In addition, for FY01, we expanded the use of City Council funds from textbooks only to all instructional materials to meet
the changing needs of schools. Over the course of FY01, we examined the percentage of these funds used for textbooks vs.
other instructional materials and found that 67% ($8.4 million) of this allocation was scheduled by public schools and non-public
schools for textbooks.
Finally, for FY02, we added $0.9 million to the CSD supporting per capita funding, to fund the cost of scoring the new State
intermediate assessments in Science, Social Studies and Technology for Grade 8 students. We also added $1.0 million to the HSS
allocation to double the funding for the Student Activity Fund. Next year, this increase will be rolled into the HSS Basic
Instruction pupil per capita.
As noted earlier, to support the new Continuum, "Special Education Services as Part of a Unified Service Delivery System,"
we developed a "Special Needs/Academic Intervention Services" formula for CSDs, which is now being expanded to HSSs.
The success of our special education program depends in large part on superintendents' willingness to use the budgetary
discretion that has been given to them. This formula encompassed funds required to support students with disabilities,
and is less prescriptive than its precursor special education formulas, which were impediments to the successful implementation
of special education reforms and the provision of services in the least restrictive environment, as required by the
IDEA reauthorization. The redesign of the special education formula was guided by six principles:
add flexibility in combining resources to design program and services;
ensure stable funding to allow prevention/intervention, as well as mandated programs;
enable financial planning through retention of tax levy accruals (assuming compliance has been maintained);
break down barriers between different service categories; and
broaden focus from special education pupils to pupils with special needs.
- simplify the formula allocation process;
In order to accomplish these objectives, in CSDs, forty-five individual allocations recognizing various special needs of
pupils were consolidated into one comprehensive special needs/academic intervention services allocation. The HSS process
consolidated a similar number of legacy allocations.
We will continue to use this SN/AIS formula in FY02, with some minor changes. For example, the number of students in Level 1
reading decreased when compared to last year, thereby producing fewer students for the "virtual" special needs register. We
compensated for this reduction by increasing the percentage weighting for poverty students. Also, the formula reflects a
decrease in the percentage of self contained students from 25% to 22%. These changes resulted in a similar total "virtual"
register for CSDs of approximately 150,000. CSDs have been held harmless for any potential loss in funding as compared to
last year's base. The HSS's "virtual" special needs register is approximately 59,000. Special Needs registers for both CSDs and
HSS represent about 20% of the total register of the respective instructional levels.
Provision of mandated services continues to be the first priority. This consolidation includes components from the general
education and reimbursable budgets, as well as the special education budget. For example, Module 2B (CSD Special Needs),
Model B (HSS Special Needs) and Special Education Pupil Mainstreaming from the general education budget were included in
the consolidation, as well as PCEN, Special Reading (Chapter 53), State Incentive Grant and AIDP funds from the reimbursable
budget. These consolidations, of course, do not change our collective bargaining agreement obligations. Regrettably, we do
not have significantly increased funding to augment this allocation, as we did last year. Should additional appropriate funding
(such as Educationally Related Support Services Aid - ERSSA) become available on passage of the State budget, both HSS and CSD
Special Needs/AIS allocations will benefit.
All superintendencies must ensure that all students continue to receive IEP-mandated services, and supplementary supports and
services in the general education setting. In those few district FMCs that have shown an increase in the number of newly-recommended
students not placed after 60 days, the level of the surplus roll may be impacted.
As the new Continuum represents a major departure from past practice in the provision of services to students with disabilities,
its implementation has brought a host of issues for which technical assistance will continue to be required. We are planning to
offer technical assistance sessions throughout the coming year for all Superintendents and business staff to report on and share
best practices, and to offer alternative and less costly delivery-of-service models to interested parties.
For the past three years, the Mayor's budget has afforded us a comprehensive summer program. FY02's Summer Program is projected
to be even more extensive, with funding to support additional students. Over $175 million has been earmarked for summer
instructional programs for the most at risk, in addition to funding for food services, testing services and transportation,
enabled by a State grant.
