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SECTION 211-D
Contract for excellence
Education (EDN) CHAPTER 16, TITLE 1, ARTICLE 5, PART 1
§ 211-d. Contract for excellence. 1. a. Every school district that, as
of April first of the base year, has at least one school identified as
in corrective action or restructuring status or as a school requiring
academic progress: year two or above or as a school in need of
improvement: year two shall be required to prepare a contract for
excellence if the school district is estimated to receive an increase in
total foundation aid for the current year compared to the base year in
an amount that equals or exceeds either fifteen million dollars or ten
percent of the amount received in the base year, whichever is less, or
receives a supplemental educational improvement plan grant. In school
year two thousand seven--two thousand eight such increase shall be the
amount of the difference between total foundation aid received for the
current year and the total foundation aid base, as defined in paragraph
j of subdivision one of section thirty-six hundred two of this chapter.

b. In addition to the school districts required to prepare a contract
for excellence under paragraph a of this subdivision, every school
district that filed a contract for excellence in the base year shall
file a contract for excellence in the current year if such district is
estimated to receive a two-year increase, equal to the positive
difference of the total foundation aid apportioned for the current year
less the total foundation aid base, as defined in paragraph j of
subdivision one of section thirty-six hundred two of this chapter, for
the base year, in an amount that equals or exceeds either twenty-seven
million five hundred thousand dollars or twenty percent of such total
foundation aid base for the base year; provided however, that this
requirement shall apply only to a school district that, as of April
first of the base year, has at least one school that has been identified
as in corrective action or restructuring status or as a school requiring
academic progress: year two or above or as a school in need of
improvement: year two.

c. In a city school district located in a city of one million or more
inhabitants, a contract for excellence shall be prepared for the city
school district and each community district that meets criteria
specified in this subdivision.

d. All computations pursuant to paragraphs a and b of this subdivision
and subdivision two of this section shall be based upon data included in
the computerized school aid run produced by the commissioner in support
of the enacted state budget which established the foundation aid
formulas for the current year. For purposes of this section,
accountability status of schools shall be determined as of April first
of the base year, except that if the commissioner determines that the
accountability data on file for a school as of April first of the base
year was in error and officially adjusts the accountability status of
the school after such date, such adjusted data shall be used for the
purposes of paragraphs a and b of this subdivision and subdivision two
of this section.

* 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
excellence 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
excellence for the two thousand eleven--two thousand twelve 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 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
thirteen 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 and
provided further that, a school district that submitted a contract for
excellence for the two thousand twelve--two thousand thirteen school
year, unless all schools in the district are identified as in good
standing, shall submit a contract for excellence for the two thousand
thirteen--two thousand fourteen 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 twelve--two thousand thirteen school
year and provided further that, a school district that submitted a
contract for excellence for the two thousand thirteen--two thousand
fourteen school year, unless all schools in the district are identified
as in good standing, shall submit a contract for excellence for the two
thousand fourteen--two thousand fifteen 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
thirteen--two thousand fourteen school year; and provided further that,
a school district that submitted a contract for excellence for the two
thousand fourteen--two thousand fifteen school year, unless all schools
in the district are identified as in good standing, shall submit a
contract for excellence for the two thousand fifteen--two thousand
sixteen 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 fourteen--two thousand fifteen school year; and
provided further that a school district that submitted a contract for
excellence for the two thousand fifteen--two thousand sixteen school
year, unless all schools in the district are identified as in good
standing, shall submit a contract for excellence for the two thousand
sixteen--two thousand seventeen 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 fifteen--two thousand sixteen school
year; and provided further that, a school district that submitted a
contract for excellence for the two thousand sixteen--two thousand
seventeen school year, unless all schools in the district are identified
as in good standing, shall submit a contract for excellence for the two
thousand seventeen--two thousand eighteen 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
sixteen--two thousand seventeen school year; and provided further that a
school district that submitted a contract for excellence for the two
thousand seventeen--two thousand eighteen school year, unless all
schools in the district are identified as in good standing, shall submit
a contract for excellence for the two thousand eighteen--two thousand
nineteen 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 seventeen--two thousand eighteen school year; and
provided further that, a school district that submitted a contract for
excellence for the two thousand eighteen--two thousand nineteen school
year, unless all schools in the district are identified as in good
standing, shall submit a contract for excellence for the two thousand
nineteen--two thousand twenty 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 eighteen--two thousand nineteen
school year; and provided further that, a school district that submitted
a contract for excellence for the two thousand nineteen--two thousand
twenty school year, unless all schools in the district are identified as
in good standing, shall submit a contract for excellence for the two
thousand twenty--two thousand twenty-one 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
nineteen--two thousand twenty 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 adjustment
computed pursuant to chapter fifty-three of the laws of two thousand
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.

