2003 Yellow Book
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Education Department
(Summary)
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Adjusted
Appropriation
2002-03
Executive
Request
2003-04
Change Percent
Change

AGENCY SUMMARY

General Fund 13,781,587,499 13,010,943,000 (770,644,499) -5.6%
Special Revenue-Federal 3,290,495,000 3,444,201,200 153,706,200 4.7%
Special Revenue-Other 4,688,576,400 4,725,134,200 36,557,800 0.8%
Capital Projects Fund 9,765,000 3,750,000 (6,015,000) -61.6%
Capital Projects Fund - Advances 140,000,000 0 (140,000,000) -100.0%
Fiduciary 1,400,400 1,400,400 0 0.0%
Internal Service Fund 20,570,800 19,023,900 (1,546,900) -7.5%
Total for Agency: 21,932,395,099 21,204,452,700 (727,942,399) -3.3%
Total Contingency: 9,310,000 8,274,000 (1,036,000) -11.1%

Total for AGENCY SUMMARY: 21,941,705,099 21,212,726,700 (728,978,399) -3.3%

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* 1999-00 through 2001-02 reflect enacted appropriations.
* 2002-03 and 2003-04 reflect Executive recommended appropriations.

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ALL FUNDS PERSONNEL
BUDGETED FILL LEVELS
Fund Current
2002-03
Requested
2003-04
Change

General Fund: 448 293 (155)
All Other Funds: 2,704 1,124 (1,580)

TOTAL: 3,152 1,417 (1,735)


Budget Highlights

The Executive proposes to decrease General Support for Public Schools by $1,243,580,000, or 8.5 percent below School Year (SY) 2002-03 levels. The Executive appropriates $21,212,726,700 on an All Funds basis to the Education Department. This represents a decrease of $728,978,399 or 3.3 percent below State Fiscal Year (SFY) 2002-03.

This agency is included in the Education, Labor and Family Assistance appropriation bill.

State Operations

The Executive proposes a net reduction of 1,735 Full Time Equivalent (FTE) positions in the State Education Department's (SED) staffing levels. This reduction is primarily a result of the transfer of 1,544 FTE to other State agencies, as well as an additional 191 FTE positions eliminated through attrition or abolition. Of these 191 positions, 61 are to be eliminated by attrition, while 130 are to be reduced by a management efficiency plan to be submitted by the State Education Department and approved by DOB for a savings of $8,700,000 in State funds this year. The Executive proposes that this plan include the elimination of the State contribution for the 38 Board of Cooperative Educational Services (BOCES) district superintendent salaries for a savings of $1,600,000.

The Executive proposes the transfer of the Office of Cultural Education to the newly created New York Institute for Cultural Education (NYICE). This would transfer 400 associated positions to a new public benefit corporation. This proposal would transfer the cultural programs administered by SED, the State Museum, the State Library, and the State Archives, to the NYICE. This Office is currently funded through Special Revenue Funds-Other and would not yield any General Fund savings.

The Executive proposes transferring the Office of the Professions to the Department of State. This proposal would result in the transfer of 340 positions and their associated special revenue funding.

The Executive proposes transferring the Vocational and Educational Services for Individuals with Disabilities (VESID) to the Department of Labor. This proposal would result in the transfer of 804 positions funded through Special Revenue Funds-Federal and $393,000 in General Fund support for positions currently funded by the State. An additional 21 positions are to be eliminated through attrition.

The Executive proposes to eliminate 30 FTE positions from the Office of Management Services through attrition, which would not yield any General Fund savings. Currently these positions are funded through Special Revenue and Internal Service Funds.

The Executive also proposes to eliminate 10 FTE positions from the Office for Elementary and Secondary Education through attrition, all of which are Federally funded positions.

An additional savings of $5,000,000 will be attained through a sweep of funding from the Office of the Professions Account.

School Aid

The Executive proposes the consolidation of nine existing formula-based aids into one aid category entitled Comprehensive Operating Aid. The Governor proposes a $407,000,000 cut in this aid category or a 4 percent reduction. The new Comprehensive Operating Aid will replace existing formula aids including: Comprehensive Operating Aid, Gifted and Talented Aid, Public Excess Cost Aid, Educationally Related Support Services Aid (ERSSA), Extraordinary Needs Aids (ENA), Operating Standards Aids (OSA), Limited English Proficiency (LEP) Aid, Summer School Aid, and Academic Support Aid. The Executive appropriates $9,760,040,000 for Flex Aid for the 2003-04 School Year. This represents 73 percent of State Aid for General Support for Public Schools.

