Relates to foundation aid and the minimum local contribution thereto.
TITLE OF BILL: An act to amend the education law, in relation to foundation aid and the minimum local contribution thereto
PURPOSE: To provide more equity in the school aid formula for school districts with low income wealth.
Section 1 amends subparagraph 1 of paragraph (h) of subdivision 2 of section 3602 of the education law in order to adjust the school district enrollment level used in creating a total wealth foundation pupil unit.
Section 2 amends subparagraph 4 of paragraph (a) of subdivision 4 of section 3602 of the education law in order to provide equity in the expected local contribution formula.
Section 3 provides the enacting clause.
JUSTIFICATION: The state faces an ongoing challenge in the fair distribution of state aid to our public schools. While all schools benefit from increased funding, low-wealth and rural schools have unique circumstances that create inequity in the state aid formula.
A thinning tax base and low wealth make it difficult for rural schools to fulfill their obligation to provide the quality education that students deserve and taxpayers expect.
This is especially true in areas with decreasing population as schools are forced to increasingly rely on state aid to meet the basic educational requirements of students in their care.
Consequently, reductions in aid disproportionately impact these districts. While wealthier districts debate whether to curtail one of a multitude of foreign language offerings, arts or extracurricular activities, poor and rural schools struggle to meet basic educational needs.
In addition, existing school funding formulas fail to adequately account for the true financial condition of our rural schools. The existing formula is based on a scale that treats the poorest districts equally with districts whose residents have twice the income. The result is an unequal educational experience for students in certain regions of the state which is an issue that the Board of Regents highlighted.
This bill will reduce the floor of the income wealth index formula from .65 to .40 and also provide schools with decreasing populations with the ability to use the highest enrollment in a five year period when calculating total wealth foundation pupil units.
LEGISLATIVE HISTORY: S'7689 of 2012 - referred to rules
FISCAL IMPLICATIONS: Unknown.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 2116 2013-2014 Regular Sessions IN SENATE January 11, 2013 ___________Introduced by Sens. RITCHIE, LIBOUS, MAZIARZ, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Education AN ACT to amend the education law, in relation to foundation aid and the minimum local contribution thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph 1 of paragraph h of subdivision 2 of section 3602 of the education law, as added by section 13 of part B of chapter 57 of the laws of 2007, is amended to read as follows: (1) Total wealth foundation pupil units shall mean the sum of (i) average daily membership for the year UP TO FIVE YEARS prior to the base year, WHICHEVER IS HIGHEST, as computed in this section, plus (ii) the full-time equivalent enrollment of resident pupils attending public school elsewhere, less the full-time equivalent enrollment of nonresi- dent pupils, plus (iii) the full-time equivalent enrollment of resident pupils attending full-time in board of cooperative educational services (not otherwise specifically included). Native American pupils of a reservation attending public school, or pupils living on the United States military reservation at West Point attending public school, shall be deemed to be resident pupils of the district providing such school, for purposes of this paragraph. Where a school district has entered into a contract with state university pursuant to subdivision two of section three hundred fifty-five of this chapter under which the school district makes payment in the nature of tuition for the education of certain children residing in the district, such children for whom such tuition payments are made shall be deemed to be resident pupils of such district for the purposes of this paragraph. S 2. Subparagraph 4 of paragraph a of subdivision 4 of section 3602 of the education law, as amended by section 26 of part A of chapter 58 of the laws of 2011, is amended to read as follows:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06525-01-3 S. 2116 2
(4) The expected minimum local contribution shall equal the lesser of (i) the product of (A) the quotient arrived at when the selected actual valuation is divided by total wealth foundation pupil units, multiplied by (B) the product of the local tax factor, multiplied by the income wealth index, or (ii) the product of (A) the product of the foundation amount, the regional cost index, and the pupil need index, multiplied by (B) the positive difference, if any, of one minus the state sharing ratio for total foundation aid. The local tax factor shall be estab- lished by May first of each year by determining the product, computed to four decimal places without rounding, of ninety percent multiplied by the quotient of the sum of the statewide average tax rate as computed by the commissioner for the current year in accordance with the provisions of paragraph e of subdivision one of section thirty-six hundred nine-e of this part plus the statewide average tax rate computed by the commis- sioner for the base year in accordance with such provisions plus the statewide average tax rate computed by the commissioner for the year prior to the base year in accordance with such provisions, divided by three, provided however that for the two thousand seven--two thousand eight school year, such local tax factor shall be sixteen thousandths (0.016), and provided further that for the two thousand eight--two thou- sand nine school year, such local tax factor shall be one hundred fifty-four ten thousandths (0.0154). The income wealth index shall be calculated pursuant to paragraph d of subdivision three of this section, provided, however, that for the purposes of computing the expected mini- mum local contribution the income wealth index shall not be less than
[sixty-five]FORTY percent [(0.65)](0.4) and shall not be more than two hundred percent (2.0) and provided however that such income wealth index shall not be more than [ninety-five percent (0.95)]ONE HUNDRED TWENTY- FIVE PERCENT (1.25) for the two thousand eight--two thousand nine school year. The selected actual valuation shall be calculated pursuant to paragraph c of subdivision one of this section. Total wealth foundation pupil units shall be calculated pursuant to paragraph h of subdivision two of this section. S 3. This act shall take effect immediately.