Summer programs are targeted to students who fail to meet promotion criteria, but may, at the superintendentÕs discretion,
provide extra support for other students. Summer programs are also expected to provide continuity with school year programs
such as Project Read, Reduced Early Grade Class Size, and High School Regents subject areas. See Section D
for more details.
In addition to Summer School, Break-Aways -- summer camps intended to expand the "learning" year -- will continue.
These camps will add from 21 to 28 days of fully articulated programming to the regular school year. This summer,
Break-Aways will serve approximately 10,000 students entering grades 4 through 8.
Summer programs for at-risk students will be available this year again to children who do not attend public school during the year.
REDUCED EARLY GRADE CLASS SIZE
Our Early Grade Class Size Reduction initiative, supported by State and Federal funds, is continuing at a higher Federal funding level.
With no State budget in place, it is prudent to assume no change in State restrictions on use of these dollars. State dollars must
first be used to maintain FY01 class size reduction efforts and only then can they be used for new classes in "priority" schools.
"Priority" schools are to be determined on the basis of academic need and possibly other criteria, such as high average class sizes.
Start-up OTPS will be provided only for those classes created with State dollars in the 2001-02 school year. State resources cannot
be used for professional development activities or administrative costs.
Federal class size reduction dollars increased by $16 million, from $66 million to $82 million. These dollars may first be dedicated
to maintaining FY01 class size reduction efforts, and then to create new classes or hire supplemental teachers if dollars permit.
Federal dollars can be used, within prescribed limits, for professional development activities and administrative costs.
However, Federal resources cannot be used to cover OTPS start-up costs. While State funds must be used to open new classes,
we understand that in many schools there are significant space constraints. This difficulty is compounded by the State Class
Size Reduction Program's requirement that new classes be created according to greatest need (regardless of space constraints)
and the inability to utilize teaching methods that create smaller group instruction. In order to facilitate class size reduction,
we will do everything possible to accommodate overcrowded districts by reallocating dollars among programs, consistent with
There are separate rules for state and federal Early Grade Class Size Programs. See Section F for more details.
FY99 was the first year of an announced five-year phase in to provide pre-kindergarten programs to all four-year old children
in the state. The Governor's budget includes level funding for FY02. In addition, our reserve from FY01 is available for the
FY02 program and has provided a one-time $19 million increase over last year's program. Our FY02 program, including our local
match, will provide funding for almost 50,000 seats. In order to maximize these resources fully, we are seeking program flexibility
under existing law to merge two half-day slots into a single full-day slot. As of this writing, however, CSD's should not assume
that such flexibility is available to them. The allocation, plus the local match, continues to provide per capita funding roughly
equivalent to our half-day SuperStart Program ($3,700 per capita). Services should be targeted to economically-disadvantaged
See Section J for more information about Universal Pre-K.
THE CHANCELLOR'S DISTRICT
In FY00, the Chancellor assumed direct control for 47 of 97 Schools Under Registration Review (SURR). This year, the Chancellor's
District (District 85 for CSDs and District 74 for HSS), with multiple programmatic supports, will continue to be responsible for
this group of low-performing schools. This allocation memo includes most of the funding required for District 85's comprehensive
program, including funding for teachersÕ extended time in CSDs (15% increment), as well as funding for reduced early grade class
size, and related services are allocated herein. In the Chancellor's District elementary schools, the class coverage ratio for
teachers will be increased from 1.20 to 1.33 to accommodate the increased costs of the Success for All Program. In addition, an
allocation of $20 million is included in this document to offset these expanded, diversified needs. Other adjustments to the
Chancellor's District funding, if necessary, will be made subsequent to this allocation memorandum. As opposed to FY01, Drug
Program funding for students attending a Chancellor's District (85 or 74) school will be allocated to the geographic district,
which is expected to provide appropriate services to all their resident students.
As a result of significant academic progress, in FY02, nine schools will be returned from the Chancellor's District to their
original CSD. These schools will continue to receive the financial supports enjoyed in District 85 for the first year after
their return to their originating district. A Module 5 allocation, included in this Initial Allocation Memorandum, for each of
the "returnees" covers transition funding for the excess costs of the enhanced programming received in the Chancellor's District,
e.g., Teacher's Centers, Staff Developers, etc. The average teacher salaries include the excess cost of the extended school
day in these particular schools.
