N.Y. Education Law § 3602: Apportionment of public moneys to school districts employing eight or more teachers

§ 3602. Apportionment of public moneys to school districts employing

eight or more teachers. Notwithstanding any other provisions of this

chapter or any other provisions of law, each school district of the

state employing eight or more teachers shall receive its apportionment

of public money payable during the school year commencing July first,

nineteen hundred ninety-three and during subsequent school years

pursuant to the provisions of this section and in lieu of any

apportionments or payments otherwise payable under any other section of

this chapter except any such apportionments or payments that may be

payable to such district for school lunches, for textbooks, school

library materials, computer hardware or computer software, for services

or programs provided by a board of cooperative educational services or

by a county vocational education and extension board for such district,

for the education of Indian children of a reservation under a contract

with the state, by virtue of chapter six hundred thirty-five of the laws

of nineteen hundred sixty-one, for school tax relief aid, or for

experimental or special programs in selected school districts, including

but not limited to special apportionments and grants-in-aid pursuant to

section thirty-six hundred forty-one of this article.

1. Definitions. As used in this section the following terms shall be

defined as follows:

a. "Current year" shall mean the school year during which the

apportionment is to be paid pursuant to this section.

b. "Base year" shall mean the school year immediately preceding the

current year.

c. "Actual valuation" shall mean the valuation of taxable real

property in a school district obtained by taking the assessed valuation

of taxable real property within such district as it appears upon the

assessment roll of the town, city, village, or county in which such

property is located, for the calendar year two years prior to the

calendar year in which the base year commenced, after revision as

provided by law, plus any assessed valuation that was exempted from

taxation pursuant to the class one reassessment exemption authorized by

section four hundred eighty-five-u of the real property tax law or the

residential revaluation exemption authorized by section four hundred

eighty-five-v of such law as added by chapter five hundred sixty of the

laws of two thousand twenty-one, and dividing it by the state

equalization rate as determined by the commissioner of taxation and

finance, for the assessment roll of such town, city, village, or county

completed during such preceding calendar year. The actual valuation of a

central high school district shall be the sum of such valuations of its

component districts. Such actual valuation shall include any actual

valuation equivalent of payments in lieu of taxes determined pursuant to

section four hundred eighty-five of the real property tax law. "Selected

actual valuation" shall mean the lesser of actual valuation calculated

for aid payable in the current year or the two-year average of the

actual valuation calculated for aid payable in the current year and the

actual valuation calculated for aid payable in the base year.

d. "Average daily attendance" shall mean the total number of

attendance days of pupils in a public school of a school district in

kindergarten through grade twelve, or equivalent ungraded programs, plus

the total number of instruction days for such pupils receiving homebound

instruction including pupils receiving remote instruction as defined in

the regulations of the commissioner, divided by the number of days the

district school was in session as provided in this section. The

attendance of pupils with disabilities attending under the provisions of

paragraph c of subdivision two of section forty-four hundred one of this

chapter shall be added to average daily attendance.

(1) Equivalent attendance shall mean the quotient of the total number

of student hours of instruction in programs in a public school of a

school district or a board of cooperative educational services leading

to a high school diploma or a high school equivalency diploma as defined

in regulations of the commissioner for pupils under the age of

twenty-one not on a regular day school register of the district, divided

by one thousand. Average daily attendance shall include the equivalent

attendance of the school district. For the purposes of secondary school

weighting, such equivalent attendance shall be considered as average

daily attendance in grades seven through twelve.

(2) In computing average daily attendance, school districts may, with

the commissioner's approval, exclude attendance for those days on which

school attendance was adversely affected because of an epidemic or

manmade or natural disaster or act of terrorism. In computing such

attendance, the school district shall: (i) determine the number of

religious holidays which fall on a school day within a school year

according to regulations established by the commissioner, such religious

holidays to be duly recognized as such for purposes of this section by

duly adopted resolution of the board of education; (ii) deduct the

aggregate attendance on such religious holidays from the total aggregate

attendance, by grade level; (iii) deduct such religious holidays from

the total number of days of session, by grade level; and (iv) compute

the average daily attendance for the school year.

e. Pupils with special educational needs.

(1) "Percentage of pupils with special educational needs" shall be

based on the following tests: the third and sixth grade reading and math

tests administered in spring of nineteen hundred eighty-five and the

spring of nineteen hundred eighty-six. Such percentage shall be

calculated as follows:

(i) determine the number of pupils tested who scored below the

statewide reference point as determined by the commissioner on each test

administered pursuant to this subparagraph, plus pupils, other than

pupils with disabilities and English language learner pupils as defined

by the commissioner who are exempt from taking such tests, provided,

however, that a district employing eight or more teachers in such years

but not operating each grade may use the percentage computed pursuant to

this paragraph for the district which in such years enrolled the

greatest number of pupils in such grade from such district;

(ii) divide the sum of such numbers by the number of such pupils who

took each of such tests, plus pupils, other than pupils with

disabilities and English language learner pupils as defined by the

commissioner who are exempt from taking such tests, provided, however,

that a district which in any of the applicable school years did not

maintain a home school or employed fewer than eight teachers, and which

in the base year employed eight or more teachers, may use the scores in

a later test as designated by the commissioner for the purposes of this

paragraph;

(iii) express the result as a percentage carried to one decimal place

without rounding; and

(iv) for the purposes of the computation made pursuant to this

subparagraph, pupils attending campus schools of the state university

shall be included in the numbers of pupils in the district in which they

reside. The percentage of such pupils in component districts shall be

used in the case of central high school districts. The commissioner

shall make adjustments for differences in tests and test administration

in accordance to regulations adopted for such purposes.

(2) (i) For the computation of total wealth pupil units, "pupils with

special educational needs" shall be computed by multiplying the

percentage of pupils with special educational needs by the district's

adjusted average daily attendance.

(ii) For the computation of total aidable pupils units pursuant to

subdivision eight of this section for aid payable in the nineteen

hundred ninety-seven--ninety-eight through the two thousand six--two

thousand seven school years, "pupils with special educational needs"

shall be the product of the percentage of pupils with special

educational needs, the district's adjusted average daily attendance for

the year prior to the base year, and the enrollment index.

(iii) For the computation of total aidable pupils units pursuant to

paragraph e of subdivision two of this section for aid payable in the

two thousand seven--two thousand eight school year and thereafter,

"pupils with special educational needs" shall be the product of the

percentage of pupils with special educational needs, the district's

adjusted average daily attendance for the year prior to the base year,

and the enrollment index.

(3) "Weighted pupils with special educational needs" shall be computed

by multiplying pupils with special educational needs by twenty-five

percentum, with the result rounded up to the next whole number. For the

purposes of the computation of additional aidable pupil units for

inclusion in total wealth pupil units, the computations made pursuant to

this paragraph shall include only resident pupils.

f. "Expense per pupil" shall mean approved operating expense for the

year prior to the base year divided by the sum, computed using year

prior to the base year pupil counts, of the total aidable pupil units

plus weighted pupils with disabilities, provided that for the two

thousand six--two thousand seven school year and prior school years,

total aidable pupil units plus weighted pupils with handicapping

conditions shall be used in such computation. Expense per pupil for each

borough in the city school district of the city of New York shall be the

expense per pupil of the entire city school district.

g. "Summer session pupils" shall mean those pupils attending approved

programs of instruction operated by the district during the months of

July and August in accordance with the regulations promulgated by the

commissioner.

h. "Adjusted gross income" shall mean the adjusted gross income of a

school district for the calendar year three years prior to the calendar

year in which the current year commences. The income data shall be

computed in accordance with regulations adopted by the commissioner of

taxation and finance based upon personal income tax returns for the

calendar year three years prior to the calendar year in which the

current school year commences, as reported to the commissioner by

September of the base year, including the results of the permanent

computerized statewide school district address match and income

verification system. Commencing with calendar year two thousand

twenty-two, New York state lottery and video lottery gaming individual

prizes in excess of one million dollars that when aggregated exceeds

twenty-five percent of a district's adjusted gross income shall be

excluded from such district's adjusted gross income for the year. The

commissioner of taxation and finance shall determine the amount of this

exclusion based on the annual report of New York state lottery and video

lottery gaming individual prizes in excess of one million dollars

produced by the gaming commission pursuant to paragraph three of

subdivision c of section sixteen hundred four of the tax law. The

adjusted gross income of the city school district of the city of New

York shall be the sum of the adjusted gross income of the boroughs of

the city. The adjusted gross income of a central high school district

shall equal the sum of the adjusted gross income of each of its

component school districts. "Selected adjusted gross income" shall mean

the lesser of adjusted gross income calculated for aid payable in the

current year or the two-year average of the adjusted gross income

calculated for aid payable in the current year and the adjusted gross

income calculated for aid payable in the base year.

i. "Weighted pupils with disabilities" shall be computed as follows:

(1) "Pupils with disabilities" shall mean pupils of school age who are

identified as students with disabilities pursuant to article eighty-nine

of this chapter and the regulations of the commissioner and who receive

special education services or attend special education programs which

meet criteria established by the commissioner, operated by a school

district eligible for total foundation aid pursuant to this section or

by a board of cooperative educational services, whether or not the

school district is a component of such board.

(2) "Declassification pupils" shall mean pupils enrolled in a

full-time regular education program, who were enrolled in a special

education program in the prior year. Services to pupils shall be

provided on a regular basis and may include, but not be limited to

psychological, social work, speech and language services and noncareer

counseling services provided by qualified professional personnel as

defined in regulations of the commissioner. Services for teachers of

such pupils may include the assistance of teacher aides or consultation

with appropriate personnel. When a committee on special education

determines that a pupil no longer needs special education services and

is ready for a full-time regular education program, such committee shall

identify and recommend the appropriate declassification support services

for the first year in the regular education program.

(3) "Weighted pupils with disabilities" shall mean the attendance, as

defined in the regulations of the commissioner, of pupils with

disabilities who have been determined by a school district committee on

special education to require any of the following types and levels of

programs or services specified in this subparagraph, and who receive

such programs and services from the school district of attendance during

the base year, multiplied by a special services weighting determined as

follows:

(i) for placement for sixty per centum or more of the school day in a

special class, or home or hospital instruction for a period of more than

sixty days, or special services or programs for more than sixty per

centum of the school day, the special services weighting shall be one

hundred seventy percent;

(ii) for placement for twenty per centum or more of the school week in

a resource room or special services or programs including related

services required for twenty per centum or more of the school week, or

in the case of pupils in grades seven through twelve or a multi-level

middle school program as defined by the commissioner or in the case of

pupils in grades four through six in an elementary school operating on a

period basis, the equivalent of five periods per week, but not less than

the equivalent of one hundred eighty minutes in a resource room or in

other special services or programs including related services, or for at

least two hours per week of direct or indirect consultant teacher

services, in accordance with regulations of the commissioner adopted for

such purpose, the special services weighting shall be ninety percent.

(3-a) "Resident weighted pupils with disabilities" shall mean weighted

pupils with disabilities minus the nonresident weighted pupils with

disabilities plus the resident weighted pupils with disabilities to whom

special services or programs are provided by another public school

district.

(4) "Weighted foundation pupils with disabilities" shall mean the sum

of

(i) the full-time equivalent enrollment, as defined in the regulations

of the commissioner, of pupils with disabilities who have been

determined by a school district committee on special education to

require any of the following types and levels of programs or services

specified in this subparagraph, and who receive such programs and

services from the school district of attendance, multiplied by a special

services weighting based on an analysis of costs of special education

and general education in successful school districts, provided that the

weighting for the two thousand seven--two thousand eight school year and

thereafter shall be one and forty-one hundredths (1.41):

(A) placement for sixty per centum or more of the school day in a

special class, or

(B) home or hospital instruction for a period of more than sixty days,

or

(C) special services or programs for more than sixty per centum of the

school day, or

(D) placement for twenty per centum or more of the school week in a

resource room or to require special services or programs including

related services for twenty per centum or more of the school week, or in

the case of pupils in grades seven through twelve or a multi-level

middle school program as defined by the commissioner or in the case of

pupils in grades four through six in an elementary school operating on a

period basis, the equivalent of five periods per week, but not less than

the equivalent of one hundred eighty minutes in a resource room or in

other special services or programs including related services, or

(E) at least two hours per week of direct or indirect consultant

teacher services, in accordance with regulations of the commissioner

adopted for such purpose, plus

(ii) the full time equivalent enrollment of declassification pupils

multiplied by a declassification weighting of five-tenths (0.5).

(5) "Resident weighted supplemental pupils with disabilities" shall

mean weighted supplemental pupils with disabilities minus the

nonresident weighted supplemental pupils with disabilities plus the

resident weighted supplemental pupils with disabilities to whom special

services or programs are provided by another public school district,

where "weighted supplemental pupils with disabilities" shall mean the

attendance, as defined in the regulations of the commissioner, of pupils

with disabilities who have been determined by a school district

committee on special education to require any of the following types and

levels of programs or services specified in this subparagraph, and who

receive such programs and services from the school district of

attendance during the base year, multiplied by a special services

weighting determined as follows:

(i) for placement for sixty per centum or more of the school day in a

special class, or home or hospital instruction for a period of more than

sixty days, or special services or programs for more than sixty per

centum of the school day, the special services weighting shall be one

hundred sixty-five percent;

(ii) for placement for twenty per centum or more of the school week in

a resource room or special services or programs including related

services required for twenty per centum or more of the school week, or

in the case of pupils in grades seven through twelve or a multi-level

middle school program as defined by the commissioner or in the case of

pupils in grades four through six in an elementary school operating on a

period basis, the equivalent of five periods per week, but not less than

the equivalent of one hundred eighty minutes in a resource room or in

other special services or programs including related services, or for at

least two hours per week of direct or indirect consultant teacher

services, in accordance with regulations of the commissioner adopted for

such purpose, the special services weighting shall be ninety percent.

(6) "Integrated settings weighted pupils with disabilities" shall be

the product of the attendance in the year prior to the base year of

pupils who have been determined by a committee on special education to

require special services or programs for sixty per centum or more of the

school day pursuant to clause (i) of subparagraph three of this

paragraph and are provided special services or programs in the general

education setting by qualified personnel, as defined in the regulations

of the commissioner, multiplied by five tenths.

j. "Total foundation aid base" for the purposes of this section (i)

for aid payable in the two thousand seven--two thousand eight school

year, the total foundation aid base shall equal the total amount a

district was eligible to receive in the base year for

(1) flex aid in an amount equal to the sum of (A) the amount set forth

for each school district as "FLEX AID" under the heading "2005-06 Base

Year Aids" in the school aid computer listing produced by the

commissioner in support of the executive budget request for the

2006--2007 school year and entitled "BT131-6", and (B) the additional

FLEX aid equivalent as computed pursuant to chapter fifty-eight of the

laws of two thousand six;

(2) the extraordinary needs equivalent aid apportionment computed

pursuant to chapter fifty-eight of the laws of two thousand six, as

amended by chapter sixty-one of the laws of two thousand six;

(3) an amount equal to the amount such district received for early

grade class size reduction grants pursuant to or in lieu of subdivision

thirty-seven of this section, provided that such amount computed and

payable as of September one of the school year immediately following the

school year for which such aid is claimed shall be deemed final and not

subject to change;

(4) the growth aid equivalent apportionment computed pursuant to

chapter fifty-eight of the laws of two thousand six;

(5) the enrollment adjustment aid apportionment computed pursuant to

chapter fifty-eight of the laws of two thousand six;

(6) the reorganization incentive operating aid equivalent computed

pursuant to chapter fifty-eight of the laws of two thousand six;

(7) the tax limitation aid equivalent computed pursuant to chapter

fifty-eight of the laws of two thousand six;

(8) the high tax aid apportionment computed pursuant to chapter

fifty-eight of the laws of two thousand six, as amended by chapter

sixty-one of the laws of two thousand six;

(9) the additional limited English proficiency aid equivalent

apportionment computed pursuant to chapter fifty-eight of the laws of

two thousand six, as amended by chapter sixty-one of the laws of two

thousand six;

(10) the positive difference of the public excess cost aid equivalent

apportionment computed pursuant to chapter fifty-eight of the laws of

two thousand six, minus the amount computed under paragraph five of

subdivision nineteen of this section;

(11) teacher support payments made in the 2006--2007 school year as

follows: to the city school district of the city of New York, sixty-two

million seven hundred seven thousand dollars; to the Buffalo city school

district, one million, seven hundred forty-one thousand dollars; to the

Rochester city school district, one million, seventy-six thousand

dollars; to the Syracuse city school district, eight hundred nine

thousand dollars; and to the Yonkers city school district, one million,

one hundred forty-seven thousand dollars;

(12) an amount equal to the amount such district was eligible to

receive pursuant to or in lieu of subdivision thirty-one-a of this

section;

(13) an amount equal to a share of three million dollars in the same

proportion as such district's share of Fort Drum school district grants

for the 2005--2006 school year, and additional amounts provided to the

Indian River central school district, the Watertown city school district

and the Carthage central school district pursuant to chapter fifty-three

of the laws of two thousand six to account for an increase in student

enrollment as a result of the expansion of Fort Drum;

(14) payments made in the 2006--2007 school year for magnet school

grants pursuant to or in lieu of subdivision five of section thirty-six

hundred forty-one of this article, as follows: to the Albany city school

district, three million, five hundred fifty thousand dollars; to the

Amsterdam city school district, eight hundred thousand dollars; to the

Beacon city school district, five hundred sixty-six thousand dollars; to

the Buffalo city school district, twenty-one million twenty-five

thousand dollars; to the Freeport union free school district, four

hundred thousand dollars; to the Greenburgh central school district,

three hundred thousand dollars; to the Hudson city school district, four

hundred thousand dollars; to the Middletown city school district, four

hundred thousand dollars; to the Mount Vernon city school district, two

million dollars; to the New Rochelle city school district, one million,

four hundred ten thousand dollars; to the city school district of the

city of New York, forty-eight million, one hundred seventy-five thousand

dollars; to the Newburgh city school district, four million, six hundred

forty-five thousand dollars; to the Niagara Falls city school district,

six hundred thousand dollars; to the Peekskill city school district, two

hundred thousand dollars; to the Port Chester city school district, one

million, one hundred fifty thousand dollars; to the Poughkeepsie city

school district, two million, four hundred seventy-five thousand

dollars; to the Rochester city school district, fifteen million dollars;

to the Schenectady city school district, one million, eight hundred

thousand dollars; to the Syracuse city school district, thirteen million

dollars; to the Utica city school district, two million dollars; to the

White Plains city school district, nine hundred thousand dollars; to the

Yonkers city school district, forty-nine million, five hundred thousand

dollars;

(15) an amount equal to the amount received by such district in the

2005--2006 school year pursuant to subdivision six of section thirty-six

hundred forty-one of this article;

(16) an amount equal to the amount received by such district in the

2005--2006 school year pursuant to subdivision seven of section

thirty-six hundred forty-one of this article;

(17) sound basic education aid equal to the sum of (A) the district's

base year apportionment for sound basic education aid set forth for each

school district as "2005-2006 Sound Basic Education" in the school aid

computer listing produced by the commissioner in support of the

executive budget request for the 2006--2007 school year and entitled

"BT131-6" plus (B) the product of three hundred seventy-five million

dollars ($375,000,000) multiplied by the district's SBE ratio. The "SBE

ratio" shall be equal to the quotient of the district's apportionment

for sound basic education aid set forth for each school district as

"2005-06 Sound Basic Education" in the school aid computer listing

produced by the commissioner in support of the executive budget request

for the 2006--2007 school year and entitled "BT131-6", divided by the

sum of such apportionments set forth for all school districts as

"2005-06 Sound Basic Education" in such school aid computer listing

entitled "BT131-6".

(18) the net tuition adjustment computed for the 2006--07 school year

pursuant to or in lieu of paragraph g of subdivision two of this

section.

(ii) For aid payable in the two thousand eight--two thousand nine

school year and thereafter, the total foundation aid base shall equal

the total amount a district was eligible to receive in the base year

pursuant to subdivision four of this section.

k. "Attendance ratio" shall mean the number computed to four decimals

without rounding when the aggregate days attendance is divided by the

possible aggregate attendance of all pupils in attendance in the

district, as computed for each school district by the commissioner by

June first of the year following the attendance year.

l. "Average daily membership" shall mean the possible aggregate

attendance of all pupils in attendance in a public school of the school

district in kindergarten through grade twelve, or equivalent ungraded

programs, including possible aggregate attendance for such pupils

receiving homebound instruction, including pupils receiving remote

instruction as defined in the regulations of the commissioner, with the

possible aggregate attendance of such pupils in one-half day

kindergartens multiplied by one-half, divided by the number of days the

district school was in session as provided in this section. The full

time equivalent enrollment of pupils with disabilities attending under

the provisions of paragraph c of subdivision two of section forty-four

hundred one of this chapter shall be added to average daily membership.

Average daily membership shall include the equivalent attendance of the

school district, as computed pursuant to paragraph d of this

subdivision. In any instance where a pupil is a resident of another

state or an Indian pupil is a resident of any portion of a reservation

located wholly or partly within the borders of the state pursuant to

subdivision four of section forty-one hundred one of this chapter or a

pupil is living on federally owned land or property, such pupil's

possible aggregate attendance shall be counted as part of the possible

aggregate attendance of the school district in which such pupil is

enrolled.

n. (1) "Enrollment" shall mean the unduplicated count of all children

registered to receive educational services in grades kindergarten

through twelve, including children in ungraded programs, as registered

on the date prior to November first that is specified by the

commissioner as the enrollment reporting date for the school district or

nonpublic school, as reported to the commissioner.

(2) "Public school district enrollment" shall mean the sum of: (1) the

number of children on a regular enrollment register of a public school

district on such date; (2) the number of children eligible to receive

home instruction in the school district on such date; (3) the number of

children for whom equivalent attendance must be computed pursuant to

this subdivision on such date; (4) the number of children with

disabilities who are residents of such district who are registered on

such date to attend programs under the provisions of paragraph c of

subdivision two of section forty-four hundred one of this chapter; (5)

the number of children eligible to receive educational services on such

date but not claimed for aid pursuant to subdivision seven of section

thirty-two hundred two of this chapter; and (6) the number of children

registered on such date to attend programs (i) pursuant to subdivision

two of section three hundred fifty-five of this chapter or (ii) pursuant

to an agreement between the city school district of the city of New York

and Hunter College pursuant to section sixty-two hundred sixteen of this

chapter.

(3) "Nonpublic school enrollment" shall mean the number of children on

a regular enrollment register of a nonpublic school meeting the

compulsory attendance law, excluding any child counted as part of the

enrollment of a public school district.

(4) "Resident public school district enrollment" shall be the public

school district enrollment less the public school district enrollment of

nonresident pupils attending public schools in the district, plus the

public school district enrollment of pupils resident in the district but

attending public schools in another district or state plus the public

school district enrollment of pupils resident in the district but

attending full-time a school operated by a board of cooperative

educational services or a county vocational education and extension

board. Indian pupils who are residents of any portion of a reservation

located wholly or partly within the borders of the state pursuant to

subdivision four of section forty-one hundred one of this chapter and

are attending public school, or pupils living on the United States

military reservation at West Point attending public school, shall be

deemed to be resident pupils of the district providing such school, for

purposes of this paragraph. Where a school district has entered into a

contract with the state university pursuant to subdivision two of

section three hundred fifty-five of this chapter under which the school

district makes payments in the nature of tuition for the education of

certain children residing in the district, such children for whom such

tuition payments are made shall be deemed to be resident pupils of such

district for the purposes of this paragraph. No student shall be counted

more than once, except that, in determining the resident public school

district enrollment of a component school district of a central high

school district the resident public school district enrollment of high

school pupils residing in such component district and attending the

central high school shall be included, and in determining the resident

public school district enrollment of a central high school district the

resident public school district enrollment of elementary school pupils

residing in such central high school district and attending a component

district of the central high school district shall be included.

(5) "Resident nonpublic school district enrollment" shall be the

nonpublic school district enrollment less the nonpublic school district

enrollment of nonresident pupils attending nonpublic schools in the

district, plus the nonpublic school district enrollment of pupils

resident in the district but attending nonpublic schools in another

district of the state.

(6) "Additional public school enrollment" shall mean resident students

with disabilities placed by public school districts in approved private

schools, the New York state school for the blind at Batavia, or the New

York state school for the deaf at Rome and resident students placed in

schools subject to the provisions of chapter five hundred sixty-three of

the laws of nineteen hundred eighty as amended.

(7) In determining enrollment pursuant to subparagraphs two, three,

four, five and six of this paragraph for central high school districts

and all school districts located within the boundaries of a central high

school district, for the purposes of any apportionments payable to both

central high school districts and to other school districts located

within the boundaries of such central high school districts pursuant to

this chapter, and for the purposes of computing the poverty count

pursuant to paragraph q of this subdivision and the school district

basic contribution pursuant to subdivision eight of section forty-four

hundred one of this chapter, only those children in the grade levels

maintained by a central high school district shall be included in the

enrollment used to apportion aid to such central high school district

and only those children of the grade levels maintained by a component

school district of a central high school district shall be included in

the public school district enrollment of such component school district.

o. "English language learner count" shall mean the number of pupils

served in the base year in programs for pupils who are English language

learners approved by the commissioner pursuant to the provisions of this

chapter and in accordance with regulations adopted for such purpose.

q. "Poverty count" shall mean the sum of the product of the

economically disadvantaged student count multiplied by sixty-five

percent, plus the product of the SAIPE count multiplied by sixty-five

percent, where:

(i) "Economically disadvantaged student count" shall mean the product

of the public school enrollment of the school district on the date

enrollment was counted in accordance with this subdivision for the base

year multiplied by the three-year average economically disadvantaged

rate; and

(ii) "SAIPE count" shall mean the product of the public school

enrollment of the school district on the date enrollment was counted in

accordance with this subdivision for the base year multiplied by the

three-year average small area income and poverty estimate rate.

(iii) "Three-year average small area income and poverty estimate rate"

shall equal the quotient of: (i) the sum of the number of persons aged

five to seventeen within the school district, based on the small area

income and poverty estimates produced by the United States census

bureau, whose families had incomes below the poverty level for the

calendar year prior to the year in which the base year began, plus such

number for the calendar year two years prior to the year in which the

base year began, plus such number for the calendar year three years

prior to the year in which the base year began; divided by (ii) the sum

of the total number of persons aged five to seventeen within the school

district, based on such census bureau estimates, for the year prior to

the year in which the base year began, plus such total number for the

year two years prior to the year in which the base year began, plus such

total number for the year three years prior to the year in which the

base year began, rounded to four decimals.

(iv) (1) "Economically disadvantaged count" shall be equal to the

unduplicated count of all children registered to receive educational

services in grades kindergarten through twelve, including children in

ungraded programs who participate in, or whose family participates in,

economic assistance programs, such as the free or reduced-price lunch

programs, Social Security Insurance, Supplemental Nutrition Assistance

Program, Foster Care, Refugee Assistance (cash or medical assistance),

Earned Income Tax Credit (EITC), Home Energy Assistance Program (HEAP),

Safety Net Assistance (SNA), Bureau of Indian Affairs (BIA), or

Temporary Assistance for Needy Families (TANF).

(2) "Economically disadvantaged rate" shall mean the quotient arrived

at when dividing the economically disadvantaged count by public

enrollment as computed pursuant to subparagraph one of paragraph n of

this subdivision.

(3) "Three-year average economically disadvantaged rate" shall equal

the quotient of: (i) the sum of the economically disadvantaged count for

the school year prior to the base year, plus such number for the school

year two years prior to the base year, plus such number for the school

year three years prior to the base year; divided by (ii) the sum of

enrollment as computed pursuant to subparagraph one of paragraph n of

this subdivision for the school year prior to the base year, plus such

number for the school year two years prior to the base year, plus such

number for the school year three years prior to the base year, rounded

to four decimals.

r. "Sparsity count", for districts operating a kindergarten through

grade twelve school program, shall mean the product of (i) the base year

public school enrollment of the district and (ii) the sparsity factor,

which shall mean the quotient, computed to three decimals without

rounding, of the positive remainder of twenty-five minus the enrollment

per square mile divided by fifty and nine tenths, but not less than

zero. Enrollment per square mile shall be the quotient, computed to two

decimals without rounding, of the public school enrollment of the school

district on the date enrollment was counted in accordance with this

subdivision for the base year divided by the square miles of the

district, as determined by the commissioner.

s. "Extraordinary needs count" shall mean the sum of (i) the product

of the English language learner count multiplied by the ELL weight, (ii)

the poverty count, (iii) the homeless and foster count, plus (iv) the

sparsity count, provided that the 'ELL weight' shall be five tenths

(0.50) for the two thousand twenty-four--two thousand twenty-five school

year and prior, fifty-three hundredths (0.53) in the two thousand

twenty-five--two thousand twenty-six school year, and six tenths (0.6)

in the two thousand twenty-six--two thousand twenty-seven school year

and thereafter.

t. The "approved operating expense" for the apportionments to any

school district hereunder shall mean the amount computed as follows: The

apportionment to any school district for operating expense shall be

based upon the total expenditures from its general fund and from its

capital fund and from its risk retention fund for purposes of employee

benefit claims related to salaries paid from the general fund, and for

any city school districts with a population of more than one hundred

twenty-five thousand inhabitants its expenditures from the special aid

fund of grant moneys for improving pupil performance and categorical aid

for special reading programs as provided in the aid to localities budget

during the applicable year as approved by the commissioner, and in

accordance with the classification of expenditures in use by the

commissioner for the reporting by school districts of receipts,

expenditures and other financial data. For the purpose of this paragraph

operating expense shall be defined as total cash expenditures during the

applicable year, but shall exclude: (1) any balances and transfers; (2)

any payments for transportation of pupils to and from school during the

regular school year inclusive of capital outlays and debt service

therefor; (2-a) a portion of any payments for transportation of pupils

to and from district operated summer school programs pursuant to

subdivision six of section thirty-six hundred twenty-two-a of this

article, inclusive of capital outlays and debt service therefor, equal

to the product of such expenditures multiplied by the quotient of the

total apportionment after the proration, if any, required by such

subdivision six of such section divided by the total apportionment prior

to such proration; (3) any payments for capital outlay and debt service

for school building purposes, provided, however, that in the case of a

school district which has entered into a contract with state university

pursuant to paragraph o of subdivision two of section three hundred

fifty-five of this chapter, under which the school district makes

payments to state university on account of capital outlay relating to

certain children residing in such school district, such payments shall

not be so excluded; (4) any payments for cafeteria or school lunch

programs; (5) any proceeds of short term borrowings in the general fund

and any payments from the proceeds of the sale of obligations in the

capital fund; (6) any cash receipts which reduce the cost of an item

when applied against the expenditure therefor, except gifts, donations

and earned interest and any refunds made; (7) any payments made to

boards of cooperative educational services for purposes or programs for

which an apportionment is paid pursuant to other sections of this

chapter, except that payments attributable to eligible pupils with

disabilities and ineligible pupils residing in noncomponent districts

shall be included in operating expense; (8) any tuition payments made to

other school districts inclusive of payments made to a central high

school district by one of its component school districts; (9) any

apportionment or payment received from the state for experimental or

special programs paid under provisions other than those found in this

section and other than any apportionments or payments received from the

state by the city school district of the city of Yonkers for the purpose

of funding an educational improvement program pursuant to a court order

and other than any other state grants in aid identified by the

commissioner for general use as specified by the board of education

pursuant to subdivision two of section seventeen hundred eighteen of

this chapter; (10) any funds received from the federal government except

the federal share of medicaid subject to the provisions of section

thirty-six hundred nine-a of this part and except Impact Aid funds

received pursuant to sections two and six of Public Law eighty-one-eight

hundred seventy-four (PL 81-874) or any law superseding such law in any

such district which received aid pursuant to both such sections;

provided further, however, that there shall be excluded from such

federal funds or other apportionments any payments from such funds

already deducted pursuant to this paragraph; (11) any payments made for

which an apportionment is disallowed pursuant to regulations of the

commissioner; (12) any expenditures made for accounting, tabulation, or

computer equipment, in excess of ten thousand dollars unless such

expenditures shall have been specifically approved by the commissioner;

(13) any rentals received pursuant to the provisions of section four

hundred three-a of this chapter; (14) any rentals or other annual

payments received pursuant to the provisions of section four hundred

three-b of this chapter; (15) any expenditures made for persons

twenty-one years of age or over attending employment preparation

education programs pursuant to subdivision eleven of this section; (16)

any tuition payments made pursuant to a contract under the provisions of

paragraphs e, f, g, h, i and l of subdivision two of section forty-four

hundred one of this chapter or any tuition payments on behalf of pupils

attending a state school under paragraph d of such subdivision; (17) in

any year in which expenditures are made to the New York state teachers'

retirement system or the New York state and local employees' retirement

system for both the prior school year and the current school year, any

expenditures made to such retirement systems and recorded in the school

year prior to the school year in which such obligations are paid; and

(18) any payments to the commissioner of taxation and finance pursuant

to article twenty-three of the tax law.

u. "Instructional expense" shall mean the sum of all year prior to the

base year expenditures related to the instructional program of the

district, as defined in regulations of the commissioner, including the

cost of fringe benefits paid by such district for the instructional

staff of the district.

w. "Extraordinary needs percent" shall mean the quotient of the

extraordinary needs count for the base year, calculated pursuant to

paragraph s of this subdivision, divided by the public school district

enrollment for the base year, calculated pursuant to subparagraph two of

paragraph n of this subdivision.

x. "Enrollment index" shall be computed by dividing the public school

enrollment for the current year by public school enrollment for the base

year, both as defined in paragraph n of this subdivision, with the

result carried to three places without rounding.

y. "School tax relief aid" shall mean state aid payable to a school

district representing tax savings duly provided by the school district

pursuant to section thirteen hundred six-a of the real property tax law

that is claimed by the school district and certified by the commissioner

of taxation and finance pursuant to subdivision three of section

thirteen hundred six-a of the real property tax law.

aa. "Total personal income of the state" shall mean the total personal

income of the state of New York as published by the United States

department of commerce or any successor agency from which information is

available, aggregated on a state fiscal year basis. For the two thousand

twelve--two thousand thirteen school year, such personal income shall be

based on the data available most proximate and prior to February first,

two thousand eleven, and for the two thousand thirteen--two thousand

fourteen school year and each school year thereafter, such personal

income shall be based on the data available most proximate and prior to

October thirty-first of the base year. Subsequent revisions of the

published estimated dollar amount for any state fiscal year estimate

employed pursuant to the terms of this section shall not affect the

validity of the determinations made for any state fiscal year.

bb. "Personal income growth index" shall mean (1) for the two thousand

twelve--two thousand thirteen school year, the average of the quotients

for each year in the period commencing with the two thousand five--two

thousand six state fiscal year and finishing with the two thousand

nine--two thousand ten state fiscal year of the total personal income of

the state for each such year divided by the total personal income of the

state for the immediately preceding state fiscal year, but not less than

one, (2) for the two thousand thirteen--two thousand fourteen through

two thousand nineteen--two thousand twenty school years, the quotient of

the total personal income of the state for the state fiscal year one

year prior to the state fiscal year in which the base year commenced

divided by the total personal income of the state for the immediately

preceding state fiscal year, but not less than one and (3) for the two

thousand twenty--two thousand twenty-one school year and each school

year thereafter, the average of the quotients for each year in the

period commencing with the state fiscal year nine years prior to the

state fiscal year in which the base year began and finishing with the

state fiscal year prior to the state fiscal year in which the base year

began of the total personal income of the state for each such year

divided by the total personal income of the state for the immediately

preceding state fiscal year, but not less than one.

dd. "Allowable growth amount" shall mean the product of the positive

difference of the personal income growth index minus one, multiplied by

the statewide total of the sum of (1) the apportionments, including the

gap elimination adjustment, due and owing during the base year,

commencing with the base year computed for the two thousand twelve--two

thousand thirteen school year, to school districts and boards of

cooperative educational services from the general support for public

schools as computed based on an electronic data file used to produce the

school aid computer listing produced by the commissioner in support of

the enacted budget for the base year plus (2) the competitive awards

amount for the base year.

ee. "Competitive awards amount" shall mean, for the two thousand

twelve--two thousand thirteen state fiscal year and thereafter, fifty

million dollars.

ff. "Preliminary growth amount" shall mean the difference between the

statewide total, excluding the apportionments computed pursuant to

subdivisions four and seventeen of section thirty-six hundred two of the

education law, of the apportionments due and owing during the current

school year, commencing with the two thousand twelve--two thousand

thirteen school year, to school districts and boards of cooperative

educational services from the general support for public schools as

computed based on an electronic data file used to produce the school aid

computer listing produced by the commissioner in support of the enacted

budget for the current year, less the statewide total of such

apportionments, excluding the apportionments computed pursuant to

subdivisions four and seventeen of section thirty-six hundred two of the

education law, due and owing during the base school year to school

districts and boards of cooperative educational services from the

general support for public schools as computed based on an electronic

data file used to produce the school aid computer listing produced by

the commissioner in support of the enacted budget for the current year.

gg. "Allocable growth amount" shall mean the positive difference, if

any, of the allowable growth amount less the sum of the competitive

awards amount plus the preliminary growth amount.

hh. "Consumer price index" shall mean the quotient of: (i) the average

of the national consumer price indexes determined by the United States

department of labor for the twelve-month period preceding January first

of the current year minus the average of the national consumer price

indexes determined by the United States department of labor for the

twelve-month period preceding January first of the prior year, divided

by (ii) the average of the national consumer price indexes determined by

the United States department of labor for the twelve-month period

preceding January first of the prior year, with the result expressed as

a decimal to three places.

ii. (1) "Direct certification count" shall be equal to the number of

children eligible for free meals or free milk based on information

obtained directly from the office of temporary and disability assistance

administering the supplemental nutrition assistance program and the

department of health administering Medicaid and providing data as per

the United States department of agriculture Medicaid demonstration

project.

