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§ 3602. Apportionment of public moneys to school districts employing
eight or more teachers. Notwithstanding any other provisions of this
chapter or any other provisions of law, each school district of the
state employing eight or more teachers shall receive its apportionment
of public money payable during the school year commencing July first,
nineteen hundred ninety-three and during subsequent school years
pursuant to the provisions of this section and in lieu of any
apportionments or payments otherwise payable under any other section of
this chapter except any such apportionments or payments that may be
payable to such district for school lunches, for textbooks, school
library materials, or computer software, for services or programs
provided by a board of cooperative educational services or by a county
vocational education and extension board for such district, for the
education of Indian children of a reservation under a contract with the
state, by virtue of chapter six hundred thirty-five of the laws of
nineteen hundred sixty-one, or for experimental or special programs in
selected school districts, including but not limited to special
apportionments and grants-in-aid pursuant to section thirty-six hundred
forty-one of this article.

1. Definitions. As used in this section the following terms shall be
defined as follows:
a. "Current year" shall mean the school year during which the
apportionment is to be paid pursuant to this section.
b. "Base year" shall mean the school year immediately preceding the
current year.
c. For aid payable in the nineteen hundred ninety-six--ninety-seven
school year, "actual valuation" shall mean the valuation of taxable real
property in a school district obtained by taking the assessed valuation
of taxable real property within such district as it appears upon the
assessment roll of the town, city, village, or county in which such
property is located, for the calendar year immediately preceding the
calendar year in which the base year commenced, after revision as
provided by law, and dividing it by the state equalization rate as
determined by the state board of equalization and assessment, for the
assessment roll of such town, city, village, or county completed during
such preceding calendar year. For aid payable in the nineteen hundred
ninety-seven--ninety-eight school year and thereafter, "actual
valuation" shall mean the valuation of taxable real property in a school
district obtained by taking the assessed valuation of taxable real
property within such district as it appears upon the assessment roll of
the town, city, village, or county in which such property is located,
for the calendar year two years prior to the calendar year in which the
base year commenced, after revision as provided by law, and dividing it
by the state equalization rate as determined by the state board of
equalization and assessment, for the assessment roll of such town, city,
village, or county completed during such preceding calendar year. The
actual valuation of a central high school district shall be the sum of
such valuations of its component districts. For aid payable in the
nineteen hundred ninety-six--ninety-seven school year for purposes of
aid payable pursuant to this chapter, such actual valuation shall not
exceed one hundred seventeen percent of the average of such actual
valuation for the two preceding years. For aid payable in the two
thousand four--two thousand five school year and thereafter, such actual
valuation shall include any actual valuation equivalent of payments in
lieu of taxes determined pursuant to section four hundred eighty-five of
the real property tax law.
d. "Average daily attendance" shall mean the total number of
attendance days of pupils in a public school of a school district plus
the total number of instruction days for such pupils receiving homebound
instruction including pupils receiving instruction through a two-way
telephone communication system, divided by the number of days the
district school was in session as provided in this section. Except for
the purposes of subdivision thirteen of this section, the attendance of
pupils with disabilities attending under the provisions of paragraph c
of subdivision two of section forty-four hundred one of this chapter
shall be added to average daily attendance. Equivalent attendance shall
mean the quotient of the total number of student hours of instruction in
programs in a public school of a school district or a board of
cooperative educational services leading to a high school diploma or a
high school equivalency diploma as defined in regulations of the
commissioner for pupils under the age of twenty-one not on a regular day
school register of the district, divided by one thousand. Except for the
purposes of subdivision thirteen of this section, average daily
attendance shall include the equivalent attendance of the school
district. For the purposes of secondary school weighting, such
equivalent attendance shall be considered as average daily attendance in
grades seven through twelve. In computing such attendance, school
districts may, with the commissioner's approval, exclude attendance for
those days on which school attendance was adversely affected because of
an epidemic or manmade or natural disaster or act of terrorism. In
computing such attendance, the school district shall: (1) determine the
number of religious holidays which fall on a school day within a school
year according to regulations established by the commissioner, such
religious holidays to be duly recognized as such for purposes of this
section by duly adopted resolution of the board of education; (2) deduct
the aggregate attendance on such religious holidays from the total
aggregate attendance, by grade level; (3) deduct such religious holidays
from the total number of days of session, by grade level; and (4)
compute the average daily attendance for the school year.
e. Pupils with special educational needs.
(1) "Percentage of pupils with special educational needs" shall be
based on the following tests: the third and sixth grade reading and
math tests administered in spring of nineteen hundred eighty-five and
the spring of nineteen hundred eighty-six. Such percentage shall be
calculated as follows:
(i) determine the number of pupils tested who scored below the
statewide reference point as determined by the commissioner on each test
administered pursuant to this subparagraph, plus pupils, other than
pupils with handicapping conditions and pupils with limited English
proficiency as defined by the commissioner who are exempt from taking
such tests, provided, however, that a district employing eight or more
teachers in such years but not operating each grade may use the
percentage computed pursuant to this paragraph for the district which in
such years enrolled the greatest number of pupils in such grade from
such district;
(ii) divide the sum of such numbers by the number of such pupils who
took each of such tests, plus pupils, other than pupils with
handicapping conditions and pupils with limited English proficiency as
defined by the commissioner who are exempt from taking such tests,
provided, however, that a district which in any of the applicable school
years did not maintain a home school or employed fewer than eight
teachers, and which in the base year employed eight or more teachers,
may use the scores in a later test as designated by the commissioner for
the purposes of this paragraph;
(iii) express the result as a percentage carried to one decimal place
without rounding; and
(iv) for the purposes of the computation made pursuant to this
subparagraph, pupils attending campus schools of the state university
shall be included in the numbers of pupils in the district in which they
reside. The percentage of such pupils in component districts shall be
used in the case of central high school districts. The commissioner
shall make adjustments for differences in tests and test administration
in accordance to regulations adopted for such purposes.
(2) (i) For the computation of total wealth pupil units, "pupils with
special educational needs" shall be computed by multiplying the
percentage of pupils with special educational needs by the district's
adjusted average daily attendance.
(ii) For the computation of total aidable pupil units pursuant to
subdivision eight of this section for aid payable in the nineteen
hundred ninety-six--ninety-seven and prior school years, "pupils with
special educational needs" shall be computed by multiplying the
percentage of pupils with special educational needs by the district's
adjusted average daily attendance for the base year.
(iii) For the computation of total aidable pupils units pursuant to
subdivision eight of this section for aid payable in the nineteen
hundred ninety-seven--ninety-eight school year and thereafter, "pupils
with special educational needs" shall be the product of the percentage
of pupils with special educational needs, the district's adjusted
average daily attendance for the year prior to the base year, and the
enrollment index.
(3) "Weighted pupils with special educational needs" shall be computed
by multiplying pupils with special educational needs by twenty-five
percentum, with the result rounded up to the next whole number. For the
purposes of the computation of additional aidable pupil units for
inclusion in total wealth pupil units, the computations made pursuant to
this paragraph shall include only resident pupils.
f. "Expense per pupil" shall mean approved operating expense for the
year prior to the base year divided by the sum, computed using year
prior to the base year pupil counts, of the total aidable pupil units
plus weighted pupils with handicapping conditions. Expense per pupil for
each borough in the city school district of the city of New York shall
be the expense per pupil of the entire city school district. For aid
payable in the nineteen hundred ninety-eight--ninety-nine school year,
expense per pupil for the city school district of the city of Buffalo
shall be five thousand nine hundred eighty-five.
g. "Summer session pupils" shall mean those pupils attending approved
programs of instruction operated by the district during the months of
July and August in accordance with the regulations promulgated by the
commissioner.
i. "Pupil wealth ratio" shall mean the number computed to three
decimals without rounding obtained when actual valuation of a school
district divided by the total wealth pupil units is divided by the
statewide average actual valuation per total wealth pupil unit as
computed by the commissioner in accordance with the provisions of this
section. Such statewide average actual valuation per total wealth pupil
unit shall be established each year by the commissioner using the latest
single year actual valuation computed under paragraph c of this
subdivision. Such statewide average shall be transmitted to the school
districts. Such statewide average shall be rounded to the nearest
hundred and shall include the actual valuation and total wealth pupil
units of all school districts eligible for aid pursuant to this section
except central high school districts. For the purposes of calculating
such statewide average the data for the city school district of the city
of New York shall be citywide data.
j. "Comprehensive operating aids base" for the purposes of this
section (i) for aid payable in the nineteen hundred
ninety-three--ninety-four school year, shall mean: the net total amount
a district was eligible to receive during the base year under the
provisions of subdivisions twelve, thirteen, fifteen, sixteen,
twenty-two, twenty-three, twenty-six, and thirty-two of this section and
the adjustment in aid due to the selection made pursuant to subdivision
eighteen of this section, except that for aid payable in the nineteen
hundred ninety-three--ninety-four school year, such term shall mean the
sum of the aids payable in the nineteen hundred ninety-two--ninety-three
school year pursuant to (1) the following subdivisions of section
thirty-six hundred one-a: twelve or fifteen, whichever applies, and
thirteen, or, in the alternative, eighteen; sixteen; twenty; twenty-two;
twenty-three; twenty-five; twenty-six; twenty-nine; thirty; thirty-two;
thirty-three; and thirty-four; (2) an amount equal to the product of
transportation expense approved for aid in the nineteen hundred
ninety-two--ninety-three school year in accordance with subdivision
seven of section thirty-six hundred one-a of this article multiplied by
the remainder of nine-tenths minus the building aid ratio computed for
aid payable in the nineteen hundred ninety-two--ninety-three school year
pursuant to subdivision three of section thirty-six hundred one-a of
this article; and (3) any other adjustments pursuant to paragraphs k, l
and m of subdivision one of section thirty-six hundred nine of this
article, and except that the comprehensive operating aids base for aid
payable in the nineteen hundred ninety-three--ninety-four school year,
and for aid calculations for subsequent school years based on aid
payable in such school year, shall be deemed final and not subject to
change on or after July first, nineteen hundred ninety-six; whereas:
(ii) for aid payable in the nineteen hundred ninety-four--ninety-five
and nineteen hundred ninety-five--ninety-six school years, such term
shall mean the net total amount a district was eligible to receive
during the base year under the provisions of subdivisions twelve,
fifteen, sixteen, twenty-two, twenty-three, twenty-six, and thirty-two
of this section and the adjustment in aid due to the selection made
pursuant to subdivision eighteen of this section, except that: (A) the
comprehensive operating aids base for aid payable in the nineteen
hundred ninety-four--ninety-five school year, and for aid calculations
for subsequent school years based on aid payable in such school year,
shall be deemed final and not subject to change on or after July first,
nineteen hundred ninety-eight, and (B) the comprehensive operating aids
base for aid payable in the nineteen hundred ninety-five--ninety-six
school year, and for aid calculations for subsequent school years based
on aid payable in such school year, shall be deemed final and not
subject to change on or after July first, nineteen hundred ninety-nine;
(iii) for aid payable in the nineteen hundred ninety-six--ninety-seven
school year, such term shall mean the net total amount a district was
eligible to receive during the base year under the provisions of clause
(i) of paragraph a of subdivision twelve, and subdivisions fifteen,
sixteen, twenty-two, twenty-three and twenty-six of this section and the
adjustment in aid due to the selection made pursuant to subdivision
eighteen of this section, except that in a city school district in a
city with a population of more than one million, for aid payable in the
nineteen hundred ninety-six--ninety-seven school year, the comprehensive
operating aids base shall be increased by the amount by which growth aid
for aid payable in the nineteen hundred ninety-four--ninety-five school
year calculated pursuant to subdivision thirteen of this section
notwithstanding section five hundred thirty-eight of chapter one hundred
seventy of the laws of nineteen hundred ninety-four exceeds growth aid
calculated for such school year, and except that the comprehensive
operating aids base for aid payable in the nineteen hundred
ninety-six--ninety-seven school year, and for aid calculations for
subsequent school years based on aid payable in the such school year,
shall be deemed final and not subject to change on or after July first,
two thousand;
(iv) for aid payable in the nineteen hundred
ninety-seven--ninety-eight school year, such term shall mean the net
total amount a district was eligible to receive during the base year
under the provisions of clause (i) of paragraph a of subdivision twelve,
and subdivisions fifteen, sixteen, twenty-two, and twenty-three of this
section and the adjustment in aid due to the selection made pursuant to
subdivision eighteen of this section, except that the comprehensive
operating aids base for aid payable in the nineteen hundred
ninety-seven--ninety-eight school year, and for aid calculations for
subsequent school years based on aid payable in the such school year,
shall be deemed final and not subject to change on or after July first,
two thousand; and
(v) for aid payable in the nineteen hundred ninety-eight--ninety-nine
school year and thereafter, such term shall mean the net total amount a
district was eligible to receive during the base year under the
provisions of clause (i) of paragraph a of subdivision twelve, and
subdivisions fifteen, and sixteen of this section and the adjustment in
aid due to the selection made pursuant to subdivision eighteen of this
section, except that the comprehensive operating aids base for aid
payable in the nineteen hundred ninety-eight--ninety-nine school year
and thereafter, and for aid calculations for subsequent school years
based on aid payable in such school years, shall be deemed final and not
subject to change on or after July first of the school year following
the last school year in which the commissioner may last accept and
certify for payment any additional claim for such school year pursuant
to paragraph a of subdivision five of section thirty-six hundred four of
this article.
