Operating: Operating Aid is the greater of $400 multiplied by a Regional Cost Index (see explanation following) or Aid Ratio Aid multiplied by Selected Total Aidable Pupil Units (TAPU). Aid Ratio Aid is the product of the Operating Aid Ratio (1.37 – (1.10 * Combined Wealth Ratio), with a maximum of .90) multiplied by $4,300 (up from $3,900) multiplied by a Regional Cost Index. The .12 additional weighting for summer school has been eliminated from TAPU (see Summer School, below). Selected TAPU, Total Wealth Pupil Units (TWPU), and TAPU for Expense have been changed to eliminate the .25 additional weighting for Pupils with Special Educational Needs and to add .33 additional weightings for poverty, limited English proficiency, and sparsity. Aid for New York City is on a citywide basis.

Tax Effort: Eliminated.

Tax Equalization: Eliminated.

Transition Adjustment: The base includes 1999-00 Operating, Tax Effort, Tax Equalization, Tax Limitation, Extraordinary Needs and Transition Adjustment aids. No district receives less aid than in the base year (including summer school). Caps on increases are modified by a Need/Resource Index. District Operating Aid is capped at a need-adjusted 2.8 percent over the base (excluding aid attributable to summer school). District increases in Operating Aid over the base (excluding summer school) are capped at a need-adjusted 7.8 percent. The Need/Resource Index is the district’s Extraordinary Needs Ratio (i.e., district Extraordinary Needs percent divided by the State average of 58.7 percent) divided by its CWR.

Extraordinary Needs: Eliminated.

Tax Limitation: Eliminated. 

Improving Teaching and Leadership

Operating Standards Aid: Aid is based on Selected TAPU multiplied by $7.50 plus the product of $61.50 multiplied by the Operating Standards Aid Ratio. If a district’s Needs/Resource Index exceeds 1.0, the Selected TAPU is multiplied by the Needs/Resource Index. The Operating Standards Aid Ratio equals (1 – (.66 * ((.5 * Income Wealth Ratio) + (.5 * 1998-99 Approved Operating Expense/TAPU for Expense divided by $6,058))) and has a minimum of .078.

School districts where 60 percent or more of students fell into level 1 or 2 on the January 1999 English Language Arts Examination will be required to use OSA to improve the quality of instruction available to pupils in those buildings. First priority should be given to recruitment and retention needs for certified teachers and should be focussed on individual school buildings in accordance with student achievement needs as evidenced by the most recent school report cards. All Operating Standards Aid must be used for meeting the State’s learning standards, as detailed in an Operating Standards Aid plan or Comprehensive District Education Plan, approved by the Board of Education.

For school districts falling below this performance standard, the allocation and use of these resources and others that are used for similar purposes must be detailed in the Comprehensive District Education Plan (CDEP), which shall be reviewed and approved by SED. If SED determines that any portion of the allocated funds were not used in conformance with these requirements, the apportionment of OSA for the following year shall be reduced by a like amount. The comprehensive plan shall include an evaluation at the end of each year of the use of these funds including an assessment on how these funds were effectively used to recruit or retain teachers in hard to staff schools and subject matter areas and the effectiveness of the use of these resources for improving student achievement in each identified school building. The plan should also include the steps taken by the district to eliminate any procedural or contractual requirements which impede the recruitment or retention of certified teachers in hard to staff schools and subject matter areas.

Extra Time for Extra Help

Academic Intervention Services (formerly Educationally Related Support Services): The aid equals: a) $537.22 (up from $335.00) multiplied by the Operating Aid Ratio (with a .25 minimum) multiplied by 9% of Selected TAPU; plus, b) $723.95 (up from $635.00) multiplied by the Public Excess Cost Aid Ratio, multiplied by 20% (up from 15%) of the Selected TAPU multiplied by the Extraordinary Needs percent in excess of 60%.

Universal Pre-Kindergarten: The district's estimated grant per pupil is based on $260 plus the adjusted Operating Aid Ratio multiplied by $4,000, with a minimum of $2,000 and a maximum of $4,000. The adjustment is the Extraordinary Needs percent minus 94.0 percent, with the result divided by 4.7 percent. For districts with Universal Pre-Kindergarten programs in 1999-00, the grant per pupil for 2000-01 will not be less than it was in the base year. The estimated pupil count is phased-in at 66.0 percent for New York City and by the free and reduced-price lunch percent for the rest of State. Pupils are prorated to remain within the $225 million appropriation.

Early Grade Class Size Reduction: For eligible districts, grants are provided for reducing class size in grades kindergarten, one, two and three to not more than twenty students per class. The statewide appropriation is $140.0 million.

