Steven Sanders (Chair, Committee on Education, New York State Assembly ). New York State Assembly. 2005.

A08700 Summary: Implements the "Schools for New York`s Future Act"; repealer

SAME AS    No same as                                                          

                                                                               

SPONSOR    RULES COM Sanders                                                   

                                                                               

COSPNSR    Benedetto, Benjamin, Boyland, Brennan, Cahill, Canestrari, Carrozza,

           Christensen, Clark, Cohen A, Colton, DelMonte, Destito, Diaz R,     

           Dinowitz, Espaillat, Farrell, Fields, Gantt, Glick, Gottfried,      

           Grannis, Green, Greene, Gunther, Heastie, Hikind, Hooper, Hoyt,     

           Jacobs, John, Lafayette, Lavelle, Lavine, Lentol, Lifton, Lopez,    

           Lupardo, Magee, Magnarelli, Markey, McEneny, Millman, Norman,       

           O`Donnell, Peoples, Peralta, Perry, Pheffer, Powell, Rivera J, River

           N, Rivera P, Seddio, Stringer, Titus, Tonko, Weinstein, Weprin, Wrig

                                                                               

MLTSPNSR                                                                       

                                                                               

Rpld S1608 sub 7  c, S1716 sub 7  c, S3602 sub 1   e, q, s, t, u, v & w, S3602,

sub 2-b, S3602 sub 3   b & c, S3602 subs 8, 9 & 9-a, S3602 sub 10, S3602, sub  

12, S3602 subs 6-d, 12-a, 12-b & 13, S3602 sub 2  g, S3602, sub 15   a, b & c,

S3602, subs 16, 18, 20, 21, 22, 23, 26, 26-a, 31-a, 32, 36, 37, 38 & 39, S3602

sub 19  1 sub  b, b1 & c, S3602 sub 19   3, 4, 4-a, 6 & 7, S3602-e sub 10,     

S3609-c, S3641 sub 1-a, 2, 3, 5, 6, 7, 8, 9 & 10, S4401 sub 6, 7 & 8, S4405 sub

3   a, b, c, & d, amd Ed L, generally; amd S1689-f, Pub Auth L                 

Implements the "Schools for New York`s Future Act"; relates to the calculation

and payment of sound basic education (SBE) state aid; provides for             

accountability in the context of the public education system; implements the   

"building requires immediate capital for kids" (BRICKS) initiative; also       

relates to public school districts and dormitory authority financing of        

eligible school district projects.                                             


A08700 Actions:

06/03/2005 referred to education                                               


A08700 Votes:


A08700 Memo:

TITLE OF BILL:  An act to amend the education law, in relation to imple-       

menting the Schools for New York`s Future Act relating to the calcu-           

lation and payment of sound basic education (SBE) state aid, and provid-       

ing for accountability in the context of the public education system; to       

implement the building requires immediate capital for kids (BRICKS)            

initiative; to amend the public authorities law, in relation to public         

school districts and dormitory authority financing of eligible school          

district projects; and to repeal certain provisions of the education law       

relating to the calculation and payment of various aid programs                

                                                                               

PURPOSE OR GENERAL IDEA OF BILL:                                               

                                                                               

To enact into law the requirements of the decision dated February 14,          

2005, in CFE v. State of New York, (S. Ct., N.Y. Co., DeGrasse, J), and        

the recommendations set forth in the Report and Recommendations of the         

Judicial Referees, dated November 30, 2004, in CFE v. State of New York,       

which are incorporated in that Order; to extend those requirements and         

recommendations to apply not only to students in New York City, but also       

to students throughout the state; and, to enact foundation funding             

reforms and a fair formula for determining the state/local shares of the       

sound basic education                                                          

                                                                               

(SBE) funding requirements that is consistent with the recommendations         

of the Judicial Referees.                                                      

                                                                               

SUMMARY OF SPECIFIC PROVISIONS:                                                

                                                                               

This bill would enact the New York`s Future Act which provides for:            

                                                                               

* An additional $8.6 billion for operating expenses to be provided to          

districts across the state. The bill takes the same funding reforms that       

the court ordered for New York City and applies them to every district         

in New York State.                                                             

                                                                               

* An additional $10 billion for improving capital facilities to relieve        

overcrowding, reduce class sizes, and other maintenance and facilities         

projects. Of this amount, $9.2 billion would be used for projects in New       

York City.                                                                     

                                                                               

* A transparent, simplified foundation formula that consolidates over 30       

existing state aid categories into a single funding stream, providing          

districts with predictability and transparency in the way their schools        

are funded.                                                                    

                                                                               

* A clear, fair formula for determining each district`s State/local            

share that is based on the local district`s ability to pay and its rela-       

tive enrollment of students with high rates of poverty.                        

                                                                               

* An enhanced accountability system that will guarantee that the influx        

of funds is used in ways that actually provide all students a genuine          

opportunity for a sound basic education.                                       

                                                                               

JUSTIFICATION:                                                                 

                                                                               

In November, a panel of judicial referees recommended that the State of        

New York provide New York City schools an additional $5.6 billion for          

operating expenses and $9.2 billion for facilities.  Immediately, CFE          

and a coalition of organizations formed a task force and began drafting        

a bill that would transform the court`s New York City focused order into       

statewide legislation.                                                         

                                                                               

This bill, called The Schools for New York`s Future Act, sets forth a          

forward-looking, simplified education funding system that will deliver         

resources and reforms to every student in New York State.                      

                                                                               

PRIOR LEGISLATIVE HISTORY:                                                     

                                                                               

This is a new bill.                                                            

                                                                               

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:                           

                                                                               

Provides an additional $8.6 billion in operating aid and an additional         

$10 billion in capital funding for school districts.  This bill would          

require a mandatory local contribution on the part of New York City and        

certain other districts that have not been successful in providing their       

students a sound basic education.                                              

                                                                               

EFFECTIVE DATE:                                                                

                                                                               

July 1, 2005, except that sections three and thirty-nine would be effec-       

tive immediate.

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

       ________________________________________________________________________

                                                                               

                                         8700                                  

                                                                               

                              2005-2006 Regular Sessions                       

                                                                               

                                 I N  A S S E M B L Y                          

                                                                               

                                     June 3, 2005                              

                                      ___________                              

                                                                               

       Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Sanders,

         Benedetto, Benjamin, Boyland, Brennan, Cahill,  Canestrari,  Carrozza,

         Christensen,  Clark,  A. Cohen,  Colton,  DelMonte,  Destito, R. Diaz,

         Dinowitz, Espaillat, Farrell, Fields, Gantt, Glick,  Gottfried,  Gran-

         nis,  Green,  Greene,  Gunther, Heastie, Hikind, Hooper, Hoyt, Jacobs,

         John, Lafayette, Lavelle,  Lavine,  Lentol,  Lifton,  Lopez,  Lupardo,

         Magee,   Magnarelli,  Markey,  McEneny,  Millman,  Norman,  O`Donnell,

         Peoples,  Peralta,  Perry,  Pheffer,  Powell,  J. Rivera,   N. Rivera,

         P. Rivera,  Seddio, Stringer, Titus, Tonko, Weinstein, Weprin, Wright)

         -- read once and referred to the Committee on Education               

                                                                               

       AN ACT to amend the education  law,  in  relation  to  implementing  the

         Schools  for  New  York`s  Future  Act relating to the calculation and

         payment of sound basic education (SBE) state aid,  and  providing  for

         accountability  in  the  context  of  the  public education system; to

         implement the building requires immediate capital  for  kids  (BRICKS)

         initiative; to amend the public authorities law, in relation to public

         school  districts and dormitory authority financing of eligible school

         district projects; and to repeal certain provisions of  the  education

         law relating to the calculation and payment of various aid programs   

                                                                               

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

       BLY, DO ENACT AS FOLLOWS:                                               

                                                                               

    1    Section 1. Legislative findings.  The  legislature  hereby  finds  and

    2  declares that the education of every child in this state is a core func-

    3  tion  of  government  at all levels, which requires the determination of

    4  the actual costs of  a  sound  basic  education,  the  availability  and

    5  distribution  to  every  school of fiscal resources necessary to provide

    6  the opportunity for such an education, and a system of accountability to

    7  measure whether such reforms actually  provide  the  opportunity  for  a

    8  sound  basic education in a manner consistent with New York Const.  Art.

    9  XI, and the decision of the court of  appeals  in  CAMPAIGN  FOR  FISCAL

   10  EQUITY V. STATE, 100 N.Y. 2d 893 (2003).                                

                                                                               

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

                             { } is old law to be omitted.                     

                                                                  LBD13103-01-5

                                                                               

       A. 8700                             2                                   

                                                                               

    1    S  1-a.   This act shall be known and may be cited as the "Schools for

    2  New York`s Future Act".                                                 

    3    S  2.  Section  305  of the education law is amended by adding two new

    4  subdivisions 35 and 36 to read as follows:                              

    5    35. SCHOOL DISTRICT FACILITIES ADEQUACY STUDIES. NOT LATER  THAN  JULY

    6  FIRST,  TWO  THOUSAND NINE, AND EVERY FIFTH YEAR THEREAFTER, THE COMMIS-

    7  SIONER SHALL REPORT TO THE GOVERNOR, AND MEMBERS OF THE LEGISLATURE, THE

    8  RESULTS OF SYSTEMATIC DATA COLLECTION AND ANALYSIS OF  THE  ADEQUACY  OF

    9  SCHOOL  DISTRICT  FACILITIES  TO  ASSURE THAT ALL STUDENTS ATTENDING THE

   10  PUBLIC SCHOOLS OF THE STATE SHALL HAVE AN OPPORTUNITY FOR A SOUND  BASIC

   11  EDUCATION  THAT  IS NOT IMPEDED BY FACILITIES-RELATED DEFICIENCIES. SUCH

   12  STUDIES SHALL ADDRESS THE FOLLOWING FIVE PRIMARY AREAS OF  DEFICIENCIES:

   13  (I)  OVERCROWDING OF SCHOOL BUILDINGS SERVING STUDENTS IN EXCESS OF FULL

   14  CAPACITY, (II) INAPPROPRIATE CLASS  SIZES,  INCLUDING  CONSIDERATION  OF

   15  ENROLLMENT  GROWTH PROJECTIONS AS APPROVED BY THE COMMISSIONER, NECESSI-

   16  TATED BY A LACK OF SCHOOL FACILITIES, (III) LACK OF SPECIALIZED  SPACES,

   17  SUCH  AS  LIBRARIES,  LABORATORIES,  AND AUDITORIUMS, (IV) FACILITIES IN

   18  SUCH GRAVE CONDITION THAT THEY MAY BE UNSAFE OR RENDERED UNUSABLE WITHIN

   19  FIVE YEARS, AS DETERMINED BY STRUCTURAL INSPECTIONS AND  REPORTED  ON  A

   20  BUILDING  CONDITION SURVEY SUBMITTED IN AN APPROVED FORMAT, AND (V) LACK

   21  OF ACCESS TO INSTRUCTIONAL COMPUTER TECHNOLOGY, TECHNOLOGY EQUIPMENT AND

   22  THE INTERNET. THE COMMISSIONER SHALL PROMULGATE REGULATIONS WITH RESPECT

   23  TO THE  TIMING,  SCOPE  AND  FORMAT  OF  REQUIRED  REPORTING  BY  SCHOOL

   24  DISTRICTS  TO  EFFECTUATE  THE PURPOSES OF THIS SUBDIVISION. SUCH REPORT

   25  SHALL ALSO BE AVAILABLE TO ALL INTERESTED PARTIES THROUGH PUBLICATION ON

   26  THE STATE EDUCATION DEPARTMENT  WEBSITE.    SCHOOL  DISTRICT  FACILITIES

   27  ADEQUACY  STUDIES MAY BE CITED AS THE: BUILDING REQUIRES IMMEDIATE CAPI-

   28  TAL FOR KIDS (BRICKS) INITIATIVE.                                       

   29    36. COST OF EDUCATION STUDIES. NOT LATER THAN OCTOBER FIRST, TWO THOU-

   30  SAND EIGHT AND EVERY FOURTH  YEAR  THEREAFTER,  THE  COMMISSIONER  SHALL

   31  PUBLISH  THE  RESULTS  OF  A  QUADRENNIAL COSTING-OUT STUDY CONDUCTED BY

   32  RECOGNIZED EXPERTS IN SUCH FIELD SELECTED BY THE COMMISSIONER AND  WORK-

   33  ING  IN CONSULTATION WITH AN ADVISORY COUNCIL ON COSTING-OUT WHICH SHALL

   34  REPRESENT THE PARTIES IN CAMPAIGN FOR FISCAL EQUITY V. STATE. SUCH COST-

   35  ING-OUT STUDIES SHALL UTILIZE MULTIPLE METHODOLOGIES, INCLUDING, BUT NOT

   36  LIMITED TO, ITERATIVE ANALYSIS AND SYNTHESIS  OF  PROFESSIONAL  JUDGMENT

   37  PANEL  COSTING-OUT RECOMMENDATIONS, ANALYSIS OF THE COSTS OF PROVIDING A

   38  SOUND BASIC EDUCATION AMONG SUCCESSFUL SCHOOLS IN  THE  STATE  BASED  ON

   39  REGENTS  CRITERIA,  AND/OR ALTERNATIVE METHODOLOGIES AS DEEMED APPROPRI-

   40  ATE. SUCH COSTING-OUT STUDIES SHALL ESTIMATE: (I) AN UPDATED  GEOGRAPHIC

   41  COST  OF  EDUCATION INDEX FOR EACH SCHOOL DISTRICT, AND (II) THE COST OF

   42  PROVIDING A SOUND BASIC EDUCATION IN EACH SCHOOL  DISTRICT.  SUCH  COST-

   43  ING-OUT  STUDIES SHALL ALSO MAKE RECOMMENDATIONS AS TO THE STATEWIDE-UN-

   44  WEIGHTED SOUND BASIC EDUCATION COST PER PUPIL AND THE SYNCHRONOUS VALUES

   45  OF REPRESENTING THE ADDITIONAL COSTS OF EDUCATING STUDENTS FROM  ECONOM-

   46  ICALLY  DISADVANTAGED  BACKGROUNDS, STUDENTS WITH LIMITED ENGLISH PROFI-

   47  CIENCY AND STUDENTS WITH DISABILITIES.                                  

   48    S 3. The education law is amended by adding a new article 25  to  read

   49  as follows:                                                             

   50                                 ARTICLE 25                               

   51                         EDUCATIONAL ACCOUNTABILITY                       

   52  SECTION 1300. ADEQUATE RESOURCES.                                       

   53          1301. MASTER PLANS.                                             

   54          1302. COMPREHENSIVE SOUND BASIC EDUCATION PLANS.                

   55          1303. EFFECTIVE USE OF RESOURCES.                               

   56          1304. ANNUAL SOUND BASIC EDUCATION REPORT BY THE REGENTS.       

                                                                               

       A. 8700                             3                                   

                                                                               

    1    S  1300.  ADEQUATE RESOURCES. THE STATE EDUCATION FINANCE SYSTEM SHALL

    2  PROVIDE SUFFICIENT RESOURCES TO OFFER ALL  STUDENTS  IN  THE  STATE  THE

    3  OPPORTUNITY  FOR  A  SOUND  BASIC  EDUCATION. THE SUFFICIENCY OF FUNDING

    4  SHALL BE DETERMINED THROUGH AN OBJECTIVE ASSESSMENT OF THE ACTUAL  COSTS

    5  OF  PROVIDING  A  SOUND BASIC EDUCATION THAT TAKES INTO ACCOUNT REGIONAL

    6  COST DIFFERENCES AND THE ADDITIONAL COSTS  OF  EDUCATING  STUDENTS  FROM

    7  ECONOMICALLY  DISADVANTAGED  BACKGROUNDS,  STUDENTS WITH LIMITED ENGLISH

    8  PROFICIENCY AND  STUDENTS  WITH  DISABILITIES.  THE  COMMISSIONER  SHALL

    9  SUPERVISE SUCH ASSESSMENT, IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVI-

   10  SION  THIRTY-SIX  OF  SECTION  THREE HUNDRED FIVE OF THIS CHAPTER, EVERY

   11  FOUR YEARS. THE RESULTS OF SUCH ASSESSMENT  SHALL  BE  REPORTED  TO  THE

   12  GOVERNOR  AND  MEMBERS  OF THE LEGISLATURE TO FACILITATE REVISION OF THE

   13  STATE EDUCATION FINANCE SYSTEM EVERY FOUR YEARS IN ACCORDANCE  WITH  THE

   14  FINDINGS  OF  SUCH  COSTING-OUT  ASSESSMENT  IN  ORDER  TO  ENSURE  THAT

   15  RESOURCES MEET CURRENT EDUCATIONAL NEEDS. SUCH  RESULTS  SHALL  ALSO  BE

   16  PUBLISHED ON THE WEBSITE MAINTAINED BY THE STATE EDUCATION DEPARTMENT.  

   17    S  1301.  MASTER PLANS. 1. NOTWITHSTANDING ANY INCONSISTENT PROVISIONS

   18  OF THE EDUCATION LAW,  THE  COMMISSIONER  SHALL  ISSUE  REGULATIONS  AND

   19  GUIDELINES  TO  SUPERSEDE  AND/OR  STREAMLINE ALL PLANNING, PROGRAMMATIC

   20  REPORTING, AND APPLICATION REQUIREMENTS SET FORTH IN  CURRENT  LAWS  AND

   21  REGULATIONS FOR ALL BOARDS OF EDUCATION OR TRUSTEES OR THE CHANCELLOR OF

   22  THE  CITY  SCHOOL  DISTRICT OF THE CITY OF NEW YORK OR BOARDS OF COOPER-

   23  ATIVE EDUCATIONAL SERVICES AND SHALL ISSUE REGULATIONS AND GUIDELINES TO

   24  REQUIRE INSTEAD, THE ADOPTION OF A DISTRICT MASTER PLAN WHICH SETS FORTH

   25  ITS INSTRUCTIONAL GOALS, THE  MEANS  FOR  ACCOMPLISHING  THEM,  AND  HOW

   26  STATE, LOCAL AND FEDERAL FUNDS WILL BE EXPENDED EFFECTIVELY TO MEET SUCH

   27  INSTRUCTIONAL  GOALS.  IT  SHALL BE THE DUTY OF THE TRUSTEES OR BOARD OF

   28  EDUCATION OF EVERY SCHOOL DISTRICT AND OF THE  CHANCELLOR  IN  THE  CITY

   29  SCHOOL  DISTRICT  OF  THE CITY OF NEW YORK AND OF EVERY BOARD OF COOPER-

   30  ATIVE EDUCATIONAL SERVICES TO ASSURE THAT ALL  ASPECTS  OF  SUCH  MASTER

   31  PLAN  ARE  AS  FULLY  INTEGRATED AND CONSISTENT AS PRACTICABLE, AND THAT

   32  SUCH PLANS ARE  CONTINUOUSLY  REVIEWED,  REFLECT  ON-GOING  ANALYSES  OF

   33  CURRENT TEACHING AND LEARNING DATA, AND ARE UPDATED ON AT LEAST AN ANNU-

   34  AL BASIS.                                                               

   35    2. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS CHAPTER OR REGU-

   36  LATIONS TO THE CONTRARY, ANY PROGRAMMATIC REPORTING, PLANNING AND APPLI-

   37  CATION  REQUIREMENTS IMPOSED UNDER THIS CHAPTER OR ANY REGULATION OF THE

   38  COMMISSIONER SHALL BE DEEMED TO BE FULFILLED BY THE  INCLUSION  OF  SUCH

   39  INFORMATION  IN  THE  MASTER  PLAN  DEVELOPED  PURSUANT TO THIS SECTION.

   40  APPLICABLE FEDERAL PLANNING,  PROGRAMMATIC  REPORTING,  AND  APPLICATION

   41  REQUIREMENTS  SHALL  BE  INCLUDED  IN  THE  MASTER  PLAN  OF  ALL SCHOOL

   42  DISTRICTS, TO THE EXTENT PERMITTED BY FEDERAL LAW, OR AS AN APPENDIX  TO

   43  THE  PLAN, TO THE EXTENT THAT SPECIFIC REPORTING FORMATS ARE REQUIRED BY

   44  FEDERAL LAW. THE COMMISSIONER SHALL  RECOMMEND  APPROPRIATE  CHANGES  IN

   45  STATE LAWS TO FURTHER THE PURPOSES OF THIS SECTION.                     

   46    S  1302. COMPREHENSIVE SOUND BASIC EDUCATION PLANS. 1.  THE PROVISIONS

   47  OF THIS SECTION SHALL APPLY TO  ANY  SCHOOL  DISTRICT  NOT  MEETING  THE

   48  SUCCESSFUL  SCHOOL DISTRICT STANDARD ESTABLISHED PURSUANT TO SUBDIVISION

   49  TEN OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER, AND, IN THE  CASE

   50  OF  THE  CITY  SCHOOL  DISTRICT  OF THE CITY OF NEW YORK, IMPLEMENTATION

   51  STANDARDS ESTABLISHED BY THE CHANCELLOR OF SUCH CITY SCHOOL DISTRICT.   

   52    2. THE COMMISSIONER SHALL ADOPT REGULATIONS  REQUIRING  THE  BOARD  OF

   53  EDUCATION  OR  TRUSTEES OR CHANCELLOR OF EACH SCHOOL DISTRICT SUBJECT TO

   54  THE PROVISIONS OF THIS SECTION TO DEVELOP A ROLLING FOUR-YEAR COMPREHEN-

   55  SIVE SOUND BASIC EDUCATION PLAN, WITH ANNUAL UPDATES, TO IMPROVE STUDENT

   56  PERFORMANCE, TO ELIMINATE PERFORMANCE GAPS AND TO ENSURE  THE  EFFECTIVE

                                                                               

       A. 8700                             4                                   

                                                                               

    1  USE OF RESOURCES AT THE SCHOOL AND THE SCHOOL DISTRICT LEVEL IN ORDER TO

    2  PROVIDE ALL STUDENTS THE OPPORTUNITY FOR A SOUND BASIC EDUCATION.       

    3    3. THE FIRST SUCH PLANS SHALL BE DEVELOPED NO LATER THAN APRIL THIRTI-

    4  ETH, TWO THOUSAND SIX, PROVIDED HOWEVER, THAT PLANS REQUIRED PURSUANT TO

    5  FEDERAL OR STATE LAWS, OR REGULATIONS OF THE COMMISSIONER, IN EFFECT FOR

    6  THE  TWO  THOUSAND  FIVE--TWO  THOUSAND  SIX SCHOOL YEAR SHALL SERVE THE

    7  PURPOSES OF THIS SECTION IN SUCH SCHOOL YEAR.                           

    8    4. FOR SCHOOL DISTRICTS SUBJECT TO THE PROVISIONS OF THIS SECTION, THE

    9  ROLLING MULTI-YEAR COMPREHENSIVE SOUND BASIC EDUCATION PLAN SHALL  SERVE

   10  AS  THE  DISTRICT MASTER PLAN REQUIRED BY THIS ARTICLE. THE COMMISSIONER

   11  SHALL ALSO REQUIRE ALL BOARDS OF EDUCATION OR  TRUSTEES  AND  BOARDS  OF

   12  COOPERATIVE  EDUCATIONAL SERVICES TO COMPREHENSIVELY ADDRESS IN A SINGLE

   13  STREAMLINED PLANNING DOCUMENT FOR EACH SCHOOL ALL  SCHOOL  LEVEL  COMPO-

   14  NENTS  OF  THE COMPREHENSIVE SOUND BASIC EDUCATION PLAN AS PRESCRIBED BY

   15  THE COMMISSIONER.                                                       

   16    5. REGULATIONS ADOPTED PURSUANT TO THIS ARTICLE SHALL SET FORTH PROCE-

   17  DURES TO ENSURE THAT INFORMATION ABOUT  THE  COMPREHENSIVE  SOUND  BASIC

   18  EDUCATION  PLANNING  PROCESS  IS  WIDELY  DISSEMINATED AND THAT THERE IS

   19  EXTENSIVE PUBLIC ENGAGEMENT OF  PARENTS,  TEACHERS,  ADMINISTRATORS  AND

   20  OTHER  INTERESTED  GROUPS  AND INDIVIDUALS IN CONSULTING ON PROGRAMS AND

   21  CONCEPTS BEING CONSIDERED IN THE PLANNING PROCESS, AND REVIEWING DRAFTS,

   22  BEFORE THE SCHOOL DISTRICT ADOPTS  SUCH  PLAN.  SUCH  REGULATIONS  SHALL

   23  ENSURE  THAT  PROCEDURES  FOR  PUBLIC ENGAGEMENT ARE CONSISTENT WITH THE

   24  ROLE OF SCHOOL-BASED PLANNING AND SHARED DECISION MAKING TEAMS  PURSUANT

   25  TO  SECTION  100.11 OF TITLE EIGHT OF THE NEW YORK CODE, RULES AND REGU-

   26  LATIONS, AND, IN THE CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK,  WITH

   27  THE  ROLES  OF  THE  COMMUNITY EDUCATION COUNCILS, AND THE CENTRAL BOARD

   28  PURSUANT TO ARTICLE FIFTY-TWO-A OF THIS CHAPTER. BOARDS OF EDUCATION  OR

   29  TRUSTEES  OR  THE  CHANCELLOR OF THE CITY SCHOOL DISTRICT OF THE CITY OF

   30  NEW YORK OR BOARDS OF COOPERATIVE EDUCATIONAL SERVICES SHALL HOLD ONE OR

   31  MORE PUBLIC HEARINGS REGARDING THE PROPOSED  COMPREHENSIVE  SOUND  BASIC

   32  EDUCATION  PLAN  AND  SHALL  PRESENT THE PROPOSED FINAL PLAN AT A PUBLIC

   33  MEETING AT TIMES AND PLACES THAT MAKE SUCH MEETINGS  ACCESSIBLE  TO  ALL

   34  SUCH INTERESTED PARTIES, AND SUCH DRAFTS AND FINAL PLANS SHALL BE AVAIL-

   35  ABLE  FOR REVIEW ON THE INTERNET, AND AT DISTRICT OFFICES, NOT LESS THAN

   36  FOURTEEN DAYS IN ADVANCE OF SUCH PUBLIC MEETINGS, TO  FACILITATE  PUBLIC

   37  REVIEW  AND  INPUT  INTO ITS DEVELOPMENT. NOTICE OF SUCH PUBLIC MEETINGS

   38  SHALL BE PUBLICIZED IN ACCORDANCE WITH THE REQUIREMENTS FOR MEETINGS  OF

   39  BOARDS OF EDUCATION OR TRUSTEES.                                        

   40    6.  THE  CITY  SCHOOL DISTRICT OF THE CITY OF NEW YORK SHALL DEVELOP A

   41  CITYWIDE COMPREHENSIVE SOUND BASIC  EDUCATION  PLAN,  AND  COMPREHENSIVE

   42  COMMUNITY SCHOOL DISTRICT AND SCHOOL-BASED PLANS THAT IMPLEMENT CITYWIDE

   43  PRIORITIES, AS WELL AS SUPPLEMENTARY REGIONAL AND SCHOOL-BASED GOALS AND

   44  PROGRAMS  NOT  INCONSISTENT  WITH THE CITYWIDE POLICIES AND PROGRAMS AND

   45  WITH THE PROCEDURES FOR SCHOOL-BASED BUDGETING AND REPORTING PURSUANT TO

   46  ARTICLE FIFTY-TWO-A OF THIS CHAPTER. PUBLIC ENGAGEMENT, CONSISTENT  WITH

   47  THE  ROLE  OF  SCHOOL-BASED  PLANNING  AND  SHARED DECISION-MAKING TEAMS

   48  PURSUANT TO SECTION 100.11 OF TITLE EIGHT OF THE NEW  YORK  CODE,  RULES

   49  AND REGULATIONS, AND WITH THE ROLES OF THE COMMUNITY EDUCATION COUNCILS,

   50  AND  THE  CENTRAL BOARD PURSUANT TO ARTICLE FIFTY-TWO-A OF THIS CHAPTER,

   51  SHALL TAKE PLACE IN REGARD TO DEVELOPING THE CITYWIDE, REGIONAL AND  THE

   52  SCHOOL-BASED COMPREHENSIVE PLANS.                                       

   53    7.  EACH  DISTRICT-WIDE  ROLLING  MULTI-YEAR COMPREHENSIVE SOUND BASIC

   54  EDUCATION PLAN SHALL SET FORTH IN A  DETAILED,  TRANSPARENT  MANNER  THE

   55  SCHOOL  SYSTEM`S  NEEDS  RELATING  TO IMPROVING TEACHING AND LEARNING, A

   56  COHERENT SET OF STRATEGIES FOR BUILDING INSTRUCTIONAL CAPACITY AND MEET-

                                                                               

