2002 Yellow Book
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EDUCATION DEPARTMENT
 


                                  Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change



AGENCY SUMMARY
  General Fund              13,660,614,30013,508,321,200 (152,293,100)  -1.11%
  Special Rev.-Fed.          2,610,687,400 3,290,495,000  679,807,600   26.04%
  Special Rev.-Other         4,300,799,900 4,734,876,900  434,077,000   10.09%
  Fiduciary                      1,392,000     1,400,400        8,400    0.60%
  Internal Service Fund         19,448,200    20,570,800    1,122,600    5.77%
  Capital Projects Fund          2,500,000     9,765,000    7,265,000  290.60%
  Total for Agency:         20,595,441,80021,565,429,300  969,987,500    4.71%
  Total Contingency:            10,383,000     9,310,000   (1,073,000) -10.33%
  Total for AGENCY SUMMARY: 20,605,824,80021,574,739,300  968,914,500    4.70%


STATE OPERATIONS
  General Fund                  65,284,000    45,620,600  (19,663,400) -30.12%
  Special Rev.-Fed.            164,319,400   195,700,000   31,380,600   19.10%
  Special Rev.-Other            83,149,900    94,320,900   11,171,000   13.43%
  Fiduciary                      1,392,000     1,400,400        8,400    0.60%
  Internal Service Fund         19,448,200    20,570,800    1,122,600    5.77%
  Total for STATE OPERATIONS:  333,593,500   357,612,700   24,019,200    7.20%

Office of Management Services
  General Fund                  17,472,500    17,472,500            0    0.00%
  Special Rev.-Other            16,874,000    18,874,000    2,000,000   11.85%
  Fiduciary                        600,000       600,000            0    0.00%
  Internal Service Fund         11,550,000    12,550,000    1,000,000    8.66%
  Total for Program:            46,496,500    49,496,500    3,000,000    6.45%

Elementary, Middle and Secondary Education
  General Fund                  24,228,000    24,628,000      400,000    1.65%
  Special Rev.-Fed.             49,201,800    59,910,000   10,708,200   21.76%
  Special Rev.-Other               978,900       978,900            0    0.00%
  Total for Program:            74,408,700    85,516,900   11,108,200   14.93%

Cultural Education
  General Fund                  18,863,400             0  (18,863,400)-100.00%
  Special Rev.-Fed.              7,854,000     7,854,000            0    0.00%
  Special Rev.-Other             4,270,800    10,682,800    6,412,000  150.14%
  Fiduciary                        732,000       740,400        8,400    1.15%
  Internal Service Fund          7,898,200     8,020,800      122,600    1.55%
  Total for Program:            39,618,400    27,298,000  (12,320,400) -31.10%

School for the Blind
  Special Rev.-Other             7,537,900     7,537,900            0    0.00%
  Fiduciary                         40,000        40,000            0    0.00%
  Total for Program:             7,577,900     7,577,900            0    0.00%

School for the Deaf
  Special Rev.-Other             7,426,000     7,426,000            0    0.00%
  Fiduciary                         20,000        20,000            0    0.00%
  Total for Program:             7,446,000     7,446,000            0    0.00%

Vocational Educational Services for Individuals with Disabilities
  General Fund                     786,000       786,000            0    0.00%
  Special Rev.-Fed.            104,741,000   125,252,000   20,511,000   19.58%
  Special Rev.-Other               661,300       661,300            0    0.00%
  Total for Program:           106,188,300   126,699,300   20,511,000   19.32%

Batavia Intermediate Care Facility
  General Fund                     126,100       126,100            0    0.00%
  Special Rev.-Other             2,650,000     2,650,000            0    0.00%
  Total for Program:             2,776,100     2,776,100            0    0.00%

Higher Education and the Professions
  General Fund                   3,808,000     2,608,000   (1,200,000) -31.51%
  Special Rev.-Fed.              2,522,600     2,684,000      161,400    6.40%
  Special Rev.-Other            42,751,000    45,510,000    2,759,000    6.45%
  Total for Program:            49,081,600    50,802,000    1,720,400    3.51%

AID TO LOCALITIES
  General Fund              13,595,330,30013,462,700,600 (132,629,700)  -0.98%
  Special Rev.-Fed.          2,446,368,000 3,094,795,000  648,427,000   26.51%
  Special Rev.-Other         4,217,650,000 4,640,556,000  422,906,000   10.03%
  Total for AID TO LOCALITIES:20,259,348,30021,198,051,600938,703,300    4.63%

