“Basics of State Aid”
State Aid & Financial Planning Service
Questar III
10 Empire State Blvd., Castleton, NY 12033
(518) 477-2635
http://sap.questar.org/
Agenda
•Overview of Funds for Education
•Local, State and Federal
•State Budget Process
•SAMS
•State Aid Formula
•Output reports
In New York State, 2009-10 public
education funding comes from three
sources:
– 7.8 percent from federal sources,
– 41.7 percent from State formula aids and
grants,
– 50.5 percent from revenues raised locally.
"Analysis of School Finances in New York State School Districts 2008-09” New York State Education Department. January 2011.
Infusion of Federal Money - American
Recovery and Reinvestment Act
The American Recovery and Reinvestment Act (ARRA) primarily allocates
funds to
school districts in four ways:
1. Fiscal Stabilization Funds ($3.05b)
2. Additional IDEA (611 and 619) Grants ($393.9m)
3. Additional Title 1, Part A ($423.4m)
All of the above ended in 2011
4. Education Jobs Funds ( EJF) ($608 m)
EJF ends 6/30/2012
5
The Design of State Aid
Poor districts receive more aid
than wealthy districts.
• Wealth Equalization
• Determination of Fiscal Capacity
• Aid Distribution Systems
State Budget Process
• Regents’ Proposal
– Released in November
– Reflects Regents’ program priorities &
initiatives
– Conceptual format
– District by district aid projections not
available
State Budget Process
• Executive Budget Proposal
– Released in January
– Reflects Governor’s priorities & fiscal
condition of state
– Based on projected district data for upcoming
school yr. submitted with Fall state aid claim
– Verify root cause of changes in aid
• Formula
• Estimated data
State Budget Process
• Final Budget Projections
– Released when Governor & Legislative leaders come to
an agreement on state aid to education
– Formula changes drive $ to regions & priorities
– Based on priorities & $ available
– Timing of state budget does not coincide with district
budget timelines
– Projections are based on estimated data (Forms A, F &
ST-3) provided by district the previous Fall
State Budget Process
• Final Budget Projections
– Identify aid formulas with significant change
and determine reason for change
• Formula was modified
• Estimated district data (expense, pupils)
– Does projection data accurately reflect actual data
– Ex. New bus purchases, increased BOCES services,
actual high cost or private EC expenses for SWD
– Compare the budgeted revenue to final
projection
Timeline For Reporting State Aid Data
• July – December
– Districts collect & report state aid data via
State Aid Claim Forms (SAMS).
– SED reports preliminary 2009-10 state aid via
General Aid Output reports available on SED
State Aid Unit website
– SED compiles the projected data (estimates for
20010-11). Districts had until 11/1/09 to make
corrections to data that will be used for
legislative proposals
Timeline For Reporting State Aid Data
• January – April
– SED, Gov & legislature use the estimated data
to prepare projections for 20010-11 state aid
under the Governor’s proposal, as well as the
final aid projections
• May – June
– SED prepares State Aid Claim Forms for
distribution to school districts in June. Districts
begin to collect 2009-10 school year data for
20010-11 state aid
State Aid Management System (SAMS)
• Claim data due first business day of
September
• Certified and submitted ONLY by
Superintendent user name & password
– Form A – Pupil data
– Form FT and FB – Financial data for
calculating selected state aid
– ST-3 - Annual Financial Statement
Log on to NYSED Application Business Portal
http://portal.nysed.gov
Web based data collection portal
State Aid Output Reports
• Available on SED State Aid Unit website
• Detailed calculations of aids
• Should be monitored regularly
State Aid Payment Schedule
• State Aid payments are based on a schedule of fall,
winter & spring payments
– TRS obligations are paid by state from General State Aid
– Lottery revenues paid in full by 9/1 (not a separate
revenue)
– Fall payments based on fixed percentage
– Winter payments for most aid dependent districts
– Spring payments guarantee districts receive 90% of state
& local revenues by May 1st
– September – any aid claimed in excess of final aid
estimates
– Aid recoveries taken in June
State Aid Payment Schedule
• Public High Cost & Private Excess Cost Aid
– Paid separately (Dec., March, June, Aug., Sept.)
– State share of Medicaid comes in separate payments
• BOCES Aid
– Paid separately (Feb., June, Sept.)
• Full Day K Conversion Aid
– paid in June
State Aid Payment Schedule
• STAR (School Tax Relief Program)
– Taxpayers receive a reduction in their school taxes
based on a reduction in property assessments
– School district is reimbursed by state for lost tax
revenues due to reductions
– Paid in Oct., Nov., Dec., Jan.
– Middle Class STAR – rebate checks to property
owners – Eliminated
New this year…….
