2004 Yellow Book
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EDUCATION DEPARTMENT (Summary)
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Adjusted
Appropriation
2003-04 		Executive
Request
2004-05 		Change Percent
Change

AGENCY SUMMARY

General Fund 13,793,978,500 13,925,127,600 131,149,100 1.0%
Special Revenue-Other 4,815,844,600 5,089,363,100 273,518,500 5.7%
Special Revenue-Federal 3,485,044,200 3,776,001,500 290,957,300 8.3%
Capital Projects Fund 3,750,000 90,300,000 86,550,000 2,308.0%
Internal Service Fund 19,603,900 20,833,000 1,229,100 6.3%
Total for Agency: 22,118,221,200 22,901,625,200 783,404,000 3.5%
Total Contingency: 8,274,000 7,239,000 (1,035,000) -12.5%

Total for AGENCY SUMMARY: 22,126,495,200 22,908,864,200 782,369,000 3.5%



 
ALL FUNDS PERSONNEL
BUDGETED FILL LEVELS
Fund Current
2003-04 		Requested
2004-05 		Change

General Fund: 422 381 (41)
All Other Funds: 2,632 2,273 (359)

TOTAL: 3,054 2,654 (400)
Budget Highlights

For the School Year (SY) 2004-05, the Executive provides an additional $85,337,000 in General Support for Public Schools (GSPS). This represents a 0.6 percent increase from SY 2003-04 levels. The Executive appropriates $22,901,625,000 on an All Funds basis to the Education Department. This includes a $131,149,100 General Fund (GF) increase over State Fiscal Year (SFY) 2003-04.

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

State Operations

The Executive proposes a net reduction of 400 Full Time Equivalent (FTE) positions in the State Education Department's (SED) staffing levels. This results from the Executive's proposal to transfer the Office of Cultural Education to the newly created New York Institute for Cultural Education (NYICE). The Executive would transfer the cultural programs administered by SED, the State Museum, the State Library, and the State Archives to NYICE. The Office is currently funded through Special Revenue Funds-Other and would not yield any General Fund savings.

The Executive proposes reducing 20 FTE positions through a management efficiency plan for a General Fund savings of $7,000,000. In addition, five FTE positions from the Office for Elementary, Middle, and Secondary Education would be eliminated through attrition, all of which are federally funded positions.

The Executive proposes the creation of 25 new FTE positions within the Office of Higher Education and the Professions to support four newly created professions that will be established this year. These new FTE positions will be funded through Special Revenue-Other funds.

The Executive proposes transferring funding streams for three FTE positions within the Office of Higher Education and the Professions. Currently, these are General Fund positions that deal specifically with tenured teacher disciplinary hearings. The Executive proposes aligning fiscal responsibility for tenured teachers' disciplinary hearings with the school district initiating such hearings, and transferring the three FTE positions over to a Special Revenue-Other fund supported by a chargeback to such districts. General Fund savings from this proposal are $1,300,000.

School Aid

The Executive proposes to consolidate seven separate aid categories into Flex Aid. These categories include Comprehensive Operating Aid (COA), Extraordinary Needs Aid (ENA), Educationally Related Support Services Aid (ERRSA), Limited English Proficiency (LEP), Summer School Aid, Tax Limitation Aid, and Public Excess Cost Aid. The $2,198,806,000 in funding for public special education will be consolidated within Flex Aid. Flex Aid would total $9,957,158,779 and would be maintained at 2003-04 levels for all districts.

The Executive proposes a new Sound Basic Education Grant that is a $100,000,000 matching grant for New York City.

The Executive proposes a $152,130,000 increase in Building Aid for a total of $1,344,720,000 in SY 2004-05. Additional reforms include replacement of the existing building aid program with a priority-based, State administered project selection process for projects approved after February 1, 2004. There will be a temporary moratorium on state aid for new construction until the new priority-based system is implemented. The Governor also proposes the use of a simplified formula to be used in the calculation of building aid allowable costs. The Governor continues payment reforms enacted in 2003-04. Additionally, the Executive proposes the creation of a State Clearinghouse for Efficient Construction Practices and Designs whereby the Dormitory Authority of the State of New York will provide advisory services and technical expertise to school districts. The Executive proposes elimination of the Wicks Law.

The Executive proposes a BOCES funding cut of $24,470,000 or 4.8 percent below SFY 2003-04 levels for a total of $480,580,000. This represents a $35,450,000 decrease from present law levels achieved by capping BOCES Aid to the amount received by the school district in the prior year. Additional changes to BOCES aid are also proposed including the elimination of aid for administrative services. BOCES will also be required to demonstrate savings compared to existing State contracting prices.

The Executive proposes a nominal $20,290,000 increase in Transportation Aid over SFY 2003-04 levels for a total of $1,092,230,000. However, this represents a $79,060,000 million cut from present law levels generated by school district expenses in the 2003-04 School Year. These savings are achieved through a cost containment cap of 2.5 percent on non-capital expenses and the payment of capital expenses through the issuance of State supported bonds. Beginning in 2005-06, the Executive proposes to reimburse capital expenses over a term consistent with the useful life of the asset.

