BILL NUMBER:  S5333

 TITLE OF BILL :
An act to amend the education law, in relation to certain formula
school aid options for certain school districts


 PURPOSE :
This bill would allow certain public school districts the option of
using an alternative combined wealth ratio formula as an additional
formula option for the calculation of aid.

 SUMMARY OF PROVISIONS :
Section 1 amends the education law with respect to the distribution of
monies to school districts. The provisions allow the use of the
combined wealth ratio formula in which the ratio of non-public school
students exceeds 175% , and which has an adjusted gross income per
resident textbook enrollment of less than the state average.

Section 2 provides that the effective date of the bill shall be on the
first day of July next succeeding the date on which it shall have
become law.

 EXISTING LAW :
The existing provisions in the Education Law substantially overstate
the wealth level of those school districts where the ratio of resident
              

non-public school students to the total of resident and non-public
school students exceeds 175% of the state average ratio and which have
an adjusted gross income per resident textbook enrollment of less than
the state average.

 JUSTIFICATION :
School districts function in an environment influenced by a number of
socioeconomic, demographic and other factors, some in conflict with
the other, with all presenting challenges to local boards of
education. Boards of education are required by law to operate as
efficiently as possible and are expected to not only meet the needs of
students in their community, but also to anticipate future needs.
They are expected to establish appropriate reserves for various
unexpected expenses and also to have available adequate funding in
times of economic downturn. Boards of education must also implement
and maintain educational programs that meet or exceed all required
federal and state academic standards while at the same time being
responsible to the public for their substantial investment in
buildings and grounds.  All of these challenges are made more
difficult in those school districts where the ratio of resident
nonpublic school students to the total of resident pupil and nonpublic
students exceeds 175% of the state average and where the adjusted
gross income per resident textbook enrollment is less than the state
average. Current formulas materially overstate the income level of
residents in these communities. In order to ensure that such school
districts receive state aid on an equitable basis, this proposed
legislation would allow an alternative combined wealth ratio formula
to be utilized.  This would mean that the measure of relative wealth
would be indexed against the statewide average on a combination of two
factors, property wealth per pupil and income wealth per resident
public and nonpublic pupil. This bill would have the effect of
correcting any deficiencies in the aid formula to such school
districts.

 LEGISLATIVE HISTORY :
2009 - New Bill.

 FISCAL IMPLICATIONS :


It is estimated that this bill will increase foundation aid by
approximately $6.18 million over the amounts paid in the 2008-09
school year.

Local Fiscal Implications: The additional aid provided by this bill
will reduce local school tax burdens by approximately $6.18 million.

 EFFECTIVE DATE :
This act shall take effect on the first day of July next succeeding
the date on which it shall have become law.