* NB Effective until July 1, 2021

* 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
excellence 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
excellence for the two thousand eleven--two thousand twelve 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 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
thirteen 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 and
provided further that, a school district that submitted a contract for
excellence for the two thousand twelve--two thousand thirteen school
year, unless all schools in the district are identified as in good
standing, shall submit a contract for excellence for the two thousand
thirteen--two thousand fourteen 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 twelve--two thousand thirteen school
year and provided further that, a school district that submitted a
contract for excellence for the two thousand thirteen--two thousand
fourteen school year, unless all schools in the district are identified
as in good standing, shall submit a contract for excellence for the two
thousand fourteen--two thousand fifteen 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
thirteen--two thousand fourteen school year; and provided further that,
a school district that submitted a contract for excellence for the two
thousand fourteen--two thousand fifteen school year, unless all schools
in the district are identified as in good standing, shall submit a
contract for excellence for the two thousand fifteen--two thousand
sixteen 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 fourteen--two thousand fifteen school year; and
provided further that a school district that submitted a contract for
excellence for the two thousand fifteen--two thousand sixteen school
year, unless all schools in the district are identified as in good
standing, shall submit a contract for excellence for the two thousand
sixteen--two thousand seventeen 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 fifteen--two thousand sixteen school
year; and provided further that, a school district that submitted a
contract for excellence for the two thousand sixteen--two thousand
seventeen school year, unless all schools in the district are identified
as in good standing, shall submit a contract for excellence for the two
thousand seventeen--two thousand eighteen 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
sixteen--two thousand seventeen school year; and provided further that a
school district that submitted a contract for excellence for the two
thousand seventeen--two thousand eighteen school year, unless all
schools in the district are identified as in good standing, shall submit
a contract for excellence for the two thousand eighteen--two thousand
nineteen 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 seventeen--two thousand eighteen school year; and
provided further that, a school district that submitted a contract for
excellence for the two thousand eighteen--two thousand nineteen school
year, unless all schools in the district are identified as in good
standing, shall submit a contract for excellence for the two thousand
nineteen--two thousand twenty 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 eighteen--two thousand nineteen
school year; and provided further that, a school district that submitted
a contract for excellence for the two thousand nineteen--two thousand
twenty school year, unless all schools in the district are identified as
in good standing, shall submit a contract for excellence for the two
thousand twenty--two thousand twenty-one 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
nineteen--two thousand twenty school year; and provided further that, a
school district that submitted a contract for excellence for the two
thousand twenty--two thousand twenty-one school year, unless all schools
in the district are identified as in good standing, shall submit a
contract for excellence for the two thousand twenty-one--two thousand
twenty-two 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 twenty--two thousand twenty-one 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
adjustment computed pursuant to chapter fifty-three of the laws of two
thousand 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.

* NB Effective July 1, 2021

2. a. (i) In a common, union free, central, central high school, or a
city school district in a city having less than one hundred twenty-five
thousand inhabitants, required to prepare a contract for excellence
pursuant to subdivision one of this section and, as of April first of
the base year, does not contain any schools identified as in corrective
action or restructuring status or requiring academic progress: year
three or above, each contract for excellence shall describe how the sum
of the amounts apportioned to the school district in the current year as
total foundation aid, in excess of one hundred four percent of the
district's foundation aid base, as adjusted for additional amounts
payable as charter school basic tuition over such amount payable in the
base year, shall be used to support new programs and new activities or
redesign or expand the use of programs and activities demonstrated to
improve student achievement; provided however, up to fifty percent of
additional funding received in the current year may be used to maintain
investments in programs and activities listed in paragraph a of
subdivision three of this section.