Funding for Public and Private Excess Cost Aid will be limited to the statewide amount provided in 2003-04. Public Excess Cost is consolidated within Comprehensive Operating Aid and Private Excess Cost Aid is maintained at $187,417,000. This represents a combined present law decrease of $89,115,000 for services to disabled children who receive special education services in public and private settings.

The Executive proposes to fund instructional materials at present law levels, including a $360,000 decrease in Textbook Aid, a $520,000 increase in Software Aid, a $280,000 increase in Hardware Aid and a $320,000 increase in Library Materials Aid.

The Executive provides for a $16,340,000 decrease in Growth Aid for a total of $13,590,000 in SY 2004-05.

The Executive proposes modifications to the Reorganization Incentive Aids.

LADDER

The Executive proposes to maintain LADDER at 2003-04 funding levels.

Funding for Universal Pre-kindergarten is maintained at $201,940,000. In SY 2003-04, the Universal Pre-kindergarten Program served 58,825 four-year-olds across New York State.

The Executive proposes to maintain the Class Size Reduction Program at 2003-04 levels of $138,310,000.

The Executive proposes to maintain the Minor Maintenance Program at SY 2003-04 levels of $50,000,000.

The Executive cuts the Extended Day/School Violence Prevention Program by $1,510,000 or five percent below SY 2003-04 levels.

The Executive proposes to maintain Full Day Kindergarten Incentive Aid at present law levels of $3,660,000. This is a decrease of $3,910,000 below SY 2003-04 levels.

The Executive maintains targeted Pre-kindergarten at SY 2003-04 levels of $50,200,000.

The Executive once again provides no funding for Professional Development Grants, Shared Services or Educational Technology Incentive Aid.

Teacher Programs

The Executive’s proposed budget for SFY 2003-04 would maintain the Teachers of Tomorrow Program at $20,000,000.

The Executive proposes to cut funding for Teacher Centers by $20,000,000 below SY 2003-04 levels and fund the Program at $10,000,000 in SY 2004-05.

The Executive proposes to cut the Teacher Mentor Intern Program by $2,670,000 and fund the Program at $1,330,000.

The Executive proposes to cut Teacher Support Aid by $44,990,000 and fund the Program at $22,500,000.

Other Elementary and Secondary Education Programs

The Executive proposes to create the following categorical programs:

  • New York State Center for School Safety funded at $475,000;
  • Civility, Citizenship and Character Education funded at $500,000; and
  • Charter School Grants funded at $6,000,000.

The Executive proposes to increase the following categorical programs:

  • Nonpublic School Aid increase of $2,500,000;
  • Education of Native American increase of $3,000,000;
  • Homeless Pupils increase of $300,000;
  • Incarcerated Youth increase of $500,000; and
  • Education of OMH/OMR Pupils increase of $100,000.

The Executive proposes to reduce the following categorical programs by five percent:

  • Children of Migrant Workers reduction of $4,500;
  • Transferring Success reduction of $31,400;
  • AIDS Education reduction of $34,600;
  • Workplace Literacy reduction of $68,800;
  • Apprenticeship Training reduction of $91,500;
  • Comprehensive School Health Demonstration reduction of $18,300;
  • School Health Demonstration Project reduction of $7,500;
  • Schools Under Registration Review reduction of $100,000;
  • Primary Mental Health Project reduction of $28,500;
  • Consortium for Worker Education reduction of $450,000; and
  • Extended School Day/School Violence Prevention reduction of $1,510,000.

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

  • Targeted Pre-kindergarten funded at $50,200,000;
  • Adult Basic Education funded at $5,000,000;
  • Adult Literacy Education funded at $3,324,700;
  • Lunch/Breakfast Programs funded at $31,700,000;
  • Academic Intervention for Nonpublic Schools funded at $1,000,000;
  • Summer Food Program funded at $3,300,000; and
  • Aid for Small City School Districts funded at $81,880,000.

The Executive proposes $28,000,000 for Prior Year Claims/Fiscal Stabilization Grants, representing a decrease of $62,000,000.

The Executive recommends two deficiency appropriations of $8,000,000 each for Non-public School Aid. This additional $16,000,000 will bring the SFY 2003-04 total to $80,800,000 and the SFY 2002-03 total to $78,000,000. Additionally, the Executive recommends a $2,500,000 million increase in aid for Non-public schools for a total of $83,300,000 in SFY 2004-05.

Employment Preparation Education is maintained at $84,000,000 in SFY 2004-05.

The Executive proposes a $6,000,000 academic improvement grant for the Roosevelt School District.

The Executive proposes a $7,239,000 contingency appropriation for HURD City School Districts.

The Executive proposes $3,000,000,000 for STAR, a $164,000,000 million increase over SFY 2003-04 levels. STAR benefits are increased to recognize the effects of inflation. The Executive also recommends a $40,000,000 deficiency appropriation for the STAR Program in SFY 2003-04.