       A. 8700                             5                                   

                                                                               

    1  ING THOSE NEEDS, AND A RESOURCE  ALLOCATION  PLAN  TO  ENSURE  THAT,  IN

    2  ACCORDANCE  WITH  THE MULTI-YEAR PHASE-IN, EACH SCHOOL HAS THE RESOURCES

    3  TO PROVIDE AN OPPORTUNITY FOR A SOUND BASIC  EDUCATION  TO  ALL  OF  ITS

    4  STUDENTS. SUCH PLANS SHALL SPECIFY HOW MULTI-YEAR INCREASED FUNDING FROM

    5  THE  STATE  AND LOCAL CONTRIBUTIONS TO THE SOUND BASIC EDUCATION REVENUE

    6  REQUIREMENT WILL BE SPENT, PRIORITIZING THE DISTRIBUTION OF THE  PHASED-

    7  IN  INCREASES  IN BOTH STATE AND LOCAL FUNDS TO ENSURE THAT EVERY SCHOOL

    8  IN THE DISTRICT WILL HAVE THE CAPACITY TO PROVIDE ALL  OF  ITS  STUDENTS

    9  THE  OPPORTUNITY  FOR  A SOUND BASIC EDUCATION, AND ADDRESSING FIRST THE

   10  NEEDS OF LOW PERFORMING AND AT-RISK STUDENTS.                           

   11    A. THE COMPREHENSIVE SOUND BASIC EDUCATION PLAN SHALL DEMONSTRATE  HOW

   12  THE  DISTRICT WILL IMPROVE STUDENT PERFORMANCE AND ELIMINATE PERFORMANCE

   13  GAPS, BY, AMONG OTHER THINGS, ADDRESSING NEEDS IN  THE  FOLLOWING  SOUND

   14  BASIC EDUCATION PRIORITY AREAS:                                         

   15    (I) THE QUALITY OF TEACHING AND INSTRUCTIONAL LEADERSHIP;             

   16    (II) APPROPRIATE CLASS SIZES;                                         

   17    (III) ADEQUACY OF SCHOOL FACILITIES;                                  

   18    (IV) PRE-KINDERGARTEN SERVICES;                                       

   19    (V)  AN  EXPANDED  PLATFORM  OF  PROGRAMS  AND  SERVICES  FOR  AT-RISK

   20  STUDENTS, INCLUDING, BUT NOT LIMITED TO, AFTER SCHOOL, SUMMER AND SATUR-

   21  DAY PROGRAMS;                                                           

   22    (VI) SERVICES FOR STUDENTS  WITH  DISABILITIES  AND  ENGLISH  LANGUAGE

   23  LEARNERS;                                                               

   24    (VII)  INSTRUMENTALITIES  OF  LEARNING,  INCLUDING, BUT NOT LIMITED TO

   25  TEXTBOOKS, LIBRARIES, LABORATORIES, AND COMPUTERS;                      

   26    (VIII) PARENTAL INVOLVEMENT AND PARENTAL RESPONSIBILITY; AND          

   27    (IX) A SAFE, ORDERLY LEARNING ENVIRONMENT.                            

   28  THE TEACHER QUALITY PART OF THE PLAN FOR THE CITY SCHOOL DISTRICT OF THE

   29  CITY OF NEW YORK SHALL, AT A MINIMUM, ADDRESS THE FOLLOWING ISSUES:  (A)

   30  COMPETITIVE PAY SCALES FOR TEACHERS; (B) TEACHER RECRUITMENT; (C) TEACH-

   31  ER  RETENTION; (D) EQUITABLE DISTRIBUTION OF EXPERIENCED TEACHERS TO ALL

   32  SCHOOLS; AND (E) IMPROVEMENTS IN THE QUALITY OF TEACHING IN  THE  CLASS-

   33  ROOM.  THE  PLAN  FOR  THE  CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK

   34  SHALL ALSO SET FORTH ANNUAL GOALS, CONSISTENT WITH  THE  CITY`S  CAPITAL

   35  PLAN,  FOR  CREATING ADDITIONAL BUILDING CAPACITY TO REDUCE OVERCROWDING

   36  AND PERMIT REDUCTIONS IN CLASS SIZES.                                   

   37    B. REGULATIONS ADOPTED BY THE COMMISSIONER SHALL REQUIRE EACH PLAN AND

   38  ANNUAL UPDATE TO ALSO SET FORTH MEASURABLE ANNUAL AND  LONG-TERM  BENCH-

   39  MARKS  AND  INDICATORS FOR ASSESSING THE IMPLEMENTATION AND THE OUTCOMES

   40  OF SPECIFIC EDUCATIONAL INITIATIVES UNDERTAKEN IN THE SOUND BASIC EDUCA-

   41  TION PRIORITY AREAS AND FOR MEASURING THE PROGRESS OF  ALL  STUDENTS  IN

   42  MEETING  ACHIEVEMENT GOALS, INCLUDING BUT NOT LIMITED TO, ACHIEVEMENT IN

   43  REGARD TO THE REGENTS LEARNING STANDARDS, LOWERING  DROPOUT  RATES,  AND

   44  IMPROVING RATES OF ATTENDANCE, PROMOTION, AND GRADUATION. THE PLAN SHALL

   45  ALSO  SPECIFY METHODS FOR INFORMING STUDENTS, PARENTS AND MEMBERS OF THE

   46  COMMUNITY OF THE AVAILABILITY OF PROGRAMS AND SERVICES  OFFERED  BY  THE

   47  SCHOOL  DISTRICT,  INCLUDING,  BUT NOT LIMITED TO, AFTER-SCHOOL/EXTENDED

   48  DAY PROGRAMS.                                                           

   49    8. THE COMMISSIONER SHALL REVIEW EACH COMPREHENSIVE SOUND BASIC EDUCA-

   50  TION PLAN TO ENSURE THAT IT ADDRESSES APPROPRIATELY EACH  OF  THE  SOUND

   51  BASIC  EDUCATION  PRIORITY AREAS, AND THAT IT COMPLIES WITH THIS SECTION

   52  AND WITH APPLICABLE REGULATIONS.  THE COMMISSIONER SHALL COMPLETE HIS OR

   53  HER REVIEW WITHIN SIXTY DAYS OF RECEIPT OF  EACH  SUCH  PLAN.    IF  THE

   54  COMMISSIONER  DETERMINES  THAT  THE  PLAN  DOES  NOT  COMPLY  WITH THESE

   55  REQUIREMENTS, HE OR SHE MAY REQUIRE THE BOARD OF EDUCATION  OR  TRUSTEES

   56  OR  CHANCELLOR  TO  REVISE THE PLAN TO MEET THE APPLICABLE REQUIREMENTS.

                                                                               

       A. 8700                             6                                   

                                                                               

    1  THE COMMISSIONER MAY ALSO ORDER A BOARD  OF  EDUCATION  OR  TRUSTEES  OR

    2  CHANCELLOR  THAT  HAS  FAILED TO IMPLEMENT ITS COMPREHENSIVE SOUND BASIC

    3  EDUCATION PLAN TO TAKE APPROPRIATE ACTIONS TO IMPLEMENT THE PLAN.       

    4    9.  COMMENCING  WITH  THE CLOSE OF THE FIRST YEAR A SCHOOL DISTRICT IS

    5  REQUIRED TO DEVELOP A COMPREHENSIVE SOUND BASIC EDUCATION PLAN  PURSUANT

    6  TO THIS SECTION, IT SHALL PUBLISH AN ANNUAL SOUND BASIC EDUCATION REPORT

    7  BY FEBRUARY FIFTEENTH FOLLOWING THE CLOSE OF THE PLANNING YEAR THAT WILL

    8  PROVIDE  THE  INFORMATION NECESSARY TO DETERMINE THE EXTENT TO WHICH THE

    9  DISTRICT EXPENDED FUNDS AND ADDRESSED NEEDS IN THE SOUND BASIC  PRIORITY

   10  AREAS,  AND  IN  OTHER  AREAS, AND MET THE BENCHMARKS AND INDICATORS SET

   11  FORTH IN THE PLAN. THE ANNUAL REPORT SHALL  RELATE  THE  BENCHMARKS  AND

   12  INDICATORS  WITH  THE  MAJOR  INSTRUCTIONAL  INITIATIVES  AND MANAGEMENT

   13  REFORMS THAT THE BOARD OF EDUCATION OR TRUSTEES OR CHANCELLOR  UNDERTOOK

   14  TO  IMPROVE  STUDENT  PERFORMANCE AND TO ELIMINATE PERFORMANCE GAPS WITH

   15  THE EXPENDITURE OF THE  INCREASED  FUNDING  FROM  THE  STATE  AND  LOCAL

   16  CONTRIBUTIONS  TO  THE  SOUND  BASIC EDUCATION REVENUE REQUIREMENT. SUCH

   17  ANNUAL REPORT SHALL BE MADE AVAILABLE IN DISTRICT  OFFICES  AND  ON  THE

   18  INTERNET  IN  THE  SAME  MANNER  AS THE ROLLING MULTI-YEAR COMPREHENSIVE

   19  SOUND BASIC EDUCATION PLAN.                                             

   20    S 1303. EFFECTIVE USE OF RESOURCES. 1. THE COMPREHENSIVE  SOUND  BASIC

   21  EDUCATION  PLAN  SHALL  DEMONSTRATE  HOW  RESOURCES  WILL BE EFFECTIVELY

   22  UTILIZED. IT SHALL IDENTIFY ALL SERIOUS BARRIERS TO SUCCESSFUL IMPLEMEN-

   23  TATION OF THE PLAN, TAKING INTO ACCOUNT RECOMMENDATIONS FROM  THE  BOARD

   24  OF EDUCATION OR TRUSTEES, OR THE CHANCELLOR, AND FROM PARENTS, TEACHERS,

   25  ADMINISTRATORS  AND  OTHER INTERESTED GROUPS AND INDIVIDUALS WHO PARTIC-

   26  IPATED IN THE PUBLIC ENGAGEMENT PROCESS, ON HOW SUCH BARRIERS SHOULD  BE

   27  MODIFIED OR ELIMINATED.                                                 

   28    2. THE COMMISSIONER SHALL DEVELOP A CAPACITY BUILDING AND ACCOUNTABIL-

   29  ITY  DATABASE  SYSTEM  TO  INCREASE  THE EFFICIENCY AND EFFECTIVENESS OF

   30  SCHOOL PROGRAM PLANNING AND IMPLEMENTATION TO SUPPORT INSTRUCTION AND TO

   31  IMPROVE UNDERSTANDING OF THE RELATIONSHIPS BETWEEN USE OF RESOURCES  AND

   32  RESULTS.  TO  THE EXTENT THAT RESOURCES ARE AVAILABLE FOR SUCH PURPOSES,

   33  THE SYSTEM SHALL INCLUDE BUT NOT BE LIMITED TO:                         

   34    A.   DEVELOPING  AN  INDIVIDUAL  STUDENT  IDENTIFIER  CAPABILITY,  AND

   35  REQUIRING  SCHOOL  DISTRICTS  TO  USE  SUCH SYSTEM, WHILE PROTECTING THE

   36  PRIVACY OF EACH INDIVIDUAL;                                             

   37    B. CONSOLIDATING ALL EXISTING STUDENT DATABASES INTO  A  SINGLE  AUTO-

   38  MATED  SYSTEM  THAT  COLLECTS  AND  STORES DEMOGRAPHIC, PROGRAMMATIC AND

   39  PERFORMANCE DATA ON ALL PRE-KINDERGARTEN TO  GRADE  TWELVE  STUDENTS  IN

   40  PUBLIC SCHOOLS STATEWIDE;                                               

   41    C.  CONSOLIDATING  ALL  INFORMATION  REGARDING  THE YEARLY PROGRESS OF

   42  SCHOOLS IN MEETING STATE PERFORMANCE STANDARDS INTO A  SINGLE  AUTOMATED

   43  DATABASE;                                                               

   44    D.  CONSOLIDATING  ALL  DATA  REGARDING  TEACHER QUALIFICATIONS INTO A

   45  SINGLE AUTOMATED DATABASE;                                              

   46    E. CONSOLIDATING ALL FINANCIAL REPORTING  ASPECTS  OF  THE  STATE  AID

   47  MANAGEMENT  SYSTEMS  INTO  A  SINGLE  SYSTEM  ACCESSIBLE  AT THE SCHOOL,

   48  DISTRICT AND STATE LEVELS; AND                                          

   49    F. CREATING AN ON-LINE COLLABORATIVE SYSTEM THAT PROVIDES PROFESSIONAL

   50  DEVELOPMENT AND DISSEMINATION OF BEST PRACTICES.                        

   51    NOTHING CONTAINED IN THIS SUBDIVISION SHALL PROHIBIT  THE  ACHIEVEMENT

   52  OF THESE OBJECTIVES THROUGH THE DEVELOPMENT OF DISTRIBUTED DATABASES.   

   53    S  1304. ANNUAL SOUND BASIC EDUCATION REPORT BY THE REGENTS. THE BOARD

   54  OF REGENTS SHALL PREPARE AND SUBMIT TO THE GOVERNOR AND MEMBERS  OF  THE

   55  LEGISLATURE  NOT  LATER  THAN JANUARY FIRST, TWO THOUSAND SIX AND BY THE

   56  FIRST DAY OF JANUARY IN EACH YEAR THEREAFTER, A REPORT ON THE EXTENT  TO

                                                                               

       A. 8700                             7                                   

                                                                               

    1  WHICH  ALL  STUDENTS  IN  THE  STATE ARE RECEIVING THE OPPORTUNITY FOR A

    2  SOUND BASIC EDUCATION. THE REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO:

    3    1. A REVIEW AND ASSESSMENT OF THE STATE EDUCATION FINANCE SYSTEM; AND

    4    2. A REVIEW AND ASSESSMENT OF THE SOUND BASIC EDUCATION ACCOUNTABILITY

    5  SYSTEM,  INCLUDING  A  REPORT  ON  STUDENT  PERFORMANCE IN THE PRECEDING

    6  SCHOOL YEAR ON REQUIRED STATE ASSESSMENTS, AND THE IDENTIFICATION OF ANY

    7  MAJOR STATUTORY OR REGULATORY  PROVISIONS  THAT  CREATE  IMPEDIMENTS  TO

    8  DELIVERY  OF  A  SOUND BASIC EDUCATION AND RECOMMENDATIONS FOR REPEAL OR

    9  MODIFICATION OF SUCH PROVISIONS.                                        

   10    THE COMMISSIONER SHALL CONDUCT A PUBLIC HEARING ON THE PROPOSED REPORT

   11  AND SHALL INCLUDE A SUMMARY OF THE INPUT RECEIVED AT SUCH HEARING IN THE

   12  FINAL REPORT. THE LEGISLATURE SHALL, ACTING THROUGH APPROPRIATE  COMMIT-

   13  TEES,  AND  WITH  THE PARTICIPATION OF DESIGNATED REPRESENTATIVES OF THE

   14  GOVERNOR, CONVENE AND CONDUCT A JOINT PUBLIC HEARING WITHIN  SIXTY  DAYS

   15  OF  THE RELEASE OF SUCH REPORT BY THE REGENTS. SUCH REPORT SHALL ALSO BE

   16  AVAILABLE TO ALL INTERESTED PARTIES THROUGH  PUBLICATION  ON  THE  STATE

   17  EDUCATION DEPARTMENT WEBSITE.                                           

   18    S  4. Subdivision 2 of section 215-a of the education law, as added by

   19  chapter 474 of the laws of 1996, is amended to read as follows:         

   20    2. The annual report shall specifically identify school districts  (i)

   21  having  fifteen  percent or more of their students in special education;

   22  or (ii) having fifty percent or more of their students with disabilities

   23  {in} ASSIGNED PRIMARILY TO special education programs or services {sixty

   24  percent or more of the school day} in a general education building,  BUT

   25  WHICH  EXCLUDE  STUDENTS  WITHOUT  DISABILITIES;  or  (iii) having eight

   26  percent or more of their students with disabilities in special education

   27  programs in public or private separate educational settings. Such report

   28  shall also present each district`s percent and the statewide percent for

   29  each such measure.                                                      

   30    S 5. Subdivisions 4 and 6 and paragraph a of subdivision 7 of  section

   31  1608  of the education law, subdivisions 4 and 6 as amended by section 5

   32  of part A of chapter 436 of the laws of 1997, and paragraph a of  subdi-

   33  vision  7 as amended by section 4 of part H of chapter 83 of the laws of

   34  2002, are amended to read as follows:                                   

   35    4. Commencing with the proposed budget for the {nineteen hundred nine-

   36  ty-eight--ninety-nine} TWO THOUSAND SIX--TWO THOUSAND SEVEN school year,

   37  such proposed budget shall be presented in {three}  FOUR  components:  a

   38  program  component,  A  TRANSPORTATION  OPERATIONS  COMPONENT, a capital

   39  component and an administrative  component  which  shall  be  separately

   40  delineated  in  accordance  with  regulations  of the commissioner after

   41  consultation with local school district  officials.  The  administrative

   42  component  shall include, but need not be limited to, office and central

   43  administrative expenses, traveling expenses and salaries and benefits of

   44  all certified school administrators and supervisors who spend a majority

   45  of their time performing administrative or supervisory duties,  any  and

   46  all  expenditures associated with the operation of the office of trustee

   47  or board of trustees, the  office  of  the  superintendent  of  schools,

   48  general administration, the school business office, consulting costs not

   49  directly  related  to direct student services and programs, planning and

   50  all  other  administrative  activities.  The  program  component   shall

   51  include,  but  need  not  be limited to, all program expenditures of the

   52  school district, including the salaries and benefits of teachers and any

   53  school administrators or supervisors who spend a majority of their  time

   54  performing  teaching duties{, and}. THE TRANSPORTATION OPERATIONS COMPO-

   55  NENT SHALL INCLUDE all transportation operating expenses.   The  capital

   56  component  shall include, but need not be limited to, all transportation

                                                                               

       A. 8700                             8                                   

                                                                               

    1  capital, debt service, and  lease  expenditures;  costs  resulting  from

    2  judgments  in  tax  certiorari proceedings or the payment of awards from

    3  court judgments, administrative orders or settled or compromised claims;

    4  and  all  facilities  costs of the school district, including facilities

    5  lease expenditures, the annual debt  service  and  total  debt  for  all

    6  facilities  financed  by bonds and notes of the school district, and the

    7  costs of construction, acquisition,  reconstruction,  rehabilitation  or

    8  improvement of school buildings, provided that such budget shall include

    9  a  rental,  operations  and  maintenance section that includes base rent

   10  costs, total rent costs, operation and  maintenance  charges,  cost  per

   11  square foot for each facility leased by the school district, and any and

   12  all  expenditures  associated  with  custodial  salaries  and  benefits,

   13  service contracts, supplies, utilities, and maintenance and  repairs  of

   14  school  facilities.  For the purposes of the development of a budget for

   15  the {nineteen hundred ninety-eight--ninety-nine} TWO  THOUSAND  SIX--TWO

   16  THOUSAND SEVEN school year, the trustee or board of trustees shall sepa-

   17  rate  the  district`s  program,  TRANSPORTATION  OPERATIONS, capital and

   18  administrative costs for  the  {nineteen  hundred  ninety-seven--ninety-

   19  eight}  TWO THOUSAND FIVE--TWO THOUSAND SIX school year in the manner as

   20  if the budget for such year had been presented in  {three}  FOUR  compo-

   21  nents.                                                                  

   22    6.  Each  year, the board of education shall prepare a school district

   23  report card, pursuant to regulations of the commissioner, and shall make

   24  it publicly available by transmitting it to local newspapers of  general

   25  circulation, appending it to copies of the proposed budget made publicly

   26  available  as  required  by law, making it available for distribution at

   27  the annual meeting, and otherwise disseminating it as  required  by  the

   28  commissioner.  Such  report  card shall include measures of the academic

   29  performance of the school district, on a school  by  school  basis,  and

   30  measures of the fiscal performance of the district, as prescribed by the

   31  commissioner.  Pursuant  to  regulations of the commissioner, the report

   32  card shall also compare these measures to  statewide  averages  for  all

   33  public  schools, and statewide averages for public schools of comparable

   34  wealth and need, developed by the commissioner. Such report  card  shall

   35  include,  at a minimum, any information on the school district regarding

   36  pupil performance and expenditure per pupil required to be  included  in

   37  the  annual  report  by  the regents to the governor and the legislature

   38  pursuant to section two hundred fifteen-a  of  this  chapter,  INCLUDING

   39  DATA  ABOUT  THE PLACEMENT OF THE DISTRICT`S STUDENTS WITH DISABILITIES,

   40  AS REQUIRED IN SUBDIVISION TWO OF SUCH SECTION; and any  other  informa-

   41  tion  required  by the commissioner. {School districts (i) identified as

   42  having fifteen percent or more of their students in  special  education,

   43  or (ii) which have fifty percent or more of their students with disabil-

   44  ities in special education programs or services sixty percent or more of

   45  the  school  day  in  a  general education building, or (iii) which have

   46  eight percent or more of their students  with  disabilities  in  special

   47  education  programs  in  public or private separate educational settings

   48  shall indicate on their school district  report  card  their  respective

   49  percentages  as  defined  in this subparagraph and subparagraphs (i) and

   50  (ii) of this paragraph as compared to the statewide average.}           

   51    a. Each year, commencing with the proposed budget for  the  two  thou-

   52  sand--two  thousand  one  school  year, the trustee or board of trustees

   53  shall prepare a property tax report card, pursuant to regulations of the

   54  commissioner, and shall make it publicly available by transmitting it to

   55  local newspapers of general circulation, appending it to copies  of  the

   56  proposed  budget  made  publicly available as required by law, making it

                                                                               

       A. 8700                             9                                   

                                                                               

    1  available for distribution at the annual meeting, and otherwise  dissem-

    2  inating  it  as  required  by  the  commissioner. Such report card shall

    3  include: (i) the amount of total spending and total estimated school tax

    4  levy  that  would  result  from  adoption of the proposed budget and the

    5  percentage increase or decrease in total spending and total  school  tax

    6  levy  from the school district budget for the preceding school year; and

    7  (ii) the projected enrollment growth for the school year for  which  the

    8  budget  is  prepared,  and  the percentage change in enrollment from the

    9  previous year; and (iii) the percentage  increase  OR  DECREASE  in  the

   10  consumer  price  index,  as defined in {paragraph c of this} subdivision

   11  ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER.                  

   12    S 5-a. Paragraph c of subdivision 7 of section 1608 of  the  education

   13  law is REPEALED.                                                        

   14    S  6. Subdivisions 4 and 6 and paragraph a of subdivision 7 of section

   15  1716 of the education law, subdivisions 4 and 6 as amended by section  7

   16  of part A of chapter 436 of the laws of 1997 and paragraph a of subdivi-

   17  sion  7  as  amended by section 5 of part H of chapter 83 of the laws of

   18  2002, are amended to read as follows:                                   

   19    4. Commencing with the proposed budget for the {nineteen hundred nine-

   20  ty-eight--ninety-nine} TWO THOUSAND SIX--TWO THOUSAND SEVEN school year,

   21  such proposed budget shall be presented in {three}  FOUR  components:  a

   22  program  component,  A  TRANSPORTATION  OPERATIONS  COMPONENT, a capital

   23  component and an administrative  component  which  shall  be  separately

   24  delineated  in  accordance  with  regulations  of the commissioner after

   25  consultation with local school district  officials.  The  administrative

   26  component  shall include, but need not be limited to, office and central

   27  administrative expenses, traveling expenses and salaries and benefits of

   28  all certified school administrators and supervisors who spend a majority

   29  of their time performing administrative or supervisory duties,  any  and

   30  all  expenditures  associated  with the operation of the board of educa-

   31  tion, the office of the  superintendent  of  schools,  general  adminis-

   32  tration,  the  school  business  office,  consulting  costs not directly

   33  related to direct student services and programs, planning and all  other

   34  administrative activities. The program component shall include, but need

   35  not  be  limited  to,  all  program expenditures of the school district,

   36  including the salaries and benefits of teachers and any school  adminis-

   37  trators  or  supervisors  who  spend a majority of their time performing

   38  teaching duties{, and}.  THE TRANSPORTATION OPERATIONS  COMPONENT  SHALL

   39  INCLUDE  all  transportation  operating  expenses. The capital component

   40  shall include, but need not be limited to, all  transportation  capital,

   41  debt  service, and lease expenditures; costs resulting from judgments in

   42  tax certiorari proceedings or the payment of  awards  from  court  judg-

   43  ments,  administrative  orders or settled or compromised claims; and all

   44  facilities costs of the  school  district,  including  facilities  lease

   45  expenditures,  the annual debt service and total debt for all facilities

   46  financed by bonds and notes of the school district,  and  the  costs  of

   47  construction, acquisition, reconstruction, rehabilitation or improvement

   48  of  school  buildings, provided that such budget shall include a rental,

   49  operations and maintenance section that includes base rent costs,  total

   50  rent  costs, operation and maintenance charges, cost per square foot for

   51  each facility leased by the school district, and any  and  all  expendi-

   52  tures   associated   with   custodial  salaries  and  benefits,  service

   53  contracts, supplies, utilities, and maintenance and  repairs  of  school

   54  facilities.  For  the  purposes  of  the development of a budget for the

   55  {nineteen hundred ninety-eight--ninety-nine} TWO THOUSAND SIX--TWO THOU-

   56  SAND SEVEN school year,  the  board  of  education  shall  separate  the

                                                                               

       A. 8700                            10                                   

                                                                               

    1  district`s  program,  TRANSPORTATION OPERATIONS, capital and administra-

    2  tive costs for the  {nineteen  hundred  ninety-seven--ninety-eight}  TWO

    3  THOUSAND  FIVE--TWO  THOUSAND  SIX  school  year in the manner as if the

    4  budget for such year had been presented in {three} FOUR components.     