(ii) In a common, union free, central, central high school, or a city
school district in a city having less than one hundred twenty-five
thousand inhabitants, required to prepare a contract for excellence
pursuant to subdivision one of this section and, as of April first of
the base year, has at least one school identified as in corrective
action or restructuring status or requiring academic progress: year
three or above, each contract for excellence shall describe how the sum
of the amounts apportioned to the school district in the current year as
total foundation aid, in excess of one hundred four percent of the
district's foundation aid base, as adjusted for additional amounts
payable as charter school basic tuition over such amount payable in the
base year, shall be used to support new programs and new activities or
redesign or expand the use of programs and activities demonstrated to
improve student achievement; provided however, up to thirty-five percent
of additional funding received in the current year may be used to
maintain investments in the programs and activities listed in paragraph
a of subdivision three of this section.

(iii) In a city school district in a city having a population of one
hundred twenty-five thousand or more inhabitants but less than one
million inhabitants that either receives a supplemental educational
improvement plan grant or is required to submit a contract for
excellence based solely upon the criteria specified in paragraph b of
subdivision one of this section, each contract for excellence shall
describe how the sum of the amounts apportioned to the school district
in the current year as total foundation aid, and as supplemental
educational improvement plan grants, in excess of one hundred four
percent of such aid apportioned to the district in the base year, as
adjusted for additional amounts payable as charter school basic tuition
over such amount payable in the base year, shall be used to support new
programs and new activities or redesign or expand the use of programs
and activities demonstrated to improve student achievement; provided
however, up to fifty percent of additional funding received in the
current year may be used to maintain investments in the programs and
activities listed in paragraph a of subdivision three of this section.

(iv) In a city school district in a city having a population of one
hundred twenty-five thousand or more inhabitants but less than one
million inhabitants that satisfies the criteria specified in paragraph a
of subdivision one of this section and does not receive a supplemental
educational improvement plan grant, each contract for excellence shall
describe how the sum of the amounts apportioned to the school district
in the current year as total foundation aid, in excess of one hundred
three percent of the district's foundation aid base, as adjusted for
additional amounts payable as charter school basic tuition over such
amount payable in the base year, shall be used to support new programs
and new activities or expand the use of programs and activities
demonstrated to improve student achievement; provided however, up to
twenty-five percent of additional funding received in the current year
may be used to maintain investments in the programs and activities
listed in paragraph a of subdivision three of this section.

(v) In a city school district in a city having a population of one
million or more inhabitants, each contract for excellence shall describe
how the amounts apportioned to the school district in the current year
as total foundation aid and academic achievement grants, in excess of
one hundred three percent of the district's foundation aid base, as
adjusted for additional amounts payable as charter school basic tuition
over such amount payable in the base year, shall be used to support new
programs and new activities or expand the use of programs and activities
demonstrated to improve student achievement; provided however, up to
thirty million dollars or twenty-five percent of additional funding
received in the current year, whichever is less, may be used to maintain
investments in the programs and activities listed in paragraph a of
subdivision three of this section.

(vi) Each contract for excellence for a school district that was
required to prepare a contract for excellence in the base year shall
provide for the expenditure of an amount equivalent to the total
budgeted amount approved by the commissioner in the district's approved
contract for excellence for the base year; provided that such amount
shall be expended to support and maintain allowable programs and
activities approved in the base year or to support new or expanded
allowable programs and activities in the current year.

(vii) (A) Notwithstanding any other provision of this section to the
contrary, a school district that submitted a contract for excellence for
the two thousand seven--two thousand eight school year and the two
thousand eight--two thousand nine school year and is required to submit
a contract for excellence for the two thousand nine--two thousand ten
school year but did not fully expend all of its two thousand seven--two
thousand eight foundation aid subject to the contract for excellence
restrictions during the two thousand seven--two thousand eight school
year may re-allocate and expend such unexpended funds during the two
thousand eight--two thousand nine and two thousand nine--two thousand
ten school years for allowable contract for excellence programs and
activities as defined in subdivision three of this section in a manner
prescribed by the commissioner. For purposes of determining maintenance
of effort pursuant to subparagraph (vi) of this paragraph for the two
thousand eight--two thousand nine school year, funds expended pursuant
to this subparagraph shall be included in the total budgeted amount
approved by the commissioner in the district's contract for excellence
for the two thousand seven--two thousand eight school year; provided
that such amount shall not be counted more than once in determining
maintenance of effort for the two thousand nine--two thousand ten school
year or thereafter.