Elementary, Middle and Secondary Education
  General Fund              13,337,724,70013,205,095,000 (132,629,700)  -0.99%
  Special Rev.-Fed.          1,945,724,000 2,519,151,000  573,427,000   29.47%
  Special Rev.-Other         1,561,500,000 1,930,406,000  368,906,000   23.63%
  Total for Program:        16,844,948,70017,654,652,000  809,703,300    4.81%

Cultural Education
  General Fund                 105,700,000   105,700,000            0    0.00%
  Special Rev.-Fed.              4,660,000     4,660,000            0    0.00%
  Special Rev.-Other            10,150,000    10,150,000            0    0.00%
  Total for Program:           120,510,000   120,510,000            0    0.00%

Vocational Educational Services for Individuals with Disabilities
  General Fund                  70,870,600    70,870,600            0    0.00%
  Special Rev.-Fed.            495,984,000   570,984,000   75,000,000   15.12%
  Total for Program:           566,854,600   641,854,600   75,000,000   13.23%

School Tax Relief
  Special Rev.-Other         2,646,000,000 2,700,000,000   54,000,000    2.04%
  Total for Program:         2,646,000,000 2,700,000,000   54,000,000    2.04%

Higher Education and the Professions
  General Fund                  81,035,000    81,035,000            0    0.00%
  Total for Program:            81,035,000    81,035,000            0    0.00%

CAPITAL PROJECTS
  Capital Projects Fund          2,500,000     9,765,000    7,265,000  290.60%
  Total for CAPITAL PROJECTS:    2,500,000     9,765,000    7,265,000  290.60%

Education Building
  Capital Projects Fund                  0     1,695,000    1,695,000     --  
  Total for Program:                     0     1,695,000    1,695,000     --  

School for the Blind
  Capital Projects Fund                  0     1,700,000    1,700,000     --  
  Total for Program:                     0     1,700,000    1,700,000     --  

School for the Deaf
  Capital Projects Fund                  0       175,000      175,000     --  
  Total for Program:                     0       175,000      175,000     --  

Cultural Education Center
  Capital Projects Fund                  0     5,295,000    5,295,000     --  
  Total for Program:                     0     5,295,000    5,295,000     --  

Administration
  Capital Projects Fund          2,500,000       900,000   (1,600,000) -64.00%
  Total for Program:             2,500,000       900,000   (1,600,000) -64.00%

CONTINGENCY
  General Fund                  10,383,000     9,310,000   (1,073,000) -10.33%
  Total for CONTINGENCY:        10,383,000     9,310,000   (1,073,000) -10.33%

Elementary, Middle and Secondary Education
  General Fund                  10,383,000     9,310,000   (1,073,000) -10.33%
  Total for Program:            10,383,000     9,310,000   (1,073,000) -10.33%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Office of Management Services          468           455     (13)
Elementary, Middle and   
  Secondary Education                  529           524      (5)
Higher and Professional   
  Education                            147             0    (147)
Office of the Professions              361             0    (361)
Cultural Education                     446             0    (446)
School for the Blind                   104           104        0
School for the Deaf                    103           103        0
Vocational Educational Services   
  for Individuals with   
  Disabilities                       1,073         1,073        0
Batavia Intermediate Care   
  Facility                              37            37        0
Higher Education and the   
  Professions                            0           497      497

Total General Fund :                   753           420    (333)
Total All Other Funds :              2,515         2,373    (142)

TOTAL:                               3,268         2,793    (475)
                                                                    
                                                                    
       

                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 29-101)

The Executive proposes to increase General Support for Public Schools
by $5,960,000, or .04 percent over School Year (SY) 2001-02 levels. 
The Executive appropriates $21,574,739,300 on an All Funds basis to
the Education Department.  This represents an increase of $968,914,500
or 4.7 percent over State Fiscal Year (SFY) 2001-02.

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

State Operations

The Executive proposes a net reduction of the State Education
Department's (SED) staffing levels of 475 Full Time Equivalent (FTE)
positions.  This reduction is primarily a result of the transfer of
446 FTE, of which 295 are funded from the General Fund, from the
Office of Cultural Education to the proposed New York Institute for
Cultural Education (NYICE). This proposal would transfer the cultural
programs administered by SED - the State Museum, the State Library,
and the State Archives - to the NYICE. This proposal would eliminate
$18,863,400 in General Fund appropriations. 

The Executive proposes consolidating the Office of the Professions and
the Office of Higher Education into a new Office of Higher Education
and the Professions. This proposal would result in a net loss of 11
FTE positions - 20 General Fund positions are eliminated and 9 Special
Revenue Other Funds positions are created. The Executive proposes a
net increase of $1,720,400 for this new office- an increase of
$2,920,400 in Special Revenue Other Funds and General Fund reduction
of $1,200,000.  The Executive proposes eliminating General Fund
support for academic reviews of college and university programs, which
would generate in $1,200,000 in savings.