k. (1) For aid payable in the nineteen hundred
ninety-six--ninety-seven school year, "alternate pupil wealth ratio"
shall mean the number computed to three decimals without rounding
obtained when the adjusted gross income of a school district for the
calendar year prior to the calendar year in which the base year began
divided by the total wealth pupil units of such district is divided by
the statewide adjusted gross income per total wealth pupil unit. Such
statewide average gross income per pupil shall be established each year
by the commissioner and shall be transmitted to school districts by May
first. For the purposes of this paragraph, the income data shall be
computed in accordance with regulations adopted by the commissioner of
taxation and finance based upon personal income tax returns for the
calendar year two years prior to the calendar year in which the current
school year commences, as reported to the commissioner in February of
the base year, including the results of the temporary school district
address review validation and correction process or, commencing with aid
payable in the nineteen hundred ninety-four--ninety-five school year,
the results of the permanent computerized statewide school district
address match and income verification system. The income of the city
school district of the city of New York shall be the sum of the income
of the boroughs of the city. Such statewide average shall be rounded to
the nearest hundred and shall include the adjusted gross income and
total wealth pupil units of all school districts eligible for aid
pursuant to this section except central high school districts. For the
purposes of calculating such statewide average the data for the city
school district of the city of New York shall be citywide data. The
adjusted gross income of a central high school district shall equal the
sum of the adjusted gross income of each of its component school
districts.
(2) For aid payable in the nineteen hundred ninety-seven--ninety-eight
school year and thereafter, "alternate pupil wealth ratio" shall mean
the number computed to three decimals without rounding obtained when the
adjusted gross income of a school district for the calendar year two
years prior to the calendar year in which the base year began divided by
the total wealth pupil units of such district is divided by the
statewide adjusted gross income per total wealth pupil unit. Such
statewide average gross income per pupil shall be established each year
by the commissioner and shall be transmitted to school districts. For
the purposes of this paragraph, the income data shall be computed in
accordance with regulations adopted by the commissioner of taxation and
finance based upon personal income tax returns for the calendar year
three years prior to the calendar year in which the current school year
commences, as reported to the commissioner by September of the base
year, including the results of the temporary school district address
review validation and correction process or, commencing with aid payable
in the nineteen hundred ninety-four--ninety-five school year, the
results of the permanent computerized statewide school district address
match and income verification system. The income of the city school
district of the city of New York shall be the sum of the income of the
boroughs of the city. Such statewide average shall be rounded to the
nearest hundred and shall include the adjusted gross income and total
wealth pupil units of all school districts eligible for aid pursuant to
this section except central high school districts. For the purposes of
calculating such statewide average the data for the city school district
of the city of New York shall be citywide data. The adjusted gross
income of a central high school district shall equal the sum of the
adjusted gross income of each of its component school districts.
l. "Combined wealth ratio" shall mean the number computed to three
decimals without rounding obtained when fifty per centum of the pupil
wealth ratio is added to fifty per centum of the alternate pupil wealth
ratio.
m. "Attendance ratio" shall mean the number computed to four decimals
without rounding when the aggregate days attendance is divided by the
possible aggregate attendance of all pupils in attendance in the
district, as computed for each school district by the commissioner by
June first of the year following the attendance year.
n. (1) "Enrollment" shall mean the unduplicated count of all children
registered to receive educational services in grades kindergarten
through twelve, including children in ungraded programs, as registered
on the date prior to November first that is specified by the
commissioner as the enrollment reporting date for the school district or
nonpublic school, as reported to the commissioner.
(2) "Public school district enrollment" shall mean the sum of: (1) the
number of children on a regular enrollment register of a public school
district on such date; (2) the number of children eligible to receive
home instruction in the school district on such date; (3) the number of
children for whom equivalent attendance must be computed pursuant to
this subdivision on such date; (4) the number of children with
handicapping conditions who are residents of such district who are
registered on such date to attend programs under the provisions of
paragraph c of subdivision two of section forty-four hundred one of this
chapter; (5) the number of children eligible to receive educational
services on such date but not claimed for aid pursuant to subdivision
seven of section thirty-two hundred two of this chapter; and (6) the
number of children registered on such date to attend programs (i)
pursuant to subdivision two of section three hundred fifty-five of this
chapter or (ii) pursuant to an agreement between the city school
district of the city of New York and Hunter College pursuant to section
sixty-two hundred sixteen of this chapter.
(3) "Nonpublic school enrollment" shall mean the number of children on
a regular enrollment register of a nonpublic school meeting the
compulsory attendance law, excluding any child counted as part of the
enrollment of a public school district.
(4) "Resident public school district enrollment" shall be the public
school district enrollment less the public school district enrollment of
nonresident pupils attending public schools in the district, plus the
public school district enrollment of pupils resident in the district but
attending public schools in another district or state plus the public
school district enrollment of pupils resident in the district but
attending full-time a school operated by a board of cooperative
educational services or a county vocational education and extension
board. Indian pupils who are residents of any portion of a reservation
located wholly or partly within the borders of the state pursuant to
subdivision four of section forty-one hundred one of this chapter and
are 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 the state university pursuant to subdivision two of
section three hundred fifty-five of this chapter under which the school
district makes payments 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. No student shall be counted
more than once, except that, in determining the resident public school
district enrollment of a component school district of a central high
school district the resident public school district enrollment of high
school pupils residing in such component district and attending the
central high school shall be included, and in determining the resident
public school district enrollment of a central high school district the
resident public school district enrollment of elementary school pupils
residing in such central high school district and attending a component
district of the central high school district shall be included.
(5) "Resident nonpublic school district enrollment" shall be the
nonpublic school district enrollment less the nonpublic school district
enrollment of nonresident pupils attending nonpublic schools in the
district, plus the nonpublic school district enrollment of pupils
resident in the district but attending nonpublic schools in another
district of the state.
(6) "Additional public school enrollment" shall mean resident students
with disabilities placed by public school districts in approved private
schools, the New York state school for the blind at Batavia, or the New
York state school for the deaf at Rome and resident students placed in
schools subject to the provisions of chapter five hundred sixty-three of
the laws of nineteen hundred eighty as amended.
(7) In determining enrollment pursuant to subparagraphs two, three,
four, five and six of this paragraph for central high school districts
and all school districts located within the boundaries of a central high
school district, for the purposes of apportionments payable pursuant to
subdivision six of section seven hundred one, subdivision four of
section seven hundred eleven and subdivision four of section seven
hundred fifty-one of this chapter, and subdivision thirteen of this
section, and for the purposes of computing the lunch count pursuant to
paragraph q of this subdivision, the district sharing ratio pursuant to
subparagraph eight of paragraph a of subdivision ten of section
thirty-six hundred forty-one of this article, and the school district
basic contribution pursuant to subdivision eight of section forty-four
hundred one of this chapter, only those children in the grade levels
maintained by a central high school district shall be included in the
enrollment used to apportion aid to such central high school district
and only those children of the grade levels maintained by a component
school district of a central high school district shall be included in
the public school district enrollment of such component school district.
o. "Limited English proficient count" shall mean the number of pupils
served in the base year in programs for pupils with limited English
proficiency approved by the commissioner pursuant to the provisions of
this chapter and in accordance with regulations adopted for such
purpose.
p. "Percent of eligible applicants for the free and reduced price
lunch program" shall mean the quotient of (i) the number of pupils in
kindergarten through grade six attending the public schools of the
district who have applications on file or who are listed on a direct
certification letter confirming their eligibility for participation in
the state and federally funded free and reduced price school lunch
program on the date enrollment was counted in accordance with this
subdivision for the year prior to the base year, except that such count
shall be simply as of October of the year prior to the base year for aid
payable in the nineteen hundred ninety-three--ninety-four and nineteen
hundred ninety-four--ninety-five school years, divided by (ii) the
number of pupils in kindergarten through grade six on a regular
enrollment register of a public school district on the date enrollment
was counted in accordance with this subdivision for the year prior to
the base year, computed to four decimals without rounding, and
multiplied by one hundred to be expressed as a percent to two decimals.
For central high school districts, such percent shall be computed using
the sum of the eligible applicants and enrollment of the component
districts of the central high school district; for any other school
district not operating a school lunch program in the applicable year for
its kindergarten through grade six pupils, the commissioner shall use
the district's percent of pupils with compensatory educational needs as
the percent of eligible applicants for the free and reduced price lunch
program.
q. "Lunch count" shall mean the product of the public school
enrollment of the school district on the date enrollment was counted in
accordance with this subdivision for the base year multiplied by the
percent of eligible applicants for the free and reduced price lunch
program as defined in this subdivision.
r. "Sparsity count", for districts operating a kindergarten through
grade twelve school program, shall mean the product of (i) the base year
public school enrollment of the district and (ii) the quotient, computed
to three decimals without rounding, of the positive remainder of
twenty-five minus the enrollment per square mile divided by fifty and
nine tenths, but not less than zero. Enrollment per square mile shall be
the quotient, computed to two decimals without rounding, of the public
school enrollment of the school district on the date enrollment was
counted in accordance with this subdivision for the base year divided by
the square miles of the district, as determined by the commissioner.
s. "Extraordinary needs count" shall mean the sum of the limited
English proficiency count, the lunch count and the sparsity count.
t. "Percentage of pupils with compensatory educational needs" shall be
based on the following tests: the third and sixth grade reading and math
tests administered in spring of the second year prior to the base year.
