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2006 New York Code - Apportionment Of Public Moneys To School Districts Employing Eight Or More Teachers.
§ 3602. Apportionment of public moneys to school districts employing eight or more teachers. Notwithstanding any other provisions of this chapter or any other provisions of law, each school district of the state employing eight or more teachers shall receive its apportionment of public money payable during the school year commencing July first, nineteen hundred ninety-three and during subsequent school years pursuant to the provisions of this section and in lieu of any apportionments or payments otherwise payable under any other section of this chapter except any such apportionments or payments that may be payable to such district for school lunches, for textbooks, school library materials, or computer software, for services or programs provided by a board of cooperative educational services or by a county vocational education and extension board for such district, for the education of Indian children of a reservation under a contract with the state, by virtue of chapter six hundred thirty-five of the laws of nineteen hundred sixty-one, or for experimental or special programs in selected school districts, including but not limited to special apportionments and grants-in-aid pursuant to section thirty-six hundred forty-one of this article. 1. Definitions. As used in this section the following terms shall be defined as follows: a. "Current year" shall mean the school year during which the apportionment is to be paid pursuant to this section. b. "Base year" shall mean the school year immediately preceding the current year. c. For aid payable in the nineteen hundred ninety-six--ninety-seven school year, "actual valuation" shall mean the valuation of taxable real property in a school district obtained by taking the assessed valuation of taxable real property within such district as it appears upon the assessment roll of the town, city, village, or county in which such property is located, for the calendar year immediately preceding the calendar year in which the base year commenced, after revision as provided by law, and dividing it by the state equalization rate as determined by the state board of equalization and assessment, for the assessment roll of such town, city, village, or county completed during such preceding calendar year. For aid payable in the nineteen hundred ninety-seven--ninety-eight school year and thereafter, "actual valuation" shall mean the valuation of taxable real property in a school district obtained by taking the assessed valuation of taxable real property within such district as it appears upon the assessment roll of the town, city, village, or county in which such property is located, for the calendar year two years prior to the calendar year in which the base year commenced, after revision as provided by law, and dividing it by the state equalization rate as determined by the state board of equalization and assessment, for the assessment roll of such town, city, village, or county completed during such preceding calendar year. The actual valuation of a central high school district shall be the sum of such valuations of its component districts. For aid payable in the nineteen hundred ninety-six--ninety-seven school year for purposes of aid payable pursuant to this chapter, such actual valuation shall not exceed one hundred seventeen percent of the average of such actual valuation for the two preceding years. For aid payable in the two thousand four--two thousand five school year and thereafter, such actual valuation shall include any actual valuation equivalent of payments in lieu of taxes determined pursuant to section four hundred eighty-five of the real property tax law. d. "Average daily attendance" shall mean the total number of attendance days of pupils in a public school of a school district plus the total number of instruction days for such pupils receiving homebound instruction including pupils receiving instruction through a two-way telephone communication system, divided by the number of days the district school was in session as provided in this section. Except for the purposes of subdivision thirteen of this section, the attendance of pupils with disabilities attending under the provisions of paragraph c of subdivision two of section forty-four hundred one of this chapter shall be added to average daily attendance. Equivalent attendance shall mean the quotient of the total number of student hours of instruction in programs in a public school of a school district or a board of cooperative educational services leading to a high school diploma or a high school equivalency diploma as defined in regulations of the commissioner for pupils under the age of twenty-one not on a regular day school register of the district, divided by one thousand. Except for the purposes of subdivision thirteen of this section, average daily attendance shall include the equivalent attendance of the school district. For the purposes of secondary school weighting, such equivalent attendance shall be considered as average daily attendance in grades seven through twelve. In computing such attendance, school districts may, with the commissioner's approval, exclude attendance for those days on which school attendance was adversely affected because of an epidemic or manmade or natural disaster or act of terrorism. In computing such attendance, the school district shall: (1) determine the number of religious holidays which fall on a school day within a school year according to regulations established by the commissioner, such religious holidays to be duly recognized as such for purposes of this section by duly adopted resolution of the board of education; (2) deduct the aggregate attendance on such religious holidays from the total aggregate attendance, by grade level; (3) deduct such religious holidays from the total number of days of session, by grade level; and (4) compute the average daily attendance for the school year. e. Pupils with special educational needs. (1) "Percentage of pupils with special educational needs" shall be based on the following tests: the third and sixth grade reading and math tests administered in spring of nineteen hundred eighty-five and the spring of nineteen hundred eighty-six. Such percentage shall be calculated as follows: (i) determine the number of pupils tested who scored below the statewide reference point as determined by the commissioner on each test administered pursuant to this subparagraph, plus pupils, other than pupils with handicapping conditions and pupils with limited English proficiency as defined by the commissioner who are exempt from taking such tests, provided, however, that a district employing eight or more teachers in such years but not operating each grade may use the percentage computed pursuant to this paragraph for the district which in such years enrolled the greatest number of pupils in such grade from such district; (ii) divide the sum of such numbers by the number of such pupils who took each of such tests, plus pupils, other than pupils with handicapping conditions and pupils with limited English proficiency as defined by the commissioner who are exempt from taking such tests, provided, however, that a district which in any of the applicable school years did not maintain a home school or employed fewer than eight teachers, and which in the base year employed eight or more teachers, may use the scores in a later test as designated by the commissioner for the purposes of this paragraph; (iii) express the result as a percentage carried to one decimal place without rounding; and (iv) for the purposes of the computation made pursuant to this subparagraph, pupils attending campus schools of the state university shall be included in the numbers of pupils in the district in which they reside. The percentage of such pupils in component districts shall be used in the case of central high school districts. The commissioner shall make adjustments for differences in tests and test administration in accordance to regulations adopted for such purposes. (2) (i) For the computation of total wealth pupil units, "pupils with special educational needs" shall be computed by multiplying the percentage of pupils with special educational needs by the district's adjusted average daily attendance. (ii) For the computation of total aidable pupil units pursuant to subdivision eight of this section for aid payable in the nineteen hundred ninety-six--ninety-seven and prior school years, "pupils with special educational needs" shall be computed by multiplying the percentage of pupils with special educational needs by the district's adjusted average daily attendance for the base year. (iii) For the computation of total aidable pupils units pursuant to subdivision eight of this section for aid payable in the nineteen hundred ninety-seven--ninety-eight school year and thereafter, "pupils with special educational needs" shall be the product of the percentage of pupils with special educational needs, the district's adjusted average daily attendance for the year prior to the base year, and the enrollment index. (3) "Weighted pupils with special educational needs" shall be computed by multiplying pupils with special educational needs by twenty-five percentum, with the result rounded up to the next whole number. For the purposes of the computation of additional aidable pupil units for inclusion in total wealth pupil units, the computations made pursuant to this paragraph shall include only resident pupils. f. "Expense per pupil" shall mean approved operating expense for the year prior to the base year divided by the sum, computed using year prior to the base year pupil counts, of the total aidable pupil units plus weighted pupils with handicapping conditions. Expense per pupil for each borough in the city school district of the city of New York shall be the expense per pupil of the entire city school district. For aid payable in the nineteen hundred ninety-eight--ninety-nine school year, expense per pupil for the city school district of the city of Buffalo shall be five thousand nine hundred eighty-five. g. "Summer session pupils" shall mean those pupils attending approved programs of instruction operated by the district during the months of July and August in accordance with the regulations promulgated by the commissioner. i. "Pupil wealth ratio" shall mean the number computed to three decimals without rounding obtained when actual valuation of a school district divided by the total wealth pupil units is divided by the statewide average actual valuation per total wealth pupil unit as computed by the commissioner in accordance with the provisions of this section. Such statewide average actual valuation per total wealth pupil unit shall be established each year by the commissioner using the latest single year actual valuation computed under paragraph c of this subdivision. Such statewide average shall be transmitted to the school districts. Such statewide average shall be rounded to the nearest hundred and shall include the actual valuation and total wealth pupil units of all school districts eligible for aid pursuant to this section except central high school districts. For the purposes of calculating such statewide average the data for the city school district of the city of New York shall be citywide data. j. "Comprehensive operating aids base" for the purposes of this section (i) for aid payable in the nineteen hundred ninety-three--ninety-four school year, shall mean: the net total amount a district was eligible to receive during the base year under the provisions of subdivisions twelve, thirteen, fifteen, sixteen, twenty-two, twenty-three, twenty-six, and thirty-two of this section and the adjustment in aid due to the selection made pursuant to subdivision eighteen of this section, except that for aid payable in the nineteen hundred ninety-three--ninety-four school year, such term shall mean the sum of the aids payable in the nineteen hundred ninety-two--ninety-three school year pursuant to (1) the following subdivisions of section thirty-six hundred one-a: twelve or fifteen, whichever applies, and thirteen, or, in the alternative, eighteen; sixteen; twenty; twenty-two; twenty-three; twenty-five; twenty-six; twenty-nine; thirty; thirty-two; thirty-three; and thirty-four; (2) an amount equal to the product of transportation expense approved for aid in the nineteen hundred ninety-two--ninety-three school year in accordance with subdivision seven of section thirty-six hundred one-a of this article multiplied by the remainder of nine-tenths minus the building aid ratio computed for aid payable in the nineteen hundred ninety-two--ninety-three school year pursuant to subdivision three of section thirty-six hundred one-a of this article; and (3) any other adjustments pursuant to paragraphs k, l and m of subdivision one of section thirty-six hundred nine of this article, and except that the comprehensive operating aids base for aid payable in the nineteen hundred ninety-three--ninety-four school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-six; whereas: (ii) for aid payable in the nineteen hundred ninety-four--ninety-five and nineteen hundred ninety-five--ninety-six school years, such term shall mean the net total amount a district was eligible to receive during the base year under the provisions of subdivisions twelve, fifteen, sixteen, twenty-two, twenty-three, twenty-six, and thirty-two of this section and the adjustment in aid due to the selection made pursuant to subdivision eighteen of this section, except that: (A) the comprehensive operating aids base for aid payable in the nineteen hundred ninety-four--ninety-five school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-eight, and (B) the comprehensive operating aids base for aid payable in the nineteen hundred ninety-five--ninety-six school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-nine; (iii) for aid payable in the nineteen hundred ninety-six--ninety-seven school year, such term shall mean the net total amount a district was eligible to receive during the base year under the provisions of clause (i) of paragraph a of subdivision twelve, and subdivisions fifteen, sixteen, twenty-two, twenty-three and twenty-six of this section and the adjustment in aid due to the selection made pursuant to subdivision eighteen of this section, except that in a city school district in a city with a population of more than one million, for aid payable in the nineteen hundred ninety-six--ninety-seven school year, the comprehensive operating aids base shall be increased by the amount by which growth aid for aid payable in the nineteen hundred ninety-four--ninety-five school year calculated pursuant to subdivision thirteen of this section notwithstanding section five hundred thirty-eight of chapter one hundred seventy of the laws of nineteen hundred ninety-four exceeds growth aid calculated for such school year, and except that the comprehensive operating aids base for aid payable in the nineteen hundred ninety-six--ninety-seven school year, and for aid calculations for subsequent school years based on aid payable in the such school year, shall be deemed final and not subject to change on or after July first, two thousand; (iv) for aid payable in the nineteen hundred ninety-seven--ninety-eight school year, such term shall mean the net total amount a district was eligible to receive during the base year under the provisions of clause (i) of paragraph a of subdivision twelve, and subdivisions fifteen, sixteen, twenty-two, and twenty-three of this section and the adjustment in aid due to the selection made pursuant to subdivision eighteen of this section, except that the comprehensive operating aids base for aid payable in the nineteen hundred ninety-seven--ninety-eight school year, and for aid calculations for subsequent school years based on aid payable in the such school year, shall be deemed final and not subject to change on or after July first, two thousand; and (v) for aid payable in the nineteen hundred ninety-eight--ninety-nine school year and thereafter, such term shall mean the net total amount a district was eligible to receive during the base year under the provisions of clause (i) of paragraph a of subdivision twelve, and subdivisions fifteen, and sixteen of this section and the adjustment in aid due to the selection made pursuant to subdivision eighteen of this section, except that the comprehensive operating aids base for aid payable in the nineteen hundred ninety-eight--ninety-nine school year and thereafter, and for aid calculations for subsequent school years based on aid payable in such school years, shall be deemed final and not subject to change on or after July first of the school year following the last school year in which the commissioner may last accept and certify for payment any additional claim for such school year pursuant to paragraph a of subdivision five of section thirty-six hundred four of this article. k. (1) For aid payable in the nineteen hundred ninety-six--ninety-seven school year, "alternate pupil wealth ratio" shall mean the number computed to three decimals without rounding obtained when the adjusted gross income of a school district for the calendar year prior to the calendar year in which the base year began divided by the total wealth pupil units of such district is divided by the statewide adjusted gross income per total wealth pupil unit. Such statewide average gross income per pupil shall be established each year by the commissioner and shall be transmitted to school districts by May first. For the purposes of this paragraph, the income data shall be computed in accordance with regulations adopted by the commissioner of taxation and finance based upon personal income tax returns for the calendar year two years prior to the calendar year in which the current school year commences, as reported to the commissioner in February of the base year, including the results of the temporary school district address review validation and correction process or, commencing with aid payable in the nineteen hundred ninety-four--ninety-five school year, the results of the permanent computerized statewide school district address match and income verification system. The income of the city school district of the city of New York shall be the sum of the income of the boroughs of the city. Such statewide average shall be rounded to the nearest hundred and shall include the adjusted gross income and total wealth pupil units of all school districts eligible for aid pursuant to this section except central high school districts. For the purposes of calculating such statewide average the data for the city school district of the city of New York shall be citywide data. The adjusted gross income of a central high school district shall equal the sum of the adjusted gross income of each of its component school districts. (2) For aid payable in the nineteen hundred ninety-seven--ninety-eight school year and thereafter, "alternate pupil wealth ratio" shall mean the number computed to three decimals without rounding obtained when the adjusted gross income of a school district for the calendar year two years prior to the calendar year in which the base year began divided by the total wealth pupil units of such district is divided by the statewide adjusted gross income per total wealth pupil unit. Such statewide average gross income per pupil shall be established each year by the commissioner and shall be transmitted to school districts. For the purposes of this paragraph, the income data shall be computed in accordance with regulations adopted by the commissioner of taxation and finance based upon personal income tax returns for the calendar year three years prior to the calendar year in which the current school year commences, as reported to the commissioner by September of the base year, including the results of the temporary school district address review validation and correction process or, commencing with aid payable in the nineteen hundred ninety-four--ninety-five school year, the results of the permanent computerized statewide school district address match and income verification system. The income of the city school district of the city of New York shall be the sum of the income of the boroughs of the city. Such statewide average shall be rounded to the nearest hundred and shall include the adjusted gross income and total wealth pupil units of all school districts eligible for aid pursuant to this section except central high school districts. For the purposes of calculating such statewide average the data for the city school district of the city of New York shall be citywide data. The adjusted gross income of a central high school district shall equal the sum of the adjusted gross income of each of its component school districts. l. "Combined wealth ratio" shall mean the number computed to three decimals without rounding obtained when fifty per centum of the pupil wealth ratio is added to fifty per centum of the alternate pupil wealth ratio. m. "Attendance ratio" shall mean the number computed to four decimals without rounding when the aggregate days attendance is divided by the possible aggregate attendance of all pupils in attendance in the district, as computed for each school district by the commissioner by June first of the year following the attendance year. n. (1) "Enrollment" shall mean the unduplicated count of all children registered to receive educational services in grades kindergarten through twelve, including children in ungraded programs, as registered on the date prior to November first that is specified by the commissioner as the enrollment reporting date for the school district or nonpublic school, as reported to the commissioner. (2) "Public school district enrollment" shall mean the sum of: (1) the number of children on a regular enrollment register of a public school district on such date; (2) the number of children eligible to receive home instruction in the school district on such date; (3) the number of children for whom equivalent attendance must be computed pursuant to this subdivision on such date; (4) the number of children with handicapping conditions who are residents of such district who are registered on such date to attend programs under the provisions of paragraph c of subdivision two of section forty-four hundred one of this chapter; (5) the number of children eligible to receive educational services on such date but not claimed for aid pursuant to subdivision seven of section thirty-two hundred two of this chapter; and (6) the number of children registered on such date to attend programs (i) pursuant to subdivision two of section three hundred fifty-five of this chapter or (ii) pursuant to an agreement between the city school district of the city of New York and Hunter College pursuant to section sixty-two hundred sixteen of this chapter. (3) "Nonpublic school enrollment" shall mean the number of children on a regular enrollment register of a nonpublic school meeting the compulsory attendance law, excluding any child counted as part of the enrollment of a public school district. (4) "Resident public school district enrollment" shall be the public school district enrollment less the public school district enrollment of nonresident pupils attending public schools in the district, plus the public school district enrollment of pupils resident in the district but attending public schools in another district or state plus the public school district enrollment of pupils resident in the district but attending full-time a school operated by a board of cooperative educational services or a county vocational education and extension board. Indian pupils who are residents of any portion of a reservation located wholly or partly within the borders of the state pursuant to subdivision four of section forty-one hundred one of this chapter and are attending public school, or pupils living on the United States military reservation at West Point attending public school, shall be deemed to be resident pupils of the district providing such school, for purposes of this paragraph. Where a school district has entered into a contract with the state university pursuant to subdivision two of section three hundred fifty-five of this chapter under which the school district makes payments in the nature of tuition for the education of certain children residing in the district, such children for whom such tuition payments are made shall be deemed to be resident pupils of such district for the purposes of this paragraph. No student shall be counted more than once, except that, in determining the resident public school district enrollment of a component school district of a central high school district the resident public school district enrollment of high school pupils residing in such component district and attending the central high school shall be included, and in determining the resident public school district enrollment of a central high school district the resident public school district enrollment of elementary school pupils residing in such central high school district and attending a component district of the central high school district shall be included. (5) "Resident nonpublic school district enrollment" shall be the nonpublic school district enrollment less the nonpublic school district enrollment of nonresident pupils attending nonpublic schools in the district, plus the nonpublic school district enrollment of pupils resident in the district but attending nonpublic schools in another district of the state. (6) "Additional public school enrollment" shall mean resident students with disabilities placed by public school districts in approved private schools, the New York state school for the blind at Batavia, or the New York state school for the deaf at Rome and resident students placed in schools subject to the provisions of chapter five hundred sixty-three of the laws of nineteen hundred eighty as amended. (7) In determining enrollment pursuant to subparagraphs two, three, four, five and six of this paragraph for central high school districts and all school districts located within the boundaries of a central high school district, for the purposes of apportionments payable pursuant to subdivision six of section seven hundred one, subdivision four of section seven hundred eleven and subdivision four of section seven hundred fifty-one of this chapter, and subdivision thirteen of this section, and for the purposes of computing the lunch count pursuant to paragraph q of this subdivision, the district sharing ratio pursuant to subparagraph eight of paragraph a of subdivision ten of section thirty-six hundred forty-one of this article, and the school district basic contribution pursuant to subdivision eight of section forty-four hundred one of this chapter, only those children in the grade levels maintained by a central high school district shall be included in the enrollment used to apportion aid to such central high school district and only those children of the grade levels maintained by a component school district of a central high school district shall be included in the public school district enrollment of such component school district. o. "Limited English proficient count" shall mean the number of pupils served in the base year in programs for pupils with limited English proficiency approved by the commissioner pursuant to the provisions of this chapter and in accordance with regulations adopted for such purpose. p. "Percent of eligible applicants for the free and reduced price lunch program" shall mean the quotient of (i) the number of pupils in kindergarten through grade six attending the public schools of the district who have applications on file or who are listed on a direct certification letter confirming their eligibility for participation in the state and federally funded free and reduced price school lunch program on the date enrollment was counted in accordance with this subdivision for the year prior to the base year, except that such count shall be simply as of October of the year prior to the base year for aid payable in the nineteen hundred ninety-three--ninety-four and nineteen hundred ninety-four--ninety-five school years, divided by (ii) the number of pupils in kindergarten through grade six on a regular enrollment register of a public school district on the date enrollment was counted in accordance with this subdivision for the year prior to the base year, computed to four decimals without rounding, and multiplied by one hundred to be expressed as a percent to two decimals. For central high school districts, such percent shall be computed using the sum of the eligible applicants and enrollment of the component districts of the central high school district; for any other school district not operating a school lunch program in the applicable year for its kindergarten through grade six pupils, the commissioner shall use the district's percent of pupils with compensatory educational needs as the percent of eligible applicants for the free and reduced price lunch program. q. "Lunch count" shall mean the product of the public school enrollment of the school district on the date enrollment was counted in accordance with this subdivision for the base year multiplied by the percent of eligible applicants for the free and reduced price lunch program as defined in this subdivision. r. "Sparsity count", for districts operating a kindergarten through grade twelve school program, shall mean the product of (i) the base year public school enrollment of the district and (ii) the quotient, computed to three decimals without rounding, of the positive remainder of twenty-five minus the enrollment per square mile divided by fifty and nine tenths, but not less than zero. Enrollment per square mile shall be the quotient, computed to two decimals without rounding, of the public school enrollment of the school district on the date enrollment was counted in accordance with this subdivision for the base year divided by the square miles of the district, as determined by the commissioner. s. "Extraordinary needs count" shall mean the sum of the limited English proficiency count, the lunch count and the sparsity count. t. "Percentage of pupils with compensatory educational needs" shall be based on the following tests: the third and sixth grade reading and math tests administered in spring of the second year prior to the base year. Such percentage shall be calculated as follows: (i) determine the number of pupils tested who scored below the statewide reference point as determined by the commissioner on each test administered pursuant to this subparagraph, plus pupils, other than pupils with handicapping conditions and pupils with limited English proficiency as defined by the commissioner who are exempt from taking such tests, provided, however, that a district employing eight or more teachers in such years but not operating each grade may use the percentage computed pursuant to this paragraph for the district which in such years enrolled the greatest number of pupils in such grade from such district; (ii) divide the sum of such numbers by the number of such pupils who took each of such tests, plus pupils, other than pupils with handicapping conditions and pupils with limited English proficiency as defined by the commissioner who are exempt from taking such tests, provided, however, that a district which in any of the applicable school years did not maintain a home school or employed fewer than eight teachers, and which in the base year employed eight or more teachers, may use the scores in a later test as designated by the commissioner for the purposes of this paragraph; (iii) express the result as a percentage carried to one decimal place without rounding; and (iv) for the purposes of the computation made pursuant to this subparagraph, pupils attending campus schools of the state university shall be included in the numbers of pupils in the district in which they reside. The percentage of such pupils in component districts shall be used in the case of central high school districts. The commissioner shall make adjustments for differences in tests and test administration in accordance with regulations adopted for such purposes. u. "Pupils with compensatory educational needs" shall be computed by multiplying the percentage of pupils with compensatory educational needs by the district's base year public school enrollment. v. "Concentration factor" shall be computed by adding to one the quotient of (i) the positive remainder resulting when seven hundred forty-five thousandths is subtracted from the quotient of the extraordinary needs count divided by the district's base year public school enrollment divided by (ii) three hundred twenty thousandths; provided, however, that such factor shall not be less than one. w. "Extraordinary needs factor" shall mean the sum of (i) eleven percent; (ii) for any city school district in a city with a population of more than two hundred fifty thousand inhabitants and less than one million inhabitants according to the latest federal census, two hundred fifty-four ten-thousandths (0.0254); (iii) for any city school district in a city with a population of more than two hundred ten thousand inhabitants and less than two hundred fifty thousand inhabitants according to the latest federal census, twenty-seven thousandths (0.027); (iv) for any city school district in a city with a population of more than one hundred sixty thousand inhabitants and less than two hundred ten thousand inhabitants according to the latest federal census, twenty-two thousandths (0.022); (v) for any city school district in a city with a population of more than one hundred thousand inhabitants and less than one hundred sixty thousand inhabitants according to the latest federal census, forty-one thousandths (0.041); (vi) for districts for which the base year public school district enrollment per square mile year is greater than fifteen hundred, five thousand three hundred fourteen hundred-thousandths (0.05314); and (vii) for districts for which the quotient of the extraordinary needs county divided by the district's base year public school district enrollment is greater than seven hundred ninety-nine thousandths (0.799), three hundred sixty-two ten-thousandths (0.0362). x. "Enrollment index" shall be computed by dividing the public school enrollment for the current year by public school enrollment for the base year, both as defined in paragraph n of this subdivision, with the result carried to three places without rounding. y. * (i) "Public excess cost aid base," for the purposes of this section, shall mean: (a) for aid payable in the two thousand--two thousand one school year, the aid selected pursuant to paragraph six of subdivision nineteen of this section in the base year; (b) for aid payable in the two thousand one--two thousand two school year, the product of the aid selected pursuant to subparagraph a of paragraph six of subdivision nineteen of this section in the base year and nine hundred ninety-one thousandths; (c) for aid payable in the two thousand two--two thousand three school year, the product of the amount set forth for each school district as "Excess Cost - Public" under the heading "2000-01 Base Year Aids" in the school aid computer listing produced by the commissioner in support of the executive budget request for the two thousand one--two thousand two school year and entitled "BT032-1", and ninety-five hundredths; ** (d) for aid payable in the two thousand three--two thousand four and two thousand four--two thousand five school years, the product of the aid selected pursuant to clause one of subparagraph b of paragraph six of subdivision nineteen of this section in the base year and ninety-five hundredths. ** NB Effective until July 1, 2006 ** (d) for aid payable in the two thousand three--two thousand four, two thousand four--two thousand five and two thousand six--two thousand seven school years, the product of the aid selected pursuant to clause one of subparagraph b of paragraph six of subdivision nineteen of this section in the base year and ninety-five hundredths. ** NB Effective July 1, 2006 * NB Effective until June 30, 2007 * (i) "Public excess cost aid base," for the purposes of this section, shall mean the aid selected pursuant to paragraph six of subdivision nineteen of this section in the base year. For aid payable in the school year nineteen hundred ninety-six--ninety-seven, such public excess cost aid base shall be reduced by the excess cost aid for pupils with handicapping conditions received in the base year attributable to clause four of subparagraph b of paragraph one of subdivision nineteen of this section. Such aid attributable shall be calculated by multiplying aid calculated in the base year pursuant to paragraph four of subdivision nineteen of this section by the quotient of (i) the product of thirteen hundredths and the resident pupils with handicapping conditions for the year prior to the base year who were eligible for aid in the base year pursuant to clause four of subparagraph b of paragraph one of subdivision nineteen of this section divided by (ii) resident weighted pupils with handicapping conditions for the year prior to the base year. * NB Effective June 30, 2007 (ii) The public excess cost aid base for aid payable in the nineteen hundred ninety-three--ninety-four school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-six; the public excess cost aid base for aid payable in the nineteen hundred ninety-four--ninety-five school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-eight; the public excess cost aid base for aid payable in the nineteen hundred ninety-five--ninety-six school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-nine; the public excess cost aid base for aid payable in the nineteen hundred ninety-six--ninety-seven and nineteen hundred ninety-seven--ninety-eight school years, and for aid calculations for subsequent school years based on aid payable in such school years, shall be deemed final and not subject to change on or after July first, two thousand; and the public excess cost aid base for aid payable in the nineteen hundred ninety-eight--ninety-nine school year and thereafter, and for aid calculations for subsequent school years based on aid payable in such school years, shall be deemed final and not subject to change on or after July first of the school year following the last school year in which the commissioner may last accept and certify for payment any additional claim for such school year pursuant to paragraph a of subdivision five of section thirty-six hundred four of this article. z. (i) "Extraordinary needs aid base," for the purposes of this section, shall mean the aid selected pursuant to paragraph e of subdivision twelve of this section in the base year except that for aid payable in the two thousand two--two thousand three school year, "extraordinary needs aid base" shall mean the aid selected pursuant to paragraph e of subdivision twelve of this section in the year prior to the base year. (ii) The extraordinary needs aid base for aid payable in the nineteen hundred ninety-six--ninety-seven and nineteen hundred ninety-seven--ninety-eight school years, and for aid calculations for subsequent school years based on aid payable in such school years, shall be deemed final and not subject to change on or after July first, two thousand; and the extraordinary needs aid base for aid payable in the nineteen hundred ninety-eight--ninety-nine school year and thereafter, and for aid calculations for subsequent school years based on aid payable in such school years, shall be deemed final and not subject to change on or after July first of the school year following the last school year in which the commissioner may last accept and certify for payment any additional claim for such school year pursuant to paragraph a of subdivision five of section thirty-six hundred four of this article. aa. "School tax relief aid" shall mean state aid payable to a school district representing tax savings duly provided by the school