The Executive proposes to eliminate 13 FTE positions from the Office
of Management Services, which would not yield any net savings. 

The Executive also proposes to eliminate 5 FTE General Fund positions
from the Office for Elementary and Secondary Education. 

The Executive proposal includes an increase of $20,511,000 for the
Office of Vocational and Educational Services for Individuals with
Disabilities (VESID). This is a result of increased Federal grants
provided through the Individuals with Disabilities Education Act
(IDEA).

Aid to Localities

School Aid

The Executive proposes the consolidation of thirteen existing formula
based aids into one new aid category entitled Flex Aid.  The newly
created Flex Aid will replace Operating Aid, Tax Effort Aid, Tax
Equalization Aid, Gifted and Talented Aid, Minor Maintenance Aid,
Public Excess Cost Aid, Private Excess Cost Aid, Educationally Related
Support Services Aid (ERSSA), Extraordinary Needs Aid (ENA), Operating
Standards Aid (OSA), Limited English Proficiency (LEP) Aid, Boards of
Cooperative Educational Services (BOCES), and Special Services Aid. 
The Executive appropriates $10,415,000,000 for Flex Aid for the 2002-
03 School Year.  This represents 70 percent of State Aid for General
Support for Public Schools.

For the 2002-03 School Year, a district's Flex aid allocation is
determined by calculating its Flex Aid as provided for in the 2001-02
School Aid computer run entitled BT032-enacted in the 2001-02 State
Fiscal Year, plus the BOCES and Special Services Aid allocation
provided in SFY 2001-02.  This represents flat funding for Operating
Aid, Tax Effort Aid, Tax Equalization Aid, Gifted and Talented Aid,
Minor Maintenance Aid, Public Excess Cost Aid, Private Excess Cost
Aid, Educationally Related Support Services Aid (ERSSA), Extraordinary
Needs Aid (ENA), Operating Standards Aid (OSA), Limited English
Proficiency (LEP) Aid, Boards of Cooperative Educational Services
(BOCES), and Special Services Aid.

For the 2003-04 School Year and thereafter, prospective Flex Aid will
increase based on an incremental fixed dollar amount adjusted by
various school district wealth factors and regional cost.  The
Commissioner of Education will be required to proportionally adjust
the Flex Aid factors to ensure that future Flex Aid allocations
conform to the amount appropriated.

Within the Flex Aid formula, the Executive proposes to create
mandatory set-asides to direct funds to services for pupils who are
most in need of assistance to meet the State's higher learning
standards and for career education.  Also, New York City will be
required to set aside $33,000,000 of its Flex Aid for maintenance and
repair projects.  Finally, the Executive proposes a limited English
proficiency set-aside to ensure the continuation of services to pupils
with limited English proficiency.

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

In addition, the Executive eliminates distinct funding for BOCES Aid;
furthermore, funding is frozen at SY 2001-02 levels.  This program
provides reimbursement to districts for the shared services purchased
through BOCES.  There are 38 BOCES statewide that provide services to
670 school districts. 

The Executive recommends freezing Library Materials Aid at SY 2001-02
levels.  Currently, only $6 per pupil is provided for library
materials.

The Executive proposes an increase of $92,890,000, or 9.9 percent, for
Transportation Aid, which includes summer school transportation.  The
Executive recommends maintaining present law for Transportation Aid
and continuing a $5,000,0000 provision for summer school transporta-
tion.

The Executive proposes present law funding for Reorganization
Operating Aid which results in a year to year reduction of $1,970,000
and freezes Growth Aid and Tax Limitation Aid at SY 2001-02 levels.

The Executive also freezes funds for Summer School at SY 2001-02
levels.  This aid category provides additional funds to districts
based on the number of students served in approved summer school
programs. 

LADDER

The Executive proposes to provide discrete funding for certain of the
programs that were statutorily enacted in 1997-98 as part of the
Learning, Achieving, Developing by Directing Education Resources
(LADDER) agreement.  In addition, the Executive identifies $61.3
million in Federal Temporary Assistance for Needy Families (TANF)
funds to support selected educational programs including pre-
kindergarten, experimental pre-kindergarten and extended day.

In SY 2001-02, there were 54,640 four-year-olds served by the
Universal Pre-kindergarten Program across New York State.  The 54,640
four-year-olds were funded by $179,000,000 in State Aid.  The
Executive proposes to appropriate $204,670,000 for the Universal Pre-K
program in SY 2002-03 to provide continued funding for districts
already eligible for Universal Pre-kindergarten in SY 2001-02.