Such percentage shall be calculated as follows:
(i) determine the number of pupils tested who scored below the
statewide reference point as determined by the commissioner on each test
administered pursuant to this subparagraph, plus pupils, other than
pupils with handicapping conditions and pupils with limited English
proficiency as defined by the commissioner who are exempt from taking
such tests, provided, however, that a district employing eight or more
teachers in such years but not operating each grade may use the
percentage computed pursuant to this paragraph for the district which in
such years enrolled the greatest number of pupils in such grade from
such district;
(ii) divide the sum of such numbers by the number of such pupils who
took each of such tests, plus pupils, other than pupils with
handicapping conditions and pupils with limited English proficiency as
defined by the commissioner who are exempt from taking such tests,
provided, however, that a district which in any of the applicable school
years did not maintain a home school or employed fewer than eight
teachers, and which in the base year employed eight or more teachers,
may use the scores in a later test as designated by the commissioner for
the purposes of this paragraph;
(iii) express the result as a percentage carried to one decimal place
without rounding; and
(iv) for the purposes of the computation made pursuant to this
subparagraph, pupils attending campus schools of the state university
shall be included in the numbers of pupils in the district in which they
reside. The percentage of such pupils in component districts shall be
used in the case of central high school districts. The commissioner
shall make adjustments for differences in tests and test administration
in accordance with regulations adopted for such purposes.
u. "Pupils with compensatory educational needs" shall be computed by
multiplying the percentage of pupils with compensatory educational needs
by the district's base year public school enrollment.
v. "Concentration factor" shall be computed by adding to one the
quotient of (i) the positive remainder resulting when seven hundred
forty-five thousandths is subtracted from the quotient of the
extraordinary needs count divided by the district's base year public
school enrollment divided by (ii) three hundred twenty thousandths;
provided, however, that such factor shall not be less than one.
w. "Extraordinary needs factor" shall mean the sum of
(i) eleven percent;
(ii) for any city school district in a city with a population of more
than two hundred fifty thousand inhabitants and less than one million
inhabitants according to the latest federal census, two hundred
fifty-four ten-thousandths (0.0254);
(iii) for any city school district in a city with a population of more
than two hundred ten thousand inhabitants and less than two hundred
fifty thousand inhabitants according to the latest federal census,
twenty-seven thousandths (0.027);
(iv) for any city school district in a city with a population of more
than one hundred sixty thousand inhabitants and less than two hundred
ten thousand inhabitants according to the latest federal census,
twenty-two thousandths (0.022);
(v) for any city school district in a city with a population of more
than one hundred thousand inhabitants and less than one hundred sixty
thousand inhabitants according to the latest federal census, forty-one
thousandths (0.041);
(vi) for districts for which the base year public school district
enrollment per square mile year is greater than fifteen hundred, five
thousand three hundred fourteen hundred-thousandths (0.05314); and
(vii) for districts for which the quotient of the extraordinary needs
county divided by the district's base year public school district
enrollment is greater than seven hundred ninety-nine thousandths
(0.799), three hundred sixty-two ten-thousandths (0.0362).
x. "Enrollment index" shall be computed by dividing the public school
enrollment for the current year by public school enrollment for the base
year, both as defined in paragraph n of this subdivision, with the
result carried to three places without rounding.
y. * (i) "Public excess cost aid base," for the purposes of this
section, shall mean:
(a) for aid payable in the two thousand--two thousand one school year,
the aid selected pursuant to paragraph six of subdivision nineteen of
this section in the base year;
(b) for aid payable in the two thousand one--two thousand two school
year, the product of the aid selected pursuant to subparagraph a of
paragraph six of subdivision nineteen of this section in the base year
and nine hundred ninety-one thousandths;
(c) for aid payable in the two thousand two--two thousand three school
year, the product of the amount set forth for each school district as
"Excess Cost - Public" under the heading "2000-01 Base Year Aids" in the
school aid computer listing produced by the commissioner in support of
the executive budget request for the two thousand one--two thousand two
school year and entitled "BT032-1", and ninety-five hundredths;
(d) for aid payable in the two thousand three--two thousand four and
two thousand four--two thousand five school years, the product of the
aid selected pursuant to clause one of subparagraph b of paragraph six
of subdivision nineteen of this section in the base year and ninety-five
hundredths.

* NB Effective until June 30, 2006

* (i) "Public excess cost aid base," for the purposes of this section,
shall mean the aid selected pursuant to paragraph six of subdivision
nineteen of this section in the base year. For aid payable in the
school year nineteen hundred ninety-six--ninety-seven, such public
excess cost aid base shall be reduced by the excess cost aid for pupils
with handicapping conditions received in the base year attributable to
clause four of subparagraph b of paragraph one of subdivision nineteen
of this section. Such aid attributable shall be calculated by
multiplying aid calculated in the base year pursuant to paragraph four
of subdivision nineteen of this section by the quotient of (i) the
product of thirteen hundredths and the resident pupils with handicapping
conditions for the year prior to the base year who were eligible for aid
in the base year pursuant to clause four of subparagraph b of paragraph
one of subdivision nineteen of this section divided by (ii) resident
weighted pupils with handicapping conditions for the year prior to the
base year.

* NB Effective June 30, 2006

* (ii) The public excess cost aid base for aid payable in the nineteen
hundred ninety-three--ninety-four school year, and for aid calculations
for subsequent school years based on aid payable in such school year,
shall be deemed final and not subject to change on or after July first,
nineteen hundred ninety-six; the public excess cost aid base for aid
payable in the nineteen hundred ninety-four--ninety-five school year,
and for aid calculations for subsequent school years based on aid
payable in such school year, shall be deemed final and not subject to
change on or after July first, nineteen hundred ninety-eight; the public
excess cost aid base for aid payable in the nineteen hundred
ninety-five--ninety-six school year, and for aid calculations for
subsequent school years based on aid payable in such school year, shall
be deemed final and not subject to change on or after July first,
nineteen hundred ninety-nine; the public excess cost aid base for aid
payable in the nineteen hundred ninety-six--ninety-seven and nineteen
hundred ninety-seven--ninety-eight school years, and for aid
calculations for subsequent school years based on aid payable in such
school years, shall be deemed final and not subject to change on or
after July first, two thousand; and the public excess cost aid base for
aid payable in the nineteen hundred ninety-eight--ninety-nine school
year and thereafter, and for aid calculations for subsequent school
years based on aid payable in such school years, shall be deemed final
and not subject to change on or after July first of the school year
following the last school year in which the commissioner may last accept
and certify for payment any additional claim for such school year
pursuant to paragraph a of subdivision five of section thirty-six
hundred four of this article.
z. (i) "Extraordinary needs aid base," for the purposes of this
section, shall mean the aid selected pursuant to paragraph e of
subdivision twelve of this section in the base year except that for aid
payable in the two thousand two--two thousand three school year,
"extraordinary needs aid base" shall mean the aid selected pursuant to
paragraph e of subdivision twelve of this section in the year prior to
the base year. (ii) The extraordinary needs aid base for aid payable in
the nineteen hundred ninety-six--ninety-seven and nineteen hundred
ninety-seven--ninety-eight school years, and for aid calculations for
subsequent school years based on aid payable in such school years, shall
be deemed final and not subject to change on or after July first, two
thousand; and the extraordinary needs aid base for aid payable in the
nineteen hundred ninety-eight--ninety-nine school year and thereafter,
and for aid calculations for subsequent school years based on aid
payable in such school years, shall be deemed final and not subject to
change on or after July first of the school year following the last
school year in which the commissioner may last accept and certify for
payment any additional claim for such school year pursuant to paragraph
a of subdivision five of section thirty-six hundred four of this
article.
aa. "School tax relief aid" shall mean state aid payable to a school
district representing tax savings duly provided by the school district
pursuant to section thirteen hundred six-a of the real property tax law
that is claimed by the school district and certified by the state board
of real property services pursuant to subdivision three of section
thirteen hundred six-a of the real property tax law.
2. Computation of resident weighted average daily attendance. For
purposes of this section weighted average daily attendance of a school
district for any school year shall be computed as follows:
a. Weighted average daily attendance shall be determined by using the
average daily attendance of public school pupils in a full-day
kindergarten and grades one through six as the basic unit, with the
attendance of such pupils in one-half day kindergartens measured at
one-half of such basic unit and the attendance of such pupils in grades
seven through twelve measured at one and one-quarter of such basic unit.
The sum of all such units of attendance shall be the weighted average
daily attendance.
b. In computing such attendance, the school district shall (1)
determine the number of religious holidays which fall on a school day
within a school year according to regulations established by the
commissioner, such religious holidays to be duly recognized as such for
purposes of this section by duly adopted resolution of the board of
education; (2) deduct the aggregate attendance on such religious
holidays from the total aggregate attendance, by grade level; (3) deduct
such religious holidays from the total number of days of session, by
grade level; (4) compute the weighted average daily attendance for the
school year.
c. In any instance where a pupil is a resident of another state or an
Indian pupil is a resident of any portion of a reservation located
wholly or partly within the borders of the state pursuant to subdivision
four of section forty-one hundred one of this chapter or a pupil is
living on federally owned land or property, such pupil's attendance
shall be counted as part of the weighted average daily attendance of the
school district in which such pupil is enrolled.
d. Resident weighted average daily attendance for purposes of
determining the aid ratio of a school district for any school year shall
be the weighted average daily attendance for the school year immediately
preceding the base year, less the weighted average daily attendance of
nonresident pupils attending public schools in the district for such
school year, plus the weighted average daily attendance of pupils
resident in the district but attending public schools in another
district or state plus the weighted average daily attendance of pupils
resident in the district but attending full-time a school operated by a
board of cooperative educational services or a county vocational
education and extension board for such school year. The attendance of
nonresident pupils attending public school in the district and resident
pupils attending such schools outside of the district shall be
determined by applying to the number of such pupils registered during
the school year in each case the ratio of aggregate days attendance to
the possible aggregate days attendance of all pupils in attendance in
the district. Indian 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 the state university
pursuant to subdivision two of section three hundred fifty-five of this
chapter under which the school district makes payments 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.
e. In determining the resident weighted average daily attendance of a
component school district of a central high school district for
computing the aid ratio the weighted average daily attendance of high
school pupils residing in such component district and attending the
central high school shall be included. The resident weighted average
daily attendance of a central high school district itself shall be the
sum of the resident weighted average daily attendance of each component
school district computed as provided in the first sentence of this
paragraph.
f. Notwithstanding the provisions of paragraphs d and e of this
subdivision, when a school district shall experience an increase in
resident weighted average daily attendance during the current year
because of the closing in whole, or in part, of a non-public school or a
campus school, or a school previously operated by the United States
government on the United States military reservation at West Point, the
commissioner, in computing any aid ratio of such district, shall permit
the use of such additional resident weighted average daily attendance
for aid ratio purposes during the current year and the next succeeding
year, provided that such additional resident weighted average daily
attendance attributable to such closing, or part thereof, shall be in
excess of one hundred students; provided, however, that such district
which qualifies for an increase in total wealth pupil units pursuant to
paragraph c of subdivision two-b of this section, shall use the increase
in resident weighted average daily attendance, even if such increase in
resident weighted average daily attendance is less than one hundred.
g. After the final computation of aid as provided in subdivision
twelve of this section, a school district which maintains an elementary
school and which does not operate a kindergarten through twelve program
and contracts for education of some or all of its secondary pupils in
another school district which has a higher pupil wealth ratio used for
the current year for the computation of operating aid may elect to
receive the net tuition adjustment provided under the terms of this
subdivision. The total aid receivable under paragraph b or c of
subdivision twelve of this section by the sending district for the
current year shall be divided by the total aidable pupil units of the
sending district used for computation of aid for the current year and
such amount multiplied by the number of secondary pupils for whom the
contract is made. The resulting tuition adjustment will be paid to the
sending district in addition to the aid computed under the provisions of
subdivision twelve of this section less an amount to be deducted and
computed as follows: the total aid receivable under subdivision twelve
of this section by the receiving district for the current year shall be
divided by its total aidable pupil units used for computation of aid for
the current year and such amount multiplied by the number of secondary
pupils received by such district from the sending district during the
current year. If the sending district elects to receive this adjustment,
the tuition payable to the district furnishing instruction shall be
computed in accordance with regulations adopted by the commissioner.

