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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 commissioner.
(b) For aids payable in the two thousand--two thousand one school
year, and thereafter, notwithstanding any inconsistent provisions of
this subdivision, except for any project to which paragraph e of this
subdivision applies, the amount of approved expenditures incurred during
the current school year for debt service for bond anticipation notes,
bonds and capital notes having a related first issue date on or after
July first, two thousand shall equal the product of the actual
expenditures incurred during the current school year for debt service
for each such bond anticipation note, bond or capital note, less any
accrued interest or premiums received by the district, and the
applicable bond percent.
(c) The applicable bond percent shall equal: (i) the quotient of the
approved project cost for contracts awarded on or before June thirtieth
of the current school year divided by the principal value, or (ii) if
the first issue date is more than ninety days prior to the first
contract date, the product of: (A) one minus the quotient of the number
of days elapsed between the first issue date and the first contract date
divided by the number of days elapsed between the first issue date and
the final redemption date and (B) the quotient of the approved project
cost for contracts awarded on or before June thirtieth of the current
school year divided by the principal value, provided that, if upon
review of documentation submitted by a school district the commissioner
determines that the debt was issued by a city having a population of one
hundred twenty-five thousand or more, as part of a mixed borrowing
including both school purposes and other municipal purposes or, that a
school district, due to circumstances beyond its control, issued bond
anticipation notes, bonds or capital notes more than ninety days prior
to the first contract date, the commissioner may compute the applicable
bond percent pursuant to item (i) of this clause. The applicable bond
percent shall be expressed as a decimal to five places without rounding.
g. Eligibility criteria for aid for refunding of bonds. (1) To be
eligible for any apportionment of aid pursuant to this subdivision for
approved expenditures for the refunding of bonds to refinance school
construction, reconstruction or purchase of existing structures or for
expenditures incidental to such refunding of bonds the following
requirements shall be met:
(i) the refunding shall be in accordance with section 90.10 of the
local finance law;
(ii) the bonds to be refunded shall have been issued exclusively to
finance school construction, reconstruction or purchase of existing
structures;
(iii) the issuance of refunding bonds shall result in a net present
value savings to both the school district and the state, provided,
however, that the gross dollar savings over the life of the bond shall
exceed the approved fees and other charges of refinancing as defined in
subparagraph one of paragraph h of this subdivision, except in the case
of the refunding of bonds with unpaid principal outstanding as of the
first day of July, two thousand two subject to assumed amortization
pursuant to subparagraph four of paragraph e of this subdivision, for
facilities eligible for building aid, and for which the annual aid
apportionment payable in the two thousand two--two thousand three and
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 such unpaid principal; and
(iv) for any refunding of bonds for which a refunding bond resolution
is approved after April first, nineteen hundred ninety-four, the board
of education or trustees shall certify that the intention of the school
district to accept proposals for the refunding of bonds has been
announced in at least one regular public meeting of such board and that
all such proposals received have been discussed in a second public
meeting of the board held no sooner than fourteen days after such
announcement.
(2) For the purposes of subparagraph three of this paragraph, approved
expenditures for the refunding of bonds shall mean any amount included
in the principal of the refunding bond issue of a school district, or of
the dormitory authority of the state of New York to refund obligations
of a school district for purposes of subparagraph four of paragraph e of
this subdivision, that represents the unmatured interest on the bonds to
be refunded to and including either the date or dates such bonds were to
mature or the date or dates set for redemption prior to their
maturities, plus the redemption premiums, if any, payable on the bonds
to be refunded on the redemption date or dates, plus the approved fees
and other charges of refinancing as defined in subparagraph one of
paragraph h of this subdivision.
(3) Approved expenditures for the refunding of bonds as defined in
subparagraph two of this paragraph shall be excluded from the
calculation of any ratio of allowable expense to principal that may be
used to determine approved debt service expense.
h. Additional apportionment of building aid for approved fees and
other charges and expenses related to the issuance of refinancing bonds.
(1) For the purposes of this subdivision approved fees and other charges
of refinancing shall include the costs and expenses incidental to the
issuance of refunding bonds by a school district, or by the dormitory
authority of the state of New York to refund obligations of a school
district for purposes of subparagraph four of paragraph e of this
subdivision, which are eligible for an apportionment pursuant to
paragraph g of this subdivision, the costs of the development of the
refunding financial plan and of executing and performing the terms and
conditions of the escrow contract and all fees and charges of the escrow
holders.
(2) Notwithstanding any inconsistent provisions of this subdivision,
school districts shall also be eligible for an apportionment pursuant to
this subdivision in an amount equal to the product of the aid ratio used
for building aid in the current year as defined in paragraph c of this
subdivision and the base year approved fees and other charges of
refinancing as defined in subparagraph one of this paragraph, but only
to the extent such costs and expenses are not paid from the proceeds of
the refunding bonds and are not otherwise eligible for aid pursuant to
this subdivision, provided however, that in the case of the refunding of
bonds subject to an assumed amortization pursuant to subparagraph four
of paragraph e of this subdivision for facilities which were eligible
for building aid, provided that such refunding bonds are issued on or
before the first day of July, two thousand five 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 bond shall be less than the approved
fees and other charges of refinancing as defined in subparagraph one of
this paragraph, such apportionment shall be equal to such base year
approved fees and other charges of refinancing, but only to the extent
such costs and expenses are not paid from the proceeds of the refunding
bonds and are not otherwise eligible for aid pursuant to this
subdivision.
i. Approved expenditures for debt service. (1) Bond anticipation
notes. Except as otherwise provided in subparagraph four of this
paragraph, for purposes of the apportionment payable pursuant to this
subdivision in the nineteen hundred ninety-six--ninety-seven school year
and thereafter to a school district other than to the city school
district of the city of New York, except for any project to which
paragraph e of this subdivision applies, approved expenditures for debt
service on bond anticipation notes relating to the construction,
acquisition, reconstruction, rehabilitation or improvement of any school
building, including but not limited to the balance of principal
outstanding as of July first, nineteen hundred ninety-six which was
funded during the nineteen hundred ninety-five--ninety-six school year
from proceeds of the sale of bond anticipation notes by a school
district, shall mean actual approved expenditures for principal and
interest related to the financing of a school construction project
through bond anticipation notes; except that:
(i) such expenditures shall not include expenditures for principal on
such notes during the first twenty-three months following the original
issuance of such notes; and
(ii) such expenditures shall not include expenditures for principal or
interest on bond anticipation notes issued or reissued after the
issuance of a certificate of substantial completion for such project, or
expenditures for principal made during the school year in excess of the
minimum principal payment required under the local finance law.
(2) Bonds and capital notes. (i) For purposes of the apportionment
payable pursuant to this subdivision in the nineteen hundred
ninety-six--ninety-seven school year and thereafter to a school district
other than to the city school district of the city of New York, approved
expenditures for debt service on bonds, capital notes and any other
long-term local obligations relating to the construction, acquisition,
reconstruction, rehabilitation or improvement of any school building,
shall mean actual approved expenditures for principal and interest
related to the financing of a school construction project through such
local obligations except as provided pursuant to clause (ii) of this
subparagraph or subparagraph four of this paragraph or paragraph e of
this subdivision; provided that, to be eligible for aid on debt service
pursuant to this subdivision, such bonds, capital notes or other local
obligations issued on or after August first, nineteen hundred
ninety-six, or, in the case of a small city school district, on or after
November fifteenth, nineteen hundred ninety-six, shall provide for
substantially level debt service or principal as defined in paragraph d
of section 21.00 of the local finance law; and
(A) be amortized for a period of not less than fifteen years,
including any period of amortization on related bond anticipation notes,
in the case of local obligations issued to finance new construction and
the purchase of existing structures; or
(B) be amortized for a period of not less than ten years, including
any period of amortization on related bond anticipation notes, in the
case of local obligations issued to finance the reconstruction,
rehabilitation or improvement of existing school buildings.
(ii) Notwithstanding any inconsistent provisions of this clause, any
actual principal or interest expenditures related to the issuance of a
local obligation to finance new construction for a term of less than
fifteen years or reconstruction for a term of less than ten years, as
specified in clause (i) of this subparagraph, shall not be used in the
calculation of the apportionment payable pursuant to this subdivision,
provided, however, that aidable approved expenditures for debt service
shall be calculated pursuant to the provisions of this clause, as
follows:
(A) for new construction and the purchase of existing structures,
current year approved expenditures for debt service shall mean
expenditures for principal and interest expense that would be incurred
during the current year based on an assumed amortization for a period of
fifteen years, or the actual term of the obligation issued by the school
district, whichever is greater, of any outstanding principal and/or
principal payments not previously aided at the time of issue of the
obligation that represents costs approved by the commissioner including
any period of amortization on related bond anticipation notes. Such
assumed amortization shall commence with the date of the award of a
general contract by the school district for such new construction or
purchase, the date the district was placed on assumed amortization by
the commissioner, or the date upon which the district selected an
assumed amortization pursuant to subparagraph four of this paragraph,
whichever shall last occur, and shall be based on an assumed rate of
annual interest applied to such amortization, as determined by the
commissioner pursuant to subparagraph three of this paragraph for the
month in which a general contract is awarded for such project; and
(B) for reconstruction, rehabilitation or improvement of existing
school buildings, current year approved expenditures for debt service
shall mean expenditures for principal and interest expense that would be
incurred during the current year based on an assumed amortization for a
period of ten years, or the actual term of the obligation issued by the
school district, whichever is greater, of any outstanding principal
and/or principal payments not previously aided that represents costs
approved by the commissioner including any period of amortization on
related bond anticipation notes. Such assumed amortization shall
commence with the date of the award of a general contract by the school
district for such new construction or purchase, the date the district
was placed on actual amortization by the commissioner, or the date upon
which the district selected an assumed amortization pursuant to
subparagraph four of this paragraph, whichever shall last occur, and
shall be based on an assumed rate of annual interest applied to such
amortization, as determined by the commissioner pursuant to subparagraph
three of this paragraph for the month in which a general contract is
awarded for such project.
(3) By the fifteenth day of each month, beginning on August fifteenth,
nineteen hundred ninety-six, the commissioner shall determine the
prevailing interest rate for the preceding month based on a nationally
recognized and accepted index of municipal bond yields reported for such
preceding month, in accordance with a methodology prescribed by the
commissioner and approved by the director of the budget.
(4) Notwithstanding any other provision of this paragraph to the
contrary, in the case of projects eligible for an apportionment pursuant
to subparagraph one of this paragraph during the nineteen hundred
ninety-six--ninety-seven school year, and projects of small city school
districts whether or not eligible for such an apportionment during such
school year, for the purpose of the apportionment payable pursuant to
this subdivision or subdivision six-b of this section during the
nineteen hundred ninety-six--ninety-seven school year and thereafter to
a school district other than to the city school district of the city of
New York, for the construction, acquisition, reconstruction,
rehabilitation or improvement of a school building, such school district
shall have the option of selecting to receive aid based on actual
expenditures pursuant to subparagraph one or clause (i) of subparagraph
two of this paragraph; or based on an assumed amortization pursuant to
clause (ii) of subparagraph two of such paragraph. Such selection shall
be made on or before the time of submission of a project to the
commissioner for final approval or November fifteenth, nineteen hundred
ninety-seven, whichever shall occur later. Provided, however, any such
school district selecting to receive aid based on actual expenditures
pursuant to subparagraph one or clause (i) of subparagraph two of this
paragraph, but not meeting all requirements of such provisions, shall
have their aid for debt service computed under an assumed amortization
pursuant to clause (ii) of subparagraph two of this paragraph, and
provided further that any adjustments resulting from a required
computation under clause (ii) of subparagraph two of this paragraph
shall apply to the next payment due for such project.
(5) Notwithstanding any inconsistent provisions of this paragraph, for
the purpose of calculating an apportionment pursuant to this
subdivision:
(i) current approved expenditures for debt service for energy
performance contracts authorized pursuant to section 9-103 of the energy
law shall mean approved debt service incurred by a school district under
such contract during the current school year related to the financing of
such construction, acquisition, reconstruction, rehabilitation or
improvement of any school building, provided that as a condition of
eligibility for aid:
A. The amortization period shall not exceed the term of the energy
performance contract.
B. Any state building aid attributable to such project shall be
excluded in determining the cost savings under the energy performance
contract.
C. The energy performance contractor shall guarantee recovery of
contract costs from energy savings realized by the school district
during the term of the energy performance contract, which shall not
exceed eighteen years.
(ii) notwithstanding any inconsistent provisions of this paragraph,
for aid payable in the two thousand two--two thousand three school year
and thereafter, approved expenditures for debt service for energy
performance contracts shall be based on assumed amortization where
required by paragraph e of this subdivision.
(iii) current year approved expenditures for debt service for the
purchase of computer equipment shall mean expenditures for principal and
interest expense incurred by a school district during the current year
for financing of the purchase of computer equipment eligible for aid
pursuant to paragraph b of this subdivision, provided that the payment
of aid shall be based on an assumed period of amortization which shall
equal the period of probable usefulness applicable to the acquisition of
such equipment under section 11.00 of the local finance law and on an
assumed rate of annual interest determined pursuant to subparagraph
three of this paragraph for the month in which the purchase contract was
executed; and
(iv) current year approved expenditures for debt service for any other
expenditures that are aidable pursuant to this subdivision and involve
an object or purpose for which the period of probable usefulness under
section 11.00 of the local finance law is less than ten years shall mean
expenditures for principal and interest expense incurred by a school
district during the current year for the contracting of indebtedness for
such object or purpose, provided that the payment of aid shall be based
on an assumed period of amortization equal to such period of probable
usefulness and on an assumed rate of annual interest determined pursuant
to subparagraph three of this paragraph for the month in which the
financing agreement was executed.
j. Assumed amortization for capital outlays. For aid payable in the
two thousand three--two thousand four school year and thereafter, the
apportionment to a school district for approved expenditures for capital
outlays from its general fund, capital fund or reserved funds pursuant
to this subdivision shall be based upon an assumed amortization
established pursuant to the applicable provisions of subparagraph two,
three, or four of paragraph e of this subdivision, as modified by this
paragraph, whether or not the school district issues debt for such
expenditures. Notwithstanding any provisions of subparagraph two, three,
or four of paragraph e of this subdivision to the contrary:
(1) For approved expenditures for capital outlay incurred by the city
school district of the city of New York on or after July first, two
thousand two that are related to projects for which a general
construction contract was first awarded by the school construction
authority of the city of New York, or by another body or official
designated by law, prior to the first day of July, two thousand two,
such amortization shall commence (i) eighteen months after January
first, two thousand three; 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, whichever is
later; and the quotient, calculated to the nearest whole dollar without
rounding, of (A) the positive remainder of the approved expenditures of
such project to be funded through capital outlay less the total amount
of approved expenditures for capital outlay incurred before July first,
two thousand two, divided by (B) the positive remainder, computed to the
nearest year without rounding, of the new term of the assumed
amortization established pursuant to item (ii) of clause (b) of
subparagraph two of paragraph e of this subdivision as of July first,
two thousand three, less twelve months shall be deemed to be the current
year approved expenditures for debt service for the purposes of such
paragraph.
(2) Approved expenditures for capital outlay incurred by the city
school district of the city of New York that are related to projects for
which a general construction contract was first awarded on or after the
first day of July, two thousand two, shall be deemed approved
expenditures for debt service included in the assumed amortization for
the project pursuant to subparagraph two of paragraph e of this
subdivision.
(3) For approved expenditures for capital outlay incurred by a school
district other than the city school district of the city of New York on
or after July first, two thousand two that are related to projects
approved by the commissioner prior to the first day of July, two
thousand two, such amortization shall commence: (i) eighteen months
after January first, two thousand three; or (ii) on the date of receipt
by the commissioner of a certification by the district that a general
construction contract has been first awarded for such project by the
district, whichever is later, and the quotient, calculated to the
nearest whole dollar without rounding, of (A) the positive remainder of
the approved cost of such project to be funded through capital outlay
less the total amount of approved expenditures for capital outlay
incurred before July first, two thousand two, divided by (B) the
positive remainder, computed to the nearest year without rounding, of
the remaining maximum useful life of the project as determined by the
commissioner pursuant to item (i) of clause (a) of subparagraph four of
paragraph e of this subdivision as of July first, two thousand one, less
twelve months, shall be deemed to be the current year approved
expenditures for debt service for the purposes of such paragraph.
(4) Approved expenditures for capital outlay incurred by a school
district other than the city school district of the city of New York
that are related to projects approved by the commissioner on or after
the first day of July, two thousand two, shall be deemed approved
expenditures for debt service included in an assumed amortization for
the project pursuant to subparagraph three of paragraph e of this
subdivision.

6-a. Additional apportionments of building aid for school districts
educating pupils residing on Indian reservations. In addition to the
apportionments made to a school district under the provisions of
subdivision six of this section, the commissioner is hereby authorized
to apportion to any school district, which the commissioner deems to be
providing educational services for a significant number of pupils
residing on an Indian reservation, an amount calculated by the
commissioner to represent the actual per pupil cost within the cost
allowance assigned to Indian pupils as the contribution of the state on
behalf of pupils residing on an Indian reservation. Such apportionment
shall be payable after approval by the commissioner of final plans for a
construction project approved by the commissioner for such purpose. Any
such apportionment shall be made upon such terms and conditions as the
commissioner shall approve.

6-b. Building aid for joint facilities. a. Two or more school
districts eligible for operating aid pursuant to this section, other
than a city school district in a city with one hundred twenty-five
thousand inhabitants or more, that enter into an agreement in accordance
with section one hundred nineteen-o of the general municipal law and
this subdivision, may receive building aid pursuant to this subdivision
for approved expenditures for the construction or reconstruction of one
or more single site joint facilities. To be eligible for such aid, the
general contracts for the project shall have been awarded on or after
July first, nineteen hundred ninety-three, and the project and joint
agreement shall have been approved by the commissioner. For
participating school districts in which the school budget is subject to
voter approval, the joint agreement shall be subject to voter approval.
b. To be eligible for building aid for the joint facility, the joint
agreement shall designate the board of education of the school district
in which such single site joint facility will be located as the lead
district, provided that where such facility will occupy adjoining sites
in more than one participating district any district in which a part of
the facility is situated may be designated as the lead district.
Notwithstanding any other provision of law, the lead district shall be
authorized to contract indebtedness for the purpose of the joint project
pursuant to the local finance law as if the entire project was conducted
solely by the lead district. The joint agreement shall designate the
district or districts that will operate, maintain and/or manage the
joint facility. The lead district shall serve as fiscal agent for all
participating districts for the purpose of claiming and receiving
building aid pursuant to subdivision six of this section. The joint
agreement shall include a lease agreement between the lead district and
all other participating districts whereby all parties agree to lease the
facility for a term not less than the period within which all bonds or
notes issued to finance the project will mature. Participating districts
shall not be eligible for an apportionment pursuant to any provision of
this chapter for any lease expense incurred for the joint facility and
such expense shall not be included in the approved operating expense of
any such district, provided, however, that nothing shall prohibit the
inclusion of a district's share of the net administrative, operation and
maintenance costs of the joint project in the district's approved
operating expense. The joint agreement shall provide for a credit of the
state aid received by the lead district for the joint project against
the expenses of such project and shall provide a method of allocating
the net cost of the joint facility to the participating districts,
distributing (i) the gross cost based on each district's share of the
use of the facility, and (ii) the state aid based on each district's aid
ratio and use-share of the aidable expense.
c. Upon approval of the joint agreement, the lead district shall be
eligible for an apportionment pursuant to subdivision six of this
section as if the joint project was conducted solely by such lead
district; provided, however, that the building aid ratio used in
computing such aid shall be the sum of the product for each of the
participating districts of the district's building aid ratio selected
pursuant to paragraph c of subdivision six of this section for aid
payable in the current year multiplied by the district's share of the
use of the facility.
d. Where the lead district reorganizes with some or all other
districts participating in the joint agreement subsequent to approval of
the joint agreement, such reorganized district shall be eligible for
reorganization incentive aid pursuant to subparagraph one of paragraph c
as modified by paragraph i, both of subdivision fourteen of this section
for expenditures for any debt service for indebtedness outstanding after
the effective date of such reorganization that were incurred for the
financing of construction of the joint facility so long as such facility
continues to be used by such reorganized district, as if the joint
facility had been constructed by the reorganized district subsequent to
reorganization.
e. Notwithstanding the provisions of section thirty-six hundred nine-a
of this article, aid for joint projects shall be paid in accordance with
a schedule established by the commissioner and approved by the director
of the budget.

6-c. Building aid for metal detectors, and safety devices for
electrically operated partitions, room dividers and doors. In addition
to the apportionments payable to a school district pursuant to
subdivision six of this section, the commissioner is hereby authorized
to apportion to any school district additional building aid pursuant to
this subdivision for its approved expenditures in the base year for the
purchase of stationary metal detectors, security cameras, safety devices
for electrically operated partitions and room dividers required pursuant
to section four hundred nine-f of this chapter, or other security
devices approved by the commissioner that increase the safety of
students and school personnel, provided, however, that funds apportioned
to school districts pursuant to this section shall not supplant funds
for existing district expenditures or for existing contractual
obligations of the district for stationary metal detectors, security
cameras, partition and room divider safety devices, or security devices.
Portable or hand held metal detectors shall not be eligible for aid
pursuant to this subdivision. Such additional aid shall equal the
product of the building aid ratio computed for use in the current year
pursuant to paragraph c of subdivision six of this section and the
actual approved expenditures incurred in the base year pursuant to this
subdivision, provided that the limitations on cost allowances prescribed
by paragraph a of subdivision six of this section shall not apply. The
commissioner shall annually prescribe a special cost allowance for metal
detectors, and security cameras, and the approved expenditures shall not
exceed such cost allowance. The commissioner shall annually prescribe a
special cost allowance for partition and room divider safety devices,
and the approved expenditures shall not exceed such cost allowance.

