* § 2590-r. School based budgeting and expenditure reporting. The
chancellor shall, in consultation with the city board and community
district superintendents, establish in regulations a comprehensive
process of school-based budgeting and expenditure reporting no later
than November first, nineteen hundred ninety-eight. Notwithstanding any
provision of section twenty-five hundred ninety-q of this article to the
contrary, such regulations shall include provisions for:

a. the allocation of projected revenues among community districts and
their schools on the basis of objective formulae developed by the
chancellor, after consultation with the community councils, community
superintendents and the mayor, and approved by the city board, such
formulae shall reflect the relative educational needs of the community
districts and their schools to the maximum extent feasible;

b. (i) following release of the executive budget of the city of New
York by the mayor of the city of New York, the chancellor to inform the
principal of each school of that school's preliminary budget allocation,
and the principal to propose a school-based budget, after consulting
with members of the school based management team and soliciting input
pursuant to sections twenty-five hundred ninety-h, and twenty-five
hundred ninety-i of this article on budget priorities from all members
of the school community;

(ii) for schools under the jurisdiction of a community superintendent,
the principal shall be required to provide written justification, in a
form and manner prescribed by the community superintendent pursuant to
paragraph (h) of subdivision one of section twenty-five hundred ninety-f
of this article, to demonstrate that the school-based budget proposal is
aligned with the school's comprehensive educational plan;

c. the review, modification, approval and certification of the
proposed school budget for schools under the jurisdiction of a community
superintendent pursuant to paragraph (h) of subdivision one of section
twenty-five hundred ninety-f of this article;

d. within amounts estimated by the chancellor, the aggregation of the
proposed school-based budgets, as modified and approved by the community
superintendent, with a proposed budget for the administrative and
operational expenses of the community superintendent and community
council, as developed by the community superintendent, for submission to
the chancellor;

e. the chancellor to develop a school-based budgeting process for
schools under his or her jurisdiction consistent with this section which
shall require that: (i) each principal provide written justification
demonstrating that the school-based budget is aligned with such school's
comprehensive educational plan; (ii) the school based management team
submit comments regarding such justification; and (iii) the chancellor
certify that the school-based budget is sufficiently aligned with such
school's comprehensive educational plan after reviewing the principal's
justification and the school based management team's comments;

f. the aggregation of the community district budgets, as modified and
approved by the chancellor, with a proposed budget for administrative
and operational expenditures of the city board and the chancellor, as
prepared by the chancellor, for submission to and adoption by the city
board after a public hearing;

g. after final adoption of the budget for the city district by the
mayor and city council, a process of distributing any reductions or
increases required by such adoption in an equitable manner which
considers the relative needs of community districts and schools to the
maximum extent feasible and for modifying the proposed budget
accordingly. Such process shall include an analysis of the relative
funding levels of the state, the city, the federal government, and other
sources of funds; a comparison of the level of such funding against
previous years' total appropriations and actual expenditures; and an
analysis of the distribution of funds;

h. a comprehensive system of public reporting on the final enacted
budget including the levels of appropriation provided by the city, the
state and the federal government with a comparison of the level of such
funding against previous years' totals, and an explanation of the final
budget;

i. procedures for schools, superintendents and the chancellor to
modify and reallocate monies in the enacted budget;

j. a uniform system of budget requests, reports and appropriations.
Such units of appropriation shall include (i) such compensation and
benefits for staff; (ii) instruction and for pupil services, including
costs for purchases, library services, instructional materials, and all
other school-based instructional and instructional support costs
attributable to other than personal services; (iii) administrative and
non-instructional cost and (iv) extra-curricular activities;

k. the provision of appropriate technical support and training to
school personnel, parents and other participants in school-based
budgeting;

l. a comprehensive planning and monitoring process to promote the
implementation of school-based budgeting;

m. an annual update of a capital plan by the superintendent with
participation of principals and schools, addressing health and safety,
maintenance, capacity and technology; and

n. a collaborative school-based planning process involving parents,
teachers, other school personnel and, where appropriate, students to
effectuate the purposes of this section.

* NB Effective until June 30, 2026

* § 2590-r. School based budgeting and expenditure reporting. The
chancellor shall, in consultation with the city board and community
district superintendents, establish in regulations a comprehensive
process of school-based budgeting and expenditure reporting no later
than November first, nineteen hundred ninety-eight. Notwithstanding any
provision of section twenty-five hundred ninety-q of this article to the
contrary, such regulations shall include provisions for:

a. the allocation of projected revenues among community districts and
their schools on the basis of objective formulae developed by the
chancellor, after consultation with the community boards, community
superintendents and the mayor, and approved by the city board, such
formulae shall reflect the relative educational needs of the community
districts and their schools to the maximum extent feasible;

b. the principal of each school to propose a school-based expenditure
budget, after soliciting input pursuant to section twenty-five hundred
ninety-h, and twenty-five hundred ninety-i of this article on budget
priorities from all members of the school community;

c. the review, modification and approval of the proposed school budget
by the community superintendent;

d. within amounts estimated by the chancellor, the aggregation of the
proposed school-based budgets, as modified and approved by the community
superintendent, with a proposed budget for the administrative and
operational expenses of the community superintendent and community
board, as developed by the community superintendent, for submission to
the chancellor;

e. the chancellor to develop a school-based budgeting process for
schools under his or her jurisdiction consistent with this section;

f. the aggregation of the community district budgets, as modified and
approved by the chancellor, with a proposed budget for administrative
and operational expenditures of the city board and the chancellor, as
prepared by the chancellor, for submission to and adoption by the city
board after a public hearing;

g. after final adoption of the budget for the city district by the
mayor and city council, a process of distributing any reductions or
increases required by such adoption in an equitable manner which
considers the relative needs of community districts and schools to the
maximum extent feasible and for modifying the proposed budget
accordingly. Such process shall include an analysis of the relative
funding levels of the state, the city, the federal government, and other
sources of funds; a comparison of the level of such funding against
previous years' total appropriations and actual expenditures; and an
analysis of the distribution of funds;

h. a comprehensive system of public reporting on the final enacted
budget including the levels of appropriation provided by the city, the
state and the federal government with a comparison of the level of such
funding against previous years' totals, and an explanation of the final
budget;

i. procedures for schools, superintendents and the chancellor to
modify and reallocate monies in the enacted budget;

j. a uniform system of budget requests, reports and appropriations.
Such units of appropriation shall include (i) such compensation and
benefits for staff; (ii) instruction and for pupil services, including
costs for purchases, library services, instructional materials, and all
other school-based instructional and instructional support costs
attributable to other than personal services; (iii) administrative and
non-instructional cost and (iv) extra-curricular activities;

k. the provision of appropriate technical support and training to
school personnel, parents and other participants in school-based
budgeting;

l. a comprehensive planning and monitoring process to promote the
implementation of school-based budgeting;

m. an annual update of a capital plan by the superintendent with
participation of principals and schools, addressing health and safety,
maintenance, capacity and technology; and

n. a collaborative school-based planning process involving parents,
teachers, other school personnel and, where appropriate, students to
effectuate the purposes of this section.

* NB Effective June 30, 2026