2-a. Computation of adjusted average daily attendance. For purposes of
this section adjusted average daily attendance of a school district for
any school year shall be computed as follows:
a. Adjusted average daily attendance shall be determined by using the
average daily attendance of public school pupils in a full-day
kindergarten and grades one through twelve as the basic unit, with the
attendance of such pupils in one-half day kindergartens measured at
one-half of such basic unit. The sum of all such units of attendance
shall be the adjusted average daily attendance.
b. In computing such attendance, the school district shall (1)
determine the number of religious holidays which fall on a school day
within a school year according to regulations established by the
commissioner, such religious holidays to be duly recognized as such for
purposes of this section by duly adopted resolution of the board of
education; (2) deduct the aggregate attendance on such religious
holidays from the total aggregate attendance, by grade level; (3) deduct
such religious holidays from the total number of days of session, by
grade level; (4) compute the adjusted average daily attendance for the
school year.
c. In any instance where a pupil is a resident of another state or an
Indian pupil is a resident of any portion of a reservation located
wholly or partly within the borders of the state pursuant to subdivision
four of section forty-one hundred one of this chapter or a pupil is
living on federally owned land or property, such pupil's attendance
shall be counted as part of the adjusted average daily attendance of the
school district in which such pupil is enrolled.

2-b. Computation of total wealth pupil units. a. For the school years
commencing July first, nineteen hundred seventy-nine and thereafter
total wealth pupil units will be computed using the adjusted average
daily attendance for the year prior to the base year as computed in this
section, plus the attendance of resident pupils attending public school
elsewhere, less the attendance of nonresident pupils plus the attendance
of resident pupils attending full-time in board of cooperative
educational services (not otherwise specifically included), plus the
additional aidable pupil units as computed pursuant to subdivisions nine
and nine-a of this section, excluding summer school pupils. The
attendance of nonresident pupils attending public school in the district
and resident pupils attending such schools outside of the district shall
be determined by applying to the number of such pupils registered during
the school year in each case the ratio of aggregate days attendance to
the possible aggregate days attendance of all pupils in attendance in
the district. 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.
b. In determining the total wealth pupil units of a component school
district of a central high school district for computing aid ratio the
total wealth pupil units of high school pupils residing in such
component district and attending the central high school shall be
included. The total wealth pupil units of a central high school district
itself shall be the sum of the total wealth pupil units of each
component school district.
c. Notwithstanding the foregoing provisions of this subdivision, when
a school district shall experience an increase in total wealth pupil
units during the current year because of the closing in whole, or in
part, of a nonpublic school or a campus school, or a school previously
operated by the United States government on the United States military
reservation at West Point, the commissioner, in computing any aid ratio
of such district, shall permit the use of such additional total wealth
pupil units during the current year and the next succeeding year,
provided that such additional total wealth pupil units attributable to
such closing, or part thereof, shall be in excess of one hundred
students; provided, however, that such district which qualifies for an
increase in resident weighted average daily attendance pursuant to
paragraph g of subdivision two of this section, shall use the increase
in total wealth pupil units, even if such increase in total wealth pupil
units is less than one hundred.

3. Computation of aid ratios. a. Building and board of cooperative
educational services aid ratios. The aid ratio to be used in determining
building aid apportionments to any school district pursuant to this
section and for boards of cooperative educational services shall be
computed in the following manner:
(1) The actual valuation of such district shall be divided by its
resident weighted average daily attendance as computed pursuant to this
section to determine its actual valuation per resident pupil.
(2) The commissioner shall determine the state average actual
valuation per pupil in resident weighted average daily attendance for
the preceding school year using the latest single year actual valuation
computed under paragraph c of subdivision one of this section. The
commissioner shall transmit such state average to the school districts.
Such statewide average shall be rounded to the nearest hundred and shall
include the actual valuation and resident weighted average daily
attendance of all school districts eligible for aid pursuant to this
section except central high school districts. For the purposes of
calculating such statewide average the data for the city school district
of the city of New York shall be citywide data.
(3) The resident weighted average daily attendance wealth ratio shall
mean the actual valuation per resident pupil of the school district
divided by such state average actual valuation per pupil, carried to
three decimal places without rounding. (i) The building aid ratio shall
be computed by subtracting from one the product obtained by multiplying
the resident weighted average daily attendance wealth ratio by fifty-one
percent. Such aid ratio shall be expressed as a decimal carried to three
places without rounding, but shall not be less than zero. (ii) The
additional building aid ratio for low income wealth school districts
shall be the product obtained by multiplying the state sharing ratio for
comprehensive operating aid by one and two hundred sixty-three
thousandths. (iii) The board of cooperative educational services aid
ratio shall be computed by subtracting from one the product obtained by
multiplying the resident weighted average daily attendance wealth ratio
by fifty-one percent. Such aid ratio shall be expressed as a decimal
carried to three places without rounding but shall not be less than
zero.
b. Computation of the state sharing ratio for comprehensive operating
aid. The state sharing ratio shall be the higher of: (1) a value
computed by subtracting from one and thirty-seven hundredths the product
obtained by multiplying the combined wealth ratio by one and
twenty-three hundredths; or (2) a value computed by subtracting from one
the product obtained by multiplying the combined wealth ratio by
sixty-four hundredths; or (3) a value computed by subtracting from
eighty hundredths the product obtained by multiplying the combined
wealth ratio by thirty-nine hundredths; or (4) a value computed by
subtracting from fifty-one hundredths the product obtained by
multiplying the combined wealth ratio by twenty-two hundredths. Such
result shall be expressed as a decimal carried to three places without
rounding, but shall not be greater than ninety hundredths nor less than
zero.
c. Computation of the extraordinary needs aid ratio. The extraordinary
needs aid ratio shall be computed by subtracting from one the product
computed to three decimals without rounding obtained by multiplying the
alternate pupil wealth ratio by forty hundredths. Such result shall be
expressed as a decimal carried to three places without rounding, but
shall not be less than zero.

4. Notwithstanding any other provision of this article to the
contrary, when a school district operates for a half day session because
of a parent-teacher conference or workshops for teachers, it shall be
apportioned with the same amount of state aid for pupils attending
kindergarten as if both morning and afternoon kindergarten groups were
in attendance although only one kindergarten class attends school. The
school district shall provide that morning and afternoon kindergarten
groups shall alternate in attendance if more than one half day session
is scheduled during the school year.

5. Impacted aid. In addition to the foregoing apportionments there
shall be apportioned to any school district which experiences an
increase in student enrollment during the school year commencing July
first, nineteen hundred seventy-two or any year thereafter because of
the closing in whole or in part of a nonpublic school, or campus school,
an amount computed as herein provided.
a. Definitions. As used herein:
1. "Enrolled student" shall mean any student currently enrolled in a
public school of any school district or borough who attended a nonpublic
school, or campus school, during either the base year or current year
and whose enrollment in such public school was caused by the closing in
whole or in part of a nonpublic school.
2. "Borough" shall mean any borough of the city school district of the
city of New York.
3. "Aid ratio" shall mean the result obtained by subtracting from one
the product obtained by multiplying fifty-one per centum by the pupil
wealth ratio. Such aid ratio shall be expressed as a decimal carried to
three places without rounding and shall not be less than thirty-six per
centum.
b. Computation. The amount to be apportioned shall be the product of:
1. the number of enrolled students in any school district or borough
multiplied by one hundred dollars; and
2. the aid ratio of such school district or borough.
c. The city school district of the city of New York shall be entitled
to compute such apportionment using the enrolled students and aid ratio
for each such borough.
d. Any apportionment as herein computed shall be subject to
regulations promulgated by the commissioner and shall not be deducted in
determining approved operating expenses of the district pursuant to
subdivision eleven of this section.
e. The apportionment as herein computed shall be paid in accordance
with the provisions of section thirty-six hundred nine-a of such law
during the current school year and the school year next succeeding such
year.

6. Apportionment for capital outlays and debt service for school
building purposes. Any apportionment to a school district pursuant to
this subdivision shall be based upon base year approved expenditures for
capital outlays incurred prior to July first, two thousand one from its
general fund, capital fund or reserved funds and current year approved
expenditures for debt service, including debt service for refunding bond
issues eligible for an apportionment pursuant to paragraph g of this
subdivision and lease or other annual payments to the New York city
educational construction fund created by article ten of this chapter or
the city of Yonkers educational construction fund created by article
ten-B of this chapter which have been pledged to secure the payment of
bonds, notes or other obligations issued by the fund to finance the
construction, acquisition, reconstruction, rehabilitation or improvement
of the school portion of combined occupancy structures, or for lease or
other annual payments to the New York state urban development
corporation created by chapter one hundred seventy-four of the laws of
nineteen hundred sixty-eight, pursuant to agreement between such school
district and such corporation relating to the construction, acquisition,
reconstruction, rehabilitation or improvement of any school building, or
for annual payments to the dormitory authority pursuant to any lease,
sublease or other agreement relating to the financing, refinancing,
acquisition, design, construction, reconstruction, rehabilitation,
improvement, furnishing and equipping of, or otherwise provide for
school district capital facilities or school district capital equipment
made under the provisions of section sixteen hundred eighty of the
public authorities law, or for annual payments pursuant to any lease,
sublease or other agreement relating to the financing, refinancing,
acquisition, design, construction, reconstruction, rehabilitation,
improvement, furnishing and equipping of, or otherwise providing for
educational facilities of a city school district under the provisions of
section sixteen of chapter six hundred five of the laws of two thousand,
or for lease, lease-purchase or other annual payments to another school
district or person, partnership or corporation pursuant to an agreement
made under the provisions of section four hundred three-b, subdivision
eight of section twenty-five hundred three, or subdivision six of
section twenty-five hundred fifty-four of this chapter, provided that
the apportionment for such lease or other annual payments under the
provisions of section four hundred three-b, subdivision eight of section
twenty-five hundred three, or subdivision six of section twenty-five
hundred fifty-four of this chapter, other than payments under a
lease-purchase agreement or an equivalent agreement, shall be based upon
approved expenditures in the current year. Approved expenditures for
capital outlays from a school district's general fund, capital fund or
reserved funds that are incurred on or after July first, two thousand
two, and are not aidable pursuant to subdivision six-f of this section,
shall be aidable as debt service under an assumed amortization
established pursuant to paragraphs e and j of this subdivision. In any
such case approved expenditures shall be only for new construction,
reconstruction, purchase of existing structures, for site purchase and
improvement, for new garages, for original equipment, furnishings,
machinery, or apparatus, and for professional fees and other costs
incidental to such construction or reconstruction, or purchase of
existing structures. In the case of a lease or lease-purchase agreement
entered pursuant to section four hundred three-b, subdivision eight of
section twenty-five hundred three or subdivision six of section
twenty-five hundred fifty-four of this chapter, approved expenditures
for the lease or other annual payments shall not include the costs of
heat, electricity, water or other utilities or the costs of operation or
maintenance of the leased facility. An apportionment shall be available
pursuant to this subdivision for construction, reconstruction,
rehabilitation or improvement in a building, or portion thereof, being
leased by a school district only if the lease is for a term of at least
ten years subsequent to the date of the general construction contract
for such construction, reconstruction, rehabilitation or improvement.