6-d. Minor maintenance and repair. a. (1) Moneys appropriated to the
department for the extraordinary school capital needs program for New
York city shall be used in accordance with the provisions of this
subdivision. In addition to apportionments otherwise provided by this
section, for aid payable in the school years nineteen hundred
ninety-eight--ninety-nine through two thousand four--two thousand five,
the commissioner may annually approve an application from the board of
education of the city school district of the city of New York for funds
in an amount not to exceed thirty-three million three hundred thirty
thousand dollars, and for aid payable in the two thousand five--two
thousand six school year and thereafter, the commissioner may approve an
application from the board of education of the city school district of
the city of New York for funds in an amount not to exceed fifty-three
million three hundred twenty-eight thousand dollars, to repair public
instructional school facilities based on priorities set by each
community school district superintendent and, in the case of high
schools and special education buildings, the chancellor, in New York
city.
(2) Allowable expenses for repairs shall be defined by the
commissioner and shall include expenses for minor repair and improvement
activities performed to remedy existing minor maintenance and repair
deficiencies of instructional school facilities or to mitigate the need
for extensive capital renovation and rehabilitation for such buildings
in the future. Allowable expenses pursuant to this subdivision shall
not include any expenses eligible for aid under provisions of
subdivision six of this section. Expenses reimbursed pursuant to this
subdivision shall be excluded from the approved operating expenses of
the district and shall be recorded in the district's special aid fund.
(3) All funding provided under this subdivision shall be used to
increase apportionments provided in the nineteen hundred
ninety-eight--ninety-nine city fiscal year and thereafter at the
community school district, high school and special education building
level to address maintenance and repair projects. No funding provided
pursuant to this subdivision shall be used for administrative costs of
the central board of education. In order to be eligible for such aid,
the city school district shall submit to the commissioner a report by
October first of each school year,, signed by the chancellor outlining
how the funds would be spent, including, but not limited to:
(i) the establishment and use of school-based survey teams, consisting
of principals, custodians, teachers selected by the authorized
collective bargaining unit, the school district superintendent, parents
and other interested parties to assess the conditions of schools
semi-annually and to designate priority minor maintenance projects in
each school building; where appropriate, in designating such priorities,
the team shall consider other repairs that have been identified for
action by the board of education or by the school construction
authority;
(ii) the expected time frame for achieving a state of good repair in
each school building; and
(iii) the local funds allocated to individual community school
districts, high schools and special education buildings for the current
city fiscal year as well as the funds expended by them in the base city
fiscal year.
(4) The school-based survey team shall annually submit a list of minor
maintenance priorities to the district superintendent, or the
chancellor, as the case may be, for review and approval. The district
superintendent or the chancellor shall select the minor maintenance and
repair projects which will best enhance the safety and quality of life
for teachers and students within the facilities.
(5) The chancellor shall annually provide an allocation to every
community school district, high school district and group of special
education buildings. Allocations shall be based on the total square
footage, adjusted by a rating system that measures minor maintenance and
repair needs and current facility conditions, for all schools in each
community school district and for the high school districts and citywide
special education programs.
(6) It is further provided that the city school district of the city
of New York must expend at least as much in local funds on maintenance
and repair projects in each of the nineteen hundred
ninety-eight--ninety-nine through the two thousand one-two thousand two
city fiscal years and thereafter as it did in the nineteen hundred
ninety-seven--ninety-eight city fiscal year. If the city school district
spends less in local funds than in the nineteen hundred
ninety-seven--ninety-eight city fiscal year for repair programs, as
defined in regulation by the commissioner, then the city school district
shall have its apportionment under this subdivision reduced in an
aggregate amount equal to the total of such deficiencies.
(7) Notwithstanding any other provision of law to the contrary, the
commissioner is authorized to pay up to seventy percent of the moneys
appropriated for such maintenance and repair expenses, to the extent
moneys have been expended by February first of each school year, and
reported in a manner satisfactory to the commissioner by March first,
prior to April first of such school year, with the remainder payable on
or after such date.
b. (1) Moneys appropriated to the department for the extraordinary
school capital needs program for school districts outside of New York
city shall be used in accordance with the provisions of this
subdivision. In addition to apportionments otherwise provided by this
section, for aid payable in the school years nineteen hundred
ninety-eight--ninety-nine through two thousand four--two thousand five,
the commissioner may annually approve an application from each school
district in the state, except for the city school district of the city
of New York, for an apportionment of aid for repair of public
instructional school facilities under this subdivision, the sum of which
shall not exceed sixteen million six hundred seventy thousand dollars
for any school year, and for aid payable in the school year two thousand
five--two thousand six and thereafter, the commissioner may approve an
application from each school district in the state, except for the city
school district of the city of New York, for an apportionment of aid for
repair of public instructional school facilities under this subdivision,
the sum of which shall not exceed twenty-six million six hundred
seventy-two thousand dollars. Notwithstanding any provision of this
subdivision to the contrary, the commissioner shall develop an expedited
application process for school districts with apportionments of aid for
repair of less than twenty-five thousand dollars.
(2) (i) Computation of formula for repair. The apportionment to any
school district shall be the greater of (A) an amount computed by (1)
multiplying the district's enrollment by the district's age of facility
index established pursuant to this subdivision, (2) multiplying the
result by the district's long-term growth index established pursuant to
this subdivision, (3) dividing such result for each school district by
the sum of such results for all school districts, excluding the city
school district of the city of New York, and (4) multiplying such result
by the amount appropriated for the purposes of this subdivision for
school districts outside of the city of New York available after payment
of any minimum apportionment, or (B) two thousand dollars.
(ii) Computation of age facility index. This index shall be computed
by dividing an average age of buildings owned by the school district and
used for instruction by the statewide average age of all such buildings,
except for those in the city school district of the city of New York.
The average age shall be computed by multiplying the age of each
facility in the nineteen hundred ninety-four calendar year by the square
footage of such facility and adding the results for each district based
upon data on file with the commissioner on April first, nineteen hundred
ninety-three. This sum shall be divided by the total square footage of
all buildings in the district to compute the average age.
(iii) Computation of the long-term growth index. The index shall be
computed by dividing the district's nineteen hundred
ninety-three--ninety-four public school enrollment by the district's
nineteen hundred eighty-nine--ninety public school enrollment, provided,
however, that the index shall not be less than one.
(iv) Enrollment, for the purposes of this subdivision, shall mean the
count of children on a regular enrollment register of a public school in
a district.
(3) Allowable expenses for repairs shall be defined by the
commissioner and shall include expenses for minor repair and improvement
activities performed to remedy existing minor maintenance deficiencies
or to mitigate the need for extensive capital renovation and
rehabilitation in the future. Allowable expenses pursuant to this
subparagraph shall not include any expenses eligible for aid under
provisions of subdivision six of this section. Expenses reimbursed under
this subdivision shall be excluded from the approved operating expenses
of the district and shall be recorded in the district's special aid
fund.
(4) If a school district spends any of the apportionment provided
pursuant to this subdivision to supplant local funds as approved in the
district's nineteen hundred ninety-seven--ninety-eight budget for repair
programs, as defined in regulations of the commissioner, then it shall
have its apportionment under this section reduced in an amount equal to
such substitution.
(5) Notwithstanding any other provisions of this subdivision to the
contrary, the commissioner is authorized to pay, up to seventy percent
of the moneys appropriated for such repair programs, to the extent such
moneys have been expended by February first of each school year and
reported in a manner satisfactory to such commissioner by March first,
prior to April first of such school year, with the remainder payable on
or after such date.
(6) Any contract in excess of twenty-five thousand dollars entered
into by a school district receiving an apportionment pursuant to this
section in excess of one hundred thirty thousand dollars for repairs to
be funded pursuant to this subdivision shall be deemed to be a state
contract within the meaning of that term as set forth in article
fifteen-A of the executive law, and the school district shall be deemed,
for purposes of this section, a contracting agency as that term is used
in article fifteen-A of the executive law.
c. In the event the appropriation for purposes of this subdivision in
any year is insufficient to pay all claims received pursuant to this
subdivision, the commissioner shall pay such claims on a prorated basis
among all districts filing such claims until the appropriation is
exhausted. For aid payable in the nineteen hundred
ninety-eight--ninety-nine through the two thousand four--two thousand
five school years, the aid payable pursuant to this subdivision shall
not exceed fifty million dollars ($50,000,000), and for the two thousand
five--two thousand six school year and thereafter the aid payable
pursuant to this subdivision shall not exceed eighty million dollars
($80,000,000).

6-e. Additional apportionment of building aid for building condition
surveys of school buildings. In addition to the apportionments payable
to a school district pursuant to subdivision six of this section, the
commissioner is hereby authorized to apportion to any school district
additional building aid in accordance with this subdivision for its
approved expenses in the base year for building condition surveys of
school buildings used for instructional purposes that are conducted
pursuant to this subdivision and subdivision four of section thirty-six
hundred forty-one of this article. The amount of such apportionment
shall equal the product of the building aid ratio defined pursuant to
paragraph c of subdivision six of this section and the actual approved
expenses incurred by the district in the base year for each school
building so inspected, provided that the amount of such apportionment
shall not exceed the building condition survey aid ceiling, and provided
further that no state aid claim for the survey of such building has been
submitted within the five years prior to the submission of a claim. For
surveys conducted in the nineteen hundred ninety-eight--ninety-nine
school year, the building condition aid ceiling shall be twenty cents
gross per square foot of floor area. For surveys conducted in the
nineteen hundred ninety-nine--two thousand school year and thereafter,
the inspection aid ceiling shall be twenty cents gross per square foot
of floor area, 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-eight.

6-f. Additional apportionment of building aid for certain projects. a.
In addition to the apportionment payable to a school district pursuant
to subdivision six of this section, the commissioner is hereby
authorized to apportion to any school district additional building aid
in the amount equal to the product of its approved expenditures in the
base year for capital outlays from the district's general fund, capital
fund or reserved funds that are incurred on or after July first, two
thousand two for an eligible school construction project as defined in
paragraph b of this subdivision, and the district's applicable building
aid ratio as defined pursuant to paragraph c of subdivision six of this
section. Approved expenditures for capital outlays for eligible school
construction projects that are eligible for an apportionment pursuant to
this subdivision shall not be eligible for aid pursuant to subdivision
six of this section.
b. For the purposes of this subdivision, an "eligible school
construction project" shall mean a school construction project that is
entirely funded from capital outlays and:
(1) has a total project cost of one hundred thousand dollars or less;
provided however, that for any district, no more than one project shall
be eligible pursuant to this subparagraph for an apportionment within
the same school year; and/or
(2) is a construction emergency project 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 winds, flood or a similar
catastrophic event which results in the necessity for immediate repair;
and/or
(3) if bonded pursuant to paragraph j of subdivision six of this
section, would cause a city school district in a city having a
population of less than one hundred twenty-five thousand inhabitants to
exceed ninety-five percent of its constitutional debt limit provided,
however, that any debt issued pursuant to paragraph c of section 104.00
of the local finance law shall not be included in such calculation.

7. Apportionment for pupil transportation. a. In addition to the
foregoing apportionment, there shall be apportioned to any school
district for pupil transportation, the lesser of ninety per centum or
the state share of its approved transportation expense for the base
year. The state share shall equal the sum of the transportation sparsity
adjustment and the transportation aid ratio, but not less than six and
one-half percent. The transportation aid ratio shall equal the greater
of (i) the product of one and two hundred sixty-three thousandths
multiplied by the state sharing ratio for comprehensive operating aid,
(ii) an aid ratio computed by subtracting from one and one hundredth the
product computed to three decimals without rounding obtained by
multiplying the resident weighted average daily attendance wealth ratio
by forty-six percent, where such aid ratio shall be expressed as a
decimal carried to three places without rounding or (iii) excluding
cities with a population of more than one million, an aid ratio computed
by subtracting from one and one hundredth the product computed to three
decimal places without rounding obtained by multiplying the number
computed to three decimals without rounding obtained when the quotient
of actual valuation of a school district, as defined in paragraph c of
subdivision one of this section, divided by the sum of the resident
public school district enrollment, the resident nonpublic school
district enrollment and the additional public school enrollment of the
school district for the year prior to the base year is divided by the
statewide average actual valuation per the sum of such total resident
public school district enrollment, nonpublic school district enrollment
and additional public school enrollment of all school districts eligible
for an apportionment pursuant to this section except central high school
districts as computed by the commissioner using the latest single year
actual valuation computed under paragraph c of subdivision one of this
section, by forty-six percent, where such ratio shall be expressed as a
decimal carried to three decimal places without rounding. The
computation of such statewide average shall include the actual valuation
of all school districts eligible for an apportionment pursuant to this
section except central high school districts. The transportation
sparsity adjustment shall equal the quotient of: the positive remainder
of twenty-one minus the district's public school enrollment for the year
prior to the base year per square mile, divided by three hundred
seventeen and eighty-eight hundredths. Approved transportation expense
shall be the sum of the approved transportation operating expense and
the approved transportation capital, debt service and lease expense of
the district. Approved transportation expense shall not be aidable
pursuant to section nineteen hundred fifty of this chapter.
b. (1) For the purposes of this apportionment, approved transportation
operating expense shall be the actual expenditure incurred by a school
district and approved by the commissioner (i) for those items of
transportation operating expense allowable under subdivision one of
section thirty-six hundred twenty-three-a of this article for regular
aidable transportation of pupils as such terms are defined in sections
thirty-six hundred twenty-one and thirty-six hundred twenty-two-a of
this article, and (ii) for those items of transportation operating
expense allowable under subdivision one of section thirty-six hundred
twenty-three-a of this article for the transportation required or
authorized pursuant to article eighty-nine of this chapter, and (iii)
for providing monitors on school buses for students with disabilities,
and (iv) for transportation operating expenses allowable under section
thirty-six hundred twenty-three-a of this article for the transportation
of homeless children authorized by paragraph c of subdivision four of
section thirty-two hundred nine of this chapter, provided that the total
approved cost of such transportation shall not exceed the amount of the
total cost of the most cost-effective mode of transportation.
(2) Notwithstanding any inconsistent provisions of this article, any
increase in aids payable pursuant to this paragraph for public service
transportation during the nineteen hundred ninety-four--ninety-five
school year claimed by a school district in a city with a population in
excess of one million inhabitants that is in excess of such aids payable
based on the estimate of such expenditures reported to the commissioner
by such city school district as of April first, nineteen hundred
ninety-five shall be payable in September, nineteen hundred ninety-six.
c. For the purposes of computing this apportionment for the two
thousand five--two thousand six school year and thereafter, approved
transportation capital, debt service, and lease expense shall be the
amount computed based upon an assumed amortization determined pursuant
to paragraph e of this subdivision for an expenditure incurred by a
school district and approved by the commissioner for those items of
transportation capital, debt service and lease expense allowable under
subdivision two of section thirty-six hundred twenty-three-a of this
article for: (i) the regular aidable transportation of pupils, as such
terms are defined in sections thirty-six hundred twenty-one and
thirty-six hundred twenty-two-a of this article, (ii) the transportation
of children with disabilities pursuant to article eighty-nine of this
chapter, and (iii) the transportation of homeless children pursuant to
paragraph c of subdivision four of section thirty-two hundred nine of
this chapter, provided that the total approved cost of such
transportation shall not exceed the amount of the total cost of the most
cost-effective mode of transportation. Approvable expenses for the
purchase of school buses shall be limited to the actual purchase price,
or the expense as if the bus were purchased under state contract,
whichever is less. If the commissioner determines that no comparable bus
was available under state contract at the time of purchase, the
approvable expenses shall be the actual purchase price or the state wide
median price of such bus in the most recent base year in which such
median price was established with an allowable year to year CPI increase
as defined in subdivision fourteen of section three hundred five of this
chapter; whichever is less. Such median shall be computed by the
commissioner for the purposes of this subdivision. Commencing with aid
payable in the nineteen hundred ninety-six--ninety-seven school year, no
aid shall be payable in the current year for costs incurred for the
purchase or lease of a school bus in the base year unless (i) such costs
were budgeted by the school district and so reported to the commissioner
by November fifteenth of the base year or (ii) such costs were incurred
on an emergency basis to replace a school bus that has been rendered
unusable due to accident, fire or other similar circumstance, and such
emergency and the cost of such replacement were reported to the
commissioner within sixty days of such replacement; provided, however,
that nothing herein shall prohibit the district from claiming aid for
such purchase or lease of a school bus in the year following the current
school year as if such costs were approved transportation expense
incurred during the current year for the purposes of paragraph a of this
subdivision and to the extent that such costs are identified to the
commissioner by November first of the current year.
d. In determining approved transportation operating expense for
district-owned transportation and approved transportation capital, debt
service and lease expense pursuant to paragraphs b, c and e of this
subdivision and part two of this article, the commissioner shall make a
deduction from the total transportation expense for the transportation
of nonallowable pupils, and for that portion of the total annual mileage
of district-owned school buses that is not aidable because it is not
included in the total annual allowable mileage as defined in section
thirty-six hundred twenty-one of this article, provided that such
calculations shall be made pursuant to regulations of the commissioner,
and further provided that such regulations shall provide for an
exclusion of pupil miles for transportation provided on a
space-available basis to pupils attending an approved universal
prekindergarten program pursuant to section thirty-six hundred two-e of
this article that does not result in additional transportation costs.
e. In determining approved transportation capital, debt service and
lease expense for aid payable in the two thousand five--two thousand six
school year and thereafter, the commissioner, after applying the
provisions of paragraph c of this subdivision to such expense, shall
establish an assumed amortization pursuant to this paragraph to
determine the approved capital, debt service and lease expense of the
school district that is aidable in the current year, whether or not the
school district issues debt for such expenditures, subject to any
deduction pursuant to paragraph d of this subdivision. Such assumed
amortization shall be for a period of five years and shall commence
twelve months after the school district enters into a purchase contract,
lease of the school bus or equipment or a general contract for the
construction, reconstruction, lease or purchase of a transportation
storage facility or site in an amount less than ten thousand dollars;
except that where expenses were incurred for the purchase or lease of a
school bus or equipment or the construction, reconstruction, lease or
purchase of a transportation storage facility or site prior to July
first, two thousand five and debt service was still outstanding or the
lease was still in effect as of such date, the assumed amortization
shall commence as of July first, two thousand five and the period of the
amortization shall be for a period equal to five years less the number
of years, rounded to the nearest year, elapsed from the date upon which
the school district first entered into such purchase contract or general
contract and July first, two thousand five, as determined by the
commissioner, or the remaining term of the lease as of such date. Such
assumed amortization shall provide for equal semiannual payments of
principal and interest based on an assumed interest rate established by
the commissioner pursuant to this paragraph. By the first day of
September of the current year commencing with the two thousand five--two
thousand six school year, each school district 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 for expenses allowable
pursuant to subdivision two of section thirty-six hundred twenty-three-a
of this article. 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 the interest rate of
each such school district applicable to the current year for the
purposes of this paragraph and shall be expressed as a decimal to five
places rounded to the nearest eighth of one-one hundredth.

8. (i) Computation of total aidable pupil units for operating aid for
aid payable in the nineteen hundred ninety-six--ninety-seven and prior
school years. A district's total aidable pupil units for the purpose of
computing operating aid shall be the sum of the district's adjusted
average daily attendance computed pursuant to this section plus the
additional aidable pupil units computed for the base year under
subdivision nine of this section.
(ii) Computation of total aidable pupil units for operating aid
payable in the nineteen hundred ninety-seven--ninety-eight school year
and thereafter. A district's total aidable pupil units for the purpose
of computing operating aid shall be the sum of the district's adjusted
average daily attendance computed pursuant to this section for the year
prior to the base year multiplied by the enrollment index computed
pursuant to this section for the base year plus the additional aidable
pupil units computed for the year prior to the base year under
subdivision nine of this section.
(iii) In such computation 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
because of a religious holiday as provided in paragraph b of subdivision
two of this section. For the purposes of computing operating aid a
district may use either total aidable pupil units for the current aid
year or the average of total aidable pupil units for the current aid
year and the prior aid year, using current aid year definitions of total
aidable pupil units for both years, except that for aids payable during
the nineteen hundred ninety-seven--ninety-eight school year the total
aidable pupil units for the prior aid year used in such average shall be
calculated using the definition of total aidable pupil units in effect
for aid payable in the base year.

9. Additional aidable pupil units. a. The additional aidable pupil
units used to compute total aidable pupil units pursuant to subdivision
eight of this section shall be the sum of the attendance of summer
session pupils multiplied by twelve per centum and the weighted pupils
with special educational needs. Nothing contained in this subdivision
shall be construed to result in the inclusion of the attendance of
summer session pupils in the computation of weighted or adjusted average
daily attendance pursuant to subdivision two of this section.
b. For the computation of total wealth pupil units, additional aidable
pupil units shall include the year prior to the base year resident
weighted pupils with special educational needs and resident weighted
pupils with handicapping conditions.

9-a. Secondary school weighting. a. Except as provided in paragraph b
of this subdivision, there shall be added to the total aidable pupil
units computed in subdivision eight of this section a number obtained by
multiplying by twenty-five per centum the adjusted average daily
attendance in grades seven through twelve excluding attendance of pupils
who receive a weighting for handicapping conditions except for those
pupils, if any, for whom a weighting of thirteen-hundredths is provided
in clause four of subparagraph b of paragraph one of subdivision
nineteen of this section. Only resident secondary pupils shall be used
for computation of wealth units.
b. For the purpose of computing total aidable pupil units for
operating aid payable in the nineteen hundred ninety-seven--ninety-eight
school year and thereafter pursuant to subdivision eight of this
section, there shall be added to the total aidable pupil units computed
in such subdivision eight a number equal to the product of: (i)
twenty-five per centum, (ii) the adjusted average daily attendance in
grades seven through twelve for the year prior to the base year,
excluding attendance of pupils who receive a weighting for handicapping
conditions except for those pupils, if any, for whom a weighting of
thirteen-hundredths is provided in clause four of subparagraph b of
paragraph one of subdivision nineteen of this section, and (iii) the
enrollment index computed pursuant to this section for the base year.