    5    6.  Each  year, the board of education shall prepare a school district

    6  report card, pursuant to regulations of the commissioner, and shall make

    7  it publicly available by transmitting it to local newspapers of  general

    8  circulation, appending it to copies of the proposed budget made publicly

    9  available  as  required  by law, making it available for distribution at

   10  the annual meeting, and otherwise disseminating it as  required  by  the

   11  commissioner.  Such  report  card shall include measures of the academic

   12  performance of the school district, on a school  by  school  basis,  and

   13  measures of the fiscal performance of the district, as prescribed by the

   14  commissioner.  Pursuant  to  regulations of the commissioner, the report

   15  card shall also compare these measures to  statewide  averages  for  all

   16  public  schools, and statewide averages for public schools of comparable

   17  wealth and need, developed by the commissioner. Such report  card  shall

   18  include,  at a minimum, any information of the school district regarding

   19  pupil performance and expenditure per pupil required to be  included  in

   20  the  annual  report  by  the regents to the governor and the legislature

   21  pursuant to section two hundred fifteen-a  of  this  chapter,  INCLUDING

   22  DATA  ABOUT  THE PLACEMENT OF THE DISTRICT`S STUDENTS WITH DISABILITIES,

   23  AS REQUIRED IN SUBDIVISION TWO OF SUCH SECTION; and any  other  informa-

   24  tion  required  by the commissioner. {School districts (i) identified as

   25  having fifteen percent or more of their students in  special  education,

   26  or (ii) which have fifty percent or more of their students with disabil-

   27  ities in special education programs or services sixty percent or more of

   28  the  school  day  in  a  general education building, or (iii) which have

   29  eight percent or more of their students  with  disabilities  in  special

   30  education  programs  in  public or private separate educational settings

   31  shall indicate on their school district  report  card  their  respective

   32  percentages  as defined in this paragraph and paragraphs (i) and (ii) of

   33  this subdivision as compared to the statewide average.}                 

   34    a. Each year, commencing with the proposed budget for  the  two  thou-

   35  sand--two thousand one school year, the board of education shall prepare

   36  a property tax report card, pursuant to regulations of the commissioner,

   37  and shall make it publicly available by transmitting it to local newspa-

   38  pers  of  general  circulation,  appending  it to copies of the proposed

   39  budget made publicly available as required by law, making  it  available

   40  for  distribution  at the annual meeting, and otherwise disseminating it

   41  as required by the commissioner. Such report card shall include: (i) the

   42  amount of total spending and total estimated school tax levy that  would

   43  result  from adoption of the proposed budget and the percentage increase

   44  or decrease in total spending and total school tax levy from the  school

   45  district  budget  for  the preceding school year; and (ii) the projected

   46  enrollment growth for the school year for which the budget is  prepared,

   47  and  the  percentage  change  in  enrollment from the previous year; and

   48  (iii) the percentage increase OR DECREASE in the consumer  price  index,

   49  as  defined  in  {paragraph  c  of  this}  subdivision  ONE  OF  SECTION

   50  THIRTY-SIX HUNDRED TWO OF THIS CHAPTER.                                 

   51    S 6-a. Paragraph c of subdivision 7 of section 1716 of  the  education

   52  law is REPEALED.                                                        

   53    S  7.  The  opening  paragraph  and  paragraph a of subdivision 2-a of

   54  section 2022 of the education law, the opening paragraph as amended  and

   55  paragraph a as added by section 3 of part A of chapter 60 of the laws of

   56  2000, are amended to read as follows:                                   

                                                                               

       A. 8700                            11                                   

                                                                               

    1    Every  common,  union  free, central, central high school district and

    2  city school district to which this article applies shall mail  a  school

    3  budget  notice  to all qualified voters of the school district after the

    4  date of the budget hearing, but no later than  six  days  prior  to  the

    5  annual  meeting  and  election  or  special  district meeting at which a

    6  school budget vote will occur. The school budget  notice  shall  compare

    7  the percentage increase or decrease in total spending under the proposed

    8  budget  over total spending under the school district budget adopted for

    9  the current school year, with the percentage increase or decrease in the

   10  consumer price index, {from January first of the prior  school  year  to

   11  January  first of the current school year} AS DEFINED IN SUBDIVISION ONE

   12  OF SECTION THIRTY-SIX HUNDRED  TWO  OF  THIS  CHAPTER,  and  shall  also

   13  include  the information required by paragraphs a and b of this subdivi-

   14  sion. The notice shall also set forth the date, time and  place  of  the

   15  school  budget vote, in the same manner as in the notice of annual meet-

   16  ing. Such notice shall be in a form prescribed by the commissioner.     

   17    a. Commencing with the proposed budget for the two  thousand  one--two

   18  thousand  two  school year, such notice shall also include a description

   19  of how total spending and the tax levy resulting from the proposed budg-

   20  et would compare with a projected contingency budget adopted pursuant to

   21  section two thousand twenty-three of this article,  assuming  that  such

   22  contingency  budget  is  adopted  on  the  same  day  as the vote on the

   23  proposed budget. Such comparison shall be  in  total  and  by  component

   24  (program,  TRANSPORTATION  OPERATIONS,  capital and administrative), and

   25  shall include a statement of the  assumptions  made  in  estimating  the

   26  projected contingency budget.                                           

   27    S  8.  Subdivision 4 of section 2023 of the education law, as added by

   28  section 24 of part A of chapter 436 of the laws of 1997, is  amended  to

   29  read as follow:                                                         

   30    4. a. The contingency budget shall not result in a percentage increase

   31  in  total  spending  over the district`s total spending under the school

   32  district budget for the prior school year that exceeds  the  lesser  of:

   33  (i) the result obtained when one hundred twenty percent is multiplied by

   34  the  percentage  increase  OR DECREASE in the consumer price index, with

   35  the result rounded to two decimal places; or (ii) four percent.         

   36    b. The following types of expenditures shall be disregarded in  deter-

   37  mining total spending:                                                  

   38    (i) expenditures resulting from a tax certiorari proceeding;          

   39    (ii) expenditures resulting from a court order or judgment against the

   40  school district;                                                        

   41    (iii) emergency expenditures that are certified by the commissioner as

   42  necessary as a result of damage to, or destruction of, a school building

   43  or school equipment;                                                    

   44    (iv)  capital  expenditures  resulting from the construction, acquisi-

   45  tion, reconstruction, rehabilitation or improvement  of  school  facili-

   46  ties,  including  debt  service  and  lease expenditures, subject to the

   47  approval of the qualified voters where required by law;                 

   48    (v) expenditures in the contingency budget attributable  to  projected

   49  increases  in  public  school enrollment, which, for the purpose of this

   50  subdivision, may include increases attributable  to  the  enrollment  of

   51  students  attending a pre-kindergarten program established in accordance

   52  with section thirty-six hundred two-e of this chapter,  to  be  computed

   53  based  upon  an  increase  in enrollment from the year prior to the base

   54  year for which the budget is being adopted to the base  year  for  which

   55  the  budget  is being adopted, provided that where the trustees or board

   56  of education have documented evidence that a further increase in enroll-

                                                                               

       A. 8700                            12                                   

                                                                               

    1  ment will occur during the school year for which the contingency  budget

    2  is prepared because of new construction, inception of a pre-kindergarten

    3  program,  growth  or  similar  factors, the expenditures attributable to

    4  such additional enrollment may also be disregarded; {and}               

    5    (vi)  INCREASES  IN  EXPENDITURES  ATTRIBUTABLE TO THE SCHOOL DISTRICT

    6  SOUND BASIC  EDUCATION  REVENUE  REQUIREMENT,  PURSUANT  TO  SUBDIVISION

    7  TWELVE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER; AND           

    8    (VII)  non-recurring  expenditures in the prior year`s school district

    9  budget.                                                                 

   10    c. The resolution of the trustee,  board  of  trustees,  or  board  of

   11  education adopting a contingency budget shall incorporate by reference a

   12  statement  specifying  the  projected percentage increase or decrease in

   13  total spending for the school  year,  and  explaining  the  reasons  for

   14  disregarding  any  portion of an increase in spending in formulating the

   15  contingency budget.                                                     

   16    d. Notwithstanding any other provision of law  to  the  contrary,  the

   17  trustees  or  board  of  education  shall  not be authorized to amend or

   18  revise a final contingency budget where such amendment or revision would

   19  result in total spending in excess of the spending limitation  in  para-

   20  graph  {(a)}  A of this subdivision; provided that the trustees or board

   21  of education shall be authorized to add appropriations for:             

   22    (i) the categories of expenditures excluded from the spending  limita-

   23  tions  set  forth  in  paragraph {(b)} B of this subdivision, subject to

   24  approval of the qualified voters where required by law;                 

   25    (ii) expenditures resulting from an actual increase in enrollment over

   26  the  projected  enrollment  used  to  develop  the  contingency  budget,

   27  provided  that  where such actual enrollment is less than such projected

   28  enrollment, it shall be the duty of the trustees or board  of  education

   29  to use such excess funds to reduce taxes; and                           

   30    (iii) the expenditure of gifts, grants in aid for specific purposes or

   31  for general use or insurance proceeds authorized pursuant to subdivision

   32  two of {sudivision} SECTION seventeen hundred eighteen of this {chapter}

   33  TITLE in addition to that which has been previously budgeted.           

   34    e. For the purposes of this subdivision:                              

   35    (i)  "Base school year" shall mean the school year immediately preced-

   36  ing the school year for which the contingency budget is prepared.       

   37    (ii) "{Consumer} PERCENTAGE INCREASE OR DECREASE IN THE CONSUMER price

   38  index" shall {mean the percentage that represents  the  average  of  the

   39  national  consumer price indexes determined by the United States depart-

   40  ment of labor, for the twelve month period preceding  January  first  of

   41  the current year} BE AS DEFINED IN SUBDIVISION ONE OF SECTION THIRTY-SIX

   42  HUNDRED TWO OF THIS CHAPTER.                                            

   43    (iii)  "Current year" shall mean the calendar year in which the school

   44  district budget is submitted for a vote of the qualified voters.        

   45    (iv) "Resident public school district enrollment" shall mean the resi-

   46  dent public school enrollment of the school district as defined in para-

   47  graph n of subdivision one of section thirty-six  hundred  two  of  this

   48  chapter.                                                                

   49    (v)  "Total  spending"  shall mean the total amount appropriated under

   50  the school district budget for the school year.                         

   51    S 9. Subdivisions 3 and 7 of section  2601-a  of  the  education  law,

   52  subdivision 3 as amended by section 10-c of part L of chapter 405 of the

   53  laws  of  1999  and subdivision 7 as added by chapter 474 of the laws of

   54  1996, are amended to read as follows:                                   

   55    3. The board of education shall prepare  a  proposed  school  district

   56  budget for the ensuing year in accordance with the provisions of section

                                                                               

       A. 8700                            13                                   

                                                                               

    1  seventeen  hundred  sixteen  of  this  chapter, including all provisions

    2  relating to required notices and appendices to the statement of expendi-

    3  tures. No board of education shall incur  a  school  district  liability

    4  except  as  authorized  by  the  provisions of section seventeen hundred

    5  eighteen  of  this  {chapter}  TITLE.  Such  proposed  budget  shall  be

    6  presented in {three} FOUR components: a program component, A TRANSPORTA-

    7  TION  OPERATIONS  COMPONENT,  a  capital component and an administrative

    8  component which shall be separately delineated in accordance with  regu-

    9  lations  of  the  commissioner  after  consultation  with  local  school

   10  district officials. The administrative component shall include, but need

   11  not be limited to, office and central administrative expenses, traveling

   12  expenses and salaries and benefits of all certified  school  administra-

   13  tors  and  supervisors  who  spend  a  majority of their time performing

   14  administrative or supervisory duties, any and all  expenditures  associ-

   15  ated  with  the  operation  of the board of education, the office of the

   16  superintendent of schools, general administration, the  school  business

   17  office, consulting costs not directly related to direct student services

   18  and  programs,  planning  and  all  other administrative activities. The

   19  program component shall include, but need not be limited to, all program

   20  expenditures of the school district, including the salaries and benefits

   21  of teachers and any school administrators or  supervisors  who  spend  a

   22  majority  of their time performing teaching duties{, and}. THE TRANSPOR-

   23  TATION OPERATIONS COMPONENT SHALL INCLUDE all  transportation  operating

   24  expenses.  The  capital component shall include, but need not be limited

   25  to, all transportation capital, debt service,  and  lease  expenditures;

   26  costs  resulting  from  judgments  in  tax certiorari proceedings or the

   27  payment of awards from court judgments, administrative orders or settled

   28  or compromised claims; and all facilities costs of the school  district,

   29  including  facilities  lease  expenditures,  the annual debt service and

   30  total debt for all facilities financed by bonds and notes of the  school

   31  district,  and  the  costs of construction, acquisition, reconstruction,

   32  rehabilitation or improvement of school buildings,  provided  that  such

   33  budget  shall  include a rental, operations and maintenance section that

   34  includes base rent costs, total rent costs,  operation  and  maintenance

   35  charges,  cost  per  square  foot for each facility leased by the school

   36  district, and any and all expenditures associated with  custodial  sala-

   37  ries  and  benefits, service contracts, supplies, utilities, and mainte-

   38  nance and repairs of school facilities. For the purposes of the develop-

   39  ment of a budget for the {nineteen  hundred  ninety-seven--ninety-eight}

   40  TWO THOUSAND SIX--TWO THOUSAND SEVEN school year, the board of education

   41  shall  separate  its  program,  TRANSPORTATION  OPERATIONS,  capital and

   42  administrative costs for the {nineteen hundred ninety-six--ninety-seven}

   43  TWO THOUSAND FIVE--TWO THOUSAND SIX school year in the manner as if  the

   44  budget  for  such  year  had  been presented in {three} FOUR components.

   45  Except as provided in subdivision four of this section, nothing in  this

   46  section  shall  preclude  the  board, in its discretion, from submitting

   47  additional items of expenditure to the voters for approval  as  separate

   48  propositions  or  the  voters  from  submitting propositions pursuant to

   49  sections two thousand eight and two thousand thirty-five of this  {chap-

   50  ter} TITLE.                                                             

   51    7.  Each  year, the board of education shall prepare a school district

   52  report card, pursuant to regulations of the commissioner, and shall make

   53  it publicly available by transmitting it to local newspapers of  general

   54  circulation, appending it to copies of the proposed budget made publicly

   55  available  as  required  by law, making it available for distribution at

   56  the annual meeting, and otherwise disseminating it as  required  by  the

                                                                               

       A. 8700                            14                                   

                                                                               

    1  commissioner.  Such  report  card shall include measures of the academic

    2  performance of the school district, on a school  by  school  basis,  and

    3  measures of the fiscal performance of the district, as prescribed by the

    4  commissioner.  Pursuant  to  regulations of the commissioner, the report

    5  card shall also compare these measures to  statewide  averages  for  all

    6  public  schools, and statewide averages for public schools of comparable

    7  wealth and need, developed by the commissioner. Such report  card  shall

    8  include,  at a minimum, any information on the school district regarding

    9  pupil performance and expenditure per pupil required to be  included  in

   10  the  annual  report  by  the regents to the governor and the legislature

   11  pursuant to section two hundred fifteen-a  of  this  chapter,  INCLUDING

   12  DATA  ABOUT  THE PLACEMENT OF THE DISTRICT`S STUDENTS WITH DISABILITIES,

   13  AS REQUIRED IN SUBDIVISION TWO OF SUCH SECTION; and any  other  informa-

   14  tion  required  by the commissioner. {School districts (i) identified as

   15  having fifteen percent or more of their students in  special  education,

   16  or (ii) which have fifty percent or more of their students with disabil-

   17  ities in special education programs or services sixty percent or more of

   18  the  school  day  in  a  general education building, or (iii) which have

   19  eight percent or more of their students  with  disabilities  in  special

   20  education  programs  in  public or private separate educational settings

   21  shall indicate on their school district  report  card  their  respective

   22  percentages  as defined in this paragraph and paragraphs (i) and (ii) of

   23  this subdivision as compared to the statewide average.}                 

   24    S 9-a. Subdivision 1 of section 2856 of the education law, as added by

   25  chapter 4 of the laws of 1998, is amended to read as follows:           

   26    1. The enrollment of  students  attending  charter  schools  shall  be

   27  included  in  the enrollment, attendance, MEMBERSHIP and, if applicable,

   28  count of students with disabilities, LIMITED  ENGLISH  PROFICIENT  COUNT

   29  AND  ELIGIBLE APPLICANTS FOR FREE AND REDUCED PRICE LUNCH PROGRAM of the

   30  school district in which the pupil resides.  The  charter  school  shall

   31  report  all  such  data to the school districts of residence in a timely

   32  manner. Each school district shall report  such  enrollment,  attendance

   33  and  count  of  students with disabilities to the department. The school

   34  district of residence shall pay directly to the charter school for  each

   35  student  enrolled  in  the  charter  school  who  resides  in the school

   36  district an amount equal to one hundred percent of the amount calculated

   37  pursuant to paragraph f of subdivision one of section thirty-six hundred

   38  two of this chapter for the school district for the year  prior  to  the

   39  base year increased by the percentage change in the state total approved

   40  operating  expense  calculated pursuant to subdivision eleven of section

   41  thirty-six hundred two of this chapter from two years prior to the  base

   42  year  to  the  base year. The school district shall also pay directly to

   43  the charter school any federal or state aid attributable  to  a  student

   44  with a disability attending charter school in proportion to the level of

   45  services  for  such  student  with  a disability that the charter school

   46  provides  directly  or  indirectly.  Notwithstanding  anything  in  this

   47  section  to  the  contrary, amounts payable pursuant to this subdivision

   48  may be reduced pursuant to an agreement between the school and the char-

   49  ter entity set forth in the charter.  Payments  made  pursuant  to  this

   50  subdivision  shall  be  made by the school district in six substantially

   51  equal installments each year beginning on the first business day of July

   52  and every two months thereafter. Amounts payable under this  subdivision

   53  shall  be  determined  by the commissioner. Amounts payable to a charter

   54  school in its first year of operation shall be based on the  projections

   55  of  initial-year  enrollment  set forth in the charter. Such projections

   56  shall be reconciled with  the  actual  enrollment  at  the  end  of  the

                                                                               

       A. 8700                            15                                   

                                                                               

    1  school`s first year of operation, and any necessary adjustments shall be

    2  made to payments during the school`s second year of operation.          

    3    S  10.  Paragraph  d of subdivision 1 of section 3602 of the education

    4  law, as amended by section 7 of part H of chapter  83  of  the  laws  of

    5  2002, is amended to read as follows:                                    

    6    d.  AVERAGE  DAILY  PUPIL COUNTS. (1) "Average daily attendance" shall

    7  mean the total number of attendance days of pupils in a public school of

    8  a school district plus the total number of  instruction  days  for  such

    9  pupils   receiving  homebound  instruction  including  pupils  receiving

   10  instruction through a two-way telephone communication system, divided by

   11  the number of days the district school was in  session  as  provided  in

   12  this  section.  {Except for the purposes of subdivision thirteen of this

   13  section, the} THE attendance of pupils with disabilities attending under

   14  the provisions of paragraph c of subdivision two of  section  forty-four

   15  hundred  one of this chapter shall be added to average daily attendance.

   16  Equivalent attendance shall mean the quotient of  the  total  number  of

   17  student  hours of instruction in programs in a public school of a school

   18  district or a board of cooperative educational  services  leading  to  a

   19  high  school  diploma or a high school equivalency diploma as defined in

   20  regulations of the commissioner for pupils under the age  of  twenty-one

   21  not  on  a  regular  day school register of the district, divided by one

   22  thousand. {Except for the  purposes  of  subdivision  thirteen  of  this

   23  section,  average} AVERAGE daily attendance shall include the equivalent

   24  attendance of the school district. For the purposes of secondary  school

   25  weighting,  such  equivalent  attendance  shall be considered as average

   26  daily attendance in grades  seven  through  twelve.  In  computing  such

   27  attendance,  school  districts  may,  with  the commissioner`s approval,

   28  exclude attendance  for  those  days  on  which  school  attendance  was

   29  adversely affected because of an epidemic or manmade or natural disaster

   30  or  act  of terrorism. In computing such attendance, the school district

   31  shall: (1) determine the number of religious holidays which  fall  on  a

   32  school  day within a school year according to regulations established by

   33  the commissioner, such religious holidays to be duly recognized as  such

   34  for  purposes of this section by duly adopted resolution of the board of

   35  education; (2) deduct the aggregate attendance on such  religious  holi-

   36  days  from  the  total  aggregate attendance, by grade level; (3) deduct

   37  such religious holidays from the total number of  days  of  session,  by

   38  grade level; and (4) compute the average daily attendance for the school

   39  year.                                                                   

   40    (2)  "AVERAGE DAILY MEMBERSHIP" SHALL MEAN THE TOTAL NUMBER OF ENROLL-

   41  MENT DAYS OF PUPILS IN A PUBLIC SCHOOL OF A  SCHOOL  DISTRICT  PLUS  THE

   42  TOTAL  NUMBER OF ENROLLMENT DAYS OF PRESCHOOL PUPILS WHO ARE ENROLLED IN

   43  A PROGRAM OPERATED BY THE SCHOOL DISTRICT FOR PRE-KINDERGARTEN, COMPUTED

   44  IN ACCORDANCE WITH REGULATIONS OF  THE  COMMISSIONER  ADOPTED  FOR  SUCH

   45  PURPOSE,  PLUS  THE  TOTAL  NUMBER  OF  INSTRUCTION DAYS FOR SUCH PUPILS

   46  RECEIVING HOMEBOUND INSTRUCTION INCLUDING PUPILS  RECEIVING  INSTRUCTION

   47  THROUGH  A TWO-WAY TELEPHONE COMMUNICATION SYSTEM, DIVIDED BY THE NUMBER

   48  OF DAYS THE DISTRICT SCHOOL WAS IN SESSION AS PROVIDED IN THIS  SECTION.

   49  THE  ENROLLMENT  DAYS  OF  PUPILS  WITH DISABILITIES ATTENDING UNDER THE

   50  PROVISIONS OF PARAGRAPHS C, D, E, F, G, H, I AND L OF SUBDIVISION TWO OF

   51  SECTION FORTY-FOUR HUNDRED ONE OF THIS CHAPTER, SHALL BE ADDED TO  AVER-

   52  AGE  DAILY  MEMBERSHIP. EQUIVALENT ATTENDANCE SHALL MEAN THE QUOTIENT OF

   53  THE TOTAL NUMBER OF STUDENT HOURS OF INSTRUCTION IN PROGRAMS IN A PUBLIC

   54  SCHOOL OF A SCHOOL  DISTRICT  OR  A  BOARD  OF  COOPERATIVE  EDUCATIONAL

   55  SERVICES  LEADING  TO A HIGH SCHOOL DIPLOMA OR A HIGH SCHOOL EQUIVALENCY

   56  DIPLOMA AS DEFINED IN REGULATIONS OF THE COMMISSIONER FOR  PUPILS  UNDER

                                                                               

       A. 8700                            16                                   

                                                                               

    1  THE  AGE  OF  TWENTY-ONE  NOT  ON  A  REGULAR DAY SCHOOL REGISTER OF THE

    2  DISTRICT, DIVIDED  BY  ONE  THOUSAND.  AVERAGE  DAILY  MEMBERSHIP  SHALL

    3  INCLUDE  THE  EQUIVALENT  ATTENDANCE  OF THE SCHOOL DISTRICT. ENROLLMENT

    4  DAYS,  FOR  THE  PURPOSES OF THIS SUBPARAGRAPH, SHALL MEAN THE AGGREGATE

    5  NUMBER OF POSSIBLE DAYS OF INSTRUCTION  IN  THE  SCHOOL  YEAR  OCCURRING

    6  BETWEEN  THE  FIRST DAY OF SUCH STUDENT`S ENROLLMENT AND THE LAST DAY OF

    7  SUCH STUDENT`S ENROLLMENT.                                              

    8    S 11. Paragraphs e, q, s, t, u, v and w of subdivision  1  of  section

    9  3602 of the education law are REPEALED.                                 