district pursuant to section thirteen hundred six-a of the real property tax law that is claimed by the school district and certified by the state board of real property services pursuant to subdivision three of section thirteen hundred six-a of the real property tax law. 2. Computation of resident weighted average daily attendance. For purposes of this section weighted average daily attendance of a school district for any school year shall be computed as follows: a. Weighted average daily attendance shall be determined by using the average daily attendance of public school pupils in a full-day kindergarten and grades one through six as the basic unit, with the attendance of such pupils in one-half day kindergartens measured at one-half of such basic unit and the attendance of such pupils in grades seven through twelve measured at one and one-quarter of such basic unit. The sum of all such units of attendance shall be the weighted average daily attendance. b. In computing such attendance, the school district shall (1) determine the number of religious holidays which fall on a school day within a school year according to regulations established by the commissioner, such religious holidays to be duly recognized as such for purposes of this section by duly adopted resolution of the board of education; (2) deduct the aggregate attendance on such religious holidays from the total aggregate attendance, by grade level; (3) deduct such religious holidays from the total number of days of session, by grade level; (4) compute the weighted average daily attendance for the school year. c. In any instance where a pupil is a resident of another state or an Indian pupil is a resident of any portion of a reservation located wholly or partly within the borders of the state pursuant to subdivision four of section forty-one hundred one of this chapter or a pupil is living on federally owned land or property, such pupil's attendance shall be counted as part of the weighted average daily attendance of the school district in which such pupil is enrolled. d. Resident weighted average daily attendance for purposes of determining the aid ratio of a school district for any school year shall be the weighted average daily attendance for the school year immediately preceding the base year, less the weighted average daily attendance of nonresident pupils attending public schools in the district for such school year, plus the weighted average daily attendance of pupils resident in the district but attending public schools in another district or state plus the weighted average daily attendance of pupils resident in the district but attending full-time a school operated by a board of cooperative educational services or a county vocational education and extension board for such school year. The attendance of nonresident pupils attending public school in the district and resident pupils attending such schools outside of the district shall be determined by applying to the number of such pupils registered during the school year in each case the ratio of aggregate days attendance to the possible aggregate days attendance of all pupils in attendance in the district. Indian pupils of a reservation attending public school, or pupils living on the United States military reservation at West Point attending public school, shall be deemed to be resident pupils of the district providing such school, for purposes of this paragraph. Where a school district has entered into a contract with the state university pursuant to subdivision two of section three hundred fifty-five of this chapter under which the school district makes payments in the nature of tuition for the education of certain children residing in the district, such children for whom such tuition payments are made shall be deemed to be resident pupils of such district for the purposes of this paragraph. e. In determining the resident weighted average daily attendance of a component school district of a central high school district for computing the aid ratio the weighted average daily attendance of high school pupils residing in such component district and attending the central high school shall be included. The resident weighted average daily attendance of a central high school district itself shall be the sum of the resident weighted average daily attendance of each component school district computed as provided in the first sentence of this paragraph. f. Notwithstanding the provisions of paragraphs d and e of this subdivision, when a school district shall experience an increase in resident weighted average daily attendance during the current year because of the closing in whole, or in part, of a non-public school or a campus school, or a school previously operated by the United States government on the United States military reservation at West Point, the commissioner, in computing any aid ratio of such district, shall permit the use of such additional resident weighted average daily attendance for aid ratio purposes during the current year and the next succeeding year, provided that such additional resident weighted average daily attendance attributable to such closing, or part thereof, shall be in excess of one hundred students; provided, however, that such district which qualifies for an increase in total wealth pupil units pursuant to paragraph c of subdivision two-b of this section, shall use the increase in resident weighted average daily attendance, even if such increase in resident weighted average daily attendance is less than one hundred. g. After the final computation of aid as provided in subdivision twelve of this section, a school district which maintains an elementary school and which does not operate a kindergarten through twelve program and contracts for education of some or all of its secondary pupils in another school district which has a higher pupil wealth ratio used for the current year for the computation of operating aid may elect to receive the net tuition adjustment provided under the terms of this subdivision. The total aid receivable under paragraph b or c of subdivision twelve of this section by the sending district for the current year shall be divided by the total aidable pupil units of the sending district used for computation of aid for the current year and such amount multiplied by the number of secondary pupils for whom the contract is made. The resulting tuition adjustment will be paid to the sending district in addition to the aid computed under the provisions of subdivision twelve of this section less an amount to be deducted and computed as follows: the total aid receivable under subdivision twelve of this section by the receiving district for the current year shall be divided by its total aidable pupil units used for computation of aid for the current year and such amount multiplied by the number of secondary pupils received by such district from the sending district during the current year. If the sending district elects to receive this adjustment, the tuition payable to the district furnishing instruction shall be computed in accordance with regulations adopted by the commissioner. 2-a. Computation of adjusted average daily attendance. For purposes of this section adjusted average daily attendance of a school district for any school year shall be computed as follows: a. Adjusted average daily attendance shall be determined by using the average daily attendance of public school pupils in a full-day kindergarten and grades one through twelve as the basic unit, with the attendance of such pupils in one-half day kindergartens measured at one-half of such basic unit. The sum of all such units of attendance shall be the adjusted average daily attendance. b. In computing such attendance, the school district shall (1) determine the number of religious holidays which fall on a school day within a school year according to regulations established by the commissioner, such religious holidays to be duly recognized as such for purposes of this section by duly adopted resolution of the board of education; (2) deduct the aggregate attendance on such religious holidays from the total aggregate attendance, by grade level; (3) deduct such religious holidays from the total number of days of session, by grade level; (4) compute the adjusted average daily attendance for the school year. c. In any instance where a pupil is a resident of another state or an Indian pupil is a resident of any portion of a reservation located wholly or partly within the borders of the state pursuant to subdivision four of section forty-one hundred one of this chapter or a pupil is living on federally owned land or property, such pupil's attendance shall be counted as part of the adjusted average daily attendance of the school district in which such pupil is enrolled. 2-b. Computation of total wealth pupil units. a. For the school years commencing July first, nineteen hundred seventy-nine and thereafter total wealth pupil units will be computed using the adjusted average daily attendance for the year prior to the base year as computed in this section, plus the attendance of resident pupils attending public school elsewhere, less the attendance of nonresident pupils plus the attendance of resident pupils attending full-time in board of cooperative educational services (not otherwise specifically included), plus the additional aidable pupil units as computed pursuant to subdivisions nine and nine-a of this section, excluding summer school pupils. The attendance of nonresident pupils attending public school in the district and resident pupils attending such schools outside of the district shall be determined by applying to the number of such pupils registered during the school year in each case the ratio of aggregate days attendance to the possible aggregate days attendance of all pupils in attendance in the district. Native American pupils of a reservation attending public school, or pupils living on the United States military reservation at West Point attending public school, shall be deemed to be resident pupils of the district providing such school, for purposes of this paragraph. Where a school district has entered into a contract with state university pursuant to subdivision two of section three hundred fifty-five of this chapter under which the school district makes payment in the nature of tuition for the education of certain children residing in the district, such children for whom such tuition payments are made shall be deemed to be resident pupils of such district for the purposes of this paragraph. b. In determining the total wealth pupil units of a component school district of a central high school district for computing aid ratio the total wealth pupil units of high school pupils residing in such component district and attending the central high school shall be included. The total wealth pupil units of a central high school district itself shall be the sum of the total wealth pupil units of each component school district. c. Notwithstanding the foregoing provisions of this subdivision, when a school district shall experience an increase in total wealth pupil units during the current year because of the closing in whole, or in part, of a nonpublic school or a campus school, or a school previously operated by the United States government on the United States military reservation at West Point, the commissioner, in computing any aid ratio of such district, shall permit the use of such additional total wealth pupil units during the current year and the next succeeding year, provided that such additional total wealth pupil units attributable to such closing, or part thereof, shall be in excess of one hundred students; provided, however, that such district which qualifies for an increase in resident weighted average daily attendance pursuant to paragraph g of subdivision two of this section, shall use the increase in total wealth pupil units, even if such increase in total wealth pupil units is less than one hundred. 3. Computation of aid ratios. a. Building and board of cooperative educational services aid ratios. The aid ratio to be used in determining building aid apportionments to any school district pursuant to this section and for boards of cooperative educational services shall be computed in the following manner: (1) The actual valuation of such district shall be divided by its resident weighted average daily attendance as computed pursuant to this section to determine its actual valuation per resident pupil. (2) The commissioner shall determine the state average actual valuation per pupil in resident weighted average daily attendance for the preceding school year using the latest single year actual valuation computed under paragraph c of subdivision one of this section. The commissioner shall transmit such state average to the school districts. Such statewide average shall be rounded to the nearest hundred and shall include the actual valuation and resident weighted average daily attendance of all school districts eligible for aid pursuant to this section except central high school districts. For the purposes of calculating such statewide average the data for the city school district of the city of New York shall be citywide data. (3) The resident weighted average daily attendance wealth ratio shall mean the actual valuation per resident pupil of the school district divided by such state average actual valuation per pupil, carried to three decimal places without rounding. (i) The building aid ratio shall be computed by subtracting from one the product obtained by multiplying the resident weighted average daily attendance wealth ratio by fifty-one percent. Such aid ratio shall be expressed as a decimal carried to three places without rounding, but shall not be less than zero. (ii) The additional building aid ratio for low income wealth school districts shall be the product obtained by multiplying the state sharing ratio for comprehensive operating aid by one and two hundred sixty-three thousandths. (iii) The board of cooperative educational services aid ratio shall be computed by subtracting from one the product obtained by multiplying the resident weighted average daily attendance wealth ratio by fifty-one percent. Such aid ratio shall be expressed as a decimal carried to three places without rounding but shall not be less than zero. b. Computation of the state sharing ratio for comprehensive operating aid. The state sharing ratio shall be the higher of: (1) a value computed by subtracting from one and thirty-seven hundredths the product obtained by multiplying the combined wealth ratio by one and twenty-three hundredths; or (2) a value computed by subtracting from one the product obtained by multiplying the combined wealth ratio by sixty-four hundredths; or (3) a value computed by subtracting from eighty hundredths the product obtained by multiplying the combined wealth ratio by thirty-nine hundredths; or (4) a value computed by subtracting from fifty-one hundredths the product obtained by multiplying the combined wealth ratio by twenty-two hundredths. Such result shall be expressed as a decimal carried to three places without rounding, but shall not be greater than ninety hundredths nor less than zero. c. Computation of the extraordinary needs aid ratio. The extraordinary needs aid ratio shall be computed by subtracting from one the product computed to three decimals without rounding obtained by multiplying the alternate pupil wealth ratio by forty hundredths. Such result shall be expressed as a decimal carried to three places without rounding, but shall not be less than zero. 4. Notwithstanding any other provision of this article to the contrary, when a school district operates for a half day session because of a parent-teacher conference or workshops for teachers, it shall be apportioned with the same amount of state aid for pupils attending kindergarten as if both morning and afternoon kindergarten groups were in attendance although only one kindergarten class attends school. The school district shall provide that morning and afternoon kindergarten groups shall alternate in attendance if more than one half day session is scheduled during the school year. 5. Impacted aid. In addition to the foregoing apportionments there shall be apportioned to any school district which experiences an increase in student enrollment during the school year commencing July first, nineteen hundred seventy-two or any year thereafter because of the closing in whole or in part of a nonpublic school, or campus school, an amount computed as herein provided. a. Definitions. As used herein: 1. "Enrolled student" shall mean any student currently enrolled in a public school of any school district or borough who attended a nonpublic school, or campus school, during either the base year or current year and whose enrollment in such public school was caused by the closing in whole or in part of a nonpublic school. 2. "Borough" shall mean any borough of the city school district of the city of New York. 3. "Aid ratio" shall mean the result obtained by subtracting from one the product obtained by multiplying fifty-one per centum by the pupil wealth ratio. Such aid ratio shall be expressed as a decimal carried to three places without rounding and shall not be less than thirty-six per centum. b. Computation. The amount to be apportioned shall be the product of: 1. the number of enrolled students in any school district or borough multiplied by one hundred dollars; and 2. the aid ratio of such school district or borough. c. The city school district of the city of New York shall be entitled to compute such apportionment using the enrolled students and aid ratio for each such borough. d. Any apportionment as herein computed shall be subject to regulations promulgated by the commissioner and shall not be deducted in determining approved operating expenses of the district pursuant to subdivision eleven of this section. e. The apportionment as herein computed shall be paid in accordance with the provisions of section thirty-six hundred nine-a of such law during the current school year and the school year next succeeding such year. 6. Apportionment for capital outlays and debt service for school building purposes. Any apportionment to a school district pursuant to this subdivision shall be based upon base year approved expenditures for capital outlays incurred prior to July first, two thousand one from its general fund, capital fund or reserved funds and current year approved expenditures for debt service, including debt service for refunding bond issues eligible for an apportionment pursuant to paragraph g of this subdivision and lease or other annual payments to the New York city educational construction fund created by article ten of this chapter or the city of Yonkers educational construction fund created by article ten-B of this chapter which have been pledged to secure the payment of bonds, notes or other obligations issued by the fund to finance the construction, acquisition, reconstruction, rehabilitation or improvement of the school portion of combined occupancy structures, or for lease or other annual payments to the New York state urban development corporation created by chapter one hundred seventy-four of the laws of nineteen hundred sixty-eight, pursuant to agreement between such school district and such corporation relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building, or for annual payments to the dormitory authority pursuant to any lease, sublease or other agreement relating to the financing, refinancing, acquisition, design, construction, reconstruction, rehabilitation, improvement, furnishing and equipping of, or otherwise provide for school district capital facilities or school district capital equipment made under the provisions of section sixteen hundred eighty of the public authorities law, or for annual payments pursuant to any lease, sublease or other agreement relating to the financing, refinancing, acquisition, design, construction, reconstruction, rehabilitation, improvement, furnishing and equipping of, or otherwise providing for educational facilities of a city school district under the provisions of section sixteen of chapter six hundred five of the laws of two thousand, or for payments, pursuant to any assignment authorized by section twenty-seven hundred ninety-nine-tt of the public authorities law, of debt service in furtherance of funding the five-year educational facilities capital plan of the city of New York school district or related debt service costs and expenses as set forth in such section, for annual payments pursuant to any lease, sublease or other agreement relating to the financing, refinancing, design, reconstruction, rehabilitation, improvement, furnishing and equipping of, or otherwise providing for projects authorized pursuant to the city of Syracuse and the board of education of the city school district of the city of Syracuse cooperative school reconstruction act, or for lease, lease-purchase or other annual payments to another school district or person, partnership or corporation pursuant to an agreement made under the provisions of section four hundred three-b, subdivision eight of section twenty-five hundred three, or subdivision six of section twenty-five hundred fifty-four of this chapter, provided that the apportionment for such lease or other annual payments under the provisions of section four hundred three-b, subdivision eight of section twenty-five hundred three, or subdivision six of section twenty-five hundred fifty-four of this chapter, other than payments under a lease-purchase agreement or an equivalent agreement, shall be based upon approved expenditures in the current year. Approved expenditures for capital outlays from a school district's general fund, capital fund or reserved funds that are incurred on or after July first, two thousand two, and are not aidable pursuant to subdivision six-f of this section, shall be aidable as debt service under an assumed amortization established pursuant to paragraphs e and j of this subdivision. In any such case approved expenditures shall be only for new construction, reconstruction, purchase of existing structures, for site purchase and improvement, for new garages, for original equipment, furnishings, machinery, or apparatus, and for professional fees and other costs incidental to such construction or reconstruction, or purchase of existing structures. In the case of a lease or lease-purchase agreement entered pursuant to section four hundred three-b, subdivision eight of section twenty-five hundred three or subdivision six of section twenty-five hundred fifty-four of this chapter, approved expenditures for the lease or other annual payments shall not include the costs of heat, electricity, water or other utilities or the costs of operation or maintenance of the leased facility. An apportionment shall be available pursuant to this subdivision for construction, reconstruction, rehabilitation or improvement in a building, or portion thereof, being leased by a school district only if the lease is for a term of at least ten years subsequent to the date of the general construction contract for such construction, reconstruction, rehabilitation or improvement. Each school district shall prepare a five year capital facilities plan, pursuant to regulations developed by the commissioner for such purpose, provided that in the case of a city school district in a city having a population of one million inhabitants or more, such facilities plan shall comply with the provisions of section twenty-five hundred ninety-p of this chapter and this subdivision. Such plan shall include, but not be limited to, a building inventory, and estimated expense of facility needs, for new construction, additions, alterations, reconstruction, major repairs, energy consumption and maintenance by school building, as appropriate. Such five year plan shall include a priority ranking of projects and shall be amended if necessary to reflect subsequent on-site evaluations of facilities conducted by state supported contractors. a. For capital outlays for such purposes first incurred on or after July first, nineteen hundred sixty-one and debt service for such purposes first incurred on or after July first, nineteen hundred sixty-two, the actual approved expenditures less the amount of civil defense aid received pursuant to the provisions of section thirty-five of chapter seven hundred eighty-four of the laws of nineteen hundred fifty-one as amended shall be allowed for purposes of apportionment under this subdivision but not in excess of the following schedule of cost allowances: (1) For new construction and the purchase of existing structures, the cost allowances shall be based upon the rated capacity of the building or addition and a basic per pupil allowance of up to six thousand three hundred seventy-five dollars adjusted monthly by a statewide index reflecting changes in the cost of labor and materials since July first, nineteen hundred ninety-two, established by the commissioner of labor, modified by an annual county or multi-county labor market composite wage rate, established by the commissioner of labor in consultation with the commissioner, for July first of the base year, commencing July first, nineteen hundred ninety-seven for general construction contracts awarded on or after July first, nineteen hundred ninety-eight, indexed to the median of such county or multi-county rates, but not less than one. Such base allowance shall apply to a building or an addition housing grades prekindergarten through six and shall be adjusted for a building or an addition housing grades seven through nine by a factor of one and four-tenths, for a building or an addition housing grades seven through twelve by a factor of one and five-tenths, for a building or addition housing special education programs by a factor of two, except that where such building or addition is connected to, or such space is located within, a public school facility housing programs for nondisabled pupils, as approved by the commissioner, a factor of three shall be used. Rated capacity of a building or an addition shall be determined by the commissioner based on space standards and other requirements for building construction specified by the commissioner. Such assigned capacity ratings shall include, in addition to those spaces used for the instruction of pupils, those spaces which are used for elementary and secondary school libraries, cafeterias, prekindergarten instructional rooms, teachers' conference rooms, gymnasiums and auditoriums. For new construction projects approved on or after July first, two thousand, by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, such rated capacity for new buildings and additions constructed to replace existing buildings that, in the judgment of the commissioner, have not been adequately maintained and have not reached their projected useful life shall be reduced by the commissioner by an amount proportional to the remaining unused portion of the useful life of the existing buildings, provided however that the commissioner may waive such requirement upon a finding that replacement of the existing building is necessary to protect the health and safety of students or staff, that reconstruction and modernization of the existing building would not adequately address such health and safety problems, and that the need to replace the building was not caused by failure to adequately maintain the building. If the commissioner of labor resets the statewide index reflecting changes in the costs of labor and materials since July first, nineteen hundred ninety-two, the commissioner shall adopt regulations to supersede the basic per pupil allowance of up to six thousand three hundred seventy-five dollars to the imputed allowance in effect at that time. (2) Where a school district has expenditures for site purchase, grading or improvement of the site, original furnishings, equipment, machinery or apparatus, or professional fees, or other incidental costs, the cost allowances for new construction and the purchase of existing structures may be increased by the actual expenditures for such purposes but by not more than the product of the applicable cost allowance established pursuant to subparagraph one of this paragraph and twenty per centum for school buildings or additions housing grades prekindergarten through six and by not more than the product of such cost allowance and twenty-five per centum for school buildings or additions housing grades seven through twelve and by not more than the product of such cost allowance and twenty-five per centum for school buildings or additions housing special education programs as approved by the commissioner. (3) Cost allowances for reconstructing or modernizing structures shall not exceed one hundred per centum of the cost allowances for the equivalent new construction over the projected useful life of the building, to be determined in accordance with the regulations of the commissioner. Reconstruction projects shall reasonably meet the criteria established for new construction, including but not limited to energy, fire, personal safety and space per pupil standards. (4) The commissioner shall promulgate regulations prescribing the methodology for establishing a multi-year cost allowance for the purpose of computation of building aid to school districts and a procedure for school districts to appeal the determination that a building has not been adequately maintained, as required by subparagraphs one and three of this paragraph. Such methodology shall include the development of a building replacement cost allowance schedule for the replacement of major building systems of a building over its projected useful life and the construction of new buildings and additions for projects that have been approved on or after July first, two thousand by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more. For purposes of this subdivision, "major building systems" shall mean the electrical, plumbing, heating, ventilation and air conditioning systems, and the roof and other major structural elements of a school building. (5) For costs relating to the construction, acquisition, reconstruction or leases of any school building project conducted by or on behalf of a city school district in a city having a population of one million inhabitants or more, where a general construction contract has been awarded or a purchase or lease agreement was executed on or after July first, two thousand four, the cost allowance for such project shall include: (a) construction and incidental costs where such costs are associated with multistory construction necessitated by substandard site sizes, site security costs, difficulties with delivery of construction supplies, increased fire resistence and fire suppression costs, and (b) site acquisition, environmental remediation and building demolition costs, provided, however, that costs which are eligible for an apportionment pursuant to this subparagraph on or before July first, two thousand six shall be deemed to be debt service for the two thousand five--two thousand six school year on new bonds and capital notes aidable in July following the current year pursuant to clause (b) of subparagraph one of paragraph f of this subdivision. On or before January first, two thousand nine, the commissioner shall report to the director of the budget, the chair of the senate finance committee and the chair of the assembly ways and means committee on the projects which received funding pursuant to the provisions of this subparagraph, and the overall implementation of this subparagraph. b. (1) The apportionment for school building purposes to any district shall be determined by adding the amount of its current year approved expenditures for lease or other annual payments under the provisions of section four hundred three-b, subdivision eight of section twenty-five hundred three, or subdivision six of section twenty-five hundred fifty-four of this chapter, other than payments under a lease-purchase agreement or an equivalent agreement, plus the amount of its current year approved expenditures under an assumed amortization for capital outlays for school building purposes from its general fund, capital fund or from a reserve fund to the amount of its current year approved expenditures for debt service for such purposes and multiplying the sum by its aid ratio. Expenditures made for computer equipment, including original purchase and installation of hardware, conduit, wiring, and powering of hardware installations in computer classrooms, or for building or campuswide local area network systems and in-building elements of other wide area networks, including the original purchase and installation of conduit, wiring, and powering of hardware installations, may be included in approved expenditures for building aid pursuant to this paragraph on the approval of the commissioner regardless of any minimum cost requirement that may be applied to other approved expenditures pursuant to this section. Such equipment expenses claimed for aid under this subdivision shall not be claimed for aid under any other provisions of this chapter. (2) Additional apportionment for certain school building projects. (i) Eligibility. All school building projects (a) approved by the voters of the school district or (b) approved by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more or (c) in the case of a construction emergency project, approved by the board of education of any school district or by the chancellor in a city school district in a city having a population of one million or more, for projects approved on or after July first, nineteen hundred ninety-eight, shall be eligible for an additional apportionment pursuant to this subparagraph to the extent that expenditures for such projects are otherwise aidable pursuant to this subdivision, provided that where such projects are leases, such projects would only be aidable pursuant to this subdivision following the approval of the voters of the school district if entered into pursuant to section four hundred three-b of the education law, and provided that for all such projects so approved on or after July first, two thousand, expenditures directly related to swimming pools shall not be eligible for such additional apportionment, and further provided that for the purposes of this subdivision a construction emergency project shall mean a school construction project approved on or after July first, two thousand, to remediate emergency situations which arise in public school buildings and threaten the health and/or safety of building occupants, as a result of the unanticipated discovery of asbestos or other hazardous substances during construction work on a school or significant damage caused by a fire, snow storm, ice storm, excessive rain, high wind, flood or similar catastrophic event which results in the necessity for immediate repair. (ii) Apportionment. The apportionment pursuant to this subparagraph shall equal the product of such eligible approved expenses determined in accordance with the provisions of clause (i) of this subparagraph and this section and the incentive decimal computed for use in the year in which the project was approved. The incentive decimal shall equal the positive remainder resulting when the district's building aid ratio selected pursuant to paragraph c of this subdivision is subtracted from the enhanced building aid ratio. The enhanced building aid ratio shall equal the sum of the building aid ratio selected for use in the current year pursuant to paragraph c of this subdivision and one-tenth, computed to three decimals without rounding, but not more than (a) ninety-eight hundredths for a high need school district, as defined pursuant to regulations of the commissioner, for all school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, on or after July first, two thousand five, or (b) ninety-five hundredths for any other school building project or school district, nor less than one-tenth. c. (1) For aid payable in the school year nineteen hundred ninety-three--ninety-four and earlier, any school district may compute aid under the provisions of this subdivision, or under subdivision six of section thirty-six hundred one-a of this article, using the building aid ratio computed for use in the current year or the aid ratio computed for use in any year commencing with the nineteen hundred eighty-one--eighty-two school year as computed by the commissioner based on data on file with the education department as of July first, nineteen hundred ninety-six, and; provided that, school districts who are eligible for aid under paragraph f of subdivision fourteen of this section may compute aid under the provisions of this subdivision using the aid ratio so computed for the reorganized district or the highest of the aid ratios so computed for any of the individual school districts which existed prior to the date of the reorganized school district. (2) (a) For aid payable in the school years nineteen hundred ninety-four--ninety-five and thereafter for all school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, before July first, two thousand, any school district may compute aid under the provisions of this subdivision using the building aid ratio computed for use in the current year or the aid ratio computed for use in any year commencing with the nineteen hundred eighty-one--eighty-two school year as such earlier aid ratios are computed by the commissioner based on data on file with the education department on or before July first of the third school year following the school year in which aid is first payable; provided that, school districts who are eligible for aid under paragraph f of subdivision fourteen of this section may compute aid under the provisions of this subdivision using the aid ratio so computed for the reorganized district or the highest of the aid ratios so computed for any of the individual school districts which existed prior to the date of the reorganized school district. (b) For aid payable in the school years two thousand--two thousand one and thereafter for all school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, on or after July first, two thousand, any school district shall compute aid under the provisions of this subdivision using the sum of the high-need supplemental building aid ratio, if any, computed pursuant to clause (c) of this subparagraph and the greater of (i) the building aid ratio computed for use in the current year; or (ii) a building aid ratio equal to the difference of the aid ratio that was used or that would have been used to compute an apportionment pursuant to this subdivision in the nineteen hundred ninety-nine--two thousand school year as such aid ratio is computed by the commissioner based on data on file with the department on or before July first of the third school year following the school year in which aid is first payable, less one-tenth; or (iii) for all such school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, on or after July first, two thousand and on or before June thirtieth, two thousand four, for any school district for which the pupil wealth ratio is greater than two and five-tenths in the school year in which such school building project was approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more and for which the alternate pupil wealth ratio is less than eighty-five hundredths in such school year, and for all such school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, on or after July first, two thousand five and on or before June thirtieth, two thousand seven, for any school district for which the pupil wealth ratio was greater than two and five-tenths in the two thousand--two thousand one school year and for which the alternate pupil wealth ratio was less than eighty-five hundredths in the two thousand--two thousand one school year, the additional building aid ratio; provided that, school districts who are eligible for aid under paragraph f of subdivision fourteen of this section may compute aid under the provisions of this subdivision using the difference of the highest of the aid ratios so computed for the reorganized