10. a. Program approval requirements. Any school district receiving
limited English proficiency aid pursuant to subdivision twenty-two of
this section or a payment in lieu of such aid or any district receiving
an additional apportionment pursuant to subdivision nineteen of this
section for pupils with disabilities or a payment in lieu of such
apportionment or any district receiving an additional apportionment
pursuant to subdivision seventeen of this section for pupils in career
education programs or a payment in lieu of such apportionment shall use
the total funds attributable to such pupils for locally administered
programs for such pupils in accordance with regulations issued by the
commissioner. Such regulations shall provide for the use of such funds
in the manner determined by the commissioner to be the most
educationally advantageous for such pupils; and such regulations shall
also include annual district reporting requirements which shall require
the identification of such pupils, a statement describing the
expenditure of the preceding year's funds for such pupils and an
evaluation of the results obtained from such expenditures. A district
which spends any part of its total annual apportionment attributable to
such pupils in an unauthorized manner in the base year shall have its
current year apportionment reduced by the amount of such unauthorized
expenditures in the base year.
b. District plans of service. Any school district receiving limited
English proficiency aid pursuant to subdivision twenty-two of this
section or a payment in lieu of such aid or an additional apportionment
pursuant to subdivision nineteen of this section for pupils with
disabilities or a payment in lieu of such apportionment or to
subdivision seventeen of this section for pupils in career education
programs or a payment in lieu of such apportionment shall, prior to
September first, nineteen hundred seventy-four and every third year
thereafter, submit to the commissioner an acceptable plan of service
describing the student outcomes expected from implementation of the
proposed plan, except that after September first, nineteen hundred
eighty-six such plans with respect to the apportionment for pupils with
disabilities or for pupils in career education programs shall be
submitted every two years at a date specified by the commissioner and
revised annually. The plan of service submitted by a school district
receiving an additional apportionment pursuant to subdivision nineteen
of this section for pupils with disabilities shall also describe how
such district intends to ensure that all instructional materials to be
used in the schools of such district will be made available in a usable
alternative format for each student with a disability and for each
student who is a qualified individual with a disability, at the same
time as such instructional materials are available to non-disabled
students, provided that such plan may incorporate by reference the
alternative format plans developed pursuant to subdivision twenty-nine-a
of section sixteen hundred four, subdivision four-a of section seventeen
hundred nine, subdivision seven-a of section twenty-five hundred three
or subdivision seven-a of section twenty-five hundred fifty-four of this
chapter. Such plans shall be in a form prescribed by the commissioner,
and except as heretofore provided, shall have the content prescribed by
the commissioner. The commissioner may, from time to time, require
amendments of such plans as deemed to be necessary and appropriate to
further the educational welfare of the pupils involved.

11. Approved operating expense. The approved operating expense for
apportionments to any school district hereunder shall be computed as
follows: The apportionment to any school district for operating expense
shall be based upon the total expenditures from its general fund and
from its capital fund and from its risk retention fund for purposes of
employee benefit claims related to salaries paid from the general fund,
and for any city school districts with a population of more than one
hundred twenty-five thousand inhabitants its expenditures from the
special aid fund of grant moneys for improving pupil performance and
categorical aid for special reading programs as provided in the aid to
localities budget during the applicable year as approved by the
commissioner, and in accordance with the classification of expenditures
in use by the commissioner for the reporting by school districts of
receipts, expenditures and other financial data. For the purpose of this
subdivision operating expense shall be defined as total cash
expenditures during the applicable year, but shall exclude: (1) any
balances and transfers; (2) any payments for transportation of pupils to
and from school during the regular school year inclusive of capital
outlays and debt service therefor; (2-a) a portion of any payments for
transportation of pupils to and from district operated summer school
programs pursuant to subdivision six of section thirty-six hundred
twenty-two-a of this article, inclusive of capital outlays and debt
service therefor, equal to the product of such expenditures multiplied
by the quotient of the total apportionment after the proration, if any,
required by such subdivision six of such section divided by the total
apportionment prior to such proration; (3) any payments for capital
outlay and debt service for school building purposes, provided, however,
that in the case of a school district which has entered into a contract
with state university pursuant to paragraph o of subdivision two of
section three hundred fifty-five of this chapter, under which the school
district makes payments to state university on account of capital outlay
relating to certain children residing in such school district, such
payments shall not be so excluded; (4) any payments for cafeteria or
school lunch programs; (5) any proceeds of short term borrowings in the
general fund and any payments from the proceeds of the sale of
obligations in the capital fund; (6) any cash receipts which reduce the
cost of an item when applied against the expenditure therefor, except
gifts, donations and earned interest and any refunds made; (7) any
payments made to boards of cooperative educational services and to
county vocational education and extension boards for purposes or
programs for which an apportionment is paid pursuant to other sections
of this chapter, except that payments attributable to eligible pupils
with disabilities and ineligible pupils residing in noncomponent
districts shall be included in operating expense; (8) any tuition
payments made to other school districts inclusive of payments made to a
central high school district by one of its component school districts;
(9) any apportionment or payment received from the state for
experimental or special programs paid under provisions other than those
found in this section and other than any apportionments or payments
received from the state by the city school district of the city of
Yonkers for the purpose of funding an educational improvement program
pursuant to a court order and other than any other state grants in aid
identified by the commissioner for general use as specified by the board
of education pursuant to subdivision two of section seventeen hundred
eighteen of this chapter; (10) any funds received from the federal
government except the federal share of medicaid subject to the
provisions of section thirty-six hundred nine-a of this part and except
Impact Aid funds received pursuant to sections two and six of Public Law
eighty-one-eight hundred seventy-four (PL 81-874) or any law superseding
such law in any such district which received aid pursuant to both such
sections; provided further, however, that there shall be excluded from
such federal funds or other apportionments any payments from such funds
already deducted pursuant to this paragraph; (11) any payments made for
which an apportionment is disallowed pursuant to regulations of the
commissioner; (12) any expenditures made for accounting, tabulation, or
computer equipment, in excess of ten thousand dollars unless such
expenditures shall have been specifically approved by the commissioner;
(13) any rentals received pursuant to the provisions of section four
hundred three-a of this chapter; (14) any rentals or other annual
payments received pursuant to the provisions of section four hundred
three-b of this chapter;
(15) any expenditures made for persons twenty-one years of age or over
attending employment preparation education programs pursuant to
subdivision twenty-four of this section;
(16) any tuition payments made pursuant to a contract under the
provisions of paragraphs e, f, g, h, i and l of subdivision two of
section forty-four hundred one of this chapter or any tuition payments
on behalf of pupils attending a state school under paragraph d of such
subdivision; and
(17) in any year in which expenditures are made to the New York state
teachers' retirement system or the New York state and local employees'
retirement system for both the prior school year and the current school
year, any expenditures made to such retirement systems and recorded in
the school year prior to the school year in which such obligations are
paid.

11-a. Instructional expense. "Instructional expense" shall mean the
sum of all year prior to the base year expenditures related to the
instructional program of the district, as defined in regulations of the
commissioner, including the cost of fringe benefits paid by such
district for the instructional staff of the district.

12. Computation of comprehensive operating aid. a. The apportionment
to school districts for operating expense shall be the sum of: (i) the
greater of the amounts computed pursuant to paragraphs b and c of this
subdivision or if applicable, pursuant to paragraph b of subdivision
fifteen of this section; and (ii) the extraordinary needs aid computed
pursuant to paragraph e of this subdivision.
b. Computation of formula operating aid. The apportionment to any
school district hereunder shall be computed by multiplying the formula
operating aid ceiling by the operating aid ratio with the product
multiplied by the district's total aidable pupil units.
c. Computation of alternate operating aid. The apportionment for
alternate operating aid shall be equal to the product of four hundred
dollars and the district's total aidable pupil units.
d. Formula operating aid ceiling. For aid payable in the school year
nineteen hundred ninety-four--ninety-five and thereafter, the formula
operating aid ceiling shall be thirty-nine hundred dollars plus an
amount equal to the product of (i) the lesser of eight thousand dollars
or the expense per pupil as defined in subdivision one of this section
minus thirty-nine hundred dollars and (ii) the greater of the quotient,
computed to four decimals without rounding, of seven and one-half
percent divided by the combined wealth ratio, for school districts
operating grades kindergarten through twelve, including central high
school districts and their component elementary school districts, or
seven and one-half percent.
e. Extraordinary needs aid. In addition to any other apportionment
pursuant to this chapter, a school district shall be eligible for an
apportionment for extraordinary needs equal to the product of the
formula operating aid ceiling defined in this subdivision, the
extraordinary needs aid ratio defined in subdivision three of this
section, the extraordinary needs count, the concentration factor and the
extraordinary needs factor all as defined in subdivision one of this
section. For aid payable in the school year two thousand four--two
thousand five, any school district may receive the aid computed under
this paragraph in the current year or the extraordinary needs aid base.
Notwithstanding any other provision of law to the contrary, for aid
payable in the school year two thousand four--two thousand five, any
district receiving aid pursuant to this paragraph in excess of the
extraordinary needs aid base may set aside and use such excess for the
purpose of assisting students in achieving the new high learning
standards and assessments in accordance with subdivision thirty-eight of
this section.
f. Setaside for attendance improvement and dropout prevention. Except
as provided in subparagraph one of this paragraph, any school district
with an attendance ratio in the year prior to the base year as
calculated based on data on file with the commissioner as of the first
day of July of the current year that is in the bottom decile of such
attendance ratios for all districts shall set aside a portion of any aid
payable pursuant to this section for the purpose of conducting programs
to improve student attendance and student retention pursuant to the
provisions of this paragraph and in accordance with a plan approved by
the commissioner pursuant to regulations adopted by the commissioner for
such purpose.
(1) Calculation of set aside for attendance improvement and dropout
prevention. The set aside for attendance improvement and dropout
prevention shall be calculated based on data on file with the
commissioner as of the first day of July of the current year and shall
equal the product of (i) three hundred twenty-five dollars, (ii) the
district's base year enrollment and (iii) the remainder resulting when
such attendance ratio is subtracted from one; after taking into account
the provisions of paragraph c of subdivision eighteen of this section;
provided, however, that for a city school district in a city with a
population in excess of one million inhabitants, three hundred
thirty-five dollars shall be substituted for three hundred twenty-five
dollars and provided further that notwithstanding the amount of set
aside so calculated, for aid payable in the nineteen hundred
ninety-six--ninety-seven school year through the two thousand--two
thousand one school year and for the two thousand three--two thousand
four school year through the two thousand five--two thousand six school
year, such set aside shall equal the amount set aside in the base year
and for aid payable in the two thousand two--two thousand three school
year, such set aside shall equal the amount set aside pursuant to this
paragraph in the year prior to the base year; provided further that the
provisions of this paragraph shall apply only if the product of clauses
(ii) and (iii) of this subparagraph exceeds four hundred sixty-one.
(2) Attendance Plan. (A) A school district required to set aside
funding pursuant to this paragraph for attendance improvement and
dropout prevention shall file a plan with the commissioner by July
fifteenth detailing a program pursuant to subparagraph three of this
paragraph to improve attendance and student retention and shall indicate
how the district will use aid received under this paragraph for such
purposes. Such plan shall:
(i) provide for the targeting of monies to school buildings with
chronic truancy rates equal to or higher than the district median
provided however that a school that has been designated as a school
under registration review (SURR), as defined by the commissioner, with a
chronic truancy rate lower than the district median shall be eligible to
retain such funding for the school year subsequent to removal from SURR
designation;
(ii) detail how programs funded under this will be coordinated with
the dropout prevention programs of local public and private community
agencies and organizations;
(iii) detail procedures for reviewing the attendance and academic
records of all pupils in the district during the two year period prior
to entrance into high school for the purpose of identifying pupils with
a high risk of truancy and academic failure, including but not limited
to victims of child abuse or neglect, or pupils who are in foster care;
and
(iv) detail how services will be provided to such students in
conjunction with plans for schoolwide improvement where appropriate;
(v) provide for services to pregnant pupils, and parenting pupils and
for coordination of such services with those services provided to such
pupils by local social services districts;
(vi) provide for services to pupils who are members of households
receiving public assistance, and who reside in hotels, motels, shelters
or other temporary living arrangements and for coordination of such
services with those services provided by local social services
districts;
(vii) provide for the coordination of services under this paragraph
with those provided under paragraph g of this subdivision and under
subdivision thirty-two where appropriate;
(viii) provide for the coordination of services under this section
with those required under section two hundred forty-three-a of the
executive law;
(ix) provide for parental involvement; and
(x) provide, to the greatest extent practicable, an expansion of
services to schools which currently receive no services and contain high
concentrations of limited English proficient pupils; and
(xi) detail the procedures by which the coordination of services
provided by community-based organizations will be achieved in schools.
Such plan shall specify measurable performance goals and outcomes for
the improvement of pupil performance, attendance and student retention
and will require an examination of existing district and targeted
building practices to determine the effectiveness of such practices. In
this regard, national and state validated programs that have proven
successful in increasing attendance, improving at-risk pupil performance
and reducing dropout rates and recent research and evaluation studies of
New York state attendance improvement dropout prevention programs must
be considered in the planning process.
(B) A city school district in a city having a population of more than
one million shall file a plan pursuant to this paragraph containing only
such programs as are selected by the chancellor with the approval of the
commissioner from replicable model attendance improvement/dropout
prevention programs which have demonstrated effectiveness. This plan
shall include a list and description of the necessary administrative
costs of the school district's setaside for the purposes of this
paragraph, and the planned distribution of funds to community school
districts, to school buildings within community school districts, to
community-based organizations and to schools under the jurisdiction of
the board of education of the city school district of such city. Upon
approval of the plan, the commissioner shall be authorized to make
payments for such purposes pursuant to section thirty-six hundred nine-a
of this chapter.
(C) A city school district in a city having a population of more than
one million shall submit an annual report to the speaker of the
assembly, the temporary president of the senate, the governor, and the
commissioner, by January fifteenth of the current year. Such report
shall include but not be limited to, and shall detail:
(i) the distribution of funds to community school districts and to
school buildings within community school districts and to schools under
the jurisdiction of the board of education of the city school district
of the city of New York and a description and amount of administrative
costs of the central board, community school districts, individual
school buildings, community-based organizations, and schools under the
jurisdiction of the central board of education;
(ii) the number of community-based organizations and the schools they
are contracted with, indicators of successful coordination between
school and community-based organizations, and a description of their
related activities;
(iii) the type of services provided to pregnant pupils and parenting
pupils and the number of such pupils served;
(iv) the procedures used for reviewing the attendance and academic
records of all pupils in the district during the two year period prior
to entrance into high school for the purposes of identifying pupils with
a high risk of truancy and academic failure, the number of such students
herein identified, and of those students identified, the number actually
served;
(v) the measurable performance objectives along with the related
student data from the previous program year which can be used to
determine the success of the program;
(vi) evidence of coordination with services provided under paragraph g
of this subdivision and under subdivision thirty-two and evidence of
coordination with local social services districts and any federal, state
and local program;
(vii) provisions made to expand and coordinate services with community
based organizations;
(viii) initiatives undertaken to increase the involvement of parents
or persons in parental relation in reducing truancy and improving the
attendance of their children; and
(ix) initiatives undertaken to expand services to eligible schools
with high concentrations of limited English proficient pupils.
(3) Allowable costs. (A) For the purposes of this paragraph, programs
and services which may be approved by the commissioner pursuant to this
paragraph shall include but not be limited to:
(i) the services of additional support personnel including attendance,
counseling and social work personnel;
(ii) intergenerational mentoring programs;
(iii) the institution of new or additional programs for in-school
suspension programs work-experience, diagnostic screening, computerized
telephone contact systems, alternative education programs;
(iv) extracurricular after-school activities including but not limited
to: athletics, recreation, art, music, drama, academic tutoring,
mentoring, cultural field trips, community services and related
equipment;
(v) violence prevention activities including but not limited to
conflict resolution programs, peer mediation programs, staff development
in conflict resolution and violence prevention, and collaborative school
safety programs; and
(vi) other services designed to improve student attendance and
retention rates.
(B) The commissioner shall disallow any administrative or indirect
costs of such programs or services pursuant to this paragraph in a city
school district of a city having a population of more than one million
inhabitants which exceed the allowable percent. For the nineteen hundred
ninety-five--ninety-six school year the allowable percent shall be
fifteen percent, thereafter it shall be twelve percent. The terms
"administrative and indirect costs" shall be defined by the commissioner
in regulations which shall be promulgated on or before September first,
nineteen hundred ninety-five.
(C) Such services may be provided by contract with non-school based
organizations provided that no more than the allowable percent of the
total contract costs shall be expended for administrative and indirect
costs of the contractee as defined in regulations of the commissioner,
which shall be promulgated on or before September first, nineteen
hundred ninety-five. A school district may contract with a board of
cooperative educational services for the provision of such services. All
services shall be coordinated to the maximum extent feasible with
services available pursuant to other state, local and federally funded
programs.
(4) The commissioner is authorized to provide technical assistance to
eligible school districts in developing a resource allocation plan in
connection with programs funded according to this paragraph.
(5) The commissioner shall establish uniform statistical reporting
requirements for school districts receiving aid under this paragraph to
apply in evaluating improvement in attendance and student retention.
(6) A school district which spends less in local funds during the
current year than in the base year for the purposes of conducting
programs to improve student attendance and student retention, as defined
by regulation of the commissioner, shall have its apportionment under
this section reduced in an amount equal to such deficiency in the
current year or the succeeding school year. In addition, a district
which spends any part of its total annual set aside attributable to such
purposes in an unauthorized manner in the base year shall have its
current year apportionment under this section reduced in an amount equal
to the amount of such unauthorized expenditures. In no event shall the
reductions assessed pursuant to this clause on the current year
apportionment under this section, be deducted from the set asides
required pursuant to this subdivision. For the two thousand five--two
thousand six school year, it is further provided that any city school
district in a city having a population of more than one million shall
allocate at least one-third of any increase from base year levels in
funds set aside pursuant to the requirements of this paragraph to
community-based organizations. Any increase required pursuant to this
subparagraph to community-based organizations must be in addition to
allocations provided to community-based organizations in the base year.
(7) The commissioner shall adopt regulations to implement the
provisions of this paragraph.
g. Set aside for compensatory education. Any school district with a
percentage of pupils with compensatory educational needs in the base
year as calculated based on data on file with the commissioner as of the
first day of July of the current year, that is in the top quartile of
such percentages for all districts shall set aside a portion of any aid
payable pursuant to this section for the purposes of compensatory
education programs in accordance with a plan approved by the
commissioner pursuant to the provisions of this subdivision and
regulations promulgated pursuant hereto.
(1) Calculation of set aside for compensatory education. The set aside
for compensatory education programs shall be based on data on file with
the commissioner as of the first day of July of the current year and
shall equal the product of (i) the greater of the product of nine
hundred forty dollars and the district's set aside ratio or ninety
dollars and (ii) the district's pupils with compensatory educational
needs.
(2) A school district required to set aside funding pursuant to this
paragraph for pupils with compensatory educational needs shall use such
setaside in order to assist, in part, meeting the objectives established
under Chapter one and in recognition of the disparity between the
authorization level under such act and the funds actually made available
to the schools of New York state pursuant to such act provided that the
obligation to provide the services required pursuant to this paragraph
shall continue only so long as such federal funds are made available to
school districts in New York notwithstanding the provisions of paragraph
d of subdivision fourteen of section twenty-five hundred ninety-i of
this chapter. A city school district with a population of more than one
million inhabitants shall distribute the setaside calculated pursuant to
this paragraph in accordance with the provisions of items (i) through
(v) of clause (A) of this subparagraph, notwithstanding the provisions
of paragraph d of subdivision fourteen of section twenty-five hundred
ninety-i of this chapter. For the purposes of this subparagraph, Chapter
one shall mean Chapter one (l) of Title I of the Elementary and
Secondary Education Act of 1965, as amended, (Public Law 100-297).
(A) Eligibility. Pupils determined to be eligible under this clause
shall receive services pursuant to this paragraph. Pupils eligible to
receive compensatory services hereunder shall include:
(i) pupils who score below the statewide reference point as defined by
the commissioner on standardized third and sixth grade reading and
mathematics examinations and fifth grade writing tests; or
(ii) pupils who score below a reference point on preliminary
competency tests or regents competency tests; or
(iii) pupils in grades one, two and three who are found, through an
acceptable, uniform screening procedure developed by the district and
approved by the commissioner, administered in conjunction with teacher
evaluations, to have educational deficiencies in reading, writing or
mathematics; or
(iv) kindergarten pupils who are found, through an objective, uniform
districtwide screening procedure approved by the commissioner,
administered in conjunction with their teacher's evaluation, to have
educational deficiencies; or
(v) pupils who by reason of limited English proficiency, score below a
statewide reference point on an examination approved by the commissioner
and administered in English.
Such pupils shall be eligible to receive services until such pupils
are performing at grade level. Any pupil who does not meet the foregoing
criteria but is failing in two or more academic areas may be eligible to
receive compensatory services hereunder. In addition, a school district
may provide compensatory services pursuant to a plan to upgrade the
entire educational program in a school as provided in clause (H) of this
subparagraph if such school meets the criteria for use of funds for
schoolwide programs established under Chapter one. Notwithstanding the
provisions of this clause, this paragraph shall not apply to children
with handicapping conditions receiving services in accordance with an
individualized education program by the school district committee on
special education.
(B) Services. Compensatory services shall be appropriate to the
individual needs of each pupil as identified by an assessment which
shall be periodically adjusted as appropriate and shall be incorporated
into the regular curriculum as much as possible. Such services may
include:
(i) small group instruction;
(ii) individualized tutoring;
(iii) specialized assistance within the regular classroom using
strategies appropriate to the needs of individual pupils;
(iv) accelerated learning strategies which include building on
existing pupil strengths, provision of additional time for appropriate
enrichment, and upgrading the challenge levels of the curriculum;
(v) an adjusted instructional program;
(vi) the use of educational technology;
(vii) after-school or summer school remedial programs;
(viii) schoolwide projects as provided for in clause (H) of this
subparagraph;
(ix) support services for pupils in kindergarten to grade three that
are integrated into the academic compensatory program provided to such
pupils;
(x) or other remedial strategy approved by the commissioner.
Nothing contained herein shall be construed to require a school
district to provide a particular service or a particular combination of
services enumerated in this clause. Each pupil receiving services shall
receive an initial diagnostic assessment for the purpose of identifying
basic skill deficiencies and shall be frequently evaluated and monitored
for progress.
(C) Coordination of services. The compensatory services shall be
congruent with the instructional program provided in the regular
classroom in addition to other programs which provide compensatory
services. The district shall provide for planning and coordination of
delivery of services and assessment procedures between the regular
classroom teacher, remedial teacher, and, where appropriate, support
services personnel funded under paragraph f of this subdivision and
subdivision thirty-two to ensure minimal disruption of regular academic
instruction and maximum integration of remedial teaching strategies with
regular course work.
(D) Allowable costs. A school district may use a portion of its funds
for pupils with compensatory educational needs for the following
activities:
(i) inservice training which may be provided through school district
programs that have proven successful or teacher centers or any other
appropriate manner pursuant to regulations of the commissioner; and
(ii) replication of model practices in use in effective schools as
defined under Chapter one.
(E) Parental involvement. A school district required to set funding in
excess of one hundred fifty thousand dollars pursuant to this paragraph
for pupils with compensatory educational needs shall implement programs,
activities, and procedures for the involvement of parents of
participating children.
(i) At a minimum, such involvement requires local school districts to:
(a) develop a written policy to ensure that parents are involved in
the planning and implementation of the district plan provided for in
clause (G) of this subparagraph;
(b) make the policy available to parents of participating children;
(c) convene an annual meeting to which all parents of participating
children must be invited; and
(d) provide parents of participating children with reports on their
children's progress in the program on at least a semi-annual basis.
(ii) Parental involvement activities may also include:
(a) notifying parents or persons in parental relationship of their
child's participation in the program, and the instructional objectives
and methods to be used;
(b) providing information and assistance to parents to help them work
with their children at home;
(c) establishment of a parent advisory committee;
(d) coordination with other state or federally funded programs which
provide literacy training and English language instruction for parents
with limited English proficiency; and
(e) other activities designed to increase achievement of participating
children.
(F) School records. Upon enrollment of a new pupil, school records of
such pupil shall be obtained as soon as possible from the pupil's
previous school and shall be maintained in the school building in which
such pupil is served. All school districts shall maintain such records
consistent with the standards established by the commissioner.
(G) District plans.
(i) Except as provided in subclause (ii) of this clause, any school
district required to setaside funding pursuant to this paragraph for
pupils with compensatory educational needs shall comply with the
applicable provisions of subdivision ten of this section.
(ii) School districts required to setaside funding pursuant to this
paragraph for pupils with compensatory needs shall submit a district
plan that meets the requirements of this item if the set aside amount is
greater than two hundred fifty thousand dollars, after taking into
account the provisions of paragraph c of subdivision eighteen of this
section and if the set aside amount is greater than five and six tenths
percent of the district's comprehensive operating aid pursuant to this
subdivision; or if the school district is a city school district in a
city with a population in excess of one hundred twenty-five thousand
inhabitants.
(a) Such plan shall include information regarding the length,
frequency and duration of compensatory services, and the size of groups
receiving such services. The plan shall provide that each pupil eligible
for compensatory services under this paragraph shall receive a
diagnostic assessment for the purpose of identifying specific basic
skill deficiencies.
(b) The school district shall provide for the establishment of
measurable performance objectives
(1) for each individual pupil which shall include raising student
performance to grade level and
(2) for each building or group of buildings with a minimum enrollment
of five hundred students which shall include statistically meaningful
educational progress measurements. Each school district shall conduct an
annual review of effectiveness to determine if performance objectives
have been achieved. For each building or buildings where performance
objectives have not been achieved, the district will review the program
or programs in such building or buildings to determine how to revise
program improvement activities in order to increase the achievement of
participating students.
(c) Such plan shall contain a statement describing the expenditure of
the preceding year's setasides for such pupils and an evaluation of the
results obtained from such expenditures.
(H) Schoolwide programs. In the case of a school that meets the
criteria for use of funds for schoolwide programs established under
Chapter one, a school district may use a portion of its setaside for
pupils with compensatory educational needs for schoolwide projects which
upgrade the entire instructional program pursuant to a plan developed by
the school district and approved by the commissioner.
(i) Such plan shall:
(a) provide for a comprehensive assessment of educational needs of all
educationally deprived pupils as defined under Chapter one, as amended,
in the school by the school district;
(b) establish goals to meet the special needs of all pupils and
procedures and measures to evaluate progress of educationally deprived
pupils in achieving those goals;
(c) describe the instructional program, pupil services and procedures
to be used in pursuing the goals of the plan, including articulation
between grade levels and schools and integration of the compensatory
program and the regular instructional program in order to reduce
fragmentation and increase program effectiveness;
(d) describe the specific uses of funds made available to the school
from the setasides available to the district for pupils with
compensatory educational needs and describe how the use of appropriate
federal and local funds will be coordinated in providing such
compensatory education services;
(e) be developed with the participation of individuals who will be
engaged in carrying out the plan, including parents, teachers, pupil
services personnel, administrators and other appropriate members of the
school community.
(ii) The commissioner may grant approval to conduct a schoolwide
improvement project for up to a period of three years. In the event
that, at the end of such period, the commissioner determines that the
school has achieved acceptable progress in enhancing student
performance, the district shall be permitted to continue the schoolwide
project for an additional three year period. Acceptable progress shall
be indicated by increased achievement by educationally deprived students
in basic and advanced skills and in attainment of grade level
proficiency or, in the alternative, for a secondary school, increased
attendance, retention, and graduation rates, provided that student
achievement has not declined during such period.
(I) A school district which spends less in local funds during the
current year than in the base year for programs for pupils with
compensatory educational needs, as defined by regulation of the
commissioner, shall have its apportionment under this section reduced in
an amount equal to such deficiency in the current year or the succeeding
school year. In addition, a district which spends any part of its total
annual setaside attributable to such pupils in an unauthorized manner in
the base year shall have its current year apportionment under this
section reduced in an amount equal to the amount of such unauthorized
expenditures. In no event shall the reductions assessed pursuant to this
clause on the current year apportionment under this section, be deducted
from the setasides required pursuant to this subdivision.
(J) Pupils with compensatory educational needs funds may be used only
to supplement and, to the extent practicable, increase the level of
funds that would, in the absence of such state funds, be made available
from other state or local sources for the education of pupils
participating in programs and projects assisted under pupils with
compensatory educational needs and in no case may the pupils with
compensatory educational needs funds be used to supplant funds from
other state or local sources.
(K) Commissioner's report. The commissioner shall annually submit to
the state legislature and the governor no later than February first a
report describing the expenditure of the preceding year's setaside which
shall include:
(i) the number of school districts operating programs or projects
funded by such setaside;
(ii) the number of school buildings in which such programs operate;
(iii) the unduplicated number and grade level of pupils with limited
English proficiency who participate in such programs in each of the
instructional areas of reading, writing, and mathematics;
(iv) the number and grade levels of pupils who participate in such
programs and in each instructional area tested;
(v) the number of years individual pupils participate in remedial
programs;
(vi) the number of participating pupils retained in their current
grade;
(vii) an evaluation of the results of such programs; and
(viii) recommendations for legislative action.
(L) The commissioner shall adopt regulations to implement the
provisions of this paragraph.
(M) Setaside ratio. The setaside aid ratio shall be calculated by
subtracting from one the product, computed to three decimals without
rounding, obtained by multiplying the combined wealth ratio by
sixty-four percent. The ratio shall not be less than zero.
(N) Calculation of additional setaside for compensatory education in
cities of one hundred twenty-five thousand or more inhabitants. The
setaside for compensatory education in large city school districts shall
equal the product of the compensatory education ceiling multiplied by
the setaside ratio multiplied by the district's pupils with compensatory
educational needs after taking into account the provisions of paragraph
c of subdivision eighteen of this section.
(O) Compensatory education ceiling. The compensatory education ceiling
for the city school district of the city of New York shall be eight
hundred eighty dollars; for the city school district of Buffalo,
seventeen hundred fifty-five dollars; for the city school district of
the city of Rochester, five hundred sixty-five dollars; for the city
school district of the city of Syracuse, four hundred thirty dollars;
and for the city school district of the city of Yonkers, two hundred
thirty dollars.
h. Setaside for early grade intervention. City school districts in
cities having a population in excess of one hundred twenty-five thousand
inhabitants shall set aside a portion of any aid payable pursuant to
this section for the purpose of reducing class size and increasing
individualized attention in grades one, two and three pursuant to the
provisions of this paragraph and in accordance with regulations adopted
by the commissioner for such purpose.
(1) Calculation of early grade intervention set aside. Any school
district with a population of one hundred twenty-five thousand or more
inhabitants shall set aside a portion of any aid payable pursuant to
this section for the purposes of early grade intervention in accordance
with this section. Such amount shall be calculated based on data on file
with the commissioner as of the first day of July of the current year
and shall equal the product of one hundred twenty dollars and the set
aside ratio and thirty percent of the public school enrollment of the
district in the base year.
(2) District Plan. A school district required to set aside funding
pursuant to this paragraph for early grade intervention shall file a
plan with the commissioner by August first detailing a program pursuant
to subparagraph three of this paragraph to reduce class size and
increase individualized attention in grades one, two and three,
procedures for improved instructional strategies to be used with those
pupils who are experiencing learning difficulties in reading, writing
and arithmetic and shall indicate how the district will use aid received
under this paragraph for such purposes.
(3) Allowable Costs. A school district shall use the setaside received
under this paragraph for the assignment of additional teachers in
sufficient numbers to reduce, within limits of the set aside, the class
size in grades one, two and three to a maximum class size of twenty-four
pupils each or for the establishment of a comprehensive continuum of
developmentally appropriate programs for pupils from kindergarten to
grade three which shall include: manageable learning group sizes to
insure proper individualized age-appropriate programming; an integrated
curriculum and assessment program in grades one, two and three with
associated staff development; and opportunities for meaningful parent
participation in the planning and implementation of day to day
activities. In the event that a school district cannot, in particular
school buildings, meet the class size requirements due to severe
physical plant limitations, or where implementation of such class size
would result in multiple classes of fewer than eighteen pupils, a
teacher assistant may be provided to increase the adult to pupil ratio
in grades one, two and three in lieu of the assignment of additional
teachers.
(4) After meeting the requirements of subparagraph three of this
paragraph, a school district may use such remaining apportionment for
programs, such as establishing early childhood centers for grades
kindergarten through two, or assigning additional teachers or teacher
assistants for the purposes of increasing individualized attention for
those pupils who are experiencing learning difficulties in grades one,
two and three.
(6) A school district which spends less in local funds during the
current year than in the base year for the purposes of reducing class
size and increasing individualized attention in grades one, two and
three pursuant to the provisions of this paragraph and in accordance
with regulations adopted by the commissioner for such purpose, shall
have its apportionment under this section reduced in an amount equal to
such deficiency in the current year or the succeeding school year. In
addition, a district which spends any part of its total annual setaside
attributable to such purposes in an unauthorized manner in the base year
shall have its current year apportionment under this section reduced in
an amount equal to the amount of such unauthorized expenditures. In no
event shall the reductions assessed pursuant to this clause on the
current year apportionment under this section, be deducted from the
setasides required pursuant to this subdivision.
(7) The commissioner is authorized to provide technical assistance to
school districts. The commissioner shall adopt regulations to implement
the provisions of this paragraph.