(B) Notwithstanding any other provision of this section to the
contrary, a school district that submitted a contract for excellence for
the two thousand nine--two thousand ten school year but did not fully
expend all of its two thousand nine--two thousand ten foundation aid
subject to the contract for excellence restrictions during the two
thousand nine--two thousand ten school year may re-allocate and expend
such unexpended funds during the two thousand eleven--two thousand
twelve school year for allowable contract for excellence programs and
activities as defined in subdivision three of this section in a manner
prescribed by the commissioner; provided that such amount shall not be
counted more than once in determining any maintenance of effort pursuant
to this section.

b. (i) The contract shall specify the new or expanded programs for
which additional amounts of such total foundation aid, or grant shall be
used and shall affirm that such programs shall predominately benefit
students with the greatest educational needs including, but not limited
to, those students with limited English proficiency, students in poverty
and students with disabilities.

(ii) In a city school district in a city having a population of one
million or more inhabitants such contract shall also include a plan to
reduce average class sizes, as defined by the commissioner, within five
years for the following grade ranges: (A) pre-kindergarten-third grade;
(B) fourth-eighth grade; and (C) high school. Such plan shall include
class size reduction for low performing and overcrowded schools and also
include the methods to be used to achieve such class sizes, such as the
creation or construction of more classrooms and school buildings, the
placement of more than one teacher in a classroom or methods to
otherwise reduce the student to teacher ratio; provided, however, that
notwithstanding any law, rule or regulation to the contrary, the sole
and exclusive remedy for a violation of the requirements of this
paragraph shall be pursuant to a petition to the commissioner under
subdivision seven of section three hundred ten of this title, and the
decision of the commissioner on such petition shall be final and
unreviewable.

(iii) A city school district in a city having a population of one
million or more inhabitants shall prepare a report to the commissioner
on the status of the implementation of its plan to reduce average class
sizes pursuant to subparagraph (ii) of this paragraph. Such report shall
identify all schools that received funds targeted at class size
reduction efforts pursuant to the requirements of this section and
provide the following information regarding such schools:

(A) the amount of contract for excellence funds received by each
school and the school year in which it received such funds;

(B) a detailed description of how contract for excellence funds
contributed to achieving class size reduction in each school that
received such funding including specific information on the number of
classrooms in each school that existed prior to receiving contract for
excellence funds and the number of new classrooms that were created in
each school for each year such funding was received, the number of
classroom teachers that existed in each school prior to receiving
contract for excellence funds and the number of new classroom teachers
in each school for each year such funding was received, the student to
teacher ratio in each school prior to receiving contract for excellence
funds and the student to teacher ratio in each school for each year such
funding was received;

(C) the actual student enrollment for the two thousand six--two
thousand seven school year, the actual student enrollment for the two
thousand seven--two thousand eight school year, the actual student
enrollment for the two thousand eight--two thousand nine school year,
and the projected student enrollment for the two thousand nine--two
thousand ten school year for each school by grade level;

(D) the actual average class sizes for the two thousand six--two
thousand seven school year, the actual average class sizes for the two
thousand seven--two thousand eight school year, the actual average class
sizes for the two thousand eight--two thousand nine school year, and the
projected average class sizes for the two thousand nine--two thousand
ten school year for each school by grade level; and

(E) the schools that have made insufficient progress toward achieving
the class size reduction goals outlined in the approved five year class
size reduction plan pursuant to subparagraph (ii) of this paragraph and
a detailed description of the actions that will be taken to reduce class
sizes in such schools.