For the 2003-04 School Year (SY), a district's Comprehensive Operating Aid allocation is determined by an initial reduction to all school districts by 1.5 percent, followed by an additional reduction based on individual school district wealth and poverty measures. Reductions range from 2.00 to 8.75 percent for individual districts. School district reductions are limited to 5 percent of individual districts' Total General Fund Expense in 2002-03. The proposal includes a set aside for aid for pupils with limited English proficiency and Public Excess Cost to assure compliance with Federal requirements. It is unclear how prospective Consolidated Operating Aid for the 2004-05 School Year and thereafter will be calculated.

By eliminating targeted aid for students with disabilities under Public Excess Cost Aid, as well as aid which prevents the referral of students to special education provided through Educationally Related Support Services Aid (ERSSA), the Executive provides no additional funds to districts which may experience additional placements of children into special education programs and services.

The Executive recommends an appropriation of $1,112,500,000 for Building Aid. This represents a decrease of $144,070,000 below SY 2002-03 levels. Building Aid provides State reimbursement for approved capital projects based upon a district's wealth compared to the State average. The Executive recommends that projects that are approved by the voters after July 1, 2003 receive Building Aid based on a district's current Building Aid ratio rather than their selected aid ratio. Additional changes include replacement of the existing building aid program with a $130,000,000 pool of aid to fund school construction projects. State aid will be distributed based on a priority based selection process for projects approved by the Commissioner after February 1, 2003. In addition, the 10 percent building aid enrichment will be limited to instruction related projects only. The Governor also proposes the use of a simplified rated capacity determination in the calculation of building aid allowable costs. The Executive proposes exempting school districts from Wicks Law requirements for school construction projects.

The Governor proposes several changes to both public and private special education. The $2,117,990,000 in funding for public special education will be consolidated within Operating Aid. The allocation of aid based upon the number of special education placements will be discontinued. Additionally, the average State aid ratio used in calculating aid for placements in private special education settings will be reduced from 85 percent to 49 percent. This reduces funding for Private Excess Cost Aid by $70,680,000 in SY 2003-04. Placements in these private settings are for the most severely disabled children.

The Governor proposes a BOCES funding cut of $109,320,000 below SY 2002-03 levels. Several changes to BOCES are also proposed including the elimination of BOCES Aid for administrative services, prospectively consolidating BOCES Aid into Operating Aid beginning in the 2004-05 school year, and restructuring the role of BOCES superintendents. This program provides reimbursement to districts for shared services purchased through BOCES. There are 38 BOCES statewide that provide services to 670 school districts.

The Governor proposes a $6,150,000 decrease in Transportation Aid below SY 2002-03 levels. This represents a $128,000,000 cut below present law levels.

The Executive proposes to fund instructional materials at present law levels, including a $380,000 decrease in Textbook Aid, $550,000 increase in Software Aid, a $590,000 increase in Hardware Aid and a $120,000 increase in Library Materials Aid.

The Executive provides for a $15,000,000 reduction in Growth Aid.

LADDER

The Executive does not propose to fund programs that were statutorily enacted in SY 1997-98 as part of the Learning, Achieving, Developing by Directing Education Resources (LADDER) agreement. The Executive proposes to eliminate all funding for the LADDER program, including universal pre-kindergarten, reduced class size, full-day kindergarten, minor maintenance-repair, and extended day programs.

Funding for Universal Pre-kindergarten is eliminated. In SY 2002-03, there were 59,700 four-year-olds served by the Universal Pre-kindergarten Program across New York State. The 59,700 four-year-olds were funded by $201,000,000 in State Aid. The Executive proposes to eliminate all State support for this program.

In SY 2002-03, there were 2,471 additional classrooms provided by the K-3 Class Size Reduction program. These additional classrooms were funded by a $134,000,000 appropriation. The Executive proposes to eliminate funding for the K-3 Class Size Reduction program in SY 2003-04.

The Governor also proposes to eliminate $50,000,000 in funding for Minor Maintenance and $17,400,000 in funding for Full Day Kindergarten.

The Executive proposes to eliminate funding in SY 2003-04 for Extended School Day/School Violence Prevention grants. This represents a reduction of $30,200,000 in funding. Extended School Day/School Violence Prevention grants enable districts to provide after school programs, which include homework assistance, and arts and recreation, as well as school violence prevention programs.