district or the highest of the aid ratios so computed for any of the individual school districts which existed prior to the date of the reorganized school district less one-tenth. (c) For aid payable in the school years two thousand five--two thousand six and thereafter for all school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in city school district in a city having a population of one million or more, on or after July first, two thousand five, high need school districts, as defined pursuant to regulations of the commissioner, may compute aid under the provisions of this subdivision using the high-need supplemental building aid ratio, which shall be the lesser of (A) the product, computed to three decimals without rounding, of the greater of the building aid ratios computed pursuant to subclauses i, ii and iii of clause (b) of this subparagraph multiplied by five percent, or (B) the positive remainder of ninety-eight one-hundredths less the greater of the building aid ratios computed pursuant to subclauses i, ii and iii of clause (b) of this subparagraph. d. Additional apportionment of building aid for structural inspection of school buildings. In addition to the foregoing apportionments made to a school district under the provisions of this subdivision, the commissioner is hereby authorized to apportion to any school district an amount in accordance with this subdivision for structural inspections of school buildings conducted pursuant to sections four hundred nine-d and four hundred nine-e of this chapter and the regulations of the commissioner implementing such sections. The amount of such apportionment shall equal the product of the building aid ratio defined pursuant to paragraph c of this subdivision and the actual approved expenses incurred by the district in the base year for each school building so inspected by a licensed architect or licensed professional engineer, provided that the amount of such apportionment shall not exceed the structural inspection aid ceiling. For inspections conducted in the nineteen hundred ninety-two--ninety-three school year, the structural inspection aid ceiling shall be ten thousand dollars. For inspections conducted in the nineteen hundred ninety-three--ninety-four school year and thereafter, the inspection aid ceiling shall be ten thousand dollars plus an amount computed by the commissioner in accordance with regulations adopted for such purpose, on the basis of an index number reflecting changes in the costs of labor and materials from July first, nineteen hundred ninety-three. e. (1) Apportionments payable for the nineteen hundred ninety-three--ninety-four through the two thousand one--two thousand two school years to the city school district of the city of New York. (a) For the purposes of calculating the apportionment payable to the city school district of the city of New York pursuant to this subdivision for the nineteen hundred ninety-three--ninety-four through the two thousand one--two thousand two school years, current year approved expenditures for debt service shall mean expenditures for debt service that would be incurred during the current year based on an assumed amortization for a period of thirty years of the total approved costs relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building, and based on an assumed rate of annual interest applied to such amortization, both to be established by the commissioner pursuant to this subparagraph. (b) The commissioner shall establish an assumed amortization for a period of thirty years commencing with the date of the award of a general contract by the school construction authority of the city of New York, or by another body or official designated by law, relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building within the city school district of the city of New York. Such assumed amortization shall provide for equal monthly payments of principal and interest based on an interest rate established by the commissioner for such purpose for the school year during which such general contract is awarded. Such estimated average interest rate and such actual average interest rate shall be expressed as a decimal to five places rounded to the nearest eighth of one-one hundredth. (c) By the first day of September of the current year the comptroller of the city of New York shall provide to the commissioner an analysis, as prescribed by the commissioner, of the actual average interest rate applied to all capital debt incurred by the city of New York for school purposes (or by the New York city transitional finance authority for school purposes, if no such capital debt is incurred by the city of New York) during the base year and of the estimated average interest rate applied to all capital debt to be incurred by the city of New York for school purposes (or by the New York city transitional finance authority for school purposes, if no such capital debt is incurred by the city of New York) during the current year. Upon approval by the commissioner such actual average interest rate shall be established as the interest rate applicable to the base year for the purposes of this subparagraph and subparagraph two of this paragraph, and such estimated average interest rate shall be tentatively established as the interest rate applicable to the current year, except that all apportionments of aid payable during the current year based on such estimated average interest rate shall be recalculated in the following year and adjusted as appropriate based on the appropriate actual average interest rate then established by the commissioner. (d) By the first day of November, nineteen hundred ninety-six the chancellor of the city school district of the city of New York shall provide to the commissioner an analysis of any outstanding debt of the city of New York which had originally been incurred by such city or its subdivisions for capital projects related to school buildings of the city school district of the city of New York for which general construction contracts were awarded prior to July first, nineteen hundred eighty-eight. Such analysis shall include the total principal amount borrowed, the total capital expenditures included in such principal for capital projects related to school buildings of the city school district of the city of New York for which general construction contracts were awarded prior to July first, nineteen hundred eighty-eight, the ratio of such capital expenditures to such total principal expressed as a decimal to five places without rounding and the annual principal and interest payment scheduled for each year remaining in the amortization of such principal as of July first, nineteen hundred ninety-six for all such borrowings reported to the department on the "SA 121 Form Building Expenses Worksheet, 1995-96 State Aid" bearing a run date of July tenth, nineteen hundred ninety-five which list shall constitute the maximum principal outstanding and eligible for aid pursuant to the provisions of this paragraph. Notwithstanding any other provision of this subdivision, for aids payable in the nineteen hundred ninety-six--ninety-seven school year and thereafter, the approved debt service included in such principal and interest payments for the purposes of calculating an apportionment pursuant to this subdivision shall equal the product of: (i) five tenths; (ii) the principal and interest payments scheduled for the current year as reported in such analysis; and (iii) the ratio of such capital expenditures to such total principal as reported in such analysis. (2) Apportionments payable for the two thousand two--two thousand three school year and thereafter to the city school district of the city of New York. (a) For the purposes of calculating the apportionment payable to the city school district of the city of New York pursuant to this subdivision for the two thousand two--two thousand three school year and thereafter, current year approved expenditures for debt service shall mean expenditures for debt service, including expenditures for any lease-purchase or other annual payments under a lease-purchase agreement or the equivalent that are eligible for aid under the opening paragraph of this subdivision, that would be incurred during the current year based on: (i) an assumed amortization to be established by the commissioner pursuant to this subparagraph for a period of thirty years of the total approved costs relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building for which a general construction contract was awarded on or after the first day of July, two thousand two, and (ii) an assumed amortization to be established by the commissioner pursuant to this subparagraph of any assumed unpaid principal, or the equivalent amount in the case of a lease-purchase agreement or its equivalent, remaining as of the first day of July, two thousand two pursuant to subparagraph one of this paragraph. Each such amortization shall be based on an assumed rate of annual interest applied to such amortization to be established by the commissioner pursuant to this subparagraph and pursuant to clause (c) of subparagraph one of this paragraph. (b)(i) For approved costs relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building for which a general construction contract was awarded on or after the first day of July, two thousand two, the commissioner shall establish an assumed amortization for a period of thirty years commencing on the date of receipt by the commissioner of a certification by the district that such general construction contract has been awarded by the school construction authority of the city of New York, or by another body or official designated by law, relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building within the city school district of the city of New York. Such assumed amortization shall provide for equal semiannual payments of principal and interest based on an interest rate established by the commissioner for such purpose for the school year during which such certification was received. Such estimated average interest rate and such actual average interest rate shall be expressed as a decimal to five places rounded to the nearest eighth of one-one hundredth. (ii) For any assumed unpaid principal or the equivalent amount in the case of a lease-purchase agreement or its equivalent, remaining as of the first day of July, two thousand two pursuant to subparagraph one of this paragraph, the commissioner shall establish a new assumed amortization commencing on such date for the unexpired term of the original assumed amortization as of such date. Such assumed amortization shall provide for equal semiannual payments of principal and interest based on the interest rate applied to the original amortization as established by the commissioner pursuant to subparagraph one of this paragraph. (3) Apportionments payable to a school district other than the city school district of the city of New York for any debt service related to projects approved by the commissioner on or after the later of the first day of December, two thousand one or thirty days after the date upon which this subparagraph shall have become a law or for any debt service related to projects approved by the commissioner prior to such date where a bond, capital note or bond anticipation note is first issued on or after such date to fund such project or for lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement entered into on or after such date that are eligible for aid under the opening paragraph of this subdivision. (a) For the purposes of calculating the apportionments payable to a school district other than the city school district of the city of New York pursuant to this subdivision for any debt service related to projects approved by the commissioner on or after the later of the first day of December, two thousand one or thirty days after the date upon which this subparagraph shall have become a law, or for any debt service related to projects approved by the commissioner prior to such date where a bond, capital note or bond anticipation note is first issued on or after such date to fund such project or for lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement entered into on or after the later of the first day of December, two thousand one or thirty days after the date upon which this subparagraph shall have become a law that are eligible for aid under the opening paragraph of this subdivision, current year approved expenditures for debt service shall mean debt service or lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement that would be incurred during the current year based on an assumed amortization to be established by the commissioner pursuant to this subparagraph of the approved project costs to be financed related to any such approved project, for a period of: (i) thirty years if the project is for the construction or acquisition of a new school building, (ii) twenty years if the project is for the construction of an addition to a school building or for the reconstruction, rehabilitation or improvement of a school building for which a period of probable usefulness of twenty or more years is assigned pursuant to the local finance law, and (iii) fifteen years if the project is for the reconstruction, rehabilitation or improvement of a school building for which a period of probable usefulness of less than twenty years is assigned pursuant to the local finance law. Provided, however, that, notwithstanding any provision of law to the contrary, for aid payable in the two thousand three--two thousand four school year, for any project which is eligible for an apportionment pursuant to this subparagraph, but which did not yet have a certification that a general construction contract had been awarded for such project by the district on file with the commissioner as of February fifteenth, two thousand three, such debt service or lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement that would be incurred during the current year based on an assumed amortization to be established by the commissioner pursuant to this subparagraph of the approved project costs to be financed shall not be current year approved expenditures for debt service, but shall be deemed to be debt service on new bonds and capital notes aidable in July following the current year pursuant to clause (b) of subparagraph one of paragraph f of this subdivision. Provided, however, that, notwithstanding any provision of law to the contrary, for aid payable in the two thousand four--two thousand five school year, for any project which is eligible for an apportionment pursuant to this subparagraph, but which did not yet have a certification that a general construction contract had been awarded for such project by or on behalf of the district on file with the commissioner as of February fifteenth of the base year, such debt service or lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement that would be incurred during the current year based on an assumed amortization to be established by the commissioner pursuant to this subparagraph of the approved project costs to be financed shall not be current year approved expenditures for debt service, but shall be deemed to be debt service on new bonds and capital notes aidable in July following the current year pursuant to clause (b) of subparagraph one of paragraph f of this subdivision. (b) Such assumed amortization for a project approved by the commissioner on or after the later of the first day of December, two thousand one or thirty days after the date upon which this subdivision shall have become a law or for any debt service related to projects approved by the commissioner prior to such date where a bond, capital note or bond anticipation note is first issued on or after such date to fund such projects, shall commence: (i) eighteen months after such approval or (ii) on the date of receipt by the commissioner of a certification by the district that a general construction contract has been awarded for such project by the district, whichever is later, and shall provide for equal semiannual payments of principal and interest based on an interest rate established pursuant to subparagraph five of this paragraph for such purpose for the school year during which such certification is received. The first installment of obligations issued by the school district in support of such projects may mature not later than the dates established pursuant to sections 21.00 and 22.10 of the local finance law. (c) Definitions. For purposes of this paragraph and subdivision thirty-nine of section sixteen hundred eighty of the public authorities law: (i) "the state share of a school construction project" shall mean the product of: (A) the difference of the total approved cost of such project less the approved cost of such project to be funded pursuant to subdivision six-f of this section and subdivisions ten and twelve of section thirty-six hundred forty-one of this article, multiplied by (B) the building aid ratio applicable to such project pursuant to paragraph c of this subdivision; (ii) "the local share of a school construction project" shall mean the difference of the total approved cost of such project, less the sum of: (A) the approved cost of such project to be funded through subdivision six-f of this section and subdivisions ten and twelve of section thirty-six hundred forty-one of this article, and (B) the state share of such school construction project; (iii) "refinancing costs attributable to refinancing the state share of a school construction project for purposes of retroactive amortization" shall mean the sum of: (A) that portion of the approved fees and other charges of refinancing, as defined in subparagraph one of paragraph h of this subdivision, which are determined by the commissioner to be reasonable in accordance with guidelines approved by the director of the budget, and which are fixed charges that will not vary by the amount of principal and additional principal to be refunded and (B) the product of: (1) the total amount of such approved fees and other charges of refinancing which are not fixed charges and which are determined by the commissioner to be reasonable in accordance with guidelines approved by the director of the budget, and (2) the percentage of the principal of the refunding bond that is attributable to refinancing of the state share of a school construction project pursuant to subparagraph four of this paragraph, less (C) the amount of such approved costs included in the principal of a refunding bond issued by the school district or by the dormitory authority of the state of New York to refund obligations of the school district subject to subparagraph four of this paragraph which is necessary to provide for the payment of the principal, redemption premiums, and interest due on the refunded obligations of the school district to their stated maturities or if such bonds are to be called, to the call date. Provided, however, that such expenditures shall be incurred for refunding bonds issued on or before July first, two thousand five and that such expenditures result from the refunding of outstanding obligations subject to an assumed amortization pursuant to this subparagraph for facilities which were eligible for building aid, and for which the annual aid apportionment payable in the two thousand two--two thousand three and/or two thousand three--two thousand four school years for approved expenditures for debt service are subsequently reduced as a result of the application of assumed amortization to unpaid principal outstanding as of July first, two thousand two, and further provided that the gross dollar savings over the life of the obligation shall be less than the approved fees and other charges of refinancing as defined in subparagraph one of paragraph h of this subdivision, but only to the extent that such amounts are not otherwise eligible for aid pursuant to this subdivision; (iv) "additional principal attributable to the refunding of bonds" shall mean the amount of approved expenses included in the principal of a refunding bond issued by the school district, or issued by the dormitory authority of the state of New York to refund obligations of the school district subject to subparagraph four of this paragraph, which is necessary to provide for the payment of the principal, redemption premiums, and interest due on the refunded obligations of the school district to their stated maturities or if such bonds are to be called, to the call date; and (v) "additional principal attributable to the refunding of bonds to refinance the state share of a school construction project for purposes of retroactive amortization" shall mean the percentage of the additional principal attributable to the refunding of bonds that is necessary to refinance the state share of a school construction project pursuant to subparagraph four of this paragraph. (4) Apportionments payable for the two thousand two--two thousand three school year and thereafter to a school district other than the city school district of the city of New York or a school district constituted pursuant to chapter five hundred sixty-six of the laws of nineteen hundred sixty-seven as amended, for any debt service still outstanding as of the first day of July, two thousand two that has not been subject to an assumed amortization pursuant to subparagraph three of this paragraph or for lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement having an unexpired term on such date. (a) For the purposes of calculating the apportionments payable to a school district other than the city school district of the city of New York pursuant to this subdivision for the two thousand two--two thousand three school year and thereafter for any debt service still outstanding as of the first day of July, two thousand two that has not been subject to an assumed amortization pursuant to subparagraph three of this paragraph or for lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement having an unexpired term on such date, current year approved expenditures for debt service shall mean debt service or lease-purchase or other annual payments under a lease-purchase agreement or an equivalent agreement that would be incurred during the current year based on an assumed amortization to be established by the commissioner pursuant to this subparagraph of the sum of (i) any assumed or actual unpaid principal, or the equivalent amount in the case of a lease-purchase agreement or its equivalent, remaining as of the first day of July, two thousand two pursuant to an existing amortization or any unpaid principal of a bond anticipation note as of the first day of July, two thousand two, plus (ii) the approved expenditures for the refunding of bonds that are otherwise eligible for an apportionment pursuant to this subdivision, as such expenditures are defined in subparagraph two of paragraph g of this subdivision, provided that such refunding bonds are issued on or before July first, two thousand five, less the sum of the refinancing costs attributable to refinancing the state share of a school construction project for purposes of retroactive amortization plus the additional principal attributable to the refunding of bonds, as such terms are defined in subclauses (iii) and (iv) of clause (c) of subparagraph three of this paragraph, for a period equal to the greater of: (i) the remaining maximum useful life of the project, or projects associated with such obligation, as determined by the commissioner based on data submitted by the school district, or (ii) the remaining term of the bond, bond anticipation note, or lease-purchase agreement. (b) Such assumed amortization of any assumed or actual unpaid principal, or the equivalent amount in the case of a lease-purchase agreement or its equivalent, remaining as of the first day of July, two thousand two for a project that has not been subject to an assumed amortization pursuant to subparagraph three of this paragraph, shall commence on the first day of July, two thousand two, and shall provide for equal semiannual payments of principal and interest based on an interest rate established by the commissioner for such purpose for the two thousand two--two thousand three school year. (c) Any school district eligible for an apportionment pursuant to this subparagraph shall be eligible for an additional apportionment equal to the sum of the refinancing costs attributable to refinancing the state share of a school construction project for purposes of retroactive amortization plus the additional principal attributable to the refunding of bonds to refinance the state share of a school construction project for purposes of retroactive amortization, as such terms are defined in subclauses (iii) and (v) of clause (c) of subparagraph three of this paragraph. (d) Any school district that issues debt after July first, two thousand two for the funding of the approved costs of projects eligible for an apportionment pursuant to this subparagraph shall be eligible for an additional apportionment calculated pursuant to the provisions of this subdivision, where the assumed amortization shall be based upon such approved costs and the remaining useful life shall be the remaining period over which the apportionments calculated pursuant to clause (a) of this subparagraph are to be paid. (5) (a) Calculation of interest rates for the city school districts of the cities of Buffalo, Rochester, Syracuse and Yonkers. (i) By the first day of September of the current year, or by the date prescribed by the commissioner for the two thousand one--two thousand two school year, the chief fiscal officer of each of the cities of Buffalo, Rochester, Syracuse and Yonkers shall provide to the commissioner an analysis, as prescribed by the commissioner, of the actual average interest rate applied to all capital debt incurred by such city related to school construction purposes during the base year not including debt issued by the dormitory authority for the benefit of any school district and of the estimated average interest rate applied to all capital debt to be incurred by such city related to school construction purposes during the current year not including debt issued by the dormitory authority for the benefit of any school district. Such interest rates shall be expressed as a decimal to five places rounded to the nearest eighth of one-one hundredth. Except as otherwise provided in items (ii) and (iii) of this clause, the interest rate of such city applicable to the base year for the purposes of this subparagraph shall be the actual average interest rate of such city in the base year, and the estimated average interest rate shall be tentatively established as the interest rate of such city applicable to the current year, except that all apportionments of aid payable during the current year based on such estimated average interest rate shall be recalculated in the following year and adjusted as appropriate based on the appropriate actual average interest rate then established pursuant to this clause provided, however, that in any year in which such city has not incurred debt related to serial bonds or sinking fund bonds as defined in sections 21.00 and 22.10, respectively, of the local finance law, issued for school construction purposes, the assumed interest rate calculated pursuant to clause (b) of this subparagraph shall be tentatively established as the interest rate of such city applicable to the projects approved by the commissioner in such year, except that all apportionments of aid payable based on such interest rate for each such project shall be recalculated following the submission of a final cost report for such project and adjusted as appropriate based on the appropriate actual average interest rate applicable to the debt issued to fund such project, and provided further that where such city has entered into an agreement with the dormitory authority of the state of New York to finance debt related to school construction that is subject to subparagraph four of this paragraph or has entered into an agreement with the dormitory authority of the state of New York for the purpose of financing a school construction project that is subject to subparagraph three of this paragraph, the interest rate applicable to the obligations issued by the dormitory authority of the state of New York for such purpose shall be the interest rate established for such city applicable to such debt. (ii) Notwithstanding the provisions of item (i) of this clause, where such city has entered into an agreement with the state of New York municipal bond bank agency pursuant to subdivision one of section twenty-four hundred thirty-five-a of the public authorities law and subdivision (b) of section sixteen of chapter six hundred five of the laws of two thousand, or an agreement with the Erie county industrial development agency for projects described in subdivision (b) of section sixteen of such chapter six hundred five, to finance debt related to school renovation, rehabilitation or reconstruction that is subject to subparagraph three of this paragraph, the lesser of: (A) the interest rate actually applicable to the obligations issued by the state of New York municipal bond bank agency or by the Erie county industrial development agency for such purpose; or (B) the interest rate that would have been applicable to bonds issued by the state of New York municipal bond bank agency if the project had been financed through such agency, as certified to the commissioner by the executive director of the state of New York municipal bond bank agency, shall be the interest rate established for such city applicable to such debt. (iii) Notwithstanding the provisions of item (i) of this clause, where such city has entered into an agreement with the state of New York municipal bond bank agency pursuant to subdivision one of section twenty-four hundred thirty-five-a of the public authorities law and subdivision (a) of section fourteen of the city of Syracuse and the board of education of the city school district of the city of Syracuse cooperative school reconstruction act, or an agreement with the city of Syracuse industrial development agency for projects authorized pursuant to the city of Syracuse and the board of education of the city school district of the city of Syracuse cooperative school reconstruction act, to finance debt related to school rehabilitation or reconstruction that is subject to subparagraph three of this paragraph, the lesser of: (A) the net interest cost as defined by the commissioner, applicable to the obligations issued by the state of New York municipal bond bank agency or the city of Syracuse industrial development agency for such purpose; or (B) such net interest cost, as defined by the commissioner that would have been applicable to bonds issued by the state of New York municipal bond bank agency if the project had been authorized to be financed and had been financed through such entity, as certified to the commissioner by the executive director of the state of New York municipal bond bank agency shall be the interest rate established for such city applicable to such debt. (b) Calculation of interest rates for school districts other than the city school districts of the cities of Buffalo, Rochester, Syracuse, Yonkers and New York. By the first day of September of the current year, or by the date prescribed by the commissioner for the two thousand one--two thousand two school year, each school district, other than the city school districts of the cities of Buffalo, Rochester, Syracuse, Yonkers and New York, shall provide to the commissioner in a format prescribed by the commissioner such information as the commissioner shall require for all capital debt incurred by such school district during the preceding school year relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building, not including debt issued by the dormitory authority. Based on such reported amortizations and a methodology prescribed by the commissioner in regulations, the commissioner shall compute an assumed interest rate that shall equal the average of the interest rates applied to all such debt issued during the preceding school year. The assumed interest rate shall be tentatively established as the interest rate of each such school district applicable to the current year for the purposes of this subparagraph and shall be expressed as a decimal to five places rounded to the nearest eighth of one-one hundredth except that all apportionments of aid payable during the current year based on such assumed interest rate shall be recalculated in the following year and adjusted as appropriate based on the appropriate assumed interest rate then established pursuant to this clause, provided, however, that where such school district has entered into an agreement with the dormitory authority of the state of New York to refinance debt issued by such school district that is subject to subparagraph four of this paragraph or has entered into an agreement with the dormitory authority of the state of New York for the purpose of financing a school construction project that is subject to subparagraph three of this paragraph, the interest rate applicable to the obligations issued by the dormitory authority of the state of New York for such purpose shall be the interest rate established for each such school district applicable to such debt. (c) Periodically, but at least at the end of each ten year segment of an assumed amortization established pursuant to subparagraphs two, three and four of this paragraph, the commissioner shall revise the remaining scheduled semiannual payments of the outstanding principal and interest of such assumed amortization, other than the outstanding principal and interest of refunding bonds where the district can demonstrate to the commissioner that it is precluded by state or federal law, rule or regulation from refinancing such outstanding principal and interest, based on the interest rates applicable for the current year if the difference of the interest rate upon which the existing assumed amortization is based minus such interest rate applicable for the current year is equal to or greater than one quarter of one-one hundredth. (6) Notwithstanding any other provisions of this paragraph, where a school district can demonstrate to the satisfaction of the commissioner extenuating circumstances that a waiver is warranted for an existing amortization or an existing lease-purchase agreement or equivalent agreement as of the first day of July, two thousand two, the commissioner may consult with the dormitory authority of the state of New York and may grant a waiver consistent with guidelines developed in consultation with the director of the division of the budget and shared with the chairs of the senate finance committee and the assembly ways and means committee, to make adjustments, including, but not limited to: (i) the period of assumed amortization to equal the period of the existing amortization, (ii) the interest rate applied to such amortization to equal the actual average interest rate applied to the existing amortization, and/or (iii) the annual assumed payments of debt service to equal the aidable payments of debt service under the existing amortization and provided further that where a school district can demonstrate to the commissioner that it is precluded by state or federal law, rule or regulation from refinancing such outstanding principal and interest, clause (iii) of this subparagraph shall apply. (7) For aid payable in the two thousand two--two thousand three school year, school districts shall provide, on or before the fifteenth day of January, two thousand two, such data as the commissioner shall deem necessary to estimate the apportionment payable under assumed amortization pursuant to subparagraph four of this paragraph, in such form as the commissioner shall determine. Such data shall be provided for each project for which the district will make a debt service payment that is aidable pursuant to this subdivision in the current school year and for each project for which such district expects to make a debt service payment that will be aidable pursuant to this subdivision in the following school year. f. (1) As used in this subdivision and in section thirty-six hundred nine-a of this article the following terms shall be defined as follows: (a) "Debt service on bond anticipation notes aidable in July following the current year" shall mean current year debt service expenditures for bond anticipation notes issued in the current school year. (b) "Debt service on new bonds and capital notes aidable in July following the current year" shall mean current year debt service expenditures for bonds and/or capital notes issued in the current school year. (2) Notwithstanding any inconsistent provisions of this subdivision, the amount of current year approved expenditure for debt service for bond anticipation notes and for bonds and capital notes issued during the current year for school building purposes pursuant to paragraph b of this subdivision shall not be greater than the estimate of such expenditures as reported to the commissioner by the school district on or before November fifteenth of the current year. For aid payable in the nineteen hundred ninety-six--ninety-seven school year and thereafter, any excess of actual expenditures for such debt service for bond anticipation notes and such bonds or capital notes incurred in the base year, within the limitations imposed pursuant to paragraph i of this subdivision, over such estimate of base year expenditures as reported to the commissioner by the school district on or before November fifteenth of the base year shall be considered approved expenditures for lease or other annual payments under the provisions of section four hundred three-b, subdivision eight of section twenty-five hundred three, or subdivision six of section twenty-five hundred fifty-four of this chapter, other than payments under a lease-purchase agreement or an equivalent agreement, for school building purposes. (3) (a) For the purposes of this subparagraph the following terms shall be defined as follows: (i) "First issue date" shall mean the date on which the school district issued an initial obligation in the form of a bond anticipation note, a bond or a capital note for the purpose of financing one or more approved building projects for which a combined annual claim of aidable debt service as defined in regulations of the commissioner, is submitted to the commissioner. (ii) "First contract date" shall mean the date by which: (A) the school district certifies to the commissioner that construction activities related to the erection, construction, reconstruction or alteration of a school building have commenced, or that the purchase of a school building has been made under one or more of the approved building projects included in a combined annual claim of aidable debt service; and (B) that one or more payments for such construction activities or purchase, including incidental costs have been made by the school district in a total amount equal to or greater than ten percent of the principal value upon which the combined annual claim of aidable debt service is based. Such certification shall be in a form and of a content as prescribed by the commissioner. (iii) "Principal value" shall mean the sum of the original principal amounts of all obligations issued by the school district for the purpose of financing one or more approved building projects for which a combined annual claim of aidable debt service is submitted to the commissioner, less any such principal that has been refinanced. (iv) "Approved project cost" shall mean the sum of approved project costs of all approved building projects for which a combined annual claim of aidable debt service is submitted to the commissioner. (v) "Final redemption date" shall mean the date by which the school district will have repaid all principal borrowed for the purpose of financing one or more approved building projects for which a combined annual claim of aidable debt service is submitted to the commissioner. (b) For aids payable in the two thousand--two thousand one