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The New York City Department of Education receives a portion of its overall budget in the form of Foundation Aid from New York State. While the State allows some of the increase in year-over-year Foundation Aid funding to be used for growth in general operating costs and investment in ongoing programs, the majority is subject to the provisions of the State’s “Contracts for Excellence.” New York City schools received Contracts for Excellence, or C4E, funds for the first time in the 2007-08 school year. These are funds that, under State law, must be distributed to certain schools and must be spent by those schools in specific program areas.