A11692

                STATE OF NEW YORK
        ________________________________________________________________________

                                          11692

                   IN ASSEMBLY

                                      June 18, 2004
                                       ___________

        Introduced  by  COMMITTEE  ON  RULES  -- (at request of M. of A. Silver,
          Sanders, Farrell, Tokasz, Abbate, Arroyo, Aubertine, Aubry,  Benjamin,
          Bing,  Boyland, Brennan, Brodsky, Cahill, Canestrari, Carrozza, Chris-
          tensen, Clark, A. Cohen, M. Cohen, Colton, Cook,  Cusick,  Cymbrowitz,
          DelMonte,  Destito,  L. Diaz, R. Diaz, Dinowitz, Eddington, Espaillat,
          Fields, Galef, Gianaris, Glick, Gottfried, Grannis, Grodenchik,  Hoop-
          er,  Hoyt, Jacobs, Kaufman, Lafayette, Lavelle, Lentol, Lifton, Lopez,
          Magee, Magnarelli,  Markey,  McEneny,  McLaughlin,  Millman,  Morelle,
          Nolan,  Norman,  O'Donnell,  Ortiz,  Paulin,  Peoples, Peralta, Perry,
          Pheffer, Powell, Pretlow, Ramos, P. Rivera, Robinson,  Seddio,  Sidik-
          man,  Smith,  Stringer,  Titus,  Tonko,  Towns, Weinstein, Weisenberg,
          Wright) -- read once and referred to the Committee on Education

        AN ACT to amend the education law, in relation to  the  calculation  and
          payment of state aid; to amend the public authorities law, in relation
          to  public  school  districts;  authority financing of eligible school
          construction projects; building aid for a sound education  (BASE);  to
          amend the state finance law and the tax law, in relation to the estab-
          lishment  of the state video lottery fund; to amend chapter 756 of the
          laws of 1992 relating to funding a  program  for  workforce  education
          conducted  by the consortium for worker education in New York city, in
          relation to the effectiveness thereof; to amend chapter 93 of the laws
          of 2002 amending the education law relating to  aid  for  teachers  of
          tomorrow  recruitment and retention program, in relation to the effec-
          tiveness thereof; to amend chapter 405 of the laws of 1999 relating to
          amending the real property tax law and other laws relating to  improv-
          ing  the administration of the school tax relief (STAR) program relat-
          ing to school aid, in relation to the effectiveness thereof;  relating
          to  school  bus  driver  training;  Fort  Drum school district grants;
          learning technology grants; general support of public schools;  bilin-
          gual  education  grants;  grants for teacher support; special academic
          improvement grants; teachers for tomorrow

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD18497-01-4

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     1    Section  1.  Clause (d) of subparagraph (i) of paragraph y of subdivi-
     2  sion 1 of section 3602 of the education law, as added by  section  6  of
     3  part  A2  of  chapter  62  of  the  laws  of 2003, is amended to read as
     4  follows:
     5    (d)  for  aid payable in the two thousand three--two thousand four and
     6  two thousand four--two thousand five school [year] years, the product of
     7  the aid selected pursuant to clause one of subparagraph b  of  paragraph
     8  six  of  subdivision nineteen of this section in the base year and nine-
     9  ty-five hundredths.
    10    § 2. Subdivision 1 of section 3602 of the education law is amended  by
    11  adding a new paragraph bb to read as follows:
    12    bb. "regional cost index" for the purposes of this section, shall mean
    13  a  statewide  index reflecting regional variances in the cost of profes-
    14  sional labor not associated with the teaching  professions,  established
    15  by  the  commissioner  for multi-county labor force regions to be deter-
    16  mined by the commissioner and based on representative wage data from the
    17  Occupational Employment Statistics survey provided by the New York state
    18  bureau of labor statistics. The unadjusted regional cost index shall  be
    19  the  product  of  the  weighted  median  annual wage for the labor force
    20  region divided by the weighted median annual wage for  New  York  state,
    21  calculated  to  three  decimal  places  without  rounding,  and shall be
    22  updated triennially in accordance with the data collection cycle of  the
    23  occupational employment statistics survey. The regional cost index shall
    24  be  the  product  of  the  unadjusted regional cost index divided by the
    25  lowest unadjusted regional cost index for any labor force region  within
    26  the  state, calculated to three decimal places without rounding, but not
    27  less than one.
    28    § 3. Clause (a) of subparagraph 3 of paragraph e of subdivision  6  of
    29  section  3602 of the education law, as amended by section 9-a of part A2
    30  of chapter 62 of the laws of 2003, is amended to read as follows:
    31    (a) For the purposes of calculating the apportionments  payable  to  a
    32  school  district  other than the city school district of the city of New
    33  York pursuant to this  subdivision  for  any  debt  service  related  to
    34  projects approved by the commissioner on or after the later of the first
    35  day  of  December,  two  thousand one or thirty days after the date upon
    36  which this subparagraph shall have become a law, or for any debt service
    37  related to projects approved by the  commissioner  prior  to  such  date
    38  where  a bond, capital note or bond anticipation note is first issued on
    39  or after such date to fund such project or for lease-purchase  or  other
    40  annual payments under a lease-purchase agreement or an equivalent agree-
    41  ment  entered  into  on or after the later of the first day of December,
    42  two thousand one or thirty days after the date upon which this  subpara-
    43  graph  shall have become a law that are eligible for aid under the open-
    44  ing paragraph of this subdivision, current  year  approved  expenditures
    45  for  debt  service  shall  mean  debt service or lease-purchase or other
    46  annual payments under a lease-purchase agreement or an equivalent agree-
    47  ment that would be incurred during the current year based on an  assumed
    48  amortization  to  be  established  by  the commissioner pursuant to this
    49  subparagraph of the approved project costs to be financed related to any
    50  such approved project, for a period of:
    51    (i) thirty years if the project is for the construction or acquisition
    52  of a new school building,
    53    (ii) twenty years if the project is for the construction of  an  addi-
    54  tion  to  a school building or for the reconstruction, rehabilitation or
    55  improvement of a school building for which a period of probable  useful-

        A. 11692                            3

     1  ness  of  twenty or more years is assigned pursuant to the local finance
     2  law, and
     3    (iii) fifteen years if the project is for the reconstruction, rehabil-
     4  itation or improvement of a school building for which a period of proba-
     5  ble  usefulness  of  less  than twenty years is assigned pursuant to the
     6  local finance law.
     7    Provided, however, that, notwithstanding any provision of law  to  the
     8  contrary,  for aid payable in the two thousand three---two thousand four
     9  school year, for any project which  is  eligible  for  an  apportionment
    10  pursuant  to  this  subparagraph,  but  which did not yet have a certif-
    11  ication that a general construction contract had been awarded  for  such
    12  project  by  the  district  on file with the commissioner as of February
    13  fifteenth, two thousand three, such debt service  or  lease-purchase  or
    14  other  annual payments under a lease-purchase agreement or an equivalent
    15  agreement that would be incurred during the current  year  based  on  an
    16  assumed  amortization  to be established by the commissioner pursuant to
    17  this subparagraph of the approved project costs to be financed shall not
    18  be current year approved expenditures for debt  service,  but  shall  be
    19  deemed to be debt service on new bonds and capital notes aidable in July
    20  following the current year pursuant to clause (b) of subparagraph one of
    21  paragraph f of this subdivision.
    22    Provided,  however,  that, notwithstanding any provision of law to the
    23  contrary, for aid payable in the two thousand  four--two  thousand  five
    24  school  year,  for  any  project  which is eligible for an apportionment
    25  pursuant to this subparagraph, but which did  not  yet  have  a  certif-
    26  ication  that  a general construction contract had been awarded for such
    27  project by the  district  on  file  with  the  commissioner  as  of  May
    28  fifteenth of the base year, such debt service or lease-purchase or other
    29  annual payments under a lease-purchase agreement or an equivalent agree-
    30  ment  that would be incurred during the current year based on an assumed
    31  amortization to be established by  the  commissioner  pursuant  to  this
    32  subparagraph  of  the approved project costs to be financed shall not be
    33  current year approved expenditures for debt service, but shall be deemed
    34  to be debt service on new  bonds  and  capital  notes  aidable  in  July
    35  following the current year pursuant to clause (b) of subparagraph one of
    36  paragraph f of this subdivision.
    37    §  4. Subparagraph 1 of paragraph a of subdivision 6-d of section 3602
    38  of the education law, as amended by section 18 of part H of  chapter  83
    39  of the laws of 2002, is amended to read as follows:
    40    (1) Moneys appropriated to the department for the extraordinary school
    41  capital needs program for New York city shall be used in accordance with
    42  the provisions of this subdivision. In addition to apportionments other-
    43  wise provided by this section, for aid payable in the school years nine-
    44  teen  hundred  ninety-eight--ninety-nine  through [two thousand two--two
    45  thousand three] two thousand four--two thousand five,  the  commissioner
    46  may  annually  approve an application from the board of education of the
    47  city school district of the city of New York for funds in an amount  not
    48  to  exceed  thirty-three  million three hundred thirty thousand dollars,
    49  and for aid payable in the [two thousand three--two thousand  four]  two
    50  thousand  five--two thousand six school year and thereafter, the commis-
    51  sioner may approve an application from the board  of  education  of  the
    52  city  school district of the city of New York for funds in an amount not
    53  to  exceed  fifty-three  million  three  hundred  twenty-eight  thousand
    54  dollars,  to  repair  public  instructional  school  facilities based on
    55  priorities set by each community school district superintendent and,  in

        A. 11692                            4

     1  the  case  of high schools and special education buildings, the chancel-
     2  lor, in New York city.
     3    §  5. Subparagraph 1 of paragraph b of subdivision 6-d of section 3602
     4  of education law, as amended by section 18 of part H of  chapter  83  of
     5  the law of 2002, is amended to read follows:
     6    (1) Moneys appropriated to the department for the extraordinary school
     7  capital  needs  program  for  school  districts outside of New York city
     8  shall be used in accordance with the provisions of this subdivision.  In
     9  addition  to  apportionments otherwise provided by this section, for aid
    10  payable in the school years nineteen  hundred  ninety-eight--ninety-nine
    11  through  [two  thousand  two--two thousand three] two thousand four--two
    12  thousand five, the commissioner may annually approve an application from
    13  each school district in the state, except for the city  school  district
    14  of  the  city  of  New  York,  for an apportionment of aid for repair of
    15  public instructional school facilities under this subdivision,  the  sum
    16  of  which  shall not exceed sixteen million six hundred seventy thousand
    17  dollars for any school year, and for aid payable in the school year [two
    18  thousand three--two thousand four] two thousand five--two  thousand  six
    19  and  thereafter,  the  commissioner may approve an application from each
    20  school district in the state, except for the city school district of the
    21  city of New York, for an apportionment  of  aid  for  repair  of  public
    22  instructional school facilities under this subdivision, the sum of which
    23  shall  not  exceed  twenty-six  million six hundred seventy-two thousand
    24  dollars. Notwithstanding  any  provision  of  this  subdivision  to  the
    25  contrary,  the commissioner shall develop an expedited application proc-
    26  ess for school districts with apportionments of aid for repair  of  less
    27  than twenty-five thousand dollars.
    28    §  6.  Paragraph c of subdivision 6-d of section 3602 of the education
    29  law, as amended by section 10 of part A2 of chapter 62 of  the  laws  of
    30  2003, is amended to read as follows:
    31    c.  In the event the appropriation for purposes of this subdivision in
    32  any year is insufficient to pay all claims  received  pursuant  to  this
    33  subdivision,  the commissioner shall pay such claims on a prorated basis
    34  among all districts  filing  such  claims  until  the  appropriation  is
    35  exhausted.  For  aid payable in the nineteen hundred ninety-eight--nine-
    36  ty-nine through the [two thousand three--two thousand four] two thousand
    37  four--two thousand five school years, the aid payable pursuant  to  this
    38  subdivision  shall  not  exceed fifty million dollars ($50,000,000), and
    39  for the [two thousand four--two thousand five]  two  thousand  five--two
    40  thousand six school year and thereafter the aid payable pursuant to this
    41  subdivision shall not exceed eighty million dollars ($80,000,000).
    42    § 7. Paragraphs c and d of subdivision 7 of section 3602 of the educa-
    43  tion  law,  paragraph c as amended by section 20 of part H of chapter 83
    44  of the laws of 2002 and paragraph d as amended by section 41 of  part  C
    45  of  chapter 58 of the laws of 1998, are amended and a new paragraph e is
    46  added to read as follows:
    47    c. For the purposes of computing this apportionment for the two  thou-
    48  sand  five--two thousand six school year and thereafter, approved trans-
    49  portation capital, debt service, and lease expense shall be the [actual]
    50  amount computed based upon an assumed amortization  determined  pursuant
    51  to  paragraph  e  of  this  subdivision for an expenditure incurred by a
    52  school district and approved by the  commissioner  for  those  items  of
    53  transportation  capital,  debt service and lease expense allowable under
    54  subdivision two of section thirty-six  hundred  twenty-three-a  of  this
    55  article  for:  (i) the regular aidable transportation of pupils, as such
    56  terms are defined in sections thirty-six hundred twenty-one and  thirty-

