SENATE PASSES LEGISLATION FOR $10 BILLION EDUCATION INCREASE

"LEARN" Plan Addresses CFE decision, Help High Needs Districts, NYC Capital Program, School Property Tax Relief & Accountability

Friday, June 18, 2004

The New York State Senate today passed the Leading Educational Achievement for Results Now (LEARN) Act, a blueprint for an historic investment in education of more than $10 billion that goes well beyond the Court�s requirement to provide an opportunity for a sound basic education in New York City to ensure that students statewide are provided the same opportunity. The bill will also provide for critically needed school property tax relief for homeowners and increased educational accountability.

"This is a complete plan that addresses every education concern including increased investment in education, distributing those dollars fairly to benefit children in New York City and throughout the state, increasing accountability to ensure the dollars are spent wisely and generate real results and providing a new benefit to school property taxpayers," Senate Majority Leader Joseph L. Bruno said. "New York already spends more money, per pupil, on education than any other state and our plan would increase total state support for schools to $15.2 billion. With the Senate�s plan, the court will know that we are providing children with the opportunity for a sound basic education and homeowners will know that we are giving them real property tax relief."

"LEARN is a realistic response to the Court of Appeals directive to provide the opportunity for a sound basic education in New York City Schools," Senator Stephen Saland (R-C, Poughkeepsie), Chairman of the Senate Education Committee, said. "It does so in a fashion that recognizes the educational needs of school districts statewide. It will provide accountability, while ensuring that children throughout our state will have the opportunity for a sound basic education."

Under the Senate plan, $762 million would flow to schools this year. Of that increase, $355 million would fund Sound Basic Education Grants. 

_________________________________________________________________________ 

 HIGHLIGHTS OF THE SENATE EDUCATION AID PLAN

INCREASED SCHOOL AID
The LEARN plan provides for an increase in State, federal and local aid to education of $6.29 billion over five years. Of that $6.29 billion, $4.74 billion would come from the state, representing a 33 percent increase in state aid to education.

Of the $4.74 million, $1.4 billion in new sound, basic education grants would be targeted for New York City and other high needs pupils throughout the state over the next five years to comply with the CFE court mandate.

An additional $2.5 billion would increase state support for critical education functions, including: operating aid, expense-based aids such as transportation, BOCES, special education and building aid, as well as funding for Teacher Centers, Teacher Support Aid, the Mentor-Intern program, and Teachers of Tomorrow, and to attract and retain teachers.

New York State is also expected to receive upwards of $1 billion in additional federal funding over the next five years to provide assistance to low performing schools of which New York City�s share is expected to be $515 million.

New York City would be required to provide a minimum of $554 million in additional local funds over five years through an enhanced Maintenance of Effort provision to supplement the new funds being directed to city schools.

In total, New York City schools would receive $2.83 billion in additional school aid under the Senate plan. Of those funds, $840 million would be supplied by new sound, basic education grants, $920 million in additional state operating aid, $515 million in federal funds and $554 million through an enhanced Maintenance of Effort.

SCHOOL PROPERTY TAX RELIEF
The LEARN plan includes a proposal to send $990 million in direct school property tax relief checks to eligible homeowners when phased in over five years, in addition to the current STAR exemption. The program would offset the effects of inflation on the original STAR program and replace regressive school property taxes with State broad-based tax revenues. By providing direct rebate checks after school taxes are paid, this enhancement does not disguise the immediate tax impact of a proposed school budget increase so that voters can make intelligent decisions on their public school spending plans.

The plan also provides an additional 30 percent increase in the STAR enhanced exemption for eligible Senior Citizens commencing in the 2005-06 school year, growing to 36 percent in 2009-10. Since the 2005-06 Rebate is based on the amount of STAR the eligible senior citizen received in 2004-05, the rebate checks will be mailed by October 31, 2005 to help pay the 2005-06 school tax bill. All other eligible homeowners receiving the basic STAR exemption will begin receiving STAR Rebate Checks in the fall of 2006 to equal 18 percent of the prior year�s basic exemption. This amount will grow to 25 percent in 2007-08, 30 percent in 2008-09 and 36 percent in 2009-10.

"It is critically important that school property tax relief be included in any education funding and reform plan because school property taxpayers are paying such a large part of the bill for providing quality education in our schools and that bill is going up every year," Senator Kenneth LaValle (R-C, Port Jefferson), said. "I have advocated strongly for school tax relief and the Senate plan would provide significant and direct relief to school property taxpayers."

NEW YORK CITY EMERGENCY CAPITAL PLAN
In order to provide New York City with the ability to address its currently distressed situation in regards to educational facilities, LEARN includes a provision that will allow New York City to issue up to $2.8 billion in additional debt beyond their current debt limit through the Transitional Finance Authority.

SCHOOL BUDGET REFORMS
To better equip district voters with the tools to knowledgeably vote on school budgets and other proposals, LEARN calls for several school budget reforms including requiring that bond resolution votes occur on the same day as the uniform school budget vote so as to ensure optimum publicity and voter turnout; and that along with the currently required presentation of the proposed budget at the budget hearing, a proposed contingent budget is also presented, along with a detailed list of any and all programs that would be reduced or cut under the proposed contingency budget.

INCREASED ACCOUNTABILITY
In addition, the LEARN plan creates a new Office of Educational Accountability within the State Education Department to provide academic and financial assistance and oversight to those districts or schools (including charter schools) failing to provide the opportunity for a sound basic education.

Failing schools would be required to work with district officials and SED to develop state approved comprehensive improvement plans to ensure that an adequate educational opportunity is being provided. SED would place master administrators in failing schools to provide direct state supervision over the implementation plan and to ensure an efficient expenditure of funds.

PAYING FOR THE PLAN
The Governor has proposed financing an increase in education through the use of funds generated by video lottery terminals. The Senate supports the use of these revenues to help pay the state�s share of the Senate�s education aid plan. In addition, one billion dollars in additional federal school aid would be used to fund the overall plan.

"No issue has been subject to more debate this year than funding for education," Senator Bruno said. "It is our priority and it will be addressed to the benefit of every student and every property taxpayer. But now that the Governor, Senate and Assembly all have detailed plans on the table for the court and the people to examine, we must aggressively move forward on a budget agreement as soon as possible that addresses all the issues we face."

####

[BIOGRAPHY] [DISTRICT MAP] [PHOTO GALLERY] [LEGISLATION] [CONSTITUENT SERVICES] [GUESTBOOK] [PRIVACY POLICY] [SENATE INSIDER] [CONTACT INFO] [HOME/NEWS]

Site Services by: L&P Media