2016-17 state budget halts gap elimination adjustment |
On Board Online • April 11, 2016
By Cathy Woodruff
Senior Writer
New York's state budget for 2016-17 boosts state aid to school districts by significantly increasing foundation aid and eliminating the gap elimination adjustment, which has plagued school districts since the annual aid deductions began at the height of the last recession.
This year's overall $1.47 billion school aid increase provides $627 million more in foundation aid. The new budget also allocates $434 million to finally vanquish the last traces of the GEA, which was born as the "deficit reduction assessment" when it was introduced in 2009-10 by then-Gov. David Paterson to help close huge mid-year state budget deficits.
"To the GEA, we say RIP," said Timothy G. Kremer, NYSSBA's executive director.
The overall school aid package represents a 6.5 percent increase over 2015-16, the greatest hike since the pre-recession budget of 2008-09.
The new aid infusion arrives, however, as schools continue to face other revenue challenges including an extremely low tax cap growth factor.
"As schools tighten their belts to fit within the constraints of this year's record-low tax cap, the infusion of state aid will help them preserve student programs and services while still keeping property taxes in check," Kremer said.
Among other bright spots in the new budget is its heightened support for community schools, which combine a focus on high-quality academic instruction with expanded access to social services, health care and other supports for students and their families. Community schools, Kremer noted, "hold great promise to help struggling schools raise student achievement."
A significant number of districts, 225 in total, are required to set aside portions of their foundation aid (totaling $100 million statewide) to support community schools and other programs to improve student achievment, while another $75 million is allocated separately for support of community school initiatives in schools deemed to be struggling or persistently struggling.
"We are supportive of the community schools model," said Kremer. "But we have concerns about placing limits on the spending of foundation aid, which is meant to be unrestricted aid."
The 225 school districts identified for funding from the $100 million foundation aid set-aside pot include many rural districts and others that differ from the common idea of a community school as a neighborhood school in an urban setting. The grants range from less than $20,000 in tiny districts such as Elizabethtown, Green Island, Van Hornesville and Margaretville, to tens of millions for big urban districts. New York City is slated for nearly $28.5 million, Buffalo for $12.5 million and Syracuse for more than $10 million.
Questions remain about how districts can spend the new community school grants.
"The legislation adopted deals with these issues in broad strokes," said NYSSBA Director of Governmental Relations Julie Marlette. "We expect to see the details spelled out when the State Education Department develops regulations, and will continue to work to ensure that the programs have maximal district flexibility."
Other targeted investments in the 2016-17 budget include $22 million for expansion of pre-kindergarten programs for 3-year-olds, a proposal from the governor, and $20 million to help New York become the first to adopt a statewide version of My Brother's Keeper, an initiative from President Obama to improve the educational futures of young minority men and boys.
The budget adds $3 million in new funding for Early College High Schools such as P-TECHs. The funding includes $1 million for career and technical education (CTE), which is targeted for expansion of opportunities for minority students, English language learners and others now underserved by such programs.
The new budget also begins a transition in the way the STAR property tax program operates. For new homeowners, STAR will be provided through an income tax credit, rather than through a property tax exemption.
In a departure from other recent budgets, this year's spending plan treads lightly in the realm of education policy. It also leaves the door open for continued discussion of some remaining NYSSBA advocacy priorities during the remainder of the legislative session.
Protecting districts from financial penalties tied to enactment of new local teacher and principal evaluation plans remains high on NYSSBA's list. (See story, page 1.)
"We were hoping to see changes to ensure districts receive their state aid increases, regardless of whether they are evaluating educators under the new law 3012-d or not," Marlette said.
The issue has special urgency with districts vulnerable to losing state aid increases for two years, 2015-16 and 2016-17, she said. Districts that fail to complete new APPR plans required by last year's budget legislation (3012-d) by Sept. 1 could lose the aid increases enacted in both budgets.
Lawmakers also declined to include in the budget an "education tax credit" for those who donate to private schools and some public schools in the budget. NYSSBA opposes the tax credit, also known as the Parental Choice in Education Act or Education Investment Tax Credit, because it would divert hundreds of millions of dollars each year from the state's general fund.
NYSSBA will also continue to advocate for changes in New York's receivership law, another creature of last year's state budget. Potential improvements could include providing more time for schools to show demonstrable improvement and enhancing building aid for struggling and persistently struggling schools.