Each school district shall prepare a five year capital facilities plan,
pursuant to regulations developed by the commissioner for such purpose,
provided that in the case of a city school district in a city having a
population of one million inhabitants or more, such facilities plan
shall comply with the provisions of section twenty-five hundred ninety-p
of this chapter and this subdivision. Such plan shall include, but not
be limited to, a building inventory, and estimated expense of facility
needs, for new construction, additions, alterations, reconstruction,
major repairs, energy consumption and maintenance by school building, as
appropriate. Such five year plan shall include a priority ranking of
projects and shall be amended if necessary to reflect subsequent on-site
evaluations of facilities conducted by state supported contractors.
a. For capital outlays for such purposes first incurred on or after
July first, nineteen hundred sixty-one and debt service for such
purposes first incurred on or after July first, nineteen hundred
sixty-two, the actual approved expenditures less the amount of civil
defense aid received pursuant to the provisions of section thirty-five
of chapter seven hundred eighty-four of the laws of nineteen hundred
fifty-one as amended shall be allowed for purposes of apportionment
under this subdivision but not in excess of the following schedule of
cost allowances:
(1) For new construction and the purchase of existing structures, the
cost allowances shall be based upon the rated capacity of the building
or addition and a basic per pupil allowance of up to six thousand three
hundred seventy-five dollars adjusted monthly by a statewide index
reflecting changes in the cost of labor and materials since July first,
nineteen hundred ninety-two, established by the commissioner of labor,
modified by an annual county or multi-county labor market composite wage
rate, established by the commissioner of labor in consultation with the
commissioner, for July first of the base year, commencing July first,
nineteen hundred ninety-seven for general construction contracts awarded
on or after July first, nineteen hundred ninety-eight, indexed to the
median of such county or multi-county rates, but not less than one.
Such base allowance shall apply to a building or an addition housing
grades prekindergarten through six and shall be adjusted for a building
or an addition housing grades seven through nine by a factor of one and
four-tenths, for a building or an addition housing grades seven through
twelve by a factor of one and five-tenths, for a building or addition
housing special education programs by a factor of two, except that where
such building or addition is connected to, or such space is located
within, a public school facility housing programs for nondisabled
pupils, as approved by the commissioner, a factor of three shall be
used. Rated capacity of a building or an addition shall be determined by
the commissioner based on space standards and other requirements for
building construction specified by the commissioner. Such assigned
capacity ratings shall include, in addition to those spaces used for the
instruction of pupils, those spaces which are used for elementary and
secondary school libraries, cafeterias, prekindergarten instructional
rooms, teachers' conference rooms, gymnasiums and auditoriums. For new
construction projects approved on or after July first, two thousand, by
the voters of the school district or by the board of education of a city
school district in a city with more than one hundred twenty-five
thousand inhabitants, and/or the chancellor in a city school district in
a city having a population of one million or more, such rated capacity
for new buildings and additions constructed to replace existing
buildings that, in the judgment of the commissioner, have not been
adequately maintained and have not reached their projected useful life
shall be reduced by the commissioner by an amount proportional to the
remaining unused portion of the useful life of the existing buildings,
provided however that the commissioner may waive such requirement upon a
finding that replacement of the existing building is necessary to
protect the health and safety of students or staff, that reconstruction
and modernization of the existing building would not adequately address
such health and safety problems, and that the need to replace the
building was not caused by failure to adequately maintain the building.
If the commissioner of labor resets the statewide index reflecting
changes in the costs of labor and materials since July first, nineteen
hundred ninety-two, the commissioner shall adopt regulations to
supersede the basic per pupil allowance of up to six thousand three
hundred seventy-five dollars to the imputed allowance in effect at that
time.
(2) Where a school district has expenditures for site purchase,
grading or improvement of the site, original furnishings, equipment,
machinery or apparatus, or professional fees, or other incidental costs,
the cost allowances for new construction and the purchase of existing
structures may be increased by the actual expenditures for such purposes
but by not more than the product of the applicable cost allowance
established pursuant to subparagraph one of this paragraph and twenty
per centum for school buildings or additions housing grades
prekindergarten through six and by not more than the product of such
cost allowance and twenty-five per centum for school buildings or
additions housing grades seven through twelve and by not more than the
product of such cost allowance and twenty-five per centum for school
buildings or additions housing special education programs as approved by
the commissioner.
(3) Cost allowances for reconstructing or modernizing structures shall
not exceed one hundred per centum of the cost allowances for the
equivalent new construction over the projected useful life of the
building, to be determined in accordance with the regulations of the
commissioner. Reconstruction projects shall reasonably meet the criteria
established for new construction, including but not limited to energy,
fire, personal safety and space per pupil standards.
(4) The commissioner shall promulgate regulations prescribing the
methodology for establishing a multi-year cost allowance for the purpose
of computation of building aid to school districts and a procedure for
school districts to appeal the determination that a building has not
been adequately maintained, as required by subparagraphs one and three
of this paragraph. Such methodology shall include the development of a
building replacement cost allowance schedule for the replacement of
major building systems of a building over its projected useful life and
the construction of new buildings and additions for projects that have
been approved on or after July first, two thousand by the voters of the
school district or by the board of education of a city school district
in a city with more than one hundred twenty-five thousand inhabitants,
and/or the chancellor in a city school district in a city having a
population of one million or more. For purposes of this subdivision,
"major building systems" shall mean the electrical, plumbing, heating,
ventilation and air conditioning systems, and the roof and other major
structural elements of a school building.
(5) For costs relating to the construction, acquisition,
reconstruction or leases of any school building project conducted by or
on behalf of a city school district in a city having a population of one
million inhabitants or more, where a general construction contract has
been awarded or a purchase or lease agreement was executed on or after
July first, two thousand four, the cost allowance for such project shall
include: (a) construction and incidental costs where such costs are
associated with multistory construction necessitated by substandard site
sizes, site security costs, difficulties with delivery of construction
supplies, increased fire resistence and fire suppression costs, and (b)
site acquisition, environmental remediation and building demolition
costs, provided, however, that costs which are eligible for an
apportionment pursuant to this subparagraph on or before July first, two
thousand six shall be deemed to be debt service for the two thousand
five--two thousand six school year on new bonds and capital notes
aidable in July following the current year pursuant to clause (b) of
subparagraph one of paragraph f of this subdivision.
On or before January first, two thousand nine, the commissioner shall
report to the director of the budget, the chair of the senate finance
committee and the chair of the assembly ways and means committee on the
projects which received funding pursuant to the provisions of this
subparagraph, and the overall implementation of this subparagraph.
b. (1) The apportionment for school building purposes to any district
shall be determined by adding the amount of its current year approved
expenditures for lease or other annual payments under the provisions of
section four hundred three-b, subdivision eight of section twenty-five
hundred three, or subdivision six of section twenty-five hundred
fifty-four of this chapter, other than payments under a lease-purchase
agreement or an equivalent agreement, plus the amount of its current
year approved expenditures under an assumed amortization for capital
outlays for school building purposes from its general fund, capital fund
or from a reserve fund to the amount of its current year approved
expenditures for debt service for such purposes and multiplying the sum
by its aid ratio. Expenditures made for computer equipment, including
original purchase and installation of hardware, conduit, wiring, and
powering of hardware installations in computer classrooms, or for
building or campuswide local area network systems and in-building
elements of other wide area networks, including the original purchase
and installation of conduit, wiring, and powering of hardware
installations, may be included in approved expenditures for building aid
pursuant to this paragraph on the approval of the commissioner
regardless of any minimum cost requirement that may be applied to other
approved expenditures pursuant to this section. Such equipment expenses
claimed for aid under this subdivision shall not be claimed for aid
under any other provisions of this chapter.
(2) Additional apportionment for certain school building projects.
(i) Eligibility. All school building projects (a) approved by the voters
of the school district or (b) approved by the board of education of a
city school district in a city with more than one hundred twenty-five
thousand inhabitants, and/or the chancellor in a city school district in
a city having a population of one million or more or (c) in the case of
a construction emergency project, approved by the board of education of
any school district or by the chancellor in a city school district in a
city having a population of one million or more, for projects approved
on or after July first, nineteen hundred ninety-eight, shall be eligible
for an additional apportionment pursuant to this subparagraph to the
extent that expenditures for such projects are otherwise aidable
pursuant to this subdivision, provided that where such projects are
leases, such projects would only be aidable pursuant to this subdivision
following the approval of the voters of the school district if entered
into pursuant to section four hundred three-b of the education law, and
provided that for all such projects so approved on or after July first,
two thousand, expenditures directly related to swimming pools shall not
be eligible for such additional apportionment, and further provided that
for the purposes of this subdivision a construction emergency project
shall mean a school construction project approved on or after July
first, two thousand, to remediate emergency situations which arise in
public school buildings and threaten the health and/or safety of
building occupants, as a result of the unanticipated discovery of
asbestos or other hazardous substances during construction work on a
school or significant damage caused by a fire, snow storm, ice storm,
excessive rain, high wind, flood or similar catastrophic event which
results in the necessity for immediate repair.
