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Summary of Proposed School Funding Formula Revisions by the Governor, per 11-3-07 presentation:
(Courtesy of the Mayor’s School Funding Committee, 12-2-07)
For Academic Year 2008-09 or FY2009:
- Hold harmless for all school district's total state aid (does not apply for specific categorical funding areas)
- New funding adequacy model based on student needs (student characterisitcs, regardless of zip code) as
determined by Professional Judgment Panel - replaces current CEIFA funding formula
Elementary students receive base amount (not released yet for FY09)
Middle school students receive base plus additional aid
High school students receive base plus additional aid
Vocational students receive HS amount plus additional aid
At-risk students definition is expanded from free lunch eligible to free and reduced rate lunch eligible
(185% of poverty)
At-risk students receive additional aid based on the expanded definition (sliding scale with important
thresholds at 40% and 60%)
Limited English Proficient (LEP) students receive additional aid based on fixed weight
Combined At-risk and Limited English Proficient student receive an additional 1/4 LEP weight
Special Education Students receive aid based on a new census approach - flat amount per student based
on average classification and average cost - partly paid for by adequacy model and partly paid for by
categorical aid - reduces incentive to over-classify, provides predictable level of special education
funding and minimizes administrative burdens
Special Education Extraordinary Aid provided at greater percentage and uses updated thresholds –
provided as categorical aid (>$40,000 - 70% covered by State; >$55,000 - 75% covered by State;
creates incentives for school districts to control costs)
Speech - uses statewide average classification rate for speech multiplied by district enrollment multiplied
by excess cost of speech services
- Preschool aid is expanded to all at-risk 3 & 4 yr olds - applies to A, B and CD DFG districts with at least 40%
at-risk (full-day Preschool required) and all at-risk 3 & 4 year olds statewide - phased in over time to ensure
quality
- Median teacher salary was changed to mean salary teacher - increases overall teacher salary calculation
- Benefits revised calculation to reflect actual costs
- Security costs becomes categorical aid - expanded levels for high at-risk concentrations
- Adequacy model includes capital maintenance and other annual capital improvements - CEIFA did not include
capital
- Geographic cost differences is updated by a new county-specific index using 2000 & 2005 census data
- Transportation aid provided using updated mileage and enrollment counts - pending updated work from
Executive County Superintendents
- As has been done under CEIFA, Local Fair Share determined by 50% equalized property value and
50% community income
- Since the release of the Report on the Cost of Education (Dec, 2006) the revised formula incorporates
the advice of Allan Odden, Tom Corcoran, Susanna Loeb & David Monk - all national education finance
experts to help develop fair, equitable and predictable funding formula for FY09
- The Administration hope is to find approximately $450 million increasing operational state aid for education
in FY09 to approximately $8.25 billion, though the Administration has not specified any funding source
- The Administration did not provide clear information on the overall transition time to the new funding formula
- Detailed district-by-district results and aid numbers are expected within 10 days
- The Administration plans to seek the State Supreme Court's approval to amend the Abbott v. Burke rulings
if this proposal is approved by the Legislature.