school year, and thereafter, notwithstanding any inconsistent provisions of this subdivision, except for any project to which paragraph e of this subdivision applies, the amount of approved expenditures incurred during the current school year for debt service for bond anticipation notes, bonds and capital notes having a related first issue date on or after July first, two thousand shall equal the product of the actual expenditures incurred during the current school year for debt service for each such bond anticipation note, bond or capital note, less any accrued interest or premiums received by the district, and the applicable bond percent. (c) The applicable bond percent shall equal: (i) the quotient of the approved project cost for contracts awarded on or before June thirtieth of the current school year divided by the principal value, or (ii) if the first issue date is more than ninety days prior to the first contract date, the product of: (A) one minus the quotient of the number of days elapsed between the first issue date and the first contract date divided by the number of days elapsed between the first issue date and the final redemption date and (B) the quotient of the approved project cost for contracts awarded on or before June thirtieth of the current school year divided by the principal value, provided that, if upon review of documentation submitted by a school district the commissioner determines that the debt was issued by a city having a population of one hundred twenty-five thousand or more, as part of a mixed borrowing including both school purposes and other municipal purposes or, that a school district, due to circumstances beyond its control, issued bond anticipation notes, bonds or capital notes more than ninety days prior to the first contract date, the commissioner may compute the applicable bond percent pursuant to item (i) of this clause. The applicable bond percent shall be expressed as a decimal to five places without rounding. g. Eligibility criteria for aid for refunding of bonds. (1) To be eligible for any apportionment of aid pursuant to this subdivision for approved expenditures for the refunding of bonds to refinance school construction, reconstruction or purchase of existing structures or for expenditures incidental to such refunding of bonds the following requirements shall be met: (i) the refunding shall be in accordance with section 90.10 of the local finance law; (ii) the bonds to be refunded shall have been issued exclusively to finance school construction, reconstruction or purchase of existing structures; (iii) the issuance of refunding bonds shall result in a net present value savings to both the school district and the state, provided, however, that the gross dollar savings over the life of the bond shall exceed the approved fees and other charges of refinancing as defined in subparagraph one of paragraph h of this subdivision, except in the case of the refunding of bonds with unpaid principal outstanding as of the first day of July, two thousand two subject to assumed amortization pursuant to subparagraph four of paragraph e of this subdivision, for facilities eligible for building aid, and for which the annual aid apportionment payable in the two thousand two--two thousand three and two thousand three--two thousand four school years for approved expenditures for debt service are subsequently reduced as a result of the application of assumed amortization to such unpaid principal; and (iv) for any refunding of bonds for which a refunding bond resolution is approved after April first, nineteen hundred ninety-four, the board of education or trustees shall certify that the intention of the school district to accept proposals for the refunding of bonds has been announced in at least one regular public meeting of such board and that all such proposals received have been discussed in a second public meeting of the board held no sooner than fourteen days after such announcement. (2) For the purposes of subparagraph three of this paragraph, approved expenditures for the refunding of bonds shall mean any amount included in the principal of the refunding bond issue of a school district, or of the dormitory authority of the state of New York to refund obligations of a school district for purposes of subparagraph four of paragraph e of this subdivision, that represents the unmatured interest on the bonds to be refunded to and including either the date or dates such bonds were to mature or the date or dates set for redemption prior to their maturities, plus the redemption premiums, if any, payable on the bonds to be refunded on the redemption date or dates, plus the approved fees and other charges of refinancing as defined in subparagraph one of paragraph h of this subdivision. (3) Approved expenditures for the refunding of bonds as defined in subparagraph two of this paragraph shall be excluded from the calculation of any ratio of allowable expense to principal that may be used to determine approved debt service expense. h. Additional apportionment of building aid for approved fees and other charges and expenses related to the issuance of refinancing bonds. (1) For the purposes of this subdivision approved fees and other charges of refinancing shall include the costs and expenses incidental to the issuance of refunding bonds by a school district, or by the dormitory authority of the state of New York to refund obligations of a school district for purposes of subparagraph four of paragraph e of this subdivision, which are eligible for an apportionment pursuant to paragraph g of this subdivision, the costs of the development of the refunding financial plan and of executing and performing the terms and conditions of the escrow contract and all fees and charges of the escrow holders. (2) Notwithstanding any inconsistent provisions of this subdivision, school districts shall also be eligible for an apportionment pursuant to this subdivision in an amount equal to the product of the aid ratio used for building aid in the current year as defined in paragraph c of this subdivision and the base year approved fees and other charges of refinancing as defined in subparagraph one of this paragraph, but only to the extent such costs and expenses are not paid from the proceeds of the refunding bonds and are not otherwise eligible for aid pursuant to this subdivision, provided however, that in the case of the refunding of bonds subject to an assumed amortization pursuant to subparagraph four of paragraph e of this subdivision for facilities which were eligible for building aid, provided that such refunding bonds are issued on or before the first day of July, two thousand five and for which the annual aid apportionment payable in the two thousand two--two thousand three and/or two thousand three--two thousand four school years for approved expenditures for debt service are subsequently reduced as a result of the application of assumed amortization to unpaid principal outstanding as of July first, two thousand two, and further provided that the gross dollar savings over the life of the bond shall be less than the approved fees and other charges of refinancing as defined in subparagraph one of this paragraph, such apportionment shall be equal to such base year approved fees and other charges of refinancing, but only to the extent such costs and expenses are not paid from the proceeds of the refunding bonds and are not otherwise eligible for aid pursuant to this subdivision. i. Approved expenditures for debt service. (1) Bond anticipation notes. Except as otherwise provided in subparagraph four of this paragraph, for purposes of the apportionment payable pursuant to this subdivision in the nineteen hundred ninety-six--ninety-seven school year and thereafter to a school district other than to the city school district of the city of New York, except for any project to which paragraph e of this subdivision applies, approved expenditures for debt service on bond anticipation notes relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building, including but not limited to the balance of principal outstanding as of July first, nineteen hundred ninety-six which was funded during the nineteen hundred ninety-five--ninety-six school year from proceeds of the sale of bond anticipation notes by a school district, shall mean actual approved expenditures for principal and interest related to the financing of a school construction project through bond anticipation notes; except that: (i) such expenditures shall not include expenditures for principal on such notes during the first twenty-three months following the original issuance of such notes; and (ii) such expenditures shall not include expenditures for principal or interest on bond anticipation notes issued or reissued after the issuance of a certificate of substantial completion for such project, or expenditures for principal made during the school year in excess of the minimum principal payment required under the local finance law. (2) Bonds and capital notes. (i) For purposes of the apportionment payable pursuant to this subdivision in the nineteen hundred ninety-six--ninety-seven school year and thereafter to a school district other than to the city school district of the city of New York, approved expenditures for debt service on bonds, capital notes and any other long-term local obligations relating to the construction, acquisition, reconstruction, rehabilitation or improvement of any school building, shall mean actual approved expenditures for principal and interest related to the financing of a school construction project through such local obligations except as provided pursuant to clause (ii) of this subparagraph or subparagraph four of this paragraph or paragraph e of this subdivision; provided that, to be eligible for aid on debt service pursuant to this subdivision, such bonds, capital notes or other local obligations issued on or after August first, nineteen hundred ninety-six, or, in the case of a small city school district, on or after November fifteenth, nineteen hundred ninety-six, shall provide for substantially level debt service or principal as defined in paragraph d of section 21.00 of the local finance law; and (A) be amortized for a period of not less than fifteen years, including any period of amortization on related bond anticipation notes, in the case of local obligations issued to finance new construction and the purchase of existing structures; or (B) be amortized for a period of not less than ten years, including any period of amortization on related bond anticipation notes, in the case of local obligations issued to finance the reconstruction, rehabilitation or improvement of existing school buildings. (ii) Notwithstanding any inconsistent provisions of this clause, any actual principal or interest expenditures related to the issuance of a local obligation to finance new construction for a term of less than fifteen years or reconstruction for a term of less than ten years, as specified in clause (i) of this subparagraph, shall not be used in the calculation of the apportionment payable pursuant to this subdivision, provided, however, that aidable approved expenditures for debt service shall be calculated pursuant to the provisions of this clause, as follows: (A) for new construction and the purchase of existing structures, current year approved expenditures for debt service shall mean expenditures for principal and interest expense that would be incurred during the current year based on an assumed amortization for a period of fifteen years, or the actual term of the obligation issued by the school district, whichever is greater, of any outstanding principal and/or principal payments not previously aided at the time of issue of the obligation that represents costs approved by the commissioner including any period of amortization on related bond anticipation notes. Such assumed amortization shall commence with the date of the award of a general contract by the school district for such new construction or purchase, the date the district was placed on assumed amortization by the commissioner, or the date upon which the district selected an assumed amortization pursuant to subparagraph four of this paragraph, whichever shall last occur, and shall be based on an assumed rate of annual interest applied to such amortization, as determined by the commissioner pursuant to subparagraph three of this paragraph for the month in which a general contract is awarded for such project; and (B) for reconstruction, rehabilitation or improvement of existing school buildings, current year approved expenditures for debt service shall mean expenditures for principal and interest expense that would be incurred during the current year based on an assumed amortization for a period of ten years, or the actual term of the obligation issued by the school district, whichever is greater, of any outstanding principal and/or principal payments not previously aided that represents costs approved by the commissioner including any period of amortization on related bond anticipation notes. Such assumed amortization shall commence with the date of the award of a general contract by the school district for such new construction or purchase, the date the district was placed on actual amortization by the commissioner, or the date upon which the district selected an assumed amortization pursuant to subparagraph four of this paragraph, whichever shall last occur, and shall be based on an assumed rate of annual interest applied to such amortization, as determined by the commissioner pursuant to subparagraph three of this paragraph for the month in which a general contract is awarded for such project. (3) By the fifteenth day of each month, beginning on August fifteenth, nineteen hundred ninety-six, the commissioner shall determine the prevailing interest rate for the preceding month based on a nationally recognized and accepted index of municipal bond yields reported for such preceding month, in accordance with a methodology prescribed by the commissioner and approved by the director of the budget. (4) Notwithstanding any other provision of this paragraph to the contrary, in the case of projects eligible for an apportionment pursuant to subparagraph one of this paragraph during the nineteen hundred ninety-six--ninety-seven school year, and projects of small city school districts whether or not eligible for such an apportionment during such school year, for the purpose of the apportionment payable pursuant to this subdivision or subdivision six-b of this section during the nineteen hundred ninety-six--ninety-seven school year and thereafter to a school district other than to the city school district of the city of New York, for the construction, acquisition, reconstruction, rehabilitation or improvement of a school building, such school district shall have the option of selecting to receive aid based on actual expenditures pursuant to subparagraph one or clause (i) of subparagraph two of this paragraph; or based on an assumed amortization pursuant to clause (ii) of subparagraph two of such paragraph. Such selection shall be made on or before the time of submission of a project to the commissioner for final approval or November fifteenth, nineteen hundred ninety-seven, whichever shall occur later. Provided, however, any such school district selecting to receive aid based on actual expenditures pursuant to subparagraph one or clause (i) of subparagraph two of this paragraph, but not meeting all requirements of such provisions, shall have their aid for debt service computed under an assumed amortization pursuant to clause (ii) of subparagraph two of this paragraph, and provided further that any adjustments resulting from a required computation under clause (ii) of subparagraph two of this paragraph shall apply to the next payment due for such project. (5) Notwithstanding any inconsistent provisions of this paragraph, for the purpose of calculating an apportionment pursuant to this subdivision: (i) current approved expenditures for debt service for energy performance contracts authorized pursuant to section 9-103 of the energy law shall mean approved debt service incurred by a school district under such contract during the current school year related to the financing of such construction, acquisition, reconstruction, rehabilitation or improvement of any school building, provided that as a condition of eligibility for aid: A. The amortization period shall not exceed the term of the energy performance contract. B. Any state building aid attributable to such project shall be excluded in determining the cost savings under the energy performance contract. C. The energy performance contractor shall guarantee recovery of contract costs from energy savings realized by the school district during the term of the energy performance contract, which shall not exceed eighteen years. (ii) notwithstanding any inconsistent provisions of this paragraph, for aid payable in the two thousand two--two thousand three school year and thereafter, approved expenditures for debt service for energy performance contracts shall be based on assumed amortization where required by paragraph e of this subdivision. (iii) current year approved expenditures for debt service for the purchase of computer equipment shall mean expenditures for principal and interest expense incurred by a school district during the current year for financing of the purchase of computer equipment eligible for aid pursuant to paragraph b of this subdivision, provided that the payment of aid shall be based on an assumed period of amortization which shall equal the period of probable usefulness applicable to the acquisition of such equipment under section 11.00 of the local finance law and on an assumed rate of annual interest determined pursuant to subparagraph three of this paragraph for the month in which the purchase contract was executed; and (iv) current year approved expenditures for debt service for any other expenditures that are aidable pursuant to this subdivision and involve an object or purpose for which the period of probable usefulness under section 11.00 of the local finance law is less than ten years shall mean expenditures for principal and interest expense incurred by a school district during the current year for the contracting of indebtedness for such object or purpose, provided that the payment of aid shall be based on an assumed period of amortization equal to such period of probable usefulness and on an assumed rate of annual interest determined pursuant to subparagraph three of this paragraph for the month in which the financing agreement was executed. j. Assumed amortization for capital outlays. For aid payable in the two thousand three--two thousand four school year and thereafter, the apportionment to a school district for approved expenditures for capital outlays from its general fund, capital fund or reserved funds pursuant to this subdivision shall be based upon an assumed amortization established pursuant to the applicable provisions of subparagraph two, three, or four of paragraph e of this subdivision, as modified by this paragraph, whether or not the school district issues debt for such expenditures. Notwithstanding any provisions of subparagraph two, three, or four of paragraph e of this subdivision to the contrary: (1) For approved expenditures for capital outlay incurred by the city school district of the city of New York on or after July first, two thousand two that are related to projects for which a general construction contract was first awarded by the school construction authority of the city of New York, or by another body or official designated by law, prior to the first day of July, two thousand two, such amortization shall commence (i) eighteen months after January first, two thousand three; or (ii) on the date of receipt by the commissioner of a certification by the district that a general construction contract has been awarded for such project, whichever is later; and the quotient, calculated to the nearest whole dollar without rounding, of (A) the positive remainder of the approved expenditures of such project to be funded through capital outlay less the total amount of approved expenditures for capital outlay incurred before July first, two thousand two, divided by (B) the positive remainder, computed to the nearest year without rounding, of the new term of the assumed amortization established pursuant to item (ii) of clause (b) of subparagraph two of paragraph e of this subdivision as of July first, two thousand three, less twelve months shall be deemed to be the current year approved expenditures for debt service for the purposes of such paragraph. (2) Approved expenditures for capital outlay incurred by the city school district of the city of New York that are related to projects for which a general construction contract was first awarded on or after the first day of July, two thousand two, shall be deemed approved expenditures for debt service included in the assumed amortization for the project pursuant to subparagraph two of paragraph e of this subdivision. (3) For approved expenditures for capital outlay incurred by a school district other than the city school district of the city of New York on or after July first, two thousand two that are related to projects approved by the commissioner prior to the first day of July, two thousand two, such amortization shall commence: (i) eighteen months after January first, two thousand three; or (ii) on the date of receipt by the commissioner of a certification by the district that a general construction contract has been first awarded for such project by the district, whichever is later, and the quotient, calculated to the nearest whole dollar without rounding, of (A) the positive remainder of the approved cost of such project to be funded through capital outlay less the total amount of approved expenditures for capital outlay incurred before July first, two thousand two, divided by (B) the positive remainder, computed to the nearest year without rounding, of the remaining maximum useful life of the project as determined by the commissioner pursuant to item (i) of clause (a) of subparagraph four of paragraph e of this subdivision as of July first, two thousand one, less twelve months, shall be deemed to be the current year approved expenditures for debt service for the purposes of such paragraph. (4) Approved expenditures for capital outlay incurred by a school district other than the city school district of the city of New York that are related to projects approved by the commissioner on or after the first day of July, two thousand two, shall be deemed approved expenditures for debt service included in an assumed amortization for the project pursuant to subparagraph three of paragraph e of this subdivision. 6-a. Additional apportionments of building aid for school districts educating pupils residing on Indian reservations. In addition to the apportionments made to a school district under the provisions of subdivision six of this section, the commissioner is hereby authorized to apportion to any school district, which the commissioner deems to be providing educational services for a significant number of pupils residing on an Indian reservation, an amount calculated by the commissioner to represent the actual per pupil cost within the cost allowance assigned to Indian pupils as the contribution of the state on behalf of pupils residing on an Indian reservation. Such apportionment shall be payable after approval by the commissioner of final plans for a construction project approved by the commissioner for such purpose. Any such apportionment shall be made upon such terms and conditions as the commissioner shall approve. 6-b. Building aid for joint facilities. a. Two or more school districts eligible for operating aid pursuant to this section, other than a city school district in a city with one hundred twenty-five thousand inhabitants or more, that enter into an agreement in accordance with section one hundred nineteen-o of the general municipal law and this subdivision, may receive building aid pursuant to this subdivision for approved expenditures for the construction or reconstruction of one or more single site joint facilities. To be eligible for such aid, the general contracts for the project shall have been awarded on or after July first, nineteen hundred ninety-three, and the project and joint agreement shall have been approved by the commissioner. For participating school districts in which the school budget is subject to voter approval, the joint agreement shall be subject to voter approval. b. To be eligible for building aid for the joint facility, the joint agreement shall designate the board of education of the school district in which such single site joint facility will be located as the lead district, provided that where such facility will occupy adjoining sites in more than one participating district any district in which a part of the facility is situated may be designated as the lead district. Notwithstanding any other provision of law, the lead district shall be authorized to contract indebtedness for the purpose of the joint project pursuant to the local finance law as if the entire project was conducted solely by the lead district. The joint agreement shall designate the district or districts that will operate, maintain and/or manage the joint facility. The lead district shall serve as fiscal agent for all participating districts for the purpose of claiming and receiving building aid pursuant to subdivision six of this section. The joint agreement shall include a lease agreement between the lead district and all other participating districts whereby all parties agree to lease the facility for a term not less than the period within which all bonds or notes issued to finance the project will mature. Participating districts shall not be eligible for an apportionment pursuant to any provision of this chapter for any lease expense incurred for the joint facility and such expense shall not be included in the approved operating expense of any such district, provided, however, that nothing shall prohibit the inclusion of a district's share of the net administrative, operation and maintenance costs of the joint project in the district's approved operating expense. The joint agreement shall provide for a credit of the state aid received by the lead district for the joint project against the expenses of such project and shall provide a method of allocating the net cost of the joint facility to the participating districts, distributing (i) the gross cost based on each district's share of the use of the facility, and (ii) the state aid based on each district's aid ratio and use-share of the aidable expense. c. Upon approval of the joint agreement, the lead district shall be eligible for an apportionment pursuant to subdivision six of this section as if the joint project was conducted solely by such lead district; provided, however, that the building aid ratio used in computing such aid shall be the sum of the product for each of the participating districts of the district's building aid ratio selected pursuant to paragraph c of subdivision six of this section for aid payable in the current year multiplied by the district's share of the use of the facility. d. Where the lead district reorganizes with some or all other districts participating in the joint agreement subsequent to approval of the joint agreement, such reorganized district shall be eligible for reorganization incentive aid pursuant to subparagraph one of paragraph c as modified by paragraph i, both of subdivision fourteen of this section for expenditures for any debt service for indebtedness outstanding after the effective date of such reorganization that were incurred for the financing of construction of the joint facility so long as such facility continues to be used by such reorganized district, as if the joint facility had been constructed by the reorganized district subsequent to reorganization. e. Notwithstanding the provisions of section thirty-six hundred nine-a of this article, aid for joint projects shall be paid in accordance with a schedule established by the commissioner and approved by the director of the budget. 6-c. Building aid for metal detectors, and safety devices for electrically operated partitions, room dividers and doors. In addition to the apportionments payable to a school district pursuant to subdivision six of this section, the commissioner is hereby authorized to apportion to any school district additional building aid pursuant to this subdivision for its approved expenditures in the base year for the purchase of stationary metal detectors, security cameras, safety devices for electrically operated partitions and room dividers required pursuant to section four hundred nine-f of this chapter, or other security devices approved by the commissioner that increase the safety of students and school personnel, provided, however, that funds apportioned to school districts pursuant to this section shall not supplant funds for existing district expenditures or for existing contractual obligations of the district for stationary metal detectors, security cameras, partition and room divider safety devices, or security devices. Portable or hand held metal detectors shall not be eligible for aid pursuant to this subdivision. Such additional aid shall equal the product of the building aid ratio computed for use in the current year pursuant to paragraph c of subdivision six of this section and the actual approved expenditures incurred in the base year pursuant to this subdivision, provided that the limitations on cost allowances prescribed by paragraph a of subdivision six of this section shall not apply. The commissioner shall annually prescribe a special cost allowance for metal detectors, and security cameras, and the approved expenditures shall not exceed such cost allowance. The commissioner shall annually prescribe a special cost allowance for partition and room divider safety devices, and the approved expenditures shall not exceed such cost allowance. 6-d. Minor maintenance and repair. a. * (1) Moneys appropriated to the department for the extraordinary school capital needs program for New York city shall be used in accordance with the provisions of this subdivision. In addition to apportionments otherwise provided by this section, for aid payable in the school years nineteen hundred ninety-eight--ninety-nine through two thousand four--two thousand five, the commissioner may annually approve an application from the board of education of the city school district of the city of New York for funds in an amount not to exceed thirty-three million three hundred thirty thousand dollars, and for aid payable in the two thousand five--two thousand six school year and thereafter, the commissioner may approve an application from the board of education of the city school district of the city of New York for funds in an amount not to exceed fifty-three million three hundred twenty-eight thousand dollars, to repair public instructional school facilities based on priorities set by each community school district superintendent and, in the case of high schools and special education buildings, the chancellor, in New York city. * NB Effective until July 1, 2006 * (1) Moneys appropriated to the department for the extraordinary school capital needs program for New York city shall be used in accordance with the provisions of this subdivision. In addition to apportionments otherwise provided by this section, for aid payable in the school years nineteen hundred ninety-eight--ninety-nine through two thousand six--two thousand seven, the commissioner may annually approve an application from the board of education of the city school district of the city of New York for funds in an amount not to exceed thirty-three million three hundred thirty thousand dollars, and for aid payable in the two thousand seven--two thousand eight school year and thereafter, the commissioner may approve an application from the board of education of the city school district of the city of New York for funds in an amount not to exceed fifty-three million three hundred twenty-eight thousand dollars, to repair public instructional school facilities based on priorities set by each community school district superintendent and, in the case of high schools and special education buildings, the chancellor, in New York city. * NB Effective July 1, 2006 (2) Allowable expenses for repairs shall be defined by the commissioner and shall include expenses for minor repair and improvement activities performed to remedy existing minor maintenance and repair deficiencies of instructional school facilities or to mitigate the need for extensive capital renovation and rehabilitation for such buildings in the future. Allowable expenses pursuant to this subdivision shall not include any expenses eligible for aid under provisions of subdivision six of this section. Expenses reimbursed pursuant to this subdivision shall be excluded from the approved operating expenses of the district and shall be recorded in the district's special aid fund. (3) All funding provided under this subdivision shall be used to increase apportionments provided in the nineteen hundred ninety-eight--ninety-nine city fiscal year and thereafter at the community school district, high school and special education building level to address maintenance and repair projects. No funding provided pursuant to this subdivision shall be used for administrative costs of the central board of education. In order to be eligible for such aid, the city school district shall submit to the commissioner a report by October first of each school year,, signed by the chancellor outlining how the funds would be spent, including, but not limited to: (i) the establishment and use of school-based survey teams, consisting of principals, custodians, teachers selected by the authorized collective bargaining unit, the school district superintendent, parents and other interested parties to assess the conditions of schools semi-annually and to designate priority minor maintenance projects in each school building; where appropriate, in designating such priorities, the team shall consider other repairs that have been identified for action by the board of education or by the school construction authority; (ii) the expected time frame for achieving a state of good repair in each school building; and (iii) the local funds allocated to individual community school districts, high schools and special education buildings for the current city fiscal year as well as the funds expended by them in the base city fiscal year. (4) The school-based survey team shall annually submit a list of minor maintenance priorities to the district superintendent, or the chancellor, as the case may be, for review and approval. The district superintendent or the chancellor shall select the minor maintenance and repair projects which will best enhance the safety and quality of life for teachers and students within the facilities. (5) The chancellor shall annually provide an allocation to every community school district, high school district and group of special education buildings. Allocations shall be based on the total square footage, adjusted by a rating system that measures minor maintenance and repair needs and current facility conditions, for all schools in each community school district and for the high school districts and citywide special education programs. (6) It is further provided that the city school district of the city of New York must expend at least as much in local funds on maintenance and repair projects in each of the nineteen hundred ninety-eight--ninety-nine through the two thousand one-two thousand two city fiscal years and thereafter as it did in the nineteen hundred ninety-seven--ninety-eight city fiscal year. If the city school district spends less in local funds than in the nineteen hundred ninety-seven--ninety-eight city fiscal year for repair programs, as defined in regulation by the commissioner, then the city school district shall have its apportionment under this subdivision reduced in an aggregate amount equal to the total of such deficiencies. (7) Notwithstanding any other provision of law to the contrary, the commissioner is authorized to pay up to seventy percent of the moneys appropriated for such maintenance and repair expenses, to the extent moneys have been expended by February first of each school year, and reported in a manner satisfactory to the commissioner by March first, prior to April first of such school year, with the remainder payable on or after such date. b. * (1) Moneys appropriated to the department for the extraordinary school capital needs program for school districts outside of New York city shall be used in accordance with the provisions of this subdivision. In addition to apportionments otherwise provided by this section, for aid payable in the school years nineteen hundred ninety-eight--ninety-nine through two thousand four--two thousand five, the commissioner may annually approve an application from each school district in the state, except for the city school district of the city of New York, for an apportionment of aid for repair of public instructional school facilities under this subdivision, the sum of which shall not exceed sixteen million six hundred seventy thousand dollars for any school year, and for aid payable in the school year two thousand five--two thousand six and thereafter, the commissioner may approve an application from each school district in the state, except for the city school district of the city of New York, for an apportionment of aid for repair of public instructional school facilities under this subdivision, the sum of which shall not exceed twenty-six million six hundred seventy-two thousand dollars. Notwithstanding any provision of this subdivision to the contrary, the commissioner shall develop an expedited application process for school districts with apportionments of aid for repair of less than twenty-five thousand dollars. * NB Effective until July 1, 2006 * (1) Moneys appropriated to the department for the extraordinary school capital needs program for school districts outside of New York city shall be used in accordance with the provisions of this subdivision. In addition to apportionments otherwise provided by this section, for aid payable in the school years nineteen hundred ninety-eight--ninety-nine through two thousand six--two thousand seven, the commissioner may annually approve an application from each school district in the state, except for the city school district of the city of New York, for an apportionment of aid for repair of public instructional school facilities under this subdivision, the sum of which shall not exceed sixteen million six hundred seventy thousand dollars for any school year, and for aid payable in the school year two thousand seven--two thousand eight and thereafter, the commissioner may approve an application from each school district in the state, except for the city school district of the city of New York, for an apportionment of aid for repair of public instructional school facilities under this subdivision, the sum of which shall not exceed twenty-six million six hundred seventy-two thousand dollars. Notwithstanding any provision of this subdivision to the contrary, the commissioner shall develop an expedited application process for school districts with apportionments of aid for repair of less than twenty-five thousand dollars. * NB Effective July 1, 2006 (2) (i) Computation of formula for repair. The apportionment to any school district shall be the greater of (A) an amount computed by (1) multiplying the district's enrollment by the district's age of facility index established pursuant to this subdivision, (2) multiplying the result by the district's long-term growth index established pursuant to this subdivision, (3) dividing such result for each school district by the sum of such results for all school districts, excluding the city school district of the city of New York, and (4) multiplying such result by the amount appropriated