In addition to the "transition" funding indicated above, for the first time we are able to allocate in this Initial Memorandum
funding for all Category 1 Schools Under Registration Review, whether or not they are in the Chancellor's District. Normally,
this funding has been allocated at a later point in the year.
The three Chancellor's District schools that were designated last year for privatization, where parents rejected a change to
charter status, will be receiving additional financial support. Shortly, additional allocations totaling $3.4 million will be
issued to fund enhanced programming at these schools.
EIGHT PLUS MODEL
The Eight Plus program is designed to help students meet promotion criteria, while continuing their support in achieving
academic success in the continuum for grades 9 to 12. Flexible models in a variety of settings support a standards-based
core curriculum, while providing students with a seamless transition to high schools. Eight Plus students are reflected
in the register of the affected superintendency, and therefore, enrollment-based allocations, such as for Module 1 and Special
State Funds (NYSTL, etc.) are included in initial allocations. In addition, affected districts are allocated funds for
enrichment that will enable lower class sizes, guidance and attendance services, commensurate with the Eight Plus model.
The New York City Police Department (NYPD) has provided safety services to BOE schools since December 1998. In FY01, the
City significantly augmented the safety budget by adding an additional 500 Safety Agents, which had a direct benefit to schools.
For FY02, there will be another increase to the school safety budget, adding another 300 School Safety Agents, equipment and supplies.
Minor maintenance funding has remained flat in the Governor's budget, although the original LADDER plan increased minor maintenance
to $53 million in FY02. A preliminary maintenance "allotment" has been established by the Division of School Facilities (DSF)
for each superintendency based on the instructional square footage of its schools. Financial accounting for this new funding will
be managed by DSF. Additional information about this program has been disseminated by DSF in letters individually addressed to
each superintendent, dated March 16, 2001.
OTHER CONTINUING PROGRAMS
The following programs have been in place for several years and continue to be funded. Please refer to initial allocation
memos of past years for details.
Project ARTS (Arts Restoration Throughout the Schools) enables districts and high schools to support the four art
forms -- art, music, dance, and theater.
Project Smart Schools. All middle schools and grades 6 - 8 in elementary schools and high schools have been equipped
with computers and printers under this initiative.
Early Registration funding in the amount of $1 million remains in the per capita allocation to enable all CSDs
to have a successful and smooth 2001-2002 school year opening.
School Leadership Teams in every CSD, HSS and citywide Special Education school will receive an allocation for
planning, professional development and continuous improvement.
Ending Social Promotion funding earmarked for high schools will be maintained at $25 million to assist students in
preparing for the new Regents exams. As mentioned earlier, the CSD allocation for Ending Middle School Social Promotion
has been folded into the new Module 5 per capita "AIS" formula.
The FY00 Regents Requirements for English Language Learners (ELL) in effect for secondary schools will continue to be funded in FY02.
These requirements raise the amount of time for instruction in English.
Funding for the Fit For Life program, focusing on health and physical education, continues to be available at the FY01 level.
Unfortunately, the anticipated increase in funding for the third year of phase-in has been eliminated by the City.
CSD and HSS program funding is folded into the Special Needs/AIS formula. Dollars for Fit for Life coordinators have been
merged with CSD and HS Superintendents' administrative budgets in Module 1.
The City budget includes funding for several new programs. Funds will be allocated for these initiatives at a later date,
when relevant student test data are available and options for library collections have been selected.
Project Science (Science Saturdays)
Project Science will provide 45,000 middle and high school students at 503 sites with enrichment and academic support in
the field of science, math and technology education. During FY01, 190 sites, 1,398 classes, and 17,687 students participated
in an 8-week program. Additionally, a Science/Math/Technology Weekends website was designed to support the program.
This site included suggested activities, resources and links for students and teachers. For FY02, the City allocated $25
million for this program.
High Intensity English (Project English)
Project English targets 38,000 English language learners who have been in bilingual/ESL programs for three or more years and
are making slow progress toward English proficiency by providing an intensive English language program. In FY01, all districts
and high school superintendents operated Saturday English programs, in 260 sites, 883 classes, for 15,685 students. For FY02,
the City allocated $9 million for this program.