(ii) Apportionment. The apportionment pursuant to this subparagraph
shall equal the product of such eligible approved expenses determined in
accordance with the provisions of clause (i) of this subparagraph and
this section and the incentive decimal computed for use in the year in
which the project was approved. The incentive decimal shall equal the
positive remainder resulting when the district's building aid ratio
selected pursuant to paragraph c of this subdivision is subtracted from
the enhanced building aid ratio. The enhanced building aid ratio shall
equal the sum of the building aid ratio selected for use in the current
year pursuant to paragraph c of this subdivision and one-tenth, computed
to three decimals without rounding, but not more than (a) ninety-eight
hundredths for a high need school district, as defined pursuant to
regulations of the commissioner, for all school building projects
approved by the voters of the school district or by the board of
education of a city school district in a city with more than one hundred
twenty-five thousand inhabitants, and/or the chancellor in a city school
district in a city having a population of one million or more, on or
after July first, two thousand five, or (b) ninety-five hundredths for
any other school building project or school district, nor less than
one-tenth.
c. (1) For aid payable in the school year nineteen hundred
ninety-three--ninety-four and earlier, any school district may compute
aid under the provisions of this subdivision, or under subdivision six
of section thirty-six hundred one-a of this article, using the building
aid ratio computed for use in the current year or the aid ratio computed
for use in any year commencing with the nineteen hundred
eighty-one--eighty-two school year as computed by the commissioner based
on data on file with the education department as of July first, nineteen
hundred ninety-six, and; provided that, school districts who are
eligible for aid under paragraph f of subdivision fourteen of this
section may compute aid under the provisions of this subdivision using
the aid ratio so computed for the reorganized district or the highest of
the aid ratios so computed for any of the individual school districts
which existed prior to the date of the reorganized school district.
(2) (a) For aid payable in the school years nineteen hundred
ninety-four--ninety-five and thereafter for all school building projects
approved by the voters of the school district or by the board of
education of a city school district in a city with more than one hundred
twenty-five thousand inhabitants, and/or the chancellor in a city school
district in a city having a population of one million or more, before
July first, two thousand, any school district may compute aid under the
provisions of this subdivision using the building aid ratio computed for
use in the current year or the aid ratio computed for use in any year
commencing with the nineteen hundred eighty-one--eighty-two school year
as such earlier aid ratios are computed by the commissioner based on
data on file with the education department on or before July first of
the third school year following the school year in which aid is first
payable; provided that, school districts who are eligible for aid under
paragraph f of subdivision fourteen of this section may compute aid
under the provisions of this subdivision using the aid ratio so computed
for the reorganized district or the highest of the aid ratios so
computed for any of the individual school districts which existed prior
to the date of the reorganized school district.
(b) For aid payable in the school years two thousand--two thousand one
and thereafter for all school building projects approved by the voters
of the school district or by the board of education of a city school
district in a city with more than one hundred twenty-five thousand
inhabitants, and/or the chancellor in a city school district in a city
having a population of one million or more, on or after July first, two
thousand, any school district shall compute aid under the provisions of
this subdivision using the sum of the high-need supplemental building
aid ratio, if any, computed pursuant to clause (c) of this subparagraph
and the greater of (i) the building aid ratio computed for use in the
current year; or (ii) a building aid ratio equal to the difference of
the aid ratio that was used or that would have been used to compute an
apportionment pursuant to this subdivision in the nineteen hundred
ninety-nine--two thousand school year as such aid ratio is computed by
the commissioner based on data on file with the department on or before
July first of the third school year following the school year in which
aid is first payable, less one-tenth; or (iii) for all such school
building projects approved by the voters of the school district or by
the board of education of a city school district in a city with more
than one hundred twenty-five thousand inhabitants, and/or the chancellor
in a city school district in a city having a population of one million
or more, on or after July first, two thousand and on or before June
thirtieth, two thousand four, for any school district for which the
pupil wealth ratio is greater than two and five-tenths in the school
year in which such school building project was approved by the voters of
the school district or by the board of education of a city school
district in a city with more than one hundred twenty-five thousand
inhabitants, and/or the chancellor in a city school district in a city
having a population of one million or more and for which the alternate
pupil wealth ratio is less than eighty-five hundredths in such school
year, and for all such school building projects approved by the voters
of the school district or by the board of education of a city school
district in a city with more than one hundred twenty-five thousand
inhabitants, and/or the chancellor in a city school district in a city
having a population of one million or more, on or after July first, two
thousand five and on or before June thirtieth, two thousand seven, for
any school district for which the pupil wealth ratio was greater than
two and five-tenths in the two thousand--two thousand one school year
and for which the alternate pupil wealth ratio was less than eighty-five
hundredths in the two thousand--two thousand one school year, the
additional building aid ratio; provided that, school districts who are
eligible for aid under paragraph f of subdivision fourteen of this
section may compute aid under the provisions of this subdivision using
the difference of the highest of the aid ratios so computed for the
reorganized district or the highest of the aid ratios so computed for
any of the individual school districts which existed prior to the date
of the reorganized school district less one-tenth.
(c) For aid payable in the school years two thousand five--two
thousand six and thereafter for all school building projects approved by
the voters of the school district or by the board of education of a city
school district in a city with more than one hundred twenty-five
thousand inhabitants, and/or the chancellor in city school district in a
city having a population of one million or more, on or after July first,
two thousand five, high need school districts, as defined pursuant to
regulations of the commissioner, may compute aid under the provisions of
this subdivision using the high-need supplemental building aid ratio,
which shall be the lesser of (A) the product, computed to three decimals
without rounding, of the greater of the building aid ratios computed
pursuant to subclauses i, ii and iii of clause (b) of this subparagraph
multiplied by five percent, or (B) the positive remainder of
ninety-eight one-hundredths less the greater of the building aid ratios
computed pursuant to subclauses i, ii and iii of clause (b) of this
subparagraph.
d. Additional apportionment of building aid for structural inspection
of school buildings. In addition to the foregoing apportionments made to
a school district under the provisions of this subdivision, the
commissioner is hereby authorized to apportion to any school district an
amount in accordance with this subdivision for structural inspections of
school buildings used for instructional purposes conducted pursuant to
sections four hundred nine-d and four hundred nine-e of this chapter and
the regulations of the commissioner implementing such sections. The
amount of such apportionment shall equal the product of the building aid
ratio defined pursuant to paragraph c of this subdivision and the actual
approved expenses incurred by the district in the base year for each
school building so inspected by a licensed architect or licensed
professional engineer, provided that the amount of such apportionment
shall not exceed the structural inspection aid ceiling, and provided
further that no state aid claim for the inspection of such building has
been submitted within the five years prior to the submission of a claim.
For inspections conducted in the nineteen hundred
ninety-two--ninety-three school year, the structural inspection aid
ceiling shall be ten thousand dollars. For inspections conducted in the
nineteen hundred ninety-three--ninety-four school year and thereafter,
the inspection aid ceiling shall be ten thousand dollars plus an amount
computed by the commissioner in accordance with regulations adopted for
such purpose, on the basis of an index number reflecting changes in the
costs of labor and materials from July first, nineteen hundred
ninety-three.
e. (1) Apportionments payable for the nineteen hundred
ninety-three--ninety-four through the two thousand one--two thousand two
school years to the city school district of the city of New York. (a)
For the purposes of calculating the apportionment payable to the city
school district of the city of New York pursuant to this subdivision for
the nineteen hundred ninety-three--ninety-four through the two thousand
one--two thousand two school years, current year approved expenditures
for debt service shall mean expenditures for debt service that would be
incurred during the current year based on an assumed amortization for a
period of thirty years of the total approved costs relating to the
construction, acquisition, reconstruction, rehabilitation or improvement
of any school building, and based on an assumed rate of annual interest
applied to such amortization, both to be established by the commissioner
pursuant to this subparagraph.
(b) The commissioner shall establish an assumed amortization for a
period of thirty years commencing with the date of the award of a
general contract by the school construction authority of the city of New
York, or by another body or official designated by law, relating to the
construction, acquisition, reconstruction, rehabilitation or improvement
of any school building within the city school district of the city of
New York. Such assumed amortization shall provide for equal monthly
payments of principal and interest based on an interest rate established
by the commissioner for such purpose for the school year during which
such general contract is awarded. Such estimated average interest rate
and such actual average interest rate shall be expressed as a decimal to
five places rounded to the nearest eighth of one-one hundredth.
(c) By the first day of September of the current year the comptroller
of the city of New York shall provide to the commissioner an analysis,
as prescribed by the commissioner, of the actual average interest rate
applied to all capital debt incurred by the city of New York during the
base year and of the estimated average interest rate applied to all
capital debt to be incurred by the city of New York during the current
year. Upon approval by the commissioner such actual average interest
rate shall be established as the interest rate applicable to the base
year for the purposes of this subparagraph and subparagraph two of this
paragraph, and such estimated average interest rate shall be tentatively
established as the interest rate applicable to the current year, except
that all apportionments of aid payable during the current year based on
such estimated average interest rate shall be recalculated in the
following year and adjusted as appropriate based on the appropriate
actual average interest rate then established by the commissioner.
(d) By the first day of November, nineteen hundred ninety-six the
chancellor of the city school district of the city of New York shall
provide to the commissioner an analysis of any outstanding debt of the
city of New York which had originally been incurred by such city or its
subdivisions for capital projects related to school buildings of the
city school district of the city of New York for which general
construction contracts were awarded prior to July first, nineteen
hundred eighty-eight. Such analysis shall include the total principal
amount borrowed, the total capital expenditures included in such
principal for capital projects related to school buildings of the city
school district of the city of New York for which general construction
contracts were awarded prior to July first, nineteen hundred
eighty-eight, the ratio of such capital expenditures to such total
principal expressed as a decimal to five places without rounding and the
annual principal and interest payment scheduled for each year remaining
in the amortization of such principal as of July first, nineteen hundred
ninety-six for all such borrowings reported to the department on the "SA
121 Form Building Expenses Worksheet, 1995-96 State Aid" bearing a run
date of July tenth, nineteen hundred ninety-five which list shall
constitute the maximum principal outstanding and eligible for aid
pursuant to the provisions of this paragraph. Notwithstanding any other
provision of this subdivision, for aids payable in the nineteen hundred
ninety-six--ninety-seven school year and thereafter, the approved debt
service included in such principal and interest payments for the
purposes of calculating an apportionment pursuant to this subdivision
shall equal the product of: (i) five tenths; (ii) the principal and
interest payments scheduled for the current year as reported in such
analysis; and (iii) the ratio of such capital expenditures to such total
principal as reported in such analysis.
(2) Apportionments payable for the two thousand two--two thousand
three school year and thereafter to the city school district of the city
of New York. (a) For the purposes of calculating the apportionment
payable to the city school district of the city of New York pursuant to
this subdivision for the two thousand two--two thousand three school
year and thereafter, current year approved expenditures for debt service
shall mean expenditures for debt service, including expenditures for any
lease-purchase or other annual payments under a lease-purchase agreement
or the equivalent that are eligible for aid under the opening paragraph
of this subdivision, that would be incurred during the current year
based on:
(i) an assumed amortization to be established by the commissioner
pursuant to this subparagraph for a period of thirty years of the total
approved costs relating to the construction, acquisition,
reconstruction, rehabilitation or improvement of any school building for
which a general construction contract was awarded on or after the first
day of July, two thousand two, and
(ii) an assumed amortization to be established by the commissioner
pursuant to this subparagraph of any assumed unpaid principal, or the
equivalent amount in the case of a lease-purchase agreement or its
equivalent, remaining as of the first day of July, two thousand two
pursuant to subparagraph one of this paragraph. Each such amortization
shall be based on an assumed rate of annual interest applied to such
amortization to be established by the commissioner pursuant to this
subparagraph and pursuant to clause (c) of subparagraph one of this
paragraph.