– STAR Benefits frozen at 2% increase
Basic Formula 101
Student Count
X
$ amount
X
Ratio
State Aid Factors
•
Pupil Counts
Student count
– Total Aidable Foundation Pupil Units (TAFPU) & TAFPU for Payment
– A count of Average Daily Membership (ADM) or average # of students enrolled including
dual enrolled
– Special Weightings for:
• Students with disabilities
• Summer School FTE
• Declassified Pupils
•
Total Wealth Foundation Pupil Units (TWFPU) – Used to determine Full Value per Pupil
•
Resident Weighted Average Daily Attendance (RWADA)
•
Pupil Need:
–
Free and Reduced Price Lunch % (FRPL)
–
Census Poverty of 5-17 year olds
–
Rural Sparsity
–
LEP/ESL/ELL Student Count
State Aid Factors - Ratio
• District Wealth
– Aid is driven to districts based on need
• property wealth (Full Value)
• personal income of residents (Adjusted Gross
Income)
– Aid Ratios play a role in almost all formulas
including Foundation Aid
• Regional Cost Index
Aid Ratios
•
Combined Wealth Ratio (CWR)
•
Selected Sharing Ratio – Derived From CWR - Used in Foundation Aid
•
Resident Weighted Average Daily Attendance (RWADA) Ratio
– Building Aid
– BOCES Aid
– Hardware Aid
•
Transportation Aid Ratio
•
Public Excess and High Cost Aid Ratio
•
Private Excess Cost Aid Ratio
Types of Aid
• Foundation Aid
– Created in 2007-2008 in response to the CFE
litigation
– over 70% of all state aid
– Frozen at the 2008-2009 level
FOUNDATION AID
LOCAL COST OF
EDUCATION/PUPIL
_
=
Average Cost of
Successful Schools
x
Regional Cost Index
x
Pupil Need Index
EXPECTED LOCAL
CONTRIBUTION/PUPIL
=
x
SELECTED
TAFPU
=
=
Adjusted Statewide
Average School Tax Rate
x
Income Wealth
Adjustment
Average Daily Membership
+
Special Education Pupils
Wtd @ 1.41
+
Declassification Pupils
Wtd @ .50
x
Full Value/Pupil
Census based poverty @.65
FRPL @ .65
LEP @ .5
Sparsity
+
Summer School Pupils
Wtd @ .12
+
Dual Enrolled Pupils
OR
FOUNDATION AID
LOCAL COST OF
EDUCATION/PUPIL
X
=
Average Cost of
Successful Schools
x
Regional Cost Index
x
Pupil Need Index
Census based poverty @.65
FRPL @ .65
LEP @ .5
Sparsity
ADJUSTED STATE
SHARING RATIO
=
The greater of:
1.37-(1.23 * CWR)
1.0-(0.64 * CWR)
0.80-(0.39 * CWR)
0.51-(0.173 * CWR)
X
SELECTED
TAFPU
=
=
Average Daily Membership
+
Special Education Pupils
Wtd @ 1.41
+
Declassification Pupils
Wtd @ .50
+
Summer School Pupils
Wtd @ .12
+
Dual Enrolled Pupils
OR
$500 x Selected TAFPU
FOUNDATION AID
Types of Aid
• Categorical Aids
– Designed to drive $ to certain types of
programs & legislative priorities
– Examples: High Tax, Textbook, Public High
Cost & Private Excess Cost Aids, Computer
Hardware Aid
Types of Aid
• Expense Driven Aids – “Spend to Get”
– Aid ratio is applied to approved expenditures
to generate aid
– Building Aid – based on approved project
costs of purchase, renovations, reconstruction
& new construction (no Building Aid on
maintenance & repairs)
• Aid is paid based on Assumed Amortization of the
approved project costs using a maximum useful life
& statewide average interest rate
Types of Aid
• Expense Driven Aids – “Spend to Get”
– Transportation Aid – based on cost of day to day
operation of transporting pupils to & from school
including:
• Bus purchase and lease
• Contract transportation
• Salaries & allowable benefits of transportation personnel
– BOCES Aid – based on approved BOCES
services, administrative & facilities costs (not
special education or transportation)
– Aid paid year following expense
Types of Aid
• Aid for Students with Disabilities
– Public Placements
• Weighted and aided in Foundation Aid (Form A)
• High Cost Aid for high cost public programs (STAC)
– Private Placements
• Aid based on tuition (SED approved) and FTE (STAC)
For more information:
State Aid & Financial Planning Service
Questar III
10 Empire State Blvd., Castleton, NY 12033
(518) 477-2635
(315) 793-8608
(518) 477-4284 Fax
http://sap.questar.org/