Funded: State Policy Analysis

A Detailed Look at Each State's Funding Policies

Below, see summaries of the state’s education funding policy in each issue area. Click the Expand icon next to any summary to see more detail, if available, about that state’s policy regarding that issue area. Click the Citation icon
next to any summary to see the sources of the information regarding that issue area.
New York
Funding Basics
Formula Type

New York has a primarily student-based funding formula. It assigns a cost to the education of a student with no special needs or services, called a base amount. It then accounts for the additional cost of educating specific categories of students both by applying multipliers to that amount to generate supplemental funding for those students and by calculating supplemental funding amounts using formulas.

The categories of students generating supplemental funding in New York are low-income students, English language learners, students with disabilities, students enrolled in career and technical education programs, and students in sparsely populated districts.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Base Amount

New York has a fixed base funding amount. For FY2015, the per-student base amount was $6,451.

This means that an average student with no special needs or disadvantages would be funded at that level.

This amount is intended to reflect the average per student cost of general education instruction in a successful school district.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Expected Local Share

New York expects school districts to contribute revenue to their public schools. The amount each district is expected to raise is based on a combination of its property values and its residents’ income.

Each district must contribute the lesser of two per-pupil amounts, produced through two different formulas that both consider local property values and levels of local income.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Student Characteristics
Grade Level

New York does not differentiate funding based on students’ grade levels.

English Language Learner

New York provides increased funding for English language learners. It does so primarily in the form of supplemental per-pupil funding for districts in an amount that corresponds to the concentration of English language learners in the district.

In New York, the student-based funding calculated for each district is first multiplied by an index that adjusts for regional cost of living, and then by the Pupil Need Index, which is a compound adjustment that considers concentrations of English language learners along with concentrations of students from low income households and the sparsity of the school district. The portion of this index related to English language learners multiplies the number of such students in the district by 0.5, and then divides the result by the total K-12 enrollment of the district. This percentage plus one becomes the multiplier that is applied to the district’s cost-adjusted formula funding to provide for English language learners.

In addition, the state provides grants to support bilingual education programs.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Student Poverty

New York does not provide a standard, higher level of funding for individual students from low-income households. However, increased funding is provided on a sliding scale based on the concentration of low-income students in the district.  See “District Poverty” for a description of this allocation.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Special Education

New York funds special education using a single student weight system, providing the same amount of state funding for each student with disabilities, regardless of the severity of those disabilities. It does so by applying a multiplier of 2.41 to the per-student base amount for students with disabilities.

For the purposes of this supplemental funding calculation, student with disabilities are defined as those receiving special services or being educated in special environments for more than a given proportion of the school day or year. High Cost Aid is available when a district serves a student whose disability imposes costs exceeding the lesser of $10,000 or four times the approved operating expense per pupil from two years prior. The additional aid paid by the state takes into consideration the wealth of the local district, and therefore the ability of local residents to support these costs.

Pupils in their first year in a full-time, regular education program after having been in a special education program receive transitional funding at a level equal to the per-student base amount multiplied by 1.5.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Gifted

New York does not provide additional resources for gifted and talented students.

Career and Technical Education

New York provides specific funding for career and technical education (CTE) programs. It does so in accordance with a formula that takes into account a measure of the district’s wealth and the number of students participating in different CTE programs.

The formula only considers CTE students in grades 10-12, and funds those participating in trade, industrial, technical, agricultural or health programs at a higher level than those participating in business and marketing programs. The district’s wealth is considered in the formula through the use of its Combined Wealth Ratio, a measure of both property wealth and resident income. (See “District Poverty” for a description of this ratio.)

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Community Characteristics
District Poverty

New York provides increased funding to certain districts based on the concentrations of students from low-income households that they serve. It does so primarily in the form of supplemental per-pupil funding for districts in an amount that corresponds to this concentration.

In New York, the student-based funding calculated for each district is first multiplied by an index that adjusts for regional cost of living, and then by the Pupil Need Index, which is a compound adjustment that considers concentrations of students from low income households along with concentrations of English language learners and the sparsity of the school district. The portion of this index related to poverty adds together 65% of the students eligible for free or reduced-price lunch under the National School Lunch Program and 65% of the students from households below the federal poverty level, and then divides the result by the total K-12 enrollment of the district. This percentage plus one becomes the multiplier that is applied to the district’s cost-adjusted formula funding to provide for students from low-income households.

In addition, a district’s wealth is taken into account in the calculation of several program-based allocations. The Combined Wealth Ratio, an adjustment that takes into account both the value of the district’s property and the income of residents of the district, is considered in the calculation of program-based allocations, including aid for career and technical education programs, computer administration expenses, academic improvement initiatives, and high-cost special education services.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.
Sparsity and/or Small Size

New York provides increased funding for sparse school districts. It does so in the form of supplemental per-pupil funding for districts in an amount that corresponds to their levels of sparsity. The state also provides small school funding for schools with fewer than 8 teachers, and uses a transportation funding system that considers the density of students in the district.

In New York, the student-based funding calculated for each district is first multiplied by an index that adjusts for regional cost of living, and then by the Pupil Need Index, which is a compound adjustment that considers the sparsity of the district along with concentrations of English language learners and concentrations of students from low income households in the district.  The portion of this index related to sparsity considers the enrollment of the district and its number of students per square mile, producing a multiplier that is applied to the district’s cost-adjusted formula funding.

Transportation funding is provided through a formula that reimburses a percentage of each district's transportation costs. The percentage is informed in part by a calculation that subtracts the considers the number of students per square mile.

References:
New York State Education Department. 2014-15 State Aid Handbook. Albany, NY: New York State
Education Department, February 2, 2015.