   10    S  12.  Paragraphs  f,  g, i, k, l, subparagraph 2 of paragraph n, and

   11  paragraphs p, r and x of subdivision 1 of section 3602 of the  education

   12  law,  paragraph  f as amended by section 11-a of part C of chapter 58 of

   13  the laws of 1998, paragraph g as amended by section  31  of  part  A  of

   14  chapter  436  of the laws of 1997, paragraphs i, k and subparagraph 2 of

   15  paragraph n as amended and paragraph x as added by chapter  474  of  the

   16  laws  of 1996, subparagraph 2 of paragraph k as amended by section 33 of

   17  part A of chapter 436 of the laws of 1997, paragraph 1 as added by chap-

   18  ter 57 of the laws of 1993, paragraph p as amended by chapter 260 of the

   19  laws of 1993 and paragraph r as amended by section 9 of part C of  chap-

   20  ter 57 of the laws of 2004, are amended to read as follows:             

   21    f.  "Expense per pupil", FOR AID PAYABLE IN THE TWO THOUSAND FIVE--TWO

   22  THOUSAND SIX SCHOOL YEAR AND THEREAFTER, shall mean  approved  operating

   23  expense for the year prior to the base year divided by the sum, computed

   24  using  year  prior to the base year pupil counts, WITHOUT ANY ADJUSTMENT

   25  BY THE ENROLLMENT INDEX, of the total aidable pupil units {plus weighted

   26  pupils with handicapping conditions}  FOR  SOUND  BASIC  EDUCATION  AID,

   27  COMPUTED  PURSUANT  TO  THE  PROVISIONS  OF  SUBDIVISION  EIGHT  OF THIS

   28  SECTION.  Expense per pupil for each borough in the city school district

   29  of the city of New York shall be the expense per  pupil  of  the  entire

   30  city  school  district. {For aid payable in the nineteen hundred ninety-

   31  eight--ninety-nine school year, expense per pupil for  the  city  school

   32  district  of  the  city  of  Buffalo shall be five thousand nine hundred

   33  eighty-five.}                                                           

   34    g. "Summer session pupils" shall mean those pupils attending  approved

   35  programs  of  instruction  operated by the district during the months of

   36  July and August in accordance with the regulations  promulgated  by  the

   37  commissioner.   IN A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION IN

   38  EXCESS OF ONE MILLION INHABITANTS, SUCH APPROVED PROGRAMS SHALL  INCLUDE

   39  THOSE  WHERE  STUDENTS  ARE PROVIDED SUMMER SCHOOL SERVICES FOR AT LEAST

   40  THREE HOURS PER DAY BY A CERTIFIED TEACHER AT SUMMER CAMPS DESIGNATED BY

   41  THE CHANCELLOR OF SUCH CITY SCHOOL DISTRICT.                            

   42    i. "Pupil wealth ratio" shall mean the number computed to three  deci-

   43  mals  without  rounding  obtained  when  actual  valuation  of  a school

   44  district divided by the DISTRICT`S SOUND BASIC  EDUCATION  total  wealth

   45  pupil  units  is  divided  by the statewide average actual valuation per

   46  SOUND BASIC EDUCATION total wealth pupil unit as computed by the commis-

   47  sioner in accordance with the provisions of this section. Such statewide

   48  average actual valuation per SOUND BASIC EDUCATION  total  wealth  pupil

   49  unit shall be established each year by the commissioner using the latest

   50  single year actual valuation computed under paragraph c of this subdivi-

   51  sion.  Such  statewide  average  shall  be  transmitted  to  the  school

   52  districts. Such statewide  average  shall  be  rounded  to  the  nearest

   53  hundred and shall include the actual valuation and SOUND BASIC EDUCATION

   54  total wealth pupil units of all school districts eligible for aid pursu-

   55  ant  to  this  section  except  central  high  school districts. For the

   56  purposes of calculating such statewide average the  data  for  the  city

                                                                               

       A. 8700                            17                                   

                                                                               

    1  school  district  of  the  city of New York shall be citywide data.  THE

    2  ACTUAL VALUATION OF A CENTRAL HIGH SCHOOL DISTRICT SHALL EQUAL  THE  SUM

    3  OF THE ACTUAL VALUATION OF EACH OF ITS COMPONENT SCHOOL DISTRICTS.      

    4    k.  {(1)  For  aid payable in the nineteen hundred ninety-six--ninety-

    5  seven school year, "alternate pupil wealth ratio" shall mean the  number

    6  computed  to  three decimals without rounding obtained when the adjusted

    7  gross income of a school district for the calendar  year  prior  to  the

    8  calendar  year  in which the base year began divided by the total wealth

    9  pupil units of such district is divided by the statewide adjusted  gross

   10  income  per total wealth pupil unit. Such statewide average gross income

   11  per pupil shall be established each year by the commissioner  and  shall

   12  be  transmitted  to  school  districts by May first. For the purposes of

   13  this paragraph, the income data shall be  computed  in  accordance  with

   14  regulations  adopted  by  the commissioner of taxation and finance based

   15  upon personal income tax returns for the calendar year two  years  prior

   16  to  the  calendar  year  in  which the current school year commences, as

   17  reported to the commissioner in February of the base year, including the

   18  results of the temporary school district address review  validation  and

   19  correction  process  or,  commencing  with  aid  payable in the nineteen

   20  hundred ninety-four--ninety-five school year, the results of the  perma-

   21  nent  computerized  statewide  school  district address match and income

   22  verification system. The income of the city school district of the  city

   23  of  New York shall be the sum of the income of the boroughs of the city.

   24  Such statewide average shall be rounded to the nearest hundred and shall

   25  include the adjusted gross income and total wealth pupil  units  of  all

   26  school  districts  eligible  for  aid  pursuant  to  this section except

   27  central high school districts. For  the  purposes  of  calculating  such

   28  statewide  average  the data for the city school district of the city of

   29  New York shall be citywide data. The adjusted gross income of a  central

   30  high school district shall equal the sum of the adjusted gross income of

   31  each of its component school districts.                                 

   32    (2) For aid payable in the nineteen hundred ninety-seven--ninety-eight

   33  school  year  and thereafter, "alternate} "ALTERNATE pupil wealth ratio"

   34  shall mean the  number  computed  to  three  decimals  without  rounding

   35  obtained  when  the  adjusted  gross income of a school district for the

   36  calendar year two years prior to the calendar year  in  which  the  base

   37  year began divided by the SOUND BASIC EDUCATION total wealth pupil units

   38  of  such  district is divided by the statewide adjusted gross income per

   39  SOUND BASIC EDUCATION total wealth pupil unit.  Such  statewide  average

   40  gross income per pupil shall be established each year by the commission-

   41  er  and  shall  be  transmitted to school districts. For the purposes of

   42  this paragraph, the income data shall be  computed  in  accordance  with

   43  regulations  adopted  by  the commissioner of taxation and finance based

   44  upon personal income tax returns for the calendar year three years prior

   45  to the calendar year in which the  current  school  year  commences,  as

   46  reported  to  the  commissioner by September of the base year, including

   47  {the results of the temporary school district address review  validation

   48  and  correction  process or, commencing with aid payable in the nineteen

   49  hundred ninety-four--ninety-five school year,} the results of the perma-

   50  nent computerized statewide school district  address  match  and  income

   51  verification  system. The income of the city school district of the city

   52  of New York shall be the sum of the income of the boroughs of the  city.

   53  Such statewide average shall be rounded to the nearest hundred and shall

   54  include the adjusted gross income and SOUND BASIC EDUCATION total wealth

   55  pupil  units  of  all school districts eligible for aid pursuant to this

   56  section except central high school districts. For the purposes of calcu-

                                                                               

       A. 8700                            18                                   

                                                                               

    1  lating such statewide average the data for the city school  district  of

    2  the  city  of New York shall be citywide data. The adjusted gross income

    3  of a central high school district shall equal the sum  of  the  adjusted

    4  gross income of each of its component school districts.                 

    5    l. "{Combined} SOUND BASIC EDUCATION COMBINED wealth ratio" shall mean

    6  the  number  computed  to  three decimals without rounding obtained when

    7  fifty per centum of the pupil wealth ratio is added to fifty per  centum

    8  of the alternate pupil wealth ratio.                                    

    9    (2) "Public school district enrollment" shall mean the sum of: (1) the

   10  number  of  children on a regular enrollment register of a public school

   11  district on such date; (2) the number of children  eligible  to  receive

   12  home  instruction in the school district on such date; (3) the number of

   13  children for whom equivalent attendance must  be  computed  pursuant  to

   14  this subdivision on such date; (4) the number of children with handicap-

   15  ping conditions who are residents of such district who are registered on

   16  such  date to attend programs under the provisions of paragraph c, D, E,

   17  F, G, H, I OR L, of subdivision two of section forty-four hundred one of

   18  this chapter; (5) the number of children eligible to receive educational

   19  services on such date but not claimed for aid  pursuant  to  subdivision

   20  seven  of  section  thirty-two  hundred two of this chapter; and (6) the

   21  number of children registered on such date to attend programs (i) pursu-

   22  ant to subdivision two of section three hundred fifty-five of this chap-

   23  ter or (ii) pursuant to an agreement between the city school district of

   24  the city of New York and Hunter College pursuant  to  section  sixty-two

   25  hundred sixteen of this chapter.                                        

   26    p.  "Percent  of  eligible  applicants  for the free and reduced price

   27  lunch program" shall REPRESENT STUDENTS FROM ECONOMICALLY  DISADVANTAGED

   28  BACKGROUNDS  AND SHALL mean (1) FOR AID PAYABLE THROUGH THE TWO THOUSAND

   29  FIVE--TWO THOUSAND SIX SCHOOL YEAR, the quotient of (i)  the  number  of

   30  pupils in kindergarten through grade six attending the public schools of

   31  the district who have applications on file or who are listed on a direct

   32  certification  letter  confirming their eligibility for participation in

   33  the state and federally funded  free  and  reduced  price  school  lunch

   34  program  on  the  date  enrollment  was  counted in accordance with this

   35  subdivision for the year prior to the base year, except that such  count

   36  shall be simply as of October of the year prior to the base year for aid

   37  payable  in  the nineteen hundred ninety-three--ninety-four and nineteen

   38  hundred ninety-four--ninety-five  school  years,  divided  by  (ii)  the

   39  number  of pupils in kindergarten through grade six on a regular enroll-

   40  ment register of a public school district on  the  date  enrollment  was

   41  counted  in  accordance  with this subdivision for the year prior to the

   42  base year, computed to four decimals without rounding, and multiplied by

   43  one hundred to be expressed as a percent to two decimals.               

   44    (2) FOR AID PAYABLE COMMENCING WITH THE TWO THOUSAND SIX--TWO THOUSAND

   45  SEVEN SCHOOL YEAR, THE QUOTIENT OF (I) THE NUMBER OF PUPILS  IN  KINDER-

   46  GARTEN  THROUGH  GRADE FIVE ATTENDING THE PUBLIC SCHOOLS OF THE DISTRICT

   47  WHO HAVE APPLICATIONS ON FILE OR WHO ARE  LISTED  ON  A  DIRECT  CERTIF-

   48  ICATION  LETTER  CONFIRMING  THEIR  ELIGIBILITY FOR PARTICIPATION IN THE

   49  STATE AND FEDERALLY FUNDED FREE AND REDUCED PRICE SCHOOL  LUNCH  PROGRAM

   50  ON  THE  DATE ENROLLMENT WAS COUNTED IN ACCORDANCE WITH THIS SUBDIVISION

   51  FOR THE YEAR PRIOR TO THE BASE YEAR, EXCEPT THAT  SUCH  COUNT  SHALL  BE

   52  SIMPLY  AS OF OCTOBER OF THE YEAR PRIOR TO THE BASE YEAR FOR AID PAYABLE

   53  IN THE NINETEEN HUNDRED NINETY-THREE--NINETY-FOUR AND  NINETEEN  HUNDRED

   54  NINETY-FOUR--NINETY-FIVE  SCHOOL  YEARS,  DIVIDED  BY (II) THE NUMBER OF

   55  PUPILS IN KINDERGARTEN THROUGH GRADE FIVE ON A REGULAR ENROLLMENT REGIS-

   56  TER OF A PUBLIC SCHOOL DISTRICT ON THE DATE ENROLLMENT  WAS  COUNTED  IN

                                                                               

       A. 8700                            19                                   

                                                                               

    1  ACCORDANCE  WITH  THIS  SUBDIVISION FOR THE YEAR PRIOR TO THE BASE YEAR,

    2  COMPUTED TO FOUR  DECIMALS  WITHOUT  ROUNDING,  AND  MULTIPLIED  BY  ONE

    3  HUNDRED TO BE EXPRESSED AS A PERCENT TO TWO DECIMALS.                   

    4    (3)  For central high school districts, such percent shall be computed

    5  using the sum of the eligible applicants and enrollment of the component

    6  districts of the central high school  district;  for  any  other  school

    7  district not operating a school lunch program in the applicable year for

    8  its kindergarten through grade {six} FIVE pupils, the commissioner shall

    9  {use  the  district`s  percent  of  pupils with compensatory educational

   10  needs as} DEVELOP A PROXY MEASURE BASED ON THE CORRELATION  BETWEEN  THE

   11  LATEST  DECENNIAL CENSUS DATA FOR SCHOOL AGE CHILDREN IN POVERTY AND the

   12  percent of eligible applicants for the  free  and  reduced  price  lunch

   13  program  IN  DISTRICTS  OPERATING  SUCH A PROGRAM, AND SHALL EXTRAPOLATE

   14  SUCH CORRELATION TO PRODUCE SUCH  PROXY  MEASURE  USING  SUCH  DECENNIAL

   15  CENSUS DATA FOR DISTRICTS NOT OPERATING SUCH A PROGRAM.                 

   16    r.  "Sparsity  {count} FACTOR", for districts operating a kindergarten

   17  through grade twelve school program, shall mean the {product of (i)  the

   18  base  year  public  school  enrollment  of  the  district  and (ii) the}

   19  quotient, computed to three decimals without rounding, of  the  positive

   20  remainder of twenty-five minus the enrollment per square mile divided by

   21  {fifty and nine tenths} ONE HUNDRED FIFTY, but not less than {zero} ONE.

   22  Enrollment per square mile shall {be} MEAN the quotient, computed to two

   23  decimals without rounding, of the public school enrollment of the school

   24  district  on  the  date  enrollment  was counted in accordance with this

   25  subdivision for the base  year  divided  by  the  square  miles  of  the

   26  district, as determined by the commissioner.                            

   27    x.  "Enrollment index" shall be computed by dividing the public school

   28  enrollment for the current year by public school enrollment for the base

   29  year, both as defined in paragraph  n  of  this  subdivision,  with  the

   30  result  carried to three places without rounding, USING CURRENT AID YEAR

   31  DEFINITIONS OF ENROLLMENT FOR BOTH YEARS.                               

   32    S 13. Subdivision 1 of section 3602 of the education law is amended by

   33  adding ten new paragraphs h, bb, cc, dd, ee, ff, gg, hh, ii  and  jj  to

   34  read as follows:                                                        

   35    H. (1) "RESIDENT ENROLLMENT WEALTH RATIO FOR TRANSPORTATION AID" SHALL

   36  MEAN  THE  NUMBER  COMPUTED  TO THREE DECIMALS WITHOUT ROUNDING OBTAINED

   37  WHEN ACTUAL VALUATION OF A SCHOOL DISTRICT  DIVIDED  BY  THE  DISTRICTS`

   38  TOTAL  RESIDENT  ENROLLMENT, AS DEFINED IN THIS PARAGRAPH, IS DIVIDED BY

   39  THE STATEWIDE AVERAGE ACTUAL VALUATION PER TOTAL RESIDENT ENROLLMENT  AS

   40  COMPUTED  BY  THE COMMISSIONER IN ACCORDANCE WITH THE PROVISIONS OF THIS

   41  SECTION.  SUCH STATEWIDE AVERAGE ACTUAL  VALUATION  PER  TOTAL  RESIDENT

   42  ENROLLMENT  SHALL BE ESTABLISHED EACH YEAR BY THE COMMISSIONER USING THE

   43  LATEST SINGLE YEAR ACTUAL VALUATION COMPUTED UNDER PARAGRAPH C  OF  THIS

   44  SUBDIVISION.  SUCH  STATEWIDE AVERAGE SHALL BE TRANSMITTED TO THE SCHOOL

   45  DISTRICTS. SUCH STATEWIDE  AVERAGE  SHALL  BE  ROUNDED  TO  THE  NEAREST

   46  HUNDRED  AND  SHALL  INCLUDE  THE  ACTUAL  VALUATION  AND TOTAL RESIDENT

   47  ENROLLMENT OF ALL SCHOOL DISTRICTS ELIGIBLE FOR  AID  PURSUANT  TO  THIS

   48  SECTION EXCEPT CENTRAL HIGH SCHOOL DISTRICTS. FOR THE PURPOSES OF CALCU-

   49  LATING  SUCH  STATEWIDE AVERAGE THE DATA FOR THE CITY SCHOOL DISTRICT OF

   50  THE CITY OF NEW YORK SHALL BE CITYWIDE DATA.  THE ACTUAL VALUATION OF  A

   51  CENTRAL HIGH SCHOOL DISTRICT SHALL EQUAL THE SUM OF THE ACTUAL VALUATION

   52  OF EACH OF ITS COMPONENT SCHOOL DISTRICTS.                              

   53    (2)  "TOTAL  RESIDENT  ENROLLMENT"  FOR THE PURPOSES OF THIS PARAGRAPH

   54  SHALL MEAN THE SUM OF THE DISTRICT`S  RESIDENT  PUBLIC  SCHOOL  DISTRICT

   55  ENROLLMENT,  THE  RESIDENT  NONPUBLIC SCHOOL DISTRICT ENROLLMENT AND THE

                                                                               

       A. 8700                            20                                   

                                                                               

    1  ADDITIONAL PUBLIC SCHOOL ENROLLMENT OF THE SCHOOL DISTRICT FOR THE  YEAR

    2  PRIOR TO THE BASE YEAR.                                                 

    3    BB.  "SOUND  BASIC  EDUCATION"  SHALL MEAN AN EDUCATIONAL PROGRAM THAT

    4  ADEQUATELY PREPARES STUDENTS FOR COMPETITIVE EMPLOYMENT AND TO  FUNCTION

    5  PRODUCTIVELY  AS  CIVIC  PARTICIPANTS. THE TOTAL REVENUE REQUIREMENTS OF

    6  SUCH AN EDUCATIONAL PROGRAM SHALL ADDRESS THE ADDED COSTS RELATED TO THE

    7  EXTRAORDINARY NEEDS OF CERTAIN STUDENTS AT ALL LEVELS, AND IN PARTICULAR

    8  IN ORDER TO PROVIDE THEM A MEANINGFUL HIGH SCHOOL EDUCATION,  AS  DETER-

    9  MINED BY THE COSTING-OUT STUDIES PRESENTED IN CAMPAIGN FOR FISCAL EQUITY

   10  V. STATE AND TO BE ASCERTAINED FROM TIME TO TIME PURSUANT TO SUBDIVISION

   11  THIRTY-SIX OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER.               

   12    CC.  "GEOGRAPHIC  COST  OF  EDUCATION INDEX" FOR SOUND BASIC EDUCATION

   13  SHALL MEAN: (1) FOR AID PAYABLE IN THE TWO THOUSAND  FIVE--TWO  THOUSAND

   14  SIX THROUGH TWO THOUSAND EIGHT--TWO THOUSAND NINE SCHOOL YEARS, FOR EACH

   15  SCHOOL  DISTRICT,  THE  IMPLICIT  GEOGRAPHIC  COST OF EDUCATION INDEX AS

   16  CALCULATED BY THE AMERICAN INSTITUTES OF RESEARCH AND MANAGEMENT  ANALY-

   17  SIS  AND PLANNING, INC., FOR USE IN "THE NEW YORK ADEQUACY STUDY: DETER-

   18  MINING THE COST OF PROVIDING ALL CHILDREN IN NEW YORK AN ADEQUATE EDUCA-

   19  TION,"  WITH  THOSE  INDEX  NUMBERS  ADJUSTED  AND  PUBLISHED   BY   THE

   20  COMMISSIONER TO ESTABLISH AN INDEX NUMBER OF ONE AS THE BASE RATHER THAN

   21  USING  THE  AVERAGE AS A BASE. SUCH GEOGRAPHIC COST OF EDUCATION INDICES

   22  SHALL BE PUBLISHED BY THE COMMISSIONER AND MADE AVAILABLE TO ALL  INTER-

   23  ESTED  PARTIES  ON  THE  INTERNET  ON  THE  STATE EDUCATION DEPARTMENT`S

   24  WEBSITE.                                                                

   25    (2) FOR AID PAYABLE COMMENCING WITH THE  QUADRENNIAL  CYCLE  BEGINNING

   26  WITH  THE  TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR, AND FOR EACH

   27  SUBSEQUENT QUADRENNIAL CYCLE, THE GEOGRAPHIC COST OF EDUCATION INDEX FOR

   28  EACH SCHOOL DISTRICT SHALL BE DETERMINED PURSUANT TO  SUBDIVISION  THIR-

   29  TY-SIX OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER.                   

   30    (3)  IN  THE  EVENT  THAT  TWO  OR MORE SCHOOL DISTRICTS REORGANIZE IN

   31  ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION FOURTEEN OF THIS  SECTION,

   32  THE  COMMISSIONER  SHALL  DETERMINE THE APPROPRIATE COMPOSITE GEOGRAPHIC

   33  COST OF EDUCATION INDEX FOR SUCH NEWLY REORGANIZED DISTRICT.            

   34    DD. "STATEWIDE-UNWEIGHTED SOUND BASIC EDUCATION COST PER PUPIL"  SHALL

   35  MEAN:                                                                   

   36    (1) FOR AID PAYABLE IN THE TWO THOUSAND FIVE--TWO THOUSAND SIX THROUGH

   37  TWO  THOUSAND  EIGHT--TWO  THOUSAND  NINE  SCHOOL YEAR, BASED ON INITIAL

   38  COSTING-OUT  STUDIES,  EIGHT  THOUSAND  THIRTY-SEVEN  DOLLARS  ($8,037),

   39  ADJUSTED ANNUALLY BY THE CPI-U.                                         

   40    (2)  FOR  AID  PAYABLE  IN SUBSEQUENT SCHOOL YEARS, SUCH STATEWIDE-UN-

   41  WEIGHTED SOUND BASIC EDUCATION COST PER PUPIL SHALL BE  ESTABLISHED  FOR

   42  THE  INITIAL YEAR OF A QUADRENNIAL CYCLE PURSUANT TO SUBDIVISION THIRTY-

   43  SIX OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER, ADJUSTED ANNUALLY  BY

   44  CPI-U.                                                                  

   45    EE.  "SCHOOL  DISTRICT  SOUND BASIC EDUCATION COST PER PUPIL" SHALL BE

   46  DETERMINED BY  MULTIPLYING  (1)  THE  STATEWIDE-UNWEIGHTED  SOUND  BASIC

   47  EDUCATION COST PER PUPIL BY (2) THE DISTRICT`S GEOGRAPHIC COST OF EDUCA-

   48  TION INDEX BY (3) THE SPARSITY FACTOR. SUCH RESULT SHALL BE TRUNCATED TO

   49  WHOLE DOLLARS. NOTWITHSTANDING ANY INCONSISTENT PROVISIONS OF THIS CHAP-

   50  TER,  EXPENSES  INCURRED  BY  A  SCHOOL DISTRICT IN IMPLEMENTING A SOUND

   51  BASIC EDUCATION SHALL BE DEEMED ORDINARY CONTINGENT EXPENSES.           

   52    FF. "SOUND BASIC EDUCATION AIDS BASE," FOR PURPOSES OF  THIS  SECTION,

   53  (1)  FOR  AID  PAYABLE IN THE TWO THOUSAND FIVE--TWO THOUSAND SIX SCHOOL

   54  YEAR, AND THEREAFTER, SHALL MEAN THE  SUM  OF  THE  FOLLOWING  AIDS  AND

   55  GRANTS PAYABLE IN THE TWO THOUSAND FOUR--TWO THOUSAND FIVE SCHOOL YEAR:

                                                                               

       A. 8700                            21                                   

                                                                               

    1    (I)  TUITION  ADJUSTMENT  AID PURSUANT TO THE APPLICABLE PROVISIONS IN

    2  EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN PARAGRAPH G OF SUBDIVISION

    3  TWO OF THIS SECTION;                                                    

    4    (II)  MINOR  MAINTENANCE  AND  REPAIR  AID  PURSUANT TO THE APPLICABLE

    5  PROVISIONS IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN  SUBDIVISION

    6  SIX-D OF THIS SECTION;                                                  

    7    (III) EXTRAORDINARY NEEDS AID PURSUANT TO THE APPLICABLE PROVISIONS IN

    8  EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN PARAGRAPH E OF SUBDIVISION

    9  TWELVE OF THIS SECTION;                                                 

   10    (IV)  FULL  DAY KINDERGARTEN CONVERSION AID PURSUANT TO THE APPLICABLE

   11  PROVISIONS IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN  SUBDIVISION

   12  TWELVE-A OF THIS SECTION;                                               

   13    (V)  COMPREHENSIVE OPERATING AID PURSUANT TO THE APPLICABLE PROVISIONS

   14  IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION TWELVE-B OF

   15  THIS SECTION;                                                           

   16    (VI) OPERATING GROWTH AID PURSUANT TO  THE  APPLICABLE  PROVISIONS  IN

   17  EFFECT  FOR  AID  PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION THIRTEEN OF

   18  THIS SECTION;                                                           

   19    (VII) SHARED SERVICES SAVINGS INCENTIVE  PURSUANT  TO  THE  APPLICABLE

   20  PROVISIONS  IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN PARAGRAPH I

   21  OF SUBDIVISION FOURTEEN OF THIS SECTION;                                

   22    (VIII) REGULAR PUBLIC EXCESS COST AID PURSUANT TO SUBDIVISION NINETEEN

   23  OF THIS  SECTION  LESS  ANY  AID  PAYABLE  PURSUANT  TO  THE  APPLICABLE

   24  PROVISIONS  IN  EFFECT  FOR AID PAYABLE IN SUCH SCHOOL YEAR IN PARAGRAPH

   25  FIVE OF SUCH SUBDIVISION;                                               

   26    (IX) TAX LIMITATION AID  PURSUANT  TO  THE  APPLICABLE  PROVISIONS  IN

   27  EFFECT  FOR AID PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION TWENTY-ONE OF

   28  THIS SECTION;                                                           

   29    (X)  LIMITED  ENGLISH  PROFICIENCY  AID  PURSUANT  TO  THE  APPLICABLE

   30  PROVISIONS  IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION

   31  TWENTY-TWO OF THIS SECTION;                                             

   32    (XI) COMPUTER HARDWARE AID PURSUANT TO THE  APPLICABLE  PROVISIONS  IN

   33  EFFECT  FOR AID PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION TWENTY-SIX OF

   34  THIS SECTION;                                                           

   35    (XII) SMALL CITY AID PURSUANT TO THE APPLICABLE PROVISIONS  IN  EFFECT

   36  FOR  AID PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION THIRTY-ONE-A OF THIS

   37  SECTION;                                                                

   38    (XIII) EDUCATIONALLY RELATED SUPPORT  SERVICES  AID  PURSUANT  TO  THE

   39  APPLICABLE  PROVISIONS  IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN

   40  SUBDIVISION THIRTY-TWO OF THIS SECTION;                                 

   41    (XIV) CLASS SIZE REDUCTION AID PURSUANT TO THE  APPLICABLE  PROVISIONS

   42  IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION THIRTY-SEV-

   43  EN OF THIS SECTION;                                                     

   44    (XV) SUMMER SCHOOL AID PURSUANT TO THE APPLICABLE PROVISIONS IN EFFECT

   45  FOR  AID  PAYABLE IN SUCH SCHOOL YEAR IN SUBDIVISION THIRTY-NINE OF THIS

   46  SECTION;                                                                

   47    (XVI)  UNIVERSAL  PREKINDERGARTEN  AID  PURSUANT  TO  THE   APPLICABLE

   48  PROVISIONS  IN  EFFECT  FOR  AID  PAYABLE IN SUCH SCHOOL YEAR IN SECTION

   49  THIRTY-SIX HUNDRED TWO-E OF THIS PART;                                  

   50    (XVII) TEACHERS OF TOMORROW PURSUANT TO THE APPLICABLE  PROVISIONS  IN

   51  EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN PARAGRAPH B OF SUBDIVISION

   52  TWO OF SECTION THIRTY-SIX HUNDRED TWELVE OF THIS PART AND SECTION EIGHT-

   53  Y-THREE  OF  PART  C  OF CHAPTER FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND

   54  FOUR;                                                                   

   55    (XVIII) MAGNET SCHOOLS AID PURSUANT TO  SUBDIVISION  FIVE  OF  SECTION

   56  THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTICLE;                           

                                                                               

