S T A T E O F N E W Y O R K
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4007
2011-2012 Regular Sessions
I N S E N A T E
March 13, 2011
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Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance
AN ACT to amend part A of a chapter of the laws of 2011 amending the
education law relating to contracts for schools of excellence, as
proposed in legislative bill number S. 2808-B, in relation to net gap
elimination adjustment and repealing section 44 of such part
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 44 of part A of a chapter of the laws of 2011
amending the education law relating to contracts for schools of excel-
lence, as proposed in legislative bill number S. 2808-B, is REPEALED and
a new section 44 is added to read as follows:
S 44. SUBDIVISION 1 OF SECTION 3609-A OF THE EDUCATION LAW IS AMENDED
BY ADDING A NEW PARAGRAPH E TO READ AS FOLLOWS:
E. NET GAP ELIMINATION ADJUSTMENT FOR TWO THOUSAND ELEVEN--TWO THOU-
SAND TWELVE. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE
CONTRARY, THE COMMISSIONER SHALL INCREASE PAYMENTS DUE TO EACH DISTRICT
FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE SCHOOL YEAR PURSUANT TO
THIS SECTION BY AN AMOUNT EQUAL TO THE POSITIVE DIFFERENCE, IF ANY,
BETWEEN THE GAP ELIMINATION ADJUSTMENT COMPUTED FOR SUCH DISTRICT LESS
THE NET GAP ELIMINATION ADJUSTMENT COMPUTED FOR SUCH DISTRICT FOR THE
TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE SCHOOL YEAR, AND SUCH AMOUNT
SHALL BE PAID ON THE SAME DATE AS PAYMENTS SCHEDULED TO BE MADE TO THE
DISTRICT PURSUANT TO CLAUSE (VI) OF SUBPARAGRAPH TWO OF PARAGRAPH B OF
THIS SUBDIVISION FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE SCHOOL
YEAR. THE COMMISSIONER SHALL COMPUTE SUCH NET GAP ELIMINATION ADJUST-
MENT AND SHALL PROVIDE A SCHEDULE OF SUCH PAYMENTS TO THE STATE COMP-
TROLLER, THE DIRECTOR OF THE BUDGET, THE CHAIR OF THE SENATE FINANCE
COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
(2) THE NET GAP ELIMINATION ADJUSTMENT FOR TWO THOUSAND ELEVEN--TWO
THOUSAND TWELVE SCHOOL YEAR SHALL BE COMPUTED AS FOLLOWS, BASED ON AN
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10224-01-1
S. 4007 2
UPDATED ELECTRONIC DATA FILE CONTAINING ACTUAL AND ESTIMATED DATA RELAT-
ING 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 COOPERATIVE 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.
(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 SECTION THIRTY-SIX
HUNDRED TWO OF THIS PART, PROVIDED, HOWEVER, THAT SUCH PERCENTAGE
REDUCTION SHALL NOT BE LESS THAN THE PRODUCT OF TEN PERCENT (0.1) MULTI-
PLIED BY SUCH TOTAL AID FOR ADJUSTMENT, AND NOT MORE THAN THE PRODUCT OF
TWENTY PERCENT (0.2) MULTIPLIED BY SUCH TOTAL AID FOR ADJUSTMENT.
(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 DIVIDED BY THREE
HUNDRED EIGHTY-FOUR THOUSANDTHS (0.0384), PROVIDED, HOWEVER, THAT SUCH
TAX EFFORT REDUCTION SHALL NOT BE LESS THAN THE PRODUCT OF TEN PERCENT
(0.1) MULTIPLIED BY SUCH TOTAL AID FOR ADJUSTMENT, AND NOT MORE THAN THE
PRODUCT OF TWENTY PERCENT (0.2) MULTIPLIED BY SUCH TOTAL AID FOR ADJUST-
MENT.
(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 OFFSET SHALL BE THE PRODUCT OF
SEVENTY-FIVE DOLLARS ($75), MULTIPLIED BY THE STATE SHARING RATIO,
MULTIPLIED BY THE TOTAL AIDABLE FOUNDATION PUPIL UNITS.
(V) THE NEEDS-BASED AWARD SHALL BE THE PRODUCT OF THE NEEDS-BASED FLAT
GRANT, MULTIPLIED BY THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE
YEAR COMPUTED PURSUANT TO SUBPARAGRAPH TWO OF PARAGRAPH N OF SUBDIVISION
ONE OF SUCH SECTION THIRTY-SIX HUNDRED TWO OF THIS PART.
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), 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
POPULATION IN EXCESS OF ONE HUNDRED TWENTY-FIVE THOUSAND, WITH (A) AN
ADMINISTRATIVE 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
OFFSET, AND FURTHER PROVIDED THAT, WHERE APPLICABLE, THE GAP ELIMINATION
ADJUSTMENT SHALL BE REDUCED BY AN AMOUNT EQUAL TO THE NEEDS-BASED AWARD.