        A. 11692                            5

     1  six  hundred  twenty-two-a  of  this article, (ii) the transportation of
     2  children with disabilities pursuant to article eighty-nine of this chap-
     3  ter, and (iii) the transportation of homeless children pursuant to para-
     4  graph  c  of subdivision four of section thirty-two hundred nine of this
     5  chapter, provided that the total approved cost  of  such  transportation
     6  shall not exceed the amount of the total cost of the most cost-effective
     7  mode  of  transportation. Approvable expenses for the purchase of school
     8  buses shall be limited to the actual purchase price, or the  expense  as
     9  if  the  bus  were purchased under state contract, whichever is less. If
    10  the commissioner determines that no comparable bus was  available  under
    11  state contract at the time of purchase, the approvable expenses shall be
    12  the  actual purchase price or the state wide median price of such bus in
    13  the most recent base year in which such  median  price  was  established
    14  with  an  allowable  year to year CPI increase as defined in subdivision
    15  fourteen of section three hundred five of  this  chapter;  whichever  is
    16  less. Such median shall be computed by the commissioner for the purposes
    17  of this subdivision. Commencing with aid payable in the nineteen hundred
    18  ninety-six--ninety-seven  school  year,  no  aid shall be payable in the
    19  current year for costs incurred for the purchase or lease  of  a  school
    20  bus  in  the base year unless (i) such costs were budgeted by the school
    21  district and so reported to the commissioner by  November  fifteenth  of
    22  the  base year or (ii) such costs were incurred on an emergency basis to
    23  replace a school bus that has been rendered unusable  due  to  accident,
    24  fire  or  other similar circumstance, and such emergency and the cost of
    25  such replacement were reported to the commissioner within sixty days  of
    26  such  replacement; provided, however, that nothing herein shall prohibit
    27  the district from claiming aid for such purchase or lease  of  a  school
    28  bus  in the year following the current school year as if such costs were
    29  approved transportation expense incurred during the current year for the
    30  purposes of paragraph a of this subdivision and to the extent that  such
    31  costs  are  identified  to  the  commissioner  by  November first of the
    32  current year.
    33    d.  In  determining  approved  transportation  operating  expense  for
    34  district-owned  transportation and approved transportation capital, debt
    35  service and lease expense pursuant to paragraphs b [and],  c  and  e  of
    36  this  subdivision  and  part two of this article, the commissioner shall
    37  make a deduction from the total transportation expense for the transpor-
    38  tation of nonallowable pupils, and for that portion of the total  annual
    39  mileage of district-owned school buses that is not aidable because it is
    40  not included in the total annual allowable mileage as defined in section
    41  thirty-six hundred twenty-one of this article, provided that such calcu-
    42  lations  shall  be made pursuant to regulations of the commissioner, and
    43  further provided that such regulations shall provide for an exclusion of
    44  pupil miles for transportation provided on a  space-available  basis  to
    45  pupils  attending an approved universal prekindergarten program pursuant
    46  to section thirty-six hundred two-e of this article that does not result
    47  in additional transportation costs.
    48    e. In determining approved transportation capital,  debt  service  and
    49  lease expense for aid payable in the two thousand five--two thousand six
    50  school  year  and  thereafter,  the  commissioner,  after  applying  the
    51  provisions of paragraph c of this subdivision  to  such  expense,  shall
    52  establish  an  assumed amortization pursuant to this paragraph to deter-
    53  mine the approved capital, debt service and lease expense of the  school
    54  district  that is aidable in the current year, whether or not the school
    55  district issues debt for such expenditures,  subject  to  any  deduction
    56  pursuant  to  paragraph d of this subdivision. Such assumed amortization

        A. 11692                            6

     1  shall be for a period equal to the useful life  of  the  school  bus  or
     2  equipment  up  to seven years and shall commence twelve months after the
     3  school district enters into a purchase contract,  lease-purchase  agree-
     4  ment  or  lease of the school bus or equipment or a general contract for
     5  the construction, reconstruction, lease or purchase of a  transportation
     6  storage  facility  or  site in an amount less than ten thousand dollars;
     7  except that where expenses were incurred for the purchase or lease of  a
     8  school  bus  or  equipment or the construction, reconstruction, lease or
     9  purchase of a transportation storage facility  or  site  prior  to  July
    10  first,  two  thousand five and debt service was still outstanding or the
    11  lease was still in effect as of  such  date,  the  assumed  amortization
    12  shall commence as of July first, two thousand five and the period of the
    13  amortization  shall  be  for  the  remaining  maximum useful life of the
    14  school bus or equipment as of such date, as determined  by  the  commis-
    15  sioner, or the remaining term of the lease as of such date. Such assumed
    16  amortization  shall  provide  for equal semiannual payments of principal
    17  and interest based on  an  assumed  interest  rate  established  by  the
    18  commissioner  pursuant  to this paragraph. By the first day of September
    19  of the current year commencing with the two thousand four--two  thousand
    20  five school year, each school district shall provide to the commissioner
    21  in a format prescribed by the commissioner a separate amortization sche-
    22  dule  for all amortized debt incurred by such school district during the
    23  preceding school year for expenses allowable pursuant to subdivision two
    24  of section thirty-six hundred twenty-three-a of this article.  Based  on
    25  such  reported amortizations and a methodology prescribed by the commis-
    26  sioner in regulations, the commissioner shall compute an assumed  inter-
    27  est  rate  that shall equal the average of the interest rates applied to
    28  all such debt issued during  the  preceding  school  year.  The  assumed
    29  interest  rate  shall be tentatively established as the interest rate of
    30  each such school  district  applicable  to  the  current  year  for  the
    31  purposes  of  this paragraph and shall be expressed as a decimal to five
    32  places rounded to the nearest eighth of one-one  hundredth  except  that
    33  all  apportionments of aid payable during the current year based on such
    34  assumed interest rate shall be recalculated in the  following  year  and
    35  adjusted  as  appropriate based on the appropriate assumed interest rate
    36  then established pursuant to this paragraph.
    37    § 8. Subdivision 12-b of section 3602 of the education law is  amended
    38  by adding a new paragraph c to read as follows:
    39    c. Notwithstanding any other provision of law to the contrary, in lieu
    40  of  aid  payable  pursuant  to  paragraph  d of subdivision fourteen and
    41  subdivisions twelve,  thirteen,  sixteen,  twenty,  twenty-one,  twenty-
    42  three,  twenty-six-a,  thirty-two,  thirty-eight and thirty-nine of this
    43  section in the two thousand four--two  thousand  five  school  year  and
    44  thereafter,  each school district shall be entitled to receive an amount
    45  equal to the greater of the amounts computed  pursuant  to  subparagraph
    46  (i),  (ii)  or  (iii) of this paragraph, provided, however, that for aid
    47  payable in the two thousand four--two  thousand  five  through  the  two
    48  thousand  seven--two  thousand  eight school years, no district shall be
    49  eligible to receive an amount in excess of the product of the base  year
    50  equivalent amount and the adequacy adjustment index to be adjusted annu-
    51  ally and pursuant to an appropriation.
    52    (i)  Computation  of  formula  operating aid. The apportionment to any
    53  school district hereunder shall be computed by multiplying the needs-ad-
    54  justed formula operating aid ceiling by the comprehensive operating  aid
    55  sharing  ratio with the product multiplied by the district's total aida-
    56  ble pupil count.

        A. 11692                            7

     1    (ii) Computation of alternate operating  aid.  The  apportionment  for
     2  alternate  operating  aid  shall be equal to the product of five hundred
     3  dollars and the district's total aidable pupil count.
     4    (iii)  The  sum of the base year equivalent amount and the quotient of
     5  the sum of the aids payable pursuant to this subdivision, paragraph e of
     6  subdivision twelve, paragraph d of subdivision  fourteen,  and  subdivi-
     7  sions  thirteen,  twenty-one, thirty-two and thirty-nine of this section
     8  in the two thousand three-two thousand four school year, divided by  one
     9  hundred.
    10    (iv)  Computation  of total aidable pupil count and total wealth pupil
    11  count. (A) "Average daily membership" shall mean the possible  aggregate
    12  attendance of all pupils in attendance in the school district, including
    13  possible  aggregate  attendance  for  such  pupils  receiving  homebound
    14  instruction for all or part of the school year including pupils  receiv-
    15  ing instruction through a two-way telephone communication system for all
    16  or  part  of  the school year, with the possible aggregate attendance of
    17  such pupils  in  one-half  day  kindergartens  multiplied  by  one-half,
    18  divided  by  the  number  of  days the district school was in session as
    19  provided in this section. The full time equivalent enrollment of  pupils
    20  with  disabilities  attending  under  the  provisions  of paragraph c of
    21  subdivision two of section forty-four hundred one of this chapter  shall
    22  be  added  to average daily membership. Equivalent attendance shall mean
    23  the quotient of the total number of  student  hours  of  instruction  in
    24  programs  in  a public school of a school district or a board of cooper-
    25  ative educational services leading to a high school diploma  or  a  high
    26  school equivalency diploma as defined in regulations of the commissioner
    27  for  pupils  under  the  age  of  twenty-one not on a regular day school
    28  register of the district,  divided  by  one  thousand.    Average  daily
    29  membership  shall  include  the  equivalent  attendance  of  the  school
    30  district. For the purposes of secondary school  weighting,  such  equiv-
    31  alent  attendance  shall  be  considered  as average daily membership in
    32  grades seven through twelve. In any instance where a pupil is a resident
    33  of another state or an Indian pupil is a resident of any  portion  of  a
    34  reservation  located  wholly  or  partly within the borders of the state
    35  pursuant to subdivision four of section forty-one hundred  one  of  this
    36  chapter  or  a pupil is living on federally owned land or property, such
    37  pupil's possible aggregate attendance shall be counted as  part  of  the
    38  possible aggregate attendance of the school district in which such pupil
    39  is enrolled.
    40    (B)  Computation of total aidable pupil counts for operating aid paya-
    41  ble in the two thousand four--two thousand five school year  and  there-
    42  after.    A  district's  total  aidable  pupil  count for the purpose of
    43  computing operating aid shall be the greater of:
    44    (1) the sum of (a) the product of the district's average daily member-
    45  ship computed pursuant to this section for the year prior  to  the  base
    46  year  and the enrollment index computed pursuant to this section for the
    47  base year plus (b) the product of twenty-five per  centum,  the  average
    48  daily  membership  in  grades seven through twelve for the year prior to
    49  the base year, excluding the full time equivalent enrollment  of  pupils
    50  who  receive  a  weighting  for handicapping conditions except for those
    51  pupils, if any, for whom a weighting of thirteen-hundredths is  provided
    52  in  clause  four of subparagraph b of paragraph one of subdivision nine-
    53  teen of this section, and the enrollment index computed pursuant to this
    54  section for the base year, (c) the product of the average daily  member-
    55  ship  of  summer  session pupils and twelve percent and (d) the product,
    56  computed to the nearest whole number without  rounding,  of  twenty-five

