NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A344
SPONSOR: Paulin TITLE OF BILL:
An act to amend the state finance law, in relation to lottery aid formu-
las for school districts
PURPOSE:
To update the lottery aid distribution system to better align with the
foundation aid formula.
SUMMARY OF PROVISIONS:
Section 92-c (4), and the formula contained therein, are amended to
state that each eligible school district shall be entitled to an addi-
tional lottery grant equal to the result of multiplying the district's
total aidable foundation pupil units for the base year computed pursuant
to paragraph.g of subdivision two of section thirty-six hundred two of
the act by: Base Grant x regional cost index x pupil need index x aid
ratio.
The amended language further provides that the regional cost index shall
be the regional cost index defined in subparagraph 2 of paragraph a of
subdivision 4 of section thirty-six hundred two, and the pupil need
index shall be the pupil need index defined in subparagraph 3 of para-
graph a of subdivision 4 of section thirty-six hundred two, and the Aid
Ratio is equal to one minus the state sharing ratio for total foundation
aid as defined in paragraph g of subdivision 3 of section thirty-six
hundred two of the education law. Certain language is deleted, includ-
ing the statement that in no case shall a school district aid ratio
exceed one (1) or be less than minus one (-1).
JUSTIFICATION:
The antiquated lottery aid distribution system has not been changed
significantly in over 30 years. The formula does not reflect the reali-
ties of our communities today, and is unnecessarily confusing. While
the changes will not ultimately affect the bottom line amount of funding
received by school districts, this legislation will update the system by
which revenues are distributed to reflect the foundation aid formula. As
such, this legislation will make the law more current, clear and trans-
parent.
LEGISLATIVE HISTORY:
A288 2023 and 2024, referred to ways and means
A.3984 2021 and 2022, referred to ways and means
A.285 2019 and 2020, referred to ways and means
A.67 2017 and 2018, referred to ways and means
A.3849, 2015 and 2016 referred to ways and means
A.492, 2013 and 2014 referred to ways and means
A.9649, 2012 referred to ways and means
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