for the purposes of this subdivision for school districts outside of the city of New York available after payment of any minimum apportionment, or (B) two thousand dollars. (ii) Computation of age facility index. This index shall be computed by dividing an average age of buildings owned by the school district and used for instruction by the statewide average age of all such buildings, except for those in the city school district of the city of New York. The average age shall be computed by multiplying the age of each facility in the nineteen hundred ninety-four calendar year by the square footage of such facility and adding the results for each district based upon data on file with the commissioner on April first, nineteen hundred ninety-three. This sum shall be divided by the total square footage of all buildings in the district to compute the average age. (iii) Computation of the long-term growth index. The index shall be computed by dividing the district's nineteen hundred ninety-three--ninety-four public school enrollment by the district's nineteen hundred eighty-nine--ninety public school enrollment, provided, however, that the index shall not be less than one. (iv) Enrollment, for the purposes of this subdivision, shall mean the count of children on a regular enrollment register of a public school in a district. (3) Allowable expenses for repairs shall be defined by the commissioner and shall include expenses for minor repair and improvement activities performed to remedy existing minor maintenance deficiencies or to mitigate the need for extensive capital renovation and rehabilitation in the future. Allowable expenses pursuant to this subparagraph shall not include any expenses eligible for aid under provisions of subdivision six of this section. Expenses reimbursed under this subdivision shall be excluded from the approved operating expenses of the district and shall be recorded in the district's special aid fund. (4) If a school district spends any of the apportionment provided pursuant to this subdivision to supplant local funds as approved in the district's nineteen hundred ninety-seven--ninety-eight budget for repair programs, as defined in regulations of the commissioner, then it shall have its apportionment under this section reduced in an amount equal to such substitution. (5) Notwithstanding any other provisions of this subdivision to the contrary, the commissioner is authorized to pay, up to seventy percent of the moneys appropriated for such repair programs, to the extent such moneys have been expended by February first of each school year and reported in a manner satisfactory to such commissioner by March first, prior to April first of such school year, with the remainder payable on or after such date. (6) Any contract in excess of twenty-five thousand dollars entered into by a school district receiving an apportionment pursuant to this section in excess of one hundred thirty thousand dollars for repairs to be funded pursuant to this subdivision shall be deemed to be a state contract within the meaning of that term as set forth in article fifteen-A of the executive law, and the school district shall be deemed, for purposes of this section, a contracting agency as that term is used in article fifteen-A of the executive law. * c. In the event the appropriation for purposes of this subdivision in any year is insufficient to pay all claims received pursuant to this subdivision, the commissioner shall pay such claims on a prorated basis among all districts filing such claims until the appropriation is exhausted. For aid payable in the nineteen hundred ninety-eight--ninety-nine through the two thousand four--two thousand five school years, the aid payable pursuant to this subdivision shall not exceed fifty million dollars ($50,000,000), and for the two thousand five--two thousand six school year and thereafter the aid payable pursuant to this subdivision shall not exceed eighty million dollars ($80,000,000). * NB Effective until July 1, 2006 * c. In the event the appropriation for purposes of this subdivision in any year is insufficient to pay all claims received pursuant to this subdivision, the commissioner shall pay such claims on a prorated basis among all districts filing such claims until the appropriation is exhausted. For aid payable in the nineteen hundred ninety-eight--ninety-nine through the two thousand four--two thousand five school years, and in the two thousand six--two thousand seven school year, the aid payable pursuant to this subdivision shall not exceed fifty million dollars ($50,000,000), and for the two thousand seven--two thousand eight school year and thereafter the aid payable pursuant to this subdivision shall not exceed eighty million dollars ($80,000,000). * NB Effective July 1, 2006 6-e. Additional apportionment of building aid for building condition surveys of school buildings. In addition to the apportionments payable to a school district pursuant to subdivision six of this section, the commissioner is hereby authorized to apportion to any school district additional building aid in accordance with this subdivision for its approved expenses in the base year for building condition surveys of school buildings that are conducted pursuant to this subdivision and subdivision four of section thirty-six hundred forty-one of this article. The amount of such apportionment shall equal the product of the building aid ratio defined pursuant to paragraph c of subdivision six of this section and the actual approved expenses incurred by the district in the base year for each school building so inspected, provided that the amount of such apportionment shall not exceed the building condition survey aid ceiling. For surveys conducted in the nineteen hundred ninety-eight--ninety-nine school year, the building condition aid ceiling shall be twenty cents gross per square foot of floor area. For surveys conducted in the nineteen hundred ninety-nine--two thousand school year and thereafter, the inspection aid ceiling shall be twenty cents gross per square foot of floor area, plus an amount computed by the commissioner in accordance with regulations adopted for such purpose, on the basis of an index number reflecting changes in the costs of labor and materials from July first, nineteen hundred ninety-eight. 6-f. Additional apportionment of building aid for certain projects. a. In addition to the apportionment payable to a school district pursuant to subdivision six of this section, the commissioner is hereby authorized to apportion to any school district additional building aid in the amount equal to the product of its approved expenditures in the base year for capital outlays from the district's general fund, capital fund or reserved funds that are incurred on or after July first, two thousand two for an eligible school construction project as defined in paragraph b of this subdivision, and the district's applicable building aid ratio as defined pursuant to paragraph c of subdivision six of this section. Approved expenditures for capital outlays for eligible school construction projects that are eligible for an apportionment pursuant to this subdivision shall not be eligible for aid pursuant to subdivision six of this section. b. For the purposes of this subdivision, an "eligible school construction project" shall mean a school construction project that is entirely funded from capital outlays and: (1) has a total project cost of one hundred thousand dollars or less; provided however, that for any district, no more than one project shall be eligible pursuant to this subparagraph for an apportionment within the same school year; and/or (2) is a construction emergency project to remediate emergency situations which arise in public school buildings and threaten the health and/or safety of building occupants, as a result of the unanticipated discovery of asbestos or other hazardous substances during construction work on a school or significant damage caused by a fire, snow storm, ice storm, excessive rain, high winds, flood or a similar catastrophic event which results in the necessity for immediate repair; and/or (3) if bonded pursuant to paragraph j of subdivision six of this section, would cause a city school district in a city having a population of less than one hundred twenty-five thousand inhabitants to exceed ninety-five percent of its constitutional debt limit provided, however, that any debt issued pursuant to paragraph c of section 104.00 of the local finance law shall not be included in such calculation. 7. Apportionment for pupil transportation. a. In addition to the foregoing apportionment, there shall be apportioned to any school district for pupil transportation, the lesser of ninety per centum or the state share of its approved transportation expense for the base year. The state share shall equal the sum of the transportation sparsity adjustment and the transportation aid ratio, but not less than six and one-half percent. The transportation aid ratio shall equal the greater of (i) the product of one and two hundred sixty-three thousandths multiplied by the state sharing ratio for comprehensive operating aid, (ii) an aid ratio computed by subtracting from one and one hundredth the product computed to three decimals without rounding obtained by multiplying the resident weighted average daily attendance wealth ratio by forty-six percent, where such aid ratio shall be expressed as a decimal carried to three places without rounding or (iii) excluding cities with a population of more than one million, an aid ratio computed by subtracting from one and one hundredth the product computed to three decimal places without rounding obtained by multiplying the number computed to three decimals without rounding obtained when the quotient of actual valuation of a school district, as defined in paragraph c of subdivision one of this section, divided by the sum of the resident public school district enrollment, the resident nonpublic school district enrollment and the additional public school enrollment of the school district for the year prior to the base year is divided by the statewide average actual valuation per the sum of such total resident public school district enrollment, nonpublic school district enrollment and additional public school enrollment of all school districts eligible for an apportionment pursuant to this section except central high school districts as computed by the commissioner using the latest single year actual valuation computed under paragraph c of subdivision one of this section, by forty-six percent, where such ratio shall be expressed as a decimal carried to three decimal places without rounding. The computation of such statewide average shall include the actual valuation of all school districts eligible for an apportionment pursuant to this section except central high school districts. The transportation sparsity adjustment shall equal the quotient of: the positive remainder of twenty-one minus the district's public school enrollment for the year prior to the base year per square mile, divided by three hundred seventeen and eighty-eight hundredths. Approved transportation expense shall be the sum of the approved transportation operating expense and the approved transportation capital, debt service and lease expense of the district. Approved transportation expense shall not be aidable pursuant to section nineteen hundred fifty of this chapter. b. (1) For the purposes of this apportionment, approved transportation operating expense shall be the actual expenditure incurred by a school district and approved by the commissioner (i) for those items of transportation operating expense allowable under subdivision one of section thirty-six hundred twenty-three-a of this article for regular aidable transportation of pupils as such terms are defined in sections thirty-six hundred twenty-one and thirty-six hundred twenty-two-a of this article, and (ii) for those items of transportation operating expense allowable under subdivision one of section thirty-six hundred twenty-three-a of this article for the transportation required or authorized pursuant to article eighty-nine of this chapter, and (iii) for providing monitors on school buses for students with disabilities, and (iv) for transportation operating expenses allowable under section thirty-six hundred twenty-three-a of this article for the transportation of homeless children authorized by paragraph c of subdivision four of section thirty-two hundred nine of this chapter, provided that the total approved cost of such transportation shall not exceed the amount of the total cost of the most cost-effective mode of transportation. (2) Notwithstanding any inconsistent provisions of this article, any increase in aids payable pursuant to this paragraph for public service transportation during the nineteen hundred ninety-four--ninety-five school year claimed by a school district in a city with a population in excess of one million inhabitants that is in excess of such aids payable based on the estimate of such expenditures reported to the commissioner by such city school district as of April first, nineteen hundred ninety-five shall be payable in September, nineteen hundred ninety-six. c. For the purposes of computing this apportionment for the two thousand five--two thousand six school year and thereafter, approved transportation capital, debt service, and lease expense shall be the amount computed based upon an assumed amortization determined pursuant to paragraph e of this subdivision for an expenditure incurred by a school district and approved by the commissioner for those items of transportation capital, debt service and lease expense allowable under subdivision two of section thirty-six hundred twenty-three-a of this article for: (i) the regular aidable transportation of pupils, as such terms are defined in sections thirty-six hundred twenty-one and thirty-six hundred twenty-two-a of this article, (ii) the transportation of children with disabilities pursuant to article eighty-nine of this chapter, and (iii) the transportation of homeless children pursuant to paragraph c of subdivision four of section thirty-two hundred nine of this chapter, provided that the total approved cost of such transportation shall not exceed the amount of the total cost of the most cost-effective mode of transportation. Approvable expenses for the purchase of school buses shall be limited to the actual purchase price, or the expense as if the bus were purchased under state contract, whichever is less. If the commissioner determines that no comparable bus was available under state contract at the time of purchase, the approvable expenses shall be the actual purchase price or the state wide median price of such bus in the most recent base year in which such median price was established with an allowable year to year CPI increase as defined in subdivision fourteen of section three hundred five of this chapter; whichever is less. Such median shall be computed by the commissioner for the purposes of this subdivision. d. In determining approved transportation operating expense for district-owned transportation and approved transportation capital, debt service and lease expense pursuant to paragraphs b, c and e of this subdivision and part two of this article, the commissioner shall make a deduction from the total transportation expense for the transportation of nonallowable pupils, and for that portion of the total annual mileage of district-owned school buses that is not aidable because it is not included in the total annual allowable mileage as defined in section thirty-six hundred twenty-one of this article, provided that such calculations shall be made pursuant to regulations of the commissioner, and further provided that such regulations shall provide for an exclusion of pupil miles for transportation provided on a space-available basis to pupils attending an approved universal prekindergarten program pursuant to section thirty-six hundred two-e of this article that does not result in additional transportation costs. e. In determining approved transportation capital, debt service and lease expense for aid payable in the two thousand five--two thousand six school year and thereafter, the commissioner, after applying the provisions of paragraph c of this subdivision to such expense, shall establish an assumed amortization pursuant to this paragraph to determine the approved capital, debt service and lease expense of the school district that is aidable in the current year, whether or not the school district issues debt for such expenditures, subject to any deduction pursuant to paragraph d of this subdivision. Such assumed amortization shall be for a period of five years and shall commence twelve months after the school district enters into a purchase contract, lease of the school bus or equipment or a general contract for the construction, reconstruction, lease or purchase of a transportation storage facility or site in an amount less than ten thousand dollars; except that where expenses were incurred for the purchase or lease of a school bus or equipment or the construction, reconstruction, lease or purchase of a transportation storage facility or site prior to July first, two thousand five and debt service was still outstanding or the lease was still in effect as of such date, the assumed amortization shall commence as of July first, two thousand five and the period of the amortization shall be for a period equal to five years less the number of years, rounded to the nearest year, elapsed from the date upon which the school district first entered into such purchase contract or general contract and July first, two thousand five, as determined by the commissioner, or the remaining term of the lease as of such date. Such assumed amortization shall provide for equal semiannual payments of principal and interest based on an assumed interest rate established by the commissioner pursuant to this paragraph. By the first day of September of the current year commencing with the two thousand five--two thousand six school year, each school district shall provide to the commissioner in a format prescribed by the commissioner such information as the commissioner shall require for all capital debt incurred by such school district during the preceding school year for expenses allowable pursuant to subdivision two of section thirty-six hundred twenty-three-a of this article. Based on such reported amortizations and a methodology prescribed by the commissioner in regulations, the commissioner shall compute an assumed interest rate that shall equal the average of the interest rates applied to all such debt issued during the preceding school year. The assumed interest rate shall be the interest rate of each such school district applicable to the current year for the purposes of this paragraph and shall be expressed as a decimal to five places rounded to the nearest eighth of one-one hundredth. 8. (i) Computation of total aidable pupil units for operating aid for aid payable in the nineteen hundred ninety-six--ninety-seven and prior school years. A district's total aidable pupil units for the purpose of computing operating aid shall be the sum of the district's adjusted average daily attendance computed pursuant to this section plus the additional aidable pupil units computed for the base year under subdivision nine of this section. (ii) Computation of total aidable pupil units for operating aid payable in the nineteen hundred ninety-seven--ninety-eight school year and thereafter. A district's total aidable pupil units for the purpose of computing operating aid shall be the sum of the district's adjusted average daily attendance computed pursuant to this section for the year prior to the base year multiplied by the enrollment index computed pursuant to this section for the base year plus the additional aidable pupil units computed for the year prior to the base year under subdivision nine of this section. (iii) In such computation school districts may, with the commissioner's approval, exclude attendance for those days on which school attendance was adversely affected because of an epidemic or because of a religious holiday as provided in paragraph b of subdivision two of this section. For the purposes of computing operating aid a district may use either total aidable pupil units for the current aid year or the average of total aidable pupil units for the current aid year and the prior aid year, using current aid year definitions of total aidable pupil units for both years, except that for aids payable during the nineteen hundred ninety-seven--ninety-eight school year the total aidable pupil units for the prior aid year used in such average shall be calculated using the definition of total aidable pupil units in effect for aid payable in the base year. 9. Additional aidable pupil units. a. The additional aidable pupil units used to compute total aidable pupil units pursuant to subdivision eight of this section shall be the sum of the attendance of summer session pupils multiplied by twelve per centum and the weighted pupils with special educational needs. Nothing contained in this subdivision shall be construed to result in the inclusion of the attendance of summer session pupils in the computation of weighted or adjusted average daily attendance pursuant to subdivision two of this section. b. For the computation of total wealth pupil units, additional aidable pupil units shall include the year prior to the base year resident weighted pupils with special educational needs and resident weighted pupils with handicapping conditions. 9-a. Secondary school weighting. a. Except as provided in paragraph b of this subdivision, there shall be added to the total aidable pupil units computed in subdivision eight of this section a number obtained by multiplying by twenty-five per centum the adjusted average daily attendance in grades seven through twelve excluding attendance of pupils who receive a weighting for handicapping conditions except for those pupils, if any, for whom a weighting of thirteen-hundredths is provided in clause four of subparagraph b of paragraph one of subdivision nineteen of this section. Only resident secondary pupils shall be used for computation of wealth units. b. For the purpose of computing total aidable pupil units for operating aid payable in the nineteen hundred ninety-seven--ninety-eight school year and thereafter pursuant to subdivision eight of this section, there shall be added to the total aidable pupil units computed in such subdivision eight a number equal to the product of: (i) twenty-five per centum, (ii) the adjusted average daily attendance in grades seven through twelve for the year prior to the base year, excluding attendance of pupils who receive a weighting for handicapping conditions except for those pupils, if any, for whom a weighting of thirteen-hundredths is provided in clause four of subparagraph b of paragraph one of subdivision nineteen of this section, and (iii) the enrollment index computed pursuant to this section for the base year. 10. a. Program approval requirements. Any school district receiving limited English proficiency aid pursuant to subdivision twenty-two of this section or a payment in lieu of such aid or any district receiving an additional apportionment pursuant to subdivision nineteen of this section for pupils with disabilities or a payment in lieu of such apportionment or any district receiving an additional apportionment pursuant to subdivision seventeen of this section for pupils in career education programs or a payment in lieu of such apportionment shall use the total funds attributable to such pupils for locally administered programs for such pupils in accordance with regulations issued by the commissioner. Such regulations shall provide for the use of such funds in the manner determined by the commissioner to be the most educationally advantageous for such pupils; and such regulations shall also include annual district reporting requirements which shall require the identification of such pupils, a statement describing the expenditure of the preceding year's funds for such pupils and an evaluation of the results obtained from such expenditures. A district which spends any part of its total annual apportionment attributable to such pupils in an unauthorized manner in the base year shall have its current year apportionment reduced by the amount of such unauthorized expenditures in the base year. b. District plans of service. Any school district receiving limited English proficiency aid pursuant to subdivision twenty-two of this section or a payment in lieu of such aid or an additional apportionment pursuant to subdivision nineteen of this section for pupils with disabilities or a payment in lieu of such apportionment or to subdivision seventeen of this section for pupils in career education programs or a payment in lieu of such apportionment shall, prior to September first, nineteen hundred seventy-four and every third year thereafter, submit to the commissioner an acceptable plan of service describing the student outcomes expected from implementation of the proposed plan, except that after September first, nineteen hundred eighty-six such plans with respect to the apportionment for pupils with disabilities or for pupils in career education programs shall be submitted every two years at a date specified by the commissioner and revised annually. The plan of service submitted by a school district receiving an additional apportionment pursuant to subdivision nineteen of this section for pupils with disabilities shall also describe how such district intends to ensure that all instructional materials to be used in the schools of such district will be made available in a usable alternative format for each student with a disability and for each student who is a qualified individual with a disability, at the same time as such instructional materials are available to non-disabled students, provided that such plan may incorporate by reference the alternative format plans developed pursuant to subdivision twenty-nine-a of section sixteen hundred four, subdivision four-a of section seventeen hundred nine, subdivision seven-a of section twenty-five hundred three or subdivision seven-a of section twenty-five hundred fifty-four of this chapter. Such plans shall be in a form prescribed by the commissioner, and except as heretofore provided, shall have the content prescribed by the commissioner. The commissioner may, from time to time, require amendments of such plans as deemed to be necessary and appropriate to further the educational welfare of the pupils involved. 11. Approved operating expense. The approved operating expense for apportionments to any school district hereunder shall be computed as follows: The apportionment to any school district for operating expense shall be based upon the total expenditures from its general fund and from its capital fund and from its risk retention fund for purposes of employee benefit claims related to salaries paid from the general fund, and for any city school districts with a population of more than one hundred twenty-five thousand inhabitants its expenditures from the special aid fund of grant moneys for improving pupil performance and categorical aid for special reading programs as provided in the aid to localities budget during the applicable year as approved by the commissioner, and in accordance with the classification of expenditures in use by the commissioner for the reporting by school districts of receipts, expenditures and other financial data. For the purpose of this subdivision operating expense shall be defined as total cash expenditures during the applicable year, but shall exclude: (1) any balances and transfers; (2) any payments for transportation of pupils to and from school during the regular school year inclusive of capital outlays and debt service therefor; (2-a) a portion of any payments for transportation of pupils to and from district operated summer school programs pursuant to subdivision six of section thirty-six hundred twenty-two-a of this article, inclusive of capital outlays and debt service therefor, equal to the product of such expenditures multiplied by the quotient of the total apportionment after the proration, if any, required by such subdivision six of such section divided by the total apportionment prior to such proration; (3) any payments for capital outlay and debt service for school building purposes, provided, however, that in the case of a school district which has entered into a contract with state university pursuant to paragraph o of subdivision two of section three hundred fifty-five of this chapter, under which the school district makes payments to state university on account of capital outlay relating to certain children residing in such school district, such payments shall not be so excluded; (4) any payments for cafeteria or school lunch programs; (5) any proceeds of short term borrowings in the general fund and any payments from the proceeds of the sale of obligations in the capital fund; (6) any cash receipts which reduce the cost of an item when applied against the expenditure therefor, except gifts, donations and earned interest and any refunds made; (7) any payments made to boards of cooperative educational services and to county vocational education and extension boards for purposes or programs for which an apportionment is paid pursuant to other sections of this chapter, except that payments attributable to eligible pupils with disabilities and ineligible pupils residing in noncomponent districts shall be included in operating expense; (8) any tuition payments made to other school districts inclusive of payments made to a central high school district by one of its component school districts; (9) any apportionment or payment received from the state for experimental or special programs paid under provisions other than those found in this section and other than any apportionments or payments received from the state by the city school district of the city of Yonkers for the purpose of funding an educational improvement program pursuant to a court order and other than any other state grants in aid identified by the commissioner for general use as specified by the board of education pursuant to subdivision two of section seventeen hundred eighteen of this chapter; (10) any funds received from the federal government except the federal share of medicaid subject to the provisions of section thirty-six hundred nine-a of this part and except Impact Aid funds received pursuant to sections two and six of Public Law eighty-one-eight hundred seventy-four (PL 81-874) or any law superseding such law in any such district which received aid pursuant to both such sections; provided further, however, that there shall be excluded from such federal funds or other apportionments any payments from such funds already deducted pursuant to this paragraph; (11) any payments made for which an apportionment is disallowed pursuant to regulations of the commissioner; (12) any expenditures made for accounting, tabulation, or computer equipment, in excess of ten thousand dollars unless such expenditures shall have been specifically approved by the commissioner; (13) any rentals received pursuant to the provisions of section four hundred three-a of this chapter; (14) any rentals or other annual payments received pursuant to the provisions of section four hundred three-b of this chapter; (15) any expenditures made for persons twenty-one years of age or over attending employment preparation education programs pursuant to subdivision twenty-four of this section; (16) any tuition payments made pursuant to a contract under the provisions of paragraphs e, f, g, h, i and l of subdivision two of section forty-four hundred one of this chapter or any tuition payments on behalf of pupils attending a state school under paragraph d of such subdivision; and (17) in any year in which expenditures are made to the New York state teachers' retirement system or the New York state and local employees' retirement system for both the prior school year and the current school year, any expenditures made to such retirement systems and recorded in the school year prior to the school year in which such obligations are paid. 11-a. Instructional expense. "Instructional expense" shall mean the sum of all year prior to the base year expenditures related to the instructional program of the district, as defined in regulations of the commissioner, including the cost of fringe benefits paid by such district for the instructional staff of the district. 12. Computation of comprehensive operating aid. a. The apportionment to school districts for operating expense shall be the sum of: (i) the greater of the amounts computed pursuant to paragraphs b and c of this subdivision or if applicable, pursuant to paragraph b of subdivision fifteen of this section; and (ii) the extraordinary needs aid computed pursuant to paragraph e of this subdivision. b. Computation of formula operating aid. The apportionment to any school district hereunder shall be computed by multiplying the formula operating aid ceiling by the operating aid ratio with the product multiplied by the district's total aidable pupil units. c. Computation of alternate operating aid. The apportionment for alternate operating aid shall be equal to the product of four hundred dollars and the district's total aidable pupil units. d. Formula operating aid ceiling. For aid payable in the school year nineteen hundred ninety-four--ninety-five and thereafter, the formula operating aid ceiling shall be thirty-nine hundred dollars plus an amount equal to the product of (i) the lesser of eight thousand dollars or the expense per pupil as defined in subdivision one of this section minus thirty-nine hundred dollars and (ii) the greater of the quotient, computed to four decimals without rounding, of seven and one-half percent divided by the combined wealth ratio, for school districts operating grades kindergarten through twelve, including central high school districts and their component elementary school districts, or seven and one-half percent. e. Extraordinary needs aid. In addition to any other apportionment pursuant to this chapter, a school district shall be eligible for an apportionment for extraordinary needs equal to the product of the formula operating aid ceiling defined in this subdivision, the extraordinary needs aid ratio defined in subdivision three of this section, the extraordinary needs count, the concentration factor and the extraordinary needs factor all as defined in subdivision one of this section. For aid payable in the school year two thousand four--two thousand five, any school district may receive the aid computed under this paragraph in the current year or the extraordinary needs aid base. Notwithstanding any other provision of law to the contrary, for aid payable in the school year two thousand four--two thousand five, any district receiving aid pursuant to this paragraph in excess of the extraordinary needs aid base may set aside and use such excess for the purpose of assisting students in achieving the new high learning standards and assessments in accordance with subdivision thirty-eight of this section. f. Setaside for attendance improvement and dropout prevention. Except as provided in subparagraph one of this paragraph, any school district with an attendance ratio in the year prior to the base year as calculated based on data on file with the commissioner as of the first day of July of the current year that is in the bottom decile of such attendance ratios for all districts shall set aside a portion of any aid payable pursuant to this section for the purpose of conducting programs to improve student attendance and student retention pursuant to the provisions of this paragraph and in accordance with a plan approved by the commissioner pursuant to regulations adopted by the commissioner for such purpose. * (1) Calculation of set aside for attendance improvement and dropout prevention. The set aside for attendance improvement and dropout prevention shall be calculated based on data on file with the commissioner as of the first day of July of the current year and shall equal the product of (i) three hundred twenty-five dollars, (ii) the district's base year enrollment and (iii) the remainder resulting when such attendance ratio is subtracted from one; after taking into account the provisions of paragraph c of subdivision eighteen of this section; provided, however, that for a city school district in a city with a population in excess of one million inhabitants, three hundred thirty-five dollars shall be substituted for three hundred twenty-five dollars and provided further that notwithstanding the amount of set aside so calculated, for aid payable in the nineteen hundred ninety-six--ninety-seven school year through the two thousand--two thousand one school year and for the two thousand three--two thousand four school year through the two thousand five--two thousand six school year, such set aside shall equal the amount set aside in the base year and for aid payable in the two thousand two--two thousand three school year, such set aside shall equal the amount set aside pursuant to this paragraph in the year prior to the base year; provided further that the provisions of this paragraph shall apply only if the product of clauses (ii) and (iii) of this subparagraph exceeds four hundred sixty-one. * NB Effective until July 1, 2006 * (1) Calculation of set aside for attendance improvement and dropout prevention. The set aside for attendance improvement and dropout prevention shall be calculated based on data on file with the commissioner as of the first day of July of the current year and shall equal the product of (i) three hundred twenty-five dollars, (ii) the district's base year enrollment and (iii) the remainder resulting when such attendance ratio is subtracted from one; after taking into account the provisions of paragraph c of subdivision eighteen of this section; provided, however, that for a city school district in a city with a population in excess of one million inhabitants, three hundred thirty-five dollars shall be substituted for three hundred twenty-five dollars and provided further that notwithstanding the amount of set aside so calculated, for aid payable in the nineteen hundred ninety-six--ninety-seven school year through the two thousand--two thousand one school year and for the two thousand three--two thousand four school year through the two thousand six--two thousand seven school year, such set aside shall equal the amount set aside in the base year and for aid payable in the two thousand two--two thousand three school year, such set aside shall equal the amount set aside pursuant to this paragraph in the year prior to the base year; provided further that the provisions of this paragraph shall apply only if the product of clauses (ii) and (iii) of this subparagraph exceeds four hundred sixty-one. * NB Effective July 1, 2006 (2) Attendance Plan. (A) A school district required to set aside funding pursuant to this paragraph for attendance improvement and dropout prevention shall file a plan with the commissioner by July fifteenth detailing a program pursuant to subparagraph three of this paragraph to improve attendance and student retention and shall indicate how the district will use aid received under this paragraph for such purposes. Such plan shall: (i) provide for the targeting of monies to school buildings with chronic truancy rates equal to or higher than the district median provided however that a school that has been designated as a school under registration review (SURR), as defined by the commissioner, with a chronic truancy rate lower than the district median shall be eligible to retain such funding for the school year subsequent to removal from SURR designation; (ii) detail how programs funded under this will be coordinated with the dropout prevention programs of local public and private community agencies and organizations; (iii) detail procedures for reviewing the attendance and academic records of all pupils in the district during the