(2) "Direct certification enrollment" shall mean enrollment collected

for purposes of the direct certification matching process.

(3) "Direct certification percent" shall mean the quotient arrived at

when dividing the direct certification count by the direct certification

enrollment.

(4) "Three-year direct certification percentage" shall mean the

quotient of: (A) the sum of the direct certification count for the base

year, plus such direct certification count computed for the year prior

to the base year, plus such direct certification count computed for the

year two years prior to the base year, divided by (B) the direct

certification enrollment for the base year, plus such direct

certification enrollment computed for the year prior to the base year,

plus such direct certification enrollment computed for the year two

years prior to the base year.

jj. "Small city school districts" shall mean any school districts that

were designated as small city school districts or central school

districts whose boundaries include a portion of a small city for the

school aid computer listing produced by the commissioner in support of

the enacted budget for the two thousand fourteen--two thousand fifteen

school year and entitled "SA141-5".

kk. "Homeless and foster count" shall mean the sum of (i) the product

of twelve hundredths (0.12) multiplied by the three-year average of

students experiencing homelessness plus (ii) the product of twelve

hundredths (0.12) multiplied by the three-year average of foster

students, where:

(1) "students experiencing homelessness" shall be equal to the

unduplicated count of students who lack a fixed, regular, and adequate

nighttime residence, including a student who is sharing the housing of

other persons due to a loss of housing, economic hardship, or similar

reason; living in motels, hotels, trailer parks or camping grounds due

to the lack of alternative adequate accommodations; abandoned in

hospitals; or a migratory child, as defined by the commissioner, who

qualifies as homeless under any of the above provisions; or has a

primary nighttime location that is a supervised publicly or privately

operated shelter designed to provide temporary living accommodations

including, but not limited to, shelters operated or approved by the

state or local department of social services, and residential programs

for runaway and homeless youth established pursuant to article

nineteen-H of the executive law or a public or private place not

designed for, or ordinarily used as, a regular sleeping accommodation

for human beings, including a car, park, public space, abandoned

building, substandard housing, bus, train station, or similar setting.

Homeless students does not include children in foster care placements or

who are receiving educational services pursuant to subdivision four,

five, six, six-a, or seven of section thirty-two hundred two of this

chapter or pursuant to article eighty-one, eighty-five, eighty-seven or

eighty-eight of this chapter;

(2) the "three-year average of students experiencing homelessness"

shall be equal to the quotient of (i) the unduplicated count of students

experiencing homelessness for the school year prior to the base year,

plus such number for the school year two years prior to the base year,

plus such number for the school year three years prior to the base year,

divided by (ii) three, rounded to the nearest whole number;

(3) "foster students" shall be equal to the unduplicated count of

students in twenty-four-hour substitute care for children placed away

from their parents and for whom the agency under title IV-E of the

Social Security Act has placement and care responsibility. This shall

include, but is not limited to, placements in foster family homes,

foster homes of relatives, group homes, emergency shelters, residential

facilities, child care institutions, and pre-adoptive homes. A child is

in foster care in accordance with this definition regardless of whether

or not the foster care facility is licensed and payments are made by the

state, tribal, or local agency for the care of the child, whether

adoption subsidy payments are being made prior to the finalization of an

adoption, or whether there is federal matching of any payments that are

made; and

(4) the "three-year average of foster students" shall be equal to the

quotient of (i) the unduplicated count of foster students for the school

year prior to the base year, plus such number for the school year two

years prior to the base year, plus such number for the school year three

years prior to the base year, divided by (ii) three, rounded to the

nearest whole number.

2. Computation of pupil counts and related factors. a. Computation of

resident weighted average daily attendance. For purposes of this section

weighted average daily attendance of a school district for any school

year shall be computed as follows:

(1) Weighted average daily attendance shall be determined by using the

average daily attendance of public school pupils in a full-day

kindergarten and grades one through six as the basic unit, with the

attendance of such pupils in one-half day kindergartens measured at

one-half of such basic unit and the attendance of such pupils in grades

seven through twelve measured at one and one-quarter of such basic unit.

The sum of all such units of attendance shall be the weighted average

daily attendance.

(2) In computing such attendance, the school district shall (i)

determine the number of religious holidays which fall on a school day

within a school year according to regulations established by the

commissioner, such religious holidays to be duly recognized as such for

purposes of this section by duly adopted resolution of the board of

education; (ii) deduct the aggregate attendance on such religious

holidays from the total aggregate attendance, by grade level; (iii)

deduct such religious holidays from the total number of days of session,

by grade level; (iv) compute the weighted average daily attendance for

the school year.

(3) In any instance where a pupil is a resident of another state or an

Indian pupil is a resident of any portion of a reservation located

wholly or partly within the borders of the state pursuant to subdivision

four of section forty-one hundred one of this chapter or a pupil is

living on federally owned land or property, such pupil's attendance

shall be counted as part of the weighted average daily attendance of the

school district in which such pupil is enrolled.

(4) Resident weighted average daily attendance for purposes of

determining the aid ratio of a school district for any school year shall

be the weighted average daily attendance for the school year immediately

preceding the base year, less the weighted average daily attendance of

nonresident pupils attending public schools in the district for such

school year, plus the weighted average daily attendance of pupils

resident in the district but attending public schools in another

district or state plus the weighted average daily attendance of pupils

resident in the district but attending full-time a school operated by a

board of cooperative educational services or a county vocational

education and extension board for such school year. The attendance of

nonresident pupils attending public school in the district and resident

pupils attending such schools outside of the district shall be

determined by applying to the number of such pupils registered during

the school year in each case the ratio of aggregate days attendance to

the possible aggregate days attendance of all pupils in attendance in

the district. Indian pupils of a reservation attending public school, or

pupils living on the United States military reservation at West Point

attending public school, shall be deemed to be resident pupils of the

district providing such school, for purposes of this paragraph. Where a

school district has entered into a contract with the state university

pursuant to subdivision two of section three hundred fifty-five of this

chapter under which the school district makes payments in the nature of

tuition for the education of certain children residing in the district,

such children for whom such tuition payments are made shall be deemed to

be resident pupils of such district for the purposes of this paragraph.

(5) In determining the resident weighted average daily attendance of a

component school district of a central high school district for

computing the aid ratio the weighted average daily attendance of high

school pupils residing in such component district and attending the

central high school shall be included. The resident weighted average

daily attendance of a central high school district itself shall be the

sum of the resident weighted average daily attendance of each component

school district computed as provided in the first sentence of this

paragraph.

(6) Notwithstanding the provisions of subparagraphs four and five of

this paragraph, when a school district shall experience an increase in

resident weighted average daily attendance during the current year

because of the closing in whole, or in part, of a non-public school or a

campus school, or a school previously operated by the United States

government on the United States military reservation at West Point, the

commissioner, in computing any aid ratio of such district, shall permit

the use of such additional resident weighted average daily attendance

for aid ratio purposes during the current year and the next succeeding

year, provided that such additional resident weighted average daily

attendance attributable to such closing, or part thereof, shall be in

excess of one hundred students; provided, however, that such district

which qualifies for an increase in total wealth pupil units pursuant to

paragraph f of this subdivision, shall use the increase in resident

weighted average daily attendance, even if such increase in resident

weighted average daily attendance is less than one hundred.

b. Computation of adjusted average daily attendance. For purposes of

this section adjusted average daily attendance of a school district for

any school year shall be computed as follows:

(1) Adjusted average daily attendance shall be determined by using the

average daily attendance of public school pupils in a full-day

kindergarten and grades one through twelve as the basic unit, with the

attendance of such pupils in one-half day kindergartens measured at

one-half of such basic unit. The sum of all such units of attendance

shall be the adjusted average daily attendance.

(2) In computing such attendance, the school district shall (i)

determine the number of religious holidays which fall on a school day

within a school year according to regulations established by the

commissioner, such religious holidays to be duly recognized as such for

purposes of this section by duly adopted resolution of the board of

education; (ii) deduct the aggregate attendance on such religious

holidays from the total aggregate attendance, by grade level; (iii)

deduct such religious holidays from the total number of days of session,

by grade level; (iv) compute the adjusted average daily attendance for

the school year.

(3) In any instance where a pupil is a resident of another state or an

Indian pupil is a resident of any portion of a reservation located

wholly or partly within the borders of the state pursuant to subdivision

four of section forty-one hundred one of this chapter or a pupil is

living on federally owned land or property, such pupil's attendance

shall be counted as part of the adjusted average daily attendance of the

school district in which such pupil is enrolled.

c. Computation of additional aidable pupil units. The additional

aidable pupil units used to compute total aidable pupil units pursuant

to paragraph e of this subdivision shall be the sum of the attendance of

summer session pupils multiplied by twelve per centum and the weighted

pupils with special educational needs. The additional aidable pupil

units used to compute total wealth pupil units pursuant to paragraph f

of this subdivision shall be the sum of the year prior to the base year

resident weighted pupils with special educational needs and resident

weighted pupils with handicapping conditions. Nothing contained in this

paragraph shall be construed to result in the inclusion of the

attendance of summer session pupils in the computation of weighted or

adjusted average daily attendance pursuant to this subdivision.

d. Secondary school weighting. There shall be added to the total

aidable pupil units computed in paragraph e of this subdivision and the

total wealth pupil units computed in paragraph f of this subdivision, a

number equal to the product of: (1) twenty-five per centum, (2) the

adjusted average daily attendance in grades seven through twelve for the

year prior to the base year, excluding attendance of pupils who receive

a weighting for disabilities, and (3) for total aidable pupil units, the

enrollment index computed pursuant to this section for the base year,

provided, however, that only resident secondary pupils shall be used for

the computation of total wealth pupil units.

e. Computation of total aidable pupil units. (1) A district's total

aidable pupil units shall be the sum of the district's adjusted average

daily attendance computed pursuant to this section for the year prior to

the base year multiplied by the enrollment index computed pursuant to

this section for the base year plus the additional aidable pupil units

computed for the year prior to the base year under paragraph c of this

subdivision.

(2) In such computation school districts may, with the commissioner's

approval, exclude attendance for those days on which school attendance

was adversely affected because of an epidemic or because of a religious

holiday as provided in subparagraph two of paragraph b of this

subdivision. For the purposes of computing selected total aidable pupil

units, a district may use either total aidable pupil units for the

current aid year or the average of total aidable pupil units for the

current aid year and the prior aid year, using current aid year

definitions of total aidable pupil units for both years, except that for

aids payable during the nineteen hundred ninety-seven--nineteen hundred

ninety-eight school year the total aidable pupil units for the prior aid

year used in such average shall be calculated using the definition of

total aidable pupil units in effect for aid payable in the base year.

f. Computation of total wealth pupil units. (1) Total wealth pupil

units will be computed using the adjusted average daily attendance for

the year prior to the base year as computed in this section, plus the

attendance of resident pupils attending public school elsewhere, less

the attendance of nonresident pupils plus the attendance of resident

pupils attending full-time in board of cooperative educational services

(not otherwise specifically included), plus the additional aidable pupil

units as computed pursuant to paragraphs c and d of this subdivision,

excluding summer school pupils, plus the year prior to the base year

resident weighted pupils with disabilities. The attendance of

nonresident pupils attending public school in the district and resident

pupils attending such schools outside of the district shall be

determined by applying to the number of such pupils registered during

the school year in each case the ratio of aggregate days attendance to

the possible aggregate days attendance of all pupils in attendance in

the district. Native American pupils of a reservation attending public

school, or pupils living on the United States military reservation at

West Point attending public school, shall be deemed to be resident

pupils of the district providing such school, for purposes of this

paragraph. Where a school district has entered into a contract with

state university pursuant to subdivision two of section three hundred

fifty-five of this chapter under which the school district makes payment

in the nature of tuition for the education of certain children residing

in the district, such children for whom such tuition payments are made

shall be deemed to be resident pupils of such district for the purposes

of this paragraph.

(2) In determining the total wealth pupil units of a component school

district of a central high school district for computing aid ratios the

total wealth pupil units of high school pupils residing in such

component district and attending the central high school shall be

included. The total wealth pupil units of a central high school district

itself shall be the sum of the total wealth pupil units of each

component school district.

(3) Notwithstanding the foregoing provisions of this paragraph, when a

school district shall experience an increase in total wealth pupil units

during the current year because of the closing in whole, or in part, of

a nonpublic school or a campus school, or a school previously operated

by the United States government on the United States military

reservation at West Point, the commissioner, in computing any aid ratio

of such district, shall permit the use of such additional total wealth

pupil units during the current year and the next succeeding year,

provided that such additional total wealth pupil units attributable to

such closing, or part thereof, shall be in excess of one hundred

students; provided, however, that such district which qualifies for an

increase in resident weighted average daily attendance pursuant to

subparagraph six of paragraph a of this subdivision, shall use the

increase in total wealth pupil units, even if such increase in total

wealth pupil units is less than one hundred.

g. Computation of total aidable foundation pupil units. Total aidable

foundation pupil units shall be the sum of (1) the district's average

daily membership computed pursuant to this section for the year prior to

the base year multiplied by the enrollment index computed pursuant to

this section for the base year plus (2) the product of the average daily

membership of summer session pupils and twelve percent plus (3) the year

prior to the base year weighted foundation pupils with disabilities. For

the purposes of computing total foundation aid a district may use either

total aidable foundation pupil units for the current aid year or the

average of total foundation aidable pupil units for the current aid year

and the prior aid year, using current aid year definitions of total

aidable foundation pupil units for both years.

h. Computation of total wealth foundation pupil units. (1) Total

wealth foundation pupil units shall mean the sum of (i) average daily

membership for the year prior to the base year as computed in this

section, plus (ii) the full-time equivalent enrollment of resident

pupils attending public school elsewhere, less the full-time equivalent

enrollment of nonresident pupils, plus (iii) the full-time equivalent

enrollment of resident pupils attending full-time in board of

cooperative educational services (not otherwise specifically included).

Native American pupils of a reservation attending public school, or

pupils living on the United States military reservation at West Point

attending public school, shall be deemed to be resident pupils of the

district providing such school, for purposes of this paragraph. Where a

school district has entered into a contract with state university

pursuant to subdivision two of section three hundred fifty-five of this

chapter under which the school district makes payment in the nature of

tuition for the education of certain children residing in the district,

such children for whom such tuition payments are made shall be deemed to

be resident pupils of such district for the purposes of this paragraph.

(2) In determining the total wealth foundation pupil units of a

component school district of a central high school district for

computing aid ratios the total wealth foundation pupil units of high

school pupils residing in such component district and attending the

central high school shall be included. The total wealth foundation pupil

units of a central high school district itself shall be the sum of the

total wealth foundation pupil units of each component school district.

(3) Notwithstanding the foregoing provisions of this paragraph, when a

school district shall experience an increase in total wealth foundation

pupil units during the current year because of the closing in whole, or

in part, of a nonpublic school or a campus school, or a school

previously operated by the United States government on the United States

military reservation at West Point, the commissioner, in computing any

aid ratio of such district, shall permit the use of such additional

total wealth foundation pupil units during the current year and the next

succeeding year, provided that such additional total wealth foundation

pupil units attributable to such closing, or part thereof, shall be in

excess of one hundred students.

i. Parent-teacher conferences or workshops. Notwithstanding any other

provision of this section to the contrary, when a school district

operates for a half day session because of a parent-teacher conference

or workshops for teachers, it shall be apportioned with the same amount

of state aid for pupils attending kindergarten as if both morning and

afternoon kindergarten groups were in attendance although only one

kindergarten class attends school. The school district shall provide

that morning and afternoon kindergarten groups shall alternate in

attendance if more than one half day session is scheduled during the

school year.

3. Computation of aid ratios.

a. (1) "Pupil wealth ratio" shall mean the number computed to three

decimals without rounding obtained when actual valuation of a school

district divided by the total wealth pupil units is divided by the

statewide average actual valuation per total wealth pupil unit as

computed by the commissioner in accordance with the provisions of this

section. Such statewide average actual valuation per total wealth pupil

unit shall be established each year by the commissioner using the latest

single year actual valuation computed under paragraph c of subdivision

one of this section. Such statewide average shall be transmitted to the

school districts. Such statewide average shall be rounded to the nearest

hundredth and shall include the actual valuation and total wealth pupil

units of all school districts eligible for aid pursuant to this section

except central high school districts. For the purposes of calculating

such statewide average the data for the city school district of the city

of New York shall be citywide data.

(2) "Pupil wealth ratio for total foundation aid" shall mean the

number computed to three decimals without rounding obtained when the

selected actual valuation of a school district divided by the total

wealth pupil units is divided by the statewide average selected actual

valuation per total wealth pupil unit as computed by the commissioner in

accordance with the provisions of this section. Such statewide average

selected actual valuation per total wealth pupil unit shall be

established each year by the commissioner using the selected actual

valuation computed under paragraph c of subdivision one of this section.

Such statewide average shall be transmitted to the school districts.

Such statewide average shall be rounded to the nearest hundredth and

shall include the selected actual valuation and total wealth pupil units

of all school districts eligible for aid pursuant to this section except

central high school districts. For the purposes of calculating such

statewide average the data for the city school district of the city of

New York shall be citywide data.

b. (1) "Alternate pupil wealth ratio" shall mean the number computed

to three decimals without rounding obtained when the adjusted gross

income of a school district for the calendar year two years prior to the

calendar year in which the base year began divided by the total wealth

pupil units of such district is divided by the statewide adjusted gross

income per total wealth pupil unit. Such statewide average gross income

per pupil shall be established each year by the commissioner and shall

be transmitted to school districts. Such statewide average shall be

rounded to the nearest hundredth and shall include the adjusted gross

income and total wealth pupil units of all school districts eligible for

aid pursuant to this section except central high school districts. For

the purposes of calculating such statewide average the data for the city

school district of the city of New York shall be citywide data.

(2) "Alternate pupil wealth ratio for total foundation aid" shall mean

the number computed to three decimals without rounding obtained when the

selected adjusted gross income of a school district for the calendar

year two years prior to the calendar year in which the base year began

divided by the total wealth pupil units of such district is divided by

the statewide selected adjusted gross income per total wealth pupil

unit. Such statewide average selected adjusted gross income per pupil

shall be established each year by the commissioner and shall be

transmitted to school districts. Such statewide average shall be rounded

to the nearest hundredth and shall include the selected adjusted gross

income and total wealth pupil units of all school districts eligible for

aid pursuant to this section except central high school districts. For

the purposes of calculating such statewide average the data for the city

school district of the city of New York shall be citywide data.

c. (1) "Combined wealth ratio" shall mean the number computed to three

decimals without rounding obtained when fifty per centum of the pupil

wealth ratio is added to fifty per centum of the alternate pupil wealth

ratio.

(2) "Combined wealth ratio for total foundation aid" shall mean the

number computed to three decimals without rounding obtained when fifty

per centum of the pupil wealth ratio for total foundation aid is added

to fifty per centum of the alternate pupil wealth ratio for total

foundation aid.

d. "Income wealth index" shall mean the number computed to three

decimals without rounding obtained when the adjusted gross income of a

school district for the calendar year two years prior to the calendar

year in which the base year began divided by the total wealth foundation

pupil units of such district is divided by the statewide adjusted gross

income per total wealth foundation pupil units. Such statewide average

gross income per pupil shall be established each year by the

commissioner and shall be transmitted to school districts. For the

purposes of this paragraph, the income data shall be computed in

accordance with paragraph h of subdivision one of this section. Such

statewide average shall be rounded to the nearest hundredth and shall

include the adjusted gross income and total wealth foundation pupil

units of all school districts eligible for aid pursuant to this section

except central high school districts. For the purposes of calculating

such statewide average the data for the city school district of the city

of New York shall be citywide data. The adjusted gross income of a

central high school district shall equal the sum of the adjusted gross

income of each of its component school districts.

e. Building aid ratios. The aid ratio to be used in determining

building aid apportionments to any school district pursuant to this

section shall be computed in the following manner:

(1) The actual valuation of such district shall be divided by its

resident weighted average daily attendance as computed pursuant to this

section to determine its actual valuation per resident pupil.

(2) The commissioner shall determine the state average actual

valuation per pupil in resident weighted average daily attendance for

the preceding school year using the latest single year actual valuation

computed under paragraph c of subdivision one of this section. The

commissioner shall transmit such state average to the school districts.

Such statewide average shall be rounded to the nearest hundredth and

shall include the actual valuation and resident weighted average daily

attendance of all school districts eligible for aid pursuant to this

section except central high school districts. For the purposes of

calculating such statewide average the data for the city school district

of the city of New York shall be citywide data.

(3) The resident weighted average daily attendance wealth ratio shall

mean the actual valuation per resident pupil of the school district

divided by such state average actual valuation per pupil, carried to

three decimal places without rounding.

(4) The building aid ratio shall be computed by subtracting from one

the product obtained by multiplying the resident weighted average daily

attendance wealth ratio by fifty-one percent. Such aid ratio shall be

expressed as a decimal carried to three places without rounding, but

shall not be less than zero.

(5) The additional building aid ratio for low income wealth school

districts shall be the product obtained by multiplying the state sharing

ratio by one and two hundred sixty-three thousandths (1.263).

f. The board of cooperative educational services aid ratio shall equal

the greater of: (1) an amount equal to one minus the quotient expressed

as a decimal to three places without rounding of eight mills divided by

the tax rate of the local district computed upon the actual valuation of

taxable property, as determined pursuant to subdivision one of this

section, expressed in mills to the nearest tenth as determined by the

commissioner, provided, however, that where services are provided to a

school district which is included within a central high school district

or to a central high school district, such amount shall equal one minus

the quotient expressed as a decimal to three places without rounding of

three mills divided by the tax rates, expressed in mills to the nearest

tenth, of such districts, as determined by the commissioner or (2) an

amount computed by subtracting from one the product obtained by

multiplying the resident weighted average daily attendance wealth ratio

by fifty-one percent. Such aid ratio shall be expressed as a decimal

carried to three places without rounding but shall not be less than

thirty-six percent and shall not be greater than ninety percent.

g. Computation of the state sharing ratio. The state sharing ratio

shall be the higher of:

(1) a value computed by subtracting from one and thirty-seven

hundredths the product obtained by multiplying the combined wealth ratio

by one and twenty-three hundredths; or

(2) a value computed by subtracting from one the product obtained by

multiplying the combined wealth ratio by sixty-four hundredths, provided

however, that for the purpose of computing the state sharing ratio for

total foundation aid, the tier two value shall be computed by

subtracting from one the product obtained when multiplying the combined

wealth ratio by six hundred sixteen thousandths (0.616) and such values

shall be computed using the combined wealth ratio for total foundation

aid in place of the combined wealth ratio; or

(3) a value computed by subtracting from eighty hundredths the product

obtained by multiplying the combined wealth ratio by thirty-nine

hundredths; or

(4) a value computed by subtracting from fifty-one hundredths the

product obtained by multiplying the combined wealth ratio by twenty-two

hundredths, provided, however, that for the purpose of computing the

state sharing ratio for total foundation aid, the tier four value shall

be computed by subtracting from fifty-one hundredths the product

obtained by multiplying the combined wealth ratio by one hundred

seventy-three thousandths and such values shall be computed using the

combined wealth ratio for total foundation aid in place of the combined

wealth ratio, and, for high need school districts, as determined

pursuant to clause (c) of subparagraph two of paragraph c of subdivision

six of this section for the school aid computer listing produced by the

commissioner in support of the enacted budget for the two thousand

seven--two thousand eight school year and entitled "SA0708", such values

shall be multiplied by one hundred five percent.

Such result shall be expressed as a decimal carried to three places

without rounding, but shall not be greater than ninety hundredths nor

less than zero, provided, however, that for the purpose of computing the

state sharing ratio for total foundation aid in the two thousand

twenty-four--two thousand twenty-five school year, such result shall not

be greater than ninety-one hundredths (0.91), and that for the purpose

of computing the state sharing ratio for total foundation aid in the two

thousand twenty-five--two thousand twenty-six school year and

thereafter, such result shall not be greater than ninety-three

hundredths (0.93).

4. Total foundation aid.

In addition to any other apportionment pursuant to this chapter, a

school district, other than a special act school district as defined in

subdivision eight of section four thousand one of this chapter, shall be

eligible for total foundation aid equal to the product of total aidable

foundation pupil units multiplied by the district's selected foundation

aid, which shall be the greater of five hundred dollars ($500) or

foundation formula aid. Total aidable foundation pupil units shall be

calculated pursuant to paragraph g of subdivision two of this section.

For the purposes of calculating aid pursuant to this subdivision, aid

for the city school district of the city of New York shall be calculated

on a citywide basis.

a. Foundation formula aid. Foundation formula aid shall equal the

remainder when the expected minimum local contribution is subtracted

from the product of the foundation amount, the regional cost index, and

the pupil need index, or: (foundation amount x regional cost index x

pupil need index)- expected minimum local contribution.

(1) The foundation amount shall reflect the average per pupil cost of

general education instruction in successful school districts, as

determined by a statistical analysis of the costs of special education

and general education in successful school districts, provided that the

foundation amount shall be adjusted annually to reflect the percentage

increase in the consumer price index as defined by paragraph hh of

subdivision one of this section, provided that for the two thousand

twenty-four--two thousand twenty-five school year, the percentage

increase in the consumer price index shall be deemed to be two and

eight-tenths percent (0.028).

(2) The regional cost index shall reflect an analysis of labor market

costs based on median salaries in professional occupations that require

similar credentials to those of positions in the education field, but

not including those occupations in the education field, provided that

the regional cost indices for the two thousand seven--two thousand eight

school year and thereafter shall be as follows:

Labor Force Region Index

Capital District 1.124

Southern Tier 1.045

Western New York 1.091

Hudson Valley 1.314

Long Island/NYC 1.425

Finger Lakes 1.141

Central New York 1.103

Mohawk Valley 1.000

North Country 1.000

Provided that in the two thousand twenty-five--two thousand twenty-six

school year and thereafter, the regional cost index for Westchester

county shall be 1.351.

(3) The pupil need index shall equal the sum of one plus the

extraordinary needs percent, provided, however, that the pupil need

index shall not be less than one nor more than two. The extraordinary

needs percent shall be calculated pursuant to paragraph w of subdivision

one of this section.

(4) The expected minimum local contribution shall equal the lesser of

(i) the product of (A) the quotient arrived at when the selected actual

valuation is divided by total wealth foundation pupil units, multiplied

by (B) the product of the local tax factor, multiplied by the income

wealth index, or (ii) the product of (A) the product of the foundation

amount, the regional cost index, and the pupil need index, multiplied by

(B) the positive difference, if any, of one minus the state sharing

ratio for total foundation aid. The local tax factor shall be

established by May first of each year by determining the product,

computed to four decimal places without rounding, of ninety percent

multiplied by the quotient of the sum of the statewide average tax rate

as computed by the commissioner for the current year in accordance with

the provisions of paragraph e of subdivision one of section thirty-six

hundred nine-e of this part plus the statewide average tax rate computed

by the commissioner for the base year in accordance with such provisions

plus the statewide average tax rate computed by the commissioner for the

year prior to the base year in accordance with such provisions, divided

by three. The income wealth index shall be calculated pursuant to

paragraph d of subdivision three of this section, provided, however,

that for the purposes of computing the expected minimum local

contribution the income wealth index shall not be less than sixty-five

percent (0.65) and shall not be more than two hundred percent (2.0). The

selected actual valuation shall be calculated pursuant to paragraph c of

subdivision one of this section. Total wealth foundation pupil units

shall be calculated pursuant to paragraph h of subdivision two of this

section.

(5) For the purposes of this subdivision, "total foundation aid" shall

be equal to the product of the total aidable foundation pupil units

multiplied by the district's selected foundation aid.

b. Notwithstanding any other provision of law to the contrary, for the

two thousand seven--two thousand eight school year and thereafter, the

additional amount payable to each school district pursuant to this

subdivision in the current year as total foundation aid, after deducting

the total foundation aid base, shall be deemed a state grant in aid

identified by the commissioner for general use for purposes of section

seventeen hundred eighteen of this chapter.

c. Public excess cost aid setaside. Each school district shall set

aside from its total foundation aid computed for the current year

pursuant to this subdivision an amount equal to the product of: (i) the

difference between the amount the school district was eligible to

receive in the two thousand six--two thousand seven school year pursuant

to or in lieu of paragraph six of subdivision nineteen of this section

as such paragraph existed on June thirtieth, two thousand seven, minus

the amount such district was eligible to receive pursuant to or in lieu

of paragraph five of subdivision nineteen of this section as such

paragraph existed on June thirtieth, two thousand seven, in such school

year, and (ii) the sum of one and the percentage increase in the

consumer price index for the current year over such consumer price index

for the two thousand six--two thousand seven school year, as defined by

paragraph hh of subdivision one of this section, provided that the

percentage increase in the consumer price index for the two thousand

twenty-four--two thousand twenty-five school year over such consumer

price index for the two thousand six--two thousand seven school year

shall be deemed to be fifty-four and one-tenth percent (0.541).