12-a. Aid for conversion to full day kindergarten. a. School
districts may make available full day kindergarten programs for all
children wishing to attend such programs. For school year two
thousand--two thousand one, school districts may make available full day
kindergarten programs for children wishing to attend such programs
pursuant to regulations of the commissioner. For aid payable in the
nineteen hundred ninety-eight--ninety-nine school year and thereafter,
school districts which provided any half-day kindergarten programs or
school districts which had no kindergarten programs in the nineteen
hundred ninety-six--ninety-seven school year and in the base year shall
be eligible for aid equal to the product of the district's selected
operating aid per pupil multiplied by the positive difference resulting
when the full day kindergarten enrollment of children attending programs
in the district in the base year is subtracted from such enrollment in
the current year. For the purposes of this subdivision, selected
operating aid per pupil shall mean the greater of the per pupil amount
calculated pursuant to paragraph b or c of subdivision twelve of this
section, before such amounts are multiplied by the district's total
aidable pupil units and enrollment shall be determined in accordance
with the reporting of such data pursuant to paragraph n of subdivision
one of this section. For aid payable in the two thousand two--two
thousand three school year, districts which made full day kindergarten
programs first available in the two thousand one--two thousand two
school year, but for which an amount attributable to this program was
not displayed on the computer listing produced by the commissioner in
support of the executive budget request for two thousand one--two
thousand two and entitled "BT032-1" under the heading "FULL DAY K",
would be eligible to receive an amount equal to the product of the
district's selected operating aid per pupil calculated as if operating
aid had been calculated pursuant to subdivision twelve of this section
in the current year multiplied by the positive difference resulting when
the full day kindergarten enrollment of children attending programs in
the district in the year prior to the base year is subtracted from such
enrollment in the base year.
b. Notwithstanding the provisions of this subdivision, aid apportioned
to this subdivision that is attributable to pupils enrolled in full day
kindergarten programs that are not available for all children wishing to
attend such programs shall not exceed the amount allocated for such
programs. In the event that all claims for such programs pursuant to
this subdivision exceed such allocation, the commissioner shall
determine the percentage of total claims submitted that is represented
by each district's claim on file with the commissioner at the time of
creation of each data file or fiscal report required by subdivision
twenty-one of section three hundred five of this chapter and shall pay
such claims on a prorated basis among all districts filing such claims,
provided that such prorated apportionment, computed and payable as of
September one of the school year immediately following the school year
for which such aid is claimed shall be deemed final and not subject to
change. For the two thousand--two thousand one school year, the maximum
allocation for such programs shall be three million dollars
($3,000,000).

12-b. a. Notwithstanding any other section of law to the contrary, in
lieu of aids payable pursuant to paragraph a of subdivision twelve and
subdivision sixteen of this section, in the two thousand two--two
thousand three school year, each school district shall be entitled to
receive comprehensive operating aid equal to the sum of the amounts set
forth for such school district for the two thousand one--two thousand
two school year on the computer listing produced by the commissioner in
support of the executive budget request for such year and entitled
"BT032-1" under the heading "FLEX AID" less the amounts set forth for
such school district as "Excess Cost - Public" and "Excess Cost -
Private" under the heading "2000-01 Base Year Aids" in the school aid
computer listing produced by the commissioner of education in support of
the executive budget request for the two thousand one--two thousand two
school year and entitled "BT032-1" and the amounts payable in the two
thousand--two thousand one school year pursuant to paragraph e of
subdivision twelve, subdivisions six-d, twenty-two, twenty-three,
thirty-two and thirty-eight of this section, provided that for districts
for which the combined wealth ratio as calculated pursuant to paragraph
1 of subdivision one of this section is less than one, may receive the
amount calculated herein multiplied by one hundred and one percent.
Nothing in this section would preclude a district from receiving
extraordinary needs aid calculated pursuant to paragraph e of
subdivision twelve of this section in the two thousand two--two thousand
three school year.
b. Notwithstanding any other section of law to the contrary, in lieu
of aids payable pursuant to paragraph a of subdivision twelve and
subdivisions sixteen, twenty, twenty-three, twenty-six-a and
thirty-eight of this section, in the two thousand three--two thousand
four school year, each school district shall be entitled to receive an
amount equal to the sum of aids paid pursuant to this subdivision,
subdivisions twenty-three and thirty-eight of this section and section
one hundred seven of part H of chapter eighty-three of the laws of two
thousand two in the base year less the product of such sum and the
reduction factor. The reduction factor shall be the sum of one hundred
seventy-five ten thousandths (0.0175) and the product of (1) the
district's combined wealth ratio, (2) eight hundred ten ten thousandths
(0.0810) and (3) the positive remainder when the district's percent of
eligible applicants for the free and reduced price lunch program is
subtracted from ninety-five hundredths (0.95), the reduction factor
shall not be less than two hundred twenty-five ten thousandths (0.0225)
and not more than six hundred thirty ten thousandths (0.0630). Nothing
in this section would preclude a district from receiving extraordinary
needs aid calculated pursuant to paragraph e of subdivision twelve of
this section in the two thousand three--two thousand four school year.
c. Notwithstanding any other section of law to the contrary, in lieu
of aids payable pursuant to paragraph a of subdivision twelve and
subdivisions sixteen, twenty, twenty-three, twenty-six-a and
thirty-eight of this section, in the two thousand four--two thousand
five school year, each school district shall be entitled to receive an
amount equal to the product of the aid paid pursuant to this subdivision
in the base year and one and one hundred seventy-five ten-thousandths
(1.0175). Nothing in this section would preclude a district from
receiving extraordinary needs aid calculated pursuant to paragraph e of
subdivision twelve of this section in the two thousand four--two
thousand five school year.

13. Growth aid. For aid payable in the nineteen hundred
ninety-seven--ninety-eight school year and thereafter: a. The growth
index of a school district to be used in determining its apportionment
for growth aid shall be computed by dividing the public school
enrollment of the district for the current school year as computed in
this section, by such enrollment for the base year and expressing the
result as a percentage, carried to one decimal place without rounding.
b. Any district having a growth index in excess of one and four
thousandths shall be paid an additional amount in the current year
determined by multiplying the actual excess as verified by the
commissioner based on reports of enrollment for the current year as
submitted to the commissioner, by the amount of the apportionment
selected pursuant to clause (i) of paragraph a of subdivision twelve of
this section, provided that for aid payable in the two thousand two--two
thousand three school year, the actual excess shall be multiplied by the
amount of the apportionment that would have been selected pursuant to
clause (i) of paragraph a of subdivision twelve of this section if aid
were payable pursuant to such clause in the current year.

