State Aid & Financial Planning ServiceQuestar III

10 Empire State Blvd., Castleton, NY 12033(518) 477-2635

http://sap.questar.org/

“Basics of State Aid”

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.

5

Infusion of Federal Money - Infusion of Federal Money - American Recovery and American Recovery and Reinvestment ActReinvestment Act

The American Recovery and Reinvestment Act (ARRA) The American Recovery and Reinvestment Act (ARRA) primarily allocates funds toprimarily allocates funds to

school districts in four ways:school districts in four ways:

1. Fiscal Stabilization Funds ($3.05b) 1. Fiscal Stabilization Funds ($3.05b)

2. Additional IDEA (611 and 619) Grants 2. Additional IDEA (611 and 619) Grants ($393.9m)($393.9m)

3. Additional Title 1, Part A ($423.4m) 3. Additional Title 1, Part A ($423.4m)

All of the above ended in 2011All of the above ended in 2011 4. Education Jobs Funds ( EJF) ($608 m)4. Education Jobs Funds ( EJF) ($608 m)

EJF ends 6/30/2012EJF ends 6/30/2012

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 – EliminatedNew this year…….

– STAR Benefits frozen at 2% increase

Basic Formula 101

Student Count

X

$ amount

X

Ratio

State Aid FactorsStudent count• Pupil Counts

– 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

EXPECTED LOCALCONTRIBUTION/PUPIL FOUNDATION AID

Average Cost of

Successful Schools

Regional Cost Index

Pupil Need Index

Census based poverty @.65FRPL @ .65

LEP @ .5

Sparsity

Adjusted Statewide

Average School Tax Rate

Income Wealth

Adjustment

=_

x

x

x

x

xSELECTED

TAFPU

Full Value/Pupil

Average Daily Membership

+Special Education Pupils

Wtd @ 1.41

+Declassification Pupils

Wtd @ .50

Summer School Pupils Wtd @ .12

+

= =

+Dual Enrolled Pupils

=

OR

LOCAL COST OF

EDUCATION/PUPIL

ADJUSTED STATE SHARING RATIO FOUNDATION AID

Average Cost ofSuccessful Schools

Regional Cost Index

Pupil Need IndexCensus based poverty @.65FRPL @ .65LEP @ .5Sparsity

The greater of:1.37-(1.23 * CWR)1.0-(0.64 * CWR)0.80-(0.39 * CWR)

0.51-(0.173 * CWR)

=X

x

x

XSELECTED

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

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 ServiceQuestar III

10 Empire State Blvd., Castleton, NY 12033(518) 477-2635

(315) 793-8608

(518) 477-4284 Fax

http://sap.questar.org/