Notwithstanding any other provision of law to the contrary, the public

excess cost aid setaside shall be paid pursuant to section thirty-six

hundred nine-b of this part.

d. For the two thousand fourteen--two thousand fifteen through two

thousand twenty-eight--two thousand twenty-nine school years a city

school district of a city having a population of one million or more may

use amounts apportioned pursuant to this subdivision for afterschool

programs.

e. Community schools aid set-aside. Each school district shall set

aside from its total foundation aid computed for the current year

pursuant to this subdivision an amount equal to the sum of (i) the

amount, if any, set forth for such district as "COMMUNITY SCHL AID

(BT1617)" in the data file produced by the commissioner in support of

the enacted budget for the two thousand sixteen--two thousand seventeen

school year and entitled "SA161-7", (ii) the amount, if any, set forth

for such district as "COMMUNITY SCHL INCR" in the data file produced by

the commissioner in support of the executive budget request for the two

thousand seventeen--two thousand eighteen school year and entitled

"BT171-8", (iii) the amount, if any, set forth for such district as

"COMMUNITY SCHOOLS INCREASE" in the data file produced by the

commissioner in support of the executive budget for the two thousand

eighteen--two thousand nineteen school year and entitled "BT181-9", and

(iv) the amount, if any, set forth for such district as "19-20 COMMUNITY

SCHOOLS INCR" in the data file produced by the commissioner in support

of the executive budget for the two thousand nineteen--two thousand

twenty school year and entitled "BT192-0". Each school district shall

use such "COMMUNITY SCHL AID (BT1617)" amount to support the

transformation of school buildings into community hubs to deliver

co-located or school-linked academic, health, mental health, nutrition,

counseling, legal and/or other services to students and their families,

including but not limited to providing a community school site

coordinator, or to support other costs incurred to maximize students'

academic achievement. Each school district shall use such "COMMUNITY

SCHL INCR" amount to support the transformation of school buildings into

community hubs to deliver co-located or school linked academic, health,

mental health services and personnel, after-school programming, dual

language programs, nutrition, counseling, legal and/or other services to

students and their families, including but not limited to providing a

community school site coordinator and programs for English language

learners, or to support other costs incurred to maximize students'

academic achievement, provided however that a school district whose

"COMMUNITY SCHL INCR" amount exceeds one million dollars ($1,000,000)

shall use an amount equal to the greater of one hundred fifty thousand

dollars ($150,000) or ten percent of such "COMMUNITY SCHL INCR" amount

to support such transformation at schools with extraordinary high levels

of student need as identified by the commissioner, subject to the

approval of the director of the budget. Each school district shall use

such "COMMUNITY SCHOOLS INCREASE" to support the transformation of

school buildings into community hubs to deliver co-located or school

linked academic, health, mental health services and personnel,

after-school programming, dual language programs, nutrition, counseling,

legal and/or other services to students and their families, including

but not limited to providing a community school site coordinator and

programs for English language learners, or to support other costs

incurred to maximize students' academic achievement. Each school

district shall use such "19-20 COMMUNITY SCHOOLS INCR" to support the

transformation of school buildings into community hubs to deliver

co-located or school linked academic, health, mental health services and

personnel, after-school programming, dual language programs, nutrition,

trauma informed support, counseling, legal and/or other services to

students and their families, including but not limited to providing a

community school site coordinator and programs for English language

learners, or to support other costs incurred to maximize students'

academic achievement.

f. Foundation aid payable in the two thousand twenty-five--two

thousand twenty-six school year. Notwithstanding any provision of law to

the contrary, foundation aid payable in the two thousand

twenty-five--two thousand twenty-six school year shall equal the greater

of total foundation aid or the product of one and two hundredths (1.02)

multiplied by the foundation aid base.

* g. Foundation aid payable in the two thousand twenty-six--two

thousand twenty-seven school year. Notwithstanding any provision of law

to the contrary, foundation aid payable in the two thousand

twenty-six--two thousand twenty-seven school year shall equal the

greater of total foundation aid or the product of one and two hundredths

(1.02) multiplied by the foundation aid base.

* NB Effective July 1, 2026

5. Public high cost excess cost aid. A school district having a pupil

with a disability of school age for whom the cost, as approved by the

commissioner, of appropriate special services or programs exceeds the

lesser of ten thousand dollars or four times the expense per pupil

without limits shall be entitled to an additional apportionment for each

such child computed by multiplying the district's excess cost aid ratio

by the amount by which such cost exceeds three times the district's

expense per pupil without limits.

a. For the purpose of this subdivision:

(1) Expense per pupil for the purposes of this subdivision shall be

not less than two thousand dollars and not more than the greater of

seven thousand one hundred ten dollars or the statewide average of such

expense per pupil. Such statewide average expense per pupil shall be

computed and rounded to the nearest fifty dollars by the commissioner

using the expense and pupils as estimated by school districts or as

determined by the commissioner for use in determining the expense per

pupil of the district pursuant to paragraph f of subdivision one of this

section for all districts eligible for aid pursuant to this section. For

the purposes of calculating such statewide expense per pupil, the data

for the city school district of the city of New York shall be city-wide

data.

(2) The excess cost aid ratio shall be computed by subtracting from

one the product obtained by multiplying fifty-one per centum by the

combined wealth ratio. This aid ratio shall be expressed as a decimal

carried to three places without rounding, but not less than twenty-five

percent.

b. Notwithstanding section thirty-six hundred nine-a of this part, the

apportionment provided for in this subdivision shall be paid pursuant to

section thirty-six hundred nine-b of this part.

5-a. Supplemental public excess cost aid. For the two thousand

seven--two thousand eight school year, a school district having a pupil

with a disability of school age shall be entitled to an additional

apportionment computed as follows:

a. Total excess cost amount per pupil shall equal the product of the

expense per pupil computed pursuant to subparagraph one of paragraph a

of subdivision five of this section and the excess cost aid ratio, which

shall be computed pursuant to subparagraph two of paragraph a of

subdivision five of this section.

b. Basic excess cost amount shall equal the product of the total

excess cost amount per pupil and the resident weighted supplemental

pupils with disabilities computed pursuant to subparagraph five of

paragraph i of subdivision one of this section.

c. Integrated settings excess cost amount shall equal the product of

the total excess cost amount per pupil and the integrated settings

weighted pupils with disabilities computed pursuant to subparagraph six

of paragraph i of subdivision one of this section.

d. Declassification support services amount. (1) Declassification

support services shall mean services for teachers and pupils in the

first year that a pupil moves from a special education program to a

full-time regular education program. Services to pupils shall be

provided on a regular basis and may include, but not be limited to

psychological, social work, speech and language services and noncareer

counseling services provided by qualified professional personnel as

defined in regulations of the commissioner. Services for teachers of

such pupils may include the assistance of teacher aides or consultation

with appropriate personnel. When a committee on special education

determines that a pupil no longer needs special education services and

is ready for a full-time regular education program, such committee shall

identify and recommend the appropriate declassification support services

for the first year in the regular education program.

(2) The declassification support services amount shall be equal to

fifty percent of the total excess cost amount per pupil multiplied by

the number of such pupils in the base year.

(3) Declassification support services shall not be eligible for an

apportionment pursuant to section nineteen hundred fifty of this

chapter.

(4) The commissioner shall adopt regulations to implement the

provisions of this paragraph.

e. Total supplemental public excess cost amount shall be equal to the

sum of the basic excess cost aid amount, the integrated settings excess

cost amount, the declassification support services amount and the public

high cost excess cost aid computed pursuant to subdivision five of this

section for the current year.

f. The supplemental public excess cost aid base shall equal for the

two thousand seven--two thousand eight school year, the amount the

school district was eligible to receive in the two thousand six--two

thousand seven school year pursuant to or in lieu of paragraph six of

former subdivision nineteen of this section.

g. Supplemental public excess cost aid shall equal the product of

ninety-one hundredths and the positive difference, if any, of:

(1) the difference of the total supplemental excess cost amount minus

the supplemental public excess cost aid base, minus (2) the positive

difference of the district's total foundation aid minus the product of

one hundred three percent and the total foundation aid base.

h. Notwithstanding section thirty-six hundred nine-a of this part, the

apportionment provided for in this subdivision shall be paid pursuant to

section thirty-six hundred nine-b of this part.

For the two thousand eight--two thousand nine school year, each school

district shall be entitled to an apportionment equal to the product of

fifteen percent and the additional apportionment computed pursuant to

this subdivision for the two thousand seven--two thousand eight school

year. For the two thousand nine--two thousand ten school year and

thereafter each school district shall be entitled to an apportionment

equal to the amount set forth for such school district as "SUPPLEMENTAL

PUB EXCESS COST" under the heading "2008-09 BASE YEAR AIDS" in the

school aid computer listing produced by the commissioner in support of

the budget for the two thousand nine--two thousand ten school year and

entitled "SA0910".

6. Apportionment for capital outlays and debt service for school

building purposes. Any apportionment to a school district pursuant to

this subdivision shall be based upon base year approved expenditures for

capital outlays incurred prior to July first, two thousand one from its

general fund, capital fund or reserved funds and current year approved

expenditures for debt service, including debt service for refunding bond

issues eligible for an apportionment pursuant to paragraph g of this

subdivision and lease or other annual payments to the New York city

educational construction fund created by article ten of this chapter or

the city of Yonkers educational construction fund created by article

ten-B of this chapter which have been pledged to secure the payment of

bonds, notes or other obligations issued by the fund to finance the

construction, acquisition, reconstruction, rehabilitation or improvement

of the school portion of combined occupancy structures, or for lease or

other annual payments to the New York state urban development

corporation created by chapter one hundred seventy-four of the laws of

nineteen hundred sixty-eight, pursuant to agreement between such school

district and such corporation relating to the construction, acquisition,

reconstruction, rehabilitation or improvement of any school building, or

for annual payments to the dormitory authority pursuant to any lease,

sublease or other agreement relating to the financing, refinancing,

acquisition, design, construction, reconstruction, rehabilitation,

improvement, furnishing and equipping of, or otherwise provide for

school district capital facilities or school district capital equipment

made under the provisions of section sixteen hundred eighty of the

public authorities law, or for annual payments pursuant to any lease,

sublease or other agreement relating to the financing, refinancing,

acquisition, design, construction, reconstruction, rehabilitation,

improvement, furnishing and equipping of, or otherwise providing for

educational facilities of a city school district under the provisions of

section sixteen of chapter six hundred five of the laws of two thousand,

or for payments, pursuant to any assignment authorized by section

twenty-seven hundred ninety-nine-tt of the public authorities law, of

debt service in furtherance of funding the five-year educational

facilities capital plan of the city of New York school district or

related debt service costs and expenses as set forth in such section,

for annual payments pursuant to any lease, sublease or other agreement

relating to the financing, refinancing, design, reconstruction,

rehabilitation, improvement, furnishing and equipping of, or otherwise

providing for projects authorized pursuant to the city of Syracuse and

the board of education of the city school district of the city of

Syracuse cooperative school reconstruction act, for annual payments

pursuant to any lease, sublease or other agreement relating to the

financing, refinancing, design, reconstruction, rehabilitation,

improvement, furnishing and equipping of, or otherwise providing for

projects authorized pursuant to the city of Rochester and the board of

education of the city school district of the city of Rochester school

facilities modernization program act, for annual payments pursuant to

any lease, sublease or other agreement relating to the financing,

refinancing, design, construction, reconstruction, rehabilitation,

improvement, furnishing and equipping of, or otherwise providing for

projects authorized pursuant to the Yonkers city school district

facilities modernization program act, or for lease, lease-purchase or

other annual payments to another school district or person, partnership

or corporation pursuant to an agreement made under the provisions of

section four hundred three-b, subdivision eight of section twenty-five

hundred three, or subdivision six of section twenty-five hundred

fifty-four of this chapter, provided that the apportionment for such

lease or other annual payments under the provisions of section four

hundred three-b, subdivision eight of section twenty-five hundred three,

or subdivision six of section twenty-five hundred fifty-four of this

chapter, other than payments under a lease-purchase agreement or an

equivalent agreement, shall be based upon approved expenditures in the

current year. Approved expenditures for capital outlays from a school

district's general fund, capital fund or reserved funds that are

incurred on or after July first, two thousand two, and are not aidable

pursuant to subdivision six-f of this section, shall be aidable as debt

service under an assumed amortization established pursuant to paragraphs

e and j of this subdivision. In any such case approved expenditures

shall be only for new construction, reconstruction, purchase of existing

structures, for site purchase and improvement, for new garages, for

original equipment, furnishings, machinery, or apparatus, and for

professional fees and other costs incidental to such construction or

reconstruction, or purchase of existing structures. In the case of a

lease or lease-purchase agreement entered pursuant to section four

hundred three-b, subdivision eight of section twenty-five hundred three

or subdivision six of section twenty-five hundred fifty-four of this

chapter, approved expenditures for the lease or other annual payments

shall not include the costs of heat, electricity, water or other

utilities or the costs of operation or maintenance of the leased

facility. An apportionment shall be available pursuant to this

subdivision for construction, reconstruction, rehabilitation or

improvement in a building, or portion thereof, being leased by a school

district only if the lease is for a term of at least ten years

subsequent to the date of the general construction contract for such

construction, reconstruction, rehabilitation or improvement. Each school

district shall prepare a five year capital facilities plan, pursuant to

regulations developed by the commissioner for such purpose, provided

that in the case of a city school district in a city having a population

of one million inhabitants or more, such facilities plan shall comply

with the provisions of section twenty-five hundred ninety-p of this

chapter and this subdivision. Such plan shall include, but not be

limited to, a building inventory, and estimated expense of facility

needs, for new construction, additions, alterations, reconstruction,

major repairs, energy consumption and maintenance by school building, as

appropriate. Such plan shall consider the incorporation of design

principles and strategies, pursuant to guidance issued by the

commissioner, as part of a comprehensive approach to provide a safe,

secure and healthy school environment. Such five year plan shall include

a priority ranking of projects and shall be amended if necessary to

reflect subsequent on-site evaluations of facilities conducted by state

supported contractors.

a. For capital outlays for such purposes first incurred on or after

July first, nineteen hundred sixty-one and debt service for such

purposes first incurred on or after July first, nineteen hundred

sixty-two, the actual approved expenditures less the amount of civil

defense aid received pursuant to the provisions of section thirty-five

of chapter seven hundred eighty-four of the laws of nineteen hundred

fifty-one as amended shall be allowed for purposes of apportionment

under this subdivision but not in excess of the following schedule of

cost allowances:

(1) For new construction and the purchase of existing structures, the

cost allowances shall be based upon the rated capacity of the building

or addition and a basic per pupil allowance of up to six thousand three

hundred seventy-five dollars adjusted monthly by a statewide index

reflecting changes in the cost of labor and materials since July first,

nineteen hundred ninety-two, established by the commissioner of labor,

modified by an annual county or multi-county labor market composite wage

rate, established by the commissioner of labor in consultation with the

commissioner, for July first of the base year, commencing July first,

nineteen hundred ninety-seven for general construction contracts awarded

on or after July first, nineteen hundred ninety-eight, indexed to the

median of such county or multi-county rates, but not less than one.

Such base allowance shall apply to a building or an addition housing

grades prekindergarten through six and shall be adjusted for a building

or an addition housing grades seven through nine by a factor of one and

four-tenths, for a building or an addition housing grades seven through

twelve by a factor of one and five-tenths, for a building or addition

housing special education programs by a factor of two, except that where

such building or addition is connected to, or such space is located

within, a public school facility housing programs for nondisabled

pupils, as approved by the commissioner, a factor of three shall be

used. Rated capacity of a building or an addition shall be determined by

the commissioner based on space standards and other requirements for

building construction specified by the commissioner. Such assigned

capacity ratings shall include, in addition to those spaces used for the

instruction of pupils, those spaces which are used for elementary and

secondary school libraries, cafeterias, prekindergarten instructional

rooms, teachers' conference rooms, gymnasiums and auditoriums. For new

construction projects approved on or after July first, two thousand, by

the voters of the school district or by the board of education of a city

school district in a city with more than one hundred twenty-five

thousand inhabitants, and/or the chancellor in a city school district in

a city having a population of one million or more, such rated capacity

for new buildings and additions constructed to replace existing

buildings that, in the judgment of the commissioner, have not been

adequately maintained and have not reached their projected useful life

shall be reduced by the commissioner by an amount proportional to the

remaining unused portion of the useful life of the existing buildings,

provided however that the commissioner may waive such requirement upon a

finding that replacement of the existing building is necessary to

protect the health and safety of students or staff, that reconstruction

and modernization of the existing building would not adequately address

such health and safety problems, and that the need to replace the

building was not caused by failure to adequately maintain the building.

If the commissioner of labor resets the statewide index reflecting

changes in the costs of labor and materials since July first, nineteen

hundred ninety-two, the commissioner shall adopt regulations to

supersede the basic per pupil allowance of up to six thousand three

hundred seventy-five dollars to the imputed allowance in effect at that

time.

(2) Where a school district has expenditures for site purchase,

grading or improvement of the site, original furnishings, equipment,

machinery or apparatus, or professional fees, or other incidental costs,

the cost allowances for new construction and the purchase of existing

structures may be increased by the actual expenditures for such purposes

but by not more than the product of the applicable cost allowance

established pursuant to subparagraph one of this paragraph and twenty

per centum for school buildings or additions housing grades

prekindergarten through six and by not more than the product of such

cost allowance and twenty-five per centum for school buildings or

additions housing grades seven through twelve and by not more than the

product of such cost allowance and twenty-five per centum for school

buildings or additions housing special education programs as approved by

the commissioner.

(3) Cost allowances for reconstructing or modernizing structures shall

not exceed one hundred per centum of the cost allowances for the

equivalent new construction over the projected useful life of the

building, to be determined in accordance with the regulations of the

commissioner. Reconstruction projects shall reasonably meet the criteria

established for new construction, including but not limited to energy,

fire, personal safety and space per pupil standards.

(4) The commissioner shall promulgate regulations prescribing the

methodology for establishing a multi-year cost allowance for the purpose

of computation of building aid to school districts and a procedure for

school districts to appeal the determination that a building has not

been adequately maintained, as required by subparagraphs one and three

of this paragraph. Such methodology shall include the development of a

building replacement cost allowance schedule for the replacement of

major building systems of a building over its projected useful life and

the construction of new buildings and additions for projects that have

been approved on or after July first, two thousand by the voters of the

school district or by the board of education of a city school district

in a city with more than one hundred twenty-five thousand inhabitants,

and/or the chancellor in a city school district in a city having a

population of one million or more. For purposes of this subdivision,

"major building systems" shall mean the electrical, plumbing, heating,

ventilation and air conditioning systems, and the roof and other major

structural elements of a school building.

(5) For costs relating to the construction, acquisition,

reconstruction or leases of any school building project conducted by or

on behalf of a city school district in a city having a population of one

million inhabitants or more, where a general construction contract has

been awarded or a purchase or lease agreement was executed on or after

July first, two thousand four, the cost allowance for such project shall

include: (a) construction and incidental costs where such costs are

associated with multistory construction necessitated by substandard site

sizes, site security costs, difficulties with delivery of construction

supplies, increased fire resistence and fire suppression costs, and (b)

site acquisition, environmental remediation and building demolition

costs, provided, however, that costs which are eligible for an

apportionment pursuant to this subparagraph on or before July first, two

thousand six shall be deemed to be debt service for the two thousand

five--two thousand six school year on new bonds and capital notes

aidable in July following the current year pursuant to clause (b) of

subparagraph one of paragraph f of this subdivision.

On or before January first, two thousand nine, the commissioner shall

report to the director of the budget, the chair of the senate finance

committee and the chair of the assembly ways and means committee on the

projects which received funding pursuant to the provisions of this

subparagraph, and the overall implementation of this subparagraph.

(6) Notwithstanding any other provision of law to the contrary, for

the purpose of computation of building aid for reconstruction or

modernizing of no more than eight projects pursuant to chapter five

hundred thirty-three of the laws of two thousand fourteen, multi-year

cost allowances for each project shall be established and utilized two

times in the first five-year period. Subsequent multi-year cost

allowances shall be established no sooner than ten years after

establishment of the first maximum cost allowance authorized pursuant to

this subparagraph.

(7) Notwithstanding any other provision of law to the contrary, for

the purpose of computation of building aid for three new construction

projects and for the equipping of such projects authorized pursuant to

chapter three hundred fifty-five of the laws of two thousand sixteen,

multi-year cost allowances for each project shall be established and

utilized two times in the first five-year period. Subsequent multi-year

cost allowances shall be established no sooner than ten years after

establishment of the first maximum cost allowance authorized pursuant to

this subparagraph.

(8) Notwithstanding any other provision of law to the contrary, for

the purpose of computation of building aid for the renovation and

equipping of the Syracuse Science, Technology, Engineering, Arts and

Mathematics high school authorized for operation by the Syracuse city

school district the building aid units assigned to this project shall

reflect a building aid enrollment of one thousand students and

multi-year cost allowances for the project shall be established and

utilized two times in the first five-year period. Subsequent multi-year

cost allowances shall be established no sooner than ten years after

establishment of the first maximum cost allowance authorized pursuant to

this subparagraph.

(9) Notwithstanding any other provision of law to the contrary, for

the purpose of computation of building aid for reconstruction or

modernizing of no more than six projects pursuant to chapter four

hundred sixteen of the laws of two thousand seven, as amended, enacting

the third phase of the city of Rochester school facilities modernization

program act, multi-year cost allowances for each project shall be

established and utilized two times in the first five-year period.

Subsequent multi-year cost allowances shall be established no sooner

than ten years after establishment of the first maximum cost allowance

authorized pursuant to this subparagraph.

(10) Notwithstanding any other provision of law to the contrary, for

the purpose of computation of building aid for the renovation and

equipping of the Leonardo da Vinci high school authorized for operation

by the city school district of the city of Buffalo the building aid

units assigned to this project shall reflect a building aid enrollment

of four hundred twenty students.

(11) Notwithstanding any other provision of law to the contrary, for

the purpose of computation of building aid for reconstruction or

modernizing of the STEM at Blodgett middle school, the Delaware Primary

school, the Syracuse Latin school, the Lincoln middle school, the

Roberts Pre-k-8 school, the Seymour Dual Language Academy and the

Webster elementary school pursuant to a chapter of the laws of two

thousand twenty-one enacting the third phase of the city of Syracuse

cooperative school reconstruction act, multi-year cost allowances for

each project shall be established and utilized two times in the first

five-year period. Subsequent multi-year cost allowances shall be

established no sooner than ten years after establishment of the first

maximum cost allowance authorized pursuant to this subparagraph.

(12) Notwithstanding any other provision of law to the contrary, for

the purpose of computation of building aid for construction,

reconstruction or modernizing of no more than one project by the

Binghamton city school district, multi-year cost allowances for the

project shall be established and utilized two times in the first

five-year period. Subsequent multi-year cost allowances shall be

established no sooner than ten years after establishment of the first

maximum cost allowance authorized pursuant to this subparagraph.

(13) (a) Renewable energy projects shall be considered part of the

cost allowances calculated by the commissioner pursuant to this

subparagraph.

(b) For the purposes of determining eligible cost allowances pursuant

to this subparagraph, renewable energy projects shall include: (i) solar

photovoltaic or thermal systems, whether ground-mounted or roof-mounted;

(ii) geothermal systems; and (iii) other systems, as defined in

subdivision one of section sixty-six-p of the public service law, which

may be considered appropriate by the commissioner and the New York state

energy research and development authority. Renewable energy projects may

not include capital expenses allowable under subdivision seven of this

section.

(c) Ground-mounted renewable energy projects shall be sited to

minimize impacts on athletic fields, outdoor educational spaces, and

natural areas serving the school.

(d) The portion of project costs attributable to system capacity that,

when combined with other renewable energy projects, if any, exceeds one

hundred ten percent of the building's baseline energy consumption shall

not constitute an aidable expense. Baseline energy consumption shall be

calculated using a methodology as determined by the commissioner, in

consultation with the New York state energy research and development

authority, which shall consider historic energy consumption.

b. (1) The apportionment for school building purposes to any district

shall be determined by adding the amount of its current year approved

expenditures for lease or other annual payments under the provisions of

section four hundred three-b, subdivision eight of section twenty-five

hundred three, or subdivision six of section twenty-five hundred

fifty-four of this chapter, other than payments under a lease-purchase

agreement or an equivalent agreement, plus the amount of its current

year approved expenditures under an assumed amortization for capital

outlays for school building purposes from its general fund, capital fund

or from a reserve fund to the amount of its current year approved

expenditures for debt service for such purposes and multiplying the sum

by its aid ratio. Expenditures made for computer equipment, including

original purchase and installation of hardware, conduit, wiring, and

powering of hardware installations in computer classrooms, or for

building or campuswide local area network systems and in-building

elements of other wide area networks, including the original purchase

and installation of conduit, wiring, and powering of hardware

installations, may be included in approved expenditures for building aid

pursuant to this paragraph on the approval of the commissioner

regardless of any minimum cost requirement that may be applied to other

approved expenditures pursuant to this section. Such equipment expenses

claimed for aid under this subdivision shall not be claimed for aid

under any other provisions of this chapter. Provided further that any

lead remediation expense required pursuant to section eleven hundred ten

of the public health law, where such expense is reimbursable from

another state or federal source, shall not be an approved expenditure

for purposes of this subdivision.

(2) Additional apportionment for certain school building projects.

(i) Eligibility. All school building projects (a) approved by the voters

of the school district or (b) approved by the board of education of a

city school district in a city with more than one hundred twenty-five

thousand inhabitants, and/or the chancellor in a city school district in

a city having a population of one million or more or (c) in the case of

a construction emergency project, approved by the board of education of

any school district or by the chancellor in a city school district in a

city having a population of one million or more, for projects approved

on or after July first, nineteen hundred ninety-eight, shall be eligible

for an additional apportionment pursuant to this subparagraph to the

extent that expenditures for such projects are otherwise aidable

pursuant to this subdivision, provided that where such projects are

leases, such projects would only be aidable pursuant to this subdivision

following the approval of the voters of the school district if entered

into pursuant to section four hundred three-b of the education law, and

provided that for all such projects so approved on or after July first,

two thousand, expenditures directly related to swimming pools shall not

be eligible for such additional apportionment, and further provided that

for the purposes of this subdivision a construction emergency project

shall mean a school construction project approved on or after July

first, two thousand, to remediate emergency situations which arise in

public school buildings and threaten the health and/or safety of

building occupants, as a result of the unanticipated discovery of

asbestos or other hazardous substances during construction work on a

school or significant damage caused by a fire, snow storm, ice storm,

excessive rain, high wind, flood or similar catastrophic event which

results in the necessity for immediate repair.

(ii) Apportionment. The apportionment pursuant to this subparagraph

shall equal the product of such eligible approved expenses determined in

accordance with the provisions of clause (i) of this subparagraph and

this section and the incentive decimal computed for use in the year in

which the project was approved. The incentive decimal shall equal the

positive remainder resulting when the district's building aid ratio

selected pursuant to paragraph c of this subdivision is subtracted from

the enhanced building aid ratio. The enhanced building aid ratio shall

equal the sum of the building aid ratio selected for use in the current

year pursuant to paragraph c of this subdivision and one-tenth, computed

to three decimals without rounding, but not more than (a) ninety-eight

hundredths for a high need school district, as defined pursuant to

regulations of the commissioner, for all school building projects

approved by the voters of the school district or by the board of

education of a city school district in a city with more than one hundred

twenty-five thousand inhabitants, and/or the chancellor in a city school

district in a city having a population of one million or more, on or

after July first, two thousand five, or (b) ninety-five hundredths for

any other school building project or school district, nor less than

one-tenth.

c. (1) For aid payable in the school year nineteen hundred

ninety-three--ninety-four and earlier, any school district may compute

aid under the provisions of this subdivision, or under subdivision six

of section thirty-six hundred one-a of this article, using the building

aid ratio computed for use in the current year or the aid ratio computed

for use in any year commencing with the nineteen hundred

eighty-one--eighty-two school year as computed by the commissioner based

on data on file with the education department as of July first, nineteen

hundred ninety-six, and; provided that, school districts who are

eligible for aid under paragraph f of subdivision fourteen of this

section may compute aid under the provisions of this subdivision using

the aid ratio so computed for the reorganized district or the highest of

the aid ratios so computed for any of the individual school districts

which existed prior to the date of the reorganized school district.

(2) (a) For aid payable in the school years nineteen hundred

ninety-four--ninety-five and thereafter for all school building projects

approved by the voters of the school district or by the board of

education of a city school district in a city with more than one hundred

twenty-five thousand inhabitants, and/or the chancellor in a city school

district in a city having a population of one million or more, before

July first, two thousand, any school district may compute aid under the

provisions of this subdivision using the building aid ratio computed for

use in the current year or the aid ratio computed for use in any year

commencing with the nineteen hundred eighty-one--eighty-two school year

as such earlier aid ratios are computed by the commissioner based on

data on file with the education department on or before July first of

the third school year following the school year in which aid is first

payable; provided that, school districts who are eligible for aid under

paragraph f of subdivision fourteen of this section may compute aid

under the provisions of this subdivision using the aid ratio so computed

for the reorganized district or the highest of the aid ratios so

computed for any of the individual school districts which existed prior

to the date of the reorganized school district.

(b) For aid payable in the school years two thousand--two thousand one

and thereafter for all school building projects approved by the voters

of the school district or by the board of education of a city school

district in a city with more than one hundred twenty-five thousand

inhabitants, and/or the chancellor in a city school district in a city

having a population of one million or more, on or after July first, two

thousand, any school district shall compute aid under the provisions of

this subdivision using the sum of the high-need supplemental building

aid ratio, if any, computed pursuant to clause (c) of this subparagraph

and the greater of (i) the building aid ratio computed for use in the

current year; or (ii) a building aid ratio equal to the difference of

the aid ratio that was used or that would have been used to compute an

apportionment pursuant to this subdivision in the nineteen hundred

ninety-nine--two thousand school year as such aid ratio is computed by

the commissioner based on data on file with the department on or before

July first of the third school year following the school year in which

aid is first payable, less one-tenth; or (iii) for all such school

building projects approved by the voters of the school district or by

the board of education of a city school district in a city with more

than one hundred twenty-five thousand inhabitants, and/or the chancellor

in a city school district in a city having a population of one million

or more, on or after July first, two thousand and on or before June

thirtieth, two thousand four, for any school district for which the

pupil wealth ratio is greater than two and five-tenths in the school

year in which such school building project was approved by the voters of

the school district or by the board of education of a city school

district in a city with more than one hundred twenty-five thousand

inhabitants, and/or the chancellor in a city school district in a city

having a population of one million or more and for which the alternate

pupil wealth ratio is less than eighty-five hundredths in such school

year, and for all such school building projects approved by the voters

of the school district or by the board of education of a city school

district in a city with more than one hundred twenty-five thousand

inhabitants, and/or the chancellor in a city school district in a city

having a population of one million or more, on or after July first, two

thousand five and on or before June thirtieth, two thousand eight, for

any school district for which the pupil wealth ratio was greater than

two and five-tenths in the two thousand--two thousand one school year

and for which the alternate pupil wealth ratio was less than eighty-five

hundredths in the two thousand--two thousand one school year, the

additional building aid ratio; provided that, school districts who are

eligible for aid under paragraph f of subdivision fourteen of this

section may compute aid under the provisions of this subdivision using

the difference of the highest of the aid ratios so computed for the

reorganized district or the highest of the aid ratios so computed for

any of the individual school districts which existed prior to the date

of the reorganized school district less one-tenth.

(c) For aid payable in the school years two thousand five--two

thousand six and thereafter for all school building projects approved by

the voters of the school district or by the board of education of a city

school district in a city with more than one hundred twenty-five

thousand inhabitants, and/or the chancellor in city school district in a

city having a population of one million or more, on or after July first,

two thousand five, high need school districts, as defined pursuant to

regulations of the commissioner, may compute aid under the provisions of

this subdivision using the high-need supplemental building aid ratio,

which shall be the lesser of (A) the product, computed to three decimals

without rounding, of the greater of the building aid ratios computed

pursuant to subclauses i, ii and iii of clause (b) of this subparagraph

multiplied by five percent, or (B) the positive remainder of

ninety-eight one-hundredths less the greater of the building aid ratios

computed pursuant to subclauses i, ii and iii of clause (b) of this

subparagraph.

d. Additional apportionment of building aid for structural inspection

of school buildings. In addition to the foregoing apportionments made to

a school district under the provisions of this subdivision, the

commissioner is hereby authorized to apportion to any school district an

amount in accordance with this subdivision for structural inspections of

school buildings conducted pursuant to sections four hundred nine-d and

four hundred nine-e of this chapter and the regulations of the

commissioner implementing such sections. The amount of such

apportionment shall equal the product of the building aid ratio defined

pursuant to paragraph c of this subdivision and the actual approved

expenses incurred by the district in the base year for each school

building so inspected by a licensed architect or licensed professional

engineer, provided that the amount of such apportionment shall not

exceed the structural inspection aid ceiling. For inspections conducted

in the nineteen hundred ninety-two--ninety-three school year, the

structural inspection aid ceiling shall be ten thousand dollars. For

inspections conducted in the nineteen hundred ninety-three--ninety-four

school year and thereafter, the inspection aid ceiling shall be ten

thousand dollars plus an amount computed by the commissioner in

accordance with regulations adopted for such purpose, on the basis of an

index number reflecting changes in the costs of labor and materials from

July first, nineteen hundred ninety-three.

e. (1) Apportionments payable for the nineteen hundred

ninety-three--ninety-four through the two thousand one--two thousand two

school years to the city school district of the city of New York. (a)

For the purposes of calculating the apportionment payable to the city

school district of the city of New York pursuant to this subdivision for

the nineteen hundred ninety-three--ninety-four through the two thousand

one--two thousand two school years, current year approved expenditures

for debt service shall mean expenditures for debt service that would be

incurred during the current year based on an assumed amortization for a

period of thirty years of the total approved costs relating to the

construction, acquisition, reconstruction, rehabilitation or improvement

of any school building, and based on an assumed rate of annual interest

applied to such amortization, both to be established by the commissioner

pursuant to this subparagraph.