Limited English Proficiency: Pupils with Limited English Proficiency (i.e., scoring below the 40th percentile on a standard test of English proficiency and receiving LEP services) multiplied by 18.8% (down from 18.9%, due to the .33 additional weighting in TAPU) of the 2000-01 Formula Operating Aid/Selected TAPU.

Summer School: Aid is based on the estimated 1999-00 adjusted summer school average daily attendance multiplied by 12 percent of Operating Aid per pupil.

Building: Aid is equal to the 1999-00 approved building expense, the 2000-01 BANs expenses and the 1999-00 BANs/new debt service expenses in excess of those reported to the Commissioner on November 15, 1999 multiplied by the highest of the 1981-82 through the current year AV/RWADA aid ratio. For projects approved on or after July 1, 2000, expenses are multiplied by the higher of the building aid ratio used for 1999-00 aid less .10 or the current year AV/RWADA aid ratio. Up to 10% of additional building aid is provided for projects approved on or after July 1, 1998. Aid on 2000-01 new debt service is deferred. School districts will be required to structure new debt service agreements so that the debt service payments start in the school year following the year in which the debt was first incurred.

Minor Maintenance and Repair: A total of $50 million in aid for repair of instructional school facilities based on the age and square footage of district buildings. 

Excess Cost - Public: District 1998-99 Approved Operating Expense/TAPU for Expense is multiplied by 1.04, to offset inflationary cost increases, and is limited to a $2,000 to $7,500 range. The aid equals the allowed expense times the aid ratio (1 - (.50 * CWR), with a .25 minimum). The 1.70 weighting is retained for pupils who require special services or programs for 60 percent or more of the school day. High Cost expense must exceed the lesser of $10,000 or four times district AOE/TAPU for Expense multiplied by 1.04. Declassification Aid is included based on 50% of the basic Public Excess Cost Aid per pupil. No district receives less than 99.1% of its 1999-00 aid per pupil. Integrated settings excess cost aid is the product of excess cost aid per pupil multiplied by 60 percent (up from 50 percent) of the attendance of pupils who require special services or programs for 60 percent or more of the school day and are provided those services or programs in the general education setting by qualified personnel.

Excess Cost - Private: Aid is for public school students attending private schools for students with disabilities. Net tuition expense is multiplied by the aid ratio (1 - (.15 * CWR), with a .5 minimum).

 Other Formula Aids

BOCES: BOCES Aid for administrative, shared services, rental and capital expenses plus Aid Due Save-Harmless. Approved expense for BOCES Administrative and Shared Services Aids is based on a salary limit of $30,000. Aid is based on approved 1999-00 administrative and service expenses and the higher of the millage ratio or the Current AV/1998-99 RWADA aid ratio: (1 - (.51 * RWADA Wealth Ratio)) with a .36 minimum and .90 maximum. Rent and Capital Aids are based on 2000-01 expenses multiplied by the Current AV/RWADA aid ratio with a .00 minimum and a .90 maximum. Payable aid is the sum of these aids including save-harmless.

Public School Library Support: Aid equals $9.12 multiplied by the Need/Resource Index in excess of 1.0, multiplied by the 1999-00 public school enrollment including charter school enrollment.

Textbook: Aid equals 1999-00 approved expenditures up to $42.30 per pupil for Regular Textbook Aid plus $15 per pupil for Lottery Textbook Aid multiplied by the Software pupil count (i.e., the combined 1999-00 public plus nonpublic enrollment for pupils attending school in the district plus district pupils attending full time BOCES and private school programs for students with disabilities plus pupils attending the State operated schools at Rome and Batavia and resident pupils placed in Special Act school districts). Textbook Aid is not to exceed actual expenditures for purchase of textbooks during 1999-00.

Reorganization Incentive - Building: Reorganization Incentive Building Aid on new debt service is subjected to the same requirements as regular Building Aid.

Gifted & Talented: Gifted and Talented Aid equals $196 multiplied by 3% of the 1999-00 Combined Adjusted ADA.

Hardware & Technology: Aid is equal to the lesser of 1999-00 expenses or Selected TAPU for Payment multiplied by $19.25 times the Current AV/RWADA Aid Ratio.

Growth : The district's estimated enrollment-based Growth Index in excess of 1.004 multiplied by the estimated 2000-01 Operating Aid.

Special Services: Aid, for the Big 5 city school districts only, is the sum of Career Education Aid and Computer Administration Aid. Career Education Aid equals the aid ratio (1 - (.59 * CWR), with a .36 minimum) multiplied by $3,720, multiplied by the 1999-00 Career Education pupils including the pupils in business and marketing sequences weighted at .16. Computer Administration Aid equals the aid ratio (1 - (.51 * CWR), with a .30 minimum) multiplied by approved expenses not to exceed the maximum of $62.30 multiplied by the Fall 1999 public school enrollment with half-day kindergarten weighted at 1.0.