Classroom Library Initiative
The City allocated $31.5 million for this classroom library initiative. During FY01, $15 million in City funding was allocated
to fund classroom library collections for 14,000 general education classes in grades K-3. Each classroom was provided with a core
library of 150 books and three additional modules. The remaining $16.5 million is earmarked for FY02 library collections, for an
additional 7,000 general education classes in grades 4-8, as well as special education classes.
The In-School Suspension Program provides instructional and guidance support to kindergarten through 12th grade students removed
or suspended from the classroom for behavioral disruptions. Our request included funding to accommodate 45,000 principal and
superintendent suspensions, however, the $19.1 million City allocation will necessitate a downsizing of our original concept.
During FY01, allocations were distributed to superintendents to develop pilot programs or to enhance existing programs for
8-10,000 students. The senior superintendents will confer with the superintendents in their boroughs shortly to determine
allocations for FY02.
OTHER FUNDING ISSUES AND CONSIDERATIONS
The number of charter schools continues to expand. In FY01, there were a total of fourteen - six conversions and eight new charters.
For FY02, two of the six conversions will revert back to BOE public schools, one new conversion will be added along with five new
charters, for a total of eighteen operating charter schools. CSD and HSS registers have been adjusted to reflect projected charter
school and conversion enrollment. For FY02, the base per capita funding for each charter school student will cost us $7,006 in
addition to State categorical entitlements. We also provide each charter school with free transportation services. Recently, a
Department of Education ruling established each charter school as a separate Local Educational Agency (LEA) for ESEA purposes only.
Therefore, starting in FY02, Federal funding under Titles I, II, IV, and VI will be allocated directly from the State to each
During FY01, most collective bargaining agreements between the Board and its employees' unions expired. Even though certain
unions have thus far negotiated new settlements (e.g., District Council 37 -- school aides, family paraprofessionals,
food service workers, office clericals, accounting and computer titles, and Communications Workers of America -- district business
officers, principal administrative associates), the allocations presented in this memorandum do not reflect any collective
bargaining increases. Funding for these increases will be allocated shortly, under separate cover. It should be noted that
recent City contracts including that with DC37 and other Board unions contain a restrictive "no lay-off" clause. Central will
be preparing a redeployment process shortly. Collective bargaining increases for all other unions, where settlements have not
yet been finalized as of this writing (e.g., the United Federation of Teachers) will be made at a later date. CSDs and HSSs
will not be responsible for collective bargaining costs for staff funded in tax levy.
School selections for the new CSA differentials for school size, school performance and low achieving schools have not been
determined for FY02. When decisions are made and staff payrolls adjusted accordingly, we will allocate funds to offset the
No increases have been provided for Local 891 employees (Custodians and Custodial Engineers) since a new settlement has not
been finalized. In the event that a settlement is reached during this fiscal year, funding will be identified, which will,
in turn, be allocated to districts accordingly.
Funding for collective bargaining increases for staff employed in reimbursable programs must be managed from each district's
reimbursable allocation. (Tax levy funding will not be provided for reimbursable programs.) In order to accommodate increased
salary costs, where reimbursable appropriations have increased this year, we have increased the per capita amounts used in the
allocation formulas. Refer to the Scheduling Circular, to be issued shortly, for information regarding budgeting for collective
bargaining reserves in reimbursable programs.
For FY02, a number of district designations will have changed from FY01. This includes eight CSD schools that are being
transferred to the Chancellor's District (District 85) and nine schools that are being transferred from District 85 to
their home, geographic district.
Regarding school transfers in and out of District 85, as well as school closings and openings, allocations have been
adjusted to reflect these changes. For example, registers for a school that is being transferred to District 85 will be
reduced from the sending district and will be reflected in the District 85 register count. Likewise, registers for a
District 85 school that is closing will assume to revert to the original geographic district. Along with registers,
allocations to receiving districts will include associated school funding for: additional school organizations, marginal
breakage, Title I (if appropriate), School Leadership Teams, etc.
Allocations in this document have been arranged by instructional district designation. The list on the following page
displays the number and description for each of these districts. Certain schools have been given their own district
designation due to their unique governance structure.