an incentive for schools to share services. It would be especially harmful to the state's poorest school districts which
LOBBY DAY 2014
OPPOSE
Capping Expense-Based Aids to Public Schools The Council opposes the Executive Budget proposal to cap increases in BOCES, Transportation and Building Aid. The Executive Budget would impose harmful caps on certain expense-based School Aid formulas commencing with 2019-20 aid.
Again, the proposal would not take effect until 201920, but looking at projected 2018-19 aid gives a sense of the potential impact of the cap. The poorest 20 percent of the state’s school districts are projecting the greatest increases in BOCES Aid and therefore stand to be hurt most by the proposed cap.
Impact of Proposed Cap on BOCES Aid, if in Place for 2018-19 Aid ($51 million loss) % Change in BOCES Aid, Current Law
-6%
Districts grouped by Combined Wealth Ratio
1. BOCES Aid: Increases in BOCES Aid would be capped at no more than 2 percent of prior year spending. This cap on aid for Board of Cooperative Educational Services reimbursement would diminish an incentive for schools to share services. It would be especially harmful to the state’s poorest school districts which rely on BOCES shared services to provide opportunities for their students which they could not fund alone and to carry out mandated administrative functions at less cost to their taxpayers.
-4%
-2%
0%
2%
Total State
4%
6%
New York City (8th)
0.0%
1 - Poorest 10%
6.7%
2
5.4%
3
1.3%
4
0.2%
5
-0.3%
6
3.1%
7
10 - Wealthiest 10%
The poorest districts stand to lose the most.
0.1%
8 9
8%
1.9%
0.8% -2.7% -3.9%
The Combined Wealth Ratio measures district ability to fund schools from local sources based on both property wealth and resident income per pupil.. SOURCE: Council analysis of NYSED School Aid data.
At a time when BOCES are being called on more and more to provide career and technical education and other new career-opening and innovative opportunities, a cap on BOCES Aid would harm students. 2. Transportation Aid: Increases in Transportation Aid would also be capped at no more than 2 percent of prior year spending. This proposal ignores the fact that driving forces behind transportation cost increases have been state and federal initiatives and other costs outside of district control. The minimum wage has been increasing. New federal requirements for a Commercial Driver’s License have been implemented and this has shrunk the pool of drivers. Fuel costs have risen. New federal mandates on transporting homeless and foster child have been imposed. These are reasons many districts are anticipating increases in Transportation Aid of more than 2 percent for 2018-19. Over the preceding three years the statewide increase averaged 2.3 percent. The proposal would create distorting incentives for districts to attempt to keep their reimbursable expense increases always at 2 percent – not more, to avoid triggering aid losses from the caps, but also not less, so that they can maintain a higher base for future cap calculations. over, please…
N EW Y ORK S TATE C OUNCIL 7 Elk Street Albany, NY 12207-1002
OF
S CHOOL S UPERINTENDENTS
www.nyscoss.org
518/449-1063 Fax 518/426-2229
Oppose: Capping Expense-Based Aids February 2018
3. Building Aid: Although also framed as a 2 percent cap, the Building Aid cap would operate differently, pro-rating every districts’ aid down, if the statewide increase in that aid exceeds 2 percent in a year. Thus all districts could be hurt by the Building Aid cap – even if they restrain their own construction expenses, increases by other districts could trigger aid reductions. We estimate that if the cap were imposed for 2018-19, all districts except New York City would have their Building Aid reduced by approximately 3.8 percent. New York City would be exempt from this cap for projects approved prior to July 1, 2018. The property tax cap has impelled districts to carefully plan construction and attempt to smooth out local capital costs. The proposed Building Aid cap would make that vastly harder, perhaps impossible. It would also deprive district leaders of the ability to give voters any assurance that the state will reimburse a consistent share of a project’s costs – either proposed projects or those already underway. Part of Building Aid goes to reimbursing school districts’ annual debt service for projects approved years before. These are costs which districts have committed to and which the recent federal tax legislation limited their ability to reduce by refinancing. Accordingly, restricting future Building Aid now would pressure districts to either cut other expenses or increase local taxes. The Council strongly urges rejecting proposals to impose caps on expense-based aids.
