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SED School Aid Runs Available

Executive Budget Proposal for 2018-19 & SED School Aid Runs

Governor Cuomo’s 2018-19 State Budget Proposals for Education released yesterday shows a $769 million increase (3 percent increase overall) for education. The Executive Budget released today includes the following:

Foundation Aid
With additional $50 million Community Schools set-aside

$338 million

Reimbursement for expense-based aids

$317 million

Fiscal Stabilization Fund

$64 million

Expanded pre-k for 3 and 4-year olds

$15 million

Empire State after-school program

$10 million

Early college high schools

$9 million

Smart Start

$6 million

Breakfast After the Bell

$5 million

Expanded AP Access

$2.5 million

Other education initiatives

$2.5 million

Total State Aid Increases

$769 million
(3% increase overall)


In addition, the Governor proposed large school districts which rely heavily on State aid to submit school-level funding plans to SED and the Division of the Budget for approval.  School districts would not be eligible to receive their annual State Aid increase until a plan is submitted. For the Big 5 city school districts, this reporting requirement would begin in 2018-19, and 10 other districts with nine or more individual schools that receive more than 50% of their revenue in State aid would be required to do so the following year.  

The Executive Budget also provides additional funding for remaining districts to transition to full-day kindergarten, and places a 2 percent cap on expense based aids starting in the 2019-20 school year. The Governor proposed a $338 million increase in Foundation Aid with no change to the formula.  Under this proposal, each district is guaranteed an increase of 0.25% over the 2017-18 Foundation Aid amount.

The Executive Budget proposes the enactment of a New York State Taxpayer Protection Act. This will include a shift from a state income tax to a payroll tax. Employers would pay a wage tax equal to the employee’s state income tax. Employers’ wage taxes would be fully deductible. State income tax would continue under this plan for income other than wages. The Department of Tax and Finance will release a report by the end of the week, that will elaborate the specifics of the Governor's Payroll Tax Proposal (which is not articulated in the Executive Budget). He noted that the report will lay out different options that the Executive will try to negotiate with the Legislature.

New York’s plan also includes setting up charitable funds that result in a state tax credit and federal deductibility. This will include a Public Education Fund and a Health Care Fund.

Concerning property taxes, the Governor emphasized New York needs to get property taxes down through additional sharing and cost containment. Local charitable organizations can be created at the local level, allowing full deductibility at the state and federal levels.

 

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