The Executive proposes a $10,000,000 increase in funding for the Advantage Schools after school program (funded within the Office of Children and Family Services) for a total of $20,200,000 in SFY 2004-05.

VESID

The Executive proposes $52,600,000 for Case Services, representing a decrease of $2,000,000 below SFY 2003-04 levels.

The Executive maintains $14,784,000 for Supported Employment.

The Executive proposes $10,194,000 for Independent Living Centers, representing a decrease of $536,600 or five percent below SFY 2003-04 levels.

Cultural Education

The Executive proposes $84,422,000 for Library Aid, representing a decrease of $4,443,000 or five percent below SFY 2003-04 levels.

The Executive proposes $13,138,000 for Aid for Public Broadcasting, representing a decrease of $692,000 or five percent below SFY 2003-04 levels.

Higher Education Programs

The Executive Proposal provides $142,679,000 in funding for Higher Education Programs administered by the State Education Department (SED). This represents a $1,365,000 reduction from SFY 2002-03 levels. The Executive Proposal provides support for higher education programs administered by SED at the following levels:
  • $42,037,500 for Bundy Aid, reflecting a reduction of $2,212,500 below SFY 2003-04 levels;
  • $10,925,000 to support the Liberty Partnership Program, reflecting a reduction of $575,000 below SFY 2003-04 levels;
  • $20,900,000 to support the Higher Education Opportunity Program (HEOP), reflecting a reduction of $1,100,000 below SFY 2003-04 levels;
  • $635,000 to support the Post-secondary Aid to Native American Program;
  • $9,500,000 to support the Science and Technology Entry Program and the Collegiate Science and Technology Entry Program (STEP/CSTEP), reflecting a reduction of $500,000 below SFY 2003-04 levels;
  • $712,500 to support the Teacher Opportunity Corps Program (TOC), reflecting a reduction of $37,500 below SFY 2003-04 levels; and
  • the elimination of support for the interpreter for the deaf training project at Rochester Institute of Technology.

Capital Projects

The Executive proposes Capital Projects Fund appropriations of $90,300,000 for SFY 2004-05. Projects include minor rehabilitation projects at State Education Department facilities at $1,000,000; the Rome School for the Deaf at $2,500,000; projects of the Cultural Education Center at $1,000,000; and Schools for Native Americans, including the St. Regis Mohawk Elementary School and the Tuscarora Elementary School, at $5,800,000. In addition, $80,000,000 in Capital Transition Grants is available to support the Executive's proposal to shifting transportation capital aid from a reimbursement program to an assumed amortization program.

Article VII Provisions Pertaining to Elementary and Secondary Education
Beginning with the 2004-05 school year, the Executive proposes that all State revenues generated by Video Lottery Terminals (VLTs) be dedicated to support the sound basic education requirements set forth in the State Constitution. The Executive projects these revenues to approximate $325,000,000 in SY 2004-05, growing to $2,000,000,000 over the next five years, contingent upon revenues from VLT facilities now being developed and the new facilities proposed.

The Executive recommends several reforms to 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. 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 Executive recommends establishing a New York Institute for Cultural Education (NYICE), that would be responsible for administration of the State Museum, the State Library, the State Archives and other cultural education programs that are currently administered by the State Education Department. This represents the transfer of 400 positions out of the State Education Department.

The Executive proposes placing a cap on school budget increases by limiting the increases to four percent or 120 percent of the increase in the Consumer Price Index for the prior year, whichever is less.

The Executive proposes aligning fiscal responsibility for tenured teachers' disciplinary hearings with the local district initiating such hearings.

The Executive proposes a requirement that the Board of Regents receive approval of the Governor's Office of Regulatory Reform for new regulations that would involve costs for schools, the State, or local governments.

The Executive proposes repeal of the Wicks Law. The Executive asserts that this will reduce the cost of new school construction by more than ten percent.

The Executive proposes reinstitution of the moratorium on preschool special education programs.

The Executive proposes expanding the Property Tax Report Card to require school districts to include information displaying the three year change in school tax levy compared to the change in the Consumer Price Index.

The Executive provides $2,000,000 in continued support of salaries for certain programs serving disabled children.

The Executive proposes transferring oversight of certain schools providing services under the Deaf Infant Program, currently administered by the State Education Department, to the Department of Health to be administered by the Early Intervention Program, which serves disabled infants and toddlers from birth to age three.

The Executive proposes establishing a chargeback whereby individual school districts will be responsible for funding the costs of disciplinary hearings involving tenured teachers. The State would still coordinate and oversee the teacher hearings, but responsibility for the costs would be assigned to the school district that initiates such hearings, representing savings to the State of $1,300,000.

The Executive proposes setting maximum reimbursement rates for appeals process costs within the Preschool Special Education Program. Additional changes are proposed related to the qualifications of independent hearing officers.

The Executive maintains the current STAR payment schedule.


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