New York

The state of New York completed final action on the budget for 2013–2014 (April 1–March 31) on March 28, 2013, and the governor completed his review on April 10, 2013.

The 2013–2014 enacted budget includes $21.1 billion in funding for general support for Public Schools (GSPS). The budget represents an increase of $942 million, or 4.7%, over the 2012–2013 budget. The two most significant components of the increase are the Gap Elimination Adjustment Restoration, which represents a $517 million increase, and an increase to foundation aid of $171 million.

Overview of the Revenue Situation in New York State

New York’s economic recovery in FY 2013 continued, with the major tax groups registering gains on an all funds basis compared with the prior year.

• • Personal income tax payments grew as the result of anticipated federal tax law changes.

• • Sales tax receipts increased by 1% (despite the full return of the clothing exemption) as consumer and business spending on taxable goods and services rose.

• • Business tax receipts registered another large annual gain.

• • Other tax receipts benefited from real estate gains taken in advance of federal tax law changes that took effect in 2013.

State Issues Affecting P–12

Teacher salaries and fringe benefits including pensions and health insurance in the state of New York are much higher than the national average. There is an ongoing effort in the state to increase teacher accountability for student performance. The provision to withhold the increase in 2013–2014 school aid for districts that do not obtain an State Education Department approved annual profession performance review (APPR) plan by September 1, 2013, was eliminated after six school districts, including the New York City Schools, were unable to reach an agreement and finalize an approved APPR plan for the 2012–2013 school year.

School Tax Relief Program

The star program provides school tax relief to taxpayers. The three components of star, and their approximate shares in the 2013–2014 budget, are:

• • The basic school property tax exemption for homeowners with income under $500,000 (55%)

• • The enhanced school property tax exemption for senior citizen homeowners with income under $79,050 (27%)

• • A flat refundable credit and rate reduction for income-eligible New York City resident personal income taxpayers (18%)

Higher Education

The 2013–2014 enacted budget provides an all funds appropriation of $9.6 billion for the State University of New York (SUNY) and an appropriation of $3.8 billion for the City University of New York (CUNY). The enacted budget increases base aid for Community Colleges for SUNY by $21.5 million and CUNY by $9.3 million to increase support by $150 per full-time equivalent student, raising base aid from $2,122 to $2,272 per full-time equivalent student.

Funding Priorities/Trends for P–12 and Higher Education

There are 676 major elementary and secondary school districts in the state of New York. State funding is provided to districts based on statutory aid formulas and through reimbursement of categorical expenses. There are 64 suny campuses, including SUNY community colleges. There are 24 cuny campuses, including cuny community colleges.

The budget includes an additional $75 million of competitive grant funding, which is provided for several key initiatives recommended by the New NY Education Reform Commission. These grants include:

• • $25 million for pre kindergarten education

• • $20 million for extending the school day grants for school districts that increase academic learning time by 25%, through an extended school day, additional school days, or a combination of both

• • $15 million for Community Schools (The budget provides funding to Community Schools to support programs designed to transform schools into community schools by integrating social, health, and other services, as well as after-school programs.)

• • $11 million to reward high-achieving math and science teachers to incentivize excellence in teaching (An additional change the State Education Department wants to implement is the passage of the “bar exam” to receive teacher certifications. The 2013–2014 budget strives to hold teachers accountable for student achievement, thus incorporating teacher performance with more rigorous standards for teacher certification.)

• • $4 million for the continuation and expansion of...