(b) The commissioner shall establish an assumed amortization for a

period of thirty years commencing with the date of the award of a

general contract by the school construction authority of the city of New

York, or by another body or official designated by law, relating to the

construction, acquisition, reconstruction, rehabilitation or improvement

of any school building within the city school district of the city of

New York. Such assumed amortization shall provide for equal monthly

payments of principal and interest based on an interest rate established

by the commissioner for such purpose for the school year during which

such general contract is awarded. Such estimated average interest rate

and such actual average interest rate shall be expressed as a decimal to

five places rounded to the nearest eighth of one-one hundredth.

(c) By the first day of September of the current year the comptroller

of the city of New York shall provide to the commissioner an analysis,

as prescribed by the commissioner, of the actual average interest rate

applied to all capital debt incurred by the city of New York and the New

York city transitional finance authority for school purposes during the

base year and of the estimated average interest rate applied to all

capital debt to be incurred by the city of New York and the New York

city transitional finance authority for school purposes during the

current year. Upon approval by the commissioner such actual average

interest rate shall be established as the interest rate applicable to

the base year for the purposes of this subparagraph and subparagraph two

of this paragraph, and such estimated average interest rate shall be

tentatively established as the interest rate applicable to the current

year, except that all apportionments of aid payable during the current

year based on such estimated average interest rate shall be recalculated

in the following year and adjusted as appropriate based on the

appropriate actual average interest rate then established by the

commissioner.

(d) By the first day of November, nineteen hundred ninety-six the

chancellor of the city school district of the city of New York shall

provide to the commissioner an analysis of any outstanding debt of the

city of New York which had originally been incurred by such city or its

subdivisions for capital projects related to school buildings of the

city school district of the city of New York for which general

construction contracts were awarded prior to July first, nineteen

hundred eighty-eight. Such analysis shall include the total principal

amount borrowed, the total capital expenditures included in such

principal for capital projects related to school buildings of the city

school district of the city of New York for which general construction

contracts were awarded prior to July first, nineteen hundred

eighty-eight, the ratio of such capital expenditures to such total

principal expressed as a decimal to five places without rounding and the

annual principal and interest payment scheduled for each year remaining

in the amortization of such principal as of July first, nineteen hundred

ninety-six for all such borrowings reported to the department on the "SA

121 Form Building Expenses Worksheet, 1995-96 State Aid" bearing a run

date of July tenth, nineteen hundred ninety-five which list shall

constitute the maximum principal outstanding and eligible for aid

pursuant to the provisions of this paragraph. Notwithstanding any other

provision of this subdivision, for aids payable in the nineteen hundred

ninety-six--ninety-seven school year and thereafter, the approved debt

service included in such principal and interest payments for the

purposes of calculating an apportionment pursuant to this subdivision

shall equal the product of: (i) five tenths; (ii) the principal and

interest payments scheduled for the current year as reported in such

analysis; and (iii) the ratio of such capital expenditures to such total

principal as reported in such analysis.

(2) Apportionments payable for the two thousand two--two thousand

three school year and thereafter to the city school district of the city

of New York.

(a) For the purposes of calculating the apportionment payable to the

city school district of the city of New York pursuant to this

subdivision for the two thousand two--two thousand three school year and

thereafter, current year approved expenditures for debt service shall

mean expenditures for debt service, including expenditures for any

lease-purchase or other annual payments under a lease-purchase agreement

or the equivalent that are eligible for aid under the opening paragraph

of this subdivision, that would be incurred during the current year

based on:

(i) an assumed amortization to be established by the commissioner

pursuant to this subparagraph for a period of thirty years of the total

approved costs relating to the construction, acquisition,

reconstruction, rehabilitation or improvement of any school building for

which a general construction contract was awarded on or after the first

day of July, two thousand two, and

(ii) an assumed amortization to be established by the commissioner

pursuant to this subparagraph of any assumed unpaid principal, or the

equivalent amount in the case of a lease-purchase agreement or its

equivalent, remaining as of the first day of July, two thousand two

pursuant to subparagraph one of this paragraph. Each such amortization

shall be based on an assumed rate of annual interest applied to such

amortization to be established by the commissioner pursuant to this

subparagraph and pursuant to clause (c) of subparagraph one of this

paragraph.

(b)(i) For approved costs relating to the construction, acquisition,

reconstruction, rehabilitation or improvement of any school building for

which a general construction contract was awarded on or after the first

day of July, two thousand two, the commissioner shall establish an

assumed amortization for a period of thirty years commencing on the date

of receipt by the commissioner of a certification by the district that

such general construction contract has been awarded by the school

construction authority of the city of New York, or by another body or

official designated by law, relating to the construction, acquisition,

reconstruction, rehabilitation or improvement of any school building

within the city school district of the city of New York. Such assumed

amortization shall provide for equal semiannual payments of principal

and interest based on an interest rate established by the commissioner

for such purpose for the school year during which such certification was

received. Such estimated average interest rate and such actual average

interest rate shall be expressed as a decimal to five places rounded to

the nearest eighth of one-one hundredth.

(ii) For any assumed unpaid principal or the equivalent amount in the

case of a lease-purchase agreement or its equivalent, remaining as of

the first day of July, two thousand two pursuant to subparagraph one of

this paragraph, the commissioner shall establish a new assumed

amortization commencing on such date for the unexpired term of the

original assumed amortization as of such date. Such assumed amortization

shall provide for equal semiannual payments of principal and interest

based on the interest rate applied to the original amortization as

established by the commissioner pursuant to subparagraph one of this

paragraph. Provided, however, that, notwithstanding any provision of law

to the contrary, for aid payable in the two thousand nine--two thousand

ten school year and thereafter, the total apportionment for such current

year approved expenditures for debt service shall not exceed the

estimated apportionment as computed based on the estimated current year

approved expenditures for debt service on file with the commissioner as

of the date upon which an electronic data file was created for the

purposes of compliance with paragraph b of subdivision twenty-one of

section three hundred five of this chapter on November fifteenth of the

base year, and the positive remainder, if any, of such apportionment

less such estimated apportionment shall not be an apportionment payable

in the current year, but shall be deemed to be an apportionment payable

for debt service on new bonds and capital notes aidable in July

following the current year as defined in clause (b) of subparagraph one

of paragraph f of this subdivision. Such estimate shall be done in

consultation with the commissioner.

(3) Apportionments payable to a school district other than the city

school district of the city of New York for any debt service related to

projects approved by the commissioner on or after the later of the first

day of December, two thousand one or thirty days after the date upon

which this subparagraph shall have become a law or for any debt service

related to projects approved by the commissioner prior to such date

where a bond, capital note or bond anticipation note is first issued on

or after such date to fund such project or for lease-purchase or other

annual payments under a lease-purchase agreement or an equivalent

agreement entered into on or after such date that are eligible for aid

under the opening paragraph of this subdivision.

(a) For the purposes of calculating the apportionments payable to a

school district other than the city school district of the city of New

York pursuant to this subdivision for any debt service related to

projects approved by the commissioner on or after the later of the first

day of December, two thousand one or thirty days after the date upon

which this subparagraph shall have become a law, or for any debt service

related to projects approved by the commissioner prior to such date

where a bond, capital note or bond anticipation note is first issued on

or after such date to fund such project or for lease-purchase or other

annual payments under a lease-purchase agreement or an equivalent

agreement entered into on or after the later of the first day of

December, two thousand one or thirty days after the date upon which this

subparagraph shall have become a law that are eligible for aid under the

opening paragraph of this subdivision, current year approved

expenditures for debt service shall mean debt service or lease-purchase

or other annual payments under a lease-purchase agreement or an

equivalent agreement that would be incurred during the current year

based on an assumed amortization to be established by the commissioner

pursuant to this subparagraph of the approved project costs to be

financed related to any such approved project, for a period of:

(i) thirty years if the project is for the construction or acquisition

of a new school building,

(ii) twenty years if the project is for the construction of an

addition to a school building or for the reconstruction, rehabilitation

or improvement of a school building for which a period of probable

usefulness of twenty or more years is assigned pursuant to the local

finance law, and

(iii) fifteen years if the project is for the reconstruction,

rehabilitation or improvement of a school building for which a period of

probable usefulness of less than twenty years is assigned pursuant to

the local finance law.

Provided, however, that, notwithstanding any provision of law to the

contrary, for aid payable in the two thousand three--two thousand four

school year, for any project which is eligible for an apportionment

pursuant to this subparagraph, but which did not yet have a

certification that a general construction contract had been awarded for

such project by the district on file with the commissioner as of

February fifteenth, two thousand three, such debt service or

lease-purchase or other annual payments under a lease-purchase agreement

or an equivalent agreement that would be incurred during the current

year based on an assumed amortization to be established by the

commissioner pursuant to this subparagraph of the approved project costs

to be financed shall not be current year approved expenditures for debt

service, but shall be deemed to be debt service on new bonds and capital

notes aidable in July following the current year pursuant to clause (b)

of subparagraph one of paragraph f of this subdivision.

Provided, however, that, notwithstanding any provision of law to the

contrary, for aid payable in the two thousand four--two thousand five

school year, for any project which is eligible for an apportionment

pursuant to this subparagraph, but which did not yet have a

certification that a general construction contract had been awarded for

such project by or on behalf of the district on file with the

commissioner as of February fifteenth of the base year, such debt

service or lease-purchase or other annual payments under a

lease-purchase agreement or an equivalent agreement that would be

incurred during the current year based on an assumed amortization to be

established by the commissioner pursuant to this subparagraph of the

approved project costs to be financed shall not be current year approved

expenditures for debt service, but shall be deemed to be debt service on

new bonds and capital notes aidable in July following the current year

pursuant to clause (b) of subparagraph one of paragraph f of this

subdivision.

Provided, however, that, notwithstanding any provision of law to the

contrary, for aid payable in the two thousand seven--two thousand eight

school year and thereafter, for any project which is eligible for an

apportionment pursuant to this subparagraph, but which did not yet have

a certification that a general construction contract had been awarded

for such project by or on behalf of the district on file with the

commissioner as of the date upon which an electronic data file was

created for the purposes of compliance with paragraph b of subdivision

twenty-one of section three hundred five of this chapter on November

fifteenth of the base year, such debt service or lease-purchase or other

annual payments under a lease-purchase agreement or an equivalent

agreement that would be incurred during the current year based on an

assumed amortization to be established by the commissioner pursuant to

this subparagraph of the approved project costs to be financed shall not

be current year approved expenditures for debt service, but shall be

deemed to be debt service on new bonds and capital notes aidable in July

following the current year pursuant to clause (b) of subparagraph one of

paragraph f of this subdivision.

(b) Such assumed amortization for a project approved by the

commissioner on or after the later of the first day of December, two

thousand one or thirty days after the date upon which this subdivision

shall have become a law and prior to the first day of July, two thousand

eleven or for any debt service related to projects approved by the

commissioner prior to such date where a bond, capital note or bond

anticipation note is first issued on or after the first day of December,

two thousand one to fund such projects, shall commence: (i) eighteen

months after such approval or (ii) on the date of receipt by the

commissioner of a certification by the district that a general

construction contract has been awarded for such project by the district,

whichever is later, and such assumed amortization for a project approved

by the commissioner on or after the first day of July, two thousand

eleven shall commence: (iii) eighteen months after such approval or (iv)

on the date of receipt by the commissioner of both the final certificate

of substantial completion of the project issued by the architect or

engineer and the final cost report for such project, whichever is later

or (v) upon the effective date of a waiver based on a finding by the

commissioner, pursuant to a process set forth by the commissioner, that

the district is unable to submit a final certificate of substantial

completion for the project and/or complete the final cost report because

of circumstances beyond the control of the district, which shall include

but shall not be limited to the inability of the district to complete a

complex project within eighteen months. Such assumed amortization shall

provide for equal semiannual payments of principal and interest based on

an interest rate established pursuant to subparagraph five of this

paragraph for such purpose for the school year during which such

certification is received. The first installment of obligations issued

by the school district in support of such projects may mature not later

than the dates established pursuant to sections 21.00 and 22.10 of the

local finance law.

(c) Definitions. For purposes of this paragraph and subdivision

thirty-nine of section sixteen hundred eighty of the public authorities

law:

(i) "the state share of a school construction project" shall mean the

product of: (A) the difference of the total approved cost of such

project less the approved cost of such project to be funded pursuant to

subdivision six-f of this section and subdivisions ten and twelve of

section thirty-six hundred forty-one of this article, multiplied by (B)

the building aid ratio applicable to such project pursuant to paragraph

c of this subdivision;

(ii) "the local share of a school construction project" shall mean the

difference of the total approved cost of such project, less the sum of:

(A) the approved cost of such project to be funded through subdivision

six-f of this section and subdivisions ten and twelve of section

thirty-six hundred forty-one of this article, and (B) the state share of

such school construction project;

(iii) "refinancing costs attributable to refinancing the state share

of a school construction project for purposes of retroactive

amortization" shall mean the sum of: (A) that portion of the approved

fees and other charges of refinancing, as defined in subparagraph one of

paragraph h of this subdivision, which are determined by the

commissioner to be reasonable in accordance with guidelines approved by

the director of the budget, and which are fixed charges that will not

vary by the amount of principal and additional principal to be refunded

and (B) the product of: (1) the total amount of such approved fees and

other charges of refinancing which are not fixed charges and which are

determined by the commissioner to be reasonable in accordance with

guidelines approved by the director of the budget, and (2) the

percentage of the principal of the refunding bond that is attributable

to refinancing of the state share of a school construction project

pursuant to subparagraph four of this paragraph, less (C) the amount of

such approved costs included in the principal of a refunding bond issued

by the school district or by the dormitory authority of the state of New

York to refund obligations of the school district subject to

subparagraph four of this paragraph which is necessary to provide for

the payment of the principal, redemption premiums, and interest due on

the refunded obligations of the school district to their stated

maturities or if such bonds are to be called, to the call date.

Provided, however, that such expenditures shall be incurred for

refunding bonds issued on or before July first, two thousand five and

that such expenditures result from the refunding of outstanding

obligations subject to an assumed amortization pursuant to this

subparagraph for facilities which were eligible for building aid, and

for which the annual aid apportionment payable in the two thousand

two--two thousand three and/or two thousand three--two thousand four

school years for approved expenditures for debt service are subsequently

reduced as a result of the application of assumed amortization to unpaid

principal outstanding as of July first, two thousand two, and further

provided that the gross dollar savings over the life of the obligation

shall be less than the approved fees and other charges of refinancing as

defined in subparagraph one of paragraph h of this subdivision, but only

to the extent that such amounts are not otherwise eligible for aid

pursuant to this subdivision;

(iv) "additional principal attributable to the refunding of bonds"

shall mean the amount of approved expenses included in the principal of

a refunding bond issued by the school district, or issued by the

dormitory authority of the state of New York to refund obligations of

the school district subject to subparagraph four of this paragraph,

which is necessary to provide for the payment of the principal,

redemption premiums, and interest due on the refunded obligations of the

school district to their stated maturities or if such bonds are to be

called, to the call date; and

(v) "additional principal attributable to the refunding of bonds to

refinance the state share of a school construction project for purposes

of retroactive amortization" shall mean the percentage of the additional

principal attributable to the refunding of bonds that is necessary to

refinance the state share of a school construction project pursuant to

subparagraph four of this paragraph.

(4) Apportionments payable for the two thousand two--two thousand

three school year and thereafter to a school district other than the

city school district of the city of New York or a school district

constituted pursuant to chapter five hundred sixty-six of the laws of

nineteen hundred sixty-seven as amended, for any debt service still

outstanding as of the first day of July, two thousand two that has not

been subject to an assumed amortization pursuant to subparagraph three

of this paragraph or for lease-purchase or other annual payments under a

lease-purchase agreement or an equivalent agreement having an unexpired

term on such date.

(a) For the purposes of calculating the apportionments payable to a

school district other than the city school district of the city of New

York pursuant to this subdivision for the two thousand two--two thousand

three school year and thereafter for any debt service still outstanding

as of the first day of July, two thousand two that has not been subject

to an assumed amortization pursuant to subparagraph three of this

paragraph or for lease-purchase or other annual payments under a

lease-purchase agreement or an equivalent agreement having an unexpired

term on such date, current year approved expenditures for debt service

shall mean debt service or lease-purchase or other annual payments under

a lease-purchase agreement or an equivalent agreement that would be

incurred during the current year based on an assumed amortization to be

established by the commissioner pursuant to this subparagraph of the sum

of

(i) any assumed or actual unpaid principal, or the equivalent amount

in the case of a lease-purchase agreement or its equivalent, remaining

as of the first day of July, two thousand two pursuant to an existing

amortization or any unpaid principal of a bond anticipation note as of

the first day of July, two thousand two, plus

(ii) the approved expenditures for the refunding of bonds that are

otherwise eligible for an apportionment pursuant to this subdivision, as

such expenditures are defined in subparagraph two of paragraph g of this

subdivision, provided that such refunding bonds are issued on or before

July first, two thousand five, less the sum of the refinancing costs

attributable to refinancing the state share of a school construction

project for purposes of retroactive amortization plus the additional

principal attributable to the refunding of bonds, as such terms are

defined in subclauses (iii) and (iv) of clause (c) of subparagraph three

of this paragraph, for a period equal to the greater of:

(i) the remaining maximum useful life of the project, or projects

associated with such obligation, as determined by the commissioner based

on data submitted by the school district, or

(ii) the remaining term of the bond, bond anticipation note, or

lease-purchase agreement.

(b) Such assumed amortization of any assumed or actual unpaid

principal, or the equivalent amount in the case of a lease-purchase

agreement or its equivalent, remaining as of the first day of July, two

thousand two for a project that has not been subject to an assumed

amortization pursuant to subparagraph three of this paragraph, shall

commence on the first day of July, two thousand two, and shall provide

for equal semiannual payments of principal and interest based on an

interest rate established by the commissioner for such purpose for the

two thousand two--two thousand three school year.

(c) Any school district eligible for an apportionment pursuant to this

subparagraph shall be eligible for an additional apportionment equal to

the sum of the refinancing costs attributable to refinancing the state

share of a school construction project for purposes of retroactive

amortization plus the additional principal attributable to the refunding

of bonds to refinance the state share of a school construction project

for purposes of retroactive amortization, as such terms are defined in

subclauses (iii) and (v) of clause (c) of subparagraph three of this

paragraph.

(d) Any school district that issues debt after July first, two

thousand two for the funding of the approved costs of projects eligible

for an apportionment pursuant to this subparagraph shall be eligible for

an additional apportionment calculated pursuant to the provisions of

this subdivision, where the assumed amortization shall be based upon

such approved costs and the remaining useful life shall be the remaining

period over which the apportionments calculated pursuant to clause (a)

of this subparagraph are to be paid.

(5) (a) Calculation of interest rates for the city school districts of

the cities of Buffalo, Rochester, Syracuse and Yonkers. (i) By the first

day of September of the current year, or by the date prescribed by the

commissioner for the two thousand one--two thousand two school year, the

chief fiscal officer of each of the cities of Buffalo, Rochester,

Syracuse and Yonkers shall provide to the commissioner an analysis, as

prescribed by the commissioner, of the actual average interest rate

applied to all capital debt incurred by such city related to school

construction purposes during the base year not including debt issued by

the dormitory authority for the benefit of any school district and of

the estimated average interest rate applied to all capital debt to be

incurred by such city related to school construction purposes during the

current year not including debt issued by the dormitory authority for

the benefit of any school district. Such interest rates shall be

expressed as a decimal to five places rounded to the nearest eighth of

one-one hundredth. Except as otherwise provided in items (ii), (iii) and

(iv) of this clause, the interest rate of such city applicable to the

base year for the purposes of this subparagraph shall be the actual

average interest rate of such city in the base year, and the estimated

average interest rate shall be tentatively established as the interest

rate of such city applicable to the current year, except that all

apportionments of aid payable during the current year based on such

estimated average interest rate shall be recalculated in the following

year and adjusted as appropriate based on the appropriate actual average

interest rate then established pursuant to this clause provided,

however, that in any year in which such city has not incurred debt

related to serial bonds or sinking fund bonds as defined in sections

21.00 and 22.10, respectively, of the local finance law, issued for

school construction purposes, the assumed interest rate calculated

pursuant to clause (b) of this subparagraph shall be tentatively

established as the interest rate of such city applicable to the projects

approved by the commissioner in such year, except that all

apportionments of aid payable based on such interest rate for each such

project shall be recalculated following the submission of a final cost

report for such project and adjusted as appropriate based on the

appropriate actual average interest rate applicable to the debt issued

to fund such project, and provided further that where such city has

entered into an agreement with the dormitory authority of the state of

New York to finance debt related to school construction that is subject

to subparagraph four of this paragraph or has entered into an agreement

with the dormitory authority of the state of New York for the purpose of

financing a school construction project that is subject to subparagraph

three of this paragraph, the interest rate applicable to the obligations

issued by the dormitory authority of the state of New York for such

purpose shall be the interest rate established for such city applicable

to such debt.

(ii) Notwithstanding the provisions of item (i) of this clause, where

such city has entered into an agreement with the state of New York

municipal bond bank agency pursuant to subdivision one of section

twenty-four hundred thirty-five-a of the public authorities law and

subdivision (b) of section sixteen of chapter six hundred five of the

laws of two thousand, or an agreement with the Erie county industrial

development agency for projects described in subdivision (b) of section

sixteen of such chapter six hundred five, to finance school renovation,

rehabilitation or reconstruction that is subject to subparagraph three

of this paragraph, the lesser of: (A) the interest rate actually

applicable to each series of obligations originally issued to finance

each phase of project costs approved by the commissioner, by the state

of New York municipal bond bank agency or by the Erie county industrial

development agency for such purpose (without regard to any refunding of

such obligations); or (B) the interest rate that would have been

applicable to each series of obligations originally issued to finance

each phase of project costs approved by the commissioner, by the state

of New York municipal bond bank agency (without regard to any refunding

of such obligations) if the project had been financed through such

agency, as certified to the commissioner by the executive director of

the state of New York municipal bond bank agency, shall be the interest

rate established for such city applicable for purposes of calculating

the assumed amortization for such approved project costs pursuant to

clause (b) of subparagraph three of this paragraph.

For projects approved by the commissioner in any school year in which

capital debt is incurred by either the state of New York municipal bond

bank agency or the Erie county industrial development agency to refund

debt related to school renovation, rehabilitation or reconstruction of

or on behalf of the school district, where such school renovation,

rehabilitation or reconstruction qualifies for apportionment pursuant to

subparagraph three of this paragraph, by the first day of September of

the current year, the chief fiscal officer of such city shall provide to

the commissioner an analysis, as prescribed by the commissioner, of the

actual average interest rate applied to all capital debt incurred to

finance or refund debt related to school renovation, rehabilitation or

reconstruction that qualifies for apportionment pursuant to subparagraph

three of this paragraph by either the state of New York municipal bond

bank agency or the Erie county industrial development agency during the

base year and of the estimated average interest rate applied to all

capital debt incurred to finance or refund debt related to school

renovation, rehabilitation or reconstruction that is subject to

subparagraph three of this paragraph by either the state of New York

municipal bond bank agency or the Erie county industrial development

agency during the current year. Such interest rates shall be expressed

as a decimal to five places rounded to the nearest eighth of one-one

hundredth. The interest rate established for such city applicable to

projects first approved in such year shall be tentatively established as

the interest rate computed pursuant to this clause for the current year,

except that all apportionments of aid payable during the current year

based on such estimated average interest rate shall be recalculated in

the following year and adjusted as appropriate based on the appropriate

actual average interest rate then established pursuant to this clause

and shall be the interest rate established for such city applicable for

purposes of calculating the assumed amortization for project costs

approved during the current year pursuant to clause (b) of subparagraph

three of this paragraph.

(iii) Notwithstanding the provisions of item (i) of this clause, where

such city has entered into an agreement with the state of New York

municipal bond bank agency pursuant to subdivision one of section

twenty-four hundred thirty-five-a of the public authorities law and

subdivision (a) of section fourteen of the city of Syracuse and the

board of education of the city school district of the city of Syracuse

cooperative school reconstruction act, or an agreement with the city of

Syracuse industrial development agency for projects authorized pursuant

to the city of Syracuse and the board of education of the city school

district of the city of Syracuse cooperative school reconstruction act,

to finance school rehabilitation or reconstruction that is subject to

subparagraph three of this paragraph, the lesser of: (A) the net

interest cost as defined by the commissioner, applicable to each series

of obligations originally issued by the state of New York municipal bond

bank agency or the city of Syracuse industrial development agency for

such purpose, without regard to any refunding of such obligations; or

(B) such net interest cost, as defined by the commissioner that would

have been applicable to each series of obligations originally issued to

finance each phase of project costs approved by the commissioner, by the

state of New York municipal bond bank agency, without regard to any

refunding of such obligations, if the project had been financed through

such agency, as certified to the commissioner by the executive director

of the state of New York municipal bond bank agency, shall be the

interest rate established for such city applicable for purposes of

calculating the assumed amortization for such approved project costs

pursuant to clause (b) of subparagraph three of this paragraph.

For projects approved by the commissioner in any school year in which

capital debt is incurred by either the state of New York municipal bond

bank agency or the city of Syracuse industrial development agency to

refund debt related to school renovation, rehabilitation or

reconstruction of or on behalf of the school district, where such school

renovation, rehabilitation or reconstruction qualifies for apportionment

pursuant to subparagraph three of this paragraph, by the first day of

September of the current year, the chief fiscal officer of such city

shall provide to the commissioner an analysis, as prescribed by the

commissioner, of the actual average interest rate applied to all capital

debt incurred to finance or refund debt related to school renovation,

rehabilitation or reconstruction that qualifies for apportionment

pursuant to subparagraph three of this paragraph by either the state of

New York municipal bond bank agency or the city of Syracuse industrial

development agency during the base year and of the estimated average

interest rate applied to all capital debt incurred to finance or refund

debt related to school renovation, rehabilitation or reconstruction that

is subject to subparagraph three of this paragraph by either the state

of New York municipal bond bank agency or the city of Syracuse

industrial development agency during the current year. Such interest

rates shall be expressed as a decimal to five places rounded to the

nearest eighth of one-one hundredth. The interest rate established for

such city applicable to projects first approved in such year shall be

tentatively established as the interest rate computed pursuant to this

clause for the current year, except that all apportionments of aid

payable during the current year based on such estimated average interest

rate shall be recalculated in the following year and adjusted as

appropriate based on the appropriate actual average interest rate then

established pursuant to this clause and shall be the interest rate

established for such city applicable for purposes of calculating the

assumed amortization for project costs approved during the current year

pursuant to clause (b) of subparagraph three of this paragraph.

(iv) Notwithstanding the provisions of item (i) of this clause, where

such city or city school district has entered into an agreement with the

county of Monroe industrial development agency or the dormitory

authority of the state of New York, for projects authorized pursuant to

the city of Rochester and the board of education of the city school

district of the city of Rochester school facilities modernization

program act, to finance school rehabilitation or reconstruction that is

subject to subparagraph three of this paragraph, the lesser of: (A) the

net interest cost, as defined by the commissioner, applicable to each

series of bonds or bond anticipation notes issued by the county of

Monroe industrial development agency or the dormitory authority of the

state of New York for such purpose, without regard to any refunding of

such obligations; or (B) such net interest cost, as defined by the

commissioner, that would have been applicable to each series of

obligations originally issued to finance each phase of project costs

approved by the commissioner, by the Monroe industrial development

agency or the dormitory authority of the state of New York, without

regard to any refunding of such obligations, if the project had been

financed through such agency or the dormitory authority of the state of

New York, as certified to the commissioner by the executive director of

the Monroe industrial development agency or the executive director of

the dormitory authority of the state of New York, shall be the interest

rate established for such city applicable for purposes of calculating

the assumed amortization for such approved project costs pursuant to

clause (b) of subparagraph three of this paragraph. For projects

approved by the commissioner in any school year in which capital debt is

incurred by either the dormitory authority of the state of New York or

the Monroe industrial development agency to refund debt related to

school renovation, rehabilitation or reconstruction of or on behalf of

the school district, where such school renovation, rehabilitation or

reconstruction qualifies for apportionment pursuant to subparagraph

three of this paragraph, by the first day of September of the current

year, the chief fiscal officer of such city shall provide to the

commissioner an analysis, as prescribed by the commissioner, of the

actual average interest rate applied to all capital debt incurred to

finance or refund debt related to school renovation, rehabilitation or

reconstruction that qualifies for apportionment pursuant to subparagraph

three of this paragraph by either the dormitory authority of the state

of New York or the city of Monroe industrial development agency during

the base year and of the estimated average interest rate applied to all

capital debt incurred to finance or refund debt related to school

renovation, rehabilitation or reconstruction that is subject to

subparagraph three of this paragraph by either the dormitory authority

of the state of New York or the Monroe industrial development agency

during the current year. Such interest rates shall be expressed as a

decimal to five places rounded to the nearest eighth of one-one

hundredth. The interest rate established for such city applicable to

projects first approved in such year shall be tentatively established as

the interest rate computed pursuant to this clause for the current year,

except that all apportionments of aid payable during the current year

based on such estimated average interest rate shall be recalculated in

the following year and adjusted as appropriate based on the appropriate

actual average interest rate then established pursuant to this clause

and shall be the interest rate established for such city applicable for

purposes of calculating the assumed amortization for project costs

approved during the current year pursuant to clause (b) of subparagraph

three of this paragraph.

(v) Notwithstanding the provisions of item (i) of this clause, where

such city or city school district has entered into an agreement with the

state of New York municipal bond bank agency pursuant to subdivision one

of section twenty four hundred thirty-five-a of the public authorities

law and section sixteen of the Yonkers city school district joint

schools construction and modernization act, or an agreement with the

city of Yonkers industrial development agency for projects authorized

pursuant to the Yonkers city school district joint schools construction

and modernization act, to finance debt related to school rehabilitation

or reconstruction of school buildings or construction of new school

buildings that is subject to subparagraph three of this paragraph, the

lesser of: (A) the net interest cost, as defined by the commissioner,

applicable to the obligations issued by the state of New York municipal

bond bank agency or the city of Yonkers industrial development agency

for such purpose; or (B) such net interest cost, as defined by the

commissioner, that would have been applicable to bonds issued by the

state of New York municipal bond bank agency if the project had been

authorized to be financed and had been financed through such entity, as

certified to the commissioner by the executive director of the state of

New York municipal bond bank agency, shall be the interest rate

established for such city applicable to such debt.

(b) Calculation of interest rates for school districts other than the

city school districts of the cities of Buffalo, Rochester, Syracuse,

Yonkers and New York. By the first day of September of the current year,

or by the date prescribed by the commissioner for the two thousand

one--two thousand two school year, each school district, other than the

city school districts of the cities of Buffalo, Rochester, Syracuse,

Yonkers and New York, shall provide to the commissioner in a format

prescribed by the commissioner such information as the commissioner

shall require for all capital debt incurred by such school district

during the preceding school year relating to the construction,

acquisition, reconstruction, rehabilitation or improvement of any school

building, not including debt issued by the dormitory authority. Based on

such reported amortizations and a methodology prescribed by the

commissioner in regulations, the commissioner shall compute an assumed

interest rate that shall equal the average of the interest rates applied

to all such debt issued during the preceding school year. The assumed

interest rate shall be tentatively established as the interest rate of

each such school district applicable to the current year for the

purposes of this subparagraph and shall be expressed as a decimal to

five places rounded to the nearest eighth of one-one hundredth except

that all apportionments of aid payable during the current year based on

such assumed interest rate shall be recalculated in the following year

and adjusted as appropriate based on the appropriate assumed interest

rate then established pursuant to this clause, provided, however, that

where such school district has entered into an agreement with the

dormitory authority of the state of New York to refinance debt issued by

such school district that is subject to subparagraph four of this

paragraph or has entered into an agreement with the dormitory authority

of the state of New York for the purpose of financing a school

construction project that is subject to subparagraph three of this

paragraph, the interest rate applicable to the obligations issued by the

dormitory authority of the state of New York for such purpose shall be

the interest rate established for each such school district applicable

to such debt.

(c) At the end of each ten year segment of an assumed amortization

established pursuant to subparagraphs two, three and four of this

paragraph, or in the two thousand seventeen--two thousand eighteen

school year in the case of assumed amortizations whose ten year segment

ends prior to such school year, the commissioner shall revise the

remaining scheduled semiannual payments of the outstanding principal and

interest of such assumed amortization, other than the outstanding

principal and interest of refunding bonds where the district can

demonstrate to the commissioner that it is precluded by state or federal

law, rule or regulation from refinancing such outstanding principal and

interest, based on the interest rates applicable for the current year if

the difference of the interest rate upon which the existing assumed

amortization is based minus such interest rate applicable for the

current year is equal to or greater than one quarter of one-one

hundredth. Provided however, in the case of assumed amortization whose

ten year segment ended prior to the two thousand seventeen--two thousand

eighteen school year the next ten year segment shall be deemed to

commence with the two thousand seventeen--two thousand eighteen school

year. The department shall notify school districts of projects subject

to the provisions of this clause by no later than December first next

preceding the school year in which the assumed amortization is scheduled

to be revised pursuant to this clause.

(d) Notwithstanding any other law, rule or regulation to the contrary,

any interest rate calculated under this subdivision shall take into

account any federal subsidy payments made or to be made to the

applicable school district or an issuer on behalf of the school district

under the terms of a federally authorized debt instrument which have the

effect of reducing the actual interest costs incurred by the school

district or an issuer on behalf of the school district over the life of

such capital debt, irrespective of any federal government right of

set-off.