In SY 2001-02, there were 2,350 additional classrooms provided by the
K-3 Class Size Reduction program.  These additional classrooms were
funded by a $140,000,000 appropriation.  The Executive provides
$128,000,000 for the K-3 Class Size Reduction program in SY 2002-03. 
This represents flat funding for the districts that participated in
the program in SY 2001-02 minus a $10,000 start up grant per
classroom.  The elimination of the start up grant results in a
$11,850,000 reduction in the K-3 Class Size Reduction program.
 
The Executive eliminates funding for Minor Maintenance Aid in SY 2002-
03 by including Minor Maintenance Aid in the proposed Flex Aid
formula.

The Executive eliminates the incentive for conversion to Full Day
Kindergarten enacted in 1997.
 
The Executive, once again, provides 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, provides 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 provides $30,200,000 in SY 2002-03 for Extended School
Day/School Violence Prevention grants.  This represents level 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, provides no funding for Professional
Development Grants.  Professional Development Grants enable school
districts to provide staff development in all areas.

Enhancing funds for instructional materials is also a key component
of the LADDER program.  The Executive proposes to increase Textbook
Aid by $4,630,000 or 2.5 percent to total $190,580,000. In addition,
the Executive proposes to increase Software Aid by $500,000 or 1.1
percent to total $45,440,000.  Finally, the Executive proposes to
freeze Hardware Aid at SY 2001-02 levels.
 
Building Aid Modifications

The Executive appropriates $1,420,000,000 for Building Aid.  This
represents level funding.  Building Aid provides State reimbursement
for approved capital projects based upon a district's wealth compared
to the State average. The Executive proposes that the State's share
of Building Aid reimbursement for hard dollar projects will be
calculated based on an assumed amortization schedule depending on the
period of probable usefulness of the project financed by capital
outlay.  For new construction, Building Aid for capital outlay will
be paid on a 30 year amortization schedule.  For major reconstruction
and additions, Building Aid for capital outlay will be paid on a 20
year amortization schedule; for reconstruction, Building Aid for
capital outlay will be paid on a 15 year amortization schedule.  As
a result of this assumed amortization proposal, the Executive projects
a reduction of Building Aid by $130,000,000 for SY 2002-03.

The Executive recommends that projects that are approved by voters
after July 1, 2002 receive Building Aid based on a district's current
Building Aid ratio.  In addition, the Executive proposes to require
voter authorization of building projects within five years of a school
district reorganization in order to be eligible for the reorganization
incentive.  Finally, the Executive proposes allowing school districts
to use the Dormitory Authority for construction management services
and exempting school districts from Wicks Law requirements for school
construction projects.

Teachers

The Executive proposal for SY 2002-03 provides level funding for the
Teachers of Tomorrow program at $25,000,000. Existing program
components are continued and funding for additional eligible
components include alternative certification programs; teacher career
ladder grants of up to $3,400 to paraprofessionals to support
certification costs; math and science fellowships; math and science
summer academies to support up to 50 percent of the costs of a
teachers attendance; teacher induction programs.

The Executive proposes to cut funding for Teacher Support Aid to
$15,000,000, a reduction of $52,480,000 from SY 2001-02 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. 

Other Elementary and Secondary Education Programs

The Executive proposes to eliminate funding for the Youth at Risk
Program resulting in a reduction of $5,325,000 and the Effective
Schools Program resulting in a reduction of $1,889,200.

The Executive proposes maintaining current funding levels for the
following 16 categorical programs:

--      Adult Basic Education
--      Adult Literacy Education
--      AIDS Education
--      Apprenticeship Training
--      Comprehensive School Health
--      Consortium for Workers Education
--      Education of Children of Migrant Workers
--      Extended Day/School Violence Prevention
--      Missing Children Prevention Education
--      Parenting Education
--      Primary Mental Health Project
--      School Health Demonstration
--      Schools as Community Sites
--      Schools Under Registration Review
--      Transferring Success
--      Workplace Literacy

The Executive proposes to create a School-wide Performance Incentive
program for the Big 5 City School Districts, funded at $7,490,000 for
SY 2001-02.

The Executive proposes to maintain funding of $15,000,000 for the Fund
for Innovation, which provides support to the five large city school
districts for educational technology.

The Executive proposes appropriating $500,000 for character education
curriculum development and $500,000 for the Statewide Center for
School Safety to promote best practices and provide technical
assistance to schools.