       A. 8700                            22                                   

                                                                               

    1    (XIX) CATEGORICAL READING GRANTS PURSUANT TO THE APPLICABLE PROVISIONS

    2  IN  EFFECT  FOR  AID  PAYABLE  IN SUCH SCHOOL YEAR IN SUBDIVISION SIX OF

    3  SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTICLE;                   

    4    (XX)  IMPROVING  PUPIL  PERFORMANCE  GRANTS PURSUANT TO THE APPLICABLE

    5  PROVISIONS IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN  SUBDIVISION

    6  SEVEN OF SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTICLE;          

    7    (XXI)  REGULAR  PRIVATE  EXCESS  COST  AID  PURSUANT TO THE APPLICABLE

    8  PROVISIONS IN EFFECT FOR AID PAYABLE IN SUCH SCHOOL YEAR IN PARAGRAPH  A

    9  OF  SUBDIVISION THREE OF SECTION FORTY-FOUR HUNDRED FIVE OF THIS CHAPTER

   10  LESS AN AMOUNT CALCULATED FOR SUCH STUDENTS WITH DISABILITIES AS  THOUGH

   11  THEY  HAD  BEEN ELIGIBLE FOR AID PURSUANT TO THE PROVISIONS OF PARAGRAPH

   12  FIVE OF SUBDIVISION NINETEEN OF THIS SECTION AND FOR WHOM  THE  COST  OF

   13  TUITION  IN THE BASE YEAR WOULD HAVE BEEN ELIGIBLE FOR SUCH AID HAD SUCH

   14  PROVISIONS APPLIED TO SUCH STUDENTS;                                    

   15    (XXII)  TEACHER  SUPPORT  GRANTS  PURSUANT   TO   FORMER   SUBDIVISION

   16  TWENTY-SEVEN OF THIS SECTION AND SECTION EIGHTY-ONE OF PART C OF CHAPTER

   17  FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND FOUR;                           

   18    (XXIII)    TEACHER-MENTOR   INTERN   PROGRAM   PURSUANT   TO   SECTION

   19  EIGHTY-THREE-A OF PART C OF CHAPTER FIFTY-SEVEN AND SECTION ONE OF  PART

   20  CC OF CHAPTER FIFTY-NINE OF THE LAWS OF TWO THOUSAND FOUR;              

   21    (2)  THE  AMOUNT  COMPUTED  PURSUANT  TO THIS PARAGRAPH FOR ANY SCHOOL

   22  DISTRICT SHALL BE DEEMED FINAL AND NOT SUBJECT TO  CHANGE  ON  OR  AFTER

   23  JULY  FIRST  OF  THE SCHOOL YEAR FOLLOWING THE LAST SCHOOL YEAR IN WHICH

   24  THE COMMISSIONER MAY LAST ACCEPT AND CERTIFY FOR PAYMENT ANY  ADDITIONAL

   25  CLAIM  FOR  SUCH SCHOOL YEAR PURSUANT TO PARAGRAPH A OF SUBDIVISION FIVE

   26  OF SECTION THIRTY-SIX HUNDRED FOUR OF THIS PART.                        

   27    GG. "OFFSET TO SOUND BASIC EDUCATION AID" SHALL MEAN THE  SUM  OF  (1)

   28  TEXTBOOK  AID PAYABLE TO THE SCHOOL DISTRICT IN THE CURRENT YEAR ATTRIB-

   29  UTABLE TO PUBLIC SCHOOL ENROLLMENT PURSUANT TO  SUBDIVISIONS  FOUR,  SIX

   30  AND SEVEN OF SECTION SEVEN HUNDRED ONE OF THIS CHAPTER AND SUBPARAGRAPHS

   31  FOUR  AND  SIX OF PARAGRAPH N OF THIS SUBDIVISION; (2) LIBRARY MATERIALS

   32  AID PAYABLE TO THE SCHOOL DISTRICT IN THE CURRENT YEAR  ATTRIBUTABLE  TO

   33  PUBLIC  SCHOOL  ENROLLMENT PURSUANT TO SUBDIVISION FOUR OF SECTION SEVEN

   34  HUNDRED ELEVEN OF THIS CHAPTER AND SUBPARAGRAPHS TWO AND  SIX  OF  PARA-

   35  GRAPH  N  OF  THIS SUBDIVISION; AND (3) COMPUTER SOFTWARE AID PAYABLE TO

   36  THE SCHOOL DISTRICT IN THE CURRENT YEAR ATTRIBUTABLE  TO  PUBLIC  SCHOOL

   37  ENROLLMENT  PURSUANT TO SUBDIVISION FOUR OF SECTION SEVEN HUNDRED FIFTY-

   38  ONE OF THIS CHAPTER AND SUBPARAGRAPHS TWO AND SIX OF PARAGRAPH N OF THIS

   39  SUBDIVISION.                                                            

   40    HH. "LOCAL REVENUE FOR SCHOOL PURPOSES" SHALL MEAN (1) SCHOOL DISTRICT

   41  TOTAL REVENUES FROM REAL  PROPERTY  AND  NON-PROPERTY  TAXES  LEVIED  OR

   42  RECEIVED  FOR  THE  BASE  YEAR  FOR SCHOOL PURPOSES EXCLUSIVE OF LIBRARY

   43  PURPOSES AND EXCLUSIVE OF ANY BALANCES  IN  EXCESS  OF  SIX  PERCENT  OF

   44  GENERAL  FUND  EXPENSE  REMAINING IN THE GENERAL FUND OF THE DISTRICT AT

   45  THE END OF THE BASE YEAR, AND (I)  PLUS  ANY  TUITION  RECEIVED  BY  THE

   46  SCHOOL  DISTRICT  FOR  THE EDUCATION OF NON-RESIDENT STUDENTS; (II) PLUS

   47  PAYMENTS IN LIEU OF PROPERTY TAXES DETERMINED PURSUANT TO  SECTION  FOUR

   48  HUNDRED  EIGHTY-FIVE  OF  THE  REAL PROPERTY TAX LAW, AND FUNDS RECEIVED

   49  FROM THE FEDERAL GOVERNMENT, ON BEHALF OF DEPENDENT CHILDREN  OF  UNITED

   50  STATES  MILITARY  PERSONNEL; (2) IN THE INSTANCE OF A FISCALLY DEPENDENT

   51  CITY SCHOOL DISTRICT, SUCH REVENUE  SHALL  MEAN  SUCH  DISTRICT`S  TOTAL

   52  GENERAL  FUND  EXPENDITURES,  PLUS INTERFUND TRANSFERS OUTGOING FROM THE

   53  GENERAL FUND, AND PLUS GENERAL FUND RESERVE EXPENDITURES, LESS  ANY  AND

   54  ALL  GENERAL  FUND NONTAX REVENUE OF SUCH CITY SCHOOL DISTRICT WHICH HAS

   55  BEEN PAID AND IDENTIFIED BY AN ORIGINAL PAYER AS BEING  SPECIFICALLY  ON

   56  BEHALF OF SUCH CITY SCHOOL DISTRICT, AND LESS ANY AND ALL NONTAX REVENUE

                                                                               

       A. 8700                            23                                   

                                                                               

    1  OF  THE  CITY UPON WHICH SUCH CITY SCHOOL DISTRICT IS FISCALLY DEPENDENT

    2  WHICH HAS BEEN PAID AND IDENTIFIED BY AN ORIGINAL PAYER AS BEING SPECIF-

    3  ICALLY ON BEHALF OF SUCH CITY SCHOOL DISTRICT BUT  WHICH  HAS  NOT  BEEN

    4  IDENTIFIED AS REVENUE OF SUCH CITY SCHOOL DISTRICT, AND LESS ANY AND ALL

    5  OTHER  GENERAL  FUND  REVENUES  OF  SUCH  CITY SCHOOL DISTRICT WHICH ARE

    6  DETERMINED BY THE COMMISSIONER TO BE NONTAX REVENUE  OF  THE  CITY  UPON

    7  WHICH SUCH CITY SCHOOL DISTRICT IS FISCALLY DEPENDENT; AND (3) PROVIDED,

    8  HOWEVER, THAT REVENUES RAISED BY A SCHOOL DISTRICT, WHICH IS A COMPONENT

    9  DISTRICT OF A CENTRAL HIGH SCHOOL DISTRICT, IN SUPPORT OF A CENTRAL HIGH

   10  SCHOOL  DISTRICT  SHALL  BE  ATTRIBUTED  TO  SUCH  CENTRAL  HIGH  SCHOOL

   11  DISTRICT, WHERE THE SUM OF SUCH RECEIPTS FROM ITS COMPONENT DISTRICTS BY

   12  THE CENTRAL HIGH SCHOOL DISTRICT SHALL CONSTITUTE THE LOCAL REVENUE  FOR

   13  SCHOOL  PURPOSES  OF THE CENTRAL HIGH SCHOOL DISTRICT, AND THE REMAINDER

   14  OF THE REVENUES RAISED BY EACH OF THE COMPONENT SCHOOL  DISTRICTS  SHALL

   15  BE  CONSIDERED  THE  LOCAL REVENUE FOR SCHOOL PURPOSES OF SUCH COMPONENT

   16  SCHOOL DISTRICT.                                                        

   17    II. "LOCAL REVENUE FOR SOUND BASIC  EDUCATION  PURPOSES"  SHALL  EQUAL

   18  LOCAL  REVENUE FOR SCHOOL PURPOSES EXCLUDING THAT PORTION RAISED FOR (1)

   19  TRANSPORTATION OF PUPILS TO AND FROM SCHOOL DURING  THE  REGULAR  SCHOOL

   20  YEAR  INCLUSIVE  OF  CAPITAL  OUTLAYS  AND  DEBT SERVICE THEREFOR; (2) A

   21  PORTION OF ANY  PAYMENTS  FOR  TRANSPORTATION  OF  PUPILS  TO  AND  FROM

   22  DISTRICT  OPERATED SUMMER SCHOOL PROGRAMS PURSUANT TO SUBDIVISION SIX OF

   23  SECTION THIRTY-SIX HUNDRED TWENTY-TWO-A OF THIS  ARTICLE,  INCLUSIVE  OF

   24  CAPITAL  OUTLAYS AND DEBT SERVICE THEREFOR, EQUAL TO THE PRODUCT OF SUCH

   25  EXPENDITURES MULTIPLIED BY THE QUOTIENT OF THE TOTAL APPORTIONMENT AFTER

   26  THE PRORATION, IF ANY, REQUIRED BY SUCH SUBDIVISION SIX OF SUCH  SECTION

   27  DIVIDED  BY  THE  TOTAL  APPORTIONMENT  PRIOR TO SUCH PRORATION; (3) ANY

   28  PAYMENTS FOR  CAPITAL  OUTLAY  AND  DEBT  SERVICE  FOR  SCHOOL  BUILDING

   29  PURPOSES, PROVIDED, HOWEVER, THAT IN THE CASE OF A SCHOOL DISTRICT WHICH

   30  HAS  ENTERED INTO A CONTRACT WITH THE STATE UNIVERSITY PURSUANT TO PARA-

   31  GRAPH O OF SUBDIVISION TWO OF SECTION THREE HUNDRED FIFTY-FIVE  OF  THIS

   32  CHAPTER, UNDER WHICH THE SCHOOL DISTRICT MAKES PAYMENTS TO STATE UNIVER-

   33  SITY  ON ACCOUNT OF CAPITAL OUTLAY RELATING TO CERTAIN CHILDREN RESIDING

   34  IN SUCH SCHOOL DISTRICT, SUCH PAYMENTS SHALL NOT BE SO EXCLUDED; (4) ANY

   35  PAYMENTS FOR CAFETERIA OR SCHOOL LUNCH PROGRAMS; (5) ANY  PAYMENTS  FROM

   36  THE  PROCEEDS  OF  THE  SALE OF OBLIGATIONS IN THE CAPITAL FUND; (6) ANY

   37  PAYMENTS MADE TO BOARDS OF COOPERATIVE EDUCATIONAL SERVICES AND TO COUN-

   38  TY VOCATIONAL EDUCATION AND EXTENSION BOARDS FOR  PURPOSES  OR  PROGRAMS

   39  FOR  WHICH  AN  APPORTIONMENT IS PAID PURSUANT TO OTHER SECTIONS OF THIS

   40  CHAPTER, EXCEPT THAT PAYMENTS ATTRIBUTABLE  TO  ELIGIBLE  STUDENTS  WITH

   41  DISABILITIES  AND  INELIGIBLE  PUPILS RESIDING IN NONCOMPONENT DISTRICTS

   42  SHALL BE INCLUDED IN LOCAL REVENUE FOR SOUND BASIC  EDUCATION  PURPOSES,

   43  PROVIDED,  HOWEVER,  THAT  ANY SCHOOL DISTRICT EXPENDITURES MADE FOR ANY

   44  STUDENT WITH DISABILITIES ELIGIBLE FOR HIGH COST AID PURSUANT  TO  PARA-

   45  GRAPH  FIVE  SUBDIVISION NINETEEN OF THIS SECTION SHALL BE EXCLUDED; (7)

   46  ANY EXPENDITURES MADE FOR PROGRAMS OR SERVICES PURSUANT  TO  SUBDIVISION

   47  SEVENTEEN  OF  THIS  SECTION; (8) ANY EXPENDITURES MADE IN SUPPORT OF AN

   48  APPORTIONMENT OR PAYMENT RECEIVED FROM THE  STATE  FOR  EXPERIMENTAL  OR

   49  SPECIAL  PROGRAMS  PAID  UNDER PROVISIONS OTHER THAN THOSE FOUND IN THIS

   50  SECTION AND OTHER THAN ANY APPORTIONMENTS OR PAYMENTS RECEIVED FROM  THE

   51  STATE BY THE CITY SCHOOL DISTRICT OF THE CITY OF YONKERS FOR THE PURPOSE

   52  OF  FUNDING AN EDUCATIONAL IMPROVEMENT PROGRAM PURSUANT TO A COURT ORDER

   53  AND OTHER THAN ANY OTHER STATE GRANTS IN AID IDENTIFIED BY  THE  COMMIS-

   54  SIONER  FOR  GENERAL USE AS SPECIFIED BY THE BOARD OF EDUCATION PURSUANT

   55  TO SUBDIVISION TWO OF SECTION SEVENTEEN HUNDRED EIGHTEEN OF  THIS  CHAP-

   56  TER;  (9) ANY EXPENDITURE MADE IN SUPPORT OF AN APPORTIONMENT OR PAYMENT

                                                                               

       A. 8700                            24                                   

                                                                               

    1  RECEIVED FROM THE FEDERAL GOVERNMENT FOR  SPECIFIC  PROGRAMS;  (10)  ANY

    2  PAYMENTS MADE FOR WHICH AN APPORTIONMENT IS DISALLOWED PURSUANT TO REGU-

    3  LATIONS  OF THE COMMISSIONER; (11) ANY EXPENDITURES MADE FOR ACCOUNTING,

    4  TABULATION,  OR  COMPUTER  EQUIPMENT,  IN EXCESS OF TEN THOUSAND DOLLARS

    5  UNLESS SUCH EXPENDITURES SHALL HAVE BEEN SPECIFICALLY  APPROVED  BY  THE

    6  COMMISSIONER; (12) ANY EXPENDITURES MADE FOR PERSONS TWENTY-ONE YEARS OF

    7  AGE OR OVER ATTENDING EMPLOYMENT PREPARATION EDUCATION PROGRAMS PURSUANT

    8  TO  SUBDIVISION  TWENTY-FOUR OF THIS SECTION; (13) TUITION RECEIVED FROM

    9  OTHER DISTRICTS; AND (14) ANY OTHER SIMILAR EXPENDITURES AS THE  COMMIS-

   10  SIONER MAY SO DESIGNATE.                                                

   11    jj.  (1)  "Consumer  price  index" or "CPI-U" for the purposes of this

   12  article shall mean the regional consumer price index for the  New  York,

   13  New  York-Northeastern  New  Jersey  area,  based upon the index for all

   14  urban consumers. (2) "CPI-U for the current year" shall mean  the  CPI-U

   15  for  the  calendar  year preceding January first of the current year, as

   16  published by the United States bureau of labor  statistics.  (3)  "CPI-U

   17  for  the base year" shall mean the CPI-U for the calendar year preceding

   18  January first of the base year, as published by the United States bureau

   19  of labor statistics. (4) "Percentage increase or decrease in the consum-

   20  er price index", commencing with the  presentation  of  proposed  school

   21  district  budgets  and  a property tax report cards for the two thousand

   22  six--two thousand seven school year, shall mean the quotient,  expressed

   23  as  a  percent,  without  decimals, resulting when (i) the CPI-U for the

   24  current year minus the CPI-U for the base year, is divided by  (ii)  the

   25  CPI-U for the base year.                                                

   26    S 14. Subdivision 2-b of section 3602 of the education law is REPEALED

   27  and two new subdivisions 2-b and 2-c are added to read as follows:      

   28    2-B.    COMPUTATION OF ADJUSTED AVERAGE DAILY MEMBERSHIP. FOR PURPOSES

   29  OF THIS SECTION ADJUSTED AVERAGE DAILY MEMBERSHIP OF A  SCHOOL  DISTRICT

   30  FOR  ANY  SCHOOL  YEAR SHALL BE COMPUTED AS FOLLOWS: A. ADJUSTED AVERAGE

   31  DAILY MEMBERSHIP SHALL BE DETERMINED BY USING THE AVERAGE DAILY  MEMBER-

   32  SHIP,  COMPUTED  PURSUANT  TO THIS SECTION, OF PUBLIC SCHOOL PUPILS IN A

   33  FULL-DAY PRE-KINDERGARTEN,  AND  KINDERGARTEN  AND  GRADES  ONE  THROUGH

   34  TWELVE AS THE BASIC UNIT, WITH THE ATTENDANCE OF SUCH PUPILS IN ONE-HALF

   35  DAY  PRE-KINDERGARTEN OR KINDERGARTEN MEASURED AT ONE-HALF OF SUCH BASIC

   36  UNIT. THE SUM OF ALL SUCH UNITS SHALL  BE  THE  ADJUSTED  AVERAGE  DAILY

   37  MEMBERSHIP.                                                             

   38    B.  IN ANY INSTANCE WHERE A PUPIL IS A RESIDENT OF ANOTHER STATE OR AN

   39  INDIAN PUPIL IS A RESIDENT OF ANY PORTION OF A RESERVATION LOCATED WHOL-

   40  LY OR PARTLY WITHIN THE BORDERS OF THE  STATE  PURSUANT  TO  SUBDIVISION

   41  FOUR  OF  SECTION  FORTY-ONE  HUNDRED  ONE OF THIS CHAPTER OR A PUPIL IS

   42  LIVING ON FEDERALLY OWNED LAND  OR  PROPERTY,  SUCH  PUPIL`S  MEMBERSHIP

   43  SHALL BE COUNTED AS PART OF THE ADJUSTED AVERAGE DAILY MEMBERSHIP OF THE

   44  SCHOOL DISTRICT IN WHICH SUCH PUPIL IS ENROLLED.                        

   45    2-C.  COMPUTATION  OF  SOUND BASIC EDUCATION TOTAL WEALTH PUPIL UNITS.

   46  A. SOUND BASIC EDUCATION TOTAL WEALTH PUPIL UNITS SHALL EQUAL  THE  SUM,

   47  FOR  THE  YEAR PRIOR TO THE BASE YEAR, OF (1) THE RESIDENT AVERAGE DAILY

   48  MEMBERSHIP EQUAL TO  THE  ADJUSTED  AVERAGE  DAILY  MEMBERSHIP  FOR  THE

   49  COMPUTED  PURSUANT  TO  THIS  SECTION,  PLUS SUCH MEMBERSHIP OF RESIDENT

   50  PUPILS ATTENDING  PUBLIC  SCHOOL  ELSEWHERE,  LESS  SUCH  MEMBERSHIP  OF

   51  NONRESIDENT  PUPILS  PLUS  SUCH  MEMBERSHIP OF RESIDENT PUPILS ATTENDING

   52  FULL-TIME IN BOARD OF COOPERATIVE EDUCATIONAL  SERVICES  (NOT  OTHERWISE

   53  SPECIFICALLY  INCLUDED);  AND  (2)  THE PRODUCT OF SUCH RESIDENT AVERAGE

   54  DAILY MEMBERSHIP MULTIPLIED BY THE PERCENT OF  ELIGIBLE  APPLICANTS  FOR

   55  THE  FREE  AND  REDUCED PRICE LUNCH PROGRAM, EXPRESSED AS A WHOLE NUMBER

   56  WITHOUT ROUNDING.                                                       

                                                                               

       A. 8700                            25                                   

                                                                               

    1    B. NATIVE AMERICAN PUPILS OF A RESERVATION ATTENDING PUBLIC SCHOOL, OR

    2  PUPILS LIVING ON THE UNITED STATES MILITARY RESERVATION  AT  WEST  POINT

    3  ATTENDING  PUBLIC  SCHOOL,  SHALL BE DEEMED TO BE RESIDENT PUPILS OF THE

    4  DISTRICT PROVIDING SUCH SCHOOL, FOR PURPOSES OF THIS SUBDIVISION.  WHERE

    5  A  SCHOOL  DISTRICT  HAS  ENTERED  INTO A CONTRACT WITH STATE UNIVERSITY

    6  PURSUANT TO SUBDIVISION TWO OF SECTION THREE HUNDRED FIFTY-FIVE OF  THIS

    7  CHAPTER  UNDER  WHICH THE SCHOOL DISTRICT MAKES PAYMENT IN THE NATURE OF

    8  TUITION FOR THE EDUCATION OF CERTAIN CHILDREN RESIDING IN THE  DISTRICT,

    9  SUCH CHILDREN FOR WHOM SUCH TUITION PAYMENTS ARE MADE SHALL BE DEEMED TO

   10  BE  RESIDENT  PUPILS  OF SUCH DISTRICT FOR THE PURPOSES OF THIS SUBDIVI-

   11  SION.                                                                   

   12    S 15. Paragraphs b and c of subdivision  3  of  section  3602  of  the

   13  education  law  are REPEALED and two new paragraphs b and c are added to

   14  read as follows:                                                        

   15    B. COMPUTATION OF THE TRANSPORTATION AID RATIO. THE TRANSPORTATION AID

   16  RATIO SHALL EQUAL THE SUM OF THE TRANSPORTATION SPARSITY ADJUSTMENT  AND

   17  THE  HIGHEST  OF  THE  THREE  AID RATIOS COMPUTED PURSUANT TO ANY OF THE

   18  SUBPARAGRAPHS OF THIS PARAGRAPH, PROVIDED, HOWEVER, THAT SUCH  TRANSPOR-

   19  TATION AID RATIO SHALL NOT BE MORE THAN NINETY PERCENT NOR LESS THAN SIX

   20  AND  ONE-HALF PERCENT: (I) AN AID RATIO COMPUTED BY SUBTRACTING FROM ONE

   21  THE PRODUCT COMPUTED TO THREE  DECIMALS  WITHOUT  ROUNDING  OBTAINED  BY

   22  MULTIPLYING THE SOUND BASIC EDUCATION COMBINED WEALTH RATIO BY FIFTY-ONE

   23  HUNDREDTHS, WHERE SUCH AID RATIO SHALL BE EXPRESSED AS A DECIMAL CARRIED

   24  TO  THREE  PLACES  WITHOUT  ROUNDING;  OR  (II) AN AID RATIO COMPUTED BY

   25  SUBTRACTING FROM ONE AND ONE HUNDREDTH THE  PRODUCT  COMPUTED  TO  THREE

   26  DECIMALS  WITHOUT ROUNDING OBTAINED BY MULTIPLYING THE RESIDENT WEIGHTED

   27  AVERAGE DAILY ATTENDANCE WEALTH RATIO  BY  FORTY-SIX  HUNDREDTHS,  WHERE

   28  SUCH  AID  RATIO SHALL BE EXPRESSED AS A DECIMAL CARRIED TO THREE PLACES

   29  WITHOUT ROUNDING; OR (III) EXCLUDING CITIES WITH A  POPULATION  OF  MORE

   30  THAN  ONE MILLION, AN AID RATIO COMPUTED BY SUBTRACTING FROM ONE AND ONE

   31  HUNDREDTH THE PRODUCT COMPUTED TO THREE DECIMAL PLACES WITHOUT  ROUNDING

   32  OBTAINED  BY MULTIPLYING THE RESIDENT ENROLLMENT WEALTH RATIO FOR TRANS-

   33  PORTATION AID BY FORTY-SIX HUNDREDTHS, WHERE SUCH  AID  RATIO  SHALL  BE

   34  EXPRESSED  AS  A  DECIMAL  CARRIED TO THREE PLACES WITHOUT ROUNDING. THE

   35  TRANSPORTATION SPARSITY ADJUSTMENT SHALL  EQUAL  THE  QUOTIENT  OF:  THE

   36  POSITIVE  REMAINDER  OF  TWENTY-ONE  MINUS  THE DISTRICT`S PUBLIC SCHOOL

   37  ENROLLMENT FOR THE YEAR PRIOR TO THE BASE YEAR PER SQUARE MILE,  DIVIDED

   38  BY THREE HUNDRED SEVENTEEN AND EIGHTY-EIGHT HUNDREDTHS.                 

   39    C. COMPUTATION SOUND BASIC EDUCATION AID RATIO. THE SOUND BASIC EDUCA-

   40  TION  AID RATIO SHALL BE COMPUTED BY ADDING FORTY-FOUR HUNDREDTHS TO THE

   41  PRODUCT COMPUTED TO FOUR DECIMALS WITHOUT ROUNDING OBTAINED BY MULTIPLY-

   42  ING SIXTY PERCENT BY THE REMAINDER RESULTING WHEN THE SOUND BASIC EDUCA-

   43  TION COMBINED WEALTH RATIO IS SUBTRACTED FROM ONE.  SUCH RESULT SHALL BE

   44  EXPRESSED AS A DECIMAL CARRIED TO  FOUR  PLACES  WITHOUT  ROUNDING,  BUT

   45  SHALL  NOT  BE  LESS  THAN  FIVE  HUNDREDTHS  NOR  MORE THAN NINETY-FIVE

   46  HUNDREDTHS.                                                             

   47    S 16. Subparagraphs 1 and 2 of paragraph a of subdivision 6 of section

   48  3602 of the education law, as amended by section 5 of part A of  chapter

   49  60 of the laws of 2000, are amended to read as follows:                 

   50    (1)  For new construction and the purchase of existing structures, the

   51  cost allowances shall be based upon the rated capacity of  the  building

   52  or  addition and a basic per pupil allowance of up to six thousand three

   53  hundred seventy-five dollars  adjusted  monthly  by  a  statewide  index

   54  reflecting  changes in the cost of labor and materials since July first,

   55  nineteen hundred ninety-two, established by the commissioner  of  labor,

   56  modified by an annual county or multi-county labor market composite wage

                                                                               

       A. 8700                            26                                   

                                                                               

    1  rate,  established by the commissioner of labor in consultation with the

    2  commissioner, for July first of the base year,  commencing  July  first,

    3  nineteen hundred ninety-seven for general construction contracts awarded

    4  on  or  after  July first, nineteen hundred ninety-eight, indexed to the

    5  median of such county or multi-county rates,  but  not  less  than  one.

