State Aid & Financial Planning Service Questar III 10 Empire State Blvd., Castleton, NY 12033 (518) 477-2635 http://sap.questar.org/ “Basics of State Aid”
Dec 14, 2015
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/