        A. 11692                            8

     1  percent  and  the  product, computed to the nearest whole number without
     2  rounding, of the percentage of pupils  with  special  educational  needs
     3  calculated  pursuant  to  paragraph e of subdivision one of this section
     4  and the district's average daily membership, or
     5    (2) the average of the total aidable pupil counts computed pursuant to
     6  subclause one of this clause for the current year and the base year.
     7    (C) Computation of total wealth pupil counts for operating aid payable
     8  in  the two thousand four--two thousand five school year and thereafter.
     9  A district's total wealth pupil count for the purpose of computing oper-
    10  ating aid shall be the sum of (1) the average daily membership  for  the
    11  year  prior  to the base year as computed in this section, (2) the full-
    12  time equivalent enrollment of resident pupils  attending  public  school
    13  elsewhere,  less  the  full-time  equivalent  enrollment  of nonresident
    14  pupils, (3) the  full-time  equivalent  enrollment  of  resident  pupils
    15  attending  full-time  in  board of cooperative educational services (not
    16  otherwise specifically included), (4) the  product  of  twenty-five  per
    17  centum,  the average daily membership in grades seven through twelve for
    18  the year prior to the base  year,  excluding  the  full-time  equivalent
    19  enrollment of pupils who receive a weighting for handicapping conditions
    20  except  for  those pupils, if any, for whom a weighting of thirteen-hun-
    21  dredths is provided in clause four of subparagraph b of paragraph one of
    22  subdivision nineteen of this section, and the enrollment index  computed
    23  pursuant to this section for the base year, (5) the product, computed to
    24  the  nearest  whole  number without rounding, of twenty-five percent and
    25  the product, computed to the nearest whole number without  rounding,  of
    26  the  percentage  of  pupils  with  special  educational needs calculated
    27  pursuant to paragraph e of subdivision one of this section and the aver-
    28  age daily membership of resident pupils of the  district  for  the  year
    29  prior  to  the  base  year,  and  (6)  the weighted full-time equivalent
    30  enrollment of resident pupils with handicapping conditions. Native Amer-
    31  ican pupils of a reservation attending public school, or  pupils  living
    32  on the United States military reservation at West Point attending public
    33  school,  shall be deemed to be resident pupils of the district providing
    34  such school, for purposes of this paragraph.   Where a  school  district
    35  has  entered  into a contract with state university pursuant to subdivi-
    36  sion two of section three hundred fifty-five of this chapter under which
    37  the school district makes payment in  the  nature  of  tuition  for  the
    38  education  of  certain  children residing in the district, such children
    39  for whom such tuition payments are made shall be deemed to  be  resident
    40  pupils of such district for the purposes of this paragraph.
    41    (1)  In determining the total wealth pupil counts for operating aid of
    42  a component school district  of  a  central  high  school  district  for
    43  computing  aid ratios the total wealth pupil counts for operating aid of
    44  high school pupils residing in such component district and attending the
    45  central high school shall be included. The total wealth pupil counts for
    46  operating aid of a central high school district itself shall be the  sum
    47  of  the  total  wealth  pupil counts for operating aid of each component
    48  school district.
    49    (2) Notwithstanding the foregoing provisions of this subdivision, when
    50  a school district shall experience an increase  in  total  wealth  pupil
    51  counts  for operating aid during the current year because of the closing
    52  in whole, or in part, of a nonpublic school or a  campus  school,  or  a
    53  school previously operated by the United States government on the United
    54  States  military reservation at West Point, the commissioner, in comput-
    55  ing any aid ratio of such district, shall permit the use of  such  addi-
    56  tional  total  wealth  pupil counts for operating aid during the current

        A. 11692                            9

     1  year and the next succeeding year, provided that such  additional  total
     2  wealth  pupil  counts for operating aid attributable to such closing, or
     3  part thereof, shall be in excess  of  one  hundred  students;  provided,
     4  however,  that such district which qualifies for an increase in resident
     5  weighted average daily attendance pursuant to paragraph g of subdivision
     6  two of this section, shall use the increase in total wealth pupil counts
     7  for operating aid, even if such increase in total  wealth  pupil  counts
     8  for operating aid is less than one hundred.
     9    (v) Computation of aid ratios. (A) For the purposes of this paragraph,
    10  "selected  valuation"  shall mean the lesser (1) of the actual valuation
    11  as defined pursuant to paragraph c of subdivision one  of  this  section
    12  for  the  current  year or (2) the average of such actual valuations for
    13  the current year and the base year.
    14    (B) "Property wealth index" shall mean the number  computed  to  three
    15  decimals  without  rounding  obtained  when  the selected valuation of a
    16  school district divided by the total wealth pupil count  is  divided  by
    17  the statewide average selected valuation per total wealth pupil count as
    18  computed  by  the commissioner in accordance with the provisions of this
    19  section. Such statewide average  selected  valuation  per  total  wealth
    20  pupil  count  shall  be established each year by the commissioner in the
    21  same time and in the same manner as the statewide average  actual  valu-
    22  ation per total wealth pupil unit established pursuant to paragraph i of
    23  subdivision  one of this section. Such statewide average shall be trans-
    24  mitted to the school districts.  Such statewide average shall be rounded
    25  to the nearest hundredth and shall include the  selected  valuation  and
    26  total  wealth  pupil  counts  of  all  school districts eligible for aid
    27  pursuant to this section except central high school districts.  For  the
    28  purposes  of  calculating  such  statewide average the data for the city
    29  school district of the city of New York shall be citywide data.
    30    (C) "Income wealth index" shall mean  the  number  computed  to  three
    31  decimals  without  rounding obtained when the adjusted gross income of a
    32  school district for the calendar year two years prior  to  the  calendar
    33  year  in  which  the  base  year began divided by the total wealth pupil
    34  count of such district is divided by the statewide adjusted gross income
    35  per total wealth pupil count. Such statewide average  gross  income  per
    36  pupil  shall  be  established each year by the commissioner and shall be
    37  transmitted to school districts. For the purposes of this paragraph, the
    38  income data shall be the income data computed in accordance  with  para-
    39  graph k of subdivision one of this section. Such statewide average shall
    40  be rounded to the nearest hundredth and shall include the adjusted gross
    41  income  and  total  wealth pupil counts of all school districts eligible
    42  for aid pursuant to this section except central high  school  districts.
    43  For  the purposes of calculating such statewide average the data for the
    44  city school district of the city of New York shall be citywide data.
    45    (D) "Fiscal capacity index" shall mean the number  computed  to  three
    46  decimals without rounding obtained when fifty per centum of the property
    47  wealth index is added to fifty per centum of the income wealth index.
    48    (E)  "Comprehensive  operating  aid sharing ratio" shall be the higher
    49  of:
    50    (1)  a  value  computed  by  subtracting  from  one  and  thirty-seven
    51  hundredths the product obtained by multiplying the fiscal capacity index
    52  by one and twenty-three hundredths; or
    53    (2)  a  value computed by subtracting from one the product obtained by
    54  multiplying the fiscal capacity index by sixty-four hundredths; or

        A. 11692                           10

     1    (3) a value computed by subtracting from eighty hundredths the product
     2  obtained  by  multiplying  the  fiscal  capacity  index  by  thirty-nine
     3  hundredths; or
     4    (4)  a  value  computed  by  subtracting from fifty-one hundredths the
     5  product obtained by multiplying the fiscal capacity index by  twenty-two
     6  hundredths.
     7    Such  results  shall be expressed as a decimal carried to three places
     8  without rounding, but shall not be greater than  ninety  hundredths  nor
     9  less than zero.
    10    (vi)  Computation  of  pupil  needs index. The pupil needs index shall
    11  equal the sum of (A) the percent of eligible applicants for the free and
    12  reduced price lunch program as  computed  pursuant  to  paragraph  p  of
    13  subdivision  one  of  this  section,  (B)  the  quotient of the positive
    14  remainder of twenty-five minus the enrollment per square mile divided by
    15  fifty-eight as computed pursuant to subparagraph (ii) of paragraph r  of
    16  subdivision one of this section, and (C) eight tenths.  For the purposes
    17  of  calculating  such index the data for the city school district of the
    18  city of New York shall be citywide data.
    19    (vii) Computation of the needs-adjusted formula operating aid ceiling.
    20  The needs-adjusted formula aid ceiling shall equal the  product  of  (A)
    21  the product of the regional cost index computed pursuant to paragraph bb
    22  of  subdivision one of this section multiplied by the pupil needs index,
    23  expressed as a decimal carried to three places without rounding,  multi-
    24  plied  by  (B)  four  thousand five hundred four dollars, expressed as a
    25  decimal carried to two places without rounding.
    26    (viii) "base year equivalent amount" for the  two  thousand  four--two
    27  thousand  five school year shall mean the sum of the aids payable pursu-
    28  ant to this subdivision, paragraph e of subdivision twelve, paragraph  d
    29  of  subdivision fourteen, and subdivisions thirteen, twenty-one, thirty-
    30  two and thirty-nine of this section in the two thousand three--two thou-
    31  sand four school year, and for the two thousand five--two  thousand  six
    32  school  year  and thereafter shall mean the aid payable pursuant to this
    33  subdivision in the base year.
    34    (ix) "adequacy adjustment index" for the two thousand four--two  thou-
    35  sand  five  school  year  shall  mean  the  sum of one and the lesser of
    36  fifteen percent or the product, computed to four decimal places  without
    37  rounding,  of  four  and  one-half percent and the quotient, computed to
    38  four decimal places without rounding but  not  less  than  one,  of  the
    39  percent  of  eligible  applicants  for  the free and reduced price lunch
    40  program computed pursuant to paragraph p  of  subdivision  one  of  this
    41  section, divided by twenty-four percent.
    42    §  9.   Clause (vi) of subparagraph 1 of paragraph c of subdivision 14
    43  of section 3602 of the education law, as amended by section 30 of part H
    44  of chapter 83 of the laws of 2002, is amended to read as follows:
    45    (vi) where such proposed reorganization includes at least  two  school
    46  districts employing eight or more teachers forming a central high school
    47  district  pursuant to section nineteen hundred thirteen of this chapter,
    48  beginning with July first, nineteen  hundred  sixty-five  or  the  first
    49  school year of operation as a reorganized district after such date, such
    50  reorganized  school  district  shall be entitled to an additional appor-
    51  tionment of twenty-five per centum of the sum of: (A) its  apportionment
    52  as  provided in subdivision six of this section whenever such apportion-
    53  ment is computed on the basis of its approved base year expenditures for
    54  capital outlay from its general, capital, or  a  reserve  fund  incurred
    55  prior  to  July first, two thousand one, or on the basis of its approved
    56  base year expenditures for capital outlay from its general, capital or a