(6) Notwithstanding any other provisions of this paragraph, where a

school district can demonstrate to the satisfaction of the commissioner

extenuating circumstances that a waiver is warranted for an existing

amortization or an existing lease-purchase agreement or equivalent

agreement as of the first day of July, two thousand two, the

commissioner may consult with the dormitory authority of the state of

New York and may grant a waiver consistent with guidelines developed in

consultation with the director of the division of the budget and shared

with the chairs of the senate finance committee and the assembly ways

and means committee, to make adjustments, including, but not limited to:

(i) the period of assumed amortization to equal the period of the

existing amortization, (ii) the interest rate applied to such

amortization to equal the actual average interest rate applied to the

existing amortization, and/or (iii) the annual assumed payments of debt

service to equal the aidable payments of debt service under the existing

amortization and provided further that where a school district can

demonstrate to the commissioner that it is precluded by state or federal

law, rule or regulation from refinancing such outstanding principal and

interest, clause (iii) of this subparagraph shall apply.

(7) For aid payable in the two thousand two--two thousand three school

year, school districts shall provide, on or before the fifteenth day of

January, two thousand two, such data as the commissioner shall deem

necessary to estimate the apportionment payable under assumed

amortization pursuant to subparagraph four of this paragraph, in such

form as the commissioner shall determine. Such data shall be provided

for each project for which the district will make a debt service payment

that is aidable pursuant to this subdivision in the current school year

and for each project for which such district expects to make a debt

service payment that will be aidable pursuant to this subdivision in the

following school year.

(8) Notwithstanding any other provision of the law to the contrary,

where, during the period of assumed amortization relating to a project

for the construction, acquisition, reconstruction, rehabilitation or

improvement of a school building, the school building is sold or

ownership is otherwise transferred to an entity other than the school

district or city and such transfer results in the building no longer

being operated by the school district as a public elementary or

secondary school that is not independent or autonomous, the district

shall, within sixty days of the transfer of ownership, notify the

commissioner of such sale or transfer, and shall provide such additional

information about the sale or transfer as the commissioner may require,

in a form prescribed by the commissioner, and the commissioner shall

re-compute the building aid, if any, payable for such project pursuant

to this subparagraph, except to the extent such re-computation would

conflict with the provisions of section twenty-seven hundred

ninety-nine-tt of the public authorities law. The commissioner shall

deduct the revenues received by the school district or city as a result

of such sale or transfer from the approved total project cost and, based

on such adjusted project cost, establish a new assumed amortization for

the remaining useful life of the project under the applicable provisions

of this paragraph.

f. (1) As used in this subdivision and in section thirty-six hundred

nine-a of this article the following terms shall be defined as follows:

(a) "Debt service on bond anticipation notes aidable in July following

the current year" shall mean current year debt service expenditures for

bond anticipation notes issued in the current school year.

(b) "Debt service on new bonds and capital notes aidable in July

following the current year" shall mean current year debt service

expenditures for bonds and/or capital notes issued in the current school

year.

(2) Notwithstanding any inconsistent provisions of this subdivision,

the amount of current year approved expenditure for debt service for

bond anticipation notes and for bonds and capital notes issued during

the current year for school building purposes pursuant to paragraph b of

this subdivision shall not be greater than the estimate of such

expenditures as reported to the commissioner by the school district on

or before November fifteenth of the current year. For aid payable in the

nineteen hundred ninety-six--ninety-seven school year and thereafter,

any excess of actual expenditures for such debt service for bond

anticipation notes and such bonds or capital notes incurred in the base

year, within the limitations imposed pursuant to paragraph i of this

subdivision, over such estimate of base year expenditures as reported to

the commissioner by the school district on or before November fifteenth

of the base year shall be considered approved expenditures for lease or

other annual payments under the provisions of section four hundred

three-b, subdivision eight of section twenty-five hundred three, or

subdivision six of section twenty-five hundred fifty-four of this

chapter, other than payments under a lease-purchase agreement or an

equivalent agreement, for school building purposes.

(3) (a) For the purposes of this subparagraph the following terms

shall be defined as follows:

(i) "First issue date" shall mean the date on which the school

district issued an initial obligation in the form of a bond anticipation

note, a bond or a capital note for the purpose of financing one or more

approved building projects for which a combined annual claim of aidable

debt service as defined in regulations of the commissioner, is submitted

to the commissioner.

(ii) "First contract date" shall mean the date by which: (A) the

school district certifies to the commissioner that construction

activities related to the erection, construction, reconstruction or

alteration of a school building have commenced, or that the purchase of

a school building has been made under one or more of the approved

building projects included in a combined annual claim of aidable debt

service; and (B) that one or more payments for such construction

activities or purchase, including incidental costs have been made by the

school district in a total amount equal to or greater than ten percent

of the principal value upon which the combined annual claim of aidable

debt service is based. Such certification shall be in a form and of a

content as prescribed by the commissioner.

(iii) "Principal value" shall mean the sum of the original principal

amounts of all obligations issued by the school district for the purpose

of financing one or more approved building projects for which a combined

annual claim of aidable debt service is submitted to the commissioner,

less any such principal that has been refinanced.

(iv) "Approved project cost" shall mean the sum of approved project

costs of all approved building projects for which a combined annual

claim of aidable debt service is submitted to the commissioner.

(v) "Final redemption date" shall mean the date by which the school

district will have repaid all principal borrowed for the purpose of

financing one or more approved building projects for which a combined

annual claim of aidable debt service is submitted to the commissioner.

(b) For aids payable in the two thousand--two thousand one school

year, and thereafter, notwithstanding any inconsistent provisions of

this subdivision, except for any project to which paragraph e of this

subdivision applies, the amount of approved expenditures incurred during

the current school year for debt service for bond anticipation notes,

bonds and capital notes having a related first issue date on or after

July first, two thousand shall equal the product of the actual

expenditures incurred during the current school year for debt service

for each such bond anticipation note, bond or capital note, less any

accrued interest or premiums received by the district, and the

applicable bond percent.

(c) The applicable bond percent shall equal: (i) the quotient of the

approved project cost for contracts awarded on or before June thirtieth

of the current school year divided by the principal value, or (ii) if

the first issue date is more than ninety days prior to the first

contract date, the product of: (A) one minus the quotient of the number

of days elapsed between the first issue date and the first contract date

divided by the number of days elapsed between the first issue date and

the final redemption date and (B) the quotient of the approved project

cost for contracts awarded on or before June thirtieth of the current

school year divided by the principal value, provided that, if upon

review of documentation submitted by a school district the commissioner

determines that the debt was issued by a city having a population of one

hundred twenty-five thousand or more, as part of a mixed borrowing

including both school purposes and other municipal purposes or, that a

school district, due to circumstances beyond its control, issued bond

anticipation notes, bonds or capital notes more than ninety days prior

to the first contract date, the commissioner may compute the applicable

bond percent pursuant to item (i) of this clause. The applicable bond

percent shall be expressed as a decimal to five places without rounding.

g. Eligibility criteria for aid for refunding of bonds. (1) To be

eligible for any apportionment of aid pursuant to this subdivision for

approved expenditures for the refunding of bonds to refinance school

construction, reconstruction or purchase of existing structures or for

expenditures incidental to such refunding of bonds the following

requirements shall be met:

(i) the refunding shall be in accordance with section 90.10 of the

local finance law;

(ii) the bonds to be refunded shall have been issued exclusively to

finance school construction, reconstruction or purchase of existing

structures;

(iii) the issuance of refunding bonds shall result in a net present

value savings to both the school district and the state, provided,

however, that the gross dollar savings over the life of the bond shall

exceed the approved fees and other charges of refinancing as defined in

subparagraph one of paragraph h of this subdivision, except in the case

of the refunding of bonds with unpaid principal outstanding as of the

first day of July, two thousand two subject to assumed amortization

pursuant to subparagraph four of paragraph e of this subdivision, for

facilities eligible for building aid, and for which the annual aid

apportionment payable in the two thousand two--two thousand three and

two thousand three--two thousand four school years for approved

expenditures for debt service are subsequently reduced as a result of

the application of assumed amortization to such unpaid principal; and

(iv) for any refunding of bonds for which a refunding bond resolution

is approved after April first, nineteen hundred ninety-four, the board

of education or trustees shall certify that the intention of the school

district to accept proposals for the refunding of bonds has been

announced in at least one regular public meeting of such board and that

all such proposals received have been discussed in a second public

meeting of the board held no sooner than fourteen days after such

announcement.

(2) For the purposes of subparagraph three of this paragraph, approved

expenditures for the refunding of bonds shall mean any amount included

in the principal of the refunding bond issue of a school district, or of

the dormitory authority of the state of New York to refund obligations

of a school district for purposes of subparagraph four of paragraph e of

this subdivision, that represents the unmatured interest on the bonds to

be refunded to and including either the date or dates such bonds were to

mature or the date or dates set for redemption prior to their

maturities, plus the redemption premiums, if any, payable on the bonds

to be refunded on the redemption date or dates, plus the approved fees

and other charges of refinancing as defined in subparagraph one of

paragraph h of this subdivision.

(3) Approved expenditures for the refunding of bonds as defined in

subparagraph two of this paragraph shall be excluded from the

calculation of any ratio of allowable expense to principal that may be

used to determine approved debt service expense.

h. Additional apportionment of building aid for approved fees and

other charges and expenses related to the issuance of refinancing bonds.

(1) For the purposes of this subdivision approved fees and other charges

of refinancing shall include the costs and expenses incidental to the

issuance of refunding bonds by a school district, or by the dormitory

authority of the state of New York to refund obligations of a school

district for purposes of subparagraph four of paragraph e of this

subdivision, which are eligible for an apportionment pursuant to

paragraph g of this subdivision, the costs of the development of the

refunding financial plan and of executing and performing the terms and

conditions of the escrow contract and all fees and charges of the escrow

holders.

(2) Notwithstanding any inconsistent provisions of this subdivision,

school districts shall also be eligible for an apportionment pursuant to

this subdivision in an amount equal to the product of the aid ratio used

for building aid in the current year as defined in paragraph c of this

subdivision and the base year approved fees and other charges of

refinancing as defined in subparagraph one of this paragraph, but only

to the extent such costs and expenses are not paid from the proceeds of

the refunding bonds and are not otherwise eligible for aid pursuant to

this subdivision, provided however, that in the case of the refunding of

bonds subject to an assumed amortization pursuant to subparagraph four

of paragraph e of this subdivision for facilities which were eligible

for building aid, provided that such refunding bonds are issued on or

before the first day of July, two thousand five and for which the annual

aid apportionment payable in the two thousand two--two thousand three

and/or two thousand three--two thousand four school years for approved

expenditures for debt service are subsequently reduced as a result of

the application of assumed amortization to unpaid principal outstanding

as of July first, two thousand two, and further provided that the gross

dollar savings over the life of the bond shall be less than the approved

fees and other charges of refinancing as defined in subparagraph one of

this paragraph, such apportionment shall be equal to such base year

approved fees and other charges of refinancing, but only to the extent

such costs and expenses are not paid from the proceeds of the refunding

bonds and are not otherwise eligible for aid pursuant to this

subdivision.

i. Approved expenditures for debt service. (1) Bond anticipation

notes. Except as otherwise provided in subparagraph four of this

paragraph, for purposes of the apportionment payable pursuant to this

subdivision in the nineteen hundred ninety-six--ninety-seven school year

and thereafter to a school district other than to the city school

district of the city of New York, except for any project to which

paragraph e of this subdivision applies, approved expenditures for debt

service on bond anticipation notes relating to the construction,

acquisition, reconstruction, rehabilitation or improvement of any school

building, including but not limited to the balance of principal

outstanding as of July first, nineteen hundred ninety-six which was

funded during the nineteen hundred ninety-five--ninety-six school year

from proceeds of the sale of bond anticipation notes by a school

district, shall mean actual approved expenditures for principal and

interest related to the financing of a school construction project

through bond anticipation notes; except that:

(i) such expenditures shall not include expenditures for principal on

such notes during the first twenty-three months following the original

issuance of such notes; and

(ii) such expenditures shall not include expenditures for principal or

interest on bond anticipation notes issued or reissued after the

issuance of a certificate of substantial completion for such project, or

expenditures for principal made during the school year in excess of the

minimum principal payment required under the local finance law.

(2) Bonds and capital notes. (i) For purposes of the apportionment

payable pursuant to this subdivision in the nineteen hundred

ninety-six--ninety-seven school year and thereafter to a school district

other than to the city school district of the city of New York, approved

expenditures for debt service on bonds, capital notes and any other

long-term local obligations relating to the construction, acquisition,

reconstruction, rehabilitation or improvement of any school building,

shall mean actual approved expenditures for principal and interest

related to the financing of a school construction project through such

local obligations except as provided pursuant to clause (ii) of this

subparagraph or subparagraph four of this paragraph or paragraph e of

this subdivision; provided that, to be eligible for aid on debt service

pursuant to this subdivision, such bonds, capital notes or other local

obligations issued on or after August first, nineteen hundred

ninety-six, or, in the case of a small city school district, on or after

November fifteenth, nineteen hundred ninety-six, shall provide for

substantially level debt service or principal as defined in paragraph d

of section 21.00 of the local finance law; and

(A) be amortized for a period of not less than fifteen years,

including any period of amortization on related bond anticipation notes,

in the case of local obligations issued to finance new construction and

the purchase of existing structures; or

(B) be amortized for a period of not less than ten years, including

any period of amortization on related bond anticipation notes, in the

case of local obligations issued to finance the reconstruction,

rehabilitation or improvement of existing school buildings.

(ii) Notwithstanding any inconsistent provisions of this clause, any

actual principal or interest expenditures related to the issuance of a

local obligation to finance new construction for a term of less than

fifteen years or reconstruction for a term of less than ten years, as

specified in clause (i) of this subparagraph, shall not be used in the

calculation of the apportionment payable pursuant to this subdivision,

provided, however, that aidable approved expenditures for debt service

shall be calculated pursuant to the provisions of this clause, as

follows:

(A) for new construction and the purchase of existing structures,

current year approved expenditures for debt service shall mean

expenditures for principal and interest expense that would be incurred

during the current year based on an assumed amortization for a period of

fifteen years, or the actual term of the obligation issued by the school

district, whichever is greater, of any outstanding principal and/or

principal payments not previously aided at the time of issue of the

obligation that represents costs approved by the commissioner including

any period of amortization on related bond anticipation notes. Such

assumed amortization shall commence with the date of the award of a

general contract by the school district for such new construction or

purchase, the date the district was placed on assumed amortization by

the commissioner, or the date upon which the district selected an

assumed amortization pursuant to subparagraph four of this paragraph,

whichever shall last occur, and shall be based on an assumed rate of

annual interest applied to such amortization, as determined by the

commissioner pursuant to subparagraph three of this paragraph for the

month in which a general contract is awarded for such project; and

(B) for reconstruction, rehabilitation or improvement of existing

school buildings, current year approved expenditures for debt service

shall mean expenditures for principal and interest expense that would be

incurred during the current year based on an assumed amortization for a

period of ten years, or the actual term of the obligation issued by the

school district, whichever is greater, of any outstanding principal

and/or principal payments not previously aided that represents costs

approved by the commissioner including any period of amortization on

related bond anticipation notes. Such assumed amortization shall

commence with the date of the award of a general contract by the school

district for such new construction or purchase, the date the district

was placed on actual amortization by the commissioner, or the date upon

which the district selected an assumed amortization pursuant to

subparagraph four of this paragraph, whichever shall last occur, and

shall be based on an assumed rate of annual interest applied to such

amortization, as determined by the commissioner pursuant to subparagraph

three of this paragraph for the month in which a general contract is

awarded for such project.

(3) By the fifteenth day of each month, beginning on August fifteenth,

nineteen hundred ninety-six, the commissioner shall determine the

prevailing interest rate for the preceding month based on a nationally

recognized and accepted index of municipal bond yields reported for such

preceding month, in accordance with a methodology prescribed by the

commissioner and approved by the director of the budget.

(4) Notwithstanding any other provision of this paragraph to the

contrary, in the case of projects eligible for an apportionment pursuant

to subparagraph one of this paragraph during the nineteen hundred

ninety-six--ninety-seven school year, and projects of small city school

districts whether or not eligible for such an apportionment during such

school year, for the purpose of the apportionment payable pursuant to

this subdivision or subdivision six-b of this section during the

nineteen hundred ninety-six--ninety-seven school year and thereafter to

a school district other than to the city school district of the city of

New York, for the construction, acquisition, reconstruction,

rehabilitation or improvement of a school building, such school district

shall have the option of selecting to receive aid based on actual

expenditures pursuant to subparagraph one or clause (i) of subparagraph

two of this paragraph; or based on an assumed amortization pursuant to

clause (ii) of subparagraph two of such paragraph. Such selection shall

be made on or before the time of submission of a project to the

commissioner for final approval or November fifteenth, nineteen hundred

ninety-seven, whichever shall occur later. Provided, however, any such

school district selecting to receive aid based on actual expenditures

pursuant to subparagraph one or clause (i) of subparagraph two of this

paragraph, but not meeting all requirements of such provisions, shall

have their aid for debt service computed under an assumed amortization

pursuant to clause (ii) of subparagraph two of this paragraph, and

provided further that any adjustments resulting from a required

computation under clause (ii) of subparagraph two of this paragraph

shall apply to the next payment due for such project.

(5) Notwithstanding any inconsistent provisions of this paragraph, for

the purpose of calculating an apportionment pursuant to this

subdivision:

(i) current approved expenditures for debt service for energy

performance contracts authorized pursuant to section 9-103 of the energy

law shall mean approved debt service incurred by a school district under

such contract during the current school year related to the financing of

such construction, acquisition, reconstruction, rehabilitation or

improvement of any school building, provided that as a condition of

eligibility for aid:

A. The amortization period shall not exceed the term of the energy

performance contract.

B. Any state building aid attributable to such project shall be

excluded in determining the cost savings under the energy performance

contract.

C. The energy performance contractor shall guarantee recovery of

contract costs from energy savings realized by the school district

during the term of the energy performance contract, which shall not

exceed eighteen years.

(ii) notwithstanding any inconsistent provisions of this paragraph,

for aid payable in the two thousand two--two thousand three school year

and thereafter, approved expenditures for debt service for energy

performance contracts shall be based on assumed amortization where

required by paragraph e of this subdivision.

(iii) current year approved expenditures for debt service for the

purchase of computer equipment shall mean expenditures for principal and

interest expense incurred by a school district during the current year

for financing of the purchase of computer equipment eligible for aid

pursuant to paragraph b of this subdivision, provided that the payment

of aid shall be based on an assumed period of amortization which shall

equal the period of probable usefulness applicable to the acquisition of

such equipment under section 11.00 of the local finance law and on an

assumed rate of annual interest determined pursuant to subparagraph

three of this paragraph for the month in which the purchase contract was

executed; and

(iv) current year approved expenditures for debt service for any other

expenditures that are aidable pursuant to this subdivision and involve

an object or purpose for which the period of probable usefulness under

section 11.00 of the local finance law is less than ten years shall mean

expenditures for principal and interest expense incurred by a school

district during the current year for the contracting of indebtedness for

such object or purpose, provided that the payment of aid shall be based

on an assumed period of amortization equal to such period of probable

usefulness and on an assumed rate of annual interest determined pursuant

to subparagraph three of this paragraph for the month in which the

financing agreement was executed.

j. Assumed amortization for capital outlays. For aid payable in the

two thousand three--two thousand four school year and thereafter, the

apportionment to a school district for approved expenditures for capital

outlays from its general fund, capital fund or reserved funds pursuant

to this subdivision shall be based upon an assumed amortization

established pursuant to the applicable provisions of subparagraph two,

three, or four of paragraph e of this subdivision, as modified by this

paragraph, whether or not the school district issues debt for such

expenditures. Notwithstanding any provisions of subparagraph two, three,

or four of paragraph e of this subdivision to the contrary:

(1) For approved expenditures for capital outlay incurred by the city

school district of the city of New York on or after July first, two

thousand two that are related to projects for which a general

construction contract was first awarded by the school construction

authority of the city of New York, or by another body or official

designated by law, prior to the first day of July, two thousand two,

such amortization shall commence (i) eighteen months after January

first, two thousand three; or (ii) on the date of receipt by the

commissioner of a certification by the district that a general

construction contract has been awarded for such project, whichever is

later; and the quotient, calculated to the nearest whole dollar without

rounding, of (A) the positive remainder of the approved expenditures of

such project to be funded through capital outlay less the total amount

of approved expenditures for capital outlay incurred before July first,

two thousand two, divided by (B) the positive remainder, computed to the

nearest year without rounding, of the new term of the assumed

amortization established pursuant to item (ii) of clause (b) of

subparagraph two of paragraph e of this subdivision as of July first,

two thousand three, less twelve months shall be deemed to be the current

year approved expenditures for debt service for the purposes of such

paragraph.

(2) Approved expenditures for capital outlay incurred by the city

school district of the city of New York that are related to projects for

which a general construction contract was first awarded on or after the

first day of July, two thousand two, shall be deemed approved

expenditures for debt service included in the assumed amortization for

the project pursuant to subparagraph two of paragraph e of this

subdivision.

(3) For approved expenditures for capital outlay incurred by a school

district other than the city school district of the city of New York on

or after July first, two thousand two that are related to projects

approved by the commissioner prior to the first day of July, two

thousand two, such amortization shall commence: (i) eighteen months

after January first, two thousand three; or (ii) on the date of receipt

by the commissioner of a certification by the district that a general

construction contract has been first awarded for such project by the

district, whichever is later, and the quotient, calculated to the

nearest whole dollar without rounding, of (A) the positive remainder of

the approved cost of such project to be funded through capital outlay

less the total amount of approved expenditures for capital outlay

incurred before July first, two thousand two, divided by (B) the

positive remainder, computed to the nearest year without rounding, of

the remaining maximum useful life of the project as determined by the

commissioner pursuant to item (i) of clause (a) of subparagraph four of

paragraph e of this subdivision as of July first, two thousand one, less

twelve months, shall be deemed to be the current year approved

expenditures for debt service for the purposes of such paragraph.

(4) Approved expenditures for capital outlay incurred by a school

district other than the city school district of the city of New York

that are related to projects approved by the commissioner on or after

the first day of July, two thousand two, shall be deemed approved

expenditures for debt service included in an assumed amortization for

the project pursuant to subparagraph three of paragraph e of this

subdivision.

k. Final cost report penalties. (1) All acts done and proceedings

heretofore had and taken, or caused to be had and taken, by school

districts and by all its officers or agents relating to or in connection

with final building cost reports required to be filed with the

commissioner for approved building projects for which a certificate of

substantial completion was issued on or after April first, nineteen

hundred ninety-five, and where a final cost report was not submitted by

June thirtieth of the school year in which the certificate of

substantial completion of the project was issued by the architect or

engineer, or six months after issuance of such certificate, whichever

was later, and all acts incidental thereto are hereby legalized,

validated, ratified and confirmed, notwithstanding any failure to comply

with the approval and filing provisions of the education law or any

other law or any other statutory authority, rule or regulation, in

relation to any omission, error, defect, irregularity or illegality in

such proceedings had and taken.

(2) The commissioner is hereby directed to consider the approved costs

of the aforementioned projects as valid and proper obligations of such

school districts and shall not recover on or after July first, two

thousand thirteen any penalty arising from the late filing of a final

cost report, provided that any amounts already so recovered on or after

July first, two thousand thirteen shall be deemed a payment of moneys

due for prior years pursuant to paragraph c of subdivision five of

section thirty-six hundred four of this part and shall be paid to the

appropriate district pursuant to such provision, provided that:

(a) such school district submitted the late or missing final building

cost report to the commissioner;

(b) such cost report is approved by the commissioner;

(c) all state funds expended by the school district, as documented in

such cost report, were properly expended for such building project in

accordance with the terms and conditions for such project as approved by

the commissioner; and

(d) the failure to submit such report in a timely manner was an

inadvertent administrative or ministerial oversight by the school

district, and there is no evidence of any fraudulent or other improper

intent by such district.

6-a. Additional apportionments of building aid for school districts

educating pupils residing on Indian reservations. In addition to the

apportionments made to a school district under the provisions of

subdivision six of this section, the commissioner is hereby authorized

to apportion to any school district, which the commissioner deems to be

providing educational services for a significant number of pupils

residing on an Indian reservation, an amount calculated by the

commissioner to represent the actual per pupil cost within the cost

allowance assigned to Indian pupils as the contribution of the state on

behalf of pupils residing on an Indian reservation. Such apportionment

shall be payable after approval by the commissioner of final plans for a

construction project approved by the commissioner for such purpose. Any

such apportionment shall be made upon such terms and conditions as the

commissioner shall approve.

6-b. Building aid for joint facilities. a. Two or more school

districts eligible for operating aid pursuant to this section, other

than a city school district in a city with one hundred twenty-five

thousand inhabitants or more, that enter into an agreement in accordance

with section one hundred nineteen-o of the general municipal law and

this subdivision, may receive building aid pursuant to this subdivision

for approved expenditures for the construction or reconstruction of one

or more single site joint facilities. To be eligible for such aid, the

general contracts for the project shall have been awarded on or after

July first, nineteen hundred ninety-three, and the project and joint

agreement shall have been approved by the commissioner. For

participating school districts in which the school budget is subject to

voter approval, the joint agreement shall be subject to voter approval.

b. To be eligible for building aid for the joint facility, the joint

agreement shall designate the board of education of the school district

in which such single site joint facility will be located as the lead

district, provided that where such facility will occupy adjoining sites

in more than one participating district any district in which a part of

the facility is situated may be designated as the lead district.

Notwithstanding any other provision of law, the lead district shall be

authorized to contract indebtedness for the purpose of the joint project

pursuant to the local finance law as if the entire project was conducted

solely by the lead district. The joint agreement shall designate the

district or districts that will operate, maintain and/or manage the

joint facility. The lead district shall serve as fiscal agent for all

participating districts for the purpose of claiming and receiving

building aid pursuant to subdivision six of this section. The joint

agreement shall include a lease agreement between the lead district and

all other participating districts whereby all parties agree to lease the

facility for a term not less than the period within which all bonds or

notes issued to finance the project will mature. Participating districts

shall not be eligible for an apportionment pursuant to any provision of

this chapter for any lease expense incurred for the joint facility and

such expense shall not be included in the approved operating expense of

any such district, provided, however, that nothing shall prohibit the

inclusion of a district's share of the net administrative, operation and

maintenance costs of the joint project in the district's approved

operating expense. The joint agreement shall provide for a credit of the

state aid received by the lead district for the joint project against

the expenses of such project and shall provide a method of allocating

the net cost of the joint facility to the participating districts,

distributing (i) the gross cost based on each district's share of the

use of the facility, and (ii) the state aid based on each district's aid

ratio and use-share of the aidable expense.

c. Upon approval of the joint agreement, the lead district shall be

eligible for an apportionment pursuant to subdivision six of this

section as if the joint project was conducted solely by such lead

district; provided, however, that the building aid ratio used in

computing such aid shall be the sum of the product for each of the

participating districts of the district's building aid ratio selected

pursuant to paragraph c of subdivision six of this section for aid

payable in the current year multiplied by the district's share of the

use of the facility.

d. Where the lead district reorganizes with some or all other

districts participating in the joint agreement subsequent to approval of

the joint agreement, such reorganized district shall be eligible for

reorganization incentive aid pursuant to subparagraph one of paragraph c

as modified by paragraph i, both of subdivision fourteen of this section

for expenditures for any debt service for indebtedness outstanding after

the effective date of such reorganization that were incurred for the

financing of construction of the joint facility so long as such facility

continues to be used by such reorganized district, as if the joint

facility had been constructed by the reorganized district subsequent to

reorganization.

e. Notwithstanding the provisions of section thirty-six hundred nine-a

of this article, aid for joint projects shall be paid in accordance with

a schedule established by the commissioner and approved by the director

of the budget.

6-c. a. Building aid for metal detectors, and safety devices for

electrically operated partitions, room dividers and doors. In addition

to the apportionments payable to a school district pursuant to

subdivision six of this section, the commissioner is hereby authorized

to apportion to any school district additional building aid pursuant to

this subdivision for its approved expenditures in the base year for the

purchase of stationary metal detectors, security cameras, safety devices

for electrically operated partitions and room dividers required pursuant

to section four hundred nine-f of this chapter, or other security

devices approved by the commissioner that increase the safety of

students and school personnel, provided, however, that funds apportioned

to school districts pursuant to this section shall not supplant funds

for existing district expenditures or for existing contractual

obligations of the district for stationary metal detectors, security

cameras, partition and room divider safety devices, or security devices.

Portable or hand held metal detectors shall not be eligible for aid

pursuant to this subdivision. Such additional aid shall equal the

product of the building aid ratio computed for use in the current year

pursuant to paragraph c of subdivision six of this section and the

actual approved expenditures incurred in the base year pursuant to this

subdivision, provided that the limitations on cost allowances prescribed

by paragraph a of subdivision six of this section shall not apply. The

commissioner shall annually prescribe a special cost allowance for metal

detectors, and security cameras, and the approved expenditures shall not

exceed such cost allowance. The commissioner shall annually prescribe a

special cost allowance for partition and room divider safety devices,

and the approved expenditures shall not exceed such cost allowance.

b. For projects approved by the commissioner authorized to receive

additional building aid pursuant to this subdivision for the purchase of

stationary metal detectors, security cameras or other security devices

approved by the commissioner that increase the safety of students and

school personnel, provided that for purposes of this paragraph such

other security devices shall be limited to electronic security systems

and hardened doors, and provided that for projects approved by the

commissioner on or after the first day of July two thousand thirteen

such additional aid shall equal the product of (i) the building aid

ratio computed for use in the current year pursuant to paragraph c of

subdivision six of this section plus ten percentage points, except that

in no case shall this amount exceed one hundred percent, and (ii) the

actual approved expenditures incurred in the base year pursuant to this

subdivision, provided that the limitations on cost allowances prescribed

by paragraph a of subdivision six of this section shall not apply, and

provided further that any projects aided under this paragraph must be

included in a district's school safety plan. The commissioner shall

annually prescribe a special cost allowance for metal detectors, and

security cameras, and the approved expenditures shall not exceed such

cost allowance.

6-e. Additional apportionment of building aid for building condition

surveys of school buildings. In addition to the apportionments payable

to a school district pursuant to subdivision six of this section, the

commissioner is hereby authorized to apportion to any school district

additional building aid in accordance with this subdivision for its

approved expenses in the base year for building condition surveys of

school buildings that are conducted pursuant to this subdivision and

subdivision four of section thirty-six hundred forty-one of this

article. The amount of such apportionment shall equal the product of the

building aid ratio defined pursuant to paragraph c of subdivision six of

this section and the actual approved expenses incurred by the district

in the base year for each school building so inspected, provided that

the amount of such apportionment shall not exceed the building condition

survey aid ceiling. For surveys conducted in the nineteen hundred

ninety-eight--ninety-nine school year, the building condition aid

ceiling shall be twenty cents gross per square foot of floor area. For

surveys conducted in the nineteen hundred ninety-nine--two thousand

school year and thereafter, the inspection aid ceiling shall be twenty

cents gross per square foot of floor area, plus an amount computed by

the commissioner in accordance with regulations adopted for such

purpose, on the basis of an index number reflecting changes in the costs

of labor and materials from July first, nineteen hundred ninety-eight.

6-f. Additional apportionment of building aid for certain projects. a.

In addition to the apportionment payable to a school district pursuant

to subdivision six of this section, the commissioner is hereby

authorized to apportion to any school district additional building aid

in the amount equal to the product of its approved expenditures in the

base year for capital outlays from the district's general fund, capital

fund or reserved funds that are incurred on or after July first, two

thousand two for an eligible school construction project as defined in

paragraph b of this subdivision, and the district's applicable building

aid ratio as defined pursuant to paragraph c of subdivision six of this

section. Approved expenditures for capital outlays for eligible school

construction projects that are eligible for an apportionment pursuant to

this subdivision shall not be eligible for aid pursuant to subdivision

six of this section.

b. For the purposes of this subdivision, an "eligible school

construction project" shall mean a school construction project that is

entirely funded from capital outlays and:

(1) has a total project cost of one hundred thousand dollars or less;

provided however, that for any district, no more than one project shall

be eligible pursuant to this subparagraph for an apportionment within

the same school year; and/or

(2) is a construction emergency project to remediate emergency

situations which arise in public school buildings and threaten the

health and/or safety of building occupants, as a result of the

unanticipated discovery of asbestos or other hazardous substances during

construction work on a school or significant damage caused by a fire,

snow storm, ice storm, excessive rain, high winds, flood or a similar

catastrophic event which results in the necessity for immediate repair.

6-g. Charter schools facilities aid. a. The city school district of

the city of New York, upon documenting that it has incurred total

aggregate expenses of forty million dollars or more pursuant to

subparagraph five of paragraph (e) of subdivision three of section

twenty-eight hundred fifty-three of this chapter, shall be eligible for

an apportionment pursuant to this subdivision for its annual approved

expenditures for the lease of space for charter schools incurred in the

base year in accordance with paragraph (e) of subdivision three of

section twenty-eight hundred fifty-three of this chapter.

b. The apportionment shall equal the product of (1) the sum of:

for aid payable for expenses incurred pursuant to subparagraph five of

paragraph (e) of subdivision three of section twenty-eight hundred

fifty-three of this chapter where the charter school prevails on appeal,

the annual approved expenses incurred by the city school district

pursuant to such subparagraph five multiplied by

(2) six-tenths.

c. For purposes of this subdivision, the approved expenses

attributable to a lease by a charter school of a privately owned site

shall be the lesser of the actual rent paid under the lease or the

maximum cost allowance established by the commissioner for leases

aidable under subdivision six of this section.

d. Notwithstanding any provision of law to the contrary, amounts

apportioned pursuant to this subdivision shall not be included in: (1)

the allowable growth amount computed pursuant to paragraph dd of

subdivision one of this section, (2) the preliminary growth amount

computed pursuant to paragraph ff of subdivision one of this section,

and (3) the allocable growth amount computed pursuant to paragraph gg of

subdivision one of this section, and shall not be considered, and shall

not be available for interchange with, general support for public

schools.