(b)(i) For approved costs relating to the construction, acquisition,
reconstruction, rehabilitation or improvement of any school building for
which a general construction contract was awarded on or after the first
day of July, two thousand two, the commissioner shall establish an
assumed amortization for a period of thirty years commencing on the date
of receipt by the commissioner of a certification by the district that
such general construction contract has been awarded by the school
construction authority of the city of New York, or by another body or
official designated by law, relating to the construction, acquisition,
reconstruction, rehabilitation or improvement of any school building
within the city school district of the city of New York. Such assumed
amortization shall provide for equal semiannual payments of principal
and interest based on an interest rate established by the commissioner
for such purpose for the school year during which such certification was
received. Such estimated average interest rate and such actual average
interest rate shall be expressed as a decimal to five places rounded to
the nearest eighth of one-one hundredth.
(ii) For any assumed unpaid principal or the equivalent amount in the
case of a lease-purchase agreement or its equivalent, remaining as of
the first day of July, two thousand two pursuant to subparagraph one of
this paragraph, the commissioner shall establish a new assumed
amortization commencing on such date for the unexpired term of the
original assumed amortization as of such date. Such assumed amortization
shall provide for equal semiannual payments of principal and interest
based on the interest rate applied to the original amortization as
established by the commissioner pursuant to subparagraph one of this
paragraph.
(3) Apportionments payable to a school district other than the city
school district of the city of New York for any debt service related to
projects approved by the commissioner on or after the later of the first
day of December, two thousand one or thirty days after the date upon
which this subparagraph shall have become a law or for any debt service
related to projects approved by the commissioner prior to such date
where a bond, capital note or bond anticipation note is first issued on
or after such date to fund such project or for lease-purchase or other
annual payments under a lease-purchase agreement or an equivalent
agreement entered into on or after such date that are eligible for aid
under the opening paragraph of this subdivision.
(a) For the purposes of calculating the apportionments payable to a
school district other than the city school district of the city of New
York pursuant to this subdivision for any debt service related to
projects approved by the commissioner on or after the later of the first
day of December, two thousand one or thirty days after the date upon
which this subparagraph shall have become a law, or for any debt service
related to projects approved by the commissioner prior to such date
where a bond, capital note or bond anticipation note is first issued on
or after such date to fund such project or for lease-purchase or other
annual payments under a lease-purchase agreement or an equivalent
agreement entered into on or after the later of the first day of
December, two thousand one or thirty days after the date upon which this
subparagraph shall have become a law that are eligible for aid under the
opening paragraph of this subdivision, current year approved
expenditures for debt service shall mean debt service or lease-purchase
or other annual payments under a lease-purchase agreement or an
equivalent agreement that would be incurred during the current year
based on an assumed amortization to be established by the commissioner
pursuant to this subparagraph of the approved project costs to be
financed related to any such approved project, for a period of:
(i) thirty years if the project is for the construction or acquisition
of a new school building,
(ii) twenty years if the project is for the construction of an
addition to a school building or for the reconstruction, rehabilitation
or improvement of a school building for which a period of probable
usefulness of twenty or more years is assigned pursuant to the local
finance law, and
(iii) fifteen years if the project is for the reconstruction,
rehabilitation or improvement of a school building for which a period of
probable usefulness of less than twenty years is assigned pursuant to
the local finance law.
Provided, however, that, notwithstanding any provision of law to the
contrary, for aid payable in the two thousand three--two thousand four
school year, for any project which is eligible for an apportionment
pursuant to this subparagraph, but which did not yet have a
certification that a general construction contract had been awarded for
such project by the district on file with the commissioner as of
February fifteenth, two thousand three, such debt service or
lease-purchase or other annual payments under a lease-purchase agreement
or an equivalent agreement that would be incurred during the current
year based on an assumed amortization to be established by the
commissioner pursuant to this subparagraph of the approved project costs
to be financed shall not be current year approved expenditures for debt
service, but shall be deemed to be debt service on new bonds and capital
notes aidable in July following the current year pursuant to clause (b)
of subparagraph one of paragraph f of this subdivision.
Provided, however, that, notwithstanding any provision of law to the
contrary, for aid payable in the two thousand four--two thousand five
school year, for any project which is eligible for an apportionment
pursuant to this subparagraph, but which did not yet have a
certification that a general construction contract had been awarded for
such project by or on behalf of the district on file with the
commissioner as of February fifteenth of the base year, such debt
service or lease-purchase or other annual payments under a
lease-purchase agreement or an equivalent agreement that would be
incurred during the current year based on an assumed amortization to be
established by the commissioner pursuant to this subparagraph of the
approved project costs to be financed shall not be current year approved
expenditures for debt service, but shall be deemed to be debt service on
new bonds and capital notes aidable in July following the current year
pursuant to clause (b) of subparagraph one of paragraph f of this
subdivision.
(b) Such assumed amortization for a project approved by the
commissioner on or after the later of the first day of December, two
thousand one or thirty days after the date upon which this subdivision
shall have become a law or for any debt service related to projects
approved by the commissioner prior to such date where a bond, capital
note or bond anticipation note is first issued on or after such date to
fund such projects, shall commence: (i) eighteen months after such
approval or (ii) on the date of receipt by the commissioner of a
certification by the district that a general construction contract has
been awarded for such project by the district, whichever is later, and
shall provide for equal semiannual payments of principal and interest
based on an interest rate established pursuant to subparagraph five of
this paragraph for such purpose for the school year during which such
certification is received. The first installment of obligations issued
by the school district in support of such projects may mature not later
than the dates established pursuant to sections 21.00 and 22.10 of the
local finance law.
(c) Definitions. For purposes of this paragraph and subdivision
thirty-nine of section sixteen hundred eighty of the public authorities
law:
(i) "the state share of a school construction project" shall mean the
product of: (A) the difference of the total approved cost of such
project less the approved cost of such project to be funded pursuant to
subdivision six-f of this section and subdivisions ten and twelve of
section thirty-six hundred forty-one of this article, multiplied by (B)
the building aid ratio applicable to such project pursuant to paragraph
c of this subdivision;
(ii) "the local share of a school construction project" shall mean the
difference of the total approved cost of such project, less the sum of:
(A) the approved cost of such project to be funded through subdivision
six-f of this section and subdivisions ten and twelve of section
thirty-six hundred forty-one of this article, and (B) the state share of
such school construction project;
(iii) "refinancing costs attributable to refinancing the state share
of a school construction project for purposes of retroactive
amortization" shall mean the sum of: (A) that portion of the approved
fees and other charges of refinancing, as defined in subparagraph one of
paragraph h of this subdivision, which are determined by the
commissioner to be reasonable in accordance with guidelines approved by
the director of the budget, and which are fixed charges that will not
vary by the amount of principal and additional principal to be refunded
and (B) the product of: (1) the total amount of such approved fees and
other charges of refinancing which are not fixed charges and which are
determined by the commissioner to be reasonable in accordance with
guidelines approved by the director of the budget, and (2) the
percentage of the principal of the refunding bond that is attributable
to refinancing of the state share of a school construction project
pursuant to subparagraph four of this paragraph, less (C) the amount of
such approved costs included in the principal of a refunding bond issued
by the school district or by the dormitory authority of the state of New
York to refund obligations of the school district subject to
subparagraph four of this paragraph which is necessary to provide for
the payment of the principal, redemption premiums, and interest due on
the refunded obligations of the school district to their stated
maturities or if such bonds are to be called, to the call date.
Provided, however, that such expenditures shall be incurred for
refunding bonds issued on or before July first, two thousand five and
that such expenditures result from the refunding of outstanding
obligations subject to an assumed amortization pursuant to this
subparagraph for facilities which were eligible for building aid, and
for which the annual aid apportionment payable in the two thousand
two--two thousand three and/or two thousand three--two thousand four
school years for approved expenditures for debt service are subsequently
reduced as a result of the application of assumed amortization to unpaid
principal outstanding as of July first, two thousand two, and further
provided that the gross dollar savings over the life of the obligation
shall be less than the approved fees and other charges of refinancing as
defined in subparagraph one of paragraph h of this subdivision, but only
to the extent that such amounts are not otherwise eligible for aid
pursuant to this subdivision;
(iv) "additional principal attributable to the refunding of bonds"
shall mean the amount of approved expenses included in the principal of
a refunding bond issued by the school district, or issued by the
dormitory authority of the state of New York to refund obligations of
the school district subject to subparagraph four of this paragraph,
which is necessary to provide for the payment of the principal,
redemption premiums, and interest due on the refunded obligations of the
school district to their stated maturities or if such bonds are to be
called, to the call date; and
(v) "additional principal attributable to the refunding of bonds to
refinance the state share of a school construction project for purposes
of retroactive amortization" shall mean the percentage of the additional
principal attributable to the refunding of bonds that is necessary to
refinance the state share of a school construction project pursuant to
subparagraph four of this paragraph.
(4) Apportionments payable for the two thousand two--two thousand
three school year and thereafter to a school district other than the
city school district of the city of New York or a school district
constituted pursuant to chapter five hundred sixty-six of the laws of
nineteen hundred sixty-seven as amended, for any debt service still
outstanding as of the first day of July, two thousand two that has not
been subject to an assumed amortization pursuant to subparagraph three
of this paragraph or for lease-purchase or other annual payments under a
lease-purchase agreement or an equivalent agreement having an unexpired
term on such date.
(a) For the purposes of calculating the apportionments payable to a
school district other than the city school district of the city of New
York pursuant to this subdivision for the two thousand two--two thousand
three school year and thereafter for any debt service still outstanding
as of the first day of July, two thousand two that has not been subject
to an assumed amortization pursuant to subparagraph three of this
paragraph or for lease-purchase or other annual payments under a
lease-purchase agreement or an equivalent agreement having an unexpired
term on such date, current year approved expenditures for debt service
shall mean debt service or lease-purchase or other annual payments under
a lease-purchase agreement or an equivalent agreement that would be
incurred during the current year based on an assumed amortization to be
established by the commissioner pursuant to this subparagraph of the sum
of
(i) any assumed or actual unpaid principal, or the equivalent amount
in the case of a lease-purchase agreement or its equivalent, remaining
as of the first day of July, two thousand two pursuant to an existing
amortization or any unpaid principal of a bond anticipation note as of
the first day of July, two thousand two, plus
(ii) the approved expenditures for the refunding of bonds that are
otherwise eligible for an apportionment pursuant to this subdivision, as
such expenditures are defined in subparagraph two of paragraph g of this
subdivision, provided that such refunding bonds are issued on or before
July first, two thousand five, less the sum of the refinancing costs
attributable to refinancing the state share of a school construction
project for purposes of retroactive amortization plus the additional
principal attributable to the refunding of bonds, as such terms are
defined in subclauses (iii) and (iv) of clause (c) of subparagraph three
of this paragraph, for a period equal to the greater of:
(i) the remaining maximum useful life of the project, or projects
associated with such obligation, as determined by the commissioner based
on data submitted by the school district, or
(ii) the remaining term of the bond, bond anticipation note, or
lease-purchase agreement.