        A. 11692                           11

     1  reserve fund incurred in the two thousand one--two thousand  two  school
     2  year and computed pursuant to subdivision six of this section as if such
     3  expenditures  were  aidable  under  such  subdivision,  and current year
     4  approved  expenditures for debt service for school building purposes and
     5  (B) its apportionment as provided in subdivision six  of  this  section,
     6  the  general contracts for which shall have been awarded on or after the
     7  date this act takes effect and prior to July first, two thousand  [four]
     8  six  or  within  ten  years  from  the effective date of reorganization,
     9  whichever is later as provided in subdivision six of this  section,  and
    10  which  said sum shall be payable for and during the terms of any indebt-
    11  edness created for the purpose of financing such construction  or  other
    12  facility  as aforesaid, provided however, that in no event may the total
    13  apportionment under this paragraph, under subdivision twelve of  section
    14  thirty-six hundred forty-one of this article, and under subdivisions six
    15  and six-f of this section for any project exceed ninety-five per cent of
    16  the  sum  of  the base year approved expenditures for capital outlay for
    17  school building purposes from the general fund, capital fund or  from  a
    18  reserve  fund,  and  current year approved expenditures for debt service
    19  for such purposes for such project.
    20    § 10. Paragraph a of subdivision 15 of section 3602 of  the  education
    21  law,  as  added by chapter 57 of the laws of 1993, is amended to read as
    22  follows:
    23    a. For the purposes of paragraphs b and c  of  subdivision  twelve  of
    24  this  section,  the city school district of the city of New York may use
    25  either the total aidable pupil units or the total wealth pupil units  of
    26  such  city school district computed in accordance with the provisions of
    27  this section or as though each such borough were a separate city  school
    28  district, and for the purposes of paragraph c of subdivision twelve-b of
    29  this  section,  the city school district of the city of New York may use
    30  either the total aidable pupil counts or the total wealth  pupil  counts
    31  of  such city school district computed in accordance with the provisions
    32  of this section or as though each such  borough  were  a  separate  city
    33  school  district.    All  pupils attending schools in a borough shall be
    34  deemed to reside in such borough.
    35    § 11. Paragraph d of subdivision 15 of section 3602 of  the  education
    36  law,  as  amended  by section 16 of part A2 of chapter 62 of the laws of
    37  2003, is amended to read as follows:
    38    d. Notwithstanding any inconsistent provisions  of  this  article,  if
    39  such  city  school  district elected to receive operating aid payable in
    40  the two thousand--two thousand one school year under the  provisions  of
    41  this  subdivision,  approved  transportation  expense for public service
    42  transportation for transportation  aid  payable  in  the  [two  thousand
    43  three--two  thousand  four]  two thousand four--two thousand five school
    44  year shall not include any expenditures to the New York  City  Metropol-
    45  itan  Transportation  Authority for public service transportation during
    46  the [two thousand two--two thousand three] two thousand three--two thou-
    47  sand four school year nor shall such expense  be  included  in  approved
    48  operating expense.
    49    §  12.  Clause 1 of subparagraph b of paragraph 1 of subdivision 19 of
    50  section 3602 of the education law, as amended by section 16 of part A of
    51  chapter 60 of the laws of 2000, subclauses (ii) and (iii) as amended  by
    52  section  33  of  part H of chapter 83 of the laws of 2002, is amended to
    53  read as follows:
    54    (1) The attendance of pupils who have been determined by  a  committee
    55  on special education either to require placement for sixty per centum or
    56  more  of the school day in a special class, or to require home or hospi-

        A. 11692                           12

     1  tal instruction for a period of more than  sixty  days,  or  to  require
     2  special  services  or  programs  for  more  than sixty per centum of the
     3  school day shall be multiplied by  a  special  services  weighting.  The
     4  special  services  weighting  shall  be  one and seven-tenths, provided,
     5  however, that solely for the purposes of calculation of an apportionment
     6  pursuant to this subdivision, such special services weighting shall be:
     7    (i) for aid payable in the nineteen hundred ninety-nine--two  thousand
     8  and two thousand--two thousand one school years, one and seven-tenths;
     9    (ii) for aid payable in the two thousand one--two thousand two and two
    10  thousand  two--two  thousand  three  school  years,  one and sixty-eight
    11  hundredths;
    12    (iii) for aid payable in the two thousand three--two thousand four and
    13  two thousand four--two  thousand  five  school  [year]  years,  one  and
    14  sixty-five hundredths;
    15    §  13.  Paragraph a of subdivision 22 of section 3602 of the education
    16  law, as amended by section 18 of part A2 of chapter 62 of  the  laws  of
    17  2003, is amended to read as follows:
    18    a.  In  addition to any other aid payable under the provisions of this
    19  section a school district shall be eligible to receive aid for  conduct-
    20  ing programs for pupils with limited English proficiency approved by the
    21  commissioner  pursuant  to the provisions of this chapter and in accord-
    22  ance with regulations adopted for such purpose. Such aid per pupil shall
    23  be computed by multiplying two hundred [thirty]  twenty  thousandths  by
    24  the  [result  obtained when] greater of formula operating aid calculated
    25  for aid payable in the current year  pursuant  to  subparagraph  (i)  of
    26  paragraph  [b  or] c of subdivision [twelve] twelve-b of this section or
    27  alternate operating aid calculated for aid payable in the  current  year
    28  pursuant  to  subparagraph  (ii)  of  such paragraph c is divided by the
    29  total aidable pupil [units] counts used to compute such  aid[,  provided
    30  that for aid payable in the two thousand three--two thousand four school
    31  year,  such  aid  per pupil shall be computed by multiplying two hundred
    32  thirty thousandths by the result obtained when operating aid which would
    33  have been payable in the current year pursuant to paragraph b  or  c  of
    34  subdivision  twelve of this section if aid were payable pursuant to such
    35  paragraphs in the current year is divided by  the  total  aidable  pupil
    36  units  which  would  have  been  used to compute such aid]. Such aid per
    37  pupil will be multiplied by the number of pupils participating  in  such
    38  program  in the base year provided by the district either directly or by
    39  contract pursuant to section nineteen hundred  fifty  of  this  chapter,
    40  computed in accordance with such regulations.
    41    §  14.  Paragraphs  a-1 and e of subdivision 24 of section 3602 of the
    42  education law, paragraph a-1 as added by section 23 of part A of chapter
    43  60 of the laws of 2000 and paragraph e as amended by section 19 of  part
    44  A2 of chapter 62 of the laws of 2003, are amended to read as follows:
    45    a-1.  Notwithstanding  the  provisions of paragraph a of this subdivi-
    46  sion, for aid payable in the school years two thousand--two thousand one
    47  through [two thousand three--two thousand four] two  thousand  four--two
    48  thousand  five,  the  commissioner may set aside an amount not to exceed
    49  two million five hundred thousand dollars from  the  funds  appropriated
    50  for  purposes  of  this  subdivision  for the purpose of serving persons
    51  twenty-one years of age or older who  have  not  been  enrolled  in  any
    52  school  for  the  preceding  school  year,  including  persons  who have
    53  received a high school diploma or high school  equivalency  diploma  but
    54  fail  to  demonstrate basic educational competencies as defined in regu-
    55  lation by the  commissioner,  when  measured  by  accepted  standardized

        A. 11692                           13

     1  tests, and who shall be eligible to attend employment preparation educa-
     2  tion programs operated pursuant to this subdivision.
     3    e.  Employment preparation education apportionment. In addition to any
     4  other aid payable under this section, the apportionment pursuant to this
     5  subdivision shall be the product obtained when the  employment  prepara-
     6  tion  education  hours  are multiplied by the aid per contact hour which
     7  shall equal the product of the employment preparation program aid  ceil-
     8  ing  and  the employment preparation education aid ratio computed to two
     9  decimals, rounded, as calculated based on data on file with the  commis-
    10  sioner on May fifteenth of the base year. Notwithstanding the provisions
    11  of  section  thirty-six  hundred  nine-a of this article, the payment of
    12  such apportionment shall be based upon reports required by  the  commis-
    13  sioner  for the periods ending December thirty-first, and June thirtieth
    14  of each school year; payments for the first reporting  period  shall  be
    15  made after April first, based on claims on file by March first, provided
    16  that the total of all such payments shall not exceed twenty-five percent
    17  of  the  amount  for  such school year, with the approved amount of such
    18  claims reduced on a pro rata basis if necessary; the  remainder  of  any
    19  payments  due for the first period plus any payments due for the rest of
    20  the school year shall be paid after October first, based  on  claims  on
    21  file  by  September  fifteenth, provided that the total of such payments
    22  shall not exceed the total amount  of  ninety-six  million  one  hundred
    23  eighty  thousand  dollars  ($96,180,000)  for such school year, with the
    24  approved amount of such claims reduced on a pro rata basis if necessary,
    25  provided, however, that for the nineteen hundred ninety-five--ninety-six
    26  school year such total amount shall not exceed ninety-four  million  one
    27  hundred eighty thousand dollars ($94,180,000), and provided further that
    28  (i) for the two thousand three--two thousand four school year such total
    29  amount  shall  not  exceed eighty-four million dollars ($84,000,000) and
    30  (ii) for the two thousand four--two thousand five school year such total
    31  amount shall  not  exceed  ninety  million  dollars  ($90,000,000),  and
    32  further provided that the total of such payment for services provided to
    33  persons  who received a high school diploma or a high school equivalency
    34  diploma recognized by New York state shall not exceed the  total  amount
    35  set  aside for such purpose pursuant to paragraph a-one of this subdivi-
    36  sion in any such school year, with the approved amount  of  such  claims
    37  reduced  on a pro rata basis if necessary; and aid paid pursuant to this
    38  paragraph shall not be included  in  the  computation  of  the  district
    39  expenditure need as defined in such section thirty-six hundred nine-a of
    40  this article. The employment preparation education apportionment for the
    41  city  school district of the city of New York shall be computed only for
    42  the city as a whole.
    43    § 15. Paragraph g of subdivision 31-a of section 3602 of the education
    44  law, as amended by section 20 of part A2 of chapter 62 of  the  laws  of
    45  2003, is amended to read as follows:
    46    g. Notwithstanding any inconsistent provisions of this subdivision, in
    47  a school year in which the maximum increase in the aids subject to tran-
    48  sition pursuant to subdivision eighteen of this section is equal to zero
    49  and  for  aid  payable  in the nineteen hundred ninety-six--ninety-seven
    50  school year, the number of years on save harmless shall not increase and
    51  aid payable in the current year shall equal  aid  payable  in  the  base
    52  year. Notwithstanding the provisions of this section or of section thir-
    53  ty-four  of  part B of chapter one hundred forty-nine of the laws of two
    54  thousand one, for aid payable during the [two thousand three--two  thou-
    55  sand four] two thousand four--two thousand five school year, aid payable

        A. 11692                           14

     1  pursuant  to  this  section  shall  equal  that payable pursuant to this
     2  section in the base year.
     3    §  16. Subparagraph 2 of paragraph b of subdivision 36 of section 3602
     4  of the education law, as amended by section 21 of part A2 of chapter  62
     5  of the laws of 2003, is amended to read as follows:
     6    (2) "Increase in aid" shall mean the positive remainder resulting when
     7  the  comprehensive  operating  aids  base is subtracted from the current
     8  year aid for limiting as defined in subparagraph one of paragraph  a  of
     9  subdivision  eighteen  of  this section, provided, however, that for the
    10  purposes of calculating an apportionment pursuant  to  this  subdivision
    11  for the two thousand three--two thousand four and two thousand four--two
    12  thousand  five  school  [year]  years,  "increase in aid" shall mean the
    13  positive remainder resulting when an  amount  equal  to  the  districts'
    14  comprehensive  operating  aids  base  as if such comprehensive operating
    15  aids base had been calculated for such year pursuant to paragraph  j  of
    16  subdivision  one of this section is subtracted from the current year aid
    17  for limiting as defined in subparagraph one of paragraph a  of  subdivi-
    18  sion eighteen of this section.
    19    §  17.  Paragraph 1 of subdivision 37 of section 3602 of the education
    20  law, as amended by section 22 of part A2 of chapter 62 of  the  laws  of
    21  2003, is amended to read as follows:
    22    l.  Notwithstanding  the  provisions  of paragraphs c, f and g of this
    23  subdivision, in the two thousand  two--two  thousand  three  [and],  two
    24  thousand  three--two  thousand  four and two thousand four--two thousand
    25  five school years, each school district shall be eligible to receive the
    26  amount such district was eligible for pursuant to this  section  in  the
    27  two thousand--two thousand one school year.
    28    §  18.  Subdivision  17  of  section  3602-e  of the education law, as
    29  amended by section 25 of part A2 of chapter 62 of the laws of  2003,  is
    30  amended to read as follows:
    31    17. Notwithstanding the provisions of this section, for aid payable in
    32  the  two thousand two--two thousand three [and], two thousand three--two
    33  thousand four and two thousand four--two  thousand  five  school  years,
    34  each  school  district  shall be eligible to receive a grant award in an
    35  amount not to exceed the maximum prekindergarten grant award which shall
    36  be the sum of (i) the amount set forth for such school district for  the
    37  two  thousand  one--two thousand two school year on the computer listing
    38  produced by the commissioner in support of the executive budget  request
    39  for  such  year and entitled "BT032-1" under the heading, "PREKINDERGAR-
    40  TEN", plus (ii) for those districts that  were  eligible  to  receive  a
    41  supplemental  grant  award  for the purposes of this section pursuant to
    42  part B of chapter [149] one hundred forty-nine of the laws of [2001] two
    43  thousand one, an amount equal to the  positive  difference  between  the
    44  amount the school district was eligible to receive based on data on file
    45  with the commissioner on February fifteenth, two thousand and the amount
    46  set  forth  for the purposes of grants pursuant to this section for such
    47  school district for the two thousand one--two thousand two  school  year
    48  in  such  computer listing entitled "BT032-1". Provided, however, that a
    49  school district receiving aid under this section shall  be  required  to
    50  comply with all district plans and other requirements under this section
    51  for the receipt of funds.
    52    § 19. The opening paragraph of section 3609-a of the education law, as
    53  amended  by  section 26 of part A2 of chapter 62 of the laws of 2003, is
    54  amended to read as follows:
    55    For aid  payable  in  the  nineteen  hundred  ninety-six--ninety-seven
    56  school  year  and thereafter, "moneys apportioned" shall mean the lesser