    6  Such  base  allowance  shall  apply to a building or an addition housing

    7  grades prekindergarten through six and shall be adjusted for a  building

    8  or  an addition housing grades seven through nine by a factor of one and

    9  four-tenths, for a building or an addition housing grades seven  through

   10  twelve  by  a  factor of one and five-tenths, for a building or addition

   11  housing special education programs by a factor of two, except that where

   12  such building or addition is connected to,  or  such  space  is  located

   13  within,  a  public  school  facility  housing  programs  for nondisabled

   14  pupils, as approved by the commissioner, a  factor  of  three  shall  be

   15  used. Rated capacity of a building or an addition shall be determined by

   16  the  commissioner  based  on  space standards and other requirements for

   17  building construction specified by the commissioner, PROVIDED,  HOWEVER,

   18  (I)  SUCH  SPACE  STANDARDS SHALL BE UPDATED, EFFECTIVE APRIL FIRST, TWO

   19  THOUSAND FIVE AND EVERY FIFTH  YEAR  THEREAFTER,  BASED  ON  THE  MEDIAN

   20  VALUES  OF  SQUARE FEET PER PUPIL, ROUNDED TO THE NEAREST TEN, OF SCHOOL

   21  BUILDINGS CONSTRUCTED IN NEW YORK STATE IN THE LAST FIVE YEARS; AND (II)

   22  SUCH UPDATED SPACE STANDARDS SHALL APPLY TO PROJECTS WITH COMMISSIONER`S

   23  APPROVAL DATES COMMENCING APRIL FIRST, TWO THOUSAND FIVE; AND (III)  FOR

   24  THE  FIVE  YEAR  PERIOD  COMMENCING APRIL FIRST, TWO THOUSAND FIVE, SUCH

   25  UPDATED SPACE STANDARDS SHALL BE: ONE HUNDRED  THIRTY  SQUARE  FEET  PER

   26  PUPIL  FOR  SCHOOLS  HOUSING  GRADES  PREKINDERGARTEN  THROUGH  SIX, ONE

   27  HUNDRED SIXTY SQUARE FEET PER PUPIL FOR  SCHOOLS  HOUSING  GRADES  SEVEN

   28  THROUGH  NINE, ONE HUNDRED EIGHTY SQUARE FEET FOR SCHOOLS HOUSING GRADES

   29  SEVEN THROUGH NINE, AND OTHER SPACE STANDARDS AS THE COMMISSIONER  SHALL

   30  ESTABLISH  FOR  SCHOOLS  WITH OTHER GRADE CONFIGURATIONS.  Such assigned

   31  capacity ratings shall include, in addition to those spaces used for the

   32  instruction of pupils, those spaces which are used  for  elementary  and

   33  secondary  school  libraries,  cafeterias, prekindergarten instructional

   34  rooms, teachers` conference rooms, gymnasiums and auditoriums.  For  new

   35  construction  projects approved on or after July first, two thousand, by

   36  the voters of the school district or by the board of education of a city

   37  school district in a city with more than one hundred  twenty-five  thou-

   38  sand  inhabitants,  and/or the chancellor in a city school district in a

   39  city having a population of one million or more, such rated capacity for

   40  new buildings and additions constructed to  replace  existing  buildings

   41  that,  in  the  judgment  of  the commissioner, have not been adequately

   42  maintained and have not reached their projected  useful  life  shall  be

   43  reduced  by  the commissioner by an amount proportional to the remaining

   44  unused portion of the useful life of the  existing  buildings,  provided

   45  however  that the commissioner may waive such requirement upon a finding

   46  that replacement of the existing building is necessary  to  protect  the

   47  health  and safety of students or staff, that reconstruction and modern-

   48  ization of the existing  building  would  not  adequately  address  such

   49  health  and  safety  problems, and that the need to replace the building

   50  was not caused by failure to adequately maintain the  building.  If  the

   51  commissioner  of  labor resets the statewide index reflecting changes in

   52  the costs of labor and materials  since  July  first,  nineteen  hundred

   53  ninety-two,  the  commissioner  shall adopt regulations to supersede the

   54  basic per pupil allowance of up to six thousand three  hundred  seventy-

   55  five dollars to the imputed allowance in effect at that time.           

                                                                               

       A. 8700                            27                                   

                                                                               

    1    (2)  Where a school district has expenditures for site purchase, grad-

    2  ing or improvement of the site, original furnishings, equipment, machin-

    3  ery or apparatus, or professional fees, or other incidental  costs,  the

    4  cost allowances for new construction and the purchase of existing struc-

    5  tures  may be increased by the actual expenditures for such purposes but

    6  by not more than the product of the  applicable  cost  allowance  estab-

    7  lished  pursuant  to  subparagraph  one of this paragraph and twenty per

    8  centum for school buildings or additions housing grades  prekindergarten

    9  through  six and by not more than the product of such cost allowance and

   10  twenty-five per centum for school buildings or additions housing  grades

   11  seven  through  twelve  and  by  not  more than the product of such cost

   12  allowance and twenty-five per centum for school buildings  or  additions

   13  housing  special  education  programs  as  approved  by the commissioner

   14  PROVIDED, HOWEVER, (I) SUCH PERCENTAGES SHALL BE INCREASED TO  RECOGNIZE

   15  THE HIGHER COSTS OF BUILDING IN DENSELY POPULATED AREAS RELATED TO MULTI

   16  STORY  CONSTRUCTION  AND LIMITED STAGING AREAS; SUCH ADJUSTED INCIDENTAL

   17  COST ALLOWANCE SHALL EQUAL THE COST ALLOWANCE PLUS AN  AMOUNT  EQUAL  TO

   18  THE  QUOTIENT, NOT TO EXCEED FIFTEEN PERCENT, COMPUTED TO THREE DECIMALS

   19  WITHOUT ROUNDING, EXPRESSED AS A PERCENT  WITH  ONE  DECIMAL,  RESULTING

   20  WHEN  THE  POSITIVE  REMAINDER  OF  THE DISTRICT`S ENROLLMENT PER SQUARE

   21  MILE, BUT NOT MORE THAN TWENTY-FIVE HUNDRED, COMPUTED  ANNUALLY  BY  THE

   22  COMMISSIONER  PURSUANT  TO  SUBDIVISION  ONE  OF THIS SECTION, MINUS THE

   23  ENROLLMENT PER SQUARE MILE OF THE DISTRICT AT THE  NINETY-FIFTH  PERCEN-

   24  TILE  OF  ALL SUCH DISTRICT VALUES IN AN ORDERED LIST, IS DIVIDED BY THE

   25  PRODUCT, EXPRESSED AS A WHOLE NUMBER WITHOUT ROUNDING, OF  SIX  AND  SIX

   26  HUNDRED  SIXTY-SIX  THOUSANDTHS  (6.666)  AND  THE POSITIVE REMAINDER OF

   27  TWENTY-FIVE HUNDRED MINUS THE ENROLLMENT PER SQUARE MILE OF THE DISTRICT

   28  AT THE NINETY-FIFTH PERCENTILE  OF  SUCH  ORDERED  LIST;  AND  (II)  AND

   29  PROVIDED  FURTHER,  THAT THE ADJUSTED INCIDENTAL COST ALLOWANCE SHALL BE

   30  FURTHER INCREASED IN INSTANCES  WHERE  EXTRAORDINARY  SITE  ACQUISITION,

   31  DEMOLITION  AND  ENVIRONMENTAL  REMEDIATION  COSTS  INCURRED  BY  SCHOOL

   32  DISTRICTS WITH ENROLLMENT PER SQUARE MILE GREATER THAN ONE THOUSAND,  TO

   33  THE EXTENT THAT SUCH COSTS ARE APPROVED BY THE COMMISSIONER, WHICH COSTS

   34  EXCEED  THE  ADJUSTED  INCIDENTAL  COST ALLOWANCE FOR A NEW CONSTRUCTION

   35  PROJECT BY MORE THAN FIVE PERCENT, SUCH INCREASED COST  ALLOWANCE  SHALL

   36  BE  COMPUTED  AS FOLLOWS: FIFTY PERCENT OF SUCH EXCESS SHALL BE ADDED TO

   37  THE AMOUNT ALLOWABLE IN ACCORDANCE WITH  THE  ADJUSTED  INCIDENTAL  COST

   38  ALLOWANCE.                                                              

   39    S  17.  Paragraph  a of subdivision 7 of section 3602 of the education

   40  law, as amended by section 15 of part L of chapter 405 of  the  laws  of

   41  1999, is amended to read as follows:                                    

   42    a.  In  addition to the foregoing apportionment, there shall be appor-

   43  tioned to any school district for pupil transportation, {the  lesser  of

   44  ninety  per centum or the state share} AN AMOUNT EQUAL TO THE PRODUCT of

   45  its approved transportation expense for the base year{. The state  share

   46  shall  equal  the sum of the transportation sparsity adjustment} and the

   47  transportation aid ratio{, but not less than six and  one-half  percent.

   48  The  transportation aid ratio shall equal the greater of (i) the product

   49  of one and two hundred sixty-three thousandths multiplied by  the  state

   50  sharing  ratio  for  comprehensive  operating  aid,  (ii)  an  aid ratio

   51  computed by subtracting from one and one hundredth the product  computed

   52  to  three decimals without rounding obtained by multiplying the resident

   53  weighted average daily attendance wealth  ratio  by  forty-six  percent,

   54  where  such  aid  ratio shall be expressed as a decimal carried to three

   55  places without rounding or (iii) excluding cities with a  population  of

   56  more than one million, an aid ratio computed by subtracting from one and

                                                                               

       A. 8700                            28                                   

                                                                               

    1  one  hundredth  the  product  computed  to  three decimal places without

    2  rounding obtained by multiplying the number computed to  three  decimals

    3  without  rounding  obtained  when  the quotient of actual valuation of a

    4  school  district,  as  defined in paragraph c of subdivision one of this

    5  section, divided by the sum  of  the  resident  public  school  district

    6  enrollment,  the  resident  nonpublic school district enrollment and the

    7  additional public school enrollment of the school district for the  year

    8  prior  to the base year is divided by the statewide average actual valu-

    9  ation per the sum of such total resident public school district  enroll-

   10  ment,  nonpublic school district enrollment and additional public school

   11  enrollment of all school districts eligible for an apportionment  pursu-

   12  ant  to this section except central high school districts as computed by

   13  the commissioner using the latest single year actual valuation  computed

   14  under  paragraph  c  of  subdivision  one  of this section, by forty-six

   15  percent, where such ratio shall be expressed as  a  decimal  carried  to

   16  three decimal places without rounding. The computation of such statewide

   17  average  shall  include  the  actual  valuation  of all school districts

   18  eligible for an apportionment pursuant to this  section  except  central

   19  high  school  districts.  The  transportation  sparsity adjustment shall

   20  equal the quotient of: the positive remainder of  twenty-one  minus  the

   21  district`s  public school enrollment for the year prior to the base year

   22  per square mile, divided by three  hundred  seventeen  and  eighty-eight

   23  hundredths}  COMPUTED  PURSUANT  TO  SUBDIVISION  THREE OF THIS SECTION.

   24  Approved transportation expense shall be the sum of the approved  trans-

   25  portation  operating  expense  and  the approved transportation capital,

   26  debt service and lease expense of the district. Approved  transportation

   27  expense  shall not be aidable pursuant to section nineteen hundred fifty

   28  of this chapter.                                                        

   29    S 18. Subdivisions 8, 9 and 9-a of section 3602 of the  education  law

   30  are REPEALED and a new subdivision 8 is added to read as follows:       

   31    8.  COMPUTATION OF TOTAL AIDABLE PUPIL UNITS FOR SOUND BASIC EDUCATION

   32  AID. A DISTRICT`S TOTAL AIDABLE PUPIL UNITS FOR  SOUND  BASIC  EDUCATION

   33  AID  SHALL  EQUAL  THE PRODUCT OF THE ENROLLMENT INDEX FOR THE BASE YEAR

   34  AND THE SUM, USING YEAR PRIOR TO THE BASE YEAR PUPIL COUNTS, OF         

   35    (A) THE DISTRICT`S ADJUSTED AVERAGE DAILY MEMBERSHIP;                 

   36    (B) THE DISTRICT`S WEIGHTED COUNT  FOR  STUDENTS  WITH  POVERTY  BACK-

   37  GROUNDS,  EQUAL  TO  THE  PRODUCT OF (I) THE DISTRICT`S ADJUSTED AVERAGE

   38  DAILY MEMBERSHIP MULTIPLIED BY (II) THE PERCENT OF  ELIGIBLE  APPLICANTS

   39  FOR  THE  FREE  AND  REDUCED  PRICE  LUNCH  PROGRAM  MULTIPLIED BY (III)

   40  FIVE-TENTHS;                                                            

   41    (C) THE DISTRICT`S WEIGHTED  COUNT  FOR  STUDENTS  WITH  DISABILITIES,

   42  EQUAL  TO  ITS  STUDENTS  WITH  DISABILITIES COUNT MULTIPLIED BY ONE AND

   43  ONE-TENTH;                                                              

   44    (D) THE DISTRICT`S WEIGHTED COUNT FOR ENGLISH LANGUAGE LEARNERS, EQUAL

   45  TO THE LIMITED ENGLISH PROFICIENT COUNT MULTIPLIED BY TWO-TENTHS; AND   

   46    (E) THE MEMBERSHIP OF  SUMMER  SESSION  PUPILS  MULTIPLIED  BY  TWELVE

   47  HUNDREDTHS.                                                             

   48    FOR PURPOSES OF THIS SUBDIVISION, EACH PRODUCT SHALL BE EXPRESSED AS A

   49  WHOLE NUMBER WITHOUT ROUNDING, AND ALL COUNTS SHALL USE CURRENT AID YEAR

   50  DEFINITIONS.                                                            

   51    S  19. Subdivision 10 of section 3602 of the education law is REPEALED

   52  and a new subdivision 10 is added to read as follows:                   

   53    10. SUCCESSFUL SCHOOL DISTRICT STANDARD AND REQUIREMENTS RELATED THER-

   54  ETO. A. (1) A SCHOOL DISTRICT  SHALL  BE  IDENTIFIED  AS  SUCCESSFUL  IN

   55  PROVIDING  A  SOUND BASIC EDUCATION IF IT PROVIDES AN ADEQUATE EDUCATION

   56  DEFINED AS A DISTRICT  WITH  A  SIMPLE,  UNWEIGHTED  AVERAGE  OF  EIGHTY

                                                                               

       A. 8700                            29                                   

                                                                               

    1  PERCENT  OF  ITS  TEST  TAKERS SCORING AT LEVEL THREE OR ABOVE ON FOURTH

    2  GRADE ENGLISH LANGUAGE ARTS AND FOURTH GRADE MATHEMATICS AT THE  ELEMEN-

    3  TARY  LEVEL  AND  OBTAINING  A  PASSING  GRADE  ON  REGENTS EXAMINATIONS

    4  REQUIRED FOR A REGENTS HIGH SCHOOL DIPLOMA, AS MEASURED FOR A THREE-YEAR

    5  PERIOD BY THE COMMISSIONER; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL

    6  BE  CONSTRUED  TO  REQUIRE THAT A DISTRICT MUST MEET SUCH EIGHTY PERCENT

    7  STANDARD ON EACH INDIVIDUAL EXAMINATION.                                

    8    (2) DISTRICTS WITH LOW PERFORMING SCHOOLS ARE THOSE NOT ELIGIBLE TO BE

    9  IDENTIFIED AS A  SUCCESSFUL  SCHOOL  DISTRICT,  WHEREIN  THE  DISTRICT`S

   10  SIMPLE,  UNWEIGHTED  AVERAGE  OF ITS TEST TAKERS, AS DEFINED IN SUBPARA-

   11  GRAPH ONE OF THIS PARAGRAPH, IS AT LEAST SIXTY PERCENT,  BUT  LESS  THAN

   12  EIGHTY PERCENT.                                                         

   13    (3)  DISTRICTS  WITH SCHOOLS PERFORMING AT AN UNSATISFACTORY LEVEL ARE

   14  THOSE NOT ELIGIBLE TO BE IDENTIFIED AS  A  SUCCESSFUL  SCHOOL  DISTRICT,

   15  WHEREIN THE DISTRICT`S SIMPLE, UNWEIGHTED AVERAGE OF ITS TEST TAKERS, AS

   16  DEFINED  IN  SUBPARAGRAPH  ONE  OF  THIS  PARAGRAPH,  IS LESS THAN SIXTY

   17  PERCENT.                                                                

   18    B. COMPREHENSIVE SOUND BASIC EDUCATION PLAN  AND  REPORT.  ANY  SCHOOL

   19  DISTRICT  NOT  MEETING  THE SUCCESSFUL SCHOOL DISTRICT STANDARD SHALL BE

   20  SUBJECT TO THE PLAN DEVELOPMENT AND  REPORTING  PROVISIONS  OF  SECTIONS

   21  THIRTEEN HUNDRED ONE AND THIRTEEN HUNDRED TWO OF THIS CHAPTER; PROVIDED,

   22  HOWEVER, THAT THE COMMISSIONER SHALL BE AUTHORIZED TO REQUIRE ANY SCHOOL

   23  DISTRICT  TO  PREPARE  A  COMPREHENSIVE  SOUND  BASIC EDUCATION PLAN AND

   24  REPORT UPON A FINDING THAT ONE OR MORE SUB-POPULATION OF STUDENTS WITHIN

   25  SUCH DISTRICT ARE NOT MAKING EXPECTED PROGRESS FROM YEAR TO YEAR, PURSU-

   26  ANT TO REGULATIONS OF THE COMMISSIONER.                                 

   27    S 20. Subdivision 11 of section 3602 of the education law, as  amended

   28  by  section  11 of part A2 of chapter 62 of the laws of 2003, paragraphs

   29  15 and 16 as amended and paragraph 17 as added by section 11 of  part  M

   30  of chapter 57 of the laws of 2005, is amended to read as follows:       

   31    11.  Approved  operating  expense.  The approved operating expense for

   32  apportionments to any school district hereunder  shall  be  computed  as

   33  follows:  The apportionment to any school district for operating expense

   34  shall be based upon the total expenditures from  its  general  fund  and

   35  from  its  capital fund and from its risk retention fund for purposes of

   36  employee benefit claims related to salaries paid from the general  fund,

   37  and  for  any  city  school districts with a population of more than one

   38  hundred twenty-five  thousand  inhabitants  its  expenditures  from  the

   39  special  aid  fund  of  grant moneys for improving pupil performance and

   40  categorical aid for special reading programs as provided in the  aid  to

   41  localities  budget during the applicable year as approved by the commis-

   42  sioner, and in accordance with the classification of expenditures in use

   43  by the commissioner for the reporting by school districts  of  receipts,

   44  expenditures  and other financial data. For the purpose of this subdivi-

   45  sion operating expense shall  be  defined  as  total  cash  expenditures

   46  during  the  applicable  year,  but  shall exclude: (1) any balances and

   47  transfers; (2) any payments for transportation of  pupils  to  and  from

   48  school  during  the regular school year inclusive of capital outlays and

   49  debt service therefor; (2-a) a portion of any payments  for  transporta-

   50  tion  of  pupils  to  and  from district operated summer school programs

   51  pursuant to subdivision six of section thirty-six  hundred  twenty-two-a

   52  of this article, inclusive of capital outlays and debt service therefor,

   53  equal  to the product of such expenditures multiplied by the quotient of

   54  the total apportionment after the proration, if any,  required  by  such

   55  subdivision six of such section divided by the total apportionment prior

   56  to  such proration; (3) any payments for capital outlay and debt service

                                                                               

       A. 8700                            30                                   

                                                                               

    1  for school building purposes, provided, however, that in the case  of  a

    2  school  district which has entered into a contract with state university

    3  pursuant to paragraph o of subdivision  two  of  section  three  hundred

    4  fifty-five  of  this  chapter,  under  which  the  school district makes

    5  payments to state university on account of capital  outlay  relating  to

    6  certain  children  residing in such school district, such payments shall

    7  not be so excluded; (4) any  payments  for  cafeteria  or  school  lunch

    8  programs;  (5) any proceeds of short term borrowings in the general fund

    9  and any payments from the proceeds of the sale  of  obligations  in  the

   10  capital  fund;  (6)  any  cash receipts which reduce the cost of an item

   11  when applied against the expenditure therefor, except  gifts,  donations

   12  and  earned  interest  and  any  refunds  made; (7) any payments made to

   13  boards of cooperative educational  services  and  to  county  vocational

   14  education  and  extension  boards  for purposes or programs for which an

   15  apportionment is paid pursuant to other sections of this chapter, except

   16  that payments attributable to  eligible  pupils  with  disabilities  and

   17  ineligible  pupils  residing in noncomponent districts shall be included

   18  in operating expense; (8) any tuition  payments  made  to  other  school

   19  districts  inclusive  of payments made to a central high school district

   20  by one of its component  school  districts;  (9)  any  apportionment  or

   21  payment  received  from  the  state for experimental or special programs

   22  paid under provisions other than those found in this section  and  other

   23  than  any apportionments or payments received from the state by the city

   24  school district of the city of Yonkers for the  purpose  of  funding  an

   25  educational improvement program pursuant to a court order and other than

   26  any other state grants in aid identified by the commissioner for general

   27  use  as  specified by the board of education pursuant to subdivision two

   28  of section seventeen hundred eighteen of this chapter;  (10)  any  funds

   29  received  from  the federal government except the federal share of medi-

   30  caid subject to the provisions of section thirty-six hundred  nine-a  of

   31  this  part and except Impact Aid funds received pursuant to sections two

   32  and six of Public Law eighty-one-eight hundred seventy-four (PL  81-874)

   33  or  any law superseding such law in any such district which received aid

   34  pursuant to both such sections; provided further,  however,  that  there

   35  shall  be  excluded  from such federal funds or other apportionments any

   36  payments from such funds already deducted pursuant  to  this  paragraph;

   37  (11) any payments made for which an apportionment is disallowed pursuant

   38  to  regulations  of  the  commissioner;  (12)  any expenditures made for

   39  accounting, tabulation, or computer equipment, in excess of ten thousand

   40  dollars unless such expenditures shall have been  specifically  approved

   41  by   the  commissioner;  (13)  any  rentals  received  pursuant  to  the

   42  provisions of section four hundred three-a of  this  chapter;  (14)  any

   43  rentals  or other annual payments received pursuant to the provisions of

   44  section four hundred three-b of this chapter; (15) any expenditures made

   45  for persons twenty-one years of age or over attending employment  prepa-

   46  ration  education  programs  pursuant to subdivision twenty-four of this

   47  section; AND (16) {any tuition payments  made  pursuant  to  a  contract

   48  under  the  provisions  of paragraphs e, f, g, h, i and l of subdivision

   49  two of section forty-four hundred one of this  chapter  or  any  tuition

   50  payments  on behalf of pupils attending a state school under paragraph d

   51  of such subdivision; and (17)} in any year  in  which  expenditures  are

   52  made  to  the New York state teachers` retirement system or the New York

   53  state and local employees` retirement system for both the  prior  school

   54  year  and the current school year, any expenditures made to such retire-

   55  ment systems and recorded in the school year prior to the school year in

   56  which such obligations are paid.                                        

                                                                               

       A. 8700                            31                                   

                                                                               

    1    S 21. Subdivision 12 of section 3602 of the education law is  REPEALED

    2  and a new subdivision 12 is added to read as follows:                   

