What's happening
This bill changes how school funding is calculated in New York, including using the highest enrollment in the past five years and lowering the minimum income wealth index for local contributions.
Why it matters
Stabilizes School Funding Amid Enrollment Fluctuations. By allowing districts to use the highest student enrollment figure from the past five years, rather than just the most recent year, schools are protected from sudden drops in funding due to temporary enrollment declines. This could help avoid abrupt staffing cuts or program reductions in years when enrollment dips.
Increases State Share for Lower-Income Districts. Lowering the minimum “income wealth index” from 65% to 40% means that districts with less local wealth will have a smaller required local funding contribution before they qualify for state aid. This change could bring significantly more state funding to poorer districts.
Reduces Local Funding Burden for Many Communities. The amended income wealth index floor means more districts will be eligible for increased state support, potentially easing the property tax burden on residents in lower-wealth communities and helping equalize educational opportunities across the state.
May Rebalance Funding Across School Districts. These changes are likely to shift how education dollars are distributed statewide, with some districts—especially those with declining enrollments or lower local wealth—receiving more aid, while wealthier or growing districts could see less impact. This has implications for equity and resource allocation in New York’s public schools.
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Who cares
Headline styles
Adjust School Funding Formula
Plain English, a few words. Used as the page title.
Sponsors
2 Multi-sponsors
History
- Referred to education
- Referred to education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
532
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. GUNTHER, COOK, STECK, CROUCH, HAWLEY, BUTLER, GOODELL -- Multi-Sponsored by -- M. of A. BARCLAY, RIVERA -- read once and referred to the Committee on Education
AN ACT to amend the education law, in relation to foundation aid and the minimum local contribution thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph 1 of paragraph h of subdivision 2 of section 3602 of the education law, as added by section 13 of part B of chapter 57 of the laws of 2007, is amended to read as follows:
(1) Total wealth foundation pupil units shall mean the sum of (i) average daily membership for the year up to five years prior to the base year, whichever is highest, as computed in this section, plus (ii) the full-time equivalent enrollment of resident pupils attending public school elsewhere, less the full-time equivalent enrollment of nonresident pupils, plus (iii) the full-time equivalent enrollment of resident pupils attending full-time in board of cooperative educational services (not otherwise specifically included). Native American pupils of a reservation attending public school, or pupils living on the United States military reservation at West Point attending public school, shall be deemed to be resident pupils of the district providing such school, for purposes of this paragraph. Where a school district has entered into a contract with state university pursuant to subdivision two of section three hundred fifty-five of this chapter under which the school district makes payment in the nature of tuition for the education of certain children residing in the district, such children for whom such tuition payments are made shall be deemed to be resident pupils of such district for the purposes of this paragraph.
§ 2. Subparagraph 4 of paragraph a of subdivision 4 of section 3602 of the education law, as amended by section 5-a of part A of chapter 56 of the laws of 2015, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03129-01-7
A. 532 2
(4) The expected minimum local contribution shall equal the lesser of (i) the product of (A) the quotient arrived at when the selected actual valuation is divided by total wealth foundation pupil units, multiplied by (B) the product of the local tax factor, multiplied by the income wealth index, or (ii) the product of (A) the product of the foundation amount, the regional cost index, and the pupil need index, multiplied by (B) the positive difference, if any, of one minus the state sharing ratio for total foundation aid. The local tax factor shall be established by May first of each year by determining the product, computed to four decimal places without rounding, of ninety percent multiplied by the quotient of the sum of the statewide average tax rate as computed by the commissioner for the current year in accordance with the provisions of paragraph e of subdivision one of section thirty-six hundred nine-e of this part plus the statewide average tax rate computed by the commissioner for the base year in accordance with such provisions plus the statewide average tax rate computed by the commissioner for the year prior to the base year in accordance with such provisions, divided by three, provided however that for the two thousand seven--two thousand eight school year, such local tax factor shall be sixteen thousandths (0.016), and provided further that for the two thousand eight--two thousand nine school year, such local tax factor shall be one hundred fifty-four ten thousandths (0.0154). The income wealth index shall be calculated pursuant to paragraph d of subdivision three of this section, provided, however, that for the purposes of computing the expected minimum local contribution the income wealth index shall not be less than [sixty-five] forty percent [(0.65)] (0.4) and shall not be more than two hundred percent (2.0) and provided however that such income wealth index shall not be more than [ninety-five] one hundred twenty-five percent [(0.95)] (1.25) for the two thousand eight--two thousand nine school year, and provided further that such income wealth index shall not be less than zero for the two thousand thirteen--two thousand fourteen school year. The selected actual valuation shall be calculated pursuant to paragraph c of subdivision one of this section. Total wealth foundation pupil units shall be calculated pursuant to paragraph h of subdivision two of this section.
§ 3. This act shall take effect immediately.
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