two year period prior to entrance into high school for the purpose of identifying pupils with a high risk of truancy and academic failure, including but not limited to victims of child abuse or neglect, or pupils who are in foster care; and (iv) detail how services will be provided to such students in conjunction with plans for schoolwide improvement where appropriate; (v) provide for services to pregnant pupils, and parenting pupils and for coordination of such services with those services provided to such pupils by local social services districts; (vi) provide for services to pupils who are members of households receiving public assistance, and who reside in hotels, motels, shelters or other temporary living arrangements and for coordination of such services with those services provided by local social services districts; (vii) provide for the coordination of services under this paragraph with those provided under paragraph g of this subdivision and under subdivision thirty-two where appropriate; (viii) provide for the coordination of services under this section with those required under section two hundred forty-three-a of the executive law; (ix) provide for parental involvement; and (x) provide, to the greatest extent practicable, an expansion of services to schools which currently receive no services and contain high concentrations of limited English proficient pupils; and (xi) detail the procedures by which the coordination of services provided by community-based organizations will be achieved in schools. Such plan shall specify measurable performance goals and outcomes for the improvement of pupil performance, attendance and student retention and will require an examination of existing district and targeted building practices to determine the effectiveness of such practices. In this regard, national and state validated programs that have proven successful in increasing attendance, improving at-risk pupil performance and reducing dropout rates and recent research and evaluation studies of New York state attendance improvement dropout prevention programs must be considered in the planning process. (B) A city school district in a city having a population of more than one million shall file a plan pursuant to this paragraph containing only such programs as are selected by the chancellor with the approval of the commissioner from replicable model attendance improvement/dropout prevention programs which have demonstrated effectiveness. This plan shall include a list and description of the necessary administrative costs of the school district's setaside for the purposes of this paragraph, and the planned distribution of funds to community school districts, to school buildings within community school districts, to community-based organizations and to schools under the jurisdiction of the board of education of the city school district of such city. Upon approval of the plan, the commissioner shall be authorized to make payments for such purposes pursuant to section thirty-six hundred nine-a of this chapter. (C) A city school district in a city having a population of more than one million shall submit an annual report to the speaker of the assembly, the temporary president of the senate, the governor, and the commissioner, by January fifteenth of the current year. Such report shall include but not be limited to, and shall detail: (i) the distribution of funds to community school districts and to school buildings within community school districts and to schools under the jurisdiction of the board of education of the city school district of the city of New York and a description and amount of administrative costs of the central board, community school districts, individual school buildings, community-based organizations, and schools under the jurisdiction of the central board of education; (ii) the number of community-based organizations and the schools they are contracted with, indicators of successful coordination between school and community-based organizations, and a description of their related activities; (iii) the type of services provided to pregnant pupils and parenting pupils and the number of such pupils served; (iv) the procedures used for reviewing the attendance and academic records of all pupils in the district during the two year period prior to entrance into high school for the purposes of identifying pupils with a high risk of truancy and academic failure, the number of such students herein identified, and of those students identified, the number actually served; (v) the measurable performance objectives along with the related student data from the previous program year which can be used to determine the success of the program; (vi) evidence of coordination with services provided under paragraph g of this subdivision and under subdivision thirty-two and evidence of coordination with local social services districts and any federal, state and local program; (vii) provisions made to expand and coordinate services with community based organizations; (viii) initiatives undertaken to increase the involvement of parents or persons in parental relation in reducing truancy and improving the attendance of their children; and (ix) initiatives undertaken to expand services to eligible schools with high concentrations of limited English proficient pupils. (3) Allowable costs. (A) For the purposes of this paragraph, programs and services which may be approved by the commissioner pursuant to this paragraph shall include but not be limited to: (i) the services of additional support personnel including attendance, counseling and social work personnel; (ii) intergenerational mentoring programs; (iii) the institution of new or additional programs for in-school suspension programs work-experience, diagnostic screening, computerized telephone contact systems, alternative education programs; (iv) extracurricular after-school activities including but not limited to: athletics, recreation, art, music, drama, academic tutoring, mentoring, cultural field trips, community services and related equipment; (v) violence prevention activities including but not limited to conflict resolution programs, peer mediation programs, staff development in conflict resolution and violence prevention, and collaborative school safety programs; and (vi) other services designed to improve student attendance and retention rates. (B) The commissioner shall disallow any administrative or indirect costs of such programs or services pursuant to this paragraph in a city school district of a city having a population of more than one million inhabitants which exceed the allowable percent. For the nineteen hundred ninety-five--ninety-six school year the allowable percent shall be fifteen percent, thereafter it shall be twelve percent. The terms "administrative and indirect costs" shall be defined by the commissioner in regulations which shall be promulgated on or before September first, nineteen hundred ninety-five. (C) Such services may be provided by contract with non-school based organizations provided that no more than the allowable percent of the total contract costs shall be expended for administrative and indirect costs of the contractee as defined in regulations of the commissioner, which shall be promulgated on or before September first, nineteen hundred ninety-five. A school district may contract with a board of cooperative educational services for the provision of such services. All services shall be coordinated to the maximum extent feasible with services available pursuant to other state, local and federally funded programs. (4) The commissioner is authorized to provide technical assistance to eligible school districts in developing a resource allocation plan in connection with programs funded according to this paragraph. (5) The commissioner shall establish uniform statistical reporting requirements for school districts receiving aid under this paragraph to apply in evaluating improvement in attendance and student retention. * (6) A school district which spends less in local funds during the current year than in the base year for the purposes of conducting programs to improve student attendance and student retention, as defined by regulation of the commissioner, shall have its apportionment under this section reduced in an amount equal to such deficiency in the current year or the succeeding school year. In addition, a district which spends any part of its total annual set aside attributable to such purposes in an unauthorized manner in the base year shall have its current year apportionment under this section reduced in an amount equal to the amount of such unauthorized expenditures. In no event shall the reductions assessed pursuant to this clause on the current year apportionment under this section, be deducted from the set asides required pursuant to this subdivision. For the two thousand five--two thousand six school year, it is further provided that any city school district in a city having a population of more than one million shall allocate at least one-third of any increase from base year levels in funds set aside pursuant to the requirements of this paragraph to community-based organizations. Any increase required pursuant to this subparagraph to community-based organizations must be in addition to allocations provided to community-based organizations in the base year. * NB Effective until July 1, 2006 * (6) A school district which spends less in local funds during the current year than in the base year for the purposes of conducting programs to improve student attendance and student retention, as defined by regulation of the commissioner, shall have its apportionment under this section reduced in an amount equal to such deficiency in the current year or the succeeding school year. In addition, a district which spends any part of its total annual set aside attributable to such purposes in an unauthorized manner in the base year shall have its current year apportionment under this section reduced in an amount equal to the amount of such unauthorized expenditures. In no event shall the reductions assessed pursuant to this clause on the current year apportionment under this section, be deducted from the set asides required pursuant to this subdivision. For the two thousand six--two thousand seven school year, it is further provided that any city school district in a city having a population of more than one million shall allocate at least one-third of any increase from base year levels in funds set aside pursuant to the requirements of this paragraph to community-based organizations. Any increase required pursuant to this subparagraph to community-based organizations must be in addition to allocations provided to community-based organizations in the base year. * NB Effective July 1, 2006 (7) The commissioner shall adopt regulations to implement the provisions of this paragraph. g. Set aside for compensatory education. Any school district with a percentage of pupils with compensatory educational needs in the base year as calculated based on data on file with the commissioner as of the first day of July of the current year, that is in the top quartile of such percentages for all districts shall set aside a portion of any aid payable pursuant to this section for the purposes of compensatory education programs in accordance with a plan approved by the commissioner pursuant to the provisions of this subdivision and regulations promulgated pursuant hereto. (1) Calculation of set aside for compensatory education. The set aside for compensatory education programs shall be based on data on file with the commissioner as of the first day of July of the current year and shall equal the product of (i) the greater of the product of nine hundred forty dollars and the district's set aside ratio or ninety dollars and (ii) the district's pupils with compensatory educational needs. (2) A school district required to set aside funding pursuant to this paragraph for pupils with compensatory educational needs shall use such setaside in order to assist, in part, meeting the objectives established under Chapter one and in recognition of the disparity between the authorization level under such act and the funds actually made available to the schools of New York state pursuant to such act provided that the obligation to provide the services required pursuant to this paragraph shall continue only so long as such federal funds are made available to school districts in New York notwithstanding the provisions of paragraph d of subdivision fourteen of section twenty-five hundred ninety-i of this chapter. A city school district with a population of more than one million inhabitants shall distribute the setaside calculated pursuant to this paragraph in accordance with the provisions of items (i) through (v) of clause (A) of this subparagraph, notwithstanding the provisions of paragraph d of subdivision fourteen of section twenty-five hundred ninety-i of this chapter. For the purposes of this subparagraph, Chapter one shall mean Chapter one (l) of Title I of the Elementary and Secondary Education Act of 1965, as amended, (Public Law 100-297). (A) Eligibility. Pupils determined to be eligible under this clause shall receive services pursuant to this paragraph. Pupils eligible to receive compensatory services hereunder shall include: (i) pupils who score below the statewide reference point as defined by the commissioner on standardized third and sixth grade reading and mathematics examinations and fifth grade writing tests; or (ii) pupils who score below a reference point on preliminary competency tests or regents competency tests; or (iii) pupils in grades one, two and three who are found, through an acceptable, uniform screening procedure developed by the district and approved by the commissioner, administered in conjunction with teacher evaluations, to have educational deficiencies in reading, writing or mathematics; or (iv) kindergarten pupils who are found, through an objective, uniform districtwide screening procedure approved by the commissioner, administered in conjunction with their teacher's evaluation, to have educational deficiencies; or (v) pupils who by reason of limited English proficiency, score below a statewide reference point on an examination approved by the commissioner and administered in English. Such pupils shall be eligible to receive services until such pupils are performing at grade level. Any pupil who does not meet the foregoing criteria but is failing in two or more academic areas may be eligible to receive compensatory services hereunder. In addition, a school district may provide compensatory services pursuant to a plan to upgrade the entire educational program in a school as provided in clause (H) of this subparagraph if such school meets the criteria for use of funds for schoolwide programs established under Chapter one. Notwithstanding the provisions of this clause, this paragraph shall not apply to children with handicapping conditions receiving services in accordance with an individualized education program by the school district committee on special education. (B) Services. Compensatory services shall be appropriate to the individual needs of each pupil as identified by an assessment which shall be periodically adjusted as appropriate and shall be incorporated into the regular curriculum as much as possible. Such services may include: (i) small group instruction; (ii) individualized tutoring; (iii) specialized assistance within the regular classroom using strategies appropriate to the needs of individual pupils; (iv) accelerated learning strategies which include building on existing pupil strengths, provision of additional time for appropriate enrichment, and upgrading the challenge levels of the curriculum; (v) an adjusted instructional program; (vi) the use of educational technology; (vii) after-school or summer school remedial programs; (viii) schoolwide projects as provided for in clause (H) of this subparagraph; (ix) support services for pupils in kindergarten to grade three that are integrated into the academic compensatory program provided to such pupils; (x) or other remedial strategy approved by the commissioner. Nothing contained herein shall be construed to require a school district to provide a particular service or a particular combination of services enumerated in this clause. Each pupil receiving services shall receive an initial diagnostic assessment for the purpose of identifying basic skill deficiencies and shall be frequently evaluated and monitored for progress. (C) Coordination of services. The compensatory services shall be congruent with the instructional program provided in the regular classroom in addition to other programs which provide compensatory services. The district shall provide for planning and coordination of delivery of services and assessment procedures between the regular classroom teacher, remedial teacher, and, where appropriate, support services personnel funded under paragraph f of this subdivision and subdivision thirty-two to ensure minimal disruption of regular academic instruction and maximum integration of remedial teaching strategies with regular course work. (D) Allowable costs. A school district may use a portion of its funds for pupils with compensatory educational needs for the following activities: (i) inservice training which may be provided through school district programs that have proven successful or teacher centers or any other appropriate manner pursuant to regulations of the commissioner; and (ii) replication of model practices in use in effective schools as defined under Chapter one. (E) Parental involvement. A school district required to set funding in excess of one hundred fifty thousand dollars pursuant to this paragraph for pupils with compensatory educational needs shall implement programs, activities, and procedures for the involvement of parents of participating children. (i) At a minimum, such involvement requires local school districts to: (a) develop a written policy to ensure that parents are involved in the planning and implementation of the district plan provided for in clause (G) of this subparagraph; (b) make the policy available to parents of participating children; (c) convene an annual meeting to which all parents of participating children must be invited; and (d) provide parents of participating children with reports on their children's progress in the program on at least a semi-annual basis. (ii) Parental involvement activities may also include: (a) notifying parents or persons in parental relationship of their child's participation in the program, and the instructional objectives and methods to be used; (b) providing information and assistance to parents to help them work with their children at home; (c) establishment of a parent advisory committee; (d) coordination with other state or federally funded programs which provide literacy training and English language instruction for parents with limited English proficiency; and (e) other activities designed to increase achievement of participating children. (F) School records. Upon enrollment of a new pupil, school records of such pupil shall be obtained as soon as possible from the pupil's previous school and shall be maintained in the school building in which such pupil is served. All school districts shall maintain such records consistent with the standards established by the commissioner. (G) District plans. (i) Except as provided in subclause (ii) of this clause, any school district required to setaside funding pursuant to this paragraph for pupils with compensatory educational needs shall comply with the applicable provisions of subdivision ten of this section. (ii) School districts required to setaside funding pursuant to this paragraph for pupils with compensatory needs shall submit a district plan that meets the requirements of this item if the set aside amount is greater than two hundred fifty thousand dollars, after taking into account the provisions of paragraph c of subdivision eighteen of this section and if the set aside amount is greater than five and six tenths percent of the district's comprehensive operating aid pursuant to this subdivision; or if the school district is a city school district in a city with a population in excess of one hundred twenty-five thousand inhabitants. (a) Such plan shall include information regarding the length, frequency and duration of compensatory services, and the size of groups receiving such services. The plan shall provide that each pupil eligible for compensatory services under this paragraph shall receive a diagnostic assessment for the purpose of identifying specific basic skill deficiencies. (b) The school district shall provide for the establishment of measurable performance objectives (1) for each individual pupil which shall include raising student performance to grade level and (2) for each building or group of buildings with a minimum enrollment of five hundred students which shall include statistically meaningful educational progress measurements. Each school district shall conduct an annual review of effectiveness to determine if performance objectives have been achieved. For each building or buildings where performance objectives have not been achieved, the district will review the program or programs in such building or buildings to determine how to revise program improvement activities in order to increase the achievement of participating students. (c) Such plan shall contain a statement describing the expenditure of the preceding year's setasides for such pupils and an evaluation of the results obtained from such expenditures. (H) Schoolwide programs. In the case of a school that meets the criteria for use of funds for schoolwide programs established under Chapter one, a school district may use a portion of its setaside for pupils with compensatory educational needs for schoolwide projects which upgrade the entire instructional program pursuant to a plan developed by the school district and approved by the commissioner. (i) Such plan shall: (a) provide for a comprehensive assessment of educational needs of all educationally deprived pupils as defined under Chapter one, as amended, in the school by the school district; (b) establish goals to meet the special needs of all pupils and procedures and measures to evaluate progress of educationally deprived pupils in achieving those goals; (c) describe the instructional program, pupil services and procedures to be used in pursuing the goals of the plan, including articulation between grade levels and schools and integration of the compensatory program and the regular instructional program in order to reduce fragmentation and increase program effectiveness; (d) describe the specific uses of funds made available to the school from the setasides available to the district for pupils with compensatory educational needs and describe how the use of appropriate federal and local funds will be coordinated in providing such compensatory education services; (e) be developed with the participation of individuals who will be engaged in carrying out the plan, including parents, teachers, pupil services personnel, administrators and other appropriate members of the school community. (ii) The commissioner may grant approval to conduct a schoolwide improvement project for up to a period of three years. In the event that, at the end of such period, the commissioner determines that the school has achieved acceptable progress in enhancing student performance, the district shall be permitted to continue the schoolwide project for an additional three year period. Acceptable progress shall be indicated by increased achievement by educationally deprived students in basic and advanced skills and in attainment of grade level proficiency or, in the alternative, for a secondary school, increased attendance, retention, and graduation rates, provided that student achievement has not declined during such period. (I) A school district which spends less in local funds during the current year than in the base year for programs for pupils with compensatory educational needs, as defined by regulation of the commissioner, shall have its apportionment under this section reduced in an amount equal to such deficiency in the current year or the succeeding school year. In addition, a district which spends any part of its total annual setaside attributable to such pupils in an unauthorized manner in the base year shall have its current year apportionment under this section reduced in an amount equal to the amount of such unauthorized expenditures. In no event shall the reductions assessed pursuant to this clause on the current year apportionment under this section, be deducted from the setasides required pursuant to this subdivision. (J) Pupils with compensatory educational needs funds may be used only to supplement and, to the extent practicable, increase the level of funds that would, in the absence of such state funds, be made available from other state or local sources for the education of pupils participating in programs and projects assisted under pupils with compensatory educational needs and in no case may the pupils with compensatory educational needs funds be used to supplant funds from other state or local sources. (K) Commissioner's report. The commissioner shall annually submit to the state legislature and the governor no later than February first a report describing the expenditure of the preceding year's setaside which shall include: (i) the number of school districts operating programs or projects funded by such setaside; (ii) the number of school buildings in which such programs operate; (iii) the unduplicated number and grade level of pupils with limited English proficiency who participate in such programs in each of the instructional areas of reading, writing, and mathematics; (iv) the number and grade levels of pupils who participate in such programs and in each instructional area tested; (v) the number of years individual pupils participate in remedial programs; (vi) the number of participating pupils retained in their current grade; (vii) an evaluation of the results of such programs; and (viii) recommendations for legislative action. (L) The commissioner shall adopt regulations to implement the provisions of this paragraph. (M) Setaside ratio. The setaside aid ratio shall be calculated by subtracting from one the product, computed to three decimals without rounding, obtained by multiplying the combined wealth ratio by sixty-four percent. The ratio shall not be less than zero. (N) Calculation of additional setaside for compensatory education in cities of one hundred twenty-five thousand or more inhabitants. The setaside for compensatory education in large city school districts shall equal the product of the compensatory education ceiling multiplied by the setaside ratio multiplied by the district's pupils with compensatory educational needs after taking into account the provisions of paragraph c of subdivision eighteen of this section. (O) Compensatory education ceiling. The compensatory education ceiling for the city school district of the city of New York shall be eight hundred eighty dollars; for the city school district of Buffalo, seventeen hundred fifty-five dollars; for the city school district of the city of Rochester, five hundred sixty-five dollars; for the city school district of the city of Syracuse, four hundred thirty dollars; and for the city school district of the city of Yonkers, two hundred thirty dollars. h. Setaside for early grade intervention. City school districts in cities having a population in excess of one hundred twenty-five thousand inhabitants shall set aside a portion of any aid payable pursuant to this section for the purpose of reducing class size and increasing individualized attention in grades one, two and three pursuant to the provisions of this paragraph and in accordance with regulations adopted by the commissioner for such purpose. (1) Calculation of early grade intervention set aside. Any school district with a population of one hundred twenty-five thousand or more inhabitants shall set aside a portion of any aid payable pursuant to this section for the purposes of early grade intervention in accordance with this section. Such amount shall be calculated based on data on file with the commissioner as of the first day of July of the current year and shall equal the product of one hundred twenty dollars and the set aside ratio and thirty percent of the public school enrollment of the district in the base year. (2) District Plan. A school district required to set aside funding pursuant to this paragraph for early grade intervention shall file a plan with the commissioner by August first detailing a program pursuant to subparagraph three of this paragraph to reduce class size and increase individualized attention in grades one, two and three, procedures for improved instructional strategies to be used with those pupils who are experiencing learning difficulties in reading, writing and arithmetic and shall indicate how the district will use aid received under this paragraph for such purposes. (3) Allowable Costs. A school district shall use the setaside received under this paragraph for the assignment of additional teachers in sufficient numbers to reduce, within limits of the set aside, the class size in grades one, two and three to a maximum class size of twenty-four pupils each or for the establishment of a comprehensive continuum of developmentally appropriate programs for pupils from kindergarten to grade three which shall include: manageable learning group sizes to insure proper individualized age-appropriate programming; an integrated curriculum and assessment program in grades one, two and three with associated staff development; and opportunities for meaningful parent participation in the planning and implementation of day to day activities. In the event that a school district cannot, in particular school buildings, meet the class size requirements due to severe physical plant limitations, or where implementation of such class size would result in multiple classes of fewer than eighteen pupils, a teacher assistant may be provided to increase the adult to pupil ratio in grades one, two and three in lieu of the assignment of additional teachers. (4) After meeting the requirements of subparagraph three of this paragraph, a school district may use such remaining apportionment for programs, such as establishing early childhood centers for grades kindergarten through two, or assigning additional teachers or teacher assistants for the purposes of increasing individualized attention for those pupils who are experiencing learning difficulties in grades one, two and three. (6) A school district which spends less in local funds during the current year than in the base year for the purposes of reducing class size and increasing individualized attention in grades one, two and three pursuant to the provisions of this paragraph and in accordance with regulations adopted by the commissioner for such purpose, shall have its apportionment under this section reduced in an amount equal to such deficiency in the current year or the succeeding school year. In addition, a district which spends any part of its total annual setaside attributable to such purposes in an unauthorized manner in the base year shall have its current year apportionment under this section reduced in an amount equal to the amount of such unauthorized expenditures. In no event shall the reductions assessed pursuant to this clause on the current year apportionment under this section, be deducted from the setasides required pursuant to this subdivision. (7) The commissioner is authorized to provide technical assistance to school districts. The commissioner shall adopt regulations to implement the provisions of this paragraph. 12-a. Aid for conversion to full day kindergarten. a. School districts may make available full day kindergarten programs for all children wishing to attend such programs. For school year two thousand--two thousand one, school districts may make available full day kindergarten programs for children wishing to attend such programs pursuant to regulations of the commissioner. For aid payable in the nineteen hundred ninety-eight--ninety-nine school year and thereafter, school districts which provided any half-day kindergarten programs or school districts which had no kindergarten programs in the nineteen hundred ninety-six--ninety-seven school year and in the base year shall be eligible for aid equal to the product of the district's selected operating aid per pupil multiplied by the positive difference resulting when the full day kindergarten enrollment of children attending programs in the district in the base year is subtracted from such enrollment in the current year. For the purposes of this subdivision, selected operating aid per pupil shall mean the greater of the per pupil amount calculated pursuant to paragraph b or c of subdivision twelve of this section, before such amounts are multiplied by the district's total aidable pupil units and enrollment shall be determined in accordance with the reporting of such data pursuant to paragraph n of subdivision one of this section. For aid payable in the two thousand two--two thousand three school year, districts which made full day kindergarten programs first available in the two thousand one--two thousand two school year, but for which an amount attributable to this program was not displayed on the computer listing produced by the commissioner in support of the executive budget request for two thousand one--two thousand two and entitled "BT032-1" under the heading "FULL DAY K", would be eligible to receive an amount equal to the product of the district's selected operating aid per pupil calculated as if operating aid had been calculated pursuant to subdivision twelve of this section in the current year multiplied by the positive difference resulting when the full day kindergarten enrollment of children attending programs in the district in the year prior to the base year is subtracted from such enrollment in the base year. b. Notwithstanding the provisions of this subdivision, aid apportioned to this subdivision that is attributable to pupils enrolled in full day kindergarten programs that are not available for all children wishing to attend such programs shall not exceed the amount allocated for such programs. In the event that all claims for such programs pursuant to this subdivision exceed such allocation, the commissioner shall determine the percentage of total claims submitted that is represented by each district's claim on file with the commissioner at the time of creation of each data file or fiscal report required by subdivision twenty-one of section three hundred five of this chapter and shall pay such claims on a prorated basis among all districts filing such claims, provided that such prorated apportionment, computed and payable as of September one of the school year immediately following the school year for which such aid is claimed shall be deemed final and not subject to change. For the two thousand--two thousand one school year, the maximum allocation for such programs shall be three million dollars ($3,000,000). 