Sam Hoyt (Member, Committee on Children and Families, New York State Assembly ). New York State Assembly. 2005.

A04286 Summary: Requires that the percentage of state aid for education from the general fund be phased in to 35.3% over a period of three years and thereafter maintained

SAME AS    No same as                                                          

                                                                               

SPONSOR    Hoyt                                                                

                                                                               

COSPNSR                                                                        

                                                                               

MLTSPNSR                                                                       

                                                                               

Add S28, St Fin L                                                              

Requires that the percentage of state aid for education (apportionment pursuant

to article 73 of the education law) from the general fund be phased in to 35.3%

over a period of three years and thereafter maintained at no less than that    

level.                                                                         


A04286 Actions:

02/09/2005 referred to education                                               


A04286 Votes:


A04286 Memo:

TITLE  OF BILL:  An act to amend the state finance law, in relation to         

support for apportionment to education from the general fund                   

                                                                               

PURPOSE OR GENERAL IDEA OF BILL:  Requires that the  State  contribute         

35.3%  to  education  from  the  non-lottery  general  fund. The 35.3%         

funding level would be phased in over a three year period and would be         

thereafter maintained at a minimal 35.3% level.                                

                                                                               

SUMMARY OF SPECIFIC PROVISIONS:  Section 1 of the State finance law is         

amended  by  adding  a  new  section  28,  which  adds  the  following         

provisions:                                                                    

                                                                               

*  Beginning  on  State  Fiscal Year (SFY) April 1st of 2003 the State         

shall calculate, over a three year period, the percentage  of  funding         

for  education  made  from  the general fund. During each of the three         

State Fiscal Years (April 1 2003, April 1 2004, and April 1 2005)  the         

funding  percentage  for  education shall be increased in equal annual         

increments until it reaches 35.3% of the general fund.                         

                                                                               

* For all succeeding SFYs, State appropriation to education  from  the         

general revenue fund shall remain at the 35.3% funding level or may be         

increased.  The  State  shall  not  decrease  funding  below the 35.3%         

threshold.                                                                     

                                                                               

JUSTIFICATION:  In 1967, the year prior to the implementation  of  the         

NYS  lottery, New York State contributed 35.3% of general fund revenue         

to education. In 2001, the State`s contribution to education from  the         

non-lottery general fund revenue was 31.8%. If in 2001, New York State         

had  contributed 35.3% of the general fund to education, an additional         

$1.3 billion would have gone to education.  As  the  lottery  proceeds         

have increased, the percentage of New York State`s non lottery general         

fund  revenue  has decreased. Even if the proceeds from the lottery is         

included in the total percentage of state spending on education  (i.e.         

General  fund  plus  lottery  proceeds) it is still less than New York         

State contributed prior to the  lottery.  In  1967,  the  total  state         

spending was 35.3% and in 2001 including the lottery it was 34.1%.             

                                                                               

The  lack  of  adequate  resources within our schools has long been an         

overriding and contributing  factor  in  their  inability  to  address         

ongoing  problems within our educational system. School districts, too         

often have to balance the  needs  of  their  students  with  budgetary         

restrictions. During this balancing act, children more often than not,         

are  left  on  the  losing  end when schools are forced to choose with         

critical  services,  programs,  and  teaching  positions   should   be         

eliminated. Additional funding from the State to education is urgently         

needed  in order to create an educational system that is responsive to         

the educational needs of our children.                                         

                                                                               

This legislation will help alleviate some of the economic burdens  now         

challenging  our school system by requiring the state to make a strong         

commitment to education. Through this strong commitment, we can  begin         

the process of revitalizing and rebuilding our school system. Past and         

present   commitments/programs   such   as   the   rehabilitation  and         

reconstructing  of  existing  educational  facilities,  reduced  class         

sizes,  Universal  Pre-K,  after school programs, Teachers of Tomorrow         

                                                                               

                                                                               

etc...can be strengthened and even expanded if the State were to  make         

a strong commitment to education.                                              

                                                                               

Moreover,  the  legislation will provide property tax relief to school         

districts who must raise property taxes to meet increased  educational         

costs  and  help those who are faced with an ever decreasing tax base.         

With additional funding from the State, there  will  be  fewer  school         

budgets voted down.                                                            

                                                                               

Share of General Fund (GF) & Lottery Spending for Public Schools 1967          

                                  &                                            

                              1995-2001                                        

                                                                               

Fiscal    Total General            General Fund           Lottery School       

 Year     Fund Spending             School Aid                 Aid             

Ending                                                                         

                                                                               

 1967     $3,900,000,000          $1,375,000,000                0              

 1995    $31,698,000,000          $7,672,000,000         $1,162,000,000        

 1996    $30,578,000,000          $8,401,000,000         $1,441,000,000        

 1997    $30,858,000,000          $8,555,000,000         $1,619,000,000        

 1998    $31,737,000,000          $9,051,000,000         $1,595,000,000        

 1999    $33,633,000,000          $9,875,000,000         $1,530,000,000        

 2000    $34,283,000,000         $10,795,000,000         $1,345,000,000        

 2001    $36,840,000,000         $11,711,000,000         $1,393,000,000        

                                                                               