14. Limitations on the apportionment. The apportionment to any school
district during any school year shall be subject to the following
provisions:
a. District subject to reorganization. (1) No apportionments pursuant
to subdivision six of this section shall be paid to any school district
which is scheduled for reorganization pursuant to the state plan for
school district reorganization, unless there shall have been compliance
with this paragraph.
(2) In order to obtain an apportionment under subdivision six of this
section for a district scheduled for reorganization and not reorganized,
such district shall file with the commissioner a formal written
application therefor, (a) showing (i) inadequacy or obsolescence of
present facilities, and (ii) that such construction for which such
apportionment is sought would be capable of substantial educational use
by the reorganized district in case the reorganization under the
existing plan of reorganization is effected, and that it will provide
more efficient and more economical educational facilities for such
reorganized district in the best educational interests of the children
in the reorganized school district or (b) showing that such district has
adopted a resolution or resolutions in accordance with sections eighteen
hundred one through eighteen hundred three of this chapter in favor of
such reorganization and is being prevented from reorganizing by the
action of another district which is part of the same plan of
reorganization. The commissioner shall within ninety days grant such
apportionment or deny such apportionment with leave to the district to
petition for a formal hearing. Such hearing shall be held pursuant to
the procedures provided in subdivision three of section three hundred
fourteen of this chapter.
(3) (a) Within sixty days after such hearing is concluded and all
papers in relation thereto are submitted, the commissioner shall render
a preliminary finding recommending whether a change is warranted,
setting forth his findings and conclusions which shall be based
exclusively on the evidence presented at the hearing. The commissioner
shall recommend the amendment or confirmation of the state plan in
accordance with his preliminary finding by a report made by him and
entered in his office. The commissioner shall serve a copy of such
preliminary finding upon the clerk or in the event that there is no
clerk, the trustee or trustees of the school districts located in the
affected area or areas. In the event that such districts do not agree
with such preliminary findings, the school districts affected by the
terms of such preliminary finding may within thirty days apply to the
chancellor of the board of regents for the appointment of a committee of
the regents to review the proposed amendment or confirmation of the
state plan. In the event that an application to the chancellor is not
made within thirty days for the appointment of a committee of the
regents, the preliminary finding shall become an order without further
action of the commissioner.
(b) Upon receipt of such application, the chancellor shall appoint a
committee of three members of the regents, one of whom shall be a regent
whose judicial district includes all or part of the areas affected. The
committee of regents shall review the proposed amendment or confirmation
of the state plan. In the event the committee is unable to resolve the
differences between the commissioner and such school districts, it shall
within sixty days from the date of the appointment of such committee,
make an order reversing, affirming, or modifying, wholly or in part,
such preliminary finding of the commissioner and amending or confirming
the state plan setting forth the committee's findings and conclusions
which shall be based exclusively on the evidence presented at the
commissioner's hearing and any additional evidence presented at the
committee's review. The committee shall have the discretion to permit
additional evidence to be presented by any party. The commissioner shall
serve a copy of such order upon the clerk or in the event there is no
clerk, the trustee or trustees of the school districts located in the
affected area or areas.
(c) Such order of the committee of the regents shall be binding and
final and subject to review pursuant to article seventy-eight of the
civil practice law and rules. The scope of review shall include the
question whether the determination is on the entire record supported by
substantial evidence.
(d) The commissioner shall establish and promulgate rules of practice
and procedures in connection with such hearings, shall provide for the
attendance of the hearing officer, regulate the course of the hearing,
fix the time for filing of briefs and other documents, provide a hearing
stenographer and for the making of a record as well as the making of a
full transcript of all proceedings at the hearing and shall at the
request of any party, school district or interested person have prepared
and furnish a copy of the transcript or any party thereof upon payment
of the costs therefor.
(e) School districts designated in the established plan by an order of
the committee of the regents shall be made parties by the petitioning
district. Districts which may be affected by the proposed change may
join or be joined in such proceeding by the commissioner or any party.
(4) Notwithstanding the provisions of subparagraphs one through three
of this paragraph, any such district which has qualified for an
apportionment for school building purposes, under laws in effect prior
to the date this act takes effect, shall receive an apportionment under
subdivision six of this section; and provided, further, that no new
apportionment shall be paid and the commissioner shall not approve any
new expenditures for school building purposes in any such district after
such date, except where the commissioner has made a determination as
herein provided.
(5) Nothing herein provided shall prevent a school district which has
heretofore been denied an apportionment subsequent to July first,
nineteen hundred sixty-two from making an application hereunder, except
that any such apportionment which may be granted shall not be
retroactive beyond July first, nineteen hundred sixty-two.
c. Incentive building aid for reorganized districts. (1)
Notwithstanding the provisions of this section, whenever two or more
school districts are scheduled for reorganization pursuant to section
three hundred fourteen of this chapter and whenever after July first,
nineteen hundred sixty-five all such school districts so scheduled do
reorganize, and
(i) whenever such proposed reorganization includes at least two school
districts, each of which maintains its own high school, or
(ii) where such proposed reorganization includes only one school
district maintaining its own high school, whenever in such case such
proposed reorganization, in addition to such school district maintaining
its own high school, includes at least nine other school districts, or
(iii) whenever such proposed reorganization includes at least two
central school districts, or
(iv) where such proposed reorganization includes at least one school
district maintaining its own high school and, in addition thereto,
includes at least one school district employing eight or more teachers,
or
(v) where such proposed reorganization includes a city school
district, and in addition thereto, includes at least seven other school
districts, or
(vi) where such proposed reorganization includes at least two school
districts employing eight or more teachers forming a central high school
district pursuant to section nineteen hundred thirteen of this chapter,
beginning with July first, nineteen hundred sixty-five or the first
school year of operation as a reorganized district after such date, such
reorganized school district shall be entitled to an additional
apportionment of twenty-five per centum of the sum of: (A) its
apportionment as provided in subdivision six of this section whenever
such apportionment is computed on the basis of its approved base year
expenditures for capital outlay from its general, capital, or a reserve
fund incurred prior to July first, two thousand one, or on the basis of
its approved base year expenditures for capital outlay from its general,
capital or a reserve fund incurred in the two thousand one--two thousand
two school year and computed pursuant to subdivision six of this section
as if such expenditures were aidable under such subdivision, and current
year approved expenditures for debt service for school building purposes
and (B) its apportionment as provided in subdivision six of this
section, the general contracts for which shall have been awarded on or
after the date this act takes effect and prior to July first, two
thousand six or within ten years from the effective date of
reorganization, whichever is later as provided in subdivision six of
this section, and which said sum shall be payable for and during the
terms of any indebtedness created for the purpose of financing such
construction or other facility as aforesaid, provided however, that in
no event may the total apportionment under this paragraph, under
subdivision twelve of section thirty-six hundred forty-one of this
article, and under subdivisions six and six-f of this section for any
project exceed the product of (1) ninety-eight percent for a high need
school district, as defined pursuant to guidelines of the commissioner
for the two thousand five--two thousand six school year, 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 ninety-five per
cent for any other school building project or school district,
multiplied by (2) the sum of the base year approved expenditures for
capital outlay for school building purposes from the general fund,
capital fund or from a reserve fund, and current year approved
expenditures for debt service for such purposes for such project.
(2) Notwithstanding any provisions of this paragraph and paragraph d
of this subdivision to the contrary, the commissioner is hereby
authorized, in addition to any other state aid apportionments to which
such district may be entitled under the provisions of this chapter, to
make the additional reorganization incentive aid payments provided by
such paragraphs, in the amounts, and in the manner provided therein, to
central school district number one of the towns of Brookhaven and
Smithtown, Suffolk county, as if such newly reorganized district were
included in the various categories of reorganization referred to in such
paragraphs.
(4) In the event a school district is eligible for incentive building
aid and again reorganizes pursuant to a new plan of reorganization
established by the commissioner, and where such new reorganization shall
again become eligible for incentive building aid, no project of such
district shall be entitled to more than one such additional twenty-five
percent apportionment. The latest date provided in this paragraph for
the awarding of general contracts shall also apply to any school
district subject to chapter five hundred eighty-eight of the laws of
nineteen hundred sixty-six as amended, notwithstanding such date
provided in such chapter.
d. Incentive operating aid for reorganized districts. Notwithstanding
the provisions of paragraphs a through c of this subdivision, whenever
two or more school districts are scheduled for reorganization pursuant
to section three hundred fourteen of this chapter, and whenever after
July first, nineteen hundred sixty-five, all such school districts so
scheduled do reorganize in accordance with the provisions of such
section three hundred fourteen as amended by chapter seven hundred
forty-five of the laws of nineteen hundred sixty-five, and (1) whenever
such proposed reorganization includes at least two school districts,
each of which maintains its own high school, or (2) where such proposed
reorganization includes only one school district maintaining its own
high school, whenever in such case such proposed reorganization, in
addition to such school district maintaining its own high school,
includes at least nine other school districts, or (3) whenever such
proposed reorganization includes at least two central school districts,
or (4) where such proposed reorganization includes at least one school
district maintaining its own high school and, in addition thereto,
includes at least one school district employing eight or more teachers,
or (5) where such proposed reorganization includes a city school
district, and in addition thereto, includes at least seven other school
districts, or (6) where such reorganization includes at least two school
districts employing eight or more teachers forming a central high school
district pursuant to section nineteen hundred thirteen of this chapter,
such reorganized district shall be entitled to an apportionment equal to
an additional percent of the apportionment computed in accordance with
the provisions of subparagraph (i) of paragraph a of subdivision twelve
of this section; but in no case shall the sum of such apportionment
under this paragraph plus the apportionment under subparagraph (i) of
paragraph a of subdivision twelve of this section be more than a total
of ninety-five per centum of the year prior to the base year approved
operating expense; for a period of five years beginning with the first
school year of operation as a reorganized district such additional
percent shall be ten percent; and thereafter such additional ten percent
apportionment to such district shall be reduced by one percentage point
each year, beginning with the sixth school year of operation as a
reorganized district, and continuing until such additional ten percent
apportionment is eliminated; provided, however, that the total
apportionment to such reorganized district, beginning with the first
school year of operation as a reorganized district, and for a period of
fifteen years thereafter, shall be not less than the sum of all
apportionments computed in accordance with the provisions of this
paragraph, subparagraph (i) of paragraph a of subdivision twelve of this
section and subdivision twelve-b of this section which each component
school district was entitled to receive and did receive during the last
school year preceding such first year of operation. In the event a
school district is eligible for incentive operating aid and again
reorganizes pursuant to a new plan or reorganization established by the
commissioner, and where such new reorganization is again eligible for
incentive operating aid, the newly created school district shall be
entitled to receive incentive operating aid pursuant to the provisions
of this paragraph, based on all school districts included in any such
reorganization, provided, however, that incentive operating aid payments
due because of any such former reorganization shall cease.
e. Building incentive aid for districts which reorganized prior to
July second, nineteen hundred sixty-five. Notwithstanding the provisions
of paragraphs a through d of this subdivision, whenever two or more
school districts were scheduled for reorganization pursuant to section
three hundred fourteen of this chapter and whenever, between July first,
nineteen hundred sixty-two and July second, nineteen hundred sixty-five,
all such school districts so scheduled did reorganize and (1) whenever
such reorganization included at least two school districts, each of
which maintained its own high school, or (2) where such reorganization
included only one school district maintaining its own high school,
whenever in such case such reorganization, in addition to such school
district maintaining its own high school, included at least nine other
school districts, or (3) whenever such reorganization included at least
two central school districts, or (4) where such reorganization included
at least one school district maintaining its own high school and, in
addition thereto, included at least one school district employing eight
or more teachers, or (5) where such reorganization included a city
school district, and in addition thereto, included at least seven other
school districts, the reorganized district, beginning with July first,
nineteen hundred sixty-six, shall be entitled to an additional
apportionment of twenty-five per centum of its apportionment as provided
in subdivision six of this section whenever such apportionment is
computed on the basis of its approved base year expenditures for capital
outlay from its general, capital or reserve fund and current year's
approved expenditures for debt services for school building purposes,
the general contracts for which shall have been awarded after July
first, nineteen hundred sixty-two and prior to July first, nineteen
hundred seventy-two, and which said sum shall be payable for and during
the terms of any indebtedness created for the purpose of financing such
construction or other facility as aforesaid, provided, however, that in
no event may the sum of the building aid apportionment under this
paragraph plus the apportionment under subdivision six for any project
exceed ninety-five per cent of the sum of the base year approved
expenditures for capital outlay for school building purposes from the
general fund, capital fund or from a reserve fund, and current year
approved expenditures for debt service for such purposes for such
project; in the event a school district is eligible for incentive
building aid under this paragraph and again reorganizes pursuant to a
new plan of reorganization established by the commissioner, and where
such new reorganization shall again become eligible for incentive
building aid, no project of such district shall be entitled to more than
one such additional twenty-five percent apportionment; and provided
further that such reorganized district, notwithstanding the provisions
of paragraphs a through d of this subdivision, shall, beginning with
July first, nineteen hundred sixty-six, be entitled to an additional
apportionment equal to ten percent of the apportionment computed
pursuant to subdivision twelve of this section, but in no case shall the
sum of apportionment under this paragraph plus the apportionment under
subdivision twelve of this section exceed ninety-five per centum of the
base year operating expense for a period of five years, beginning with
July first, nineteen hundred sixty-six; and thereafter such additional
ten percent apportionment shall be reduced by one percentage point each
year, until such additional ten percent apportionment is eliminated.
f. For school districts which reorganize on or after July first,
nineteen hundred eighty-three, the percent increase in apportionment
pursuant to paragraph c of this subdivision shall be thirty and the
percent increase in the apportionment pursuant to paragraph d of this
subdivision shall be twenty provided that such school districts meet all
other requirements of the provisions of such paragraph c or d as the
case may be. All other requirements of paragraph c or d or both shall
apply, provided however that such additional twenty percent
apportionment pursuant to paragraph d of this subdivision shall be
reduced by two percentage points each year in lieu of one percentage
point. School districts which receive an apportionment under this
pararaph shall not be eligible for an apportionment under paragraph c, d
or e of this subdivision.
g. Whenever a school district is dissolved and portions of such former
district are added to more than one school district, each such school
district to which territory is added shall in the first year only in
which such district educates pupils from such former district be
entitled to an additional apportionment under the provisions of this
paragraph, which apportionment shall be computed in accordance with
regulations of the commissioner under one of the following
subparagraphs:
(1) the pupils received by each such district as a result of receiving
such new territory shall be added to all of the pupil counts used to
compute operating aid for such district, or
(2) if such receiving district is receiving aid under an option other
than formula aid for such year, the additional aid shall be computed by
dividing the operating aids base for such year by the pupil count used
for computing formula operating aid such district might otherwise have
received, and by multiplying such result by the number of additional
pupils received from such dissolved district who are then residents of
such receiving district.
h. Efficiency study program. (1) Any school district which is eligible
to receive an apportionment under this section or section thirty-six
hundred two-b of this article may submit plans to the commissioner,
jointly with one or more other school districts, directly or through a
district superintendent of schools for the purpose of receiving approval
of a study of reorganization of the district with one or more school
districts, the sharing of programs between such districts and other
school districts or to conduct a district-wide administrative and
operational efficiency study and review for the purpose of identifying
ways in which to improve the delivery of educational services and reduce
district costs.
(2) Efficiency studies may also be conducted pursuant to this
paragraph by a school district, a group of school districts, or to a
board of cooperative educational services for a project in which a
county or other municipality is a partner for the purpose of studying a
collaborative service delivery system for school aged at-risk youth and
their families, including training. The following are also among the
areas for which an efficiency study may be conducted: collaboration with
human services agencies, such as a county department of social services;
consolidation of services in such areas as health, youth or other human
services; transportation; facilities, bidding and purchasing; equipment,
insurance, maintenance and communications.
(3) Plans shall be in the form prescribed by the commissioner and
approved by the commissioner in accordance with regulations adopted for
such purposes.
(4) Notwithstanding any other provision of law, the costs of such
efficiency study shall not be eligible for reimbursement pursuant to
section nineteen hundred fifty of this chapter.
i. Shared services savings incentive. (1) Eligibility. Any school
district or group of school districts and/or boards of cooperative
educational services may apply for a shared services savings incentive
upon demonstrated savings of one hundred thousand dollars to the state
in the current year for shared services activities including projects
undertaken with a county or other municipality or a human services
agency, such as a county department of social services, initiated on or
after July first, nineteen hundred ninety-six pursuant to any provisions
of this chapter and in accordance with this paragraph. No district or
group of districts or boards of cooperative educational services shall
be eligible for more than one such incentive in any school year; not
including collaborative projects undertaken with a county or other
municipality or a human services agency, such as a county department of
social services.
(2) Application. To be considered for a shared services savings
incentive, the partners in each consortium shall, by mutual consent,
designate a lead school district or board of cooperative educational
services partner in such shared services consortium. The designated lead
school district or board of cooperative educational services shall then
submit an application to the commissioner in a form prescribed by the
commissioner. Such application shall provide an assurance that the
shared service plan shall remain in effect for a sufficient period of
time to generate at least a two hundred thousand dollar savings to the
state under provisions of this chapter, shall detail the shared service
plan, including any contracts, and document the accrued one hundred
thousand dollar savings based upon the applicable provisions of this
chapter. Such documentation of the savings to the state shall include,
but need not be limited to, baseline data on the cost of the service to
the consortium for the year prior to the base year and the base year and
the corresponding state aid paid in the base year and the state aid that
would have been paid in the current year in the absence of sharing.
(3) Incentive amount. Each shared services savings incentive shall
equal fifty percent of the demonstrated savings per year in every year
that the school district or board of cooperative educational services
can demonstrate a savings to the state of at least one hundred thousand
dollars for a maximum of five years and shall be prorated among any
consortium partners in accordance with the amount of savings
attributable to such partner pursuant to the applicable provisions of
this chapter.
(4) Notwithstanding the provisions of section thirty-six hundred
nine-a of this chapter. Incentive amounts paid pursuant to this
paragraph shall be made upon approval of the commissioner, subject to an
expenditure plan approved by the director of the budget.
j. (1) For school districts which reorganize on or after July first,
nineteen hundred ninety-two, the percent increase in apportionment
pursuant to paragraph c of this subdivision shall be thirty and the
percent increase in the apportionment pursuant to paragraph d of this
subdivision shall be forty provided that such school districts meet all
other requirements of the provisions of such paragraph c or d as the
case may be. All other requirements of paragraph c or d or both shall
apply, provided however that such additional forty percent apportionment
pursuant to paragraph d of this subdivision shall be reduced by four
percentage points each year in lieu of one percentage point. School
districts which receive an apportionment under this paragraph shall not
be eligible for an apportionment under paragraph c, d, e or f of this
subdivision and provided further that central high school districts
qualifying for incentive building aid for reorganized districts pursuant
to paragraph b of this subdivision shall only receive such incentive
building aid for approved expenses related to the construction of
secondary school facilities of the newly formed central high school
district during the period commencing with the effective date of such
reorganization through the four year period commencing July first of the
school year in which the central high school district's new secondary
school facility is completed and is first used for the instruction of
pupils unless the central high school district and any school districts
which are included within such central high school district reorganize
pursuant to this chapter as a single central school district within such
four year period commencing July first of the school year in which the
central high school district's new secondary school facility is
completed and is first used for the instruction of pupils of the central
high school district and provided further that central high school
districts qualifying for incentive operating aid for reorganized
districts pursuant to paragraph b of this subdivision shall receive such
apportionment based on the apportionment computed only for such newly
formed central high school district pursuant to subparagraph (i) of
paragraph a of subdivision twelve of this section and this paragraph;
and only during the period commencing with the effective date of such
reorganization through the four year period commencing July first of the
school year in which the central high school district's new secondary
school facility is completed and is first used for the instruction of
pupils unless the central high school district and any school districts
which are included within such central high school district reorganize
pursuant to this chapter as a single central school district within such
four year period commencing July first of the school year in which the
central high school district's new secondary school facility is
completed and is first used for the instruction of pupils of the central
high school district, but in no case shall the sum of such apportionment
of incentive operating aid under this paragraph plus the apportionment
payable to the central high school district under subparagraph (i) of
paragraph a of subdivision twelve of this section for the first year of
such reorganization be more than a total of ninety-five per centum of
the sum of the base year operating expense of the reorganized districts,
or for the subsequent years of such reorganization be more than a total
of ninety-five per centum of the base year operating expense of the
central high school district or such subsequently reorganized central
school district.
(2) Any central high school district created on or after July first,
nineteen hundred ninety-eight, that does not reorganize with all school
districts included within such central high school district pursuant to
this chapter as a single central school district within four years of
July first of the school year in which the central high school
district's new secondary school facility is completed and is first used
for the instruction of pupils of the central high school district shall
have its apportionments payable pursuant to this section reduced by
one-sixth of the amount of such total apportionments previously paid
pursuant to this paragraph during each of the six years immediately
following the end of the fourth year following the completion of such
new secondary school facility.

15. Borough aid. a. For the purposes of paragraphs b and c of
subdivision twelve of this section, the city school district of the city
of New York may use either the total aidable pupil units or the total
wealth pupil units of such city school district computed in accordance
with the provisions of this section or as though each such borough were
a separate city school district. All pupils attending schools in a
borough shall be deemed to reside in such borough.
b. In computing general operating aid to the city school district of
the city of New York, such district may elect to receive such aid
computed on a city-wide basis; or such city school district may compute
an apportionment for each borough as if it were a separate city school
district, provided, however, that for the calculation of aid pursuant to
subparagraph (i) of paragraph a, and paragraphs b and c of subdivision
twelve of this section, the district shall compute for each borough an
adjusted pupil wealth ratio and an adjusted combined wealth ratio using
adjusted actual valuation, as provided in this paragraph to calculate an
adjusted operating aid ratio in accordance with this paragraph, provided
however, that in all such computations and the computation of the
alternate pupil wealth ratio for such purpose, each calculation shall be
carried to five decimal places without rounding. Notwithstanding the
provisions of this subdivision, the combined wealth ratio of the city
school district as a whole shall be used for the calculation of the
formula operating aid ceiling for the purposes of subdivision twelve of
this section. Adjusted actual valuation of the borough shall mean the
actual valuation as defined in subdivision one of this section minus the
assignable excess actual valuation plus the actual valuation adjustment.
For the purpose of calculating adjusted actual valuation:
(1) The combined wealth ratio deduct shall mean the quotient of one
divided by sixty-four hundredths, as defined in subdivision three of
this section, computed to three decimals rounded.
(2) Excess combined wealth ratio shall mean the positive remainder of
the combined wealth ratio of the borough minus the combined wealth ratio
deduct.
(3) Excess actual valuation shall mean the product of the statewide
average actual valuation per total wealth pupil unit multiplied by the
excess combined wealth ratio of the borough multiplied by the total
wealth pupil units of the borough expressed as an integer without
rounding.
(4) Assignable excess actual valuation shall mean the excess actual
valuation of the borough multiplied by one-thousandth of one percent
expressed as an integer without rounding.
(5) Proration decimal shall mean the quotient of the total wealth
pupil units of each borough to the sum of the total wealth pupil units
of all of the boroughs, computed to five decimals without rounding.
(6) Actual valuation adjustment shall mean the product of the
proration decimal of the borough and the sum of the assignable actual
valuation of all of the boroughs expressed as an integer without
rounding.
(7) Computation of the adjusted operating aid ratio. The adjusted
operating aid ratio shall be computed by subtracting from one the
product computed to five decimals without rounding obtained by
multiplying the adjusted combined wealth ratio by sixty-four hundredths.
Such result shall be expressed as a decimal carried to five places
without rounding, but shall not be greater than eighty-eight hundredths
nor less than zero.
c. If aid is paid on a borough basis, such city school district shall
file with respect to each borough, all reports required by the
commissioner. The amount included in such reports relating to operating
expense and including general overhead and administration in each
borough shall be such proportion of the amount expended from general
overhead and administration for the entire city-wide school district as
the total aidable pupil units of such borough bears to the sum of the
total aidable pupil units for all boroughs provided, however that the
expense per pupil for each borough shall be deemed to be the average
expense per pupil of the entire city school district.
d. Notwithstanding any inconsistent provisions of this article, if
such city school district elected to receive operating aid payable in
the two thousand--two thousand one school year under the provisions of
this subdivision, approved transportation expense for public service
transportation for transportation aid payable in the two thousand
four--two thousand five school year shall not include any expenditures
to the New York City Metropolitan Transportation Authority for public
service transportation during the two thousand three--two thousand four
school year nor shall such expense be included in approved operating
expense.

16. Tax adjustment aids. a. Definitions. (1) "Tax effort ratio" shall
mean the quotient of the district's residential real property tax levy
divided by the district's adjusted gross income computed to five
decimals without rounding.
(2) "Tax effort factor" shall mean the number computed to three
decimals rounded when three hundredths is subtracted from the lesser of
the district's tax effort ratio or seven hundredths and the difference
is divided by four hundredths, but the result shall not be greater than
one or less than zero.
(3) "Residential real property tax levy" shall mean the school tax
levy imposed on residential property, including condominium properties,
in the year commencing in the calendar year two years prior to the
calendar year in which the base year began. The final update of such
data shall be reported by the state division of equalization and
assessment to the commissioner by February fifteenth of the base year.
The state board of equalization and assessment shall adopt regulations
as appropriate to assure the appropriate collection, classification and
reporting of such data for the purposes of paying state aid to the
schools.
(4) "Tax yield per pupil" shall mean the product computed to two
decimals without rounding of (i) nineteen dollars and fifty cents and
(ii) the quotient of the district's actual valuation per total wealth
pupil unit, calculated pursuant to paragraph i of subdivision one of
this section, divided by one thousand.
(5) "Expense per pupil in excess of operating aid" shall mean the
positive remainder resulting when (i) the quotient of the aid paid
pursuant to subparagraph (i) of paragraph a of subdivision twelve or
subdivision fifteen of this section, divided by the pupils used to
compute such aid, is subtracted from (ii) the lesser of eight thousand
dollars or the expense per pupil as defined in subdivision one of this
section.
(6) "Total aidable pupil units for tax aid". Total aidable pupil units
for the purposes of this subdivision shall be equal to total aidable
pupil units for operating aid purposes as defined in subdivision eight
of this section, provided that such total aidable pupil units of a
component district of a central high school district shall include all
pupils residing in such district and attending the central high school
and provided further that such total aidable pupil units for tax aid for
such central high school district shall equal zero.
b. Tax equalization aid. In addition to any other apportionment
pursuant to this chapter, a school district shall be eligible for an
apportionment for tax equalization under the provisions of this
paragraph. Such apportionment shall equal the product of the total
aidable pupil units for tax aid and the positive remainder of the
district's expense per pupil in excess of operating and growth aid minus
the district's tax yield per pupil.
c. Tax effort aid. In addition to any other apportionment pursuant to
this chapter, a school district with a pupil wealth ratio, as defined in
subdivision one of this section, below two shall be eligible for an
apportionment for tax effort under the provisions of this paragraph.
Such apportionment shall equal the product of the total aidable pupil
units for tax aid and nine hundred twelve dollars and forty-eight cents
and the tax effort factor.
d. For the school year commencing July first, nineteen hundred eighty
and thereafter, any school district which maintained a home school for
grades kindergarten through eight during the school year nineteen
hundred seventy-nine--nineteen hundred eighty, which had indicated to
the commissioner that it was willing to reorganize, prior to such year
although no district had been willing to join in reorganization with
such district and which had a tax rate for high tax aid purposes during
the school year nineteen hundred seventy-nine--eighty under the
provisions of former subdivision sixteen of this section and which was
above the ninetieth percentile for tax rates of all school districts in
this state, shall, notwithstanding the provisions of this subdivision,
be entitled to receive an additional tax adjustment aid in each school
year commencing in nineteen hundred ninety-four--ninety-five and
thereafter pursuant to this paragraph, and any second school district
which had such tax rate above the ninetieth percentile for aid payable
in the nineteen hundred eighty-nine--ninety school year and which is
contiguous to such entitled district and which had expressed to the
commissioner as of July first, nineteen hundred eighty-nine a
willingness to consolidate with such entitled district shall,
notwithstanding the provisions of this subdivision, also be entitled to
receive an additional tax adjustment aid in each school year commencing
in nineteen hundred ninety-four--ninety-five and thereafter pursuant to
this paragraph. Aid for each such school district pursuant to this
paragraph shall be computed by multiplying the district's total aidable
pupil units for operating aid purposes by three hundred sixty-five
dollars. Aid paid under this paragraph will be part of the base used to
compute transition adjustment under the provisions of subdivision
eighteen of this section.