        A. 11692                           15

     1  of (i) the sum of one hundred percent of the respective amount set forth
     2  for each school district as payable pursuant  to  this  section  in  the
     3  school aid computer listing for the current year produced by the commis-
     4  sioner in support of the budget which includes the appropriation for the
     5  general support for public schools for the prescribed payments and indi-
     6  vidualized  payments  due prior to April first for the current year plus
     7  any increase in the amount of the apportionment of aid for instructional
     8  computer technology expenses above such amount  as  set  forth  in  such
     9  school  aid  computer listing as payable pursuant to this section and as
    10  computed pursuant to  subdivision  twenty-six-a  of  section  thirty-six
    11  hundred  two  of  this  article  and  plus the miscellaneous general aid
    12  apportionments which shall include: apportionments  payable  during  the
    13  current school year pursuant to paragraph g of subdivision two, subdivi-
    14  sion  five  and subdivision thirty-six of section thirty-six hundred two
    15  of this article minus any reductions to current year  aids  pursuant  to
    16  subdivision  seven of section thirty-six hundred four of this article or
    17  any deduction from apportionment payable pursuant to  this  chapter  for
    18  collection  of a school district basic contribution as defined in subdi-
    19  vision eight of section forty-four hundred one of this chapter, less any
    20  grants provided pursuant to subdivision  twelve  of  section  thirty-six
    21  hundred  forty-one of this article, or (ii) the apportionment calculated
    22  by the commissioner based on data on file at the  time  the  payment  is
    23  processed  provided  however, that for the purposes of any payments made
    24  pursuant to this section prior to the first business day of June of  the
    25  current  year,  moneys  apportioned  shall  not include any aids payable
    26  pursuant to subdivisions six and fourteen,  if  applicable,  of  section
    27  thirty-six  hundred  two  of  this  article as current year aid for debt
    28  service on bond anticipation notes and/or  bonds  first  issued  in  the
    29  current  year  or  any  aids  payable as growth aid for the current year
    30  pursuant to subdivision thirteen of section thirty-six  hundred  two  of
    31  this  article  or  any  aids  payable  for full-day kindergarten for the
    32  current year pursuant to  subdivision  twelve-a  of  section  thirty-six
    33  hundred two of this article. The definitions of "base year" and "current
    34  year"  as set forth in subdivision one of section thirty-six hundred two
    35  of this article shall apply to this section. For aid payable in the [two
    36  thousand three--two thousand four] two thousand four--two thousand  five
    37  school  year,  reference  to  such  "school aid computer listing for the
    38  current  year"  shall  mean  the  printouts  [entitled  "SA0304"]  first
    39  produced  pursuant  to  paragraphs  b and c of subdivision twenty-one of
    40  section three hundred five of this chapter following the effective  date
    41  of the chapter of the laws of two thousand four which amended this para-
    42  graph.
    43    §  20.  Paragraph  b of subdivision 2 of section 3612 of the education
    44  law, as amended by section 1 of part K of chapter  63  of  the  laws  of
    45  2003, is amended to read as follows:
    46    b. Such grants shall be awarded to school districts, within the limits
    47  of funds appropriated therefor, through a competitive process that takes
    48  into  consideration  the  magnitude  of  any shortage of teachers in the
    49  school district, the number of teachers employed in the school  district
    50  who hold temporary licenses to teach in the public schools of the state,
    51  the  number of provisionally certified teachers, the fiscal capacity and
    52  geographic sparsity of the district, the  number  of  new  teachers  the
    53  school district intends to hire in the coming school year and the number
    54  of summer in the city student internships proposed by an eligible school
    55  district,  if applicable. Grants provided pursuant to this section shall
    56  be used only for the purposes enumerated in this section.  Notwithstand-

        A. 11692                           16

     1  ing any other provision of law to the contrary, a city  school  district
     2  in a city having a population of one million or more inhabitants receiv-
     3  ing  a  grant  pursuant  to  this  section  may use no more than seventy
     4  percent  of  such grant funds for any recruitment, retention and certif-
     5  ication costs associated  with  transitional  certification  of  teacher
     6  candidates  for the school years two thousand one--two thousand two, two
     7  thousand two--two thousand three [and], two thousand three--two thousand
     8  four and two thousand four--two thousand five.
     9    § 21. Paragraph a of subdivision 5 of section 3641  of  the  education
    10  law,  as  amended  by section 28 of part A2 of chapter 62 of the laws of
    11  2003, is amended to read as follows:
    12    a. In addition to apportionments otherwise provided by  section  thir-
    13  ty-six  hundred  two of this article, for aid payable in the school year
    14  [two thousand three--two thousand four] two thousand four--two  thousand
    15  five,  the amounts specified in paragraph b of this subdivision shall be
    16  paid for the purposes of the development, maintenance  or  expansion  of
    17  magnet  schools  and  magnet  school programs provided, however that any
    18  school district in a city of one million or more  inhabitants  which  an
    19  additional  apportionment  is  provided  in the [two thousand three--two
    20  thousand four] two thousand four--two thousand five  school  year  which
    21  spends less in local funds during the current year than in the base year
    22  for  magnet  schools or magnet school programs shall have its apportion-
    23  ment reduced in an amount equal to such deficiency in the  current  year
    24  or  in the succeeding school year. It is provided further that no appor-
    25  tionment provided pursuant to this section shall be used for  any  costs
    26  associated  with  the  administration  of  this  program  by the [board]
    27  department of education of the city of New York.
    28    § 22. Paragraph a of subdivision 6 of section 3641  of  the  education
    29  law,  as  amended  by section 29 of part A2 of chapter 62 of the laws of
    30  2003, is amended to read as follows:
    31    a. In addition to apportionments otherwise provided by  section  thir-
    32  ty-six hundred two of this article, for aid payable in the [two thousand
    33  three--two  thousand  four]  two thousand four--two thousand five school
    34  year the amounts specified in paragraph b of this subdivision  shall  be
    35  paid for the purpose of improving reading and academic performance.
    36    §  23.  Paragraph  a of subdivision 7 of section 3641 of the education
    37  law, as amended by section 30 of part A2 of chapter 62 of  the  laws  of
    38  2003, is amended to read as follows:
    39    a.  In  addition to apportionments otherwise provided by section thir-
    40  ty-six hundred two of this article, for aid payable in the [two thousand
    41  three--two thousand four] two thousand four--two  thousand  five  school
    42  year  the  amounts specified in paragraph b of this subdivision shall be
    43  paid for programs for improving  pupil  performance  pursuant  to  regu-
    44  lations of the commissioner.
    45    §  24.    Section 3641 of the education law is amended by adding a new
    46  subdivision 13 to read as follows:
    47    13.   Transportation capital expense  transition  grants.    a.    The
    48  commissioner shall, upon application therefor, certify to the authorized
    49  issuer  established  pursuant to subdivision (b) of section twenty-eight
    50  of the chapter of the laws of two thousand four which added this  subdi-
    51  vision  the  amounts  to be awarded as grants to school districts in the
    52  two thousand four--two thousand five state fiscal year for reimbursement
    53  of approved expenses for transportation capital, debt service and leases
    54  for the two thousand three--two thousand four school year, as calculated
    55  pursuant to subdivision seven of section thirty-six hundred two of  this
    56  article and this subdivision.

        A. 11692                           17

     1    b.   School districts which would have been eligible for an apportion-
     2  ment for base year approved expenses for  transportation  capital,  debt
     3  service  and leases, as defined in subdivision two of section thirty-six
     4  hundred twenty-three-a of this article, pursuant to subdivision seven of
     5  section thirty-six hundred two of this article in the two thousand four-
     6  -two  thousand five school year under the provisions of such subdivision
     7  seven in effect in the two thousand three--two thousand four school year
     8  shall be eligible to apply for a grant pursuant  to  this  paragraph  in
     9  lieu  of  an apportionment of aid for such approved expenses pursuant to
    10  subdivision seven of section thirty-six hundred  two  of  this  article.
    11  Application for such grant shall be made on or before the first business
    12  day  of  September,  two  thousand four in such form as the commissioner
    13  shall determine, and shall  include  documentation  of  actual  approved
    14  transportation  capital,  debt  service and/or lease expense incurred in
    15  the two thousand three--two thousand four  school  year  or  that  would
    16  otherwise  have  been  eligible for an apportionment in the two thousand
    17  four--two thousand five school year pursuant  to  subdivision  seven  of
    18  section  thirty-six hundred two of this article as it existed in the two
    19  thousand three--two thousand four school year.
    20    c.   Upon approval  of  such  application  by  the  commissioner,  the
    21  district  shall be eligible for a grant in an amount equal to the appor-
    22  tionment computed pursuant to subdivision seven  of  section  thirty-six
    23  hundred  two of this article on its approved expenses for transportation
    24  capital, debt service and leases, as if such expenses  continued  to  be
    25  aidable  under  such  subdivision  seven, based on data on file with the
    26  commissioner as of September first, two thousand four.
    27    d.  Notwithstanding any other provisions of law to the  contrary,  the
    28  amounts  payable  pursuant  to  this paragraph shall be certified by the
    29  commissioner in accordance with section twenty-four of  the  chapter  of
    30  the  laws of two thousand four which added this subdivision and shall be
    31  paid to school districts by the authorized issuer  established  pursuant
    32  to subdivision (b) of section twenty-eight of the chapter of the laws of
    33  two  thousand  four  which  added  this subdivision from the proceeds of
    34  bonds and notes issued pursuant to  such  section  twenty-eight.    Such
    35  payment shall fulfill any obligation of the state or the commissioner to
    36  apportion  funds  pursuant  to  this  paragraph  or subdivision seven of
    37  section thirty-six hundred two of this article for approved expenses for
    38  transportation capital, debt service or leases, and  whenever  a  school
    39  district has been apportioned more money pursuant to this paragraph than
    40  that  to  which  it is entitled, the commissioner may deduct such amount
    41  from the next apportionment to be made to such school district.
    42    § 25. Section 3641 of the education law is amended  by  adding  a  new
    43  subdivision 14 to read as follows:
    44    14.  Building  aid  for a sound education (BASE). a.  Establishment of
    45  BASE program. There is hereby established the building aid for  a  sound
    46  education  (BASE)  program to provide project financing or assistance in
    47  the form of grants to eligible school  districts,  in  addition  to  the
    48  apportionments  made  pursuant to subdivisions six, six-a, six-b, six-c,
    49  six-d, six-e, six-f and paragraph c of subdivision fourteen  of  section
    50  thirty-six  hundred two of this article, and subdivisions ten and twelve
    51  of this section, for the costs of  BASE  school  facility  projects.  An
    52  apportionment  for  any such project shall initially be available in the
    53  state fiscal year commencing April first, two thousand four.    Notwith-
    54  standing  any  provision of law to the contrary, the dormitory authority
    55  of the state of New York shall be authorized to issue bonds or notes  in
    56  an  aggregate  amount  not to exceed two billion two hundred million two