The Executive, once again, proposes to provide no funding for Shared Services Aid for school districts that do not have access to a local BOCES for instructional support services, including professional development. Under the LADDER agreement this program was created to expand access to important support services for noncomponent school districts, including the five large city school districts.

The Executive, once again, proposes to provide no funding for Educational Technology Incentive Aid. Under the LADDER agreement, this program was enacted to give school districts the option of purchasing computer technology through a local BOCES or on their own and receive the same level of reimbursement.

The Executive once again provides no funding for Professional Development Grants. Professional Development Grants enable school districts to provide staff development in all areas.

Teachers

The Executive's proposed budget for SFY 2003-04 funds the Teachers of Tomorrow program at $20,000,000, a $5,000,000 reduction from 2002-03 levels. Existing program components are continued.

The Executive proposes to cut funding for Teacher Support Aid to $22,490,000, a reduction of $44,990,000 from SY 2002-03 levels.

The Executive proposes to cut funding for Teacher Resource Centers to $10,000,000, a reduction of $20,000,000 from SY 2001-02 levels.

The Executive proposes to cut funding for Teacher Mentor-Intern Aid to $1,670,000, a reduction of $3,330,000 from SY 2001-02 levels.

The Executive proposes to eliminate funding for the National Board for Professional Teaching Standards, a reduction of $500,000.

The Executive proposes to eliminate funding for New York City Peer Intervention, a reduction of $1,000,000.

Other Elementary and Secondary Education Programs

The Executive proposes to eliminate the following categorical programs:

  • Extended Day/ School Violence Prevention (reduction of $30,200,000)
  • Comprehensive School Health (reduction of $525,000)
  • Parenting Education (reduction of $506,000)
  • AIDS Education (reduction of $990,000)
  • Primary Mental Health Project (reduction of $570,000)
  • School Health Demonstration (reduction of $150,000)
  • Schools as Community Sites (reduction of $6,000,000)
  • Schools Under Registration Review (reduction of $2,000,000)
  • Transferring Success (reduction of $629,800)
  • Education of Children of Migrant Workers (reduction of $90,000)
  • Missing Children Prevention Education (reduction of $9900,000)
  • National Board for Professional Teaching Standards (reduction of $500,000)
  • New York City Peer Intervention (reduction of $1,000,000)

The Executive proposes to reduce the following categorical programs:

  • Experimental Pre-kindergarten (funded at $42,670,000, reduction of $3,765,000)
  • Consortium for Workers Education (funded at $8,000,000, reduction of $2,000,000)

The Executive proposes maintaining current funding levels for the following categorical programs.

  • Adult Basic Education (funded at $5,000,0000)
  • Adult Literacy Education (funded at $3,324,700)
  • Apprenticeship Training (funded at $1,830,000)
  • Incarcerated Youth (funded at $13,000,000)
  • Workplace Literacy (funded at $1,376,100)

The Executive recommends maintaining current funding levels for Aid to Small City School Districts of $81,880,000.

The Executive proposes a reduction in funding for Employment Preparation Education (EPE) from $96,180,000 to $76,700,000. Approved claims above this amount will be subject to pro-ration. This reduces State support for adult education to the minimum required match for obtaining federal funds for this purpose. The Executive also recommends that performance measures be included in the grant award process for EPE aid.

The Executive proposes level funding for Bilingual Education of $11,200,000.

Tax Limitation Aid currently funded at $25,000,000 is eliminated.

The Executive recommends $90,000,000 for prior year claims and fiscal stabilization grants. This represents an increase of $33,000,000 over SY 2002-03 levels.

The Executive proposes maintaining Magnet School funding at $135,800,000, categorically reading at $63,950,000 and improving pupil performance at $66,350,000.

Provides a $2,000,000 academic improvement grant for the Roosevelt Union Free School District.

A total of $72,800,000, an increase of $2,800,000, is recommended for Nonpublic School Aid. An additional $1,000,000 continues to be available to support a program of academic intervention services for students attending nonpublic schools.

Funding for the New York State Center for School Safety is continued at $500,000.

The Executive maintains funding for Civility, Citizenship and Character Education at $500,000.

The Executive maintains $6,000,000 for the Charter School Stimulus Fund. Up to $2,150,000 would be available to the SUNY Charter School Institute to support technical assistance for charter schools.

The Executive recommends replacing $2,000,000 in General Fund support for Targeted Special Education Teacher Salary Supplements with federal funding grants.

Provides $600,000 for School Evaluation Services to enhance the accountability and operational efficiency of public schools.