17. Special services aid for large city school districts and other
school districts which were not components of a board of cooperative
educational services in the base year. a. The city school districts of
those cities having populations in excess of one hundred twenty-five
thousand and any other school district which was not a component of a
board of cooperative educational services in the base year shall be
entitled to an apportionment under the provisions of this section.
b. Aid for career education. There shall be apportioned to such city
school districts and other school districts which were not components of
a board of cooperative educational services in the base year for pupils
in grades ten through twelve in attendance in career education programs
as such programs are defined by the commissioner, subject for the
purposes of this paragraph to the approval of the director of the
budget, an amount for each such pupil to be computed by multiplying the
career education aid ratio by three thousand seven hundred twenty
dollars. Such aid will be payable for weighted pupils attending career
education programs operated by the school district and for weighted
pupils for whom such school district contracts with boards of
cooperative educational services to attend career education programs
operated by a board of cooperative educational services. Weighted pupils
for the purposes of this paragraph shall mean the sum of the attendance
of students in grades ten through twelve in career education sequences
in trade, industrial, technical, agricultural or health programs plus
the product of sixteen hundredths multiplied by the attendance of
students in grades ten through twelve in career education sequences in
business and marketing as defined by the commissioner in regulations.
The career education aid ratio shall be computed by subtracting from one
the product obtained by multiplying fifty-nine percent by the combined
wealth ratio. This aid ratio shall be expressed as a decimal carried to
three places without rounding, but not less than thirty-six percent.
Any school district that receives aid pursuant to this paragraph shall
be required to use such amount to support career education programs in
the current year.
A board of education which spends less than its local funds as defined
by regulations of the commissioner for career education in the base year
during the current year shall have its apportionment under this
subdivision reduced in an amount equal to such deficiency in the current
or a succeeding school year, provided however that the commissioner may
waive such reduction upon determination that overall expenditures per
pupil in support of career education programs were continued at a level
equal to or greater than the level of such overall expenditures per
pupil in the preceding school year.
c. Computer administration aid for large city school districts and any
other school district which was not a component of a board of
cooperative educational services in the base year. The city school
districts of those cities having populations in excess of one hundred
twenty-five thousand inhabitants and any other school district which was
not a component of a board of cooperative educational services in the
base year shall be eligible for an apportionment in accordance with the
provisions of this subdivision. Such districts shall be entitled to an
additional apportionment computed by multiplying the lesser of (1)
expenses for approved computer services in the base year or (2) the
maximum allowable expense equal to the product of sixty-two dollars and
thirty cents and the enrollment of pupils attending the public schools
of such district in the base year, by the computer expenses aid ratio.
The computer expenses aid ratio shall be computed by subtracting from
one the product obtained by multiplying fifty-one per centum by the
combined wealth ratio. This aid ratio shall be expressed as a decimal
carried to three places without rounding, but shall not be less than
thirty per centum. Expenses for approved computer services in the base
year up to the maximum allowable expense shall not be used to claim aid
pursuant to any other provisions of this section.

18. Transition adjustment.
a. Limit on apportionment. For aid payable in the school year two
thousand--two thousand one, a district may elect to receive the higher
of (1) the current year aids for limiting: the apportionments computed
under clause (i) of paragraph a of subdivision twelve, operating aid and
subdivisions fifteen, borough aid; sixteen, tax adjustment aids; and
eighteen, transition adjustment, of this section or (2) the
comprehensive operating aids base multiplied by one hundred two percent,
provided, however, that such current year aids for limiting shall not
exceed, the greater of (1) one hundred four and twenty-seven hundredths
percent of such comprehensive operating aids base or (2) the sum of the
comprehensive operating aids base and eighteen and one tenth percent of
the positive difference remaining when the comprehensive operating aids
base is subtracted from such current year aids for limiting.
b. If a city school district in a city having a population of more
than one million inhabitants elects to compute aid pursuant to
subdivision fifteen of this section, the provisions of paragraph a of
this subdivision shall be computed using the sum of the aid pursuant to
such subdivision in lieu of the aid pursuant to paragraph b or c of
subdivision twelve of this section in determining the current year aids
for limiting and the comprehensive operating aids base of such city
school district.
c. Any loss in aid due to the maximum increase provision of this
subdivision shall be distributed on a prorata basis by the commissioner,
as necessary for expenditure check purposes, to each individual
apportionment included in the aids subject to such maximum provisions.
The commissioner shall compute and recompute such amount in the normal
course of auditing school district claims for aid.

19. Excess cost aid for pupils with handicapping conditions. 1.
Definitions. For the purpose of this subdivision the following terms
will have these meanings:
a. "Pupils with handicapping conditions" shall mean pupils who are
trainable mentally retarded, educable mentally retarded, visually
impaired, hearing impaired, physically handicapped, speech impaired,
emotionally disturbed, autistic, or learning disabled, as such terms are
defined by the commissioner and who receive special educational services
or attend programs which meet criteria established by the commissioner,
operated by a district or by a board of cooperative educational
services, whether or not the district is a component of such board.
b. "Weighted pupils with handicapping conditions" shall be the
attendance of pupils during the base year in programs approved in
accordance with the provisions of article eighty-nine of this chapter in
public schools and boards of cooperative educational services and shall
be computed as follows:
* (1) The attendance of pupils who have been determined by a committee
on special education either to require placement for sixty per centum or
more of the school day in a special class, or to require home or
hospital instruction for a period of more than sixty days, or to require
special services or programs for more than sixty per centum of the
school day shall be multiplied by a special services weighting. The
special services weighting shall be one and seven-tenths, provided,
however, that solely for the purposes of calculation of an apportionment
pursuant to this subdivision, such special services weighting shall be:
(i) for aid payable in the nineteen hundred ninety-nine--two thousand
and two thousand--two thousand one school years, one and seven-tenths;
(ii) for aid payable in the two thousand one--two thousand two and two
thousand two--two thousand three school years, one and sixty-eight
hundredths;
(iii) for aid payable in the two thousand three--two thousand four and
two thousand four--two thousand five school years, one and sixty-five
hundredths;

* NB Effective until June 30, 2006

* (1) The attendance of pupils who have been determined by a committee
on special education either to require placement for sixty per centum or
more of the school day in a special class, or to require home or
hospital instruction for a period of more than sixty days, or to require
special services or programs for more than sixty per centum of the
school day shall be multiplied by one and seven-tenths;

* NB Effective June 30, 2006

(2) The attendance of pupils who have been determined by a committee
on special education to require placement for: (i) twenty per centum or
more of the school week in a resource room or to require special
services or programs including related services for twenty per centum or
more of the school week, or (ii) in the case of pupils in grades seven
through twelve, the equivalent of five periods per week, but not less
than the equivalent of one hundred eighty minutes in a resource room or
in other special services or programs including related services, or
(iii) in the case of pupils in a multi-level middle school program, as
defined by the commissioner, operating on a period basis, the equivalent
of five periods per week, but not less than the equivalent of one
hundred eighty minutes, in a resource room or in other special services
or programs, including related services, or (iv) in the case of pupils
in grades four through six in an elementary school operating on a period
basis, the equivalent of five periods per week, but not less than the
equivalent of one hundred eighty minutes in a resource room or in other
special services or programs, including related services shall be
multiplied by nine-tenths;
(3) The attendance of pupils who have been determined by a committee
on special education to require direct or indirect consultant teacher
services, in accordance with regulations of the commissioner adopted for
such purpose, shall be multiplied by nine-tenths;
(4) For "weighted pupils with handicapping conditions" attributable to
attendance in the nineteen hundred ninety-four--ninety-five school year,
the attendance of pupils who have been determined by a committee on
special education to require two or more sessions a week, consisting of
at least thirty minutes each, of special instruction either in speech or
in other special programs or services, including related services, shall
be multiplied by thirteen-hundredths.
* (5) Such attendance of pupils with handicapping conditions, as such
term is defined in section forty-four hundred five of this chapter,
shall be computed in accordance with regulations of the commissioner. No
pupil may be counted more than once, except for pupils who are eligible
for the weightings provided pursuant to clause one of this subparagraph
and pursuant to subparagraph b-1 of this paragraph.

* NB Effective until June 30, 2006

* (5) Such attendance of pupils with handicapping conditions, as such
term is defined in section forty-four hundred five of this chapter,
shall be computed in accordance with regulations of the commissioner. No
pupil may be counted more than once.

* NB Effective June 30, 2006

* b-1. "Integrated settings weighted pupils with handicapping
conditions" shall be the product of the attendance in the year prior to
the base year of pupils who have been determined by a committee on
special education to require special services or programs for sixty per
centum or more of the school day pursuant to clause one of subparagraph
b of this paragraph and are provided special services or programs in the
general education setting by qualified personnel, as defined in the
regulations of the commissioner, multiplied by five tenths provided
however, that such weighting shall be used solely for the purposes of
calculation of an apportionment pursuant to this subdivision.

* NB Repealed June 30, 2006

c. Expense per pupil for the purposes of this subdivision shall be not
less than two thousand dollars and not more than the greater of seven
thousand one hundred ten dollars or the statewide average of such
expense per pupil. Such statewide average expense per pupil shall be
computed and rounded to the nearest fifty dollars by the commissioner
using the expense and pupils as estimated by school districts or as
determined by the commissioner for use in determining the expense per
pupil of the district pursuant to subdivision one of this section for
all districts eligible for aid pursuant to this section. For the
purposes of calculating such statewide expense per pupil, the data for
the city school district of the city of New York shall be city-wide
data.
d. "Resident weighted pupils with handicapping conditions" shall mean
weighted pupils with handicapping conditions minus the nonresident
weighted pupils with handicapping conditions plus the resident weighted
pupils with handicapping conditions to whom special services or programs
are provided by another public school district.
2. Excess cost aid ratio. Such ratio shall be computed by subtracting
from one the product obtained by multiplying fifty-one per centum by the
combined wealth ratio. This aid ratio shall be expressed as a decimal
carried to three places without rounding, but not less than twenty-five
percent.
3. Excess cost aid per pupil shall equal the product of the excess
cost aid ratio and the expense per pupil.
4. Excess cost aid shall equal the product of the excess cost aid per
pupil and the resident weighted pupils with handicapping conditions.
* 4-a. Integrated settings excess cost aid shall equal the product of
the excess cost aid per pupil and the integrated settings weighted
pupils with handicapping conditions computed pursuant to subparagraph
b-1 of paragraph one of this subdivision.

* NB Repealed June 30, 2006

5. A school district having a pupil with a handicapping condition for
whom the cost, as approved by the commissioner, of appropriate special
services or programs exceeds the lesser of ten thousand dollars or four
times the expense per pupil without limits shall be entitled to an
additional apportionment for each such child computed by multiplying the
district's excess cost aid ratio by the amount by which such cost
exceeds three times the district's expense per pupil without limits.
6. a. For aid payable in the nineteen hundred ninety-nine--two
thousand and two thousand--two thousand one school years, any school
district may receive the aid computed under paragraphs four, five and
seven of this subdivision in the current year or the public excess cost
aid base.
b. For aid payable in the school year two thousand one--two thousand
two and thereafter, any school district may receive the sum of:
(1) the aid computed under paragraphs four, five and seven of this
subdivision in the current year or the public excess cost aid base, and
(2) the aid computed under paragraph four-a of this subdivision in the
current year.
7. Declassification support services apportionment. a.
Declassification support services shall mean services for teachers and
pupils in the first year that a pupil moves from a special education
program to a full-time regular education program. Services to pupils
shall be provided on a regular basis and may include, but not be limited
to psychological, social work, speech and language services and
noncareer counseling services provided by qualified professional
personnel as defined in regulations of the commissioner. Services for
teachers of such pupils may include the assistance of teacher aides or
consultation with appropriate personnel. When a committee on special
education determines that a pupil no longer needs special education
services and is ready for a full-time regular education program, such
committee shall identify and recommend the appropriate declassification
support services for the first year in the regular education program.
b. In addition to any other apportionment under this section, school
districts shall be eligible for a declassification support services
apportionment in accordance with the provisions of this paragraph. The
declassification support services apportionment shall be equal to fifty
percent of the excess cost aid per pupil multiplied by the number of
such pupils in the base year.
c. Declassification support services shall not be eligible for an
apportionment pursuant to section nineteen hundred fifty of this
chapter.
d. The commissioner shall adopt regulations to implement the
provisions of this paragraph.
8. Notwithstanding section thirty-six hundred nine-a of this chapter,
the apportionment provided for in this subdivision shall be paid
pursuant to section thirty-six hundred nine-b of this chapter.

20. Shared services aid for school districts which are not components
of a board of cooperative educational services supervisory district,
including large city school districts. Commencing with aid payable in
the nineteen hundred ninety-eight--ninety-nine school year, school
districts which are not components of a board of cooperative educational
services supervisory district, including city school districts of those
cities having populations in excess of one hundred twenty-five thousand
inhabitants that participate in, or provide, shared services for the
purpose of instructional support service as authorized by subdivision
eight-c of section nineteen hundred fifty of this chapter shall be
eligible for an additional apportionment in accordance with the
provisions of this paragraph. Within the amount appropriated for such
purpose, such districts shall be entitled to an additional apportionment
for their expenses incurred in the base year from their participation in
or provision of such shared services, in an amount equal to the amount
that would be payable for such expenses if the services were aidable
shared services under subdivision five of section nineteen hundred fifty
of this chapter; provided that in computing such aid for such city
school districts the tax rate shall be determined in the manner
prescribed in subparagraph seven of paragraph a of subdivision
thirty-one-a of this section. Such apportionment shall be paid in
accordance with section thirty-six hundred nine-a of this chapter. In
the event the appropriation for purposes of this subdivision in any year
is insufficient to pay all claims received pursuant to this subdivision,
the commissioner shall determine the percentage of the total claims
submitted that is represented by each district's claim on file with the
commissioner at the time of creation of each data file or fiscal report
required by subdivision twenty-one of section three hundred five of this
chapter and shall pay such claims based on such prorated basis among all
districts filing such claims until the appropriation is exhausted,
provided that such prorated apportionment computed and payable as of
September one of the school year immediately following the school year
for which such aid is claimed shall be deemed final and not subject to
change. For aid payable in the nineteen hundred
ninety-eight--ninety-nine school year, the aid payable pursuant to this
subdivision shall not exceed three million, five hundred thousand
dollars ($3,500,000); for the nineteen hundred ninety-nine--two thousand
school year the aid payable pursuant to this subdivision shall not
exceed ten million dollars ($10,000,000); for the two thousand--two
thousand one school year the aid payable pursuant to this subdivision
shall not exceed fifteen million dollars ($15,000,000); and for the two
thousand one--two thousand two school year and thereafter the aid
payable pursuant to this subdivision shall not exceed twenty-five
million dollars ($25,000,000).

21. Tax limitation aid. a. Definitions. (1) "Residential real property
tax levy per pupil" shall mean the quotient of the district's
residential real property tax levy divided by the district's total
aidable pupil units for tax aid, as both terms are defined in
subdivision sixteen of this section.
(2) "Tax limitation aid ratio" shall mean the difference of one minus
the product, carried to three decimal places without rounding, obtained
by multiplying fifty per centum by the combined wealth ratio, but not
less than zero.
(3) "Total aidable pupil units for tax aid" for the purposes of this
subdivision shall be equal to total aidable pupil units for tax aid as
defined in subdivision sixteen of this section.
(4) "Tax limitation aid per pupil" shall mean the product of (i) the
tax limitation aid ratio and (ii) the product of four hundred
seventy-four ten thousandths and the residential real property tax levy
per pupil.
b. Tax limitation aid. For aid payable in the nineteen hundred
ninety-nine--two thousand school year and thereafter, in addition to any
other apportionment pursuant to this chapter, a school district with (i)
a pupil wealth ratio, as defined in subdivision one of this section,
below one and one-half and (ii) a tax effort ratio, as defined in
subdivision sixteen of this section, greater than thirty-nine
thousandths shall be eligible for an apportionment under the provisions
of this subdivision. Such apportionment shall equal the product of the
total aidable pupil units for tax aid, as defined in subdivision sixteen
of this section, and the tax limitation aid per pupil.
c. (i) Based on data on file with the commissioner on January
fifteenth of the nineteen hundred ninety-nine--two thousand school year,
tax limitation aid shall be adjusted so that each eligible district will
receive the same percent of the lesser of the statewide calculated total
allocation or $25,000,000, as its tax limitation aid calculated pursuant
to paragraph b of this subdivision bears to the statewide calculated
total. Such prorated amounts shall be deemed final and seventy percent
of such prorated amount shall be payable on or before March fifteenth of
such school year and the remaining balance payable after April first of
such school year.
(ii) Based on data on file with the commissioner on January fifteenth
of the two thousand--two thousand one school year, tax limitation aid
shall be adjusted so that each eligible district will receive the same
percent of the lesser of the statewide calculated total allocation or
$30,200,000, as its tax limitation aid calculated pursuant to paragraph
b of this subdivision bears to the statewide calculated total. Such
prorated amounts shall be deemed final and seventy percent of such
prorated amount shall be payable on or before March fifteenth of such
school year and the remaining balance payable after April first of such
school year.
(iii) Based on data on file with the commissioner on January fifteenth
of the two thousand one--two thousand two school year, tax limitation
aid shall be adjusted so that each eligible district will receive the
same percent of the lesser of the statewide calculated total allocation
or $25,000,000, as its tax limitation aid calculated pursuant to
paragraph b of this subdivision bears to the statewide calculated total.
Such prorated amounts shall be deemed final and seventy percent of such
prorated amount shall be payable on or before March fifteenth of such
school year and the remaining balance payable after April first of such
school year.
(iv) Based on data on file with the commissioner on January fifteenth
of the two thousand two--two thousand three school year, tax limitation
aid shall be adjusted so that each eligible district will receive the
same percent of the lesser of the statewide calculated total allocation
or twenty-five million dollars, as its tax limitation aid calculated
pursuant to paragraph b of this subdivision bears to the statewide
calculated total. Such prorated amounts shall be deemed final and
seventy percent of such prorated amount shall be payable on or before
March fifteenth of such school year and the remaining balance payable
after April first of such school year.
(v) Based on data on file with the commissioner on January fifteenth
of the two thousand four--two thousand five school year, tax limitation
aid shall be adjusted so that each eligible district will receive the
same percent of the lesser of the statewide calculated total allocation
or $48,546,455, as its tax limitation aid calculated pursuant to
paragraph b of this subdivision bears to the statewide calculated total.
Such prorated amounts shall be deemed final and seventy percent of such
prorated amount shall be payable on or before March fifteenth of such
school year and the remaining balance payable after April first of such
school year.
(vi) Based on data on file with the commissioner on January fifteenth
of the two thousand three--two thousand four school year, tax limitation
aid amounts shall be deemed final and seventy percent of such amount
shall be payable on or before March fifteenth of such school year and
the remaining balance payable after April first of such school year.
d. The commissioner is hereby authorized to promulgate regulations to
effectuate the purposes of this subdivision.

22. Limited English Proficiency Aid. a. In addition to any other aid
payable under the provisions of this section a school district shall be
eligible to receive aid for conducting 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. Such aid per pupil shall be computed by multiplying
two hundred thirty thousandths by the result obtained when operating aid
payable in the current year pursuant to paragraph b or c of subdivision
twelve of this section is divided by the total aidable pupil units used
to compute such aid, provided that for aid payable in the two thousand
four--two thousand five school year, such aid per pupil shall be
computed by multiplying two hundred ninety-two thousandths by the result
obtained when operating aid which would have been payable in the current
year pursuant to paragraph b or c of subdivision twelve of this section
if aid were payable pursuant to such paragraphs in the current year is
divided by the total aidable pupil units which would have been used to
compute such aid. Such aid per pupil will be multiplied by the number of
pupils participating in such program in the base year provided by the
district either directly or by contract pursuant to section nineteen
hundred fifty of this chapter, computed in accordance with such
regulations.
b. Notwithstanding the requirements of subdivision ten of this
section, if the commissioner finds that a school district, which
operated a limited English proficiency program in the base year, does
not operate an approved program in the current year or operates a
smaller approved program in the current year because there are no pupils
or fewer pupils in the district needing such a program, the commissioner
may determine that the school district shall be entitled to receive such
aid without reduction.
c. Programs for limited English proficient pupils shall not be aidable
pursuant to section nineteen hundred fifty of this chapter.

23. Gifted and Talented Program Aid. In addition to any other aid
computed under the provisions of this section, a school district which
conducts a gifted and talented program in accordance with regulations of
the commissioner adopted for such purpose shall be entitled to an amount
computed by multiplying one hundred ninety-six dollars by three per
centum by the adjusted average daily attendance of such district.