6-h. Building aid for testing and filtering of potable water systems

for lead contamination. In addition to the apportionments payable to a

school district pursuant to subdivision six of this section, the

commissioner is hereby authorized to apportion to any school district

additional building aid pursuant to this subdivision for its approved

expenditures, otherwise ineligible for building aid, in the base year

for the testing of potable water systems required pursuant to section

eleven hundred ten of the public health law, provided that such expenses

for testing of potable water systems are not reimbursable from another

state or federal source. The commissioner is also authorized to

apportion to any school district additional building aid pursuant to

this subdivision for its approved expenditures, otherwise ineligible for

building aid, in the base year for the installation of filters and/or

other effective remedial measures for immediate remediation in cases

where a finding of lead contamination is made pursuant to such section

and verified by confirmatory sampling, provided that the cost of

installation of such filters and/or other effective remedial measures

shall be deemed an approved expenditure only if (i) such installation

and/or other effective remedial measures have been approved or reviewed

by a professional with expertise in the field of water quality and

remediation and (ii) such cost is incurred prior to July first, two

thousand nineteen. Such aid shall equal the product of the building aid

ratio defined pursuant to paragraph c of subdivision six of this section

and the actual approved expenditures incurred in the base year pursuant

to this subdivision. Commencing in the two thousand nineteen--two

thousand twenty school year and every year thereafter, additional

building aid pursuant to this subdivision shall include approved

expenses for testing of potable water systems for lead contamination

pursuant to section eleven hundred ten of the public health law,

provided that such expenses for testing of potable water systems are not

reimbursable from another state or federal source.

6-i. Building aid and the New York state energy research and

development authority P-12 schools: clean green schools initiative. 1.

For aid payable in the school years two thousand twenty-two--two

thousand twenty-three and thereafter, notwithstanding any provision of

law to the contrary, the apportionment to any district under subdivision

six, six-a, six-b, six-c, six-e, six-f, or six-h of this section for

capital outlays for school building projects for energy efficiency shall

not exclude grants authorized pursuant to the New York state energy

research and development authority P-12 schools: clean green schools

initiative from aidable expenditures, provided that the sum of

apportionments for these projects calculated pursuant to subdivision

six, six-a, six-b, six-c, six-e, six-f, or six-h of this section and

such grants shall not exceed the actual project expenditures.

2. The New York state energy research and development authority shall

provide a list of energy efficiency grants awarded to each school

district to the commissioner no later than one month prior to the end of

each calendar year and each school year. This list shall include the

capital construction project or projects funded by the grants, the award

amounts of each individual project grant, the district receiving such

grants, the schools receiving such grants, the date on which the grant

was received, and any other information necessary for the calculation of

aid pursuant to subdivision six, six-a, six-b, six-c, six-e, six-f, or

six-h of this section.

7. Apportionment for pupil transportation. a. In addition to the

foregoing apportionment, there shall be apportioned to any school

district for pupil transportation, the lesser of ninety per centum or

the state share of its approved transportation expense for the base

year. The state share shall equal the sum of the transportation sparsity

adjustment and the transportation aid ratio, but not less than six and

one-half percent. The transportation aid ratio shall equal the greater

of (i) the product of one and two hundred sixty-three thousandths

multiplied by the state sharing ratio, (ii) an aid ratio computed by

subtracting from one and one hundredth the product computed to three

decimals without rounding obtained by multiplying the resident weighted

average daily attendance wealth ratio by forty-six percent, where such

aid ratio shall be expressed as a decimal carried to three places

without rounding or (iii) excluding cities with a population of more

than one million, an aid ratio computed by subtracting from one and one

hundredth the product computed to three decimal places without rounding

obtained by multiplying the number computed to three decimals without

rounding obtained when the quotient of actual valuation of a school

district, as defined in paragraph c of subdivision one of this section,

divided by the sum of the resident public school district enrollment,

the resident nonpublic school district enrollment and the additional

public school enrollment of the school district for the year prior to

the base year is divided by the statewide average actual valuation per

the sum of such total resident public school district enrollment,

nonpublic school district enrollment and additional public school

enrollment of all school districts eligible for an apportionment

pursuant to this section except central high school districts as

computed by the commissioner using the latest single year actual

valuation computed under paragraph c of subdivision one of this section,

by forty-six percent, where such ratio shall be expressed as a decimal

carried to three decimal places without rounding. The computation of

such statewide average shall include the actual valuation of all school

districts eligible for an apportionment pursuant to this section except

central high school districts. The transportation sparsity adjustment

shall equal the quotient of: the positive remainder of twenty-one minus

the district's public school enrollment for the year prior to the base

year per square mile, divided by three hundred seventeen and

eighty-eight hundredths. Approved transportation expense shall be the

sum of the approved transportation operating expense and the approved

transportation capital, debt service and lease expense of the district.

Approved transportation expense shall not be aidable pursuant to section

nineteen hundred fifty of this chapter.

b. (1) For the purposes of this apportionment, approved transportation

operating expense shall be the actual expenditure incurred by a school

district and approved by the commissioner (i) for those items of

transportation operating expense allowable under subdivision one of

section thirty-six hundred twenty-three-a of this article for regular

aidable transportation of pupils as such terms are defined in sections

thirty-six hundred twenty-one and thirty-six hundred twenty-two-a of

this article, and (ii) for those items of transportation operating

expense allowable under subdivision one of section thirty-six hundred

twenty-three-a of this article for the transportation required or

authorized pursuant to article eighty-nine of this chapter, and (iii)

for providing monitors on school buses for students with disabilities,

and (iv) for transportation operating expenses allowable under section

thirty-six hundred twenty-three-a of this article for the transportation

of homeless children authorized by paragraph c of subdivision four of

section thirty-two hundred nine of this chapter, provided that the total

approved cost of such transportation shall not exceed the amount of the

total cost of the most cost-effective mode of transportation.

(2) Notwithstanding any inconsistent provisions of this article, in

computing the apportionment payable to a school district in a city with

a population in excess of one million inhabitants pursuant to this

subdivision, approved transportation expense for public service

transportation shall not include any expenditures to the New York City

Metropolitan Transportation Authority for public service transportation

nor shall such expense be included in approved operating expense.

c. For the purposes of computing this apportionment for the two

thousand five--two thousand six school year and thereafter, approved

transportation capital, debt service, and lease expense shall be the

amount computed based upon an assumed amortization determined pursuant

to paragraph e of this subdivision for an expenditure incurred by a

school district and approved by the commissioner for those items of

transportation capital, debt service and lease expense allowable under

subdivision two of section thirty-six hundred twenty-three-a of this

article for: (i) the regular aidable transportation of pupils, as such

terms are defined in sections thirty-six hundred twenty-one and

thirty-six hundred twenty-two-a of this article, (ii) the transportation

of children with disabilities pursuant to article eighty-nine of this

chapter, and (iii) the transportation of homeless children pursuant to

paragraph c of subdivision four of section thirty-two hundred nine of

this chapter, provided that the total approved cost of such

transportation shall not exceed the amount of the total cost of the most

cost-effective mode of transportation. Approvable expenses for the

purchase of school buses shall be limited to the actual purchase price,

or the expense as if the bus were purchased under state contract,

whichever is less. If the commissioner determines that no comparable bus

was available under state contract at the time of purchase, the

approvable expenses shall be the actual purchase price or the state wide

median price of such bus in the most recent base year in which such

median price was established with an allowable year to year CPI increase

as defined in subdivision fourteen of section three hundred five of this

chapter; whichever is less. Such median shall be computed by the

commissioner for the purposes of this subdivision.

d. In determining approved transportation operating expense for

district-owned transportation and approved transportation capital, debt

service and lease expense pursuant to paragraphs b, c and e of this

subdivision and part two of this article, the commissioner shall make a

deduction from the total transportation expense for the transportation

of nonallowable pupils, and for that portion of the total annual mileage

of district-owned school buses that is not aidable because it is not

included in the total annual allowable mileage as defined in section

thirty-six hundred twenty-one of this article, provided that such

calculations shall be made pursuant to regulations of the commissioner,

and further provided that such regulations shall provide for an

exclusion of pupil miles for transportation provided on a

space-available basis to pupils attending an approved universal

prekindergarten program pursuant to section thirty-six hundred two-e of

this article that does not result in additional transportation costs.

e. In determining approved transportation capital, debt service and

lease expense for aid payable in the two thousand five--two thousand six

school year and thereafter, the commissioner, after applying the

provisions of paragraph c of this subdivision to such expense, shall

establish an assumed amortization pursuant to this paragraph to

determine the approved capital, debt service and lease expense of the

school district that is aidable in the current year, whether or not the

school district issues debt for such expenditures, subject to any

deduction pursuant to paragraph d of this subdivision. Such assumed

amortization shall be for a period of five years, and for the two

thousand twenty-two--two thousand twenty-three school year and

thereafter such assumed amortization for zero-emission school buses as

defined in section thirty-six hundred thirty-eight of this article and

related costs pursuant to paragraph f of subdivision two of section

thirty-six hundred twenty-three-a of this article shall be for a period

of eight years, and shall commence twelve months after the school

district enters into a purchase contract or lease of the school bus,

charging station, hydrogen fueling station, or equipment, or a general

contract for the construction, reconstruction, lease or purchase of a

transportation storage facility or site in an amount less than ten

thousand dollars. Such assumed amortization shall provide for equal

semiannual payments of principal and interest based on an assumed

interest rate established by the commissioner pursuant to this

paragraph. By the first day of September of the current year commencing

with the two thousand five--two thousand six school year, each school

district shall provide to the commissioner in a format prescribed by the

commissioner such information as the commissioner shall require for all

capital debt incurred by such school district during the preceding

school year for expenses allowable pursuant to subdivision two of

section thirty-six hundred twenty-three-a of this article. Based on such

reported amortizations and a methodology prescribed by the commissioner

in regulations, the commissioner shall compute an assumed interest rate

that shall equal the average of the interest rates applied to all such

debt issued during the preceding school year. The assumed interest rate

shall be the interest rate of each such school district applicable to

the current year for the purposes of this paragraph and shall be

expressed as a decimal to five places rounded to the nearest eighth of

one-one hundredth.

8. a. Program approval requirements. Any school district receiving an

additional apportionment pursuant to subdivision ten of this section for

pupils in career education programs or a payment in lieu of such

apportionment or having a public excess cost aid setaside pursuant to

subdivision four of this section shall use the total funds attributable

to such pupils for locally administered programs for such pupils in

accordance with regulations issued by the commissioner. Such regulations

shall provide for the use of such funds in the manner determined by the

commissioner to be the most educationally advantageous for such pupils.

The commissioner shall require the submission of such reports as are

necessary to assure accountability for the use of such funds. A district

which spends any part of its total annual apportionment attributable to

such pupils in an unauthorized manner in the base year shall have its

current year apportionment reduced by the amount of such unauthorized

expenditures in the base year.

b. District plans of service. Any school district receiving an

additional apportionment pursuant to subdivision ten of this section for

pupils in career education programs or a payment in lieu of such

apportionment or having a public excess cost aid setaside pursuant to

subdivision four of this section shall keep on file and make available

for public inspection and review by the commissioner an acceptable plan

of service describing the student outcomes expected from implementation

of the proposed plan, provided that such plan may be incorporated into a

school district's district-wide comprehensive plan. The plan of service

of a school district receiving an additional apportionment pursuant to

this section for pupils with disabilities shall also describe how such

district intends to ensure that all instructional materials to be used

in the schools of such district will be made available in a usable

alternative format for each student with a disability and for each

student who is a qualified individual with a disability, at the same

time as such instructional materials are available to non-disabled

students, provided that such plan may incorporate by reference the

alternative format plans developed pursuant to subdivision twenty-nine-a

of section sixteen hundred four, subdivision four-a of section seventeen

hundred nine, subdivision seven-a of section twenty-five hundred three

or subdivision seven-a of section twenty-five hundred fifty-four of this

chapter. Such plans shall be in a form prescribed by the commissioner,

and except as heretofore provided, shall have the content prescribed by

the commissioner. The commissioner may, from time to time, require

amendments of such plans as deemed to be necessary and appropriate to

further the educational welfare of the pupils involved.

9. Aid for conversion to full day kindergarten. School districts may

make available full day kindergarten programs for all children wishing

to attend such programs.

a. For aid payable in the two thousand seven--two thousand eight

school year and thereafter, school districts which provided any half-day

kindergarten programs or had no kindergarten programs in the nineteen

hundred ninety-six--ninety-seven school year and in the base year, and

which have not received an apportionment pursuant to this paragraph in

any prior school year, shall be eligible for aid equal to the product of

the district's selected foundation aid calculated pursuant to

subdivision four of this section multiplied by the positive difference

resulting when the full day kindergarten enrollment of children

attending programs in the district in the base year is subtracted from

such enrollment in the current year.

b. Notwithstanding the provisions of paragraph a of this subdivision,

school districts that have received an apportionment pursuant to this

subdivision in a prior school year shall be eligible for an

apportionment where the department grants a waiver upon cause

satisfactory to the department, including but not limited to,

satisfactory demonstration of significant economic hardship that would

impact the school district's ability to provide full day kindergarten

for all children wishing to attend such programs. No school district may

be granted such a waiver more than once.

c. Notwithstanding the provisions of paragraph a of this subdivision,

school districts receiving an apportionment pursuant to paragraph a of

this subdivision in the two thousand eighteen--two thousand nineteen or

two thousand nineteen--two thousand twenty school year shall be eligible

for (A) an apportionment in the following school year equal to the

product of sixty-five percent multiplied by the aid received by the

district pursuant to paragraph a of this subdivision in the prior school

year, and (B) an apportionment in the school year after the following

year equal to the product of thirty-five percent multiplied by the aid

received by the district pursuant to paragraph a of this subdivision in

the year preceding the prior year.

10. Special services aid for large city school districts and other

school districts which were not components of a board of cooperative

educational services in the base year. a. The city school districts of

those cities having populations in excess of one hundred twenty-five

thousand and any other school district which was not a component of a

board of cooperative educational services in the base year shall be

entitled to an apportionment under the provisions of this section.

b. (1) Aid for career education. There shall be apportioned to such

city school districts and other school districts which were not

components of a board of cooperative educational services in the base

year for pupils in selected grades in attendance in career education

programs as such programs are defined by the commissioner, subject for

the purposes of this paragraph to the approval of the director of the

budget, an amount for each such pupil to be computed by multiplying the

career education aid ratio by three thousand nine hundred dollars for

aid payable in the two thousand twenty-four--two thousand twenty-five

school year and prior and four thousand one hundred dollars thereafter.

Such aid will be payable for weighted pupils attending career education

programs operated by the school district and for weighted pupils for

whom such school district contracts with boards of cooperative

educational services to attend career education programs operated by a

board of cooperative educational services. Weighted pupils for the

purposes of this paragraph shall mean the sum of the attendance of

students in selected grades in career education sequences in trade,

industrial, technical, agricultural or health programs plus the product

of sixteen hundredths multiplied by the attendance of students in

selected grades in career education sequences in business and marketing

as defined by the commissioner in regulations. The career education aid

ratio shall be computed by subtracting from one the product obtained by

multiplying fifty-nine percent by the combined wealth ratio. This aid

ratio shall be expressed as a decimal carried to three places without

rounding, but not less than thirty-six percent. For purposes of this

subparagraph, "selected grades" shall be grades ten through twelve for

aid payable in the two thousand twenty-four--two thousand twenty-five

school year and prior, and shall be grades nine through twelve for aid

payable in the two thousand twenty-five--two thousand twenty-six school

year and thereafter.

(2) Any school district that receives aid pursuant to this paragraph

shall be required to use such amount to support career education

programs in the current year.

(3) A board of education which spends less than its local funds as

defined by regulations of the commissioner for career education in the

base year during the current year shall have its apportionment under

this subdivision reduced in an amount equal to such deficiency in the

current or a succeeding school year, provided however that the

commissioner may waive such reduction upon determination that overall

expenditures per pupil in support of career education programs were

continued at a level equal to or greater than the level of such overall

expenditures per pupil in the preceding school year.

c. Computer administration aid for large city school districts and any

other school district which was not a component of a board of

cooperative educational services in the base year. The city school

districts of those cities having populations in excess of one hundred

twenty-five thousand inhabitants and any other school district which was

not a component of a board of cooperative educational services in the

base year shall be eligible for an apportionment in accordance with the

provisions of this subdivision. Such districts shall be entitled to an

additional apportionment computed by multiplying the lesser of (1)

expenses for approved computer services in the base year or (2) the

maximum allowable expense equal to the product of sixty-two dollars and

thirty cents and the enrollment of pupils attending the public schools

of such district in the base year, by the computer expenses aid ratio.

The computer expenses aid ratio shall be computed by subtracting from

one the product obtained by multiplying fifty-one per centum by the

combined wealth ratio. This aid ratio shall be expressed as a decimal

carried to three places without rounding, but shall not be less than

thirty per centum. Expenses for approved computer services in the base

year up to the maximum allowable expense shall not be used to claim aid

pursuant to any other provisions of this section.

d. Aid for academic improvement. There shall be apportioned to such

city school districts and other school districts which were not

components of a board of cooperative educational services in the base

year, an amount per pupil for each pupil eligible for aid pursuant to

paragraph b of this subdivision to be computed by multiplying the career

education aid ratio computed pursuant to such paragraph b of this

subdivision by the sum of (1) one hundred dollars plus (2) the quotient

of one thousand dollars divided by the lesser of one or the combined

wealth ratio. Aid for academic improvement shall be unrestricted general

aid available to support any academic programs of the school district.

e. Career education data collection. Beginning in the two thousand

seventeen--two thousand eighteen school year the commissioner shall

collect data from school districts receiving aid under this subdivision

on the number of students in the base year that are in grade nine and

enrolled in career education courses in trade/industrial education,

technical education, agricultural education, health occupations

education, business and marketing education, family and consumer science

education, and technology education programs in a manner prescribed by

the commissioner.

11. Employment Preparation Education Programs. a. School districts and

boards of cooperative educational services (BOCES) providing approved

programs shall be eligible for aid in accordance with the provisions of

this subdivision for the attendance of persons twenty-one years of age

or over who have not received a high school diploma or a high school

equivalency diploma recognized by New York State who attend employment

preparation education programs provided by such school districts or

BOCES, which programs lead to a high school diploma or high school

equivalency diploma as defined in regulations of the commissioner, even

if such persons attend regular day school classes with permission of the

board of education; provided that such programs are provided in

accordance with a plan of service approved by the commissioner in

accordance with the provisions of paragraph f of this subdivision. Such

programs may operate between July first and June thirtieth of a school

year. Whenever a person enrolls in a program approved pursuant to this

subdivision offered by a BOCES or in a school district other than their

district of residence, the program provider shall send a notice of such

enrollment to the persons district of residence, and shall issue a new

notice if such person moves from one district to another. In the event

that the cost of a program approved and provided in accordance with the

provisions of this subdivision exceeds all sources of funds, other than

tax levy revenues, which are available to defray such expenses, the

school district or BOCES providing such program shall determine an

excess cost per contact hour provided during the base year, and then

shall determine the local share of such excess costs for each school

district whose residents were served by such program by multiplying such

base year hours by the excess cost per contact hour, and such local

share shall be a charge against each such district, payable within

forty-five days. Notwithstanding the provisions of section nineteen

hundred fifty of this chapter, a BOCES shall be authorized to provide a

program pursuant to this subdivision in the same manner as a school

district.

a-1. Notwithstanding the provisions of paragraph a of this

subdivision, for aid payable in the school years two thousand--two

thousand one through two thousand nine--two thousand ten, and two

thousand eleven--two thousand twelve through two thousand

twenty-six--two thousand twenty-seven, the commissioner may set aside an

amount not to exceed two million five hundred thousand dollars from the

funds appropriated for purposes of this subdivision for the purpose of

serving persons twenty-one years of age or older who have not been

enrolled in any school for the preceding school year, including persons

who have received a high school diploma or high school equivalency

diploma but fail to demonstrate basic educational competencies as

defined in regulation by the commissioner, when measured by accepted

standardized tests, and who shall be eligible to attend employment

preparation education programs operated pursuant to this subdivision.

b. Employment preparation education hours. For the purpose of

computing an apportionment under the provisions of this subdivision, the

employment preparation education hours shall be the total hours of

instruction given by a teacher to all students enrolled in such approved

programs between July first and June thirtieth of the current year. For

nontraditional modes of instruction, the commissioner may establish

methods of determining contact hours of instruction to be counted for

state aid purposes in accordance with regulations adopted for such

purpose.

c. Employment preparation education aid ceiling. The employment

preparation education aid ceiling for the purposes of this subdivision

shall be the statewide average expense per pupil, as computed pursuant

to subdivision five of this section for aid payable in the current year,

divided by one thousand. Such result shall be computed to two decimals

without rounding.

d. Employment preparation education aid ratio. The employment

preparation education aid ratio for the purposes of this subdivision

shall be determined by subtracting from one the product of the pupil

wealth ratio and forty per centum. The aid ratio shall be expressed as a

decimal to three places without rounding but shall not be less than

forty per centum. In the case of a BOCES, such aid ratio shall be

determined by computing a pupil wealth ratio for the BOCES using the

aggregate actual valuation and total wealth pupil units for all

component districts of such BOCES, but shall not be less than the

greater of forty per centum or the product of eighty-five per centum and

the highest such aid ratio determined for a component school district of

such BOCES.

e. Employment preparation education apportionment. In addition to any

other aid payable under this section, the apportionment pursuant to this

subdivision shall be the product obtained when the employment

preparation education hours are multiplied by the aid per contact hour

which shall equal the product of the employment preparation program aid

ceiling and the employment preparation education aid ratio computed to

two decimals, rounded, as calculated based on data on file with the

commissioner on May fifteenth of the base year. Notwithstanding the

provisions of section thirty-six hundred nine-a of this part, the

payment of such apportionment shall be based upon reports required by

the commissioner for the periods ending December thirty-first, and June

thirtieth of each school year; payments for the first reporting period

shall be made after April first, based on claims on file by March first,

provided that the total of all such payments shall not exceed

twenty-five percent of the amount for such school year, with the

approved amount of such claims reduced on a pro rata basis if necessary;

the remainder of any payments due for the first period plus any payments

due for the rest of the school year shall be paid after October first,

based on claims on file by September fifteenth, provided that the total

of such payments shall not exceed the total amount of ninety-six million

dollars ($96,000,000) for such school year, with the approved amount of

such claims reduced on a pro rata basis if necessary, provided that the

total of such payment for services provided to persons who received a

high school diploma or a high school equivalency diploma recognized by

New York state shall not exceed the total amount set aside for such

purpose pursuant to paragraph a-one of this subdivision in any such

school year, with the approved amount of such claims reduced on a pro

rata basis if necessary; and aid paid pursuant to this paragraph shall

not be included in the computation of the district expenditure need as

defined in such section thirty-six hundred nine-a of this part. The

employment preparation education apportionment for the city school

district of the city of New York shall be computed only for the city as

a whole.

f. Approved application. All school districts and BOCES desiring to

operate an aidable program pursuant to this subdivision shall complete

an application, including a budget by program component. Such

application shall be in a form prescribed by the commissioner and shall

be submitted not later than May fifteenth of each school year. Within

forty-five days of such deadline, and upon evaluation of such

applications, the commissioner shall notify school districts and BOCES

of those portions of such application that will be aidable in the school

year ahead after making a determination that approval of such

application will assure maximum effectiveness, geographic availability

and lack of duplication of such programs, support for educational

initiatives, and compliance with required program and fiscal reporting

requirements. No aid shall be payable pursuant to this subdivision

unless the application is approved by the commissioner.

g. No school district may receive under the provisions of this

subdivision an amount which when added to all other state and federal

aid received by such school district for the purposes of this

subdivision, including tuition paid to the school district for such

program, exceeds the entire cost of such program in that year.

Notwithstanding any other provision of this section to the contrary, in

the event that the total revenue received exceeds the entire cost of

such program, any state aid payable to the district in the following

year shall be reduced in the amount of such excess.

h. Attendance of students in such approved programs shall not be

included in any other attendance counts of this section and shall not

generate aid under any other provision of this section or under section

nineteen hundred fifty of this chapter.

12. Academic enhancement aid. a. A school district that as of April

first of the base year has been continuously identified as a district in

need of improvement for at least five years shall, for the two thousand

eight--two thousand nine school year, be entitled to an additional

apportionment equal to the positive remainder, if any, of (a) the lesser

of fifteen million dollars or the product of the total foundation aid

base, as defined by paragraph j of subdivision one of this section,

multiplied by ten percent (0.10), less (b) the positive remainder of (i)

the sum of the total foundation aid apportioned pursuant to subdivision

four of this section and the supplemental educational improvement grants

apportioned pursuant to subdivision eight of section thirty-six hundred

forty-one of this article, less (ii) the total foundation aid base.

b. For the two thousand nine--two thousand ten through two thousand

fourteen--two thousand fifteen school years, each school district shall

be entitled to an apportionment equal to the amount set forth for such

school district as "EDUCATION GRANTS, ACADEMIC EN" under the heading

"2008-09 BASE YEAR AIDS" in the school aid computer listing produced by

the commissioner in support of the budget for the two thousand nine--two

thousand ten school year and entitled "SA0910", and such apportionment

shall be deemed to satisfy the state obligation to provide an

apportionment pursuant to subdivision eight of section thirty-six

hundred forty-one of this article.

c. For the two thousand fifteen--two thousand sixteen year, each

school district shall be entitled to an apportionment equal to the

amount set forth for such school district as "ACADEMIC ENHANCEMENT"

under the heading "2014-15 ESTIMATED AIDS" in the school aid computer

listing produced by the commissioner in support of the budget for the

two thousand fourteen--two thousand fifteen school year and entitled

"SA141-5", and such apportionment shall be deemed to satisfy the state

obligation to provide an apportionment pursuant to subdivision eight of

section thirty-six hundred forty-one of this article.

d. For the two thousand sixteen--two thousand seventeen school year,

each school district shall be entitled to an apportionment equal to the

amount set forth for such school district as "ACADEMIC ENHANCEMENT"

under the heading "2015-16 ESTIMATED AIDS" in the school aid computer

listing produced by the commissioner in support of the budget for the

two thousand fifteen--two thousand sixteen school year and entitled

"SA151-6", and such apportionment shall be deemed to satisfy the state

obligation to provide an apportionment pursuant to subdivision eight of

section thirty-six hundred forty-one of this article.

e. For the two thousand seventeen--two thousand eighteen school year,

each school district shall be entitled to an apportionment equal to the

amount set forth for such school district as "ACADEMIC ENHANCEMENT"

under the heading "2016-17 ESTIMATED AIDS" in the school aid computer

listing produced by the commissioner in support of the budget for the

two thousand sixteen--two thousand seventeen school year and entitled

"SA161-7", and such apportionment shall be deemed to satisfy the state

obligation to provide an apportionment pursuant to subdivision eight of

section thirty-six hundred forty-one of this article.

f. For the two thousand eighteen--two thousand nineteen school year,

each school district shall be entitled to an apportionment equal to the

amount set forth for such school district as "ACADEMIC ENHANCEMENT"

under the heading "2017-18 ESTIMATED AIDS" in the school aid computer

listing produced by the commissioner in support of the budget for the

two thousand seventeen--two thousand eighteen school year and entitled

"SA171-8", and such apportionment shall be deemed to satisfy the state

obligation to provide an apportionment pursuant to subdivision eight of

section thirty-six hundred forty-one of this article.

g. For the two thousand nineteen--two thousand twenty school year,

each school district shall be entitled to an apportionment equal to the

amount set forth for such school district as "ACADEMIC ENHANCEMENT"

under the heading "2018-19 ESTIMATED AIDS" in the school aid computer

listing produced by the commissioner in support of the budget for the

two thousand eighteen--two thousand nineteen school year and entitled

"SA181-9", and such apportionment shall be deemed to satisfy the state

obligation to provide an apportionment pursuant to subdivision eight of

section thirty-six hundred forty-one of this article.

h. For the two thousand twenty--two thousand twenty-one school year,

each school district shall be entitled to an apportionment equal to the

amount set forth for such school district as "ACADEMIC ENHANCEMENT"

under the heading "2019-20 ESTIMATED AIDS" in the school aid computer

listing produced by the commissioner in support of the budget for the

two thousand nineteen--two thousand twenty school year and entitled

"SA192-0", and such apportionment shall be deemed to satisfy the state

obligation to provide an apportionment pursuant to subdivision eight of

section thirty-six hundred forty-one of this article.

i. For the two thousand twenty-one--two thousand twenty-two school

year through the two thousand twenty-six--two thousand twenty-seven

school year, each school district shall be entitled to an apportionment

equal to the amount set forth for such school district as "ACADEMIC

ENHANCEMENT" under the heading "2020-21 ESTIMATED AIDS" in the school

aid computer listing produced by the commissioner in support of the

budget for the two thousand twenty--two thousand twenty-one school year

and entitled "SA202-1", and such apportionment shall be deemed to

satisfy the state obligation to provide an apportionment pursuant to

subdivision eight of section thirty-six hundred forty-one of this

article.

13. Youth incarcerated in county correctional facilities

apportionment. a. In addition to any other apportionment under this

section, a school district shall be eligible for an apportionment for

current year educational services provided between July first and June

thirtieth to youth incarcerated in correctional facilities maintained by

a county or the city of New York or in a youth shelter, as defined in

paragraph f of subdivision seven of section thirty-two hundred two of

this chapter, pursuant to subdivision seven of section thirty-two

hundred two of this chapter. Such apportionment shall not exceed the sum

of the following: (i) for programs which operate between September

first and June thirtieth, the product of the district's expense per

pupil and the number of pupils in full-time equivalent attendance as

defined in regulations of the commissioner multiplied by one hundred

twenty-five per centum plus (ii) for programs which operate between July

first and June thirtieth, the product of the district's expense per

pupil and the number of pupils in full-time equivalent attendance,

multiplied by one hundred fifty per centum. Such apportionment shall be

in accordance with regulations promulgated by the commissioner and

approved by the director of the budget and shall be the lesser of the

amount computed pursuant to this paragraph or the actual amount expended

by the district for such approved educational services and approved

administrative costs as reported to the commissioner provided, however,

that the minimum allocation in any school year for a school district

providing educational services to such children shall be fifteen

thousand dollars. The educational costs for these children shall not be

otherwise aidable or reimbursable under any provision of law; provided,

however, that a city school district which operates an academy or an

alternative high school at such a facility, may elect to receive

applicable aid pursuant to other provisions of this section in lieu of

any aid under this subdivision.

b. Notwithstanding the provisions of section thirty-six hundred nine-a

of this part, the payment of such apportionment shall be based on

reports required by the commissioner for the periods ending November

thirtieth, March thirty-first and June thirtieth of each school year.

For the city school district of the city of New York, computations made

pursuant to this subdivision shall be computed on a city-wide basis.

d. The commissioner shall adopt regulations to implement the

provisions of this subdivision.

14. Limitations on the apportionment. The apportionment to any school

district during any school year shall be subject to the following

provisions:

a. District subject to reorganization. (1) No apportionments pursuant

to subdivision six of this section shall be paid to any school district

which is scheduled for reorganization pursuant to the state plan for

school district reorganization, unless there shall have been compliance

with this paragraph.

(2) In order to obtain an apportionment under subdivision six of this

section for a district scheduled for reorganization and not reorganized,

such district shall file with the commissioner a formal written

application therefor, (a) showing (i) inadequacy or obsolescence of

present facilities, and (ii) that such construction for which such

apportionment is sought would be capable of substantial educational use

by the reorganized district in case the reorganization under the

existing plan of reorganization is effected, and that it will provide

more efficient and more economical educational facilities for such

reorganized district in the best educational interests of the children

in the reorganized school district or (b) showing that such district has

adopted a resolution or resolutions in accordance with sections eighteen

hundred one through eighteen hundred three of this chapter in favor of

such reorganization and is being prevented from reorganizing by the

action of another district which is part of the same plan of

reorganization. The commissioner shall within ninety days grant such

apportionment or deny such apportionment with leave to the district to

petition for a formal hearing. Such hearing shall be held pursuant to

the procedures provided in subdivision three of section three hundred

fourteen of this chapter.

(3) (a) Within sixty days after such hearing is concluded and all

papers in relation thereto are submitted, the commissioner shall render

a preliminary finding recommending whether a change is warranted,

setting forth his findings and conclusions which shall be based

exclusively on the evidence presented at the hearing. The commissioner

shall recommend the amendment or confirmation of the state plan in

accordance with his preliminary finding by a report made by him and

entered in his office. The commissioner shall serve a copy of such

preliminary finding upon the clerk or in the event that there is no

clerk, the trustee or trustees of the school districts located in the

affected area or areas. In the event that such districts do not agree

with such preliminary findings, the school districts affected by the

terms of such preliminary finding may within thirty days apply to the

chancellor of the board of regents for the appointment of a committee of

the regents to review the proposed amendment or confirmation of the

state plan. In the event that an application to the chancellor is not

made within thirty days for the appointment of a committee of the

regents, the preliminary finding shall become an order without further

action of the commissioner.

(b) Upon receipt of such application, the chancellor shall appoint a

committee of three members of the regents, one of whom shall be a regent

whose judicial district includes all or part of the areas affected. The

committee of regents shall review the proposed amendment or confirmation

of the state plan. In the event the committee is unable to resolve the

differences between the commissioner and such school districts, it shall

within sixty days from the date of the appointment of such committee,

make an order reversing, affirming, or modifying, wholly or in part,

such preliminary finding of the commissioner and amending or confirming

the state plan setting forth the committee's findings and conclusions

which shall be based exclusively on the evidence presented at the

commissioner's hearing and any additional evidence presented at the

committee's review. The committee shall have the discretion to permit

additional evidence to be presented by any party. The commissioner shall

serve a copy of such order upon the clerk or in the event there is no

clerk, the trustee or trustees of the school districts located in the

affected area or areas.