Provides $2,780,000,000 for STAR, an $80,000,000 increase over SY 2002-03 levels.

VESID

The Executive is recommending the merging of functions of the Vocational and Educational Services for Individuals with Disabilities (VESID) and of the Commission for the Blind and Visually Handicapped (CBVH) into the Department of Labor.

The Executive proposes $14,784,000 or a $5,500,000 increase for Supported Employment.

The Executive recommends $51,100,000 or a $2,000,000 decrease in Case Services.

The Executive proposes $9,530,600 or a $1,200,000 cut to Independent Living Centers.

Cultural Education

The Executive would create a public benefit corporation, the New York Institute for Cultural Education, which would assume certain activities previously administered by the State Library, the State Museum and the State Archives under the jurisdiction of the State Education Department. Responsibility for these programs would commence October 1, 2003.

The Executive proposes $75,600,000 for Public Library Aid, a decrease of $13,300,000 below SFY 2002-03 levels.

The Executive proposes $11,700,000 for Aid for Public Broadcasting, a decrease of $2,100,000 below SFY 2002-03 levels.

The Executive proposes $2,550,000 for the New York Public Library, a decrease of $450,000 below SFY 2002-03 levels.

Higher Education Program

The Executive Proposal provides $42,185,000 in funding for Higher Education Programs administered by the State Education Department (SED). This represents a $47,050,000 reduction from SFY 2002-03 levels. The Executive Proposal provides support for higher education programs administered by SED at the following levels:

  • $25,550,000 for Bundy Aid, reflecting a reduction of $18,700,000 below SFY 2002-03 levels;
  • $5,000,000 to support the Liberty Partnership Program reflecting a reduction of $6,500,000 below SFY 2002-03 levels;
  • $8,200,000 to support the Higher Education Opportunity Program (HEOP), reflecting a reduction of $8,200,000 below SFY 2002-03 levels; and
  • $635,000 to support the Post-secondary Aid to Native American Program.

The Executive proposes savings of $10,850,000 resulting from the eliminating of the Science and Technology Entry Program and the Collegiate Science and Technology Entry Program (STEP/CSTEP), the Teacher Opportunity Corps Program (TOC) and support for the interpreter for the deaf training project at Rochester Institute of Technology.

Capital Projects

The Executive proposes Capital Projects Fund appropriations of $3,750,000 for minor rehabilitation projects of State Education Department facilities ($2,000,000), the Rome School for the Deaf ($250,000), and Schools for Native Americans including the St. Regis Mohawk Elementary School and the Tuscarora Elementary School ($1,500,000).

Article VII Provisions Pertaining to Elementary and Secondary Education

The Executive proposes placing a cap on school budget increases limiting them to 4 percent or 120 percent of the increase in the Consumer Price Index (CPI) for the prior year, whichever is less. Local taxpayers may approve spending increases above this cap by a two-thirds majority vote.

The Governor proposes new performance measurements for programs providing literacy and job training to adults.

The Executive Budget language includes a new requirement that all of the State Education Department's federal discretionary funding be subject to plans approved by the Director of the Budget.

The Executive proposes to discontinue the State functions and duties of the District Superintendents of the Boards of Cooperative Educational Service (BOCES), along with a reduction in salary received by these superintendents due to the discontinuation of these functions.

The Executive does not propose the continuance of an accelerated STAR payment schedule for SY 2003-04.

The Executive proposes to extend existing restrictions on the expansion or creation of new pre-school special education programs for one year.

The Executive proposes to alter the funding for Committee on Special Education placements with respect to children in foster care. The current funding is 50 percent State funded and 50 percent county funded. The Executive would require 40 percent State funded, 40 percent county funded and 20 percent school district funded.

Governance

The Executive recommends significant changes regarding the appointment process and membership of the State Board of Regents. The number of Regents would be increased from 16 to 18 and the Governor would appoint 12 of these Regents, each representing an individual district. Legislative leaders would appoint the remaining six Regents, with two Regents appointed by the majority in each house, and one Regent by the minority in each house. The terms of the Regents are also extended from 5 to 6 years.

Language providing greater control by the mayors' over the school systems in Buffalo, Syracuse, Rochester and Albany is also expected.

Mandate Relief

The Executive proposes additional changes including: a requirement that the Board of Regents receive approval from the Governor's Office of Regulatory Reform for new regulations that would involve costs for schools, the State or local governments; and the removal of the members of the Committees on Special Education and Pre-school Special Education not mandated by Federal requirements.


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