24. Employment Preparation Education Programs. a. School districts and
boards of cooperative educational services (BOCES) providing approved
programs shall be eligible for aid in accordance with the provisions of
this subdivision for the attendance of persons twenty-one years of age
or over who have not received a high school diploma or a high school
equivalency diploma recognized by New York State who attend employment
preparation education programs provided by such school districts or
BOCES, which programs lead to a high school diploma or high school
equivalency diploma as defined in regulations of the commissioner, even
if such persons attend regular day school classes with permission of the
board of education; provided that such programs are provided in
accordance with a plan of service approved by the commissioner in
accordance with the provisions of paragraph f of this subdivision. Such
programs may operate between July first and June thirtieth of a school
year. Whenever a person enrolls in a program approved pursuant to this
subdivision offered by a BOCES or in a school district other than their
district of residence, the program provider shall send a notice of such
enrollment to the persons district of residence, and shall issue a new
notice if such person moves from one district to another. In the event
that the cost of a program approved and provided in accordance with the
provisions of this subdivision exceeds all sources of funds, other than
tax levy revenues, which are available to defray such expenses, the
school district or BOCES providing such program shall determine an
excess cost per contact hour provided during the base year, and then
shall determine the local share of such excess costs for each school
district whose residents were served by such program by multiplying such
base year hours by the excess cost per contact hour, and such local
share shall be a charge against each such district, payable within
forty-five days. Notwithstanding the provisions of section nineteen
hundred fifty of this chapter, a BOCES shall be authorized to provide a
program pursuant to this subdivision in the same manner as a school
district.
a-1. Notwithstanding the provisions of paragraph a of this
subdivision, for aid payable in the school years two thousand--two
thousand one through two thousand five--two thousand six, the
commissioner may set aside an amount not to exceed two million five
hundred thousand dollars from the funds appropriated for purposes of
this subdivision for the purpose of serving persons twenty-one years of
age or older who have not been enrolled in any school for the preceding
school year, including persons who have received a high school diploma
or high school equivalency diploma but fail to demonstrate basic
educational competencies as defined in regulation by the commissioner,
when measured by accepted standardized tests, and who shall be eligible
to attend employment preparation education programs operated pursuant to
this subdivision.
b. Employment preparation education hours. For the purpose of
computing an apportionment under the provisions of this subdivision, the
employment preparation education hours shall be the total hours of
instruction given by a teacher to all students enrolled in such approved
programs between July first and June thirtieth of the current year. For
nontraditional modes of instruction, the commissioner may establish
methods of determining contact hours of instruction to be counted for
state aid purposes in accordance with regulations adopted for such
purpose.
c. Employment preparation education aid ceiling. The employment
preparation education aid ceiling for the purposes of this subdivision
shall be the statewide average expense per pupil, as defined in
subdivision nineteen of this section for aid payable in the current
year, divided by one thousand. Such result shall be computed to two
decimals without rounding.
d. Employment preparation education aid ratio. The employment
preparation education aid ratio for the purposes of this subdivision
shall be determined by subtracting from one the product of the pupil
wealth ratio and forty per centum. The aid ratio shall be expressed as a
decimal to three places without rounding but shall not be less than
forty per centum. In the case of a BOCES, such aid ratio shall be
determined by computing a pupil wealth ratio for the BOCES using the
aggregate actual valuation and total wealth pupil units for all
component districts of such BOCES, but shall not be less than the
greater of forty per centum or the product of eighty-five per centum and
the highest such aid ratio determined for a component school district of
such BOCES.
e. Employment preparation education apportionment. In addition to any
other aid payable under this section, the apportionment pursuant to this
subdivision shall be the product obtained when the employment
preparation education hours are multiplied by the aid per contact hour
which shall equal the product of the employment preparation program aid
ceiling and the employment preparation education aid ratio computed to
two decimals, rounded, as calculated based on data on file with the
commissioner on May fifteenth of the base year. Notwithstanding the
provisions of section thirty-six hundred nine-a of this part, the
payment of such apportionment shall be based upon reports required by
the commissioner for the periods ending December thirty-first, and June
thirtieth of each school year; payments for the first reporting period
shall be made after April first, based on claims on file by March first,
provided that the total of all such payments shall not exceed
twenty-five percent of the amount for such school year, with the
approved amount of such claims reduced on a pro rata basis if necessary;
the remainder of any payments due for the first period plus any payments
due for the rest of the school year shall be paid after October first,
based on claims on file by September fifteenth, provided that the total
of such payments shall not exceed the total amount of ninety-six million
one hundred eighty thousand dollars ($96,180,000) for such school year,
with the approved amount of such claims reduced on a pro rata basis if
necessary, provided, however, that for the nineteen hundred
ninety-five--ninety-six school year such total amount shall not exceed
ninety-four million one hundred eighty thousand dollars ($94,180,000),
and provided further that for the two thousand three--two thousand four
school year such total amount shall not exceed eighty-four million
dollars ($84,000,000) and further provided that the total of such
payment for services provided to persons who received a high school
diploma or a high school equivalency diploma recognized by New York
state shall not exceed the total amount set aside for such purpose
pursuant to paragraph a-one of this subdivision in any such school year,
with the approved amount of such claims reduced on a pro rata basis if
necessary, and provided further that for the two thousand four--two
thousand five school year such total amount shall not exceed ninety
million dollars ($90,000,000) with the approved amount of such claims
reduced on a pro rata basis if necessary, and provided further that for
the two thousand five--two thousand six school year such total amount
shall not exceed ninety-six million dollars ($96,000,000) with the
approved amount of such claims reduced on a pro rata basis if necessary;
and aid paid pursuant to this paragraph shall not be included in the
computation of the district expenditure need as defined in such section
thirty-six hundred nine-a of this part. The employment preparation
education apportionment for the city school district of the city of New
York shall be computed only for the city as a whole.
f. Approved plan of service and program evaluation. All school
districts and BOCES desiring to operate an aidable program pursuant to
this subdivision shall complete a comprehensive plan of service
application, including a budget by program component, together with an
evaluation of the effectiveness of program components offered during the
most recent July first through March thirtieth, if any. Such evaluation
and plan shall be in a form prescribed by the commissioner and shall be
submitted not later than forty-five days after the provisions of this
paragraph shall have become law, and not later than May fifteenth in
subsequent school years. Within forty-five days of such deadline, and
upon evaluation of such applications, the commissioner shall notify
school districts and BOCES of those portions of such plan of service
that will be aidable in the school year ahead after making a
determination that approval of such programs will assure maximum
effectiveness, geographic availability and lack of duplication of such
programs, support for educational initiatives, and compliance with
required program and fiscal reporting requirements. No aid shall be
payable pursuant to this subdivision unless the program is approved by
the commissioner.
g. No school district may receive under the provisions of this
subdivision an amount which when added to all other state and federal
aid received by such school district for the purposes of this
subdivision, including tuition paid to the school district for such
program, exceeds the entire cost of such program in that year.
Notwithstanding any other provision of this section to the contrary, in
the event that the total revenue received exceeds the entire cost of
such program, any state aid payable to the district in the following
year shall be reduced in the amount of such excess.
h. Attendance of students in such approved programs shall not be
included in any other attendance counts of this section and shall not
generate aid under any other provision of this section or under section
nineteen hundred fifty of this chapter.

26. Instructional computer hardware and technology equipment
apportionment. a. In addition to any other apportionment under this
section, a school district shall be eligible for an apportionment under
the provisions of this subdivision for approved expenses for (i) the
purchase or lease of micro and/or mini computer equipment or terminals
for instructional purposes or (ii) technology equipment, as defined in
paragraph b of this subdivision, used for instructional purposes
pursuant to a plan developed by the district which demonstrates to the
satisfaction of the commissioner that the instructional computer
hardware needs of the district's students have been adequately met, or
(iii) for the repair of such equipment and training and staff
development for instructional purposes as provided hereinafter. The
apportionment shall equal the lesser of such approved expense or, the
product of (i) the technology factor, (ii) the total aidable pupil units
for operating aid, and (iii) the building aid ratio. For aid payable in
the nineteen hundred ninety-seven--ninety-eight and nineteen hundred
ninety-eight--ninety-nine school years, the technology factor shall be
ten dollars and sixty-one cents; for aid payable in the nineteen hundred
ninety-nine--two thousand school year, the technology factor shall be
twelve dollars and seventy cents; for aid payable in the two
thousand--two thousand one school year, the technology factor shall be
nineteen dollars and twenty-five cents; for aid payable in the two
thousand one--two thousand two school year, the technology factor shall
be thirty-two dollars and thirty-five cents; for aid payable in the two
thousand two--two thousand three school year and thereafter, the
technology factor shall be nineteen dollars and twenty-five cents. A
school district may use up to twenty percent of the product of (i) the
technology factor, (ii) the total aidable pupil units for operating aid,
and (iii) the building aid ratio for the repair of instructional
computer hardware and technology equipment and training and staff
development for instructional purposes pursuant to a plan submitted to
the commissioner.
b. "Technology equipment", for the purposes of this article, shall
mean equipment with a useful life used in conjunction with or in support
of educational programs including but not limited to video, solar
energy, robotic, satellite, laser and such other equipment as the
commissioner shall approve provided that expenses for the purchase or
lease of such equipment shall not be eligible for aid under any other
provisions of this chapter.

26-a. Aid for instructional computer technology expenses. a.
Commencing with aid payable in the nineteen hundred
ninety-eight--ninety-nine school year, the commissioner is hereby
authorized to apportion to any school district aid pursuant to this
subdivision for its approved expenditures, in excess of base year aid
received pursuant to subdivision twenty-six of this section, for the
purchase, lease-purchase and/or installation of instructional computer
technology equipment, including original purchase, lease-purchase and/or
installation of hardware and vendor-installed software for deployment in
classrooms or school libraries; or for the costs of an extended
maintenance contract for instructional computer technology equipment or
network systems for a term not to exceed the applicable period of
probable usefulness, to the extent such costs would be allowable under a
state contract; provided, however, no expenses eligible for aid pursuant
to subdivision six of this section shall be aidable pursuant to this
subdivision, and provided further, no expenses aided pursuant to this
subdivision shall be eligible for aid pursuant to subdivision twenty-six
of this section or section nineteen hundred fifty of this chapter.
b. Aid pursuant to this subdivision shall equal the product of the
district's instructional computer technology aid ratio and approved base
year expenditures for capital outlays and/or current year expenditures
for debt service and/or current year expenditures for lease purchase for
acquisition and installation of instructional computer technology
equipment. Notwithstanding any other provision of law to the contrary,
debt service expenses or obligations due under a lease-purchase
agreement executed in a prior year for instructional computer technology
equipment pursuant to this subdivision shall be ordinary contingent
expenses.
c. The district's instructional computer technology aid ratio shall be
the greater of (i) the district's building aid ratio selected for use in
the current year pursuant to clause (b) of subparagraph two of paragraph
c of subdivision six of this section; or (ii) the district's millage
ratio equal to one minus the quotient expressed as a decimal to three
places without rounding of eight mills divided by the tax rate of the
local district computed upon the actual valuation of taxable property,
as determined pursuant to subdivision one of this section, expressed in
mills to the nearest tenth as determined by the commissioner, provided,
however, that for a city school district in a city having a population
in excess of one hundred twenty-five thousand inhabitants the tax rate
shall be computed in the manner prescribed in subparagraph seven of
paragraph a of subdivision thirty-one-a of this section, and provided
that for a school district which is included within a central high
school district or for a central high school district, such millage
ratio shall equal one minus the quotient expressed as a decimal to three
places without rounding of three mills divided by the tax rates,
expressed in mills to the nearest tenth, of such districts, as
determined by the commissioner; or (iii) thirty-six hundredths. For the
purposes of this paragraph, the tax rate for the central high school
district shall be the amount of tax raised by the common and union free
school districts included within the central high school district for
the support of the central high school district divided by the actual
valuation of the central high school district. The tax rate for each
common or union free school district shall be the amount raised for the
support of such common or union free school district, exclusive of the
amount raised for the central high school district, divided by such
actual valuation of such common or union free school district.
d. To be eligible for aid pursuant to this subdivision, school
districts shall develop and maintain a plan for the use of the
instructional computer technology equipment funded pursuant this
section, which shall be in a form prescribed by the commissioner and
shall include but shall not be limited to provision for maintenance and
repair of equipment and the provision of staff development in the use of
such technology. In addition, such plan may provide for the district's
participation in the universal service discount program pursuant to the
federal telecommunications act of nineteen hundred ninety-six, and the
district's participation in the federal technology literacy challenge
program, where such federal technology programs are available. In
prescribing the format for such plans, the commissioner shall assure
that to the extent possible, districts will be able to develop a single
plan that meets the requirements of this subdivision and such federal
technology programs. In addition, funds apportioned pursuant to this
subdivision shall be used in a manner consistent with the district's
long-range facilities plan and building-level, district-wide, and where
applicable, regional instructional and technology plans.
e. Expenses for instructional computer technology equipment and
software provided through a board of cooperative educational services
pursuant to a multi-year contract entered pursuant to section nineteen
hundred fifty of this chapter shall continue to be aided under
subdivision five of section nineteen hundred fifty of this chapter for
the duration of such contract, and shall be paid in accordance with
applicable provisions of section nineteen hundred fifty of this chapter
and section thirty-six hundred nine-d of this article.
f. In the event the appropriation for purposes of this subdivision in
any year is insufficient to pay all claims received pursuant to this
subdivision, the commissioner shall determine the percentage of the
total claims submitted that is represented by each district's claim on
file with the commissioner at the time of creation of each data file or
fiscal report required by subdivision twenty-one of section three
hundred five of this chapter and shall pay such claims based on such
prorated basis among all districts filing such claims until the
appropriation is exhausted, provided that such prorated apportionment
computed and payable as of September one of the school year immediately
following the school year for which such aid is claimed shall be deemed
final and not subject to change. For aid payable in the nineteen hundred
ninety-eight--ninety-nine school year, the aid payable pursuant to this
subdivision shall not exceed nine million dollars ($9,000,000); for the
nineteen hundred ninety-nine--two thousand school year the aid payable
pursuant to this subdivision shall not exceed twenty-five million
dollars ($25,000,000); for the two thousand--two thousand one school
year the aid payable pursuant to this subdivision shall not exceed
fifty-seven million dollars ($57,000,000); and for the two thousand
one--two thousand two school year and thereafter the aid payable
pursuant to this subdivision shall not exceed ninety-one million dollars
($91,000,000).

31-a. Aid for small city school districts. a. Definitions. (1)
"Operating budget" shall mean the lesser of (i) the total budget of the
school district or (ii) the sum of the base year total general fund
expenses and the allowable increase as determined by the commissioner.
The allowable increase shall be equal to the product of the base year
total general fund expenses and the statewide sixty-fifth percentile
percentage increase in total general fund expenses with adjustments as
determined by the commissioner.
(2) An "eligible school district", for purposes of this subdivision,
shall mean any school district coterminous with or partly within or
wholly within a city having a population of less than one hundred
twenty-five thousand inhabitants according to the most recent available
federal census (hereinafter referred to as a city school district),
which received an apportionment pursuant to this subdivision or
subdivision thirty-one-a of section thirty-six hundred one-a of this
article in the base year.
(3) "State share of district expenditures" shall mean the quotient
computed to four decimals without rounding resulting when the
apportionment pursuant to this subdivision or subdivision thirty-one-a
of section thirty-six hundred one-a of this article in the base year is
divided by the total general fund expense of the school district for
such year provided, however, that such base year total general fund
expense shall be adjusted in accordance with regulations adopted for
such purpose for any year in which the definition of total general fund
expense for the current year has been changed.
(4) "Increase in aid" shall mean the positive remainder resulting when
the total state aid received by the school district in the base year is
subtracted from total state aid payable to the school district in the
current year.
(5) The "full value millage deduct" shall mean the actual valuation,
as defined in subdivision one of this section, divided by one thousand
and multiplied by the district's millage deduct factor and such result
shall be expressed as a whole number without rounding. The millage
deduct factor shall be computed by dividing the statewide average tax
rate by the district's tax rate which result shall be computed to five
decimal places without rounding and shall be multiplied by forty cents
which result shall be computed to three decimal places without rounding.
(6) The "statewide average tax rate" shall mean the number computed to
five decimals without rounding by the commissioner using the revenues or
equivalent thereof as estimated by school districts or as determined by
the commissioner for use in determining the tax rate pursuant to this
subdivision and using the latest single year actual valuation computed
under paragraph c of subdivision one of this section for all districts
eligible for aid pursuant to this section except central high school
districts. For the purposes of calculating such statewide average tax
rate, the data for the city school district of the city of New York
shall be citywide data.
(7) "Tax rate" for the purposes of this subdivision shall be computed
by dividing a school district's total revenues from real property and
non-property tax levies for the base year levied for school purposes
exclusive of library purposes plus any payments in lieu of taxes
received pursuant to section four hundred eighty-five of the real
property tax law and exclusive of any balances in excess of six percent
of general fund expense remaining in the general fund of the district at
the end of the base year, by such district's actual valuation as defined
in subdivision one of this section including any actual valuation
equivalent of payments in lieu of taxes determined pursuant to section
four hundred eighty-five of the real property tax law, provided,
however, that in the instance of a fiscally dependent city school
district, the tax rate shall be computed by dividing (i) such district's
total general fund expenditures, plus interfund transfers outgoing from
the general fund, and plus general fund reserve expenditures, less any
and all general fund nontax revenue of such city school district which
has been paid and identified by an original payer as being specifically
on behalf of such city school district, and less any and all nontax
revenue of the city upon which such city school district is fiscally
dependent which has been paid and identified by an original payer as
being specifically on behalf of such city school district but which has
not been identified as revenue of such city school district, and less
any and all other general fund revenues of such city school district
which are determined by the commissioner to be nontax revenue of the
city upon which such city school district is fiscally dependent, by (ii)
such district's actual valuation as defined in subdivision one of this
section. Revenues raised by a school district in support of a central
high school district shall be included in the revenue of the district
raising such revenue, and no local revenue shall be attributed to such
central high school districts. Such tax rate shall be computed to five
decimals without rounding and shall be multiplied by one thousand to be
expressed in mills.
(8) "Small cities aid base" shall mean the save harmless percent
multiplied by the apportionment received by such school district
pursuant to this subdivision or subdivision thirty-one-a of section
thirty-six hundred one-a of this article in the base year.
(9) "Save harmless percent" shall mean the positive remainder
resulting when the product of two multiplied by the total number of
years on save harmless, pursuant to this subdivision, up to and
including the base year, is subtracted from ninety-eight percent.
(10) The term "on save harmless" shall apply to the selection of aid
pursuant to this paragraph or its predecessor, as determined by the
commissioner, equal to the product of the save harmless percent and the
applicable base year apportionment.
b. Maximum small city transition aid shall equal the product of the
state share of district expenditures multiplied by ninety-eight percent
multiplied by the district's operating budget as defined in this
subdivision.
c. Each eligible school district shall calculate an amount equal to
the positive remainder of (i) the product of the state share multiplied
by the positive remainder resulting when the increase in aid is
subtracted from the district's operating budget minus (ii) the full
value millage deduct.
d. (1) Except as provided herein, in addition to any other moneys made
available under the provisions of this chapter, each city school
district shall be apportioned an amount equal to the greater of the
small cities aid base or the amount calculated pursuant to paragraph c
of this subdivision but, in either case, not greater than the maximum
small city transition aid computed pursuant to paragraph b of this
subdivision; provided however, if the amount calculated pursuant to this
paragraph in any year is less than five thousand dollars, the school
district shall be eligible only for the amount calculated under
paragraph c of this subdivision.
(2) The small cities 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 small cities 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 small cities 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 small cities 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 small
cities 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.
f. (1) Such apportionment shall upon conclusion of the school year for
which the apportionment was made, be audited against the actual
expenditures for such school year and the actual revenues received by
the district to support its general fund expenses for such school year
taking into account the allowable increase. Such apportionment shall be
adjusted according to the findings of the audit. Any overpayment to the
district pursuant to this subdivision shall be recovered from the
district's state aid payable in the following school year.
(2) For the purposes of subparagraph one of this paragraph,
notwithstanding any other provision of law, actual expenditures of the
Lackawanna city school district for the nineteen hundred
eighty-seven--eighty-eight school year shall equal the sum of the total
general fund expenditures, interfund transfers and reserve expenditures
of such school district plus three hundred thousand dollars of monies
transferred to the capital reserve of such school district during the
nineteen hundred eighty-seven--eighty-eight school year which were later
used to pay refunds of real property taxes to the Bethlehem Steel
Corporation in the nineteen hundred eighty-nine--ninety school year, in
which year such expenses shall not be included for the purposes of this
subdivision.
(3) For the purposes of subparagraph one of this paragraph,
notwithstanding any other provision of law, actual expenditures of the
Lackawanna city school district for the nineteen hundred
eighty-eight--eighty-nine school year shall equal the sum of the total
general fund expenditures, interfund transfers and reserve expenditures
of such school district plus three hundred thousand dollars of
undesignated fund balance placed in the tax certiorari reserve of such
school district during the nineteen hundred eighty-eight--eighty-nine
school year which were later used to pay refunds of real property taxes
to the Bethlehem Steel Corporation in the nineteen hundred
eighty-nine--ninety school year, in which year such expenses shall not
be included for the purposes of this subdivision.
g. Notwithstanding any inconsistent provisions of this subdivision, in
a school year in which the maximum increase in the aids subject to
transition pursuant to subdivision eighteen of this section is equal to
zero and for aid payable in the nineteen hundred
ninety-six--ninety-seven school year, the number of years on save
harmless shall not increase and aid payable in the current year shall
equal aid payable in the base year. Notwithstanding the provisions of
this section or of section thirty-four of part B of chapter one hundred
forty-nine of the laws of two thousand one, for aid payable during the
two thousand four--two thousand five school year, aid payable pursuant
to this section shall equal that payable pursuant to this section in the
base year.

32. Educationally related support services apportionment (ERSSA). 1.
Eligible pupils are those pupils as defined by the commissioner who may
benefit from instruction in a regular education program with appropriate
support services, including those (a) who are experiencing difficulty in
maintaining their placement in a program of regular education as
reflected by such pupil's educational performance; (b) who are under
suspension for more than one day pursuant to section thirty-two hundred
fourteen of this chapter or are transferring to the school from a
division for youth facility, who with the provision of services would be
able to maintain their placement in a program of regular education; (c)
with speech impairments of a severity that does not adversely affect the
student's educational performance but does present a barrier to
communication, as defined in regulations of the commissioner; and (d)
who are qualified handicapped persons as defined in the federal
rehabilitation act of nineteen hundred seventy-three, as amended, or who
are students with disabilities as defined in section forty-four hundred
one of this chapter, and whose attendance in the public schools of the
district does not generate excess cost aid pursuant to subdivision
nineteen of this section. Such pupils may receive educationally related
support services in accordance with the provisions of section forty-four
hundred one-a of this chapter or upon the referral of the building
administrator, in consultation with appropriate personnel, or, in the
case of a student with a disability, in accordance with the
recommendations of the committee on special education, or, in the case
of a qualified handicapped person not identified as a student with a
disability, upon recommendation of a group of persons, including persons
knowledgeable about the child, the meaning of the evaluation data and
the placement options. Such educationally related support services shall
be provided on a regular basis and shall be limited to psychological,
social work, speech and language improvement services, curriculum and
instructional modification, direct student support team services and
non-career counseling services and special instruction, either in speech
or in other special programs and services, including related services
but excluding transportation and transition services, for which the
attendance of the pupil does not generate excess cost aid pursuant to
subparagraph one, two, or three of paragraph b of subdivision nineteen
of this section, provided by qualified professional personnel as defined
in regulations. School districts shall, as much as possible, provide
linkages to other school communities and local human service providers,
if available, in order to provide services for students who are
receiving educationally related support services and who would otherwise
be eligible to continue to receive such services on the last day school
is in session.
2. Expenditures for educationally related support services shall be
separate and distinct from expenditures pursuant to paragraph f of
subdivision twelve and subdivision nineteen, both of this section and
shall not generate aid under section nineteen hundred fifty of this
chapter.
3. The educationally related support services apportionment. a.
Maximum apportionment shall be the sum of (i) the product of three
hundred sixty-five dollars, the state sharing ratio for comprehensive
operating aid, but not less than twenty-five hundredths, and nine
percent of the total aidable pupil units for operating aid in the
current school year and (ii) the product of six hundred thirty-five
dollars, the excess cost aid ratio defined in paragraph two of
subdivision nineteen of this section, and the extraordinary needs
adjusted pupil count. The extraordinary needs adjusted pupil count shall
be the product of (i) fifteen percent of the total aidable pupil units
for operating aid in the current school year and (ii) the amount by
which the quotient of the extraordinary needs count divided by the base
year public school enrollment exceeds sixty percent. In the city school
district of the city of New York, all computations shall be on a
city-wide basis. For the purposes of this subparagraph for aid payable
in the two thousand two--two thousand three school year, total aidable
pupil units for operating aid and the state sharing ratio for
comprehensive operating aid shall be calculated as if comprehensive
operating aid were to be calculated pursuant to clause (i) of paragraph
a of subdivision twelve of this section in the current year.
b. Provision of services requirement. Any school district receiving an
apportionment pursuant to this subdivision shall provide for the use of
such apportionment in the manner determined by the commissioner to be
the most educationally advantageous for such pupils; such regulations
shall also include annual district reporting requirements, including a
report of the total hours of educationally related support services
provided from general fund appropriations of the school district during
the base year. If the total hours of educationally related support
services provided from general fund appropriations of the school
district during the base year are less than the total hours of such
services provided during the year prior to the base year, the
apportionment payable in the current year pursuant to this subdivision
shall equal the product of the maximum apportionment computed pursuant
to subparagraph a of this paragraph and the quotient of the total hours
of educationally related support services provided from general fund
appropriations of the school district during the base year divided by
the total hours of such services provided during the year prior to the
base year. If the total hours of educationally related support services
provided from general fund appropriations of the school district during
the base year are equal to or greater than the total hours of such
services provided during the year prior to the base year, the
apportionment payable in the current year pursuant to this subdivision
shall equal the maximum apportionment computed pursuant to subparagraph
a of this paragraph. Aid payable to a school district pursuant to this
subdivision in the nineteen hundred ninety-nine--two thousand school
year and thereafter shall be used to supplement, and not to supplant,
any other funds expended for these purposes. School districts may
contract with boards of cooperative educational services to provide such
services.
c. Services provided pursuant to this subdivision shall not be
eligible for an apportionment pursuant to section nineteen hundred fifty
of this chapter.
4. By February first of the current year, the commissioner shall cause
to be prepared a report on the utilization and effectiveness of
educationally related support services in school districts receiving aid
under this subdivision which shall include but not be limited to a
section on the utilization and effectiveness of all ERSSA services
provided pursuant to this subdivision and the effects on the special
education referral and classification process and shall submit such
report along with appropriate recommendations to the legislature.