(c) Such order of the committee of the regents shall be binding and

final and subject to review pursuant to article seventy-eight of the

civil practice law and rules. The scope of review shall include the

question whether the determination is on the entire record supported by

substantial evidence.

(d) The commissioner shall establish and promulgate rules of practice

and procedures in connection with such hearings, shall provide for the

attendance of the hearing officer, regulate the course of the hearing,

fix the time for filing of briefs and other documents, provide a hearing

stenographer and for the making of a record as well as the making of a

full transcript of all proceedings at the hearing and shall at the

request of any party, school district or interested person have prepared

and furnish a copy of the transcript or any party thereof upon payment

of the costs therefor.

(e) School districts designated in the established plan by an order of

the committee of the regents shall be made parties by the petitioning

district. Districts which may be affected by the proposed change may

join or be joined in such proceeding by the commissioner or any party.

(4) Notwithstanding the provisions of subparagraphs one through three

of this paragraph, any such district which has qualified for an

apportionment for school building purposes, under laws in effect prior

to the date this act takes effect, shall receive an apportionment under

subdivision six of this section; and provided, further, that no new

apportionment shall be paid and the commissioner shall not approve any

new expenditures for school building purposes in any such district after

such date, except where the commissioner has made a determination as

herein provided.

(5) Nothing herein provided shall prevent a school district which has

heretofore been denied an apportionment subsequent to July first,

nineteen hundred sixty-two from making an application hereunder, except

that any such apportionment which may be granted shall not be

retroactive beyond July first, nineteen hundred sixty-two.

c. Incentive building aid for reorganized districts. (1)

Notwithstanding the provisions of this section, whenever two or more

school districts are scheduled for reorganization pursuant to section

three hundred fourteen of this chapter and whenever after July first,

nineteen hundred sixty-five all such school districts so scheduled do

reorganize, and

(i) whenever such proposed reorganization includes at least two school

districts, each of which maintains its own high school, or

(ii) where such proposed reorganization includes only one school

district maintaining its own high school, whenever in such case such

proposed reorganization, in addition to such school district maintaining

its own high school, includes at least nine other school districts, or

(iii) whenever such proposed reorganization includes at least two

central school districts, or

(iv) where such proposed reorganization includes at least one school

district maintaining its own high school and, in addition thereto,

includes at least one school district employing eight or more teachers,

or

(v) where such proposed reorganization includes a city school

district, and in addition thereto, includes at least seven other school

districts, or

(vi) where such proposed reorganization includes at least two school

districts employing eight or more teachers forming a central high school

district pursuant to section nineteen hundred thirteen of this chapter,

beginning with July first, nineteen hundred sixty-five or the first

school year of operation as a reorganized district after such date, such

reorganized school district shall be entitled to an additional

apportionment of twenty-five per centum of the sum of: (A) its

apportionment as provided in subdivision six of this section whenever

such apportionment is computed on the basis of its approved base year

expenditures for capital outlay from its general, capital, or a reserve

fund incurred prior to July first, two thousand one, or on the basis of

its approved base year expenditures for capital outlay from its general,

capital or a reserve fund incurred in the two thousand one--two thousand

two school year and computed pursuant to subdivision six of this section

as if such expenditures were aidable under such subdivision, and current

year approved expenditures for debt service for school building purposes

and (B) its apportionment as provided in subdivision six of this

section, the general contracts for which shall have been awarded on or

after the date this act takes effect and prior to July first, two

thousand ten, or prior to July first, two thousand twelve where such

general contracts are for projects with complete final plans and

specifications filed for approval with the commissioner prior to July

first, two thousand ten, or within ten years from the effective date of

reorganization, whichever is later as provided in subdivision six of

this section, and which said sum shall be payable for and during the

terms of any indebtedness created for the purpose of financing such

construction or other facility as aforesaid, provided however, that in

no event may the total apportionment under this paragraph, under

subdivision twelve of section thirty-six hundred forty-one of this

article, and under subdivisions six and six-f of this section for any

project exceed the product of (1) ninety-eight percent for a high need

school district, as defined pursuant to guidelines of the commissioner

for the two thousand five--two thousand six school year, for all school

building projects approved by the voters of the school district or by

the board of education of a city school district in a city with more

than one hundred twenty-five thousand inhabitants, and/or the chancellor

in a city school district in a city having a population of one million

or more, on or after July first, two thousand five, or ninety-five per

cent for any other school building project or school district,

multiplied by (2) the sum of the base year approved expenditures for

capital outlay for school building purposes from the general fund,

capital fund or from a reserve fund, and current year approved

expenditures for debt service for such purposes for such project.

(2) Notwithstanding any provisions of this paragraph and paragraph d

of this subdivision to the contrary, the commissioner is hereby

authorized, in addition to any other state aid apportionments to which

such district may be entitled under the provisions of this chapter, to

make the additional reorganization incentive aid payments provided by

such paragraphs, in the amounts, and in the manner provided therein, to

central school district number one of the towns of Brookhaven and

Smithtown, Suffolk county, as if such newly reorganized district were

included in the various categories of reorganization referred to in such

paragraphs.

(4) In the event a school district is eligible for incentive building

aid and again reorganizes pursuant to a new plan of reorganization

established by the commissioner, and where such new reorganization shall

again become eligible for incentive building aid, no project of such

district shall be entitled to more than one such additional twenty-five

percent apportionment. The latest date provided in this paragraph for

the awarding of general contracts shall also apply to any school

district subject to chapter five hundred eighty-eight of the laws of

nineteen hundred sixty-six as amended, notwithstanding such date

provided in such chapter.

d. Incentive operating aid for reorganized districts. Notwithstanding

the provisions of paragraphs a through c of this subdivision, whenever

two or more school districts are scheduled for reorganization pursuant

to section three hundred fourteen of this chapter, and whenever after

July first, two thousand seven, all such school districts so scheduled

do reorganize in accordance with the provisions of such section three

hundred fourteen, as amended by chapter seven hundred forty-five of the

laws of nineteen hundred sixty-five, and

(1) whenever such proposed reorganization includes at least two school

districts, each of which maintains its own high school, or

(2) where such proposed reorganization includes only one school

district maintaining its own high school, whenever in such case such

proposed reorganization, in addition to such school district maintaining

its own high school, includes at least nine other school districts, or

(3) whenever such proposed reorganization includes at least two

central school districts, or

(4) where such proposed reorganization includes at least one school

district maintaining its own high school and, in addition thereto,

includes at least one school district employing eight or more teachers,

or

(5) where such proposed reorganization includes a city school

district, and in addition thereto, includes at least seven other school

districts, or

(6) where such reorganization includes at least two school districts

employing eight or more teachers forming a central high school district

pursuant to section nineteen hundred thirteen of this chapter.

(7) such reorganized district shall be entitled to an apportionment

equal to an additional percent of the apportionment computed in

accordance with the provisions of paragraph d-1 of this subdivision; but

in no case shall the sum of such apportionment under this paragraph plus

the total operating aid base as defined in this subdivision be more than

a total of ninety-five per centum of the year prior to the base year

approved operating expense; for a period of five years beginning with

the first school year of operation as a reorganized district such

additional percent shall be forty percent; and thereafter such

additional forty percent apportionment to such district shall be reduced

by four percentage points each year, beginning with the sixth school

year of operation as a reorganized district, and continuing until such

additional forty percent apportionment is eliminated; provided, however,

that the total apportionment to such reorganized district, beginning

with the first school year of operation as a reorganized district, and

for a period of fifteen years thereafter, shall be not less than the sum

of all apportionments computed in accordance with the provisions of this

paragraph plus the apportionment computed in accordance with the

provisions of paragraph d-1 of this subdivision that each component

school district was entitled to receive and did receive during the last

school year preceding such first year of operation. In the event a

school district is eligible for incentive operating aid and again

reorganizes pursuant to a new plan or reorganization established by the

commissioner, and where such new reorganization is again eligible for

incentive operating aid, the newly created school district shall be

entitled to receive incentive operating aid pursuant to the provisions

of this paragraph, based on all school districts included in any such

reorganization, provided, however, that incentive operating aid payments

due because of any such former reorganization shall cease.

d-1. For purposes of paragraph d of this subdivision, "total operating

aid base" shall mean the apportionment computed for the 2006-07 school

year, based on data on file with the commissioner as of the date upon

which an electronic data file was created for the purposes of compliance

with paragraph b of subdivision twenty-one of section three hundred five

of this chapter on February fifteenth, provided further that for school

districts which reorganize on or after July first, two thousand

twenty-four, for purposes of paragraph d of this subdivision, "total

operating aid base" shall mean the total foundation aid base, as defined

pursuant to paragraph j of subdivision one of this section, calculated

as of the effective date of the reorganization.

f. For school districts which reorganize on or after July first,

nineteen hundred eighty-three, the percent increase in apportionment

pursuant to paragraph c of this subdivision shall be thirty provided

that such school districts meet all other requirements of the provisions

of such paragraph c. All other requirements of paragraph c shall apply.

School districts which receive an apportionment under this paragraph

shall not be eligible for an apportionment under paragraph c or e of

this subdivision.

g. Whenever a school district is dissolved and portions of such former

district are added to more than one school district, each such school

district to which territory is added shall in the first year only in

which such district educates pupils from such former district be

entitled to an additional apportionment under the provisions of this

paragraph, which apportionment shall be computed in accordance with

regulations of the commissioner under one of the following

subparagraphs:

(1) the pupils received by each such district as a result of receiving

such new territory shall be added to all of the pupil counts used to

compute operating aid for such district, or

(2) if such receiving district is receiving aid under an option other

than formula aid for such year, the additional aid shall be computed by

dividing the operating aids base for such year by the pupil count used

for computing formula operating aid such district might otherwise have

received, and by multiplying such result by the number of additional

pupils received from such dissolved district who are then residents of

such receiving district.

j. For school districts which reorganize on or after July first,

nineteen hundred ninety-two, the percent increase in apportionment

pursuant to paragraph c of this subdivision shall be thirty provided

that such school districts meet all other requirements of the provisions

of such paragraph c. All other requirements of paragraph c shall apply.

School districts which receive an apportionment under this paragraph

shall not be eligible for an apportionment under paragraph c, e or f of

this subdivision.

15. Voluntary interdistrict urban-suburban transfer program aid. a. A

school district which accepts pupils from another school district in

accordance with a voluntary interdistrict urban-suburban transfer

program designed to reduce racial isolation which is approved by the

commissioner in accordance with regulations adopted by him for such

purpose shall be eligible for aid pursuant to this subdivision.

b. Definitions. (1) "Transfer pupil count" shall mean the public

school district enrollment in the current year through such program.

(2) "Increase in aid" shall mean the product of thirty-six and

one-half percent (0.365) and the positive remainder resulting when the

total foundation aid base is subtracted from the current year total

foundation aid as defined in subdivision four of this section.

(3) "Aid paid per pupil" shall mean the aid computed in the current

year pursuant to subdivision four of this section divided by the total

aidable foundation pupil units for total foundation aid, computed

pursuant to paragraph g of subdivision two of this section.

(4) "Formula pupil margin" shall mean the increase in aid divided by

aid paid per pupil.

(5) "Excess transfer pupils" shall mean the positive remainder

resulting when the formula pupil margin is subtracted from the transfer

pupil count.

(6) "Per pupil aid differential" shall mean the positive remainder

resulting when the aid paid per pupil for such school district is

subtracted from the aid paid per pupil for the transfer pupil's district

of residence.

c. In addition to any other aid computed under this section, such

school district shall be eligible to receive, for each excess transfer

pupil, an amount equal to the selected foundation aid for such district

computed pursuant to subdivision four of this section.

d. For the purposes of computing transportation aid pursuant to

subdivision seven of this section, the approved cost of the

transportation of pupils in a voluntary interdistrict transfer program

approved by the commissioner shall be used in computing approved

transportation expense.

e. In addition to any other aid computed under this section, such

school district shall be eligible to receive an amount equal to the per

pupil aid differential multiplied by the transfer pupil count.

16. High tax aid. Each school district shall be eligible to receive a

high tax aid apportionment in the two thousand eight--two thousand nine

school year, which shall equal the greater of (i) the sum of the tier 1

high tax aid apportionment, the tier 2 high tax aid apportionment and

the tier 3 high tax aid apportionment or (ii) the product of the

apportionment received by the school district pursuant to this

subdivision in the two thousand seven--two thousand eight school year,

multiplied by the due-minimum factor, which shall equal, for districts

with an alternate pupil wealth ratio computed pursuant to paragraph b of

subdivision three of this section that is less than two, seventy percent

(0.70), and for all other districts, fifty percent (0.50). Each school

district shall be eligible to receive a high tax aid apportionment in

the two thousand nine--two thousand ten through two thousand twelve--two

thousand thirteen school years in the amount set forth for such school

district as "HIGH TAX AID" under the heading "2008-09 BASE YEAR AIDS" in

the school aid computer listing produced by the commissioner in support

of the budget for the two thousand nine--two thousand ten school year

and entitled "SA0910". Each school district shall be eligible to

receive a high tax aid apportionment in the two thousand thirteen--two

thousand fourteen through two thousand twenty-six--two thousand

twenty-seven school year equal to the greater of (1) the amount set

forth for such school district as "HIGH TAX AID" under the heading

"2008-09 BASE YEAR AIDS" in the school aid computer listing produced by

the commissioner in support of the budget for the two thousand nine--two

thousand ten school year and entitled "SA0910" or (2) the amount set

forth for such school district as "HIGH TAX AID" under the heading

"2013-14 ESTIMATED AIDS" in the school aid computer listing produced by

the commissioner in support of the executive budget for the 2013-14

fiscal year and entitled "BT131-4".

a. Definitions. (1) "Residential real property tax levy" shall mean

the school tax levy imposed on residential property, including

condominium properties, in the year commencing in the calendar year two

years prior to the calendar year in which the base year began. The final

update of such data shall be reported by the commissioner of taxation

and finance to the commissioner by February fifteenth of the base year.

The commissioner of taxation and finance shall adopt regulations as

appropriate to assure the appropriate collection, classification and

reporting of such data for the purposes of paying state aid to the

schools.

(2) "Adjusted gross income" shall mean the adjusted gross income of a

school district as used in computation of the district's alternate pupil

wealth ratio pursuant to paragraph b of subdivision three of this

section, provided, however, that for the computation of apportionments

pursuant to this subdivision, the adjusted gross income of a central

high school district shall not equal the sum of the adjusted gross

income of each of its component school districts; and provided, further,

that commencing in calendar year two thousand twenty-two, New York state

lottery and video lottery gaming individual prizes in excess of one

million dollars that when aggregated exceeds twenty-five percent of a

district's adjusted gross income shall be excluded from a district's

adjusted gross income for the year. The commissioner of taxation and

finance shall determine the amount of this exclusion based on the annual

report of New York state lottery and video lottery gaming individual

prizes in excess of one million dollars produced by the gaming

commission pursuant to paragraph three of subdivision c of section

sixteen hundred four of the tax law.

(3) "Tax effort ratio" shall mean the quotient of the district's

residential real property tax levy divided by the district's adjusted

gross income computed to five decimals without rounding.

(4) "Tier 1 eligible school district" shall mean any school district

in which (i) the income wealth index, as computed pursuant to paragraph

d of subdivision three of this section, is less than two and one-half,

and (ii) the expense per pupil, as computed pursuant to paragraph f of

subdivision one of this section, is greater than the statewide average

expense per pupil as computed pursuant to subdivision five of this

section, and (iii) the tax effort ratio is greater than three and

two-tenths percent (0.032). For the two thousand eight--two thousand

nine school year, for the purpose of computing aid pursuant to this

subdivision, the statewide average expense per pupil shall be ten

thousand six hundred fifty dollars.

(5) "Tier 2 eligible school district" shall mean any school district

in which the tax effort ratio is greater than five percent.

(6) "Tier 3 eligible school district" shall mean any school district

in which (i) the quotient of (a) the actual valuation of the school

district divided by its total wealth pupil units computed pursuant to

subparagraph one of paragraph a of subdivision three of this section,

divided by (b) the adjusted gross income of a school district divided by

its total wealth pupil units computed pursuant to subparagraph one of

paragraph b of subdivision three of this section, is greater than four

and sixty-two hundredths (4.62), (ii) the combined wealth ratio computed

pursuant to subparagraph one of paragraph c of subdivision three of this

section is less than six, and (iii) the regional cost index determined

pursuant to subparagraph two of paragraph a of subdivision four of this

section is greater than one and three-tenths (1.3).

b. Tier 1 high tax aid apportionment. For any tier 1 eligible school

district, the tier 1 high tax aid apportionment shall be the greater of

(1) the product of the public school district enrollment of the district

in the base year, as computed pursuant to subparagraph two of paragraph

n of subdivision one of this section, multiplied by the product of four

hundred fifty dollars multiplied by the state sharing ratio, or (2) one

hundred thousand dollars.

c. Tier 2 high tax aid apportionment. For any tier 2 eligible school

district, the tier 2 high tax aid apportionment shall be the product of

(i) the public school district enrollment of the district in the base

year, as computed pursuant to subparagraph two of paragraph n of

subdivision one of this section, multiplied by (ii) one hundred

eighty-one thousandths (0.181) multiplied by (iii) the positive

difference, if any, of the expense per pupil, as computed pursuant to

paragraph f of subdivision one of this section, less ten thousand six

hundred sixty dollars, multiplied by (iv) an aid ratio computed by

subtracting from one the product obtained by multiplying the alternate

pupil wealth ratio computed pursuant to subparagraph one of paragraph b

of subdivision three of this section by sixty percent, provided,

however, that such aid ratio shall not be less than zero nor greater

than one, multiplied by (v) the regional cost index.

d. Tier 3 high tax aid apportionment. For any tier 3 eligible school

district, the tier 3 high tax aid apportionment shall be the product of

(i) the public school district enrollment of the district in the base

year, as computed pursuant to subparagraph two of paragraph n of

subdivision one of this section, multiplied by (ii) fifty-two dollars,

multiplied by (iii) the regional cost index.

17. Gap elimination adjustment. a. Notwithstanding any other provision

of law to the contrary, the commissioner shall reduce payments due to

each district for the two thousand eleven--two thousand twelve school

year and thereafter pursuant to section thirty-six hundred nine-a of

this article by an amount equal to the gap elimination adjustment

computed for such district, and such amount shall be deducted from

moneys apportioned for the purposes of payments made pursuant to such

section thirty-six hundred nine-a and if the reduction is greater than

the sum of the amounts available for such deductions, the remainder of

the reduction shall be withheld from payments scheduled to be made to

the district pursuant to section thirty-six hundred nine-a for the

following school year, and provided further that an amount equal to the

amount of such deduction shall be deemed to have been paid to the

district pursuant to this section for the school year in which such

deduction is made. The commissioner shall compute such gap elimination

adjustment and shall provide a schedule of such reduction in payments to

the state comptroller, the director of the budget, the chair of the

senate finance committee and the chair of the assembly ways and means

committee.

b. The gap elimination adjustment for the two thousand eleven--two

thousand twelve school year shall be computed as follows, based on an

updated electronic date file containing actual and estimated data

relating to apportionments due and owing during the current school year

and projections of such apportionments for the following school year to

school districts and boards of cooperative educational services from the

general support for public schools, growth and boards of cooperative

educational services appropriations produced pursuant to paragraph b of

subdivision twenty-one of section three hundred five of this chapter on

February fifteenth of the base year. The gap elimination adjustment for

a district shall equal the lesser of the district's percentage reduction

and its TGFE check, provided, however, that in the case of a district

with a tax effort ratio greater than four percent (0.04) and a combined

wealth ratio for total foundation aid computed pursuant to subparagraph

two of paragraph c of subdivision three of this section that is less

than one and five-tenths (1.5), the gap elimination adjustment for a

district shall equal the lesser of the percentage reduction, the TGFE

check and the tax effort reduction, and further provided that in the

case of a school district, other than a city school district of a city

having a population in excess of one hundred twenty-five thousand, with

(A) an administrative efficiency ratio of less than one and eight-tenths

percent (0.018) and (B) an administrative expense per pupil of less than

three hundred forty-eight dollars ($348), the gap elimination adjustment

shall be reduced by an amount equal to the administrative efficiency

restoration, and further provided that, where applicable, the gap

elimination adjustment shall be reduced by an amount equal to the sum of

the needs-based restoration plus the low wealth-high tax effort

restoration plus the enrollment adjustment award.

(i) The percentage reduction shall be the sum of (A) the product of

the total aid for adjustment, multiplied by six and four-tenths percent

(0.064), and (B) the product of four thousand four hundred dollars

($4,400) multiplied by the reduction factor, multiplied by the public

school district enrollment for the base year computed pursuant to

subparagraph two of paragraph n of subdivision one of this section,

provided, however, that such percentage reduction shall not be less than

the product of nine and one-half percent (0.095) multiplied by such

total aid for adjustment, and not more than the product of twenty-one

and four-tenths percent (0.214) multiplied by such total aid for

adjustment.

(ii) The tax effort reduction shall be the product of the total aid

for adjustment, multiplied by the quotient of twenty-three percent

(0.23) divided by the quotient of the tax effort ratio computed pursuant

to subparagraph three of paragraph a of subdivision sixteen of this

section divided by four and two hundred forty-seven thousandths percent

(0.04247), provided, however, that such tax effort reduction shall not

be less than the product of thirteen percent (0.13) multiplied by such

total aid for adjustment, and not more than the product of twenty-three

percent (0.23) multiplied by such total aid for adjustment.

(iii) The TGFE check shall be the product of the TGFE percentage and

the total general fund expenditures of such district in the base year.

(iv) The administrative efficiency restoration shall be the product of

seventy-five dollars ($75), multiplied by the state sharing ratio,

multiplied by the total aidable foundation pupil units computed pursuant

to paragraph g of subdivision two of this section for the purposes of

computing total foundation aid.

(v) The needs-based restoration shall be the sum of (A) the product of

the needs-based grant, multiplied by the public school district

enrollment for the base year computed pursuant to subparagraph two of

paragraph n of subdivision one of such section thirty-six hundred two of

this part, plus (B) in the case of any district for which the quotient

of the Limited English proficient count for the base year computed

pursuant to paragraph o of subdivision one of this section divided by

the public school district enrollment for the base year computed

pursuant to subparagraph two of paragraph n of subdivision one of this

section, exceeds thirteen percent (0.13), the product of the total aid

for adjustment multiplied by seventy-five hundredths of a percent

(0.0075).

(vi) The low wealth-high tax effort restoration shall be, for any

school district with a tax effort ratio greater than six percent (0.06)

and a combined wealth ratio for total foundation aid that is less than

seven-tenths (0.7), the product of one hundred dollars ($100.00)

multiplied by the public school district enrollment for the base year

computed pursuant to subparagraph two of paragraph n of subdivision one

of this section.

(vii) The enrollment adjustment award shall be the product of five

hundred dollars ($500.00) multiplied by the enrollment increase for any

eligible school district. An eligible school district shall be a school

district (A) with a combined wealth ratio for total foundation aid less

than three (3.0) and an enrollment increase greater than or equal to

forty-five, where, (B) for such school district, either the enrollment

increase is greater than one percent (0.01) of the public school

district enrollment for the base year or the combined wealth ratio for

total foundation aid is less than two (2.0). The enrollment increase

shall be as the positive difference of the estimated public school

district enrollment for the current year computed pursuant to

subparagraph two of paragraph n of subdivision one of this section less

the public school district enrollment for the base year computed

pursuant to subparagraph two of paragraph n of subdivision one of this

section.

(viii) For the purposes of such computation, (A) "total aid for

adjustment" shall mean the sum of the amounts set forth for each school

district as "FOUNDATION AID", "FULL DAY K CONVERSION", BOCES + SPECIAL

SERVICES", "HIGH COST EXCESS COST", "PRIVATE EXCESS COST", "HARDWARE &

TECHNOLOGY", "SOFTWARE, LIBRARY, TEXTBOOK", "TRANSPORTATION INCL

SUMMER", "OPERATING REORG INCENTIVE", "CHARTER SCHOOL TRANSITIONAL",

"ACADEMIC ENHANCEMENT", "HIGH TAX AID" AND "SUPPLEMENTAL PUB EXCESS

COST" under the heading "2011-12 ESTIMATED AIDS" in the school aid

computer listing produced by the commissioner in support of the

executive budget proposal for the two thousand eleven--two thousand

twelve school year;

(B) "the state sharing ratio" shall mean the state sharing ratio

computed for total foundation aid computed pursuant to paragraph g of

subdivision three of this section, but not less than ten percent (0.10);

and

(C) "reduction factor" shall mean the product of the positive

remainder of one less the three-year average free and reduced price

lunch percent computed pursuant to subparagraph (ii) of paragraph p of

subdivision one of this section, multiplied by the combined wealth ratio

for total foundation aid computed pursuant to subparagraph two of

paragraph c of subdivision three of section thirty-six hundred two of

this part; and

(D) "needs-based grant" shall mean, (1) in the case of a district

determined to be a high need school district pursuant to clause (c) of

subparagraph two of paragraph c of subdivision six of this section for

the school aid computer listing produced by the commissioner in support

of the enacted budget for the two thousand seven--two thousand eight

school year and entitled "SA0708", having a need-resource category of

three or four, sixty-one dollars ($61.00), and (2) in the case of a

district determined to be an average need school district pursuant to

clause (c) of subparagraph two of paragraph c of subdivision six of this

section for the school aid computer listing produced by the commissioner

in support of the enacted budget for the two thousand seven--two

thousand eight school year and entitled "SA0708", having a need-resource

category of five, fifty-four dollars ($54.00).

(E) "administrative efficiency ratio" shall mean the quotient of the

sum of the expenditures related to the board of education, including

expenditures for the board of education, the district clerk's office,

the district meeting, auditing service, the treasurer's office, the tax

collector's office, legal services and the school census, plus

expenditures for central administration, including expenditures for the

chief school officer, the business office, the purchasing office, the

personnel office, the records management officer, public information and

services, fees for fiscal agents and undistributed indirect costs,

divided by the total expenditures charged by a district to the general,

debt service, and special aid funds, excluding transfers from the

general fund to the debt service and special aid funds, based on

expenditures reported by the district for the school year two years

prior to the base year, based on data on file for an electronic data

file used to produce the school aid computer listing produced by the

commissioner in support of the executive budget request; and

(F) "administrative expense per pupil" shall mean the quotient of the

sum of the expenditures related to the board of education, including

expenditures for the board of education, the district clerk's office,

the district meeting, auditing service, the treasurer's office, the tax

collector's office, legal services and the school census, plus

expenditures for central administration, including expenditures for the

chief school officer, the business office, the purchasing office, the

personnel office, the records management officer, public information and

services, fees for fiscal agents and undistributed indirect costs,

charged by a district to the general, debt service, and special aid

funds, based on expenditures reported by the district for the school

year two years prior to the base year, divided by the public school

district enrollment for the base year computed pursuant to subparagraph

two of paragraph n of subdivision one of this section based on data on

file for an electronic data file used to produce the school aid computer

listing produced by the commissioner in support of the executive budget

request; and

(G) "TGFE percentage" shall mean,

(1) in the case of a district determined to be a high-need school

district pursuant to clause (c) of subparagraph two of paragraph c of

subdivision six of this section for the school aid computer listing

produced by the commissioner in support of the enacted budget for the

two thousand seven--two thousand eight school year and entitled

"SA0708",

(a) in the case of a city school district in a city with a population

in excess of one million inhabitants, four and five hundred thirty-seven

thousandths percent (0.04537),

(b) in the case of a city school district in a city with a population

of more than two hundred fifty thousand inhabitants and less than one

million inhabitants according to the two thousand federal census, four

and one-tenth percent (0.041),

(c) in the case of a city school district in a city with a population

of more than two hundred ten thousand inhabitants and less than two

hundred fifty thousand inhabitants according to the two thousand federal

census, four and thirteen hundredths percent (0.0413),

(d) in the case of a city school district in a city with a population

of more than one hundred seventy thousand inhabitants and less than two

hundred ten thousand inhabitants according to the two thousand federal

census, five and ninety-seven hundredths percent (0.0597),

(e) in the case of a city school district in a city with a population

of more than one hundred thousand inhabitants and less than one hundred

seventy thousand inhabitants according to the two thousand federal

census, five and fifty-three hundredths percent (0.0553),

(f) in the case of any other such school district which has a

three-year average free and reduced price lunch percent greater than

seventy-five percent (0.75) and which has an administrative efficiency

ratio less than one and fifty-five hundredths percent (0.0155), four and

nine hundredths percent (0.0409), and

(g) for all other such school districts, six and eight-tenths percent

(0.068), or

(2) in the case of all other school districts, eleven percent (0.11).

d. The gap elimination adjustment restoration amount for the two

thousand twelve--two thousand thirteen school year for a school district

shall be computed based on data on file with the commissioner and in the

database used by the commissioner to produce an updated electronic data

file in support of the enacted budget for the two thousand twelve--two

thousand thirteen state fiscal year, and shall equal the sum of (i) the

greater of:

(A) the product of (1) the product of the extraordinary needs index

multiplied by two hundred twenty-three dollars and eighty cents,

computed to two decimal places without rounding, multiplied by (2) the

state sharing ratio computed pursuant to paragraph g of subdivision

three of this section multiplied by (3) the public school district

enrollment for the base year, calculated pursuant to subparagraph two of

paragraph n of subdivision one of this section, where the extraordinary

needs index shall be the quotient of the extraordinary needs percent for

the district computed pursuant to paragraph w of subdivision one of this

section divided by forty-eight hundredths; or

(B) for any district with a GEA/TGFE ratio greater than one, where the

GEA/TGFE ratio shall be the quotient of the gap elimination adjustment

for the two thousand eleven--two thousand twelve school year for the

district divided by the total general fund expenditures of such district

in the base year, divided by the quotient of the statewide total gap

elimination adjustment for the two thousand eleven--two thousand twelve

school year divided by total general fund expenditures in the base year,

the product of (1) the product of the GEA/TGFE ratio multiplied by

ninety dollars, computed to two decimal places without rounding,

multiplied by (2) the state sharing ratio computed pursuant to paragraph

g of subdivision three of this section multiplied by (3) the public

school district enrollment for the base year, calculated pursuant to

subparagraph two of paragraph n of subdivision one of this section; or

(C) the product of two and nine hundred fifty-six one-thousandths of a

percent (0.02956) multiplied by the gap elimination adjustment for the

two thousand eleven--two thousand twelve school year; or

(D) the product of (1) the positive difference, if any, of one and

thirty-seven one-hundredths (1.37) minus the product of the combined

wealth ratio computed pursuant to subparagraph one of paragraph c of

subdivision three of this section multiplied by one and one-half (1.5),

but not more than one, multiplied by (2) the public school district

enrollment for the base year, calculated pursuant to subparagraph two of

paragraph n of subdivision one of this section, multiplied by (3) four

hundred seventy-three dollars and seventy cents; or

(E) for any district with a tax effort ratio computed pursuant to

subparagraph three of paragraph a of subdivision sixteen of this section

that is greater than four and four-tenths (4.4) and a combined wealth

ratio computed pursuant to subparagraph one of paragraph c of

subdivision three of this section that is less than one and one-half

(1.5), the product of (1) the state sharing ratio computed pursuant to

paragraph g of subdivision three of this section multiplied by (2) the

public school district enrollment for the base year, calculated pursuant

to subparagraph two of paragraph n of subdivision one of this section,

multiplied by (3) three hundred nine dollars and thirty cents;

but shall be no greater than the product of twenty-five percent and the

gap elimination adjustment for the two thousand eleven--two thousand

twelve school year for the district, and (ii) the Limited English

proficiency restoration which shall be apportioned to city school

districts of cities with a population in excess of one hundred

twenty-five thousand and less than one million. For any such city school

district with a limited English proficiency ratio greater than or equal

to four percent and less than five percent, the limited English

proficiency restoration shall equal the product of the limited English

proficiency restoration base multiplied by seven tenths. For any such

city school district with a limited English proficiency ratio greater

than or equal to five percent, the limited English proficiency

restoration shall equal the product of the limited English proficiency

restoration base multiplied by two and two tenths. For any such city

school district with a limited English proficiency ratio less than four

percent, the limited English proficiency restoration shall equal the

product of the limited English proficiency restoration base multiplied

by one and seventy-five hundredths.

(A) for the purposes of computations pursuant to this subparagraph (1)

"limited English proficiency ratio" shall mean the quotient of (a) the

product of the limited English proficiency count computed pursuant to

paragraph o of subdivision one of this section multiplied by fifty

percent, divided by (b) public school district enrollment for the base

year computed pursuant to subparagraph two of paragraph n of subdivision

one of this section;

(2) "limited English proficiency restoration base" shall mean the

product of the amount set forth for such school district as "TOTAL"

under the heading "2011-12 BASE YEAR AIDS" in the school aid computer

listing produced by the commissioner in support of the enacted budget

for the 2012-13 school year and entitled "SA121-3" multiplied by eleven

hundredths of one percent.