        A. 11692                           18

     1  hundred sixty-three thousand one hundred two dollars for purposes of the
     2  BASE program.
     3    b.  Definitions.  The following terms, whenever used or referred to in
     4  this subdivision, unless the context indicates otherwise, shall have the
     5  following meanings:
     6    (1) "BASE project". A BASE project shall include, but not  be  limited
     7  to,  the  acquisition,  design,  planning, construction, reconstruction,
     8  rehabilitation, preservation, development, improvement or  modernization
     9  of  a BASE school facility, where such project is a construction project
    10  that has been reviewed by the department and approved by the commission-
    11  er pursuant to this subdivision on or after  July  first,  two  thousand
    12  four and falls within one or more of the following categories:
    13    (i)  An  education  technology  project  which,  as a primary purpose,
    14  enhances the use of technology including but not  limited  to,  instruc-
    15  tional  content with video streaming, electrical upgrades, wiring, cabl-
    16  ing installations, internet connections, fiber optics,  conduits,  race-
    17  ways,   telecommunication  systems,  electronic  commerce  and  wireless
    18  options;
    19    (ii) A  health  and  safety  project  which,  as  a  primary  purpose,
    20  addresses the reduction or elimination of the risk of personal injury or
    21  harm to occupants of public school buildings used primarily for instruc-
    22  tion, including but not limited to environmental remediation, the eradi-
    23  cation  of  fire  and health code violations, the provisions of adequate
    24  ventilation, and the rehabilitation and repair of existing facilities;
    25    (iii) An accessibility project which, as a primary  purpose,  enhances
    26  accessibility  to public school buildings used primarily for instruction
    27  for individuals with disabilities; and
    28    (iv)  A  physical  capacity  expansion  project  or  eligible   school
    29  construction project which, as a primary purpose, expands the availabil-
    30  ity  of  adequate and appropriate instructional space in a public school
    31  building used primarily for instruction, including but  not  limited  to
    32  expansions which provide for reduced class size.
    33    (2)  "BASE  school  facility".  A  BASE  school facility shall mean an
    34  existing or proposed facility or other property real and  personal,  and
    35  other  appurtenances  thereto  to  be  utilized by a school district for
    36  education purposes.
    37    (3) "Eligible project cost". Eligible project costs, for  purposes  of
    38  the  BASE  program  shall  mean  any  expenditures for projects that are
    39  eligible for an apportionment pursuant to subdivisions six, six-a, six-b
    40  and/or paragraph c of subdivision fourteen of section thirty-six hundred
    41  two of this article; including expenditures for debt  service  on  obli-
    42  gations issued for school district purposes.
    43    (4)  "Eligible  school  district"  means a school district eligible to
    44  receive an apportionment pursuant to  subdivision  twelve-b  of  section
    45  thirty-six hundred two of this article that has a combined wealth ratio,
    46  as  defined in paragraph l of subdivision one of such section thirty-six
    47  hundred two, that is less than or equal to two and three-tenths.
    48    (5) "Maximum additional apportionment" means the sum of the  following
    49  amounts:
    50    (i) For an eligible school district with a percentage of students ages
    51  five  through  seventeen living in poverty, as determined by the commis-
    52  sioner based on the two thousand federal census, in excess of eight  and
    53  five-tenths percent, an amount equal to the product of one hundred twen-
    54  ty-five  dollars  and  the  total  aidable pupil count for operating aid
    55  calculated pursuant to clause (B) of subparagraph (iv) of paragraph c of
    56  subdivision twelve-b of section thirty-six hundred two of this article.

        A. 11692                           19

     1    (ii) For an eligible school district with  a  percentage  of  eligible
     2  applicants  for  the free and reduced price lunch program, as defined in
     3  paragraph p of subdivision one of section thirty-  six  hundred  two  of
     4  this  article, in excess of twenty-eight percent, an amount equal to the
     5  product  of  six hundred fifty- five dollars ten cents and a pupil count
     6  equal to (i) the total aidable pupil count for operating aid  calculated
     7  pursuant  to  clause (B) of subparagraph (iv) of paragraph c of subdivi-
     8  sion twelve-b of section thirty-six hundred two  of  this  article  less
     9  (ii) the product, rounded up to the nearest whole number, of twenty-five
    10  percent  and  the  product, computed to the nearest whole number without
    11  rounding, of the percentage of pupils  with  special  educational  needs
    12  calculated  pursuant  to  paragraph e of subdivision one of this section
    13  and the average daily membership of resident pupils of the district  for
    14  the  year  prior to the base year, plus (iii) the product, rounded up to
    15  the nearest whole number, of the percent of eligible applicants for  the
    16  free and reduced price lunch program computed pursuant to paragraph p of
    17  subdivision  one  of such section thirty-six hundred two and the average
    18  daily membership of resident pupils of the district for the  year  prior
    19  to the base year and seventy-five percent.
    20    c.  BASE apportionment. (1) Each eligible school district which has an
    21  approved project or projects shall be entitled to a grant or grants  for
    22  such project or projects in an amount whether in the aggregate or other-
    23  wise,  not to exceed the maximum additional apportionment calculated for
    24  such school district. The amount of such maximum  additional  apportion-
    25  ment  not  expended,  disbursed or encumbered for any such year shall be
    26  carried over for expenditure and disbursement  to  the  next  succeeding
    27  school  year.  Such  maximum  additional  apportionment  may  be used to
    28  supplement the apportionments available pursuant  to  subdivisions  six,
    29  six-a,  six-b, six-c, six-d, six-e, six-f and paragraph c of subdivision
    30  fourteen of section thirty-six hundred two of this article, and subdivi-
    31  sions ten and twelve of this section, provided that the  total  of  such
    32  apportionments  plus  the grant payable pursuant to this subdivision for
    33  the approved project costs of any approved building aidable project,  as
    34  limited  by  the cost allowances specified in paragraph a of subdivision
    35  six of section thirty-six hundred two of this article, shall not  exceed
    36  such  approved  project  costs,  provided further that the apportionment
    37  provided pursuant to this subdivision shall  not  otherwise  reduce  the
    38  apportionments  payable  for approved project costs pursuant to subdivi-
    39  sions six, six-a, six-b, six-c, six-d, six-e, six-f and paragraph  c  of
    40  subdivision  fourteen of section thirty-six hundred two of this article,
    41  and subdivisions ten and twelve of this section and may be  used  by  an
    42  eligible  school district to fund the principal amount of any costs that
    43  are in excess of the costs approved for  an  apportionment  pursuant  to
    44  such  subdivisions  six,  six-a,  six-b,  six-c, six-d, six-e, six-f and
    45  paragraph c of subdivision fourteen of section thirty-six hundred two of
    46  this article, and subdivisions ten and twelve of this section. Except as
    47  authorized in this paragraph, expenditures from the  maximum  additional
    48  apportionment shall not be eligible for aid under any other provision of
    49  this chapter.
    50    (2) The payment of all apportionments to be made for approved projects
    51  pursuant to this subdivision shall be made from funds annually appropri-
    52  ated by the legislature for such purpose.  An apportionment so made to a
    53  school  district  from  appropriated  funds  by the commissioner for the
    54  principal amounts of expenditures for an approved project  which  is  an
    55  eligible  school construction project shall be repaid to the state comp-
    56  troller by the dormitory authority from bond proceeds made available for

        A. 11692                           20

     1  such purpose pursuant to section sixteen hundred  eighty-nine-i  of  the
     2  public authorities law.
     3    §  26.  The  public authorities law is amended by adding a new section
     4  1689-i to read as follows:
     5    § 1689-i. Public school districts;  authority  financing  of  eligible
     6  school construction projects; building aid for a sound education (BASE).
     7  1.  The  dormitory  authority  is  authorized to finance eligible school
     8  construction projects  for  those  public  school  districts  which  are
     9  approved  by  the commissioner of education to receive aid apportionment
    10  for building aid for a sound education (BASE)  pursuant  to  subdivision
    11  fourteen of section thirty-six hundred forty-one of the education law.
    12    2. Notwithstanding the provisions of any general or special law to the
    13  contrary, and subject to the making of annual appropriations therefor by
    14  the  legislature,  in  order  to  assist  the dormitory authority in the
    15  financing and refinancing of such eligible school construction projects,
    16  the director of the budget  is  authorized  in  any  state  fiscal  year
    17  commencing  April  first, two thousand four and thereafter to enter into
    18  one or more service contracts, none of which shall exceed  thirty  years
    19  in duration, with the dormitory authority, upon such terms as the direc-
    20  tor of the budget and the dormitory authority agree.
    21    3.  Any  service contract entered into pursuant to this section or any
    22  payments made or to be made thereunder may be assigned  and  pledged  by
    23  the dormitory authority as security for its bonds, notes, or other obli-
    24  gations.
    25    4.  Any such service contract shall provide that the obligation of the
    26  director of the budget or of the state to fund or  to  pay  the  amounts
    27  therein provided for shall not constitute a debt of the state within the
    28  meaning  of  any  constitutional or statutory provision in the event the
    29  dormitory authority assigns or pledges the service contract payments  as
    30  security  for its bonds, notes, or other obligations and shall be deemed
    31  executory only to the extent moneys are available and that no  liability
    32  shall  be  incurred  by  the  state  beyond the moneys available for the
    33  purpose, and that such obligation is subject to annual appropriation  by
    34  the legislature.
    35    5.  Any  service  contract  or contracts entered into pursuant to this
    36  section shall provide for state commitments to provide annually  to  the
    37  dormitory  authority  a  sum  or sums, upon such terms and conditions as
    38  shall be deemed appropriate by the director of the budget, to  fund  the
    39  principal,  interest,  or other related expenses required for any bonds,
    40  notes, or other obligations.
    41    6. The commissioner of education shall certify, from time to time,  to
    42  the  dormitory  authority, the comptroller, the director of the division
    43  of the budget, the chair of the senate finance committee and  the  chair
    44  of  the assembly ways and means committee each school district for which
    45  he or she has approved an aid apportionment for authority  financing  of
    46  an eligible school construction project pursuant to subdivision fourteen
    47  of  section  thirty-six  hundred  forty-one  of  the education law. Such
    48  certification, which  shall  be  made  within  thirty  days  after  such
    49  approval  or  as  soon  thereafter as is practicable, shall identify the
    50  amount of aid apportionment which has  been  approved  for  such  school
    51  district  and shall estimate the date or dates when such project will be
    52  undertaken to assist  the  authority  in  establishing  a  schedule  for
    53  financing  such  project. The commissioner shall notify the authority if
    54  there is a change in such date.
    55    7. On or before November fifteenth of each year and again on or  after
    56  February  fifteenth  of each year, the dormitory authority shall submit,