(b) Such assumed amortization of any assumed or actual unpaid
principal, or the equivalent amount in the case of a lease-purchase
agreement or its equivalent, remaining as of the first day of July, two
thousand two for a project that has not been subject to an assumed
amortization pursuant to subparagraph three of this paragraph, shall
commence on the first day of July, two thousand two, and shall provide
for equal semiannual payments of principal and interest based on an
interest rate established by the commissioner for such purpose for the
two thousand two--two thousand three school year.
(c) Any school district eligible for an apportionment pursuant to this
subparagraph shall be eligible for an additional apportionment equal to
the sum of the refinancing costs attributable to refinancing the state
share of a school construction project for purposes of retroactive
amortization plus the additional principal attributable to the refunding
of bonds to refinance the state share of a school construction project
for purposes of retroactive amortization, as such terms are defined in
subclauses (iii) and (v) of clause (c) of subparagraph three of this
paragraph.
(d) Any school district that issues debt after July first, two
thousand two for the funding of the approved costs of projects eligible
for an apportionment pursuant to this subparagraph shall be eligible for
an additional apportionment calculated pursuant to the provisions of
this subdivision, where the assumed amortization shall be based upon
such approved costs and the remaining useful life shall be the remaining
period over which the apportionments calculated pursuant to clause (a)
of this subparagraph are to be paid.
(5) (a) Calculation of interest rates for the city school districts of
the cities of Buffalo, Rochester, Syracuse and Yonkers. (i) By the first
day of September of the current year, or by the date prescribed by the
commissioner for the two thousand one--two thousand two school year, the
chief fiscal officer of each of the cities of Buffalo, Rochester,
Syracuse and Yonkers shall provide to the commissioner an analysis, as
prescribed by the commissioner, of the actual average interest rate
applied to all capital debt incurred by such city related to school
construction purposes during the base year not including debt issued by
the dormitory authority for the benefit of any school district and of
the estimated average interest rate applied to all capital debt to be
incurred by such city related to school construction purposes during the
current year not including debt issued by the dormitory authority for
the benefit of any school district. Such interest rates shall be
expressed as a decimal to five places rounded to the nearest eighth of
one-one hundredth. Except as otherwise provided in item (ii) of this
clause, the interest rate of such city applicable to the base year for
the purposes of this subparagraph shall be the actual average interest
rate of such city in the base year, and the estimated average interest
rate shall be tentatively established as the interest rate of such city
applicable to the current year, except that all apportionments of aid
payable during the current year based on such estimated average interest
rate shall be recalculated in the following year and adjusted as
appropriate based on the appropriate actual average interest rate then
established pursuant to this clause provided, however, that in any year
in which such city has not incurred debt related to serial bonds or
sinking fund bonds as defined in sections 21.00 and 22.10, respectively,
of the local finance law, issued for school construction purposes, the
assumed interest rate calculated pursuant to clause (b) of this
subparagraph shall be tentatively established as the interest rate of
such city applicable to the projects approved by the commissioner in
such year, except that all apportionments of aid payable based on such
interest rate for each such project shall be recalculated following the
submission of a final cost report for such project and adjusted as
appropriate based on the appropriate actual average interest rate
applicable to the debt issued to fund such project, and provided further
that where such city has entered into an agreement with the dormitory
authority of the state of New York to finance debt related to school
construction that is subject to subparagraph four of this paragraph or
has entered into an agreement with the dormitory authority of the state
of New York for the purpose of financing a school construction project
that is subject to subparagraph three of this paragraph, the interest
rate applicable to the obligations issued by the dormitory authority of
the state of New York for such purpose shall be the interest rate
established for such city applicable to such debt.
(ii) Notwithstanding the provisions of item (i) of this clause, where
such city has entered into an agreement with the state of New York
municipal bond bank agency pursuant to subdivision one of section
twenty-four hundred thirty-five-a of the public authorities law and
subdivision (b) of section sixteen of chapter six hundred five of the
laws of two thousand, or an agreement with the Erie county industrial
development agency for projects described in subdivision (b) of section
sixteen of such chapter six hundred five, to finance debt related to
school renovation, rehabilitation or reconstruction that is subject to
subparagraph three of this paragraph, the lesser of: (A) the interest
rate actually applicable to the obligations issued by the state of New
York municipal bond bank agency or by the Erie county industrial
development agency for such purpose; or (B) the interest rate that would
have been applicable to bonds issued by the state of New York municipal
bond bank agency if the project had been financed through such agency,
as certified to the commissioner by the executive director of the state
of New York municipal bond bank agency, shall be the interest rate
established for such city applicable to such debt.
(b) Calculation of interest rates for school districts other than the
city school districts of the cities of Buffalo, Rochester, Syracuse,
Yonkers and New York. By the first day of September of the current year,
or by the date prescribed by the commissioner for the two thousand
one--two thousand two school year, each school district, other than the
city school districts of the cities of Buffalo, Rochester, Syracuse,
Yonkers and New York, shall provide to the commissioner in a format
prescribed by the commissioner such information as the commissioner
shall require for all capital debt incurred by such school district
during the preceding school year relating to the construction,
acquisition, reconstruction, rehabilitation or improvement of any school
building, not including debt issued by the dormitory authority. Based on
such reported amortizations and a methodology prescribed by the
commissioner in regulations, the commissioner shall compute an assumed
interest rate that shall equal the average of the interest rates applied
to all such debt issued during the preceding school year. The assumed
interest rate shall be tentatively established as the interest rate of
each such school district applicable to the current year for the
purposes of this subparagraph and shall be expressed as a decimal to
five places rounded to the nearest eighth of one-one hundredth except
that all apportionments of aid payable during the current year based on
such assumed interest rate shall be recalculated in the following year
and adjusted as appropriate based on the appropriate assumed interest
rate then established pursuant to this clause, provided, however, that
where such school district has entered into an agreement with the
dormitory authority of the state of New York to refinance debt issued by
such school district that is subject to subparagraph four of this
paragraph or has entered into an agreement with the dormitory authority
of the state of New York for the purpose of financing a school
construction project that is subject to subparagraph three of this
paragraph, the interest rate applicable to the obligations issued by the
dormitory authority of the state of New York for such purpose shall be
the interest rate established for each such school district applicable
to such debt.
(c) Periodically, but at least at the end of each ten year segment of
an assumed amortization established pursuant to subparagraphs two, three
and four of this paragraph, the commissioner shall revise the remaining
scheduled semiannual payments of the outstanding principal and interest
of such assumed amortization, other than the outstanding principal and
interest of refunding bonds where the district can demonstrate to the
commissioner that it is precluded by state or federal law, rule or
regulation from refinancing such outstanding principal and interest,
based on the interest rates applicable for the current year if the
difference of the interest rate upon which the existing assumed
amortization is based minus such interest rate applicable for the
current year is equal to or greater than one quarter of one-one
hundredth.
(6) Notwithstanding any other provisions of this paragraph, where a
school district can demonstrate to the satisfaction of the commissioner
extenuating circumstances that a waiver is warranted for an existing
amortization or an existing lease-purchase agreement or equivalent
agreement as of the first day of July, two thousand two, the
commissioner may consult with the dormitory authority of the state of
New York and may grant a waiver consistent with guidelines developed in
consultation with the director of the division of the budget and shared
with the chairs of the senate finance committee and the assembly ways
and means committee, to make adjustments, including, but not limited to:
(i) the period of assumed amortization to equal the period of the
existing amortization, (ii) the interest rate applied to such
amortization to equal the actual average interest rate applied to the
existing amortization, and/or (iii) the annual assumed payments of debt
service to equal the aidable payments of debt service under the existing
amortization and provided further that where a school district can
demonstrate to the commissioner that it is precluded by state or federal
law, rule or regulation from refinancing such outstanding principal and
interest, clause (iii) of this subparagraph shall apply.
(7) For aid payable in the two thousand two--two thousand three school
year, school districts shall provide, on or before the fifteenth day of
January, two thousand two, such data as the commissioner shall deem
necessary to estimate the apportionment payable under assumed
amortization pursuant to subparagraph four of this paragraph, in such
form as the commissioner shall determine. Such data shall be provided
for each project for which the district will make a debt service payment
that is aidable pursuant to this subdivision in the current school year
and for each project for which such district expects to make a debt
service payment that will be aidable pursuant to this subdivision in the
following school year.
f. (1) As used in this subdivision and in section thirty-six hundred
nine-a of this article the following terms shall be defined as follows:
(a) "Debt service on bond anticipation notes aidable in July following
the current year" shall mean current year debt service expenditures for
bond anticipation notes issued in the current school year.
(b) "Debt service on new bonds and capital notes aidable in July
following the current year" shall mean current year debt service
expenditures for bonds and/or capital notes issued in the current school
year.
(2) Notwithstanding any inconsistent provisions of this subdivision,
the amount of current year approved expenditure for debt service for
bond anticipation notes and for bonds and capital notes issued during
the current year for school building purposes pursuant to paragraph b of
this subdivision shall not be greater than the estimate of such
expenditures as reported to the commissioner by the school district on
or before November fifteenth of the current year. For aid payable in the
nineteen hundred ninety-six--ninety-seven school year and thereafter,
any excess of actual expenditures for such debt service for bond
anticipation notes and such bonds or capital notes incurred in the base
year, within the limitations imposed pursuant to paragraph i of this
subdivision, over such estimate of base year expenditures as reported to
the commissioner by the school district on or before November fifteenth
of the base year shall be considered approved expenditures for lease or
other annual payments under the provisions of section four hundred
three-b, subdivision eight of section twenty-five hundred three, or
subdivision six of section twenty-five hundred fifty-four of this
chapter, other than payments under a lease-purchase agreement or an
equivalent agreement, for school building purposes.
(3) (a) For the purposes of this subparagraph the following terms
shall be defined as follows:
(i) "First issue date" shall mean the date on which the school
district issued an initial obligation in the form of a bond anticipation
note, a bond or a capital note for the purpose of financing one or more
approved building projects for which a combined annual claim of aidable
debt service as defined in regulations of the commissioner, is submitted
to the commissioner.
(ii) "First contract date" shall mean the date by which: (A) the
school district certifies to the commissioner that construction
activities related to the erection, construction, reconstruction or
alteration of a school building have commenced, or that the purchase of
a school building has been made under one or more of the approved
building projects included in a combined annual claim of aidable debt
service; and (B) that one or more payments for such construction
activities or purchase, including incidental costs have been made by the
school district in a total amount equal to or greater than ten percent
of the principal value upon which the combined annual claim of aidable
debt service is based. Such certification shall be in a form and of a
content as prescribed by the commissioner.
(iii) "Principal value" shall mean the sum of the original principal
amounts of all obligations issued by the school district for the purpose
of financing one or more approved building projects for which a combined
annual claim of aidable debt service is submitted to the commissioner,
less any such principal that has been refinanced.
(iv) "Approved project cost" shall mean the sum of approved project
costs of all approved building projects for which a combined annual
claim of aidable debt service is submitted to the commissioner.
(v) "Final redemption date" shall mean the date by which the school
district will have repaid all principal borrowed for the purpose of
financing one or more approved building projects for which a combined
annual claim of aidable debt service is submitted to the commissione