    3    12.  SOUND  BASIC  EDUCATION  AID.  ALL TERMS USED IN THIS SUBDIVISION

    4  SHALL HAVE THE MEANING ASCRIBED TO THEM  IN  THIS  SUBDIVISION  OR  THIS

    5  SECTION.  A.  SOUND BASIC EDUCATION REVENUE REQUIREMENT. THE SOUND BASIC

    6  EDUCATION REVENUE REQUIREMENT TO BE ALLOCATED BETWEEN THE STATE AND  THE

    7  LOCAL  SCHOOL  DISTRICT  SHALL EQUAL THE PRODUCT OF THE DISTRICT`S SOUND

    8  BASIC EDUCATION COST PER PUPIL AND THE DISTRICT`S  TOTAL  AIDABLE  PUPIL

    9  UNITS FOR SOUND BASIC EDUCATION AID.                                    

   10    B. STATE SHARE OF SOUND BASIC EDUCATION REVENUE REQUIREMENT. THE SOUND

   11  BASIC  EDUCATION  APPORTIONMENT TO SCHOOL DISTRICTS SHALL BE THE GREATER

   12  OF THE SOUND BASIC EDUCATION FORMULA AMOUNT OR THE SOUND BASIC EDUCATION

   13  AIDS BASE.                                                              

   14    C. COMPUTATION OF THE SOUND BASIC EDUCATION FORMULA  AMOUNT.  (1)  THE

   15  FULL  SOUND  BASIC  EDUCATION  FORMULA  AMOUNT SHALL EQUAL THE REMAINDER

   16  RESULTING WHEN THE OFFSET TO SOUND BASIC  EDUCATION  AID  IS  SUBTRACTED

   17  FROM  THE  PRODUCT,  COMPUTED TO A WHOLE NUMBER WITHOUT ROUNDING, OF (I)

   18  THE DISTRICT`S SOUND BASIC EDUCATION AID  RATIO  AND  (II)  SOUND  BASIC

   19  EDUCATION  REVENUE  REQUIREMENT; PROVIDED, HOWEVER, THAT SUCH FULL SOUND

   20  BASIC EDUCATION FORMULA AMOUNT, RECALCULATED ANNUALLY, SHALL  BE  PHASED

   21  IN OVER A FOUR YEAR PERIOD AS FOLLOWS:                                  

   22    (2) THE FIRST YEAR SOUND BASIC EDUCATION FORMULA AMOUNT, FOR AID PAYA-

   23  BLE  IN  THE  TWO THOUSAND FIVE--TWO THOUSAND SIX SCHOOL YEAR, SHALL NOT

   24  EXCEED THE SUM OF THE SOUND BASIC EDUCATION AIDS  BASE  AND  TWENTY-FIVE

   25  PERCENT OF THE POSITIVE REMAINDER RESULTING WHEN SUCH BASE IS SUBTRACTED

   26  FROM THE FULL SOUND BASIC EDUCATION FORMULA AMOUNT;                     

   27    (3)  THE  SECOND  YEAR  SOUND  BASIC EDUCATION FORMULA AMOUNT, FOR AID

   28  PAYABLE IN THE TWO THOUSAND SIX--TWO THOUSAND SEVEN SCHOOL  YEAR,  SHALL

   29  NOT  EXCEED  THE  SUM  OF  THE SOUND BASIC EDUCATION AIDS BASE AND FIFTY

   30  PERCENT OF THE POSITIVE REMAINDER RESULTING WHEN SUCH BASE IS SUBTRACTED

   31  FROM THE FULL SOUND BASIC EDUCATION FORMULA AMOUNT;                     

   32    (4) THE THIRD YEAR SOUND BASIC EDUCATION FORMULA AMOUNT, FOR AID PAYA-

   33  BLE IN THE TWO THOUSAND SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR, SHALL NOT

   34  EXCEED THE SUM OF THE SOUND BASIC EDUCATION AIDS BASE AND FIFTY  PERCENT

   35  OF  THE  POSITIVE  REMAINDER RESULTING WHEN SUCH BASE IS SUBTRACTED FROM

   36  THE FULL SOUND BASIC EDUCATION FORMULA AMOUNT;                          

   37    (5) THEREAFTER, SUCH FORMULA AMOUNT SHALL EQUAL THE FULL  SOUND  BASIC

   38  EDUCATION FORMULA AMOUNT.                                               

   39    D. AID ATTRIBUTABLE TO CERTAIN STUDENT POPULATIONS. SOUND BASIC EDUCA-

   40  TION  AID  PER PUPIL UNIT SHALL EQUAL THE QUOTIENT COMPUTED TO TWO DECI-

   41  MALS WITHOUT ROUNDING OBTAINED BY DIVIDING THE AMOUNT SELECTED  PURSUANT

   42  TO PARAGRAPH B OF THIS SUBDIVISION DIVIDED BY THE DISTRICT`S TOTAL AIDA-

   43  BLE  PUPIL  UNITS FOR SOUND BASIC EDUCATION AID.  THE COMMISSIONER SHALL

   44  PUBLISH THE AMOUNT OF AID ATTRIBUTABLE TO:                              

   45    (1) STUDENTS WITH POVERTY  BACKGROUNDS  COMPUTED  BY  MULTIPLYING  THE

   46  DISTRICT`S  WEIGHTED  COUNT FOR STUDENTS WITH POVERTY BACKGROUNDS BY ITS

   47  SOUND BASIC EDUCATION AID PER PUPIL UNIT;                               

   48    (2) STUDENTS WITH DISABILITIES COMPUTED BY MULTIPLYING THE  DISTRICT`S

   49  WEIGHTED  COUNT FOR STUDENTS WITH DISABILITIES BY ITS SOUND BASIC EDUCA-

   50  TION AID PER PUPIL UNIT; AND                                            

   51    (3) ENGLISH LANGUAGE LEARNERS COMPUTED BY MULTIPLYING  THE  DISTRICT`S

   52  WEIGHTED  COUNT  FOR ENGLISH LANGUAGE LEARNERS BY ITS SOUND BASIC EDUCA-

   53  TION AID PER PUPIL UNIT.                                                

   54    E. IMPUTED SCHOOL DISTRICT  LOCAL  CONTRIBUTION  TO  THE  SOUND  BASIC

   55  EDUCATION  REVENUE  REQUIREMENT.  (1)  THE  FULL IMPUTED SCHOOL DISTRICT

   56  LOCAL CONTRIBUTION SHALL BE DETERMINED BY  SUBTRACTING  THE  FULL  SOUND

                                                                               

       A. 8700                            32                                   

                                                                               

    1  BASIC  EDUCATION  FORMULA  AMOUNT FROM THE SOUND BASIC EDUCATION REVENUE

    2  REQUIREMENT; PROVIDED, HOWEVER, THAT SUCH FULL  IMPUTED  LOCAL  CONTRIB-

    3  UTION, RECALCULATED ANNUALLY, SHALL BE PHASED IN OVER A FOUR YEAR PERIOD

    4  AS FOLLOWS:                                                             

    5    (2)  THE  FIRST  YEAR IMPUTED LOCAL CONTRIBUTION, FOR THE TWO THOUSAND

    6  FIVE--TWO THOUSAND SIX SCHOOL YEAR, SHALL EQUAL THE  SUM  OF  THE  LOCAL

    7  REVENUE FOR SOUND BASIC EDUCATION PURPOSES IN THE TWO THOUSAND FOUR--TWO

    8  THOUSAND  FIVE  SCHOOL  YEAR PLUS THE PRODUCT OF TWENTY-FIVE PERCENT AND

    9  THE REMAINDER RESULTING WHEN SUCH LOCAL REVENUE IS SUBTRACTED  FROM  THE

   10  FULL IMPUTED SCHOOL DISTRICT LOCAL CONTRIBUTION;                        

   11    (3)  THE  SECOND YEAR IMPUTED LOCAL CONTRIBUTION, FOR THE TWO THOUSAND

   12  SIX--TWO THOUSAND SEVEN SCHOOL YEAR, SHALL EQUAL THE SUM  OF  THE  LOCAL

   13  REVENUE FOR SOUND BASIC EDUCATION PURPOSES IN THE TWO THOUSAND FOUR--TWO

   14  THOUSAND  FIVE  SCHOOL  YEAR  PLUS  THE PRODUCT OF FIFTY PERCENT AND THE

   15  REMAINDER RESULTING WHEN SUCH LOCAL REVENUE IS SUBTRACTED FROM THE  FULL

   16  IMPUTED SCHOOL DISTRICT LOCAL CONTRIBUTION;                             

   17    (4)  THE  THIRD  YEAR IMPUTED LOCAL CONTRIBUTION, FOR THE TWO THOUSAND

   18  SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR, SHALL EQUAL THE SUM OF THE  LOCAL

   19  REVENUE FOR SOUND BASIC EDUCATION PURPOSES IN THE TWO THOUSAND FOUR--TWO

   20  THOUSAND  FIVE  SCHOOL YEAR PLUS THE PRODUCT OF SEVENTY-FIVE PERCENT AND

   21  THE REMAINDER RESULTING WHEN SUCH LOCAL REVENUE IS SUBTRACTED  FROM  THE

   22  FULL IMPUTED SCHOOL DISTRICT LOCAL CONTRIBUTION;                        

   23    (5)  THEREAFTER,  SUCH FULL IMPUTED SCHOOL DISTRICT LOCAL CONTRIBUTION

   24  SHALL EQUAL THE AMOUNT COMPUTED PURSUANT TO  SUBPARAGRAPH  ONE  OF  THIS

   25  PARAGRAPH.                                                              

   26    NOTHING HEREIN SHALL PROHIBIT A SCHOOL DISTRICT FROM RAISING MORE THAN

   27  THE REQUIRED AMOUNT IN ANY GIVEN YEAR.                                  

   28    F.  REQUIRED  SCHOOL DISTRICT LOCAL CONTRIBUTION. ANY SCHOOL DISTRICT,

   29  INCLUDING CITY SCHOOL DISTRICTS IN CITIES WITH A POPULATION IN EXCESS OF

   30  ONE HUNDRED  TWENTY-FIVE  THOUSAND  INHABITANTS,  NOT  IDENTIFIED  AS  A

   31  SUCCESSFUL SCHOOL DISTRICT PURSUANT TO THE PROVISIONS OF SUBDIVISION TEN

   32  OF  THIS  SECTION  SHALL BE SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH.

   33  (1) DISTRICTS WITH SCHOOLS PERFORMING AT AN UNSATISFACTORY  LEVEL  SHALL

   34  BE  REQUIRED  TO RAISE THE IMPUTED SCHOOL DISTRICT LOCAL CONTRIBUTION TO

   35  THE SOUND BASIC EDUCATION REVENUE REQUIREMENT PURSUANT TO PARAGRAPH D OF

   36  THIS SUBDIVISION.                                                       

   37    (2) DISTRICTS WITH LOW PERFORMING SCHOOLS SHALL BE GRANTED A WAIVER IN

   38  THE TWO THOUSAND FIVE--TWO THOUSAND SIX SCHOOL YEAR FROM THE REQUIREMENT

   39  TO RAISE THE IMPUTED SCHOOL DISTRICT LOCAL  CONTRIBUTION  TO  THE  SOUND

   40  BASIC  EDUCATION  REVENUE  REQUIREMENT  PURSUANT  TO PARAGRAPH D OF THIS

   41  SUBDIVISION, AND MAY APPLY FOR A CONTINUATION OF  SUCH  WAIVER  IN  EACH

   42  SUCCESSIVE  YEAR  PROVIDED THAT THE COMPOSITE THREE-YEAR ROLLING AVERAGE

   43  OF THE PERCENT OF THE DISTRICT`S STUDENTS SCORING AT OR ABOVE THE PROFI-

   44  CIENCY LEVEL ON THE FOURTH GRADE MATHEMATICS AND ENGLISH TESTS  ADMINIS-

   45  TERED  BY  THE  STATE  AND  THE  PERCENT  OF  THE DISTRICT`S HIGH SCHOOL

   46  STUDENTS HAVING PASSING SCORES, AS DETERMINED BY THE BOARD  OF  REGENTS,

   47  ON  THE  FIVE  REGENTS  EXAMINATIONS  REQUIRED  FOR  GRADUATION, MET THE

   48  IMPROVEMENT GOALS, AS DETERMINED BY THE COMMISSIONER FOR  SUCH  DISTRICT

   49  IN  THE  BASE  YEAR  OR  SUCH DISTRICT ACHIEVED STANDING AS A SUCCESSFUL

   50  SCHOOL DISTRICT.                                                        

   51    G. MEASUREMENT OF COMPLIANCE WITH THE SCHOOL DISTRICT  REQUIRED  LOCAL

   52  CONTRIBUTION  TO  THE  SOUND  BASIC  EDUCATION  REVENUE REQUIREMENT. THE

   53  COMMISSIONER SHALL ANNUALLY REPORT TO THE GOVERNOR AND  MEMBERS  OF  THE

   54  LEGISLATURE,  THE  IDENTITY  OF  ANY  SCHOOL  DISTRICT WHEREIN THE LOCAL

   55  REVENUE FOR SOUND BASIC EDUCATION PURPOSES IS LESS THAN  THE  DISTRICT`S

   56  REQUIRED  LOCAL  CONTRIBUTION  TO  THE  SOUND  BASIC  EDUCATION  REVENUE

                                                                               

       A. 8700                            33                                   

                                                                               

    1  REQUIREMENT. SUCH REPORT SHALL INCLUDE THE AMOUNT OF  SUCH  SHORTCOMING,

    2  BOTH IN TOTAL AND PER PUPIL, AND SHALL NOTE IF THE DISTRICT IS OPERATING

    3  ON  A  CONTINGENCY BUDGET, PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE

    4  OF  THIS CHAPTER. THE COMMISSIONER SHALL ALSO NOTIFY THE BOARD OF EDUCA-

    5  TION OR TRUSTEES OR CHANCELLOR OF ANY SUCH SCHOOL DISTRICT OF ITS  FAIL-

    6  URE  TO MEET SUCH REQUIREMENT AND SUCH BOARD SHALL REPORT TO THE COMMIS-

    7  SIONER THE REASONS FOR SUCH FAILURE AND THE CORRECTIVE  ACTION  THAT  IT

    8  PLANS  TO  UNDERTAKE.  SUCH REPORT SHALL ALSO BE AVAILABLE TO ALL INTER-

    9  ESTED PARTIES THROUGH PUBLICATION  ON  THE  STATE  EDUCATION  DEPARTMENT

   10  WEBSITE.                                                                

   11    S  22.  Paragraph  g of subdivision 2 and subdivisions 6-d, 12-a, 12-b

   12  and 13 of section 3602 of the education law are REPEALED.               

   13    S 22-a. Paragraph d of subdivision 14 of section 3602 of the education

   14  law, as amended by section 28 of part C of chapter 57  of  the  laws  of

   15  2004, is amended to read as follows:                                    

   16    d.  Incentive operating aid for reorganized districts. Notwithstanding

   17  the provisions of paragraphs a through c of this  subdivision,  whenever

   18  two  or  more school districts are scheduled for reorganization pursuant

   19  to section three hundred fourteen of this chapter,  and  whenever  after

   20  July  first,  nineteen  hundred sixty-five, all such school districts so

   21  scheduled do reorganize  in  accordance  with  the  provisions  of  such

   22  section  three  hundred  fourteen  as  amended  by chapter seven hundred

   23  forty-five of the laws of nineteen hundred sixty-five, and (1)  whenever

   24  such  proposed  reorganization  includes  at least two school districts,

   25  each of which maintains its own high school, or (2) where such  proposed

   26  reorganization  includes  only  one  school district maintaining its own

   27  high school, whenever in such  case  such  proposed  reorganization,  in

   28  addition  to  such  school  district  maintaining  its  own high school,

   29  includes at least nine other school  districts,  or  (3)  whenever  such

   30  proposed  reorganization includes at least two central school districts,

   31  or (4) where such proposed reorganization includes at least  one  school

   32  district  maintaining  its  own  high  school  and, in addition thereto,

   33  includes at least one school district employing eight or more  teachers,

   34  or  (5)  where  such  proposed  reorganization  includes  a  city school

   35  district, and in addition thereto, includes at least seven other  school

   36  districts, or (6) where such reorganization includes at least two school

   37  districts employing eight or more teachers forming a central high school

   38  district  pursuant to section nineteen hundred thirteen of this chapter,

   39  such reorganized district shall be entitled to an apportionment equal to

   40  an additional percent of the apportionment computed in  accordance  with

   41  the  provisions  of {subparagraph (i) of} paragraph {a} C of subdivision

   42  twelve of this section; but in no case shall the sum of such  apportion-

   43  ment under this paragraph plus the apportionment under {subparagraph (i)

   44  of}  SUCH  paragraph {a of subdivision twelve of this section} C be more

   45  than a total of ninety-five per centum of the CURRENT year {prior to the

   46  base year approved operating  expense}  SOUND  BASIC  EDUCATION  REVENUE

   47  REQUIREMENT;  for a period of five years beginning with the first school

   48  year of operation as a  reorganized  district  such  additional  percent

   49  shall  be ten percent; and thereafter such additional ten percent appor-

   50  tionment to such district shall be reduced by one percentage point  each

   51  year, beginning with the sixth school year of operation as a reorganized

   52  district, and continuing until such additional ten percent apportionment

   53  is  eliminated;  provided, however, that the total apportionment to such

   54  reorganized district, beginning with the first school year of  operation

   55  as a reorganized district, and for a period of fifteen years thereafter,

   56  shall be not less than the sum of all apportionments computed in accord-

                                                                               

       A. 8700                            34                                   

                                                                               

    1  ance  with  the provisions of this paragraph, PARAGRAPH C OF SUBDIVISION

    2  TWELVE OF THIS SECTION, OR THE PROVISIONS OF FORMER subparagraph (i)  of

    3  paragraph  a of subdivision twelve of this section and THE PROVISIONS OF

    4  FORMER  subdivision twelve-b of this section, AS SUCH PROVISIONS APPLIED

    5  IN SCHOOL YEARS PRIOR TO THE TWO THOUSAND FIVE--TWO THOUSAND SIX  SCHOOL

    6  YEAR,  which  each component school district was entitled to receive and

    7  did receive during the last school year preceding  such  first  year  of

    8  operation.  In  the  event  a  school district is eligible for incentive

    9  operating aid and again reorganizes pursuant to a new plan  or  reorgan-

   10  ization  established by the commissioner, and where such new reorganiza-

   11  tion is again eligible for incentive operating aid,  the  newly  created

   12  school  district  shall  be  entitled to receive incentive operating aid

   13  pursuant to the provisions  of  this  paragraph,  based  on  all  school

   14  districts  included  in any such reorganization, provided, however, that

   15  incentive operating aid payments due because of any such former reorgan-

   16  ization shall cease.                                                    

   17    S 23. Paragraphs a, b and c of subdivision 15 of section 3602  of  the

   18  education law are REPEALED.                                             

   19    S 23-a. Paragraph d of subdivision 15 of section 3602 of the education

   20  law,  as  amended  by  section 29 of part C of chapter 57 of the laws of

   21  2004, is amended to read as follows:                                    

   22    d. Notwithstanding any inconsistent provisions  of  this  article,  if

   23  {such}  THE  city  school  district  OF  THE CITY OF NEW YORK elected to

   24  receive operating aid payable in  the  two  thousand--two  thousand  one

   25  school  year  under  the  provisions of this subdivision, AS THOUGH EACH

   26  BOROUGH WAS A SEPARATE CITY  SCHOOL  DISTRICT,  approved  transportation

   27  expense for public service transportation for transportation aid payable

   28  in  the  {two  thousand  four--two thousand five} TWO THOUSAND FIVE--TWO

   29  THOUSAND SIX school year shall not include any expenditures to  the  New

   30  York  City  Metropolitan  Transportation  Authority  for  public service

   31  transportation during the {two thousand three--two  thousand  four}  TWO

   32  THOUSAND  FOUR--TWO  THOUSAND FIVE school year nor shall such expense be

   33  included in approved operating expense.                                 

   34    S 24. Subdivisions 16, 18, 20, 21, 22, 23, 26, 26-a, 31-a, 32, 36, 37,

   35  38 and 39 of section 3602 of the education law are REPEALED.            

   36    S 25. The subdivision heading and subparagraph a  of  paragraph  1  of

   37  subdivision 19 of section 3602 of the education law, as added by chapter

   38  57 of the laws of 1993, are amended to read as follows:                 

   39    Excess  cost  aid  for  {pupils with handicapping conditions} STUDENTS

   40  WITH DISABILITIES.                                                      

   41    a. "{Pupils with handicapping conditions} STUDENTS WITH  DISABILITIES"

   42  shall mean pupils who are trainable mentally retarded, educable mentally

   43  retarded,  visually  impaired, hearing impaired, physically handicapped,

   44  speech impaired, emotionally disturbed, autistic, or learning  disabled,

   45  as  such  terms  are defined by the commissioner and who receive special

   46  educational services or attend programs which meet criteria  established

   47  by the commissioner, (1) operated by a district or by a board of cooper-

   48  ative  educational  services, whether or not the district is a component

   49  of such board, OR (2) RESIDENT PUPILS WHO RECEIVE SERVICES  PURSUANT  TO

   50  PARAGRAPHS  D,  E,  F,  G,  H,  I  AND  L  OF SUBDIVISION TWO OF SECTION

   51  FORTY-FOUR HUNDRED ONE OF THIS CHAPTER.                                 

   52    S 25-a. Subparagraphs b, b-1 and c of paragraph 1 of subdivision 19 of

   53  section 3602 of the education law are REPEALED and a new paragraph b  is

   54  added to read as follows:                                               

   55    B.  "STUDENTS  WITH  DISABILITIES  COUNT".  FOR AID PAYABLE IN THE TWO

   56  THOUSAND FIVE--TWO THOUSAND SIX SCHOOL YEAR AND THEREAFTER, THE STUDENTS

                                                                               

       A. 8700                            35                                   

                                                                               

    1  WITH DISABILITIES COUNT SHALL MEAN THE PRODUCT  OF  THE  ATTENDANCE,  AS

    2  DEFINED  IN SECTION FORTY-FOUR HUNDRED FIVE OF THIS CHAPTER, OF STUDENTS

    3  WITH DISABILITIES DURING THE BASE YEAR  RECEIVING  SPECIAL  SERVICES  OR

    4  PROGRAMS   APPROVED   IN  ACCORDANCE  WITH  THE  PROVISIONS  OF  ARTICLE

    5  EIGHTY-NINE OF THIS  CHAPTER,  FOR  WHOM  THE  INDIVIDUALIZED  EDUCATION

    6  PROGRAM,  DEVELOPED  BY  A  COMMITTEE ON SPECIAL EDUCATION, REQUIRES (1)

    7  SERVICES FOR TWENTY PERCENT  OR  MORE  OF  THE  SCHOOL  WEEK,  INCLUDING

    8  SERVICES IN INTEGRATED SETTINGS, RELATED SERVICES, AND OTHER IN-DISTRICT

    9  PLACEMENTS  OR  SERVICES,  OR  (2) DIRECT OR INDIRECT CONSULTANT TEACHER

   10  SERVICES, OR (3) HOME OR HOSPITAL INSTRUCTION FOR A PERIOD OF MORE  THAN

   11  SIXTY  DAYS,  OR  (4)  OUT-OF-DISTRICT  PLACEMENT  WHEREBY SUCH RESIDENT

   12  PUPILS WILL RECEIVE SERVICES PURSUANT TO  ONE  OF  THE  FOLLOWING  PARA-

   13  GRAPHS:  D,  E, F, G, H, I OR L OF SUBDIVISION TWO OF SECTION FORTY-FOUR

   14  HUNDRED ONE OF THIS CHAPTER, ALL IN ACCORDANCE WITH REGULATIONS  OF  THE

   15  COMMISSIONER  ADOPTED  FOR  SUCH  PURPOSE. TWENTY PERCENT OR MORE OF THE

   16  SCHOOL WEEK SHALL MEAN NOT LESS  THAN  THE  EQUIVALENT  OF  ONE  HUNDRED

   17  EIGHTY MINUTES PER WEEK.                                                

   18    S  26.  Paragraph 2 of subdivision 19 of section 3602 of the education

   19  law, as added by chapter 57 of the laws of 1993, is amended to  read  as

   20  follows:                                                                

   21    2.  Excess cost aid ratio. Such ratio shall be computed by subtracting

   22  from one the product obtained  by  multiplying  {fifty-one  per  centum}

   23  FIFTEEN PERCENT by the SOUND BASIC EDUCATION combined wealth ratio. This

   24  aid  ratio shall be expressed as a decimal carried to three places with-

   25  out rounding, but not less than twenty-five percent.                    

   26    S 27. Paragraphs 3, 4, 4-a, 6 and 7 of subdivision 19 of section  3602

   27  of the education law are REPEALED.                                      

   28    S 27-a. Paragraph 5 of subdivision 19 of section 3602 of the education

   29  law,  as  added by chapter 57 of the laws of 1993, is amended to read as

   30  follows:                                                                

   31    5.  AID FOR HIGH COST STUDENTS WITH DISABILITIES.  A  school  district

   32  having  a {pupil} STUDENT with a {handicapping condition} DISABILITY for

   33  whom the cost, as approved by the commissioner, of  appropriate  special

   34  services  or programs exceeds the lesser of ten thousand dollars or four

   35  times the expense per pupil {without limits}, AS DEFINED IN  SUBDIVISION

   36  ONE  OF  THIS  SECTION, shall be entitled to an additional apportionment

   37  for each such {child} STUDENT computed  by  multiplying  the  district`s

   38  excess  cost  aid ratio by the amount by which such cost exceeds {three}

   39  TWO AND ONE-TENTH times the district`s {expense} SOUND  BASIC  EDUCATION

   40  COST per pupil {without limits}.                                        

   41    S  28.  Subdivision  10  of  section  3602-e  of  the education law is

   42  REPEALED.                                                               

   43    S 28-a.  Subdivision 17 of section 3602-e of  the  education  law,  as

   44  amended  by  section  39 of part C of chapter 57 of the laws of 2004, is

   45  amended to read as follows:                                             

   46    17. Notwithstanding {the} ANY INCONSISTENT provisions of this section,

   47  for aid payable in the {two thousand two--two thousand three through the

   48  two thousand four--two thousand five} TWO  THOUSAND  FIVE--TWO  THOUSAND

   49  SIX AND SUBSEQUENT school years, {each school district shall be eligible

   50  to  receive a grant award in an amount not to exceed the maximum prekin-

   51  dergarten grant award which shall be the sum of (i) the amount set forth

   52  for such school district for the  two  thousand  one--two  thousand  two

   53  school  year  on  the  computer  listing produced by the commissioner in

   54  support of the executive budget  request  for  such  year  and  entitled

   55  "BT032-1"  under  the  heading,  "PREKINDERGARTEN",  plus (ii) for those

   56  districts that were eligible to receive a supplemental grant  award  for

                                                                               

       A. 8700                            36                                   

                                                                               

    1  the  purposes  of  this section pursuant to part B of chapter 149 of the

    2  laws of 2001, an amount equal to the  positive  difference  between  the

    3  amount the school district was eligible to receive based on data on file

    4  with the commissioner on February fifteenth, two thousand and the amount

    5  set  forth  for the purposes of grants pursuant to this section for such

    6  school district for the two thousand one--two thousand two  school  year

    7  in  such computer listing entitled "BT032-1".  Provided, however, that a

    8  school district receiving aid under this section shall  be  required  to

    9  comply with all district plans and other requirements under this section

   10  for  the  receipt of funds} NO AID SHALL BE APPORTIONED PURSUANT TO THIS

   11  SECTION, AND FUNDING FOR SUPPORT OF  PREKINDERGARTEN  PROGRAMS  PROVIDED

   12  PURSUANT  TO  THIS SECTION SHALL BE DEEMED TO BE INCLUDED IN SOUND BASIC

   13  EDUCATION AID PAYABLE PURSUANT TO SUBDIVISION TWELVE OF SECTION  THIRTY-

   14  SIX HUNDRED TWO OF THIS PART.                                           

   15    S 29. The opening paragraph of section 3609-a of the education law, as

   16  amended  by  section  14 of part L of chapter 57 of the laws of 2005, is

   17  amended to read as follows:                                             

   18    For aid payable in the two thousand  four--two  thousand  five  school

   19  year  and  thereafter, "moneys apportioned" shall mean the lesser of (i)

   20  the sum of one hundred percent of the respective amount  set  forth  for

   21  each  school  district as payable pursuant to this section in the school

   22  aid computer listing for the current year produced by  the  commissioner

   23  in support of the budget which includes the appropriation for the gener-

   24  al  support  for public schools for the prescribed payments and individ-

   25  ualized payments due prior to April first for the current year plus  the

   26  miscellaneous general aid apportionments which shall include: apportion-

   27  ments  payable during the current school year pursuant to paragraph g of

   28  subdivision two{,} AND subdivision five {and subdivision thirty-six}  of

   29  section  thirty-six  hundred  two  of  this part minus any reductions to

   30  current year aids pursuant to subdivision seven  of  section  thirty-six

   31  hundred  four  of this part {or any deduction from apportionment payable

   32  pursuant to this chapter for  collection  of  a  school  district  basic

   33  contribution  as  defined  in  subdivision  eight  of section forty-four

   34  hundred one of this chapter},  less  any  grants  provided  pursuant  to

   35  subdivision twelve of section thirty-six hundred forty-one of this arti-

   36  cle,  or  (ii) the apportionment calculated by the commissioner based on

   37  data on file at the time the payment  is  processed;  provided  however,

   38  that  for  the  purposes  of  any  payments to be made for the months of

   39  April, May or June of the two thousand  five--two  thousand  six  school

   40  year  such calculation shall be based on the school aid computer listing

   41  for the current year using updated data at the  time  of  each  payment;

   42  provided however, that for the purposes of any payments made pursuant to

   43  this  section  prior  to  the  first business day of June of the current

   44  year, moneys apportioned shall not include any aids payable pursuant  to

   45  subdivisions  six  and  fourteen,  if  applicable, of section thirty-six

   46  hundred two of this part as current year aid for debt  service  on  bond

   47  anticipation notes and/or bonds first issued in the current year {or any

   48  aids  payable as growth aid for the current year pursuant to subdivision

   49  thirteen of section thirty-six hundred two of  this  part  or  any  aids

   50  payable  for  full-day  kindergarten  for  the  current year pursuant to

   51  subdivision twelve-a of section thirty-six hundred two  of  this  part}.