The Executive recommends $57,000,000 for prior year claims. From this
amount, New York City would be eligible for up to $33,000,000. Other
large city school districts would be eligible for up to $700,000 each.


The Executive proposes maintaining Magnet School funding at
$135,650,000.

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

The Executive proposal maintains funding for Employment Preparation
Education at $96,180,000.

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

The Executive proposal would increase funding for the Advantage After-
School Program to $25,000,000, an increase of $5,000,000.

The Executive proposes $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 proposes $81,000,000 for a new Reading for Results
Initiative, which will be funded by Federal grant money. These funds
will be available over 3 years. 

The Executive proposes a $70,000,000 payment to Yonkers as part of a
court-approved settlement.

Article VII Proposals Pertaining to Elementary and Secondary Education

Building Aid

The Executive proposal would apply assumed amortization to the State
share of hard dollar construction projects. The Executive further
proposes that building aid provided for projects approved by voters
after July 1, 2002 is funded using the current building aid ratio.

New York Institute for Cultural Education (NYICE)

This proposal 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
July 1, 2002, with $5,000,000 in transition funding provided by a
partial sweep from the Office of Professions.  

NYICE would be funded by an increase from $5 to $20 in the existing
State surcharge charged by county clerks for filing, recording and
certifying of records. In addition, NYICE would have authority to
impose fees. NYICE would be governed by a 15 member board, 8 appointed
by the Governor, 2 each by the Senate and Assembly Majorities, 1 each
by the Senate and Assembly Minorities, and 1 by the Board of Regents,
to serve 5 year terms. 

Responsibility for chartering museums and libraries and licensing of
public television stations would remain with SED.

Preschool Special Education

This proposal would extend the existing moratorium on the creation of
new or expanded preschool programs serving children with disabilities
for three additional years. 

Mandate Relief

The Executive proposes exempting construction and construction
management from Wicks law bidding requirements by allowing school
districts to contract with the Dormitory Authority.

This proposal also requires the Commissioner of Education to review
all plans and reports required of school districts to determine their
current usefulness. 

Prior Year Claims

The Executive proposes a mechanism for accelerated payment of prior
year claims to the five large city school districts by authorizing the
Municipal Bond Agency to issue bonds in the amount of $214,000,000;
New York City is eligible for $204,000,000 of that amount. The
proposal calls for a school aid intercept in order to pay for debt
service. Each one of the large city school districts would have the
option of participating and would also have the option of bonding for
less than their total authorization. 

PILOTs

This proposal requires that payments in lieu of taxes (PILOTs)
received by school districts from non-nuclear electric generating
facilities are converted to actual value equivalents. This mirrors
present law provisions which apply PILOTs received from owners of
nuclear power generating plants.

Reorganization Incentives

This proposal requires the Commissioner of Education to update the
criteria for approving reorganized school districts. 

Academic Intervention

The Executive proposes $1,000,000 in funding for academic intervention
services to non-public schools. 

Governor's Program Bills

The Governor has signaled his intention to introduce legislation to
provide the mayors of the State's largest cities with control over
their schools. 

Higher Education Program

The Executive proposal provides $81,035,000 in funding for Higher
Education Programs within SED at the following levels:

--     $44,250,000 for Bundy Aid;
--     $11,500,000 to support the Liberty Partnership Program;
--     $7,500,000 for the Science and Technology Entry Program and the
       Collegiate Science and Technology Entry Program (STEP/CSTEP);
--     $16,400,000 to support the Higher Education Opportunity Program
       (HEOP);
--     $635,000 to support the Postsecondary Aid to Native American
       Program; and
--     $750,000 to support the Teacher Opportunity Corps Program
       (TOC).

Capital Projects

The Executive proposes Capital Projects Fund appropriations of
$9,700,000 for the State Education Department Building, the School for
the Blind in Batavia, the School for the Deaf in Rome, and the three
Native American schools on the Onondaga, St. Regis Mohawk and
Tuscarora Reservations. This also includes $5,000,000 in State
matching funds to NYICE for the Cultural Education Center.

Deficiency Appropriations

The Executive proposes a $36,200,000 increase to Special Revenue Other
Aid to Localities appropriation for General Support for Public Schools
(GSPS) to reflect a revised estimate in revenue from lottery sales. 
This increase would be offset by a corresponding decrease in General
Fund Aid to Localities.

The Executive proposes a $6,000,000 increase in General Fund Aid to
Localities to support the Charter School Stimulus Fund, $2,150,000 of
which is available to SUNY Charter School Institute.

The Executive proposes a $70,000,000 payment to the City of Yonkers
for a court approved settlement.

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