T HE C OUNCIL ’ S 2018 W INTER I NSTITUTE & L OBBY D AY 2018-19 Executive Budget and the Public Schools Robert Lowry Gregory S. Berck, Esq. March 5,2018 www.nyscoss.org
A $769 milli illion (3.0%) In Increase in in School Aid id Aid Category Increase in Millions Foundation Aid $338 New $50 million Community Schools set-side $719 million in Expense-Based and Other Aids 317 traditional “School Aid” Fiscal Stabilization Fund (to be allocated in final 64 budget) • Includes $50 million for Community Expanded Prekindergarten for 3 & 4 year-Olds 15 Schools Empire State After-School Program 10 • Offset by $70 Early College High Schools 9 million cost shift (explained below) Smart Start Computer Science Initiatives 6 • $599 million Breakfast After the Bell 5 remaining increase (2.3%) to support Expanded AP/IB Access 2.5 ongoing costs Other Initiatives 2.5 $769 2
Comparing th the Executive Budget t and th the Educational Conference Board’s “Current Services” Estimate* Categorical Initiatives (Including new $50m Community Schools Set-Aside) Fiscal Stabilization Fund Regular School Aid Educational Conference Board $1.5 billion Executive Budget (Current Services Estimate) $769 million** $1,500 Assumptions: $1,300 •Salaries: +2.5% •Health Insurance: 5.9% $1,100 Dollars in Millions (Projected increase for state workforce) $900 •Pensions: +9.7% (State $1,500 $100 $700 rate increase) $64 **$669 million •Other: +2.1% (State CPI increase in aid to $500 projection) support current •Offset by 2% local tax $300 $605 services – offset by $70 increase million cost shift $100 explained below -- $599 million available. ($100) * ECB also recommends $500 million for targeted priorities. SOURCE: Compiled from ECB and Division of the Budget publications. 3
Expla laining th the Aid id Run Total l In Increase: $6 $651 mill illion, 2.6 2.6% in incr crease • Foundation Aid: $338 million, 2.0 increase • Districts allowed increase under greatest of three tiers, plus a Community Schools increase (if eligible). Minimum increase is 0.25% (179 Districts). • Additional Community Schools Funding & Set-Aside -- $50 million, 133 districts • 84% of districts would receive total Foundation Aid increases of 2% or less. • State would be $3.9 billion below full phase-in amount. • Expense-Based & Other Aids: $314 million, 3.9% increase • Additional Building Aid for safety improvements extended 1 more year. • Other 2018-19 aids calculated according to current law formulas (i.e., increases/decreases not due to executive proposals). • Districts launching Full Day Kindergarten in 2018-19 allowed an additional year of aid in 2019-20 equal to 50% of their 2018-19 aid. • Starting in 2019-20, some expense-based aids would be capped: ₋ BOCES and Transportation Aids – increases capped at 2% for each district ₋ Building Aid – capped at 2% statewide increase, district aid pro-rated down to achieve 2% statewide increase. Estimated impact if in place for 2018-19: $200 million cut 4
Dis istrib ibutio ion of f th the Proposed $338 Mil illi lion, 2.0 .0% Foundatio ion Aid id In Increase Combined Wealth Ratio (Local Ability to Pay) $50 million of % Eligible for Free & Reduced Price Lunches (Student Need) proposed increase 3.0% must be used for Community 2.5% Schools – drops increase available 2.0% to support current services to 1.7% 1.5% 1.0% 0.5% 0.0% SOURCE: Council analysis of NYSED School Aid data 6
Capping Expense-Based Aid ids — start rting wit ith 20 2019-20 Aid id • Increases in Transportation and BOCES Aid would be capped at 2% for each district – districts would lose any increase over 2 percent. – In effect, districts would receive the lesser of calculated aid or 2017-18 aid plus 2%. • Increases in Building Aid would be capped at 2% statewide, excluding New York City (initially). • If the statewide total increase in Building Aid exceeds 2%, each district would have its Building Aid pro-rated down. • New York City would be exempt from this adjustment for projects approved prior to 7/1/2018. 7
Impact of Proposed Cap on BOCES Aid, if in Place for 2018-19 Aid ($51 million loss) % Change in BOCES Aid, Current Law -6% -4% -2% 0% 2% 4% 6% 8% Total State 1.9% Poorest districts stand New York City (8th) 0.0% to lose the most 1 (0.177 to 0.438) 6.7% 2 (0.439 to 0.510) 5.4% 3 (0.511 to 0.574) 1.3% 4 (0.577 to 0.649) 0.2% 5 (0.654 to 0.745) -0.3% 6 (0.746 to 0.866) 3.1% 7 (0.867 to 1.021) 0.1% KEY POINT 8 (1.027 to 1.334) 0.8% Districts with aid changes below +2% 9 (1.335 to 2.211) -2.7% would not be affected 10 (2.213 to 73.320) -3.9% by the cap SOURCE: Council analysis of NYSED School Aid data. 8