35. Youth incarcerated in county correctional facilities
apportionment. a. In addition to any other apportionment under this
section, a school district shall be eligible for an apportionment for
current year educational services provided between July first and June
thirtieth to youth incarcerated in correctional facilities maintained by
a county or the city of New York or in a youth shelter, as defined in
paragraph f of subdivision seven of section thirty-two hundred two of
this chapter, pursuant to subdivision seven of section thirty-two
hundred two of this chapter. Such apportionment shall not exceed the sum
of the following: (i) for programs which operate between September
first and June thirtieth, the product of the district's expense per
pupil and the number of pupils in full-time equivalent attendance as
defined in regulations of the commissioner multiplied by one hundred
twenty-five per centum plus (ii) for programs which operate between July
first and June thirtieth, the product of the district's expense per
pupil and the number of pupils in full-time equivalent attendance,
multiplied by one hundred fifty per centum. Such apportionment shall be
in accordance with regulations promulgated by the commissioner and
approved by the director of the budget and shall be the lesser of the
amount computed pursuant to this paragraph or the actual amount expended
by the district for such approved educational services and approved
administrative costs as reported to the commissioner provided, however,
that the minimum allocation in any school year for a school district
providing educational services to such children shall be fifteen
thousand dollars. The educational costs for these children shall not be
otherwise aidable or reimbursable under any provision of law; provided,
however, that a city school district which operates an academy or an
alternative high school at such a facility, may elect to receive
applicable aid pursuant to other provisions of this section in lieu of
any aid under this subdivision. For aid payable in the nineteen hundred
ninety-four--ninety-five school year and earlier, expense per pupil for
purposes of this subdivision shall mean approved operating expense for
the base year divided by the total aidable pupil units pursuant to
subdivision eight of this section for the base year, and for aid payable
in the nineteen hundred ninety-five--ninety-six school year, expense per
pupil for the purposes of this subdivision shall mean approved operating
expense for the year prior to the base year divided by the total aidable
pupil units pursuant to subdivision eight of this section for the year
prior to the base year.
b. Notwithstanding the provisions of section thirty-six hundred nine-a
of this chapter, the payment of such apportionment shall be based on
reports required by the commissioner for the periods ending November
thirtieth, March thirty-first and June thirtieth of each school year.
For the city school district of the city of New York, computations made
pursuant to this subdivision shall be computed on a city-wide basis.
d. The commissioner shall adopt regulations to implement the
provisions of this subdivision.

36. Voluntary interdistrict urban-suburban transfer program aid. a. A
school district which accepts pupils from another school district in
accordance with a voluntary interdistrict urban-suburban transfer
program designed to reduce racial isolation which is approved by the
commissioner in accordance with regulations adopted by him for such
purpose shall be eligible for aid pursuant to this subdivision.
b. Definitions. (1) "Transfer pupil count" shall mean the public
school district enrollment in the current year through such program.
(2) "Increase in aid" shall mean the positive remainder resulting when
the comprehensive operating aids base is subtracted from the current
year aid for limiting as defined in subparagraph one of paragraph a of
subdivision eighteen of this section, provided, however, that for the
purposes of calculating an apportionment pursuant to this subdivision
for the two thousand three--two thousand four and two thousand four--two
thousand five school years, "increase in aid" shall mean the positive
remainder resulting when an amount equal to the districts' comprehensive
operating aids base as if such comprehensive operating aids base had
been calculated for such year pursuant to paragraph j of subdivision one
of this section is subtracted from the current year aid for limiting as
defined in subparagraph one of paragraph a of subdivision eighteen of
this section.
(3) "Aid paid per pupil" shall mean the aid computed in the current
year pursuant to subdivisions twelve and eighteen of this section
divided by the total aidable pupil units for operating aid, computed
pursuant to subdivision eight of this section.
(4) "Formula pupil margin" shall mean the increase in aid divided by
aid paid per pupil.
(5) "Excess transfer pupils" shall mean the positive remainder
resulting when the formula pupil margin is subtracted from the transfer
pupil count.
(6) "Per pupil aid differential" shall mean the positive remainder
resulting when the aid paid per pupil for such school district is
subtracted from the aid paid per pupil for the transfer pupil's district
of residence.
c. In addition to any other aid computed under this section, such
school district shall be eligible to receive, for each excess transfer
pupil, an amount equal to the greater of the amount per pupil computed
pursuant to paragraph b of subdivision twelve of this section for such
district or the grant per pupil pursuant to paragraph c of such
subdivision.
d. For the purposes of computing transportation aid pursuant to
subdivision seven of this section, the approved cost of the
transportation of pupils in a voluntary interdistrict transfer program
approved by the commissioner shall be used in computing approved
transportation expense.
e. In addition to any other aid computed under this section, such
school district shall be eligible to receive an amount equal to the per
pupil aid differential multiplied by the transfer pupil count.
f. Notwithstanding any inconsistent provisions of this subdivision,
for aid payable in two thousand two--two thousand three a school
district eligible for an apportionment under this subdivision shall be
eligible to receive aid pursuant to this section in an amount equal to
the amount that the district would have received if they operated a
voluntary interdistrict transfer program in the two thousand--two
thousand one school year.

37. Grants for early grade class size reduction. Commencing with aid
payable in the nineteen hundred ninety-nine--two thousand school year,
school districts shall be eligible for class size reduction grants
payable pursuant to this section for the purpose of reducing class size
in grades kindergarten, one, two and three pursuant to the provisions of
this section and in accordance with regulations adopted by the
commissioner for such purpose.
a. Definitions. As used in this subdivision:
(i) "Eligible school district" means a school district eligible for
aid pursuant to this section which had an average class size greater
than twenty in kindergarten and common branch classes for the nineteen
hundred ninety-three--ninety-four school year, as reported by the
commissioner in the school district fiscal profile report released in
May, nineteen hundred ninety-six, and meets the threshold need criterion
for a grant allowance in the current year.
(ii) "Extraordinary needs percent" means the quotient of the
extraordinary needs count divided by the school district's base year
enrollment.
(iii) "Meets the threshold need criterion for a grant allowance" means
exceeding the minimum extraordinary needs percent and is less than the
maximum combined wealth ratio required for a grant for new classrooms in
the current grant year. For grants for the nineteen hundred
ninety-nine--two thousand school year, the minimum extraordinary needs
percent shall be forty percent and the maximum combined wealth ratio
shall be one and one-half; for grants for the two thousand--two thousand
one school year, the minimum extraordinary needs percent shall be
twenty-four and eight-tenths percent and the maximum combined wealth
ratio shall be two; for grants for the two thousand one--two thousand
two school year and thereafter, the minimum extraordinary needs percent
shall be nine and four-tenths percent and the maximum combined wealth
ratio shall be two and one-half.
b. District plan. The trustees or board of education of an eligible
school district seeking to receive funding pursuant to this section for
early grade class reduction shall adopt and submit a written plan to the
department on or before February first, nineteen hundred ninety-nine or,
at the option of the trustees or board of education, on or before March
first during the school year immediately preceding the school year in
which funds provided pursuant to this section will first become
available to the school district, as determined by the commissioner
which:
(i) details how such district will reduce class size in common branch
classrooms in grades kindergarten, one, two and three to an average of
not more than twenty students per class, to the extent the funds
available pursuant to this subdivision are sufficient to meet such goal;
(ii) is school-specific;
(iii) is grade-specific;
(iv) specifies the number of new classrooms to be added and the number
of new classroom teachers to be hired;
(v) gives priority within the plan to schools within the school
district with the greatest need, based on average class size, academic
performance, and, for the two thousand two--two thousand three school
year in the case of a school district with a shortage of classroom
space, space availability;
(vi) details how such district's plan will not adversely impact the
class size of other grades including any proposed use of grant funds,
not to exceed ten percent of the total grant, to ensure reasonable class
size in grades four and above;
(vii) provides a detailed timetable for achieving full compliance with
the district plan for reduced class size; and
(viii) indicates the manner in which the district will use grant
monies received under this section to achieve such class size
reductions. In the case of the city school district of the city of New
York, such district plan shall be submitted on a city-wide basis.
c. Grant awards. Except as otherwise provided in this paragraph,
commencing with aid payable in the nineteen hundred ninety-nine--two
thousand school year, the commissioner shall award grants to eligible
school districts with approved district plans in an amount equal to the
sum of the district's new classroom grant amount computed in accordance
with paragraph f of this subdivision plus the district's continuing
classroom grant amount pursuant to paragraph g of this subdivision
adjusted as required by paragraph h of this subdivision. In the event
the amount appropriated for purposes of this subdivision exceeds the
amount to be awarded, the commissioner shall promulgate regulations for
the allocation of the remaining apportionment. In the event the
appropriation for purposes of this subdivision in any year is less than
the sum of the grants payable to all school districts pursuant to this
subdivision, the commissioner shall adjust the individual school
district allocations to conform to the appropriation. For aid payable in
the nineteen hundred ninety-nine--two thousand school year, the aid
payable pursuant to this subdivision shall not exceed seventy-five
million dollars ($75,000,000); for aid payable in the two thousand--two
thousand one school year, the aid payable pursuant to this subdivision
shall not exceed one hundred forty million dollars ($140,000,000); and
for aid payable in the two thousand one--two thousand two school year
and thereafter, the aid payable pursuant to this subdivision shall not
exceed two hundred twenty-five million dollars ($225,000,000).
d. The basic grant per classroom shall mean the product of: (i) the
median salary of a teacher in the district with five years of experience
in the nineteen hundred ninety-four--ninety-five school year based on
data on file with the commissioner on February first, nineteen hundred
ninety-seven, or thirty-four thousand eighty-nine dollars for any
district without such data on file, and (ii) one and six hundred and
nine ten-thousandths, and (iii) the sum of one plus the district's
computed rate of fringe benefits for the nineteen hundred
ninety-four--ninety-five school year, as determined by the commissioner
based on data on file on February first, nineteen hundred ninety-seven,
with the result rounded to the nearest dollar.
e. New additional classrooms to be funded. (i) For the nineteen
hundred ninety-nine--two thousand school year through the two thousand
one--two thousand two school year, the maximum number of new additional
classrooms to be funded for an eligible school district pursuant to this
subdivision shall equal the product of the phase-in factor and the total
of such classrooms needed. For the nineteen hundred ninety-nine--two
thousand school year, for school districts with a total public school
enrollment in the base year of one million or more, the phase-in factor
shall be eighteen and seven-tenths percent; for school districts with a
total public school enrollment in the base year of twenty thousand or
more and less than one million, the phase-in factor shall be
thirty-three and three-tenths percent; and for school districts with a
total public school enrollment in the base year of less than twenty
thousand, the phase-in factor shall be forty percent. For the two
thousand--two thousand one school year, for school districts with a
total public school enrollment in the base year of one million or more,
the phase-in factor shall be thirty-four and seven-tenths percent; for
school districts with a total public school enrollment in the base year
of twenty thousand or more and less than one million, the phase-in
factor shall be sixty-six and seven-tenths percent; for school districts
with a total public school enrollment in the base year of less than
twenty thousand, the phase-in factor shall be forty percent. For the two
thousand one--two thousand two school year, and thereafter, for school
districts with a total public school enrollment in the base year of one
million or more, the phase-in factor shall be fifty-five and
eight-tenths percent; for school districts with a total public school
enrollment in the base year of twenty thousand or more and less than one
million, the phase-in factor shall be one hundred percent; and for
school districts with a total public school enrollment in the base year
of less than twenty thousand, the phase-in factor shall be forty
percent.
(ii) The total of such classrooms needed shall be based on the public
school enrollment of students attending kindergarten through grade three
in the schools of the district in the fall of nineteen hundred
ninety-five and average class size data respectively for kindergarten
and for common branch classes for the nineteen hundred
ninety-three--ninety-four school year, as reported by the commissioner
in the school district fiscal profile report released in May, nineteen
hundred ninety-six. Such total shall equal the sum of: (1) the positive
remainder of the quotient of the kindergarten enrollment divided by
twenty minus the quotient of such enrollment divided by the average
class size for kindergarten rounded to the nearest whole number; and (2)
the positive remainder of the quotient of the grade one through three
enrollment divided by twenty minus the quotient of such enrollment
divided by the average class size for common branch rounded to the
nearest whole number.
f. New classroom grant amount. Annually, the commissioner shall
determine the new classroom grant amount for an eligible school district
equal to the product of the enhanced first year grant award per
classroom and the lesser of (i) the aggregate number of additional
classrooms to be operating in the current year pursuant to the school
district's plan submitted in accordance with paragraph a of this
subdivision, minus the number of additional classrooms funded pursuant
to this subdivision in the base year or (ii) the new additional
classrooms determined for the current year pursuant to paragraph e of
this subdivision or (iii) the number of new additional classrooms the
district guarantees to open on the first day of session of the current
year. The enhanced first year grant award per classroom shall equal the
sum of the basic grant per classroom and a one time start-up award of
ten thousand dollars for each new classroom.
g. Continuing classroom grant amount. Commencing with the two
thousand--two thousand one school year, and for each school year
thereafter, a school district shall be eligible for a continuing
classroom grant amount in the current year equal to the amount of the
grant received in the base year, exclusive of any start-up funds
provided for such additional classrooms first funded in the base year
except that for aid payable in the two thousand--two thousand one school
year, the continuing classroom grant amount shall include any startup
funds provided for additional classrooms first funded in the base year.
h. Notwithstanding the provisions of paragraphs f and g of this
subdivision, a school district which: (i) spends less in local funds
during the current year than in the base year for the salaries and
benefits of teachers in grades kindergarten through three and has fewer
classrooms for grades kindergarten through three in the current year
than in the base year, and has a higher average class size in the
current year in common branch classrooms in grades kindergarten through
three than it had in the nineteen hundred ninety-eight--ninety-nine
school year; or (ii) spends funds apportioned under this subdivision in
an unauthorized manner, shall have its apportionment reduced in an
amount equal to such deficiency in the current year or in the succeeding
school year, as determined by the commissioner. Local costs incurred in
implementing a district plan pursuant to this subdivision other than
facility costs shall be ordinary contingent expenses.
i. Grant funds awarded pursuant to this subdivision shall be used for
the allowable costs of the district in reducing class size or
maintaining reduced class size, as defined by the commissioner, which
shall include but need not be limited to, salaries and benefits of
additional teachers, costs of supplies and materials, and certain
facilities costs; provided that up to ten percent of the total grant in
any year may be used to ensure reasonable class size in grades four and
above.
j. The commissioner shall promulgate rules and regulations as may be
deemed necessary for the implementation of this section setting forth
the process by which districts may receive initial funding as well as
continued funding pursuant to this section including but not limited to
a transitional process by which a district may achieve a reduction in
class size and compliance in their implementation pursuant to this
section.
k. A school district receiving grant monies under this paragraph shall
file an annual report with the commissioner by October fifteenth, two
thousand and annually thereafter in a form prescribed by the
commissioner. By March first, two thousand one, and each year thereafter
the commissioner shall prepare an annual assessment and review of the
participating districts to determine the effectiveness of the programs
operated by such districts in reducing class size in the early childhood
grades and shall submit such report with recommendations to the
legislature.
l. Notwithstanding the provisions of paragraphs c, f and g of this
subdivision, in the two thousand two--two thousand three through the two
thousand four--two thousand five school years, each school district
shall be eligible to receive the amount such district was eligible for
pursuant to this section in the two thousand--two thousand one school
year.

38. Operating standards aid. a. In addition to any other apportionment
under this section, a school district shall be eligible for an
apportionment under the provisions of this subdivision for its services
and expenses in helping students improve achievement in order to meet
the new high learning standards and assessments established by the board
of regents, in accordance with a district plan designed to assist
students to achieve the new high learning standards through the
provision of direct instructional services to students, the provision of
appropriate professional development services to teachers and through
the development and sharing of innovative educational practices.
b. Operating standards aid. (1) Commencing with aid payable in the
nineteen hundred ninety-eight--ninety-nine school year, school districts
shall be eligible for operating standards aid equal to the product of:
(i) the district's operating standards pupil count; and
(ii) the district's operating standards aid per pupil.
(2) The operating standards pupil count shall equal the product of the
district's total aidable pupil units used to compute comprehensive
operating aid pursuant to subdivision twelve of this section and the sum
of one and, (i) for school districts for which the quotient of the
extraordinary needs count divided by the district's base year public
school enrollment exceeds sixty percent but is less than or equal to
eighty-five percent, twenty-six hundredths, (ii) and for school
districts for which the quotient of the extraordinary needs count
divided by the district's base year public school enrollment exceeds
eighty-five percent, one and sixty hundredths, and (iii) for school
districts in which the percent of graduates who received Regents
diplomas, as defined pursuant to regulations of the commissioner, two
years prior to the base year is greater than the product of one hundred
five percent multiplied by the percent of graduates who received Regents
diplomas three years prior to the base year, two-tenths, provided that
the percent of graduates for a reorganized district attributable to a
school year prior to the reorganization shall be the sum of the percent
of graduates for each former school district whose territory is included
in the reorganized district in the current year, provided that total
aidable pupil units used to compute comprhensive operating aid shall be
calculated as if comprehensive operating aid were to be calculated
pursuant to clause (i) of paragraph a of subdivision twelve of this
section in the current year.
(3) The operating standards aid per pupil shall equal the sum of eight
dollars and fifty cents and the product of sixty-one dollars and fifty
cents and the operating standards aid ratio. The operating standards aid
ratio shall be the remainder obtained when the product of sixty-six
hundredths and operating standards factor is subtracted from one. The
aid ratio shall be expressed as a decimal to three places without
rounding but shall not be less than seventy-eight thousandths. The
operating standards factor shall equal the sum of:
(i) the product of five-tenths and the alternate pupil wealth ratio;
and
(ii) the product of five-tenths and the quotient obtained when the
district's expense per pupil is divided by six thousand fifty-eight.
c. (1) In addition to aid payable pursuant to paragraph b of this
subdivision, in the two thousand two--two thousand three school year
districts for which the combined wealth ratio computed pursuant to
paragraph 1 of subdivision one of this section is less than seven
hundred thousandths will be eligible to receive the greater of:
(i) the product of one hundred seventy-four dollars and eighty cents,
total aidable pupil units for operating aid calculated pursuant to
subdivision eight of this section, and
(ii) a tier two operating standards aid ratio.
(2) The tier two operating standards aid ratio shall be expressed as a
decimal to three places without rounding and shall equal the sum of:
(i) the district's transportation sparsity adjustment as defined in
paragraph a of subdivision seven of this section, and
(ii) the remainder obtained when the combined wealth ratio is
subtracted from one.
d. For aid payable in the two thousand two--two thousand three school
year, any school district may receive the aid computed under paragraphs
b and c of this subdivision or the amount payable pursuant to this
subdivision in the two thousand--two thousand one school year.
e. Powers and duties of the commissioner. The commissioner shall
promulgate any regulations needed to implement the provisions of this
subdivision.

39. Aid for summer school programs. In addition to any other
apportionment under this section, for the two thousand--two thousand one
school year and thereafter, a school district shall be eligible for an
apportionment under the provisions of this subdivision for eligible
summer school programs. Such eligible programs shall be designed to
improve student performance in required academic subjects as defined by
the commissioner, prepare students to retake parts of the Regents
examination pursuant to the commissioner's regulations, and to prepare
students for Regents examinations. Allowable program expenses shall
include transportation, maintenance and operation and personal services.
In addition, in a city school district in a city with a population in
excess of one million inhabitants, funds may be used for summer camps
where students are provided summer school services for at least three
hours per day by a certified teacher at summer camps designated by the
chancellor of the school district.
a. Definitions. As used in this subdivision: (1) "Aidable summer
school pupils" shall mean those summer session pupils as defined in
paragraph g of subdivision one of this section and attending programs
during the months of July and August of the base year that are eligible
summer school programs.
(2) "Summer extraordinary needs concentration factor" shall mean the
sum of one plus the positive quotient of (i) the difference between the
extraordinary needs percent less fifty-eight percent divided by (ii)
forty percent, carried to four decimal places without rounding.
(3) "Summer session index" shall be the product of the state sharing
ratio for comprehensive operating aid and the summer extraordinary needs
concentration factor, carried to three decimal places without rounding,
but shall not be less than forty percent.
(4) "Summer school program aid per pupil" shall be the product of two
hundred dollars and the district's summer session index.
b. The apportionment of aid for eligible summer school programs
pursuant to this subdivision shall equal the product of the number of
aidable summer school pupils and the district's summer school program
aid per pupil.

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