(e) The gap elimination adjustment restoration amount for the two

thousand thirteen--two thousand fourteen school year for a school

district shall be computed based on data on file with the commissioner

and in the database used by the commissioner to produce an updated

electronic data file in support of the enacted budget for the two

thousand thirteen--two thousand fourteen state fiscal year end entitled

"SA131-4" and shall equal the greater of one hundred thousand dollars

($100,000) or the sum of:

(i) the "Tier A restoration" which shall mean the amount set forth for

such school district as "GEA RESTORATION" under the heading "2013-14

ESTIMATED AIDS" in the school aid computer listing produced by the

commissioner in support of the executive budget request submitted for

the two thousand thirteen--two thousand fourteen state fiscal year and

entitled "BT131-4"; and

(ii) the "Tier B restoration" which shall mean for a district with (1)

a combined wealth ratio of less than one and seven-tenths (1.7) and (2)

an enrollment per square mile which shall be the quotient, computed to

two decimals without rounding, of the public school enrollment of the

school district on the date enrollment was counted in accordance with

subdivision one of this section for the base year divided by the square

miles of the district, as determined by the commissioner, of less than

one hundred and seventy and (3) a designation as high need or average

need pursuant to clause (c) of subparagraph two of paragraph c of

subdivision six of this section for the school aid computer listing

produced by the commissioner in support of the enacted budget for the

two thousand seven--two thousand eight school year and entitled

"SA0708", or in the case of a reorganized district that had a

predecessor district that was so designated and (4) a tier A restoration

which equals less than twenty and seven-tenths percent (0.207) of the

gap elimination adjustment for the base year, the positive difference if

any, of the product of twenty and seven-tenths percent (0.207)

multiplied by the gap elimination adjustment for the base year minus the

tier A restoration; and

(iii) the "Tier C restoration" which shall mean for a district for

which the sum of the tier A restoration and the tier B restoration is

less than the product of the gap elimination adjustment for the base

year multiplied by six percent (0.06), the positive difference of the

product of the gap elimination adjustment for the base year multiplied

by six percent (0.06) minus the sum of the tier A restoration and the

tier B restoration; and

(iv) the "Tier D restoration" which shall mean for school districts

that were: (1) designated as low or average need pursuant to clause (c)

of subparagraph two of paragraph c of subdivision six of this section

for the school aid computer listing produced by the commissioner in

support of the enacted budget for the two thousand seven--two thousand

eight school year and entitled "SA0708", or in the case of a reorganized

district that had a predecessor district that was so designated and (2)

designated as high need pursuant to the regulations of the commissioner

in the most recently available study included in the school aid computer

listing produced by the commissioner in support of the enacted budget

for the two thousand thirteen--two thousand fourteen state fiscal year

and entitled "SA131-4" known as the 2008 need resource capacity category

code, the product of (a) the positive difference, if any, of the gap

elimination adjustment for such district for the two thousand

eleven--two thousand twelve school year minus the product of six and

eight tenths percent (0.068) multiplied by the total general fund

expenditures of such district for the two thousand ten--two thousand

eleven school year, multiplied by (b) thirty-five hundredths (0.35); and

(v) the "Tier E restoration" which shall mean for districts with (1) a

quotient of the positive difference of the gap elimination adjustment

for the year prior to the base year minus the gap elimination adjustment

for the base year divided by the gap elimination adjustment for the year

prior to the base year is less than seven and five-tenths percent

(0.075) and (2) a combined wealth ratio of less than one and one-tenth

(1.10), the product of two and five-tenths percent (0.025) multiplied by

the gap elimination adjustment for the base year; and

(vi) the "Tier F restoration" which shall mean for any district (1)

designated as high need pursuant to clause (c) of subparagraph two of

paragraph c of subdivision six of this section for the school aid

computer listing produced by the commissioner in support of the enacted

budget for the two thousand seven--two thousand eight school year and

entitled "SA0708", or in the case of a reorganized district that had a

predecessor district that was so designated, with (2) a GEA/TGFE ratio

greater than four and ninety-one hundredths percent (.0491), where the

GEA/TGFE ratio shall be the quotient of the gap elimination adjustment

for the base year for the district divided by the total general fund

expenditures of such district in the base year, the product of fifteen

dollars ($15.00), multiplied by the base year public school district

enrollment, as computed pursuant to paragraph n of subdivision one of

this section, but not less than one hundred thousand dollars ($100,000);

and

(vii) the "Tier G restoration" which shall mean for a city school

district of a city having a population in excess of one hundred

twenty-five thousand and less than one hundred and sixty thousand and

for city school districts of cities with populations in excess of two

hundred and five thousand and less than three hundred thousand, the

product of ten dollars ($10.00) multiplied by the base year public

school district enrollment, as computed pursuant to paragraph n of

subdivision one of this section and for a city school district of a city

having a population in excess of one hundred sixty thousand and below

two hundred thousand the product of eight dollars ($8.00) multiplied by

the base year public school district enrollment, as computed pursuant to

paragraph n of subdivision one of this section and for a city school

district of a city having a population of one million or more, the

product of forty-two dollars and two cents ($42.02), multiplied by the

base year public school district enrollment, as computed pursuant to

paragraph n of subdivision one of this section; and

(viii) the "Tier H restoration" which shall mean for districts other

than for city school districts of cities having populations of one

hundred and twenty-five thousand or more, the product of the positive

difference of one and forty-three hundredths (1.43) minus such

district's regional cost index pursuant to subdivision four of this

section, multiplied by five, multiplied by the three-year average free

and reduced price lunch percent, multiplied by one hundred dollars

($100.00) multiplied by the base year public school district enrollment,

as computed pursuant to paragraph n of subdivision one of this section;

and

(ix) the "Tier I restoration" which shall mean for any district with a

combined wealth ratio greater than one and one-tenth (1.1) and a

three-year average free and reduced price lunch percent greater than

six-tenths (0.6), the product of one hundred and fifty dollars ($150.00)

multiplied by the base year public school district enrollment, as

computed pursuant to paragraph n of subdivision one of this section; and

(x) the "Tier J restoration" which shall mean for a district with a

combined wealth ratio less than one and one-tenths (1.1), the product of

(a) two hundred dollars ($200.00) multiplied by (b) the positive

difference, if any, of the base year public school district enrollment

less the public school district enrollment for the year four years prior

to the base year, as computed pursuant to paragraph n of subdivision one

of this section;

Provided further, notwithstanding any portion of this paragraph to the

contrary, that a district's gap elimination adjustment restoration for

the two thousand thirteen--two thousand fourteen school year shall not

exceed the product of forty-three percent (0.43) and the gap elimination

adjustment for the base year for the district.

(f) The gap elimination adjustment restoration amount for the two

thousand fourteen--two thousand fifteen school year for a school

district shall be computed based on data on file with the commissioner

and in the database used by the commissioner to produce an updated

electronic data file in support of the enacted budget for the two

thousand fourteen--two thousand fifteen state fiscal year and entitled

"SA141-5" and shall equal the greater of:

(i) the product of fourteen and thirteen hundredths percent (0.1413)

multiplied by the gap elimination adjustment for the base year or;

(ii) the positive difference of (a) the product of twenty-nine percent

(0.29) multiplied by the absolute value of the amount set forth for such

school district as "GAP ELIMINATION ADJUSTMENT" under the heading

"2011-12 ESTIMATED AIDS" in the school aid computer listing produced by

the commissioner in support of the executive budget request submitted

for the two thousand eleven--two thousand twelve state fiscal year and

entitled "BT111-2" minus (b) the positive difference of the absolute

value of the amount set forth for such school district as "GAP

ELIMINATION ADJUSTMENT" under the heading "2011-12 ESTIMATED AIDS" in

the school aid computer listing produced by the commissioner in support

of the executive budget request submitted for the two thousand

eleven--two thousand twelve state fiscal year and entitled "BT111-2"

minus the gap elimination adjustment for the base year or;

(iii) seventy thousand dollars ($70,000) or;

(iv) the sum of:

(A) the product of the FRPL restoration amount multiplied by the base

year public school district enrollment as computed pursuant to

subparagraph two of paragraph n of subdivision one of this section

multiplied by the three-year average free and reduced price lunch

percent, provided further, for the purposes of this paragraph the FRPL

restoration amount shall equal (1) for a city school district of a city

having a population in excess of one hundred twenty-five thousand and

less than one million, five dollars ($5.00) or (2) for a city school

district of a city having a population in excess of one million, one

hundred four dollars and forty cents ($104.40) or (3) for all other

school districts forty-three dollars ($43.00); and

(B) for a school district with (1) a three-year average free and

reduced price lunch percent greater than sixty-five percent (0.65) and

(2) base year public school district enrollment as computed pursuant to

subparagraph two of paragraph n of subdivision one of this section

greater than thirty-five hundred (3,500) and for which (3) the quotient

of (a) the positive difference, if any, of the absolute value of the

amount set forth for such school district as "GAP ELIMINATION

ADJUSTMENT" under the heading "2011-12 ESTIMATED AIDS" in the school aid

computer listing produced by the commissioner in support of the

executive budget request submitted for the two thousand eleven--two

thousand twelve state fiscal year and entitled "BT111-2" minus the

positive difference of the absolute value of the amount set forth for

such school district as "GAP ELIMINATION ADJUSTMENT" under the heading

"2014-15 ESTIMATED AIDS" in the school aid computer listing produced by

the commissioner in support of the executive budget request submitted

for the two thousand fourteen--two thousand fifteen state fiscal year

and entitled "BT141-5" divided by (b) the absolute value of the amount

set forth for such school district as "GAP ELIMINATION ADJUSTMENT" under

the heading "2011-12 ESTIMATED AIDS" in the school aid computer listing

produced by the commissioner in support to the executive budget request

submitted for the two thousand eleven--two thousand twelve state fiscal

year and entitled "BT111-2" is less than sixty percent (0.60), the

product of one hundred and forty-three dollars ($143.00) multiplied by

the base year public school district enrollment as computed pursuant to

subparagraph two of paragraph n of subdivision one of this section; and

(C) for a school district other than a city school district of a city

having a population in excess of one million for which the quotient of

(a) the positive difference, if any, of the limited English proficient

count for the base year minus the limited English proficient count for

the two thousand eight--two thousand nine school year divided by (b) the

limited English proficient count for the two thousand eight--two

thousand nine school year is greater than five percent (0.05), the

product of one thousand five hundred dollars ($1,500) multiplied by the

positive difference, if any of the limited English proficient count for

the base year minus the limited English proficient count for the two

thousand eight--two thousand nine school year multiplied by such

districts extraordinary needs percent as computed pursuant to paragraph

w of subdivision one of this section; and

(D) for a school district for which the quotient of the number of

persons aged five to seventeen within the school district, based on the

most recent decennial census as tabulated by the National Center on

Education Statistics, who were enrolled in public schools and whose

families had incomes below the poverty level, divided by the total

number of person aged five to seventeen within the school district,

based on such decennial census, who were enrolled in public schools,

computed to four decimals without rounding is greater than eighteen

percent (0.18), the product of four hundred and ninety-five dollars

($495) multiplied by the positive difference, if any of the base year

public school district enrollment as computed pursuant to subparagraph

two of paragraph n of subdivision one of this section minus the two

thousand ten--two thousand eleven public school district enrollment, as

computed pursuant to subparagraph two of paragraph n of subdivision one

of this section; and

(E) for a school district for which (1) the quotient of the two

thousand thirteen--two thousand fourteen gap elimination adjustment

divided by the total general fund expenditures for such district for the

base year exceeds five percent (0.05), the product of ninety dollars

($90.00) multiplied by the base year public school district enrollment,

as computed pursuant to paragraph n of subdivision one of this section;

and

(F) for school districts for which the quotient of non public school

district enrollment divided by the sum of the non public school district

enrollment and the base year public school district enrollment as

computed pursuant to subparagraph two of paragraph n of subdivision one

of this section is greater than twenty-five hundredths (0.25), the

product of (1) the quotient of non public school district enrollment

divided by the sum of the non public school district enrollment and the

base year public school district enrollment as computed pursuant to

subparagraph two of paragraph n of subdivision one of this section

multiplied by (2) the extraordinary needs percent as computed pursuant

to paragraph w of subdivision one of this section multiplied by (3) the

base year public school district enrollment as computed pursuant to

subparagraph two of paragraph n of subdivision one of this section

multiplied by (4) three hundred and fifty dollars ($350.00); and

(G) for school districts that: (1) were designated as average need

pursuant to clause (c) of subparagraph two of paragraph c of subdivision

six of this section for the school aid computer listing produced by the

commissioner in support of the enacted budget for the two thousand

seven--two thousand eight school year and entitled "SA0708" and (2) a

combined wealth ratio computed pursuant to subparagraph one of paragraph

c of subdivision three of this section of less than one (1.0) or for a

school district designated as high need urban-suburban pursuant to

clause (c) of subparagraph two of paragraph c of subdivision six of this

section for the school aid computer listing produced by the commissioner

in support of the enacted budget for the two thousand seven--two

thousand eight school year and entitled "SA0708", the product of

fifty-one dollars ($51.00) multiplied by the base year public school

district enrollment as computed pursuant to subparagraph two of

paragraph n of subdivision one of this section; and

(H) for a school district designated as rural high need pursuant to

clause (c) of subparagraph two of paragraph c of subdivision six of this

section for the school aid computer listing produced by the commissioner

in support of the enacted budget for the two thousand seven--two

thousand eight school year and entitled "SA0708", the product of two

hundred dollars ($200.00) multiplied by the base year public school

district enrollment as computed pursuant to subparagraph two of

paragraph n of subdivision one of this section; and

(I) for school districts that were designated as small city school

districts or central school districts whose boundaries include a portion

of a small city for the school aid computer listing produced by the

commissioner in support of the enacted budget for the two thousand

fourteen--two thousand fifteen school year and entitled "SA1415" the

product of twenty-five dollars ($25.00) multiplied by the base year

public school district enrollment as computed pursuant to subparagraph

two of paragraph n of subdivision one of this section and for school

districts for which the quotient, computed to two decimals without

rounding, of the public school enrollment of the school district on the

date enrollment was counted in accordance with this subdivision for the

base year divided by the square miles of the district, as determined by

the commissioner is less than two hundred and fifty (250), the product

of sixteen dollars ($16.00) multiplied by the base year public school

district enrollment as computed pursuant to subparagraph two of

paragraph n of subdivision one of this section; and

(J) For a district for which (1) the quotient, computed to two

decimals without rounding, of the public school enrollment of the school

district on the date enrollment was counted in accordance with this

subdivision for the base year divided by the square miles of the

district, as determined by the commissioner is greater than eight

hundred (800) and (2) the tax effort ratio, as defined in subdivision

sixteen of this section is greater than four and (3) the base year

public school district enrollment as computed pursuant to subparagraph

two of paragraph n of subdivision one of this section is greater than

the two thousand ten--two thousand eleven public school district

enrollment as computed pursuant to subparagraph two of paragraph n of

subdivision one of this section, the product of two hundred and fifty

dollars ($250.00) multiplied by the base year public school district

enrollment as computed pursuant to subparagraph two of paragraph n of

subdivision one of this section, provided that such amount shall not

exceed one million dollars ($1,000,000); and

(K) For school districts that were: (1) designated as low or average

need pursuant to clause (c) of subparagraph two of paragraph c of

subdivision six of this section for the school aid computer listing

produced by the commissioner in support of the enacted budget for the

two thousand seven--two thousand eight school year and entitled

"SA0708", or in the case of a reorganized district that had a

predecessor district that was so designated and (2) designated as high

need pursuant to the regulations of the commissioner in the most

recently available study included in the school aid computer listing

produced by the commissioner in support of the enacted budget for the

two thousand thirteen--two thousand fourteen state fiscal year and

entitled "SA131-4" known as the 2008 need resource capacity category

code, the product of (a) the positive difference, if any, of the

absolute value of the amount set forth for such school district as "GAP

ELIMINATION ADJUSTMENT" under the heading "2011-12 ESTIMATED AIDS" in

the school aid computer listing produced by the commissioner in support

of the executive budget request submitted for the two thousand

eleven--two thousand twelve state fiscal year and entitled "BT111-2"

minus the product of six and eight tenths percent (0.068) multiplied by

the total general fund expenditures of such district for the two

thousand ten--two thousand eleven school year, multiplied by (b)

fifty-five hundredths (0.55); and

(L) the amount set forth for such school district as "GEA RESTORATION"

under the heading "2014-15 ESTIMATED AIDS" in the school aid computer

listing produced by the commissioner in support of the executive budget

request submitted for the two thousand fourteen--two thousand fifteen

state fiscal year and entitled "BT141-5".

Provided further, notwithstanding any provision of this paragraph to

the contrary, that a district's gap elimination adjustment restoration

for the two thousand fourteen--two thousand fifteen school year shall

not exceed the product of seventy percent (0.70) and the gap elimination

adjustment for the base year for the district.

g. The gap elimination adjustment restoration amount for the two

thousand fifteen--two thousand sixteen school year for a school district

shall be computed based on data on file with the commissioner and in the

database used by the commissioner to produce an updated electronic data

file in support of the enacted budget for the two thousand fifteen--two

thousand sixteen state fiscal year and entitled "SA151-6" and shall

equal the sum of tiers one through four plus the sum of minimums A, B,

and C.

(i) "Tier one" shall equal the product of thirty dollars ($30.00)

multiplied by the extraordinary needs count computed pursuant to

paragraph s of subdivision one of this section multiplied by the

concentration factor, where the concentration factor shall be the sum of

one plus the quotient arrived at when dividing (1) the difference of the

extraordinary needs percent computed pursuant to paragraph w of

subdivision one of this section less four-tenths (0.4) divided by (2)

nine hundred two thousandths (0.902), provided, however, that such

concentration factor shall not be less than one.

(ii) "Tier two" shall be the product, for districts with a change in

enrollment of greater than two percent, of six hundred dollars

($600.00), and for all other districts with a change in enrollment

greater than zero but less than two percent, five hundred dollars

($500.00) multiplied by the change in enrollment, where the change in

enrollment shall be the positive difference, if any, of the base year

public school district enrollment as computed pursuant to subparagraph

two of paragraph n of subdivision one of this section for the base year

less public school district enrollment for the two thousand

thirteen--two thousand fourteen school year.

(iii) "Tier three" shall be the product of twenty-two dollars and

fifty cents ($22.50) multiplied by the free and reduced price lunch

percent computed pursuant to paragraph p of subdivision one of this

section multiplied by the base year public school district enrollment as

computed pursuant to subparagraph two of paragraph n of subdivision one

of this section for the base year.

(iv) "Tier four" shall be the product of three hundred dollars

($300.00) multiplied by the limited English proficient count computed

pursuant to paragraph o of subdivision one of this section multiplied by

the extraordinary needs percent computed pursuant to paragraph w of

subdivision one of this section multiplied by the sum of one and the LEP

growth percent, where the LEP growth percent shall be the quotient

arrived at by dividing the positive difference, if any, of the limited

English proficient count for the base year less such count for the year

prior to the base year divided by such count for the year prior to the

base year.

(v) "Minimum A" shall be the minimum A percent multiplied by the gap

elimination adjustment for the base year, where the minimum A percent

shall be the greater of (1) for a city school district of a city having

a population of one million or more twenty-nine and forty-five

hundredths percent (0.2945), or (2) for a city school district of a city

having a population of one hundred twenty-five thousand or more but less

than one million and a combined wealth ratio of less than five-tenths

(0.5) eighty percent (0.80), or (3) for all other districts with a

combined wealth ratio less than one and eight-tenths (1.8) thirty-five

and six-tenths percent (0.356), or (4) for all other districts thirty

percent (0.30).

(vi) "Minimum B" shall be for districts designated as average need

pursuant to clause (c) of subparagraph two of paragraph c of subdivision

six of this section for the school aid computer listing produced by the

commissioner in support of the enacted budget for the two thousand

seven--two thousand eight school year and entitled "SA0708" and with a

combined wealth ratio of less than seventy-eight hundredths (0.78),

twenty-six and fifteen hundredths percent (0.2615) multiplied by the gap

elimination adjustment for the base year.

(vii) "Minimum C" shall be for districts designated as high need

pursuant to clause (c) of subparagraph two of paragraph c of subdivision

six of this section for the school aid computer listing produced by the

commissioner in support of the enacted budget for the two thousand

seven--two thousand eight school year and entitled "SA0708", other than

those city school districts of a city having a population of one hundred

twenty-five thousand or more, forty-three percent (0.43) multiplied by

the gap elimination adjustment for the base year.

(viii) Provided however, that no GEA restoration shall be more than

the product of ninety-eight percent (0.98) multiplied by the gap

elimination adjustment for the base year.

h. The gap elimination adjustment for the two thousand sixteen--two

thousand seventeen school year and thereafter shall equal zero.

18. Allocable growth amount apportionment. Such amount shall be

apportioned for a school year pursuant to a chapter of the laws of New

York enacted for the state fiscal year in which such school year

commences, and shall be allocated to purposes including but not limited

to competitive grant awards made pursuant to subdivisions five and six

of section thirty-six hundred forty-one of this article, the foundation

aid phase-in amount or other foundation aid increase allocated pursuant

to subdivision four of this section and the gap elimination adjustment

restoration amount apportioned pursuant to subdivision seventeen of this

section. In the event that a chapter of the laws of New York enacted for

the state fiscal year in which such school year commences is not

enacted, the allocations in support of subdivisions five and six of

section thirty-six hundred forty-one of this article shall equal the

allocations in support of such awards in the base year, and the

apportionments pursuant to subdivisions four and seventeen of this

section for the current year shall equal the apportionments for such

subdivisions four and seventeen for the base year.

19. Pandemic adjustment. a. Notwithstanding any other provision of law

to the contrary, the commissioner shall reduce payments due to each

district for the two thousand twenty--two thousand twenty-one school

year pursuant to section thirty-six hundred nine-a of this part by an

amount equal to the pandemic adjustment computed for such district, and

provided further that an amount equal to the amount of such deduction

shall be deemed to have been paid to the district pursuant to this

section for the school year in which such deduction is made. The

commissioner shall compute such pandemic adjustment in each electronic

data file produced pursuant to subdivision twenty-one of section three

hundred five of this chapter, based on the following information: (i)

ninety-nine and one-half percent of the funds from the elementary and

secondary emergency relief fund that are available for school districts

pursuant to the Coronavirus Aid, Relief, and Economic Security Act of

2020, and (ii) the governor's emergency relief fund pursuant to such

act, provided that a schedule of such amounts shall be approved by the

director of the budget, and provided further the commissioner shall

provide a schedule of such pandemic adjustment to the state comptroller,

the director of the budget, the chair of the senate finance committee,

and the chair of the assembly ways and means committee.

b. Notwithstanding any inconsistent provision of law to the contrary,

where additional federal and state revenues are apportioned to school

districts with a pandemic adjustment reduction pursuant to this

subdivision, such additional federal and state revenues shall be

apportioned to such school district in an amount equal to the pandemic

adjustment as computed herein, unless otherwise specified by federal

law.

c. The positive value of the pandemic adjustment payment reduction

shall not exceed the sum of moneys apportioned pursuant to sections

seven hundred one, seven hundred eleven, seven hundred fifty-one, seven

hundred fifty-three, thirty-six hundred nine-a, thirty-six hundred

nine-b, thirty-six hundred nine-d, thirty-six hundred nine-f, and

thirty-six hundred nine-h for the two thousand twenty--two thousand

twenty-one school year for any school district.

20. Shared services aid for school districts which are not components

of a board of cooperative educational services supervisory district,

including large city school districts. Commencing with aid payable in

the nineteen hundred ninety-eight--ninety-nine school year, school

districts which are not components of a board of cooperative educational

services supervisory district, including city school districts of those

cities having populations in excess of one hundred twenty-five thousand

inhabitants that participate in, or provide, shared services for the

purpose of instructional support service as authorized by subdivision

eight-c of section nineteen hundred fifty of this chapter shall be

eligible for an additional apportionment in accordance with the

provisions of this paragraph. Within the amount appropriated for such

purpose, such districts shall be entitled to an additional apportionment

for their expenses incurred in the base year from their participation in

or provision of such shared services, in an amount equal to the amount

that would be payable for such expenses if the services were aidable

shared services under subdivision five of section nineteen hundred fifty

of this chapter; provided that in computing such aid for such city

school districts the tax rate shall be determined in the manner

prescribed in subparagraph seven of paragraph a of subdivision

thirty-one-a of this section. Such apportionment shall be paid in

accordance with section thirty-six hundred nine-a of this chapter. In

the event the appropriation for purposes of this subdivision in any year

is insufficient to pay all claims received pursuant to this subdivision,

the commissioner shall determine the percentage of the total claims

submitted that is represented by each district's claim on file with the

commissioner at the time of creation of each data file or fiscal report

required by subdivision twenty-one of section three hundred five of this

chapter and shall pay such claims based on such prorated basis among all

districts filing such claims until the appropriation is exhausted,

provided that such prorated apportionment computed and payable as of

September one of the school year immediately following the school year

for which such aid is claimed shall be deemed final and not subject to

change. For aid payable in the nineteen hundred

ninety-eight--ninety-nine school year, the aid payable pursuant to this

subdivision shall not exceed three million, five hundred thousand

dollars ($3,500,000); for the nineteen hundred ninety-nine--two thousand

school year the aid payable pursuant to this subdivision shall not

exceed ten million dollars ($10,000,000); for the two thousand--two

thousand one school year the aid payable pursuant to this subdivision

shall not exceed fifteen million dollars ($15,000,000); and for the two

thousand one--two thousand two school year and thereafter the aid

payable pursuant to this subdivision shall not exceed twenty-five

million dollars ($25,000,000).

26-a. Aid for instructional computer technology expenses. a.

Commencing with aid payable in the nineteen hundred

ninety-eight--ninety-nine school year, the commissioner is hereby

authorized to apportion to any school district aid pursuant to this

subdivision for its approved expenditures, in excess of base year aid

received pursuant to subdivision twenty-six of this section, for the

purchase, lease-purchase and/or installation of instructional computer

technology equipment, including original purchase, lease-purchase and/or

installation of hardware and vendor-installed software for deployment in

classrooms or school libraries; or for the costs of an extended

maintenance contract for instructional computer technology equipment or

network systems for a term not to exceed the applicable period of

probable usefulness, to the extent such costs would be allowable under a

state contract; provided, however, no expenses eligible for aid pursuant

to subdivision six of this section shall be aidable pursuant to this

subdivision, and provided further, no expenses aided pursuant to this

subdivision shall be eligible for aid pursuant to subdivision twenty-six

of this section or section nineteen hundred fifty of this chapter.

b. Aid pursuant to this subdivision shall equal the product of the

district's instructional computer technology aid ratio and approved base

year expenditures for capital outlays and/or current year expenditures

for debt service and/or current year expenditures for lease purchase for

acquisition and installation of instructional computer technology

equipment. Notwithstanding any other provision of law to the contrary,

debt service expenses or obligations due under a lease-purchase

agreement executed in a prior year for instructional computer technology

equipment pursuant to this subdivision shall be ordinary contingent

expenses.

c. The district's instructional computer technology aid ratio shall be

the greater of (i) the district's building aid ratio selected for use in

the current year pursuant to clause (b) of subparagraph two of paragraph

c of subdivision six of this section; or (ii) the district's millage

ratio equal to one minus the quotient expressed as a decimal to three

places without rounding of eight mills divided by the tax rate of the

local district computed upon the actual valuation of taxable property,

as determined pursuant to subdivision one of this section, expressed in

mills to the nearest tenth as determined by the commissioner, provided,

however, that for a city school district in a city having a population

in excess of one hundred twenty-five thousand inhabitants the tax rate

shall be computed in the manner prescribed in subparagraph seven of

paragraph a of subdivision thirty-one-a of this section, and provided

that for a school district which is included within a central high

school district or for a central high school district, such millage

ratio shall equal one minus the quotient expressed as a decimal to three

places without rounding of three mills divided by the tax rates,

expressed in mills to the nearest tenth, of such districts, as

determined by the commissioner; or (iii) thirty-six hundredths. For the

purposes of this paragraph, the tax rate for the central high school

district shall be the amount of tax raised by the common and union free

school districts included within the central high school district for

the support of the central high school district divided by the actual

valuation of the central high school district. The tax rate for each

common or union free school district shall be the amount raised for the

support of such common or union free school district, exclusive of the

amount raised for the central high school district, divided by such

actual valuation of such common or union free school district.

d. To be eligible for aid pursuant to this subdivision, school

districts shall develop and maintain a plan for the use of the

instructional computer technology equipment funded pursuant this

section, which shall be in a form prescribed by the commissioner and

shall include but shall not be limited to provision for maintenance and

repair of equipment and the provision of staff development in the use of

such technology. In addition, such plan may provide for the district's

participation in the universal service discount program pursuant to the

federal telecommunications act of nineteen hundred ninety-six, and the

district's participation in the federal technology literacy challenge

program, where such federal technology programs are available. In

prescribing the format for such plans, the commissioner shall assure

that to the extent possible, districts will be able to develop a single

plan that meets the requirements of this subdivision and such federal

technology programs. In addition, funds apportioned pursuant to this

subdivision shall be used in a manner consistent with the district's

long-range facilities plan and building-level, district-wide, and where

applicable, regional instructional and technology plans.

e. Expenses for instructional computer technology equipment and

software provided through a board of cooperative educational services

pursuant to a multi-year contract entered pursuant to section nineteen

hundred fifty of this chapter shall continue to be aided under

subdivision five of section nineteen hundred fifty of this chapter for

the duration of such contract, and shall be paid in accordance with

applicable provisions of section nineteen hundred fifty of this chapter

and section thirty-six hundred nine-d of this article.

f. In the event the appropriation for purposes of this subdivision in

any year is insufficient to pay all claims received pursuant to this

subdivision, the commissioner shall determine the percentage of the

total claims submitted that is represented by each district's claim on

file with the commissioner at the time of creation of each data file or

fiscal report required by subdivision twenty-one of section three

hundred five of this chapter and shall pay such claims based on such

prorated basis among all districts filing such claims until the

appropriation is exhausted, provided that such prorated apportionment

computed and payable as of September one of the school year immediately

following the school year for which such aid is claimed shall be deemed

final and not subject to change. For aid payable in the nineteen hundred

ninety-eight--ninety-nine school year, the aid payable pursuant to this

subdivision shall not exceed nine million dollars ($9,000,000); for the

nineteen hundred ninety-nine--two thousand school year the aid payable

pursuant to this subdivision shall not exceed twenty-five million

dollars ($25,000,000); for the two thousand--two thousand one school

year the aid payable pursuant to this subdivision shall not exceed

fifty-seven million dollars ($57,000,000); and for the two thousand

one--two thousand two school year and thereafter the aid payable

pursuant to this subdivision shall not exceed ninety-one million dollars

($91,000,000).

41. Transitional aid for charter school payments. In addition to any

other apportionment under this section, for the two thousand seven--two

thousand eight school year and thereafter, a school district other than

a city school district in a city having a population of one million or

more shall be eligible for an apportionment in an amount equal to the

greater of the sum of paragraphs (a), (b), and (c), or paragraph (e) of

this subdivision.

(a) the product of (i) the product of eighty percent multiplied by the

charter school basic tuition computed for such school district for the

base year pursuant to section twenty-eight hundred fifty-six of this

chapter, multiplied by (ii) the positive difference, if any, of the

number of resident pupils enrolled in the charter school in the base

year less the number of resident pupils enrolled in a charter school in

the year prior to the base year, provided, however, that a school

district shall be eligible for an apportionment pursuant to this

paragraph only if the number of its resident pupils enrolled in charter

schools in the base year exceeds two percent of the total resident

public school district enrollment of such school district in the base

year or the total general fund payments made by such district to charter

schools in the base year for resident pupils enrolled in charter schools

exceeds two percent of total general fund expenditures of such district

in the base year, plus

(b) the product of (i) the product of sixty percent multiplied by the

charter school basic tuition computed for such school district for the

base year pursuant to section twenty-eight hundred fifty-six of this

chapter, multiplied by (ii) the positive difference, if any, of the

number of resident pupils enrolled in the charter school in the year

prior to the base year less the number of resident pupils enrolled in a

charter school in the year two years prior to the base year, provided,

however, that a school district shall be eligible for an apportionment

pursuant to this paragraph only if the number of its resident pupils

enrolled in charter schools in the year prior to the base year exceeds

two percent of the total resident public school district enrollment of

such school district in the year prior to the base year or the total

general fund payments made by such district to charter schools in the

year prior to the base year for resident pupils enrolled in charter

schools exceeds two percent of the total general fund expenditures of

such district in the year prior to the base year, plus

(c) the product of (i) the product of forty percent multiplied by the

charter school basic tuition computed for such school district for the

base year pursuant to section twenty-eight hundred fifty-six of this

chapter, multiplied by (ii) the positive difference, if any, of the

number of resident pupils enrolled in the charter school in the year two

years prior to the base year less the number of resident pupils enrolled

in a charter school in the year three years prior to the base year,

provided, however, that a school district shall be eligible for an

apportionment pursuant to this paragraph only if the number of its

resident pupils enrolled in charter schools in the year two years prior

to the base year exceeds two percent of the total resident public school

district enrollment of such school district in the year two years prior

to the base year or the total general fund payments made by such

district to charter schools in the year two years prior to the base year

for resident pupils enrolled in charter schools exceeds two percent of

the total general fund expenditures of such district in the year two

years prior to the base year.

(d) For purposes of this subdivision the number of pupils enrolled in

a charter school shall not include pupils enrolled in a charter school

for which the charter was approved by a charter entity contained in

paragraph a of subdivision three of section twenty-eight hundred

fifty-one of this chapter.

(e) For school districts other than city school districts of cities

having populations of one hundred twenty-five thousand or more as of the

two thousand twenty decennial census, the product of eligible pupils

multiplied by eight-tenths (0.8) and further multiplied by charter

school basic tuition for the base year as defined pursuant to section

twenty-eight hundred fifty-six of this chapter. For purposes of this

paragraph, eligible pupils shall be equal to the positive difference, if

any, of the number of resident pupils enrolled in a charter school in

the base year less the product of two-tenths (0.2) multiplied by total

resident public school district enrollment in the base year.