Transportation: Aid is based upon estimated approved transportation operating expense plus capital expenses as reported to the Commissioner by November 15, 1999 (except in cases of emergency) multiplied by the selected transportation aid ratio with a .9 maximum and a .065 minimum. The selected aid ratio is the highest of 1.263 multiplied by the Operating Aid Ratio or 1.01 - (.46 * RWADA Wealth Ratio) or 1.01 – (.46 * Enrollment Wealth Ratio), plus a sparsity adjustment. The sparsity adjustment is the posititive result of 40 minus the district’s 1998-99 enrollment per square mile, divided by 200.

Reorganization Incentive - Operating: Reorganization Incentive Operating Aid is included as in Present Law. 

Software, Library: Both aids use 1999-00 expenditures and pupil counts. The maximum Software Aid equals $14.98 per pupil and the maximum Library Materials Aid equals $6.00 per pupil, each multiplied by the combined 1999-00 public plus nonpublic enrollment for pupils attending school in the district plus district pupils attending full time BOCES and private school programs for students with disabilities plus pupils attending the State operated schools at Rome and Batavia and resident pupils placed in Special Act school districts. Aid cannot exceed approved expenditures.

Full Day K Conversion: Districts with any half-day kindergarten or no kindergarten programs in 1996-97 and in the base year (1999-00), are eligible for aid equal to the estimated 2000-01 Operating Aid per Selected TAPU multiplied by any increase in full day kindergarten enrollment in 2000-01 over 1999-00.

Instructional Computer Technology: Formula aid is equal to approved 1999-00 expenditures for capital outlays and/or 2000-01 expenses for debt service and/or leases multiplied by the greatest of: (a) the building aid ratio for 2000-01 aid; (b) the millage aid ratio; or (c) 0.36. If the State total exceeds $57.0 million, each district’s aid is prorated to remain within a $57.0 million statewide appropriation.

Shared Services – Noncomponent: For the Big 5 city school districts and other noncomponents of BOCES, formula Shared Services Aid is equal to 1999-00 expenses for instructional support services multiplied by the higher of the millage ratio or the Current AV/1998-99 RWADA aid ratio: (1 - (.51 * RWADA Wealth Ratio) ) with a .36 minimum and .90 maximum. Each district’s aid is prorated to remain within a $15.0 million statewide appropriation.

Grants: Eliminated.

Prior Year Adjustments: Same as for 1999-00.

Teacher Support: A total of $67.48 million is provided in aid and grants to the Big Five City School Districts.

RESCUE: The sum of estimated 2000-01 RESCUE (Rebuilding Schools to Uphold Education) expenses and 1999-00 RESCUE expenses cannot exceed the maximum RESCUE apportionment.

A long-standing policy concern raised by numerous blue ribbon State Aid study commissions has been the issue of geographic variation in the purchasing cost of educational services. It is well established that the purchasing power of $1,000 is substantially less in some areas of the State than others. In order to address that concern, a regional cost index was generated using an approach first developed by education finance researchers in the state of Oregon. Their method recognizes that school districts are often the dominant purchasers of college educated labor in a community. As such, they exercise unusual market influence over the price they pay for such services – a phenomenon which may distort the usual "free-market" model. For this reason, teacher salaries were specifically excluded from the construction of the index, and selected professional salaries used as a proxy.

The index includes 78 titles for which employment at the entry level typically requires a bachelor’s degree, and excludes teachers and categories that tend to be restricted to federal and state government. The wage data are provided by the Bureau of Labor Statistics and are drawn from the 1996-97 Occupational Employment Statistics (OES) Survey. The OES survey is an establishment survey and according to U.S. Department of Labor analysts, "wages and earnings tend to be more accurately reported in establishment surveys as they are based upon administrative records rather than recall by respondents." (1)  OES salary data were provided for all 661 occupational titles within the ten labor force regions of New York State, as well as statewide totals for all titles. The analysis is limited to only the titles used for the index.

The weighted median wage for each region is calculated by first multiplying the median wage for each title by a standard title weighting. The standardized weighting reflects the employees in each title statewide as a percentage of the statewide employees in all 78 titles. By applying a fixed title weight to the median salary of each title within a region, each title in a region is adjusted to reflect the workforce importance of that title statewide. This method, by imputing the same title mix to every labor force region, prevents the resulting salary index from being skewed due to variations in occupational mix across regions.

 The estimates of the cost of the Regents School Aid Proposals for 2005-06 are very tentative. The following assumptions were made in order to produce the estimates:

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