(3) FOR THE PURPOSES OF SUCH COMPUTATION, (I) "TOTAL AID FOR ADJUST-
MENT" 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
S. 4007 3
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;
(II) "THREE-YEAR AVERAGE FREE AND REDUCED PRICE LUNCH PERCENT" SHALL
MEAN THE QUOTIENT OF (A) THE SUM OF THE NUMBER OF PUPILS IN KINDERGARTEN
THROUGH GRADE SIX ATTENDING THE PUBLIC SCHOOLS OF THE DISTRICT WHO HAVE
APPLICATIONS ON FILE OR WHO ARE LISTED ON A DIRECT CERTIFICATION LETTER
CONFIRMING THEIR ELIGIBILITY FOR PARTICIPATION IN THE STATE AND FEDER-
ALLY FUNDED FREE AND REDUCED PRICE LUNCH PROGRAM ON THE DATE ENROLLMENT
WAS COUNTED IN ACCORDANCE WITH THIS SUBDIVISION FOR THE YEAR PRIOR TO
THE BASE YEAR, PLUS SUCH NUMBER OF ELIGIBLE APPLICANTS FOR THE FREE AND
REDUCED PRICE LUNCH PROGRAM COMPUTED FOR THE YEAR TWO YEARS PRIOR TO THE
BASE YEAR, PLUS SUCH NUMBER OF ELIGIBLE APPLICANTS FOR THE FREE AND
REDUCED PRICE LUNCH PROGRAM COMPUTED FOR THE YEAR THREE YEARS PRIOR TO
THE BASE YEAR, DIVIDED BY (B) THE SUM OF THE NUMBER OF PUPILS IN KINDER-
GARTEN THROUGH GRADE SIX ON A REGULAR ENROLLMENT REGISTER OF A PUBLIC
SCHOOL DISTRICT ON THE DATE ENROLLMENT WAS COUNTED IN ACCORDANCE WITH
THIS SUBDIVISION FOR THE YEAR PRIOR TO THE BASE YEAR, PLUS SUCH NUMBER
OF PUPILS IN KINDERGARTEN THROUGH GRADE SIX ON A REGULAR ENROLLMENT
REGISTER OF A PUBLIC SCHOOL DISTRICT COMPUTED FOR THE YEAR TWO YEARS
PRIOR TO THE BASE YEAR, PLUS SUCH NUMBER OF PUPILS IN KINDERGARTEN
THROUGH GRADE SIX ON A REGULAR ENROLLMENT REGISTER OF A PUBLIC SCHOOL
DISTRICT COMPUTED FOR THE YEAR THREE YEARS PRIOR TO THE BASE YEAR; AND
(III) "TOTAL AIDABLE FOUNDATION PUPIL UNITS" SHALL MEAN THE TOTAL
AIDABLE FOUNDATION PUPIL UNITS COMPUTED PURSUANT TO PARAGRAPH G OF
SUBDIVISION TWO OF SUCH SECTION THIRTY-SIX HUNDRED TWO OF THIS PART, FOR
THE PURPOSES OF COMPUTING TOTAL FOUNDATION AID; AND
(IV) "COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID" SHALL MEAN 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
(V) "THE STATE SHARING RATIO" SHALL MEAN THE STATE SHARING RATIO
COMPUTED FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH G OF
SUBDIVISION THREE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART, BUT
NOT LESS THAN TEN PERCENT (0.10); AND
(VI) "TAX EFFORT RATIO" SHALL MEAN THE TAX EFFORT RATIO COMPUTED
PURSUANT TO SUBPARAGRAPH THREE OF PARAGRAPH A OF SUBDIVISION SIXTEEN OF
SECTION THIRTY-SIX HUNDRED TWO OF THIS PART; AND
(VII) "REDUCTION FACTOR" SHALL MEAN THE PRODUCT OF THE POSITIVE
REMAINDER OF ONE LESS THE THREE-YEAR AVERAGE FREE AND REDUCED PRICE
LUNCH PERCENT, MULTIPLIED BY THE COMBINED WEALTH RATIO FOR TOTAL FOUNDA-
TION AID COMPUTED PURSUANT TO SUBPARAGRAPH TWO OF PARAGRAPH C OF SUBDI-
VISION THREE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART; AND
(VIII) "NEEDS-BASED FLAT GRANT" SHALL MEAN, (A) 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 SECTION
THIRTY-SIX HUNDRED TWO OF THIS PART 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", HAVING A NEED-RESOURCE CATEGORY OF THREE OR FOUR, SEVENTY
DOLLARS ($70.00), AND (B) 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 SECTION THIRTY-SIX HUNDRED TWO OF
THIS PART FOR THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMIS-
SIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOUSAND SEVEN--TWO
S. 4007 4
THOUSAND EIGHT SCHOOL YEAR AND ENTITLED "SA0708", HAVING A NEED-RESOURCE
CATEGORY OF FIVE, FIFTY-FIVE DOLLARS ($55.00).
(IX) "ADMINISTRATIVE EFFICIENCY RADIO" 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
(X) "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 SECTION THIRTY-SIX HUNDRED TWO
OF THIS PART 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
(XI) "TGFE PERCENTAGE" SHALL MEAN, (A) 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 SECTION THIRTY-SIX
HUNDRED TWO OF THIS PART 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", FOR A
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 ONE
HUNDREDTHS PERCENT (0.0155), FOUR AND SEVEN TENTHS PERCENT (0.047) AND
FOR ALL OTHER SUCH SCHOOL DISTRICTS, SIX AND NINE TENTHS PERCENT
(0.069), OR (B) IN THE CASE OF ALL OTHER SCHOOL DISTRICTS, ELEVEN
PERCENT (0.11).
S 2. This act shall take effect on the same date and in the same
manner as part A of a chapter of the laws of 2011 amending the education
law relating to contracts for schools of excellence, as proposed in
legislative bill number S. 2808-B, takes effect.