12-b. a. Notwithstanding any other section of law to the contrary, in lieu of aids payable pursuant to paragraph a of subdivision twelve and subdivision sixteen of this section, in the two thousand two--two thousand three school year, each school district shall be entitled to receive comprehensive operating aid equal to the sum of the amounts set forth for such school district for the two thousand one--two thousand two school year on the computer listing produced by the commissioner in support of the executive budget request for such year and entitled "BT032-1" under the heading "FLEX AID" less the amounts set forth for such school district as "Excess Cost - Public" and "Excess Cost - Private" under the heading "2000-01 Base Year Aids" in the school aid computer listing produced by the commissioner of education in support of the executive budget request for the two thousand one--two thousand two school year and entitled "BT032-1" and the amounts payable in the two thousand--two thousand one school year pursuant to paragraph e of subdivision twelve, subdivisions six-d, twenty-two, twenty-three, thirty-two and thirty-eight of this section, provided that for districts for which the combined wealth ratio as calculated pursuant to paragraph 1 of subdivision one of this section is less than one, may receive the amount calculated herein multiplied by one hundred and one percent. Nothing in this section would preclude a district from receiving extraordinary needs aid calculated pursuant to paragraph e of subdivision twelve of this section in the two thousand two--two thousand three school year. b. Notwithstanding any other section of law to the contrary, in lieu of aids payable pursuant to paragraph a of subdivision twelve and subdivisions sixteen, twenty, twenty-three, twenty-six-a and thirty-eight of this section, in the two thousand three--two thousand four school year, each school district shall be entitled to receive an amount equal to the sum of aids paid pursuant to this subdivision, subdivisions twenty-three and thirty-eight of this section and section one hundred seven of part H of chapter eighty-three of the laws of two thousand two in the base year less the product of such sum and the reduction factor. The reduction factor shall be the sum of one hundred seventy-five ten thousandths (0.0175) and the product of (1) the district's combined wealth ratio, (2) eight hundred ten ten thousandths (0.0810) and (3) the positive remainder when the district's percent of eligible applicants for the free and reduced price lunch program is subtracted from ninety-five hundredths (0.95), the reduction factor shall not be less than two hundred twenty-five ten thousandths (0.0225) and not more than six hundred thirty ten thousandths (0.0630). Nothing in this section would preclude a district from receiving extraordinary needs aid calculated pursuant to paragraph e of subdivision twelve of this section in the two thousand three--two thousand four school year. c. Notwithstanding any other section of law to the contrary, in lieu of aids payable pursuant to paragraph a of subdivision twelve and subdivisions sixteen, twenty, twenty-three, twenty-six-a and thirty-eight of this section, in the two thousand four--two thousand five school year, each school district shall be entitled to receive an amount equal to the product of the aid paid pursuant to this subdivision in the base year and one and one hundred seventy-five ten-thousandths (1.0175). Nothing in this section would preclude a district from receiving extraordinary needs aid calculated pursuant to paragraph e of subdivision twelve of this section in the two thousand four--two thousand five school year. 13. Growth aid. For aid payable in the nineteen hundred ninety-seven--ninety-eight school year and thereafter: a. The growth index of a school district to be used in determining its apportionment for growth aid shall be computed by dividing the public school enrollment of the district for the current school year as computed in this section, by such enrollment for the base year and expressing the result as a percentage, carried to one decimal place without rounding. b. Any district having a growth index in excess of one and four thousandths shall be paid an additional amount in the current year determined by multiplying the actual excess as verified by the commissioner based on reports of enrollment for the current year as submitted to the commissioner, by the amount of the apportionment selected pursuant to clause (i) of paragraph a of subdivision twelve of this section, provided that for aid payable in the two thousand two--two thousand three school year, the actual excess shall be multiplied by the amount of the apportionment that would have been selected pursuant to clause (i) of paragraph a of subdivision twelve of this section if aid were payable pursuant to such clause in the current year. 14. Limitations on the apportionment. The apportionment to any school district during any school year shall be subject to the following provisions: a. District subject to reorganization. (1) No apportionments pursuant to subdivision six of this section shall be paid to any school district which is scheduled for reorganization pursuant to the state plan for school district reorganization, unless there shall have been compliance with this paragraph. (2) In order to obtain an apportionment under subdivision six of this section for a district scheduled for reorganization and not reorganized, such district shall file with the commissioner a formal written application therefor, (a) showing (i) inadequacy or obsolescence of present facilities, and (ii) that such construction for which such apportionment is sought would be capable of substantial educational use by the reorganized district in case the reorganization under the existing plan of reorganization is effected, and that it will provide more efficient and more economical educational facilities for such reorganized district in the best educational interests of the children in the reorganized school district or (b) showing that such district has adopted a resolution or resolutions in accordance with sections eighteen hundred one through eighteen hundred three of this chapter in favor of such reorganization and is being prevented from reorganizing by the action of another district which is part of the same plan of reorganization. The commissioner shall within ninety days grant such apportionment or deny such apportionment with leave to the district to petition for a formal hearing. Such hearing shall be held pursuant to the procedures provided in subdivision three of section three hundred fourteen of this chapter. (3) (a) Within sixty days after such hearing is concluded and all papers in relation thereto are submitted, the commissioner shall render a preliminary finding recommending whether a change is warranted, setting forth his findings and conclusions which shall be based exclusively on the evidence presented at the hearing. The commissioner shall recommend the amendment or confirmation of the state plan in accordance with his preliminary finding by a report made by him and entered in his office. The commissioner shall serve a copy of such preliminary finding upon the clerk or in the event that there is no clerk, the trustee or trustees of the school districts located in the affected area or areas. In the event that such districts do not agree with such preliminary findings, the school districts affected by the terms of such preliminary finding may within thirty days apply to the chancellor of the board of regents for the appointment of a committee of the regents to review the proposed amendment or confirmation of the state plan. In the event that an application to the chancellor is not made within thirty days for the appointment of a committee of the regents, the preliminary finding shall become an order without further action of the commissioner. (b) Upon receipt of such application, the chancellor shall appoint a committee of three members of the regents, one of whom shall be a regent whose judicial district includes all or part of the areas affected. The committee of regents shall review the proposed amendment or confirmation of the state plan. In the event the committee is unable to resolve the differences between the commissioner and such school districts, it shall within sixty days from the date of the appointment of such committee, make an order reversing, affirming, or modifying, wholly or in part, such preliminary finding of the commissioner and amending or confirming the state plan setting forth the committee's findings and conclusions which shall be based exclusively on the evidence presented at the commissioner's hearing and any additional evidence presented at the committee's review. The committee shall have the discretion to permit additional evidence to be presented by any party. The commissioner shall serve a copy of such order upon the clerk or in the event there is no clerk, the trustee or trustees of the school districts located in the affected area or areas. (c) Such order of the committee of the regents shall be binding and final and subject to review pursuant to article seventy-eight of the civil practice law and rules. The scope of review shall include the question whether the determination is on the entire record supported by substantial evidence. (d) The commissioner shall establish and promulgate rules of practice and procedures in connection with such hearings, shall provide for the attendance of the hearing officer, regulate the course of the hearing, fix the time for filing of briefs and other documents, provide a hearing stenographer and for the making of a record as well as the making of a full transcript of all proceedings at the hearing and shall at the request of any party, school district or interested person have prepared and furnish a copy of the transcript or any party thereof upon payment of the costs therefor. (e) School districts designated in the established plan by an order of the committee of the regents shall be made parties by the petitioning district. Districts which may be affected by the proposed change may join or be joined in such proceeding by the commissioner or any party. (4) Notwithstanding the provisions of subparagraphs one through three of this paragraph, any such district which has qualified for an apportionment for school building purposes, under laws in effect prior to the date this act takes effect, shall receive an apportionment under subdivision six of this section; and provided, further, that no new apportionment shall be paid and the commissioner shall not approve any new expenditures for school building purposes in any such district after such date, except where the commissioner has made a determination as herein provided. (5) Nothing herein provided shall prevent a school district which has heretofore been denied an apportionment subsequent to July first, nineteen hundred sixty-two from making an application hereunder, except that any such apportionment which may be granted shall not be retroactive beyond July first, nineteen hundred sixty-two. c. Incentive building aid for reorganized districts. (1) Notwithstanding the provisions of this section, whenever two or more school districts are scheduled for reorganization pursuant to section three hundred fourteen of this chapter and whenever after July first, nineteen hundred sixty-five all such school districts so scheduled do reorganize, and (i) whenever such proposed reorganization includes at least two school districts, each of which maintains its own high school, or (ii) where such proposed reorganization includes only one school district maintaining its own high school, whenever in such case such proposed reorganization, in addition to such school district maintaining its own high school, includes at least nine other school districts, or (iii) whenever such proposed reorganization includes at least two central school districts, or (iv) where such proposed reorganization includes at least one school district maintaining its own high school and, in addition thereto, includes at least one school district employing eight or more teachers, or (v) where such proposed reorganization includes a city school district, and in addition thereto, includes at least seven other school districts, or * (vi) where such proposed reorganization includes at least two school districts employing eight or more teachers forming a central high school district pursuant to section nineteen hundred thirteen of this chapter, beginning with July first, nineteen hundred sixty-five or the first school year of operation as a reorganized district after such date, such reorganized school district shall be entitled to an additional apportionment of twenty-five per centum of the sum of: (A) its apportionment as provided in subdivision six of this section whenever such apportionment is computed on the basis of its approved base year expenditures for capital outlay from its general, capital, or a reserve fund incurred prior to July first, two thousand one, or on the basis of its approved base year expenditures for capital outlay from its general, capital or a reserve fund incurred in the two thousand one--two thousand two school year and computed pursuant to subdivision six of this section as if such expenditures were aidable under such subdivision, and current year approved expenditures for debt service for school building purposes and (B) its apportionment as provided in subdivision six of this section, the general contracts for which shall have been awarded on or after the date this act takes effect and prior to July first, two thousand six or within ten years from the effective date of reorganization, whichever is later as provided in subdivision six of this section, and which said sum shall be payable for and during the terms of any indebtedness created for the purpose of financing such construction or other facility as aforesaid, provided however, that in no event may the total apportionment under this paragraph, under subdivision twelve of section thirty-six hundred forty-one of this article, and under subdivisions six and six-f of this section for any project exceed the product of (1) ninety-eight percent for a high need school district, as defined pursuant to guidelines of the commissioner for the two thousand five--two thousand six school year, for all school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, on or after July first, two thousand five, or ninety-five per cent for any other school building project or school district, multiplied by (2) the sum of the base year approved expenditures for capital outlay for school building purposes from the general fund, capital fund or from a reserve fund, and current year approved expenditures for debt service for such purposes for such project. * NB Effective until July 1, 2006 * (vi) where such proposed reorganization includes at least two school districts employing eight or more teachers forming a central high school district pursuant to section nineteen hundred thirteen of this chapter, beginning with July first, nineteen hundred sixty-five or the first school year of operation as a reorganized district after such date, such reorganized school district shall be entitled to an additional apportionment of twenty-five per centum of the sum of: (A) its apportionment as provided in subdivision six of this section whenever such apportionment is computed on the basis of its approved base year expenditures for capital outlay from its general, capital, or a reserve fund incurred prior to July first, two thousand one, or on the basis of its approved base year expenditures for capital outlay from its general, capital or a reserve fund incurred in the two thousand one--two thousand two school year and computed pursuant to subdivision six of this section as if such expenditures were aidable under such subdivision, and current year approved expenditures for debt service for school building purposes and (B) its apportionment as provided in subdivision six of this section, the general contracts for which shall have been awarded on or after the date this act takes effect and prior to July first, two thousand eight or within ten years from the effective date of reorganization, whichever is later as provided in subdivision six of this section, and which said sum shall be payable for and during the terms of any indebtedness created for the purpose of financing such construction or other facility as aforesaid, provided however, that in no event may the total apportionment under this paragraph, under subdivision twelve of section thirty-six hundred forty-one of this article, and under subdivisions six and six-f of this section for any project exceed the product of (1) ninety-eight percent for a high need school district, as defined pursuant to guidelines of the commissioner for the two thousand five--two thousand six school year, for all school building projects approved by the voters of the school district or by the board of education of a city school district in a city with more than one hundred twenty-five thousand inhabitants, and/or the chancellor in a city school district in a city having a population of one million or more, on or after July first, two thousand five, or ninety-five per cent for any other school building project or school district, multiplied by (2) the sum of the base year approved expenditures for capital outlay for school building purposes from the general fund, capital fund or from a reserve fund, and current year approved expenditures for debt service for such purposes for such project. * NB Effective July 1, 2006 (2) Notwithstanding any provisions of this paragraph and paragraph d of this subdivision to the contrary, the commissioner is hereby authorized, in addition to any other state aid apportionments to which such district may be entitled under the provisions of this chapter, to make the additional reorganization incentive aid payments provided by such paragraphs, in the amounts, and in the manner provided therein, to central school district number one of the towns of Brookhaven and Smithtown, Suffolk county, as if such newly reorganized district were included in the various categories of reorganization referred to in such paragraphs. (4) In the event a school district is eligible for incentive building aid and again reorganizes pursuant to a new plan of reorganization established by the commissioner, and where such new reorganization shall again become eligible for incentive building aid, no project of such district shall be entitled to more than one such additional twenty-five percent apportionment. The latest date provided in this paragraph for the awarding of general contracts shall also apply to any school district subject to chapter five hundred eighty-eight of the laws of nineteen hundred sixty-six as amended, notwithstanding such date provided in such chapter. d. Incentive operating aid for reorganized districts. Notwithstanding the provisions of paragraphs a through c of this subdivision, whenever two or more school districts are scheduled for reorganization pursuant to section three hundred fourteen of this chapter, and whenever after July first, nineteen hundred sixty-five, all such school districts so scheduled do reorganize in accordance with the provisions of such section three hundred fourteen as amended by chapter seven hundred forty-five of the laws of nineteen hundred sixty-five, and (1) whenever such proposed reorganization includes at least two school districts, each of which maintains its own high school, or (2) where such proposed reorganization includes only one school district maintaining its own high school, whenever in such case such proposed reorganization, in addition to such school district maintaining its own high school, includes at least nine other school districts, or (3) whenever such proposed reorganization includes at least two central school districts, or (4) where such proposed reorganization includes at least one school district maintaining its own high school and, in addition thereto, includes at least one school district employing eight or more teachers, or (5) where such proposed reorganization includes a city school district, and in addition thereto, includes at least seven other school districts, or (6) where such reorganization includes at least two school districts employing eight or more teachers forming a central high school district pursuant to section nineteen hundred thirteen of this chapter, such reorganized district shall be entitled to an apportionment equal to an additional percent of the apportionment computed in accordance with the provisions of subparagraph (i) of paragraph a of subdivision twelve of this section; but in no case shall the sum of such apportionment under this paragraph plus the apportionment under subparagraph (i) of paragraph a of subdivision twelve of this section be more than a total of ninety-five per centum of the year prior to the base year approved operating expense; for a period of five years beginning with the first school year of operation as a reorganized district such additional percent shall be ten percent; and thereafter such additional ten percent apportionment to such district shall be reduced by one percentage point each year, beginning with the sixth school year of operation as a reorganized district, and continuing until such additional ten percent apportionment is eliminated; provided, however, that the total apportionment to such reorganized district, beginning with the first school year of operation as a reorganized district, and for a period of fifteen years thereafter, shall be not less than the sum of all apportionments computed in accordance with the provisions of this paragraph, subparagraph (i) of paragraph a of subdivision twelve of this section and subdivision twelve-b of this section which each component school district was entitled to receive and did receive during the last school year preceding such first year of operation. In the event a school district is eligible for incentive operating aid and again reorganizes pursuant to a new plan or reorganization established by the commissioner, and where such new reorganization is again eligible for incentive operating aid, the newly created school district shall be entitled to receive incentive operating aid pursuant to the provisions of this paragraph, based on all school districts included in any such reorganization, provided, however, that incentive operating aid payments due because of any such former reorganization shall cease. e. Building incentive aid for districts which reorganized prior to July second, nineteen hundred sixty-five. Notwithstanding the provisions of paragraphs a through d of this subdivision, whenever two or more school districts were scheduled for reorganization pursuant to section three hundred fourteen of this chapter and whenever, between July first, nineteen hundred sixty-two and July second, nineteen hundred sixty-five, all such school districts so scheduled did reorganize and (1) whenever such reorganization included at least two school districts, each of which maintained its own high school, or (2) where such reorganization included only one school district maintaining its own high school, whenever in such case such reorganization, in addition to such school district maintaining its own high school, included at least nine other school districts, or (3) whenever such reorganization included at least two central school districts, or (4) where such reorganization included at least one school district maintaining its own high school and, in addition thereto, included at least one school district employing eight or more teachers, or (5) where such reorganization included a city school district, and in addition thereto, included at least seven other school districts, the reorganized district, beginning with July first, nineteen hundred sixty-six, shall be entitled to an additional apportionment of twenty-five per centum of its apportionment as provided in subdivision six of this section whenever such apportionment is computed on the basis of its approved base year expenditures for capital outlay from its general, capital or reserve fund and current year's approved expenditures for debt services for school building purposes, the general contracts for which shall have been awarded after July first, nineteen hundred sixty-two and prior to July first, nineteen hundred seventy-two, and which said sum shall be payable for and during the terms of any indebtedness created for the purpose of financing such construction or other facility as aforesaid, provided, however, that in no event may the sum of the building aid apportionment under this paragraph plus the apportionment under subdivision six for any project exceed ninety-five per cent of the sum of the base year approved expenditures for capital outlay for school building purposes from the general fund, capital fund or from a reserve fund, and current year approved expenditures for debt service for such purposes for such project; in the event a school district is eligible for incentive building aid under this paragraph and again reorganizes pursuant to a new plan of reorganization established by the commissioner, and where such new reorganization shall again become eligible for incentive building aid, no project of such district shall be entitled to more than one such additional twenty-five percent apportionment; and provided further that such reorganized district, notwithstanding the provisions of paragraphs a through d of this subdivision, shall, beginning with July first, nineteen hundred sixty-six, be entitled to an additional apportionment equal to ten percent of the apportionment computed pursuant to subdivision twelve of this section, but in no case shall the sum of apportionment under this paragraph plus the apportionment under subdivision twelve of this section exceed ninety-five per centum of the base year operating expense for a period of five years, beginning with July first, nineteen hundred sixty-six; and thereafter such additional ten percent apportionment shall be reduced by one percentage point each year, until such additional ten percent apportionment is eliminated. f. For school districts which reorganize on or after July first, nineteen hundred eighty-three, the percent increase in apportionment pursuant to paragraph c of this subdivision shall be thirty and the percent increase in the apportionment pursuant to paragraph d of this subdivision shall be twenty provided that such school districts meet all other requirements of the provisions of such paragraph c or d as the case may be. All other requirements of paragraph c or d or both shall apply, provided however that such additional twenty percent apportionment pursuant to paragraph d of this subdivision shall be reduced by two percentage points each year in lieu of one percentage point. School districts which receive an apportionment under this pararaph shall not be eligible for an apportionment under paragraph c, d or e of this subdivision. g. Whenever a school district is dissolved and portions of such former district are added to more than one school district, each such school district to which territory is added shall in the first year only in which such district educates pupils from such former district be entitled to an additional apportionment under the provisions of this paragraph, which apportionment shall be computed in accordance with regulations of the commissioner under one of the following subparagraphs: (1) the pupils received by each such district as a result of receiving such new territory shall be added to all of the pupil counts used to compute operating aid for such district, or (2) if such receiving district is receiving aid under an option other than formula aid for such year, the additional aid shall be computed by dividing the operating aids base for such year by the pupil count used for computing formula operating aid such district might otherwise have received, and by multiplying such result by the number of additional pupils received from such dissolved district who are then residents of such receiving district. h. Efficiency study program. (1) Any school district which is eligible to receive an apportionment under this section or section thirty-six hundred two-b of this article may submit plans to the commissioner, jointly with one or more other school districts, directly or through a district superintendent of schools for the purpose of receiving approval of a study of reorganization of the district with one or more school districts, the sharing of programs between such districts and other school districts or to conduct a district-wide administrative and operational efficiency study and review for the purpose of identifying ways in which to improve the delivery of educational services and reduce district costs. (2) Efficiency studies may also be conducted pursuant to this paragraph by a school district, a group of school districts, or to a board of cooperative educational services for a project in which a county or other municipality is a partner for the purpose of studying a collaborative service delivery system for school aged at-risk youth and their families, including training. The following are also among the areas for which an efficiency study may be conducted: collaboration with human services agencies, such as a county department of social services; consolidation of services in such areas as health, youth or other human services; transportation; facilities, bidding and purchasing; equipment, insurance, maintenance and communications. (3) Plans shall be in the form prescribed by the commissioner and approved by the commissioner in accordance with regulations adopted for such purposes. (4) Notwithstanding any other provision of law, the costs of such efficiency study shall not be eligible for reimbursement pursuant to section nineteen hundred fifty of this chapter. i. Shared services savings incentive. (1) Eligibility. Any school district or group of school districts and/or boards of cooperative educational services may apply for a shared services savings incentive upon demonstrated savings of one hundred thousand dollars to the state in the current year for shared services activities including projects undertaken with a county or other municipality or a human services agency, such as a county department of social services, initiated on or after July first, nineteen hundred ninety-six pursuant to any provisions of this chapter and in accordance with this paragraph. No district or group of districts or boards of cooperative educational services shall be eligible for more than one such incentive in any school year; not including collaborative projects undertaken with a county or other municipality or a human services agency, such as a county department of social services. (2) Application. To be considered for a shared services savings incentive, the partners in each consortium shall, by mutual consent, designate a lead school district or board of cooperative educational services partner in such shared services consortium. The designated lead school district or board of cooperative educational services shall then submit an application to the commissioner in a form prescribed by the commissioner. Such application shall provide an assurance that the shared service plan shall remain in effect for a sufficient period of time to generate at least a two hundred thousand dollar savings to the state under provisions of this chapter, shall detail the shared service plan, including any contracts, and document the accrued one hundred thousand dollar savings based upon the applicable provisions of this chapter. Such documentation of the savings to the state shall include, but need not be limited to, baseline data on the cost of the service to the consortium for the year prior to the base year and the base year and the corresponding state aid paid in the base year and the state aid that would have been paid in the current year in the absence of sharing. (3) Incentive amount. Each shared services savings incentive shall equal fifty percent of the demonstrated savings per year in every year that the school district or board of cooperative educational services can demonstrate a savings to the state of at least one hundred thousand dollars for a maximum of five years and shall be prorated among any consortium partners in accordance with the amount of savings attributable to such partner pursuant to the applicable provisions of this chapter. (4) Notwithstanding the provisions of section thirty-six hundred nine-a of this chapter. Incentive amounts paid pursuant to this paragraph shall be made upon approval of the commissioner, subject to an expenditure plan approved by the director of the budget. j. (1) For school districts which reorganize on or after July first, nineteen hundred ninety-two, the percent increase in apportionment pursuant to paragraph c of this subdivision shall be thirty and the percent increase in the apportionment pursuant to paragraph d of this subdivision shall be forty provided that such school districts meet all other requirements of the provisions of such paragraph c or d as the case may be. All other requirements of paragraph c or d or both shall apply, provided however that such additional forty percent apportionment pursuant to paragraph d of this subdivision shall be reduced by four percentage points each year in lieu of one percentage point. School districts which receive an apportionment under this paragraph shall not be eligible for an apportionment under paragraph c, d, e or f of this subdivision and provided further that central high school districts qualifying for incentive building aid for reorganized districts pursuant to paragraph b of this subdivision shall only receive such incentive building aid for approved expenses related to the construction of secondary school facilities of the newly formed central high school district during the period commencing with the effective date of such reorganization through the four year period commencing July first of the school year in which the central high school district's new secondary school facility is completed and is first used for the instruction of pupils unless the central high school district and any school districts which are included within such central high school district reorganize pursuant to this chapter as a single central school district within such four year period commencing July first of the school year in which the central high school district's new secondary school facility is completed and is first used for the instruction of pupils of the central high school district and provided further that central high school districts qualifying for incentive operating aid for reorganized districts pursuant to paragraph b of this subdivision shall receive such apportionment based on the apportionment computed only for such newly formed central high school district pursuant to subparagraph (i) of paragraph a of subdivision twelve of this section and this paragraph; and only during the period commencing with the effective date of such reorganization through the four year period commencing July first of the school year in which the central high school district's new secondary school facility is completed and is first used for the instruction of pupils unless the central high school district and any school districts which are included within such central high school district reorganize pursuant to this chapter as a single central school district within such four year period commencing July first of the school year in which the central high school district's new secondary school facility is completed and is first used for the instruction of pupils of the central high school district, but in no case shall the sum of such apportionment of incentive operating aid under this paragraph plus the apportionment payable to the central high school district under subparagraph (i) of paragraph a of subdivision twelve of this section for the first year of such reorganization be more than a total of ninety-five per centum of the sum of the base year operating expense of the reorganized districts, or for the subsequent years of such reorganization be more than a total of ninety-five per centum of the base year operating expense of the central high school district or such subsequently reorganized central school district. (2) Any central high school district created on or after July first, nineteen hundred ninety-eight, that does not reorganize with all school districts included within such central high school district pursuant to this chapter as a single central school district within four years of July first of the school year in which the central high school district's new secondary school facility is completed and is first used for the instruction of pupils of the central high school district shall have its apportionments payable pursuant to this section reduced by one-sixth of the amount of such total apportionments previously paid pursuant to this paragraph during each of the six years immediately following the end of the fourth year following the completion of such new secondary school facility. 15. Borough aid. a. For the purposes of paragraphs b and c of subdivision twelve of this section, the city school district of the city of New York may use either the total aidable pupil units or the total wealth pupil units of such city school district computed in accordance with the provisions of this section or as though each such borough were a separate city school district. All pupils attending schools in a borough shall be deemed to reside in such borough. b. In computing general operating aid to the city school district of the city of New York, such district may elect to receive such aid computed on a city-wide basis; or such city school district may compute an apportionment for each borough as if it were a separate city school district, provided, however, that for the calculation of aid pursuant to subparagraph (i) of paragraph a, and paragraphs b and c of subdivision twelve of this section, the district shall compute for each borough an adjusted pupil wealth ratio and an adjusted combined wealth ratio using adjusted actual valuation, as provided in this paragraph to calculate an adjusted operating aid ratio in accordance with this paragraph, provided however, that in all such computations and the computation of the alternate pupil wealth ratio for such purpose, each calculation shall be carried to five decimal places without rounding. Notwithstanding the provisions of this subdivision, the combined wealth ratio of the city school district as a whole shall be used for the calculation of the formula operating aid ceiling for the purposes of subdivision twelve of this section. Adjusted actual valuation of the borough shall mean the actual valuation as defined in subdivision one of this section minus the assignable excess actual valuation plus the actual valuation adjustment. For the purpose of calculating adjusted actual valuation: (1) The combined wealth ratio deduct shall mean the quotient of one divided by sixty-four hundredths, as defined in subdivision three of this section, computed to three decimals rounded. (2) Excess combined wealth ratio shall mean the positive remainder of the combined wealth ratio of the borough minus the combined wealth ratio deduct. (3) Excess actual valuation shall mean the product of the statewide average actual valuation per total wealth pupil unit multiplied by the excess combined wealth ratio of the borough multiplied by the total wealth pupil units of the borough expressed as an integer without rounding. (4) Assignable excess actual valuation shall mean the excess actual valuation of the borough multiplied by one-thousandth of one percent expressed as an integer without rounding. (5) Proration decimal shall mean the quotient of the total wealth pupil units of each borough to the sum of the total wealth pupil units of all of the boroughs, computed to five decimals without rounding. (6) Actual valuation adjustment shall mean the product of the proration decimal of the borough and the sum of the assignable actual valuation of all of the boroughs expressed as an integer without rounding. (7) Computation of the adjusted operating aid ratio. The adjusted operating aid ratio shall be computed by subtracting from one the product computed to five decimals without rounding obtained by multiplying the adjusted combined wealth ratio by sixty-four hundredths. Such result shall be expressed as a decimal carried to five places without rounding, but shall not be greater than eighty-eight hundredths nor less than zero. c. If aid is paid on a borough basis, such city school district shall file with respect to each borough, all reports required by the commissioner. The amount included in such reports relating to operating expense and including general overhead and administration in each borough shall be such proportion of the amount expended from general overhead and administration for the entire city-wide school district as the total aidable pupil units of such borough bears to the sum of the total aidable pupil units for all boroughs provided, however that the expense per pupil for each borough shall be deemed to be the average expense per pupil of the entire city school district. d. Notwithstanding any inconsistent provisions of this article, if such city school district elected to receive operating aid payable in the two thousand--two thousand one school year under the provisions of this subdivision, approved transportation expense for public service transportation for transportation aid payable in the two thousand six--two thousand seven school year shall not include any expenditures to the New York City Metropolitan Transportation Authority for public service transportation during the two thousand five--two thousand six school year nor shall such expense be included in approved operating expense. 16. Tax adjustment aids. a. Definitions. (1) "Tax effort ratio" shall mean the quotient of the district's residential real property tax levy divided by the district's adjusted gross income computed to five decimals without rounding. (2) "Tax effort factor" shall mean the number computed to three decimals rounded when three hundredths is subtracted from the lesser of the district's tax effort ratio or seven hundredths and the difference is divided by four hundredths, but the result shall not be greater than one or less than zero. (3) "Residential real property tax levy" shall mean the school tax levy imposed on residential property, including condominium properties, in the year commencing in the calendar year two years prior to the calendar year in which the base year began. The final update of such data shall be reported by the state division of equalization and assessment to the commissioner by February fifteenth of the base year. The state board of equalization and assessment shall adopt regulations as appropriate to assure the appropriate collection, classification and reporting of such data for the purposes of paying state aid to the schools. (4) "Tax yield per pupil" shall mean the product computed to two decimals without rounding of (i) nineteen dollars and fifty cents and (ii) the quotient of the district's actual valuation per total wealth pupil unit, calculated pursuant to paragraph i of subdivision one of this section, divided by one thousand. (5) "Expense per pupil in excess of operating aid" shall mean the positive remainder resulting when (i) the quotient of the aid paid pursuant to subparagraph (i) of paragraph a of subdivision twelve or subdivision fifteen of this section, divided by the pupils used to compute such aid, is subtracted from (ii) the lesser of eight thousand dollars or the expense per pupil as defined in subdivision one of this section. (6) "Total aidable pupil units for tax aid". Total aidable pupil units for the purposes of this subdivision shall be equal to total aidable pupil units for operating aid purposes as defined in subdivision eight of this section, provided that such total aidable pupil units of a component district of a central high school district shall include all pupils residing in such district and attending the central high school and provided further that such total aidable pupil units for tax aid for such central high school district shall equal zero. b. Tax equalization aid. In addition to any other apportionment pursuant to this chapter, a school district shall be eligible for an apportionment for tax equalization under the provisions of this paragraph. Such apportionment shall equal the product of the total aidable pupil units for tax aid and the positive remainder of the district's expense per pupil in excess of operating and growth aid minus the district's tax yield per pupil. c. Tax effort aid. In addition to any other apportionment pursuant to this chapter, a school district with a pupil wealth ratio, as defined in subdivision one of this section, below two shall be eligible for an apportionment for tax effort under the provisions of this paragraph. Such apportionment shall equal the product of the total aidable pupil units for tax aid and nine hundred twelve dollars and forty-eight cents and the tax effort factor. d. For the school year commencing July first, nineteen hundred eighty and thereafter, any school district which maintained a home school for grades kindergarten through eight during the school year nineteen hundred seventy-nine--nineteen hundred eighty, which had indicated to the commissioner that it was willing to reorganize, prior to such year although no district had been willing to join in reorganization with such district and which had a tax rate for high tax aid purposes during the school year nineteen hundred seventy-nine--eighty under the provisions of former subdivision sixteen of this section and which was above the ninetieth percentile for tax rates of all school districts in this state, shall, notwithstanding the provisions of this subdivision, be entitled to receive an additional tax adjustment aid in each school year commencing in nineteen hundred ninety-four--ninety-five and thereafter pursuant to this paragraph, and any second school district which had such tax rate above the ninetieth percentile for aid payable in the nineteen hundred eighty-nine--ninety school year and which is contiguous to such entitled district and which had expressed to the commissioner as of July first, nineteen hundred eighty-nine a willingness to consolidate with such entitled district shall, notwithstanding the provisions of this subdivision, also be entitled to receive an additional tax adjustment aid in each school year commencing in nineteen hundred ninety-four--ninety-five and thereafter pursuant to this paragraph. Aid for each such school district pursuant to this paragraph shall be computed by multiplying the district's total aidable pupil units for operating aid purposes by three hundred sixty-five dollars. Aid paid under this paragraph will be part of the base used to compute transition adjustment under the provisions of subdivision eighteen of this section. 