        A. 11692                           21

     1  and thereafter may resubmit, to the director  of  the  division  of  the
     2  budget,  the state comptroller, the commissioner of education, the chair
     3  of the senate finance committee and the chair of the assembly  ways  and
     4  means committee a report setting forth the amounts, if any, of all annu-
     5  al  payments  estimated  to  be  appropriated to the dormitory authority
     6  pursuant to such service contracts between the dormitory  authority  and
     7  the director of the division of the budget pursuant to this section.
     8    8.  To  obtain  funds  for the purposes of this section, the authority
     9  shall have power from time to time, in accordance with a schedule certi-
    10  fied to the authority  by  the  commissioner  of  education  identifying
    11  eligible  school  construction  projects approved for the payment of aid
    12  apportionments pursuant to subdivision fourteen  of  section  thirty-six
    13  hundred  forty-one  of  the  education law, to issue negotiable bonds or
    14  notes of the authority. Unless the context shall clearly indicate other-
    15  wise, whenever the words "bond" or "bonds" are  used  in  this  section,
    16  such words shall include a note or notes of the authority.
    17    9.  The  dormitory  authority shall not issue any bonds or notes in an
    18  amount in excess of two billion two hundred million two  hundred  sixty-
    19  three thousand one hundred two dollars for the purposes of this section,
    20  excluding  a  principal  amount  of bonds or notes issued to fund one or
    21  more debt service reserve funds, to pay for the  costs  of  issuance  of
    22  such  bonds, and bonds or notes issued to refund or otherwise repay such
    23  bonds, and bonds or notes previously issued. Except for the purposes  of
    24  complying  with the internal revenue code, any interest income earned on
    25  bond proceeds shall only be used to pay debt service on  such  bonds  or
    26  notes.
    27    10.  In  computing for the purposes of this subdivision, the aggregate
    28  amount of indebtedness evidenced by bonds and  notes  of  the  dormitory
    29  authority  issued  pursuant to this section, there shall be excluded the
    30  amount of such indebtedness represented by such bonds or notes issued to
    31  refund or otherwise repay bonds or notes, provided that  the  amount  so
    32  excluded under this clause may exceed the principal amount of such bonds
    33  or notes that were issued to refund or otherwise repay only if the pres-
    34  ent  value  of  the aggregate debt service on the refunding or repayment
    35  bonds or notes shall not have at the time of their issuance exceeded the
    36  present value of the aggregate debt service of the bonds or  notes  they
    37  were  issued  to  refund or repay, such present value in each case being
    38  calculated by using the effective interest  rate  of  the  refunding  or
    39  repayment  bonds or notes, which shall be that rate arrived at by doubl-
    40  ing the semi-annual interest rate (compounded  semi-annually)  necessary
    41  to  discount  the  debt  service  payments on the refunding or repayment
    42  bonds or notes from the payment date thereof to the date of issue of the
    43  refunding or repayment bonds or notes and to the price bid therefor,  or
    44  to the proceeds received by the dormitory authority from the sale there-
    45  of, in each case including estimated accrued interest.
    46    11.  The state of New York hereby covenants with the purchasers, hold-
    47  ers and owners from time to time of the bonds of  the  authority  issued
    48  pursuant to this section that it will not repeal, revoke, rescind, modi-
    49  fy or amend the provisions of this section which relate to the making of
    50  annual  service  contract payments to the authority with respect to such
    51  bonds as to limit, impair or impede the rights and remedies  granted  to
    52  bondholders  under this title or otherwise diminish the security pledged
    53  to such purchasers, holders and owners or significantly impair the pros-
    54  pect of payment of any such bond.
    55    § 27. The state finance law is amended by adding a new  section  92-cc
    56  to read as follows:

        A. 11692                           22

     1    §  92-cc.  State video lottery fund. 1. There is hereby established in
     2  the joint custody of the comptroller and the  commissioner  of  taxation
     3  and finance a special fund to be known as the state video lottery fund.
     4    2.  Such  fund  shall  consist  of the video lottery revenues received
     5  pursuant to section sixteen hundred seventeen-a of the tax law, and  all
     6  other  moneys  credited  or  transferred  thereto from any other fund or
     7  sources pursuant to law. There shall be established within such fund  an
     8  account  to  be known as the video lottery education account which shall
     9  consist of video lottery revenues paid into the fund. Upon  such  estab-
    10  lishment  there  shall  also  be established within such fund a separate
    11  account, to be known as the video lottery administration  account  which
    12  shall consist of video lottery revenues.
    13    3.  The  moneys in such fund shall be appropriated or transferred only
    14  (a) for repayment of first instance expenditures incurred in the  admin-
    15  istration  of  the  video  lottery  gaming,  and  (b) for the purpose of
    16  payment or payments pursuant to section sixteen hundred eighty-nine-i of
    17  the public authorities law in relation for the costs of building aid for
    18  a sound education school facility projects of section thirty-six hundred
    19  forty-one of the education law.
    20    4. Moneys of the fund, following appropriation by the legislature, may
    21  be expended for the purposes described  in  subdivision  three  of  this
    22  section.  Moneys  shall be paid out of the fund on the audit and warrant
    23  of the state comptroller  on  vouchers  certified  or  approved  by  the
    24  commissioner of the state education department.
    25    §  28. Subdivision b of section 1612 of tax law, as amended by section
    26  3 of part W of chapter 63 of the laws of 2003, is  amended  to  read  as
    27  follows:
    28    b. Notwithstanding section one hundred twenty-one of the state finance
    29  law,  on  or  before the twentieth day of each month, the division shall
    30  pay into the state treasury, to the credit of  the  state  lottery  fund
    31  created  by section ninety-two-c of the state finance law, not less than
    32  forty-five percent of the total amount for which tickets have been  sold
    33  for  games  defined  in  paragraph four of subdivision a of this section
    34  during the preceding month, not less than  thirty-five  percent  of  the
    35  total amount for which tickets have been sold for games defined in para-
    36  graph three of subdivision a of this section during the preceding month,
    37  not  less than twenty percent of the total amount for which tickets have
    38  been sold for games defined in paragraph two of subdivision  a  of  this
    39  section during the preceding month, provided however that for games with
    40  a  prize  payout  of  seventy-five percent of the total amount for which
    41  tickets have been sold, the division shall pay not less than ten percent
    42  of sales into the state treasury and not less than  twenty-five  percent
    43  of  the  total amount for which tickets have been sold for games defined
    44  in paragraph one of subdivision a of this section during  the  preceding
    45  month  and  the balance of the total revenue after payout for prizes for
    46  games known as "video lottery gaming," less ten  percent  of  the  total
    47  revenue  wagered  after payout for prizes to be retained by the division
    48  for operation, administration, and  procurement  purposes;  and  less  a
    49  vendor's  fee  to be paid to the track operator at a rate of twenty-nine
    50  percent of the total revenue wagered at the vendor  track  after  payout
    51  for  prizes  pursuant to this chapter, which amount shall be paid to the
    52  operator of the racetrack for serving as  a  lottery  agent  under  this
    53  pilot program. In establishing the lottery agent fee, the division shall
    54  ensure the maximum lottery support for education while also ensuring the
    55  effective  implementation of section sixteen hundred seventeen-a of this
    56  article through the provision of reasonable reimbursements  and  compen-

        A. 11692                           23

     1  sation  to vendor tracks for participation in such pilot program. Within
     2  twenty days after any award of lottery prizes, the  division  shall  pay
     3  into  the  state  treasury, to the credit of the state lottery fund, the
     4  balance  of  all  moneys  received  from the sale of all tickets for the
     5  lottery in which such prizes were awarded remaining after provision  for
     6  the payment of prizes as herein provided.  Any revenues derived from the
     7  sale  of  advertising on lottery tickets shall be deposited in the state
     8  lottery fund. Any revenues derived from video lottery gaming pursuant to
     9  section sixteen hundred seventeen-a of this article shall  be  deposited
    10  in  the state video lottery fund established in section ninety-two-cc of
    11  the state finance law.
    12    § 29. The following terms, whenever used or referred to in  this  act,
    13  unless  the  context indicates otherwise, shall have the following mean-
    14  ings:
    15    (a) "Eligible school district transportation capital  expenses"  shall
    16  mean transportation capital expenses eligible for a transportation capi-
    17  tal  expense transition grant pursuant to subdivision 13 of section 3641
    18  of the education law for which payments are made,  as  reimbursement  of
    19  base year approved expenditures, for transportation capital debt service
    20  and  leases  as defined in subdivision 2 of section 3623-a of the educa-
    21  tion law, that are incurred by the school district on or after  July  1,
    22  2003  and on or before June 30, 2004, and are not otherwise reimbursable
    23  in the 2004-2005 school year pursuant to subdivision 7 of  section  3602
    24  of the education law.
    25    (b)  Notwithstanding  the  provisions of any general or special law to
    26  the contrary, for purposes of this section, the term  "school  district"
    27  shall  mean  any school district or municipality which could be eligible
    28  for an apportionment pursuant to subdivision 7 of section  3602  of  the
    29  education law.
    30    § 30. (a) Subject to the provisions of chapter 59 of the laws of 2000,
    31  but  notwithstanding  any provisions of law to the contrary, one or more
    32  authorized issuers as defined  by section 68-a of the state finance  law
    33  are  hereby  authorized to issue bonds or notes in one or more series in
    34  an aggregate principal amount not to exceed $80,000,000, excluding bonds
    35  issued to finance one or more debt service reserve funds, to  pay  costs
    36  of issuance of such bonds, and bonds or notes issued to refund or other-
    37  wise  repay  such  bonds  or notes previously issued, for the purpose of
    38  financing transportation capital expense  transition  grants  base  year
    39  approved  expenses  for transportation capital, debt service and leases;
    40  and to reimburse the state general fund for disbursements made therefor.
    41  Such bonds and notes of such authorized issuer shall not be  a  debt  of
    42  the  state, and the state shall not be liable thereon, nor shall they be
    43  payable out of any funds other than those appropriated by the  state  to
    44  such authorized issuer for debt service and related expenses pursuant to
    45  any  service  contract  executed  pursuant  to  subdivision  (b) of this
    46  section and such bonds and notes shall contain on  the  face  thereof  a
    47  statement  to  such  effect.  Except  for purposes of complying with the
    48  internal revenue code, any interest income earned on bond proceeds shall
    49  only be used to pay debt service on such bonds.
    50    (b) Notwithstanding any provisions of law to the contrary, in order to
    51  assist such authorized issuer  in  undertaking  the  administration  and
    52  financing of the projects authorized pursuant to subdivision (a) of this
    53  section,  the  director of the budget is hereby authorized to enter into
    54  one or more service contracts with such authorized issuer; none of which
    55  shall exceed more than ten years in duration, upon such terms and condi-
    56  tions as the director of the budget and such authorized issuer agree, so

        A. 11692                           24

     1  as to annually provide to such authorized issuer, in  the  aggregate,  a
     2  sum  not to exceed the annual debt service payments and related expenses
     3  required for the bonds and notes issued pursuant to  this  section.  Any
     4  service contract entered into pursuant to this subdivision shall provide
     5  that  the  obligation  of  the  state to pay the amount therein provided
     6  shall not constitute a debt of the  state  within  the  meaning  of  any
     7  constitutional or statutory provision and shall be deemed executory only
     8  to  the  extent  of  monies  available  and  that  no liability shall be
     9  incurred by the state beyond the monies  available  for  such  purposes,
    10  subject to annual appropriation by the legislature. Any such contract or
    11  any payments made or to be made thereunder may be assigned or pledged by
    12  such  authorized  issuer as security for its bonds and notes, as author-
    13  ized by this section.
    14    § 31. The commissioner of education shall certify,  by  September  30,
    15  2004,  to  such  issuer  and  the  director  of  the budget, each school
    16  district for which he or  she  has  approved  a  transportation  capital
    17  expense  transition  grant pursuant to subdivision 13 of section 3641 of
    18  the education law for eligible school  district  transportation  capital
    19  expenses  in lieu of aid previously payable pursuant to subdivision 7 of
    20  section 3602 of the education law, such other information regarding such
    21  base year expenditures for  transportation  capital,  debt  service  and
    22  leases requested by such authorized issuer as it necessary for the issu-
    23  ance of bonds, notes, or other obligations, pursuant to this section and
    24  the amount of that grant.
    25    §  32. Section 6 of chapter 756 of the laws of 1992, relating to fund-
    26  ing a program for workforce education conducted by  the  consortium  for
    27  worker  education  in New York city, as amended by section 43 of part A2
    28  of chapter 62 of the laws of 2003, is amended to read as follows:
    29    § 6. This act shall take effect July 1,  1992,  and  shall  be  deemed
    30  repealed on June 30, [2004] 2005.
    31    §  33. Section 2 of part K of chapter 93 of the laws of 2002, amending
    32  the education law relating to aid for teachers of  tomorrow  recruitment
    33  and  retention  program, as amended by section 2 of part K of chapter 63
    34  of the laws of 2003, is amended to read as follows:
    35    § 2. This act shall take effect immediately and  shall  be  deemed  to
    36  have  been  in full force and effect on and after July 1, 2001 and shall
    37  expire and be deemed repealed June 30, [2004] 2005.
    38    § 34. Subdivision 16 of section 104 of part L of chapter  405  of  the
    39  laws  of  1999  relating to amending the real property tax law and other
    40  laws relating to improving the administration of the school  tax  relief
    41  (STAR)  program relating to school aid, as amended by section 80 of part
    42  H of chapter 83 of the laws of 2002, is amended to read as follows:
    43    (16) sections fifty-one-f, fifty-one-g, fifty-one-h,  fifty-one-i  and
    44  fifty-one-j  of  this  act  shall expire and be deemed repealed June 30,
    45  [2004] 2005;
    46    § 35. School bus driver training. In addition to apportionments other-
    47  wise provided by section 3602 of the education law, for aid  payable  in
    48  the  2004-2005 school year, the commissioner of education shall allocate
    49  school bus driver training grants to  school  districts  and  boards  of
    50  cooperative  education  services pursuant to sections 3650-a, 3650-b and
    51  3650-c of the education law, or for contracts directly with not-for-pro-
    52  fit educational organizations for the purposes  of  this  section.  Such
    53  payments shall not exceed four hundred thousand dollars ($400,000).
    54    § 36.  Fort Drum school district grants. In addition to apportionments
    55  otherwise provided by section 3602 of the education law, for aid payable
    56  in  the 2004-2005 school year, school districts which received an appor-

