BILL NUMBER:S2786A

TITLE OF BILL:
An act
to amend the education law, in relation to certain formula school aid
options for certain school districts

PURPOSE OR GENERAL IDEA OF BILL:
This bill would allow certain public school districts the option of
using an alternative combined wealth ratio formula as an additional
formula option for the calculation of aid.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the education law with respect to the distribution of
monies to school districts in Rockland county. The provisions allow
the use of the combined wealth ratio formula in which the ratio of
non-public school students exceeds 175% , and which has an adjusted
gross income per resident textbook enrollment of less than the state
average.

Section 2 provides that the effective date of the bill shall be on the
first day of July next succeeding the date on which it shall have
become law.

EXISTING LAW:
The existing provisions in the Education Law substantially overstate
              

the wealth level of those school districts where the ratio of
resident non-public school students to the total of resident and
non-public school students exceeds 175% of the state average ratio
and which have an adjusted gross income per resident textbook
enrollment of less than the state average.

JUSTIFICATION:
School districts function in an environment influenced by a number of
socioeconomic, demographic and other factors, some in conflict with
the other, with all presenting challenges to local boards of education.
Boards of education are required by law to operate as efficiently as
possible and are expected to not only meet the needs of students in
their community, but also to anticipate future needs. They are
expected to establish appropriate reserves for various unexpected
expenses and also to have available adequate funding in times of
economic downturn.
Boards of education must also implement and maintain educational
programs that meet or exceed all required federal and state academic
standards while at the same time being responsible to the public for
their substantial investment in buildings and grounds. All of these
challenges are made more difficult in those school districts where
the ratio of resident nonpublic school students to the total of
resident pupil and nonpublic students exceeds 175% of the state
average and where the adjusted gross income per resident textbook
enrollment is less than the state average. Current formulas
materially overstate the income level of residents in these
communities. In order to ensure that such school districts receive
state aid on an equitable basis, this proposed legislation would
allow an alternative combined wealth ratio formula to be utilized.
This would mean that the measure of relative wealth would be indexed


against the statewide average on a combination of two factors,
property wealth per pupil and income wealth per resident public

and nonpublic pupil. This bill would have the effect of correcting any
deficiencies in the aid formula to such school districts.

PRIOR LEGISLATIVE HISTORY:
05/01/09 Referred to Education
01/06/10 Referred to Education

FISCAL IMPLICATIONS:
It is estimated that this bill will increase foundation aid by
approximately $6.18 million over the amounts paid in the 2008-09
school year.

LOCAL FISCAL IMPLICATIONS:
The additional aid provided by this bill will reduce local school tax
burdens by approximately $6.18 million.

EFFECTIVE DATE:
This act shall take effect on the first day of July next succeeding
the date on which it shall have become law.