BILL :

An act to amend the tax law, in relation to establishing a tax credit
for certain certified school building administrators employed in
high-needs school districts


 PURPOSE :

To attract highly qualified and experienced school building
administrators by providing a $1,500 state income tax credit for
individuals who choose to work in high needs school districts.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends section 606 of the tax law by adding the
provisions that titles the subsection as a personal income tax credit
certified school building administrators employed in high needs school
districts. Subparagraph (a) defines who is eligible. Subparagraph (b)
authorizes the Commissioner of the department of education to
determine what constitutes a high need school district (a formula
already utilized by State Education Department officials to determine
districts of high needs), and subparagraph (c) defines how much credit
can be imposed against state income tax. Section 2 defines the act to
              

go into effect the taxable year after the bill shall have been signed
into law.

 JUSTIFICATION :

New York State schools are held to the highest standards in the
country.  However, most schools across the state are expected to do
more with limited resources. State aid for education remains stagnant
at best and schools are held accountable to do more each year with
less financial support. Ultimately, it is the principal in the school
who is responsible to increase student performance in his or her
school.  Central district offices continue to apply pressure on these
leaders to produce better students Scores on mandated state and
federal test. In a survey conducted by the University at Albany: 2005
Profile of the New York State Principalship, forty percent of
principals in a rural and city schools reported that they felt that
they were held primarily responsible for instructional improvement,
compared to thirty-one percent of those surveyed in suburban schools.
Further documented in the study was the perception that nearly 90% of
the respondents indicated that they were increasingly held accountable
for student achievement in their building. The insurmountable pressure
placed on a principal to improve student Scores with "adequate yearly
progress" of students.  These demands, applied to other job pressures
make it less attractive to work in schools that have low student
progress rates and are placed on SURR and "Schools in Need of
Improvement" list. High needs school districts are categorized as
schools located in areas with high poverty rates and have a high
percentage of children who qualify for free and reduced lunches. For
the most part, these are the same schools that struggle to meet the
established standards set forth b:y adequate yearly progress
benchmarks. In 2005, a total of 511 schools across the state were
identified as "In Need of Improvement" and all of these schools
receive Title I funding from the federal government. Most of the
children "counted" under the Title I formula are from families with
income below the federal poverty line, as determined by the Census. It
is the same schools that need experienced and qualified administrators
to lead them out of their current state of "In Need of Improvement"
status. By providing an income-tax break for qualified administrators
who will in fact take on the challenges that these schools face, the
State will in essence create a recruitment strategy that targets high
need districts with incentives for innovative leaders with the vision
and know how to implement policies that create change and improve
student performances.

 LEGISLATIVE HISTORY :

2008: S.3408 - Referred to Investigations/A.1405 - Referred to Ways &
Means
2007: S.3408 - Referred to Investigations/A.1405 - Referred to Ways &
Means
2006: S.6592 - Reported to Finance/A.9849 - Referred to Ways & Means.

 FISCAL IMPLICATIONS :

Undetermined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years commencing on or after the first of January next succeeding such
effective date.