Impact of Proposed Cap on Transportation Aid, if in Place for 2018-19 Aid ($80 million loss) % Change in Transportation Aid, Current Law 0% 2% 4% 6% 8% 10% 12% 14% Total State 5.4% New York City (8th) 0.2% 1 (0.177 to 0.438) 6.3% 2 (0.439 to 0.510) 8.5% 3 (0.511 to 0.574) 11.4% 4 (0.577 to 0.649) 5.9% 5 (0.654 to 0.745) 9.2% KEY POINT 6 (0.746 to 0.866) 7.5% Districts with aid changes below +2% 7 (0.867 to 1.021) 8.1% would not be affected 8 (1.027 to 1.334) 6.5% by the cap 9 (1.335 to 2.211) 6.0% 10 (2.213 to 73.320) 11.7% SOURCE: Council analysis of NYSED School Aid data. 9
Impact of Proposed Cap on Building Aid, if in Place for 2018-19 Aid ($70 million loss) % Change in Building Aid, Current Law % Change in Building Aid, after Cap -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Total State 3.7% 6.1% New York City (8th) 6.5% 6.5% 1 (0.177 to 0.438) 3.3% 7.4% KEY POINT 2 (0.439 to 0.510) -2.3% 1.6% All districts (except 3 (0.511 to 0.574) -0.4% 3.6% NYC) would have aid reduced 3.821% 4 (0.577 to 0.649) -0.8% 3.1% 5 (0.654 to 0.745) -1.1% 2.8% 6 (0.746 to 0.866) 3.9% 8.1% 7 (0.867 to 1.021) -0.9% 3.0% 8 (1.027 to 1.334) 7.5% 11.7% 9 (1.335 to 2.211) 6.3% 10.5% 10 (2.213 to 73.320) 6.2% 10.4% SOURCE: Council analysis of NYSED School Aid data. 10
Su Summer Sp Specia ial l Educatio ion Co Cost Sh Shift ift Estimated im impact of of $7 $70 0 mill illion for sch schools ls in in 20 2018 18-19 19 • Over one-fifth of Proposed Change in State Reimbursement Rate districts would have for School-Age Summer Special Education their share of cost Current Law (80%) Proposed (Wealth Adjusted) rise from 20% to 100% 75% 90% 36 districts gain State Reimbursement % 80% 70% 60% • 50% An average wealth 638 districts lose 40% district would have 30% its share rise from 20% 10% 20% to about 50% 0% 0.615 1.715 3.475 3.695 0.177 0.395 0.835 1.055 1.275 1.495 1.935 2.155 2.375 2.595 2.815 3.035 3.255 3.915 4.135 4.355 4.575 4.795 Combined Wealth Ratio SOURCE: Compiled by the Council 11
State Control l of Local l Budgets • Proposal would require certain districts to gain approval for methodology for allocating funds among schools from SED and DOB • No increase in school aid if plan not approved • ESSA Reporting Requirement • SED Capacity • Local Control 12
State Control l of Local l Budgets Beginning with the 2018-19 school year: school districts located in a city with a population of more than 125,000 people: • • Buffalo Syracuse • • New York City Yonkers • Rochester Beginning with the 2019-20 school year: school districts containing at least nine schools and which receive at least 50 percent of their total revenue from State Aid: • • Binghamton Newburgh • • Brentwood Niagara Falls • • Elmira Rome • • Hempstead Schenectady • • Jamestown Utica 13
“Lunch Shaming” • Prohibits differential treatment of students regarding school meals • Staff training and new notification protocols • Including direct outreach to parents when insufficient funds to purchase school meals. • Greater school role in enrolling students as Free/Reduced- Price Lunch • Mandatory policies regarding handling of student with meal debt 14
Breakfast After the Bell ll • Mandate for all school buildings with at least 70% FRPL to offer breakfast after the instructional day has begun • $5 million to support the schools in implementing and $7 million in capital funding for coolers and vending machines • Mandate and unclear if state and federal funding will cover the mandate • Lunch reimbursement will grow to 25 cents/meal in 19-20 15
Charter Schools ls • Basic tuition will increase. Tuition has been frozen but new formula last year unfroze it and increases are linked to district spending • $140 million for supplemental tuition (eliminates NYC reimbursement) • $6 million for facilities reimbursement to NYC • $22.6 million for NYC charters 16
Lobby Day y and Process • Explanation of handouts • Assembly and Senate plan to release and pass “one - house” budgets next week • Religious holidays are sometimes thought of as creating deadlines for budget passage. Passover begins the evening of Friday, March 30. 17
The bigger picture The longer-term
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