Relates to the apportionment of monies to certain school districts

BILL NUMBER:S2786A

Title of bill

An act to amend the education law, in relation to certain formula school aid options for certain school districts

Purpose or general idea of bill

This bill would allow certain public school districts the option of using an alternative combined wealth ratio formula as an additional formula option for the calculation of aid.

Summary of specific provisions

Section 1 amends the education law with respect to the distribution of monies to school districts in Rockland county. The provisions allow the use of the combined wealth ratio formula in which the ratio of non-public school students exceeds 175% , and which has an adjusted gross income per resident textbook enrollment of less than the state average.

Section 2 provides that the effective date of the bill shall be on the first day of July next succeeding the date on which it shall have become law.

Existing law

The existing provisions in the Education Law substantially overstate the wealth level of those school districts where the ratio of resident non-public school students to the total of resident and non-public school students exceeds 175% of the state average ratio and which have an adjusted gross income per resident textbook enrollment of less than the state average.

Justification

School districts function in an environment influenced by a number of socioeconomic, demographic and other factors, some in conflict with the other, with all presenting challenges to local boards of education. Boards of education are required by law to operate as efficiently as possible and are expected to not only meet the needs of students in their community, but also to anticipate future needs. They are expected to establish appropriate reserves for various unexpected expenses and also to have available adequate funding in times of economic downturn. Boards of education must also implement and maintain educational programs that meet or exceed all required federal and state academic standards while at the same time being responsible to the public for their substantial investment in buildings and grounds. All of these challenges are made more difficult in those school districts where the ratio of resident nonpublic school students to the total of resident pupil and nonpublic students exceeds 175% of the state average and where the adjusted gross income per resident textbook enrollment is less than the state average. Current formulas materially overstate the income level of residents in these communities. In order to ensure that such school districts receive state aid on an equitable basis, this proposed legislation would allow an alternative combined wealth ratio formula to be utilized. This would mean that the measure of relative wealth would be indexed

against the statewide average on a combination of two factors, property wealth per pupil and income wealth per resident public

and nonpublic pupil. This bill would have the effect of correcting any deficiencies in the aid formula to such school districts.

Prior legislative history

05/01/09 Referred to Education 01/06/10 Referred to Education

Fiscal implications

It is estimated that this bill will increase foundation aid by approximately $6.18 million over the amounts paid in the 2008-09 school year.

Local fiscal implications

The additional aid provided by this bill will reduce local school tax burdens by approximately $6.18 million.

Effective date

This act shall take effect on the first day of July next succeeding the date on which it shall have become law.