        A. 11692                           25

     1  tionment in the base year  for  operating  expenses  on  account  of  an
     2  increase  in student enrollment in prior years as a result of the expan-
     3  sion of Fort Drum, shall be eligible for a  share  of  two  million  six
     4  hundred twenty-five thousand dollars ($2,625,000) in the same proportion
     5  as  each  school  district's  share was of the Fort Drum school district
     6  grants distributed in the base year for the operating expenses  of  such
     7  school districts.
     8    § 37. Learning technology grants. In addition to apportionments other-
     9  wise  provided  by section 3602 of the education law, for aid payable in
    10  the school year 2004-2005, the commissioner  of  education  may  approve
    11  school  district  and board of cooperative educational services applica-
    12  tions for funding of approved learning  technology  programs,  including
    13  services  benefiting  nonpublic school students, pursuant to regulations
    14  promulgated by the commissioner of education and approved by the  direc-
    15  tor  of  the  budget,  provided,  however,  that  the sum of such grants
    16  awarded shall not exceed three million two hundred eighty-five  thousand
    17  dollars  ($3,285,000).   Notwithstanding section 3609-a of the education
    18  law, the commissioner of education is authorized to pay from the general
    19  support for public schools appropriations, up to seventy percent of such
    20  sum, for such purposes, prior to April first  of  the  school  year  for
    21  which  such moneys are available, with the remainder payable on or after
    22  such date.
    23    § 38. Notwithstanding any other provisions of law to the contrary,  of
    24  the  moneys  appropriated to the state education department in a chapter
    25  of the laws of 2004, enacting the education, labor and family assistance
    26  budget under the elementary, middle, and  secondary  education  program,
    27  general  fund  account  for  general  support for public schools for the
    28  2004-2005 school year for programs for homeless children and youth shall
    29  include (a) expenditures for the  transportation  of  homeless  children
    30  pursuant  to  paragraph b of subdivision 4 of section 3209 of the educa-
    31  tion law, up to the amount of the approved costs of the most cost-effec-
    32  tive mode of transportation, in accordance with a plan prepared  by  the
    33  commissioner  of education as approved by the director of the budget and
    34  (b) the sum of thirty thousand dollars ($30,000) to the  credit  of  the
    35  state  purposes  account  of the state education department to carry out
    36  the purposes of this section relating to reimbursement of  division  for
    37  youth shelters transporting such pupils.
    38    §  39.  Notwithstanding  any inconsistent provision of law, any amount
    39  share of federal financial participation under medicaid for  school  age
    40  and  preschool special education programs and services that is in excess
    41  of one hundred seventy million dollars ($170,000,000) may be made avail-
    42  able, subject to the appropriation of such excess, in the  same  propor-
    43  tion as such funds attributable respectively to preschool and school age
    44  programs  and services bear to such one hundred seventy million dollars,
    45  for payment of prior year claims for preschool  services  under  section
    46  4410  of  the education law and the payment of prior year adjustments of
    47  state aid claims for school age students.
    48    § 40.  Special apportionment for salary expenses.  a.  Notwithstanding
    49  any  other  provision  of  law,  upon application to the commissioner of
    50  education, not sooner than June 13, 2005 and not  later  than  June  23,
    51  2005,  a  school  district  eligible  for  an  apportionment pursuant to
    52  section 3602 of the education law shall be eligible to receive an appor-
    53  tionment pursuant to this section, for the school year ending  June  30,
    54  2005,  for  salary  expenses incurred between April 1 and June 30, 2005,
    55  and such apportionment shall not exceed the deficit reduction assessment
    56  of 1990-91 as determined by the commissioner of education,  pursuant  to

        A. 11692                           26

     1  paragraph f of subdivision 1 of section 3602 of the education law, as in
     2  effect  through  June  30,  1993, plus one hundred eighty-six percent of
     3  such amount for a city school district in a city with  a  population  in
     4  excess  of  one  million  inhabitants,  and shall not exceed such salary
     5  expenses. Such application shall be made by a school district, after the
     6  board of education or trustees have adopted a resolution to do so and in
     7  the case of a city school district in a city with a population in excess
     8  of one hundred twenty-five thousand inhabitants, with  the  approval  of
     9  the mayor of such city.
    10    b.  The  claim  for  an  apportionment to be paid to a school district
    11  pursuant to subdivision a of this section  shall  be  submitted  to  the
    12  commissioner  of  education  on  a form prescribed for such purpose, and
    13  shall be payable upon determination by such commissioner that  the  form
    14  has been submitted as prescribed. Such approved amounts shall be payable
    15  on the same day on or before September, 2005, as funds provided pursuant
    16  to subparagraph 4 of paragraph b of subdivision 4 of section 92-c of the
    17  state  finance law, on the audit and warrant of the state comptroller on
    18  vouchers certified or approved by the commissioner of education  in  the
    19  manner  prescribed by law from moneys in the state lottery fund and from
    20  the general fund to the extent that the amount paid to a school district
    21  pursuant to this section exceeds the amount, if  any,  due  such  school
    22  district  pursuant  to subparagraph 2 of paragraph a of subdivision 1 of
    23  section 3690-a of the education law in the 2005-06 school year.
    24    c. Notwithstanding the provisions of section 3609-a of  the  education
    25  law, an amount equal to the amount paid to a school district pursuant to
    26  subdivisions  a  and  b of this section shall first be deducted from the
    27  following payments due the school district  during  the  2005-06  school
    28  year pursuant to subparagraphs 1, 2, 3, 4 and 5 of paragraph a of subdi-
    29  vision  1 of section 3609-a of the education law in the following order:
    30  the lottery apportionment payable pursuant to  subparagraph  2  of  such
    31  paragraph  followed  by  the  fixed  fall  payments  payable pursuant to
    32  subparagraph 4 of such paragraph and  then  followed  by  the  districts
    33  payments  to  the teachers' retirement system pursuant to subparagraph 1
    34  of such paragraph, and any remainder to be deducted from the individual-
    35  ized payments due the district pursuant to paragraph b of such  subdivi-
    36  sion shall be deducted on a chronological basis starting with the earli-
    37  est payment due the district.
    38    § 41. Bilingual education grants. In addition to apportionments other-
    39  wise  provided  by section 3602 of the education law, for aid payable in
    40  the 2004-2005 school year, the commissioner  of  education  may  approve
    41  school  district  and  board  of  cooperative  educational  services and
    42  college or university applications for  funding  of  approved  bilingual
    43  education  programs,  provided,  however,  that  the  sum of such grants
    44  awarded shall not exceed eleven million  two  hundred  thousand  dollars
    45  ($11,200,000).
    46    § 42. Grants for teacher support. In addition to apportionments other-
    47  wise  provided by section 3602 of the education law, of the funds appro-
    48  priated for the general support for public  schools  for  the  2004-2005
    49  school  year,  including  but  not limited to appropriations for teacher
    50  support, payments shall be made as follows: to the city school  district
    51  of  the city of New York, sixty-two million seven hundred seven thousand
    52  dollars ($62,707,000); to the Buffalo city school district, one  million
    53  seven  hundred forty-one thousand dollars ($1,741,000); to the Rochester
    54  city  school  district,  one  million   seventy-six   thousand   dollars
    55  ($1,076,000);  to  the  Yonkers  city  school  district, one million one
    56  hundred forty-seven thousand dollars ($1,147,000); and to  the  Syracuse

        A. 11692                           27

     1  city  school  district,  eight hundred nine thousand dollars ($809,000).
     2  All funds made available to a school district pursuant to  this  section
     3  shall  be  distributed among teachers including prekindergarten teachers
     4  and  teachers  of  adult  vocational and academic subjects in accordance
     5  with this section and shall be in addition  to  salaries  heretofore  or
     6  hereafter  negotiated  or  made  available;  provided, however, that all
     7  funds distributed pursuant to this section for the current year shall be
     8  deemed to incorporate all funds distributed pursuant to former  subdivi-
     9  sion  27 of section 3602 of the education law for prior years. In school
    10  districts where the teachers are represented by certified or  recognized
    11  employee  organizations,  all  salary  increases funded pursuant to this
    12  section  shall  be  determined  by  separate   collective   negotiations
    13  conducted pursuant to the provisions and procedures of article 14 of the
    14  civil  service law, notwithstanding the existence of a negotiated agree-
    15  ment between a school district and a certified  or  recognized  employee
    16  organization.
    17    §  43.  Special academic improvement grants. In addition to apportion-
    18  ments otherwise provided by section 3602 of the education law,  for  aid
    19  payable  in the 2004-2005 school year, of the funds appropriated for the
    20  general support for  public  schools  for  the  2004-2005  school  year,
    21  including  but  not  limited  to  appropriations  for  special  academic
    22  improvement grants, payments shall be made pursuant to subdivision elev-
    23  en of section 3641 of the education law, provided, however, that the sum
    24  of  such  grants  awarded  shall  not   exceed   six   million   dollars
    25  ($6,000,000).
    26    §  44.  Teachers  of tomorrow. Notwithstanding the provisions of para-
    27  graph b of subdivision 2 of section 3612 of the  education  law,  grants
    28  awarded  to school districts pursuant to such section shall be paid from
    29  moneys apportioned from appropriations in support of general support for
    30  public schools and shall be limited to a school year program  of  twenty
    31  million dollars ($20,000,000) for the 2004-2005 school year.
    32    §  45.  a.  Notwithstanding  any  other law, rule or regulation to the
    33  contrary, any moneys appropriated to the state education department  may
    34  be  suballocated  to  other state departments or agencies, as needed, to
    35  accomplish the intent of the specific appropriations contained therein.
    36    b. Notwithstanding any other law, rule or regulation to the  contrary,
    37  moneys  appropriated  to the state education department from the general
    38  fund/aid to localities,  local  assistance  account-001,  shall  be  for
    39  payment  of  financial  assistance,  as scheduled, net of disallowances,
    40  refunds, reimbursement and credits.
    41    c. Notwithstanding any other law, rule or regulation to the  contrary,
    42  all  moneys  appropriated  to  the state education department for aid to
    43  localities shall be available for payment of aid heretofore or hereafter
    44  to accrue and may be suballocated to other departments and  agencies  to
    45  accomplish the intent of the specific appropriations contained therein.
    46    d.  Notwithstanding any other law, rule or regulation to the contrary,
    47  moneys appropriated  to  the  state  education  department  for  general
    48  support  for  public  schools may be interchan