 General Fund                    GF School Aid +       Lottery`s Share         

School Aid as a                Lottery as a % of      of All State Funds       

% of Total GF                    GF & Lottery            School Aid            

                                                                               

     35.3%                         35.3%                    0.0%               

     24.2%                         26.8%                   13.2%               

     27.5%                         30.6%                   14.6%               

     27.7%                         31.2%                   15.9%               

     28.5%                         31.8%                   15.0%               

     29.4%                         32.3%                   13.4%               

     31.5%                         33.9%                   11.1%               

     31.8%                         34.1%                   10.6%               

                                                                               

Source: New York State Annual Financial Report, various years, and the         

Comptroller`s  Annual  Report  to  the Legislature on State Funds Cash         

Basis of Accounting, various years.                                            

                                                                               

Note: Lottery School Aid in 1997, 1998, and  1999  includes  operating         

transfers  from  the  State  General  Fund:  $86  million in 1997, $61         

million in 1998, and $88 million in 1999.                                      

                                                                               

PRIOR LEGISLATIVE HISTORY:                                                     

                                                                               

2002 - A11155 - Referred to Ways and Means                                     

2003-04 - A4916 - Referred to Education                                        

                                                                               

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:  Undetermined.             

                                                                               

EFFECTIVE DATE:   This act shall take  effect  immediately  and  shall         

first apply to the State Fiscal Year (SFY) beginning on April 1, 2003.        

                                                   

                           S T A T E   O F   N E W   Y O R K                   

       ________________________________________________________________________

                                                                               

                                         4286                                  

                                                                               

                              2005-2006 Regular Sessions                       

                                                                               

                                 I N  A S S E M B L Y                          

                                                                               

                                   February 9, 2005                            

                                      ___________                              

                                                                               

       Introduced  by  M. of A. HOYT -- read once and referred to the Committee

         on Education                                                          

                                                                               

       AN ACT to amend the state finance law, in relation to support for appor-

         tionment to education from the general fund                           

                                                                               

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-

       BLY, DO ENACT AS FOLLOWS:                                               

                                                                               

    1    Section 1. The state finance law is amended by adding a new section 28

    2  to read as follows:                                                     

    3    S 28. SUPPORT FOR EDUCATION. 1. FOR PURPOSES OF THIS SECTION, "FUNDING

    4  FOR  EDUCATION"  MEANS THE AMOUNT OF MONIES APPROPRIATED BY THE LEGISLA-

    5  TURE FOR APPORTIONMENT PURSUANT TO ARTICLE SEVENTY-THREE OF  THE  EDUCA-

    6  TION  LAW  FROM  THE  GENERAL  FUND OF THE STATE ESTABLISHED PURSUANT TO

    7  SECTION SEVENTY-TWO OF THIS CHAPTER.                                    

    8    2. COMMENCING WITH THE STATE FISCAL YEAR COMMENCING  ON  APRIL  FIRST,

    9  TWO  THOUSAND  FIVE, THERE SHALL BE CALCULATED THE PERCENTAGE OF FUNDING

   10  FOR EDUCATION MADE FROM THE GENERAL FUND FOR THE  IMMEDIATELY  PRECEDING

   11  STATE  FISCAL YEAR. DURING EACH OF THE THREE STATE FISCAL YEARS COMMENC-

   12  ING ON APRIL FIRST, TWO THOUSAND FIVE, APRIL FIRST,  TWO  THOUSAND  SIX,

   13  AND  APRIL FIRST, TWO THOUSAND SEVEN, SUCH PERCENTAGE SHALL BE INCREASED

   14  IN EQUAL ANNUAL INCREMENTS UNTIL IT REACHES THIRTY-FIVE AND THREE-TENTHS

   15  PERCENT OF THE GENERAL FUND. FOR ALL SUCCEEDING STATE FISCAL YEARS, SUCH

   16  PERCENTAGE MAY REMAIN THE SAME OR  BE  INCREASED,    BUT  SHALL  NOT  BE

   17  DECREASED.                                                              

   18    3.  THE  COMMISSIONER OF EDUCATION SHALL MAKE ANY AND ALL COMPUTATIONS

   19  NECESSARY TO FACILITATE THE IMPLEMENTATION OF  THIS  SECTION  AND  SHALL

   20  PROVIDE  THE RESULTS OF SUCH CALCULATIONS, THE INFORMATION ON WHICH THEY

   21  ARE BASED, AND THE FORMULAE USED THEREIN TO THE GOVERNOR,  THE  LEGISLA-

   22  TURE, AND THE PUBLIC IN A TIMELY MANNER.                                

   23    S  2.  This act shall take effect immediately and shall first apply to

   24  the state fiscal year beginning on April 1, 2005.                       

                                                                               

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                             { } is old law to be omitted.                     

                                                                  LBD06980-01-5

.SO DOC A 4286          *END*                    BTXT                 2005