Such report shall be submitted to the commissioner on or before
November seventeenth, two thousand nine and shall be made available to
the public by such date.

c. The contract for excellence shall state, for all funding sources,
whether federal, state or local, the instructional expenditures per
pupil, the special education expenditures per pupil, and the total
expenditures per pupil, projected for the current year and actually
incurred in the base year.

3. a. The commissioner shall adopt regulations establishing allowable
programs and activities intended to improve student achievement which
shall be limited to: (i) class size reduction, (ii) programs that
increase student time on task, including but not limited to, academic
after-school programs, (iii) teacher and principal quality initiatives,
(iv) middle school and high school re-structuring, (v) expansion or
replication of effective model programs for students with limited
English proficiency, and (vi) full-day kindergarten or prekindergarten.
Provided, however, that districts may use up to fifteen percent of the
additional funding they receive for experimental programs designed to
demonstrate the efficacy of other strategies to improve student
achievement consistent with the intent of this section and, in school
year two thousand seven--two thousand eight, up to thirty million
dollars or twenty-five percent of such additional funding, whichever is
less, may be used to maintain investments in programs and activities
listed in this subdivision. Any such district seeking to implement an
experimental program shall first submit a plan to the commissioner
setting forth the need for such experimental program and how such
program will improve student performance.

b. The commissioner shall assist school districts that include in
their contract for excellence the implementation of incentives,
developed in collaboration with teachers in the collective bargaining
process, for highly qualified and experienced teachers to work in low
performing schools to ensure that such incentives are effective.

4. a. A district's contract for excellence for the academic year two
thousand eight--two thousand nine and thereafter, shall be developed
through a public process, in consultation with parents or persons in
parental relation, teachers, administrators, and any distinguished
educator appointed pursuant to section two hundred eleven-c of this
chapter.

b. Such process shall include at least one public hearing. In a city
school district in a city of one million or more inhabitants, a public
hearing shall be held within each county of such city. A transcript of
the testimony presented at such public hearings shall be included when
the contract for excellence is submitted to the commissioner, for review
when making a determination pursuant to subdivision five of this
section.

c. In a city school district in a city of one million or more
inhabitants, each community district contract for excellence shall be
consistent with the citywide contract for excellence and shall be
submitted by the community superintendent to the community district
education council for review and comment at a public meeting.

d. For the two thousand seven--two thousand eight school year, school
districts shall solicit public comment on their contracts for
excellence.

5. Each contract for excellence shall be subject to approval by the
commissioner and his or her certification that the expenditure of
additional aid or grant amounts is in accordance with subdivision two of
this section.

6. The school district audit report certified to the commissioner by
an independent certified public accountant, an independent accountant or
the comptroller of the city of New York pursuant to section twenty-one
hundred sixteen-a of this chapter shall include a certification by such
accountant or comptroller in a form prescribed by the commissioner and
that the increases in total foundation aid and supplemental educational
improvement plan grants have been used to supplement, and not supplant
funds allocated by the district in the base year for such purposes.

7. The trustees or board of education of each school district subject
to this section, or the chancellor in the case of a city school district
in a city of one million or more inhabitants, shall assure that
procedures are in place by which parents or persons in parental relation
may bring complaints concerning implementation of the district's
contract for excellence.

a. In a city school district in a city of one million or more
inhabitants, such procedures shall provide that complaints may be filed
with the building principal with an appeal to the community
superintendent, or filed directly with the community superintendent, and
that any appeal of the determination of a community superintendent shall
be made to the chancellor.

b. In all other districts, such procedures shall either provide for
the filing of complaints with the building principals with an appeal to
the superintendent of schools or for filing of the complaint directly
with the superintendent of schools, and shall provide for an appeal to
the trustees or board of education from the determination of the
superintendent of schools.

c. The determination of the trustees or a board of education or the
chancellor may be appealed to the commissioner pursuant to section three
hundred ten of this title.

8. School districts subject to the provisions of this section shall
publicly report the expenditure of total foundation aid in the form and
manner prescribed by the commissioner which shall ensure full disclosure
of the use of such funds.

9. The department shall develop a methodology for reporting
school-based expenditures by all school districts subject to the
provisions of this section.