   52  The definitions of "base year" and "current year" as set forth in subdi-

   53  vision one of section thirty-six hundred two of this part shall apply to

   54  this  section.  {For  aid payable in the two thousand five--two thousand

   55  six school year, reference to such "school aid computer listing for  the

   56  current year" shall mean the printouts entitled "SA0506".}              

                                                                               

       A. 8700                            37                                   

                                                                               

    1    S 29-a. Section 3609-c of the education law is REPEALED.              

    2    S  29-b.  Paragraph a of subdivision 1 of section 3609-e of the educa-

    3  tion law, as added by section 46 of part C of chapter 58 of the laws  of

    4  1998, is amended to read as follows:                                    

    5    a. "Amount of tax levy" shall mean the amount of property taxes levied

    6  for  school  purposes in the current year pursuant to subdivision one of

    7  section thirteen hundred six of the real property tax law,  except  that

    8  for  a city school district of a city with one hundred twenty-five thou-

    9  sand inhabitants or more "amount of tax  levy"  shall  mean  {an  amount

   10  equal  to  the product of the tax rate computed pursuant to subparagraph

   11  seven of paragraph a of subdivision thirty-one-a of  section  thirty-six

   12  hundred  two of this article for aids payable in the current year multi-

   13  plied by such district`s actual valuation} THE LOCAL REVENUE FOR  SCHOOL

   14  PURPOSES  as  defined  in  subdivision  one of {such} section thirty-six

   15  hundred two of this {article} PART FOR SUCH CITY SCHOOL DISTRICTS.      

   16    S 30. Subdivision 6 of section 3622-a of the education law, as amended

   17  by chapter 422 of the laws of 2004, is amended to read as follows:      

   18    6. Transportation  of  pupils  to  and  from  approved  summer  school

   19  programs operated by a school district in the two thousand--two thousand

   20  one  school  year  and thereafter, provided, however, {that any expenses

   21  for which aid is received pursuant to subdivision thirty-nine of section

   22  thirty-six hundred two of this article shall be excluded from the compu-

   23  tation of allowable transportation expense, and provided  further}  that

   24  if the total statewide apportionment attributable to allowable transpor-

   25  tation  expenses  incurred  pursuant  to  this  subdivision exceeds five

   26  million dollars ($5,000,000),  individual  school  district  allocations

   27  shall  be  prorated  to  ensure  that  the apportionment for such summer

   28  transportation  does  not  exceed  five  million  dollars  ($5,000,000),

   29  provided  that  such  prorated  apportionment computed and payable as of

   30  September one of the school year immediately following the  school  year

   31  for  which  such aid is claimed shall be deemed final and not subject to

   32  change; and                                                             

   33    S 31. Subdivisions 1-a, 2, 3, 5, 6, 7, 8, 9 and 10 of section 3641  of

   34  the education law are REPEALED.                                         

   35    S 32. Subdivisions 6, 7 and 8 of section 4401 of the education law are

   36  REPEALED.                                                               

   37    S 33. Paragraphs a, b, c and d of subdivision 3 of section 4405 of the

   38  education  law are REPEALED and a new undesignated paragraph is added to

   39  read as follows:                                                        

   40    IN ADDITION TO THE APPORTIONMENT UNDER THE PROVISIONS  OF  SUBDIVISION

   41  TWELVE  OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER OF SOUND BASIC

   42  EDUCATION AID PAYABLE TO EACH SCHOOL DISTRICT RESPONSIBLE FOR THE EDUCA-

   43  TION OF A RESIDENT STUDENT WITH A DISABILITY IN ATTENDANCE  IN  A  STATE

   44  SCHOOL UNDER THE PROVISIONS OF PARAGRAPH D OF SUBDIVISION TWO OF SECTION

   45  FORTY-FOUR  HUNDRED ONE OF THIS ARTICLE OR AN APPROVED PROGRAM UNDER THE

   46  PROVISIONS OF PARAGRAPHS E, F, G, H, I AND L OF  SUCH  SUBDIVISION  TWO,

   47  SUCH  DISTRICT  SHALL ALSO BE ELIGIBLE, UNDER THE PROVISIONS OF SUBDIVI-

   48  SION NINETEEN OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER, FOR  AN

   49  APPORTIONMENT  OF  STATE  AID  FOR HIGH COST STUDENTS WITH DISABILITIES.

   50  NOTWITHSTANDING ANY INCONSISTENT PROVISIONS OF THIS CHAPTER, MONEYS  DUE

   51  ON  BEHALF  OF  A  SCHOOL DISTRICT FOR THAT PORTION OF A CHILD`S TUITION

   52  PAYABLE TO FUNDS ESTABLISHED BY THE DORMITORY  AUTHORITY  IN  ACCORDANCE

   53  WITH THE PROVISIONS OF SUBDIVISIONS TEN AND ELEVEN OF SECTION FORTY-FOUR

   54  HUNDRED  ONE  OF  THIS  ARTICLE  SHALL  BE PAID FROM ANY MONEYS DUE SUCH

   55  SCHOOL DISTRICT.                                                        

                                                                               

       A. 8700                            38                                   

                                                                               

    1    S 34. Paragraph (a) of subdivision 1 of section 1689-f of  the  public

    2  authorities  law,  as added by section 64 of part H of chapter 83 of the

    3  laws of 2002, is amended to read as follows:                            

    4    (a)  "Eligible  school  district  projects"  shall  mean  (1)  capital

    5  projects eligible for a capital outlay transition grant  aid  apportion-

    6  ment  pursuant  to  subdivision  twelve  of  section  thirty-six hundred

    7  forty-one  of  the  education  law  for  which  payments  are  made,  as

    8  reimbursement of approved expenditures, from a school district`s general

    9  fund,  capital fund, or reserved funds for capital outlays as defined in

   10  subdivision six of section thirty-six hundred two of the education  law,

   11  that  are  incurred  by  the school district on or after July first, two

   12  thousand one and on or before June thirtieth, two thousand two, and  are

   13  not  otherwise  reimbursable in the two thousand two--two thousand three

   14  school year pursuant to subdivision six of  section  thirty-six  hundred

   15  two  of the education law; AND (2) PROJECTS RELATING TO THE ACQUISITION,

   16  DESIGN,  CONSTRUCTION,  RECONSTRUCTION,   REHABILITATION,   IMPROVEMENT,

   17  FURNISHING  AND EQUIPPING OF, OR OTHERWISE PROVIDING FOR SCHOOL DISTRICT

   18  CAPITAL FACILITIES OR SCHOOL DISTRICT CAPITAL EQUIPMENT FOR ONE  OF  THE

   19  FOLLOWING  PURPOSES,  AS  DEEMED NECESSARY BY THE COMMISSIONER OF EDUCA-

   20  TION: (I) TO ELIMINATE OF OVERCROWDING OF BUILDINGS HOUSING STUDENTS  IN

   21  EXCESS OF FULL CAPACITY, (II) TO REDUCE CLASS SIZES TO THE STATE AVERAGE

   22  INCLUDING  ACCOMMODATION  OF  PROJECTED ENROLLMENT GROWTH AS APPROVED BY

   23  SUCH COMMISSIONER, (III) TO PROVIDE ACCESS TO SPECIALIZED  SPACES,  SUCH

   24  AS  LIBRARIES,  LABORATORIES,  AND  AUDITORIUMS,  (IV) TO AVOID IMMINENT

   25  ADDITIONAL OVERCROWDING THROUGH  PREVENTIVE  MAINTENANCE  ON  FACILITIES

   26  THAT  ARE  IN  SUCH  GRAVE  CONDITION THAT THEY MAY BE RENDERED UNUSABLE

   27  WITHIN FIVE YEARS, AS DETERMINED BY A STRUCTURAL INSPECTION AND REPORTED

   28  TO SUCH COMMISSIONER ON A BUILDING  CONDITION  SURVEY  SUBMITTED  IN  AN

   29  APPROVED  FORMAT, AND (V) TO RETROFIT SCHOOLS FOR INSTRUCTIONAL COMPUTER

   30  TECHNOLOGY AND TECHNOLOGY  EQUIPMENT  INCLUDING  ORIGINAL  PURCHASE  AND

   31  INSTALLATION  OF  HARDWARE,  CONDUIT,  WIRING,  AND POWERING OF HARDWARE

   32  INSTALLATIONS IN COMPUTER CLASSROOMS, OR  FOR  BUILDING  OR  CAMPUS-WIDE

   33  LOCAL  AREA  NETWORK SYSTEMS AND IN-BUILDING ELEMENTS OF OTHER WIDE AREA

   34  NETWORKS, INCLUDING THE ORIGINAL PURCHASE AND INSTALLATION  OF  CONDUIT,

   35  WIRING,  AND  POWERING OF HARDWARE INSTALLATIONS; AND TO THE EXTENT THAT

   36  SUCH PROJECTS ARE (I) IDENTIFIED AS  PRIORITY  PROJECTS  IN  THE  SCHOOL

   37  DISTRICT`S FIVE YEAR CAPITAL FACILITIES PLAN, ADOPTED IN ACCORDANCE WITH

   38  APPLICABLE  PROVISIONS OF THE EDUCATION LAW, (II) APPROVED BY THE VOTERS

   39  OR BY THE CITY COUNCIL IN CITY SCHOOL DISTRICTS  WITH  A  POPULATION  IN

   40  EXCESS  OF  ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, AS APPLICABLE,

   41  (III) APPROVED BY THE COMMISSIONER, AND (IV) TO  THE  EXTENT  THAT  SUCH

   42  PROJECTS  MEET THE CRITERIA FOR AN APPORTIONMENT PURSUANT TO SUBDIVISION

   43  SIX OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.             

   44    S 35. Paragraph (a) of subdivision 2 of section 1689-f of  the  public

   45  authorities  law,  as added by section 64 of part H of chapter 83 of the

   46  laws of 2002, is amended to read as follows:                            

   47    (a) Subject to chapter fifty-nine of the laws  of  two  thousand,  but

   48  notwithstanding  any  other  provisions of any general or special law to

   49  the contrary, and subject to the making of annual appropriations  there-

   50  for  by  the legislature, the dormitory authority is authorized to enter

   51  into one or more service contracts, none of which, FOR THE  PURPOSES  OF

   52  SUBPARAGRAPH  ONE  OF  PARAGRAPH  A  OF SUBDIVISION ONE OF THIS SECTION,

   53  shall exceed ten years in duration, NOR, FOR THE  PURPOSES  OF  SUBPARA-

   54  GRAPH  TWO OF SUCH PARAGRAPH, SHALL EXCEED THE PERIOD OF ASSUMED AMORTI-

   55  ZATION APPLICABLE TO A PROJECT PURSUANT TO PARAGRAPH  E  OF  SUBDIVISION

   56  SIX  OF  SECTION  THIRTY-SIX  HUNDRED TWO OF THE EDUCATION LAW, with the

                                                                               

       A. 8700                            39                                   

                                                                               

    1  director of the budget, upon such terms as the director  of  the  budget

    2  and the dormitory authority agree, for the purpose of financing eligible

    3  school district projects.                                               

    4    S  36.  Paragraph (a) of subdivision 3 of section 1689-f of the public

    5  authorities law, as added by section 64 of part H of chapter 83  of  the

    6  laws of 2002, is amended to read as follows:                            

    7    (a)  The  commissioner  of  education  shall certify, (I) by September

    8  thirtieth, two thousand two, to the dormitory authority, and the  direc-

    9  tor  of  the  budget,  each  school district for which he has approved a

   10  capital outlay  transition  grant  pursuant  to  subdivision  twelve  of

   11  section  thirty-six hundred forty-one of the education law for an eligi-

   12  ble school district project PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH  A

   13  OF SUBDIVISION ONE OF THIS SECTION as reimbursement of approved expendi-

   14  tures  for capital outlays in lieu of aid previously payable pursuant to

   15  subdivision six of section thirty-six hundred two of the education  law,

   16  (1)  a  description  of  the eligible school district projects for which

   17  such aid is granted for each school district, including the cost of each

   18  project, and such other information regarding the expenditures for capi-

   19  tal outlays requested by the dormitory authority as is necessary for the

   20  issuance of bonds, notes, or other obligations, pursuant to this section

   21  and (2) the amount of that grant; AND (II)  BY  SEPTEMBER  THIRTIETH  OF

   22  EACH  YEAR,  COMMENCING  WITH SEPTEMBER THIRTIETH, TWO THOUSAND FIVE, TO

   23  THE DORMITORY AUTHORITY, AND THE DIRECTOR OF  THE  BUDGET,  EACH  SCHOOL

   24  DISTRICT  FOR  WHICH HE HAS APPROVED AN ELIGIBLE SCHOOL DISTRICT PROJECT

   25  PURSUANT TO SUBPARAGRAPH TWO OF PARAGRAPH A OF SUBDIVISION ONE  OF  THIS

   26  SECTION,  AND  WHICH  WILL  BE  ELIGIBLE  FOR  AN APPORTIONMENT FOR DEBT

   27  SERVICE PURSUANT TO SUBDIVISION SIX OF SECTION THIRTY-SIX HUNDRED TWO OF

   28  THE EDUCATION LAW, A DESCRIPTION OF EACH SUCH ELIGIBLE  SCHOOL  DISTRICT

   29  PROJECTS,  BY  SCHOOL  DISTRICT, INCLUDING THE COST OF EACH PROJECT, AND

   30  SUCH OTHER INFORMATION  REGARDING  THE  PROJECTED  CAPITAL  EXPENDITURES

   31  REQUESTED BY THE DORMITORY AUTHORITY AS IS NECESSARY FOR THE ISSUANCE OF

   32  BONDS,  NOTES,  OR  OTHER  OBLIGATIONS, PURSUANT TO THIS SECTION. IN THE

   33  EVENT THAT THE AGGREGATE COST OF ALL ELIGIBLE SCHOOL  DISTRICT  PROJECTS

   34  PURSUANT  TO  SUBPARAGRAPH TWO OF PARAGRAPH A OF SUBDIVISION ONE OF THIS

   35  SECTION WOULD EXCEED THE AUTHORIZATION OF  THE  DORMITORY  AUTHORITY  TO

   36  ISSUE BONDS FOR SUCH PURPOSE, THE COMMISSIONER OF EDUCATION SHALL PRIOR-

   37  ITIZE SUCH PROJECTS WITHIN SUCH LIMITS.                                 

   38    S  37.  Paragraph (b) of subdivision 4 of section 1689-f of the public

   39  authorities law, as added by section 64 of part H of chapter 83  of  the

   40  laws of 2002, is amended to read as follows:                            

   41    (b)  The  dormitory authority shall not issue any bonds or notes in an

   42  amount in excess of one hundred forty million dollars for  the  purposes

   43  OF  SUBPARAGRAPH  ONE OF PARAGRAPH A OF SUBDIVISION ONE of this section,

   44  NOR AN AMOUNT IN EXCESS OF TEN BILLION DOLLARS, OF  WHICH  NINE  BILLION

   45  TWO  HUNDRED  MILLION DOLLARS SHALL BE USED FOR THE CITY SCHOOL DISTRICT

   46  OF THE CITY OF NEW YORK, TO BE  MADE  AVAILABLE  IN  INCREMENTS  OF  TWO

   47  BILLION DOLLARS PER YEAR BETWEEN SEPTEMBER TWO THOUSAND FIVE AND SEPTEM-

   48  BER TWO THOUSAND NINE FOR THE PURPOSES OF SUBPARAGRAPH TWO OF SUCH PARA-

   49  GRAPH A, plus a principal amount of bonds or notes:                     

   50    (1) to fund any debt service reserve fund, and                        

   51    (2) to provide for the payment of fees and other charges and expenses,

   52  including  underwriters` discount, related to the issuance of such bonds

   53  or notes, or related to the provision of any  applicable  bond  or  note

   54  facilities.                                                             

   55    In  computing for the purposes of this paragraph, the aggregate amount

   56  of indebtedness evidenced by bonds and notes of the dormitory  authority

                                                                               

       A. 8700                            40                                   

                                                                               

    1  issued  pursuant  to  this  title, there shall be excluded the amount of

    2  such indebtedness represented by such bonds or notes issued to refund or

    3  otherwise repay bonds or notes, provided that  the  amount  so  excluded

    4  under  the clause may exceed the principal amount of such bonds or notes

    5  that were issued to refund or otherwise repay only if the present  value

    6  of  the  aggregate  debt  service on the refunding or repayment bonds or

    7  notes shall not have at the time of their issuance exceeded the  present

    8  value  of  the  aggregate  debt  service of the bonds or notes they were

    9  issued to refund or repay, such present value in each case being  calcu-

   10  lated by using the effective interest rate of the refunding or repayment

   11  bonds  or  notes,  which  shall  be that rate arrived at by doubling the

   12  semi-annual  interest  rate  (compounded  semi-annually)  necessary   to

   13  discount  the  debt service payments on the refunding or repayment bonds

   14  or notes from the payment date thereof to  the  date  of  issue  of  the

   15  refunding  or  repayment bonds or notes from the payment date thereof to

   16  the date of issue of the refunding or repayment bonds or  notes  and  to

   17  the  price  bid  therefor,  or to the proceeds received by the dormitory

   18  authority from the  sale  thereof,  in  each  case  including  estimated

   19  accrued interest.                                                       

   20    S  38.  Notwithstanding  any  inconsistent provisions of the education

   21  law, the state building aid ratio for debt service for  school  building

   22  purposes  for  eligible school district projects under the provisions of

   23  subparagraph 2 of paragraph a of subdivision 1 of section 1689-f of  the

   24  public  authorities  law, as amended by section thirty-four of this act,

   25  shall be one.                                                           

   26    S 39. Notwithstanding any inconsistent provisions of article 25 of the

   27  education law as added by section three of this  act,  the  city  school

   28  district  of  the  city of New York shall develop and present the master

   29  plan and comprehensive sound basic education plan within ninety days  of

   30  the  effective  date  of this act, but not sooner than June 30, 2005 for

   31  the 2005-06 school year in accordance with all other provisions of  such

   32  article 25.                                                             

   33    S  40. Severability clause. If any clause, sentence, paragraph, subdi-

   34  vision, section or part of this act shall be adjudged by  any  court  of

   35  competent  jurisdiction  to  be invalid, such judgment shall not affect,

   36  impair, or invalidate the remainder thereof, but shall  be  confined  in

   37  its  operation  to the clause, sentence, paragraph, subdivision, section

   38  or part thereof directly involved in the controversy in which such judg-

   39  ment shall have been rendered. It is hereby declared to be the intent of

   40  the legislature that this act would  have  been  enacted  even  if  such

   41  invalid provisions had not been included herein.                        

   42    S  41. This act shall take effect July 1, 2005; provided that sections

   43  three and thirty-nine of this act  shall  take  effect  immediately  and

   44  shall be deemed to have been in full force and effect on and after Janu-

   45  ary 1, 2005.                                                            

         REPEAL NOTE:                                                          

         1.  Paragraph c of subdivision 7 of section 1608 of the education law,

       repealed by section five-a  of  this  act,  relates  to  the  percentage

       increase in the consumer price index;                                   

         2.  Paragraph c of subdivision 7 of section 1716 of the education law,

       repealed by section  six-a  of  this  act,  relates  to  the  percentage

       increase in the consumer price index;                                   

         3.  Paragraphs e, q, s, t, u, v and w of subdivision 1 of section 3602

       of the education law, repealed by section eleven of this act, relate  to

       (e)  pupils  with special education needs, (q) lunch count, (s) extraor-

       dinary needs count, (t) percentage of pupils  with  compensatory  educa-

                                                                               

       A. 8700                            41                                   

                                                                               

       tional  needs,  (u)  pupils  with  compensatory  educational  needs, (v)

       concentration factor, and (w) extraordinary needs factor;               

         4.  Subdivision  2-b of section 3602 of the education law, repealed by

       section fourteen of this act, relates to  computation  of  total  wealth

       pupil units;                                                            

         5.  Paragraphs  b and c of subdivision 3 of section 3602 of the educa-

       tion law, repealed by section fifteen of this act, relate to (b)  compu-

       tation  of  the  state sharing ratio for comprehensive operating aid and

       (c) computation of the extraordinary needs aid ratio;                   

         6. Subdivisions 8, 9 and 9-a of section 3602  of  the  education  law,

       repealed  by  section eighteen of this act, relate to (8) computation of

       total aidable pupil units for  operating  aid,  (9)  additional  aidable

       pupil units, and (9-a) secondary school weighting;                      

         7.  Subdivision  10  of section 3602 of the education law, repealed by

       section nineteen of this act, relates to program  approval  requirements

       and district plans of service;                                          

         8.  Subdivision  12  of section 3602 of the education law, repealed by

       section twenty-one of this act, relate to  the  computation  of  formula

       operating aid and extraordinary needs aid;                              

         9.  Paragraph  g of subdivision 2 and subdivisions 6-d, 12-a, 12-b and

       13 of section 3602 of the education law, repealed by section  twenty-two

       of  this  act, relate to (2) tuition adjustment aid, (6-d) minor mainte-

       nance and repair aid, (12-a) aid for conversion to full  day  kindergar-

       ten,  (12-b)  aid payable in certain school years, including the 2004-05

       school year, in lieu of aids payable pursuant to listed subdivisions  of

       section 3602, and (13) growth aid;                                      

         10.  Paragraphs  a,  b  and c of subdivision 15 of section 3602 of the

       education law, repealed by section twenty-three of this act,  relate  to

       borough aid;                                                            

         11.  Subdivisions  16, 18, 20, 21, 22, 23, 26, 26-a, 31-a, 32, 36, 37,

       38 and 39 of section 3602 of the  education  law,  repealed  by  section

       twenty-four  of this act, relate to (16) tax adjustment aids, (18) tran-

       sition adjustment, (20) shared services aid for school  districts  which

       are not components of a board of cooperative educational services super-

       visory district, including large city school districts, (21) tax limita-

       tion aid, (22) limited English proficiency aid, (23) gifted and talented

       program  aid, (26) instructional computer hardware and technology equip-

       ment apportionment, (26-a) aid  for  instructional  computer  technology

       expenses, (31-a) aid for small city school districts, (32) educationally

       related support services apportionment (ERSSA), (36) voluntary interdis-

       trict  urban-suburban  transfer program aid, (37) grants for early grade

       class size reduction, (38) operating standards aid,  and  (39)  aid  for

       summer school programs;                                                 

         12.  Subparagraphs  b,  b-1  and c of paragraph 1 of subdivision 19 of

       section 3602 of the education law, repealed by section twenty-five-a  of

       this act, relate to prior year provisions for weightings for pupils with

       handicapping  conditions,  to  integrated  settings weighted pupils with

       handicapping conditions, and to limitations on  expense  per  pupil  for

       purposes of such subdivision;                                           

         13. Paragraphs 3, 4, 4-a, 6 and 7 of subdivision 19 of section 3602 of

       the  education law, repealed by section twenty-seven of this act, relate

       to payment of aid in school years prior to the 2005-06 school  year  for

       pupils with handicapping conditions, other than high-cost pupils;       

         14. Subdivision 10 of section 3602-e of the education law, repealed by

       section twenty-eight of this act, relates to prekindergarten aid;       

                                                                               

       A. 8700                            42                                   

                                                                               

         15.  Section  3609-c of the education law, repealed by section twenty-

       nine-a of this act, relates to payment of aid in school years  prior  to

       the  2005-06  school year for small cities pursuant to the provisions of

       subdivision 31-a of section 3602;                                       

         16.  Subdivisions  1-a,  2, 3, 5, 6, 7, 8, 9 and 10 of section 3641 of

       the education law, repealed by section thirty-one of this act, relate to

       (1-a) student information systems,  (2)  attendance  improvement/dropout

       prevention  grant  program,  (3) youth-at-risk and community partnership

       programs, (5) magnet school grants, (6)  special  reading  and  academic

       programs,  (7)  grants  for  improving pupil performance, (8) attendance

       improvement/dropout prevention grants, (9) targeted instructional  staff

       development  programs,  and  (10)  aid  for rebuilding schools to uphold

       education (RESCUE);                                                     

         17. Subdivisions 6, 7 and 8 of section 4401 of the  education  law  as

       REPEALED  by  section  32  of this act relate to definitions, limited to

       article 89 of the education law, of excess cost, excess cost  aid  ratio

       and school district basic contribution; and                             

         18.  Paragraphs  a, b, c and d of subdivision 3 of section 4405 of the

       education law, repealed by section thirty-three of this act,  relate  to

       computing  state  financial  responsibility  for  operating expenses for

       certain children with handicapping conditions.                          

.SO DOC A 8700          *END*                    BTXT                 2005