17. Special services aid for large city school districts and other school districts which were not components of a board of cooperative educational services in the base year. a. The city school districts of those cities having populations in excess of one hundred twenty-five thousand and any other school district which was not a component of a board of cooperative educational services in the base year shall be entitled to an apportionment under the provisions of this section. b. Aid for career education. There shall be apportioned to such city school districts and other school districts which were not components of a board of cooperative educational services in the base year for pupils in grades ten through twelve in attendance in career education programs as such programs are defined by the commissioner, subject for the purposes of this paragraph to the approval of the director of the budget, an amount for each such pupil to be computed by multiplying the career education aid ratio by three thousand seven hundred twenty dollars. Such aid will be payable for weighted pupils attending career education programs operated by the school district and for weighted pupils for whom such school district contracts with boards of cooperative educational services to attend career education programs operated by a board of cooperative educational services. Weighted pupils for the purposes of this paragraph shall mean the sum of the attendance of students in grades ten through twelve in career education sequences in trade, industrial, technical, agricultural or health programs plus the product of sixteen hundredths multiplied by the attendance of students in grades ten through twelve in career education sequences in business and marketing as defined by the commissioner in regulations. The career education aid ratio shall be computed by subtracting from one the product obtained by multiplying fifty-nine percent by the combined wealth ratio. This aid ratio shall be expressed as a decimal carried to three places without rounding, but not less than thirty-six percent. Any school district that receives aid pursuant to this paragraph shall be required to use such amount to support career education programs in the current year. A board of education which spends less than its local funds as defined by regulations of the commissioner for career education in the base year during the current year shall have its apportionment under this subdivision reduced in an amount equal to such deficiency in the current or a succeeding school year, provided however that the commissioner may waive such reduction upon determination that overall expenditures per pupil in support of career education programs were continued at a level equal to or greater than the level of such overall expenditures per pupil in the preceding school year. c. Computer administration aid for large city school districts and any other school district which was not a component of a board of cooperative educational services in the base year. The city school districts of those cities having populations in excess of one hundred twenty-five thousand inhabitants and any other school district which was not a component of a board of cooperative educational services in the base year shall be eligible for an apportionment in accordance with the provisions of this subdivision. Such districts shall be entitled to an additional apportionment computed by multiplying the lesser of (1) expenses for approved computer services in the base year or (2) the maximum allowable expense equal to the product of sixty-two dollars and thirty cents and the enrollment of pupils attending the public schools of such district in the base year, by the computer expenses aid ratio. The computer expenses aid ratio shall be computed by subtracting from one the product obtained by multiplying fifty-one per centum by the combined wealth ratio. This aid ratio shall be expressed as a decimal carried to three places without rounding, but shall not be less than thirty per centum. Expenses for approved computer services in the base year up to the maximum allowable expense shall not be used to claim aid pursuant to any other provisions of this section. 18. Transition adjustment. a. Limit on apportionment. For aid payable in the school year two thousand--two thousand one, a district may elect to receive the higher of (1) the current year aids for limiting: the apportionments computed under clause (i) of paragraph a of subdivision twelve, operating aid and subdivisions fifteen, borough aid; sixteen, tax adjustment aids; and eighteen, transition adjustment, of this section or (2) the comprehensive operating aids base multiplied by one hundred two percent, provided, however, that such current year aids for limiting shall not exceed, the greater of (1) one hundred four and twenty-seven hundredths percent of such comprehensive operating aids base or (2) the sum of the comprehensive operating aids base and eighteen and one tenth percent of the positive difference remaining when the comprehensive operating aids base is subtracted from such current year aids for limiting. b. If a city school district in a city having a population of more than one million inhabitants elects to compute aid pursuant to subdivision fifteen of this section, the provisions of paragraph a of this subdivision shall be computed using the sum of the aid pursuant to such subdivision in lieu of the aid pursuant to paragraph b or c of subdivision twelve of this section in determining the current year aids for limiting and the comprehensive operating aids base of such city school district. c. Any loss in aid due to the maximum increase provision of this subdivision shall be distributed on a prorata basis by the commissioner, as necessary for expenditure check purposes, to each individual apportionment included in the aids subject to such maximum provisions. The commissioner shall compute and recompute such amount in the normal course of auditing school district claims for aid. 19. Excess cost aid for pupils with handicapping conditions. 1. Definitions. For the purpose of this subdivision the following terms will have these meanings: a. "Pupils with handicapping conditions" shall mean pupils who are trainable mentally retarded, educable mentally retarded, visually impaired, hearing impaired, physically handicapped, speech impaired, emotionally disturbed, autistic, or learning disabled, as such terms are defined by the commissioner and who receive special educational services or attend programs which meet criteria established by the commissioner, operated by a district or by a board of cooperative educational services, whether or not the district is a component of such board. b. "Weighted pupils with handicapping conditions" shall be the attendance of pupils during the base year in programs approved in accordance with the provisions of article eighty-nine of this chapter in public schools and boards of cooperative educational services and shall be computed as follows: * (1) The attendance of pupils who have been determined by a committee on special education either to require placement for sixty per centum or more of the school day in a special class, or to require home or hospital instruction for a period of more than sixty days, or to require special services or programs for more than sixty per centum of the school day shall be multiplied by a special services weighting. The special services weighting shall be one and seven-tenths, provided, however, that solely for the purposes of calculation of an apportionment pursuant to this subdivision, such special services weighting shall be: (i) for aid payable in the nineteen hundred ninety-nine--two thousand and two thousand--two thousand one school years, one and seven-tenths; (ii) for aid payable in the two thousand one--two thousand two and two thousand two--two thousand three school years, one and sixty-eight hundredths; (iii) for aid payable in the two thousand three--two thousand four and two thousand four--two thousand five school years, one and sixty-five hundredths; * NB Effective until July 1, 2006 * (1) The attendance of pupils who have been determined by a committee on special education either to require placement for sixty per centum or more of the school day in a special class, or to require home or hospital instruction for a period of more than sixty days, or to require special services or programs for more than sixty per centum of the school day shall be multiplied by a special services weighting. The special services weighting shall be one and seven-tenths, provided, however, that solely for the purposes of calculation of an apportionment pursuant to this subdivision, such special services weighting shall be: (i) for aid payable in the nineteen hundred ninety-nine--two thousand and two thousand--two thousand one school years, one and seven-tenths; (ii) for aid payable in the two thousand one--two thousand two and two thousand two--two thousand three school years, one and sixty-eight hundredths; (iii) for aid payable in the two thousand three--two thousand four, two thousand four--two thousand five and two thousand six--two thousand seven school years, one and sixty-five hundredths; * NB Effective July 1, 2006 until June 30, 2007 * (1) The attendance of pupils who have been determined by a committee on special education either to require placement for sixty per centum or more of the school day in a special class, or to require home or hospital instruction for a period of more than sixty days, or to require special services or programs for more than sixty per centum of the school day shall be multiplied by one and seven-tenths; * NB Effective June 30, 2007 (2) The attendance of pupils who have been determined by a committee on special education to require placement for: (i) twenty per centum or more of the school week in a resource room or to require special services or programs including related services for twenty per centum or more of the school week, or (ii) in the case of pupils in grades seven through twelve, the equivalent of five periods per week, but not less than the equivalent of one hundred eighty minutes in a resource room or in other special services or programs including related services, or (iii) in the case of pupils in a multi-level middle school program, as defined by the commissioner, operating on a period basis, the equivalent of five periods per week, but not less than the equivalent of one hundred eighty minutes, in a resource room or in other special services or programs, including related services, or (iv) in the case of pupils in grades four through six in an elementary school operating on a period basis, the equivalent of five periods per week, but not less than the equivalent of one hundred eighty minutes in a resource room or in other special services or programs, including related services shall be multiplied by nine-tenths; (3) The attendance of pupils who have been determined by a committee on special education to require direct or indirect consultant teacher services, in accordance with regulations of the commissioner adopted for such purpose, shall be multiplied by nine-tenths; (4) For "weighted pupils with handicapping conditions" attributable to attendance in the nineteen hundred ninety-four--ninety-five school year, the attendance of pupils who have been determined by a committee on special education to require two or more sessions a week, consisting of at least thirty minutes each, of special instruction either in speech or in other special programs or services, including related services, shall be multiplied by thirteen-hundredths. * (5) Such attendance of pupils with handicapping conditions, as such term is defined in section forty-four hundred five of this chapter, shall be computed in accordance with regulations of the commissioner. No pupil may be counted more than once, except for pupils who are eligible for the weightings provided pursuant to clause one of this subparagraph and pursuant to subparagraph b-1 of this paragraph. * NB Effective until June 30, 2007 * (5) Such attendance of pupils with handicapping conditions, as such term is defined in section forty-four hundred five of this chapter, shall be computed in accordance with regulations of the commissioner. No pupil may be counted more than once. * NB Effective June 30, 2007 * b-1. "Integrated settings weighted pupils with handicapping conditions" shall be the product of the attendance in the year prior to the base year of pupils who have been determined by a committee on special education to require special services or programs for sixty per centum or more of the school day pursuant to clause one of subparagraph b of this paragraph and are provided special services or programs in the general education setting by qualified personnel, as defined in the regulations of the commissioner, multiplied by five tenths provided however, that such weighting shall be used solely for the purposes of calculation of an apportionment pursuant to this subdivision. * NB Repealed June 30, 2007 c. Expense per pupil for the purposes of this subdivision shall be not less than two thousand dollars and not more than the greater of seven thousand one hundred ten dollars or the statewide average of such expense per pupil. Such statewide average expense per pupil shall be computed and rounded to the nearest fifty dollars by the commissioner using the expense and pupils as estimated by school districts or as determined by the commissioner for use in determining the expense per pupil of the district pursuant to subdivision one of this section for all districts eligible for aid pursuant to this section. For the purposes of calculating such statewide expense per pupil, the data for the city school district of the city of New York shall be city-wide data. d. "Resident weighted pupils with handicapping conditions" shall mean weighted pupils with handicapping conditions minus the nonresident weighted pupils with handicapping conditions plus the resident weighted pupils with handicapping conditions to whom special services or programs are provided by another public school district. 2. Excess cost aid ratio. Such ratio shall be computed by subtracting from one the product obtained by multiplying fifty-one per centum by the combined wealth ratio. This aid ratio shall be expressed as a decimal carried to three places without rounding, but not less than twenty-five percent. 3. Excess cost aid per pupil shall equal the product of the excess cost aid ratio and the expense per pupil. 4. Excess cost aid shall equal the product of the excess cost aid per pupil and the resident weighted pupils with handicapping conditions. * 4-a. Integrated settings excess cost aid shall equal the product of the excess cost aid per pupil and the integrated settings weighted pupils with handicapping conditions computed pursuant to subparagraph b-1 of paragraph one of this subdivision. * NB Repealed June 30, 2007 5. A school district having a pupil with a handicapping condition for whom the cost, as approved by the commissioner, of appropriate special services or programs exceeds the lesser of ten thousand dollars or four times the expense per pupil without limits shall be entitled to an additional apportionment for each such child computed by multiplying the district's excess cost aid ratio by the amount by which such cost exceeds three times the district's expense per pupil without limits. 6. a. For aid payable in the nineteen hundred ninety-nine--two thousand and two thousand--two thousand one school years, any school district may receive the aid computed under paragraphs four, five and seven of this subdivision in the current year or the public excess cost aid base. b. For aid payable in the school year two thousand one--two thousand two and thereafter, any school district may receive the sum of: (1) the aid computed under paragraphs four, five and seven of this subdivision in the current year or the public excess cost aid base, and (2) the aid computed under paragraph four-a of this subdivision in the current year. 7. Declassification support services apportionment. a. Declassification support services shall mean services for teachers and pupils in the first year that a pupil moves from a special education program to a full-time regular education program. Services to pupils shall be provided on a regular basis and may include, but not be limited to psychological, social work, speech and language services and noncareer counseling services provided by qualified professional personnel as defined in regulations of the commissioner. Services for teachers of such pupils may include the assistance of teacher aides or consultation with appropriate personnel. When a committee on special education determines that a pupil no longer needs special education services and is ready for a full-time regular education program, such committee shall identify and recommend the appropriate declassification support services for the first year in the regular education program. b. In addition to any other apportionment under this section, school districts shall be eligible for a declassification support services apportionment in accordance with the provisions of this paragraph. The declassification support services apportionment shall be equal to fifty percent of the excess cost aid per pupil multiplied by the number of such pupils in the base year. c. Declassification support services shall not be eligible for an apportionment pursuant to section nineteen hundred fifty of this chapter. d. The commissioner shall adopt regulations to implement the provisions of this paragraph. 8. Notwithstanding section thirty-six hundred nine-a of this chapter, the apportionment provided for in this subdivision shall be paid pursuant to section thirty-six hundred nine-b of this chapter. 20. Shared services aid for school districts which are not components of a board of cooperative educational services supervisory district, including large city school districts. Commencing with aid payable in the nineteen hundred ninety-eight--ninety-nine school year, school districts which are not components of a board of cooperative educational services supervisory district, including city school districts of those cities having populations in excess of one hundred twenty-five thousand inhabitants that participate in, or provide, shared services for the purpose of instructional support service as authorized by subdivision eight-c of section nineteen hundred fifty of this chapter shall be eligible for an additional apportionment in accordance with the provisions of this paragraph. Within the amount appropriated for such purpose, such districts shall be entitled to an additional apportionment for their expenses incurred in the base year from their participation in or provision of such shared services, in an amount equal to the amount that would be payable for such expenses if the services were aidable shared services under subdivision five of section nineteen hundred fifty of this chapter; provided that in computing such aid for such city school districts the tax rate shall be determined in the manner prescribed in subparagraph seven of paragraph a of subdivision thirty-one-a of this section. Such apportionment shall be paid in accordance with section thirty-six hundred nine-a of this chapter. In the event the appropriation for purposes of this subdivision in any year is insufficient to pay all claims received pursuant to this subdivision, the commissioner shall determine the percentage of the total claims submitted that is represented by each district's claim on file with the commissioner at the time of creation of each data file or fiscal report required by subdivision twenty-one of section three hundred five of this chapter and shall pay such claims based on such prorated basis among all districts filing such claims until the appropriation is exhausted, provided that such prorated apportionment computed and payable as of September one of the school year immediately following the school year for which such aid is claimed shall be deemed final and not subject to change. For aid payable in the nineteen hundred ninety-eight--ninety-nine school year, the aid payable pursuant to this subdivision shall not exceed three million, five hundred thousand dollars ($3,500,000); for the nineteen hundred ninety-nine--two thousand school year the aid payable pursuant to this subdivision shall not exceed ten million dollars ($10,000,000); for the two thousand--two thousand one school year the aid payable pursuant to this subdivision shall not exceed fifteen million dollars ($15,000,000); and for the two thousand one--two thousand two school year and thereafter the aid payable pursuant to this subdivision shall not exceed twenty-five million dollars ($25,000,000). 21. Tax limitation aid. a. Definitions. (1) "Residential real property tax levy per pupil" shall mean the quotient of the district's residential real property tax levy divided by the district's total aidable pupil units for tax aid, as both terms are defined in subdivision sixteen of this section. (2) "Tax limitation aid ratio" shall mean the difference of one minus the product, carried to three decimal places without rounding, obtained by multiplying fifty per centum by the combined wealth ratio, but not less than zero. (3) "Total aidable pupil units for tax aid" for the purposes of this subdivision shall be equal to total aidable pupil units for tax aid as defined in subdivision sixteen of this section. (4) "Tax limitation aid per pupil" shall mean the product of (i) the tax limitation aid ratio and (ii) the product of four hundred seventy-four ten thousandths and the residential real property tax levy per pupil. b. Tax limitation aid. For aid payable in the nineteen hundred ninety-nine--two thousand school year and thereafter, in addition to any other apportionment pursuant to this chapter, a school district with (i) a pupil wealth ratio, as defined in subdivision one of this section, below one and one-half and (ii) a tax effort ratio, as defined in subdivision sixteen of this section, greater than thirty-nine thousandths shall be eligible for an apportionment under the provisions of this subdivision. Such apportionment shall equal the product of the total aidable pupil units for tax aid, as defined in subdivision sixteen of this section, and the tax limitation aid per pupil. c. (i) Based on data on file with the commissioner on January fifteenth of the nineteen hundred ninety-nine--two thousand school year, tax limitation aid shall be adjusted so that each eligible district will receive the same percent of the lesser of the statewide calculated total allocation or $25,000,000, as its tax limitation aid calculated pursuant to paragraph b of this subdivision bears to the statewide calculated total. Such prorated amounts shall be deemed final and seventy percent of such prorated amount shall be payable on or before March fifteenth of such school year and the remaining balance payable after April first of such school year. (ii) Based on data on file with the commissioner on January fifteenth of the two thousand--two thousand one school year, tax limitation aid shall be adjusted so that each eligible district will receive the same percent of the lesser of the statewide calculated total allocation or $30,200,000, as its tax limitation aid calculated pursuant to paragraph b of this subdivision bears to the statewide calculated total. Such prorated amounts shall be deemed final and seventy percent of such prorated amount shall be payable on or before March fifteenth of such school year and the remaining balance payable after April first of such school year. (iii) Based on data on file with the commissioner on January fifteenth of the two thousand one--two thousand two school year, tax limitation aid shall be adjusted so that each eligible district will receive the same percent of the lesser of the statewide calculated total allocation or $25,000,000, as its tax limitation aid calculated pursuant to paragraph b of this subdivision bears to the statewide calculated total. Such prorated amounts shall be deemed final and seventy percent of such prorated amount shall be payable on or before March fifteenth of such school year and the remaining balance payable after April first of such school year. (iv) Based on data on file with the commissioner on January fifteenth of the two thousand two--two thousand three school year, tax limitation aid shall be adjusted so that each eligible district will receive the same percent of the lesser of the statewide calculated total allocation or twenty-five million dollars, as its tax limitation aid calculated pursuant to paragraph b of this subdivision bears to the statewide calculated total. Such prorated amounts shall be deemed final and seventy percent of such prorated amount shall be payable on or before March fifteenth of such school year and the remaining balance payable after April first of such school year. (v) Based on data on file with the commissioner on January fifteenth of the two thousand four--two thousand five school year, tax limitation aid shall be adjusted so that each eligible district will receive the same percent of the lesser of the statewide calculated total allocation or $48,546,455, as its tax limitation aid calculated pursuant to paragraph b of this subdivision bears to the statewide calculated total. Such prorated amounts shall be deemed final and seventy percent of such prorated amount shall be payable on or before March fifteenth of such school year and the remaining balance payable after April first of such school year. (vi) Based on data on file with the commissioner on January fifteenth of the two thousand three--two thousand four school year, tax limitation aid amounts shall be deemed final and seventy percent of such amount shall be payable on or before March fifteenth of such school year and the remaining balance payable after April first of such school year. d. The commissioner is hereby authorized to promulgate regulations to effectuate the purposes of this subdivision. 22. Limited English Proficiency Aid. a. In addition to any other aid payable under the provisions of this section a school district shall be eligible to receive aid for conducting programs for pupils with limited English proficiency approved by the commissioner pursuant to the provisions of this chapter and in accordance with regulations adopted for such purpose. Such aid per pupil shall be computed by multiplying two hundred thirty thousandths by the result obtained when operating aid payable in the current year pursuant to paragraph b or c of subdivision twelve of this section is divided by the total aidable pupil units used to compute such aid, provided that for aid payable in the two thousand four--two thousand five school year, such aid per pupil shall be computed by multiplying two hundred ninety-two thousandths by the result obtained when operating aid which would have been payable in the current year pursuant to paragraph b or c of subdivision twelve of this section if aid were payable pursuant to such paragraphs in the current year is divided by the total aidable pupil units which would have been used to compute such aid. Such aid per pupil will be multiplied by the number of pupils participating in such program in the base year provided by the district either directly or by contract pursuant to section nineteen hundred fifty of this chapter, computed in accordance with such regulations. b. Notwithstanding the requirements of subdivision ten of this section, if the commissioner finds that a school district, which operated a limited English proficiency program in the base year, does not operate an approved program in the current year or operates a smaller approved program in the current year because there are no pupils or fewer pupils in the district needing such a program, the commissioner may determine that the school district shall be entitled to receive such aid without reduction. c. Programs for limited English proficient pupils shall not be aidable pursuant to section nineteen hundred fifty of this chapter. 23. Gifted and Talented Program Aid. In addition to any other aid computed under the provisions of this section, a school district which conducts a gifted and talented program in accordance with regulations of the commissioner adopted for such purpose shall be entitled to an amount computed by multiplying one hundred ninety-six dollars by three per centum by the adjusted average daily attendance of such district. 24. Employment Preparation Education Programs. a. School districts and boards of cooperative educational services (BOCES) providing approved programs shall be eligible for aid in accordance with the provisions of this subdivision for the attendance of persons twenty-one years of age or over who have not received a high school diploma or a high school equivalency diploma recognized by New York State who attend employment preparation education programs provided by such school districts or BOCES, which programs lead to a high school diploma or high school equivalency diploma as defined in regulations of the commissioner, even if such persons attend regular day school classes with permission of the board of education; provided that such programs are provided in accordance with a plan of service approved by the commissioner in accordance with the provisions of paragraph f of this subdivision. Such programs may operate between July first and June thirtieth of a school year. Whenever a person enrolls in a program approved pursuant to this subdivision offered by a BOCES or in a school district other than their district of residence, the program provider shall send a notice of such enrollment to the persons district of residence, and shall issue a new notice if such person moves from one district to another. In the event that the cost of a program approved and provided in accordance with the provisions of this subdivision exceeds all sources of funds, other than tax levy revenues, which are available to defray such expenses, the school district or BOCES providing such program shall determine an excess cost per contact hour provided during the base year, and then shall determine the local share of such excess costs for each school district whose residents were served by such program by multiplying such base year hours by the excess cost per contact hour, and such local share shall be a charge against each such district, payable within forty-five days. Notwithstanding the provisions of section nineteen hundred fifty of this chapter, a BOCES shall be authorized to provide a program pursuant to this subdivision in the same manner as a school district. * a-1. Notwithstanding the provisions of paragraph a of this subdivision, for aid payable in the school years two thousand--two thousand one through two thousand five--two thousand six, the commissioner may set aside an amount not to exceed two million five hundred thousand dollars from the funds appropriated for purposes of this subdivision for the purpose of serving persons twenty-one years of age or older who have not been enrolled in any school for the preceding school year, including persons who have received a high school diploma or high school equivalency diploma but fail to demonstrate basic educational competencies as defined in regulation by the commissioner, when measured by accepted standardized tests, and who shall be eligible to attend employment preparation education programs operated pursuant to this subdivision. * NB Effective until July 1, 2006 * a-1. Notwithstanding the provisions of paragraph a of this subdivision, for aid payable in the school years two thousand--two thousand one through two thousand six--two thousand seven, the commissioner may set aside an amount not to exceed two million five hundred thousand dollars from the funds appropriated for purposes of this subdivision for the purpose of serving persons twenty-one years of age or older who have not been enrolled in any school for the preceding school year, including persons who have received a high school diploma or high school equivalency diploma but fail to demonstrate basic educational competencies as defined in regulation by the commissioner, when measured by accepted standardized tests, and who shall be eligible to attend employment preparation education programs operated pursuant to this subdivision. * NB Effective July 1, 2006 b. Employment preparation education hours. For the purpose of computing an apportionment under the provisions of this subdivision, the employment preparation education hours shall be the total hours of instruction given by a teacher to all students enrolled in such approved programs between July first and June thirtieth of the current year. For nontraditional modes of instruction, the commissioner may establish methods of determining contact hours of instruction to be counted for state aid purposes in accordance with regulations adopted for such purpose. c. Employment preparation education aid ceiling. The employment preparation education aid ceiling for the purposes of this subdivision shall be the statewide average expense per pupil, as defined in subdivision nineteen of this section for aid payable in the current year, divided by one thousand. Such result shall be computed to two decimals without rounding. d. Employment preparation education aid ratio. The employment preparation education aid ratio for the purposes of this subdivision shall be determined by subtracting from one the product of the pupil wealth ratio and forty per centum. The aid ratio shall be expressed as a decimal to three places without rounding but shall not be less than forty per centum. In the case of a BOCES, such aid ratio shall be determined by computing a pupil wealth ratio for the BOCES using the aggregate actual valuation and total wealth pupil units for all component districts of such BOCES, but shall not be less than the greater of forty per centum or the product of eighty-five per centum and the highest such aid ratio determined for a component school district of such BOCES. * e. Employment preparation education apportionment. In addition to any other aid payable under this section, the apportionment pursuant to this subdivision shall be the product obtained when the employment preparation education hours are multiplied by the aid per contact hour which shall equal the product of the employment preparation program aid ceiling and the employment preparation education aid ratio computed to two decimals, rounded, as calculated based on data on file with the commissioner on May fifteenth of the base year. Notwithstanding the provisions of section thirty-six hundred nine-a of this part, the payment of such apportionment shall be based upon reports required by the commissioner for the periods ending December thirty-first, and June thirtieth of each school year; payments for the first reporting period shall be made after April first, based on claims on file by March first, provided that the total of all such payments shall not exceed twenty-five percent of the amount for such school year, with the approved amount of such claims reduced on a pro rata basis if necessary; the remainder of any payments due for the first period plus any payments due for the rest of the school year shall be paid after October first, based on claims on file by September fifteenth, provided that the total of such payments shall not exceed the total amount of ninety-six million one hundred eighty thousand dollars ($96,180,000) for such school year, with the approved amount of such claims reduced on a pro rata basis if necessary, provided, however, that for the nineteen hundred ninety-five--ninety-six school year such total amount shall not exceed ninety-four million one hundred eighty thousand dollars ($94,180,000), and provided further that for the two thousand three--two thousand four school year such total amount shall not exceed eighty-four million dollars ($84,000,000) and further provided that the total of such payment for services provided to persons who received a high school diploma or a high school equivalency diploma recognized by New York state shall not exceed the total amount set aside for such purpose pursuant to paragraph a-one of this subdivision in any such school year, with the approved amount of such claims reduced on a pro rata basis if necessary, and provided further that for the two thousand four--two thousand five school year such total amount shall not exceed ninety million dollars ($90,000,000) with the approved amount of such claims reduced on a pro rata basis if necessary, and provided further that for the two thousand five--two thousand six school year such total amount shall not exceed ninety-six million dollars ($96,000,000) with the approved amount of such claims reduced on a pro rata basis if necessary; and aid paid pursuant to this paragraph shall not be included in the computation of the district expenditure need as defined in such section thirty-six hundred nine-a of this part. The employment preparation education apportionment for the city school district of the city of New York shall be computed only for the city as a whole. * NB Effective until July 1, 2006 * e. Employment preparation education apportionment. In addition to any other aid payable under this section, the apportionment pursuant to this subdivision shall be the product obtained when the employment preparation education hours are multiplied by the aid per contact hour which shall equal the product of the employment preparation program aid ceiling and the employment preparation education aid ratio computed to two decimals, rounded, as calculated based on data on file with the commissioner on May fifteenth of the base year. Notwithstanding the provisions of section thirty-six hundred nine-a of this part, the payment of such apportionment shall be based upon reports required by the commissioner for the periods ending December thirty-first, and June thirtieth of each school year; payments for the first reporting period shall be made after April first, based on claims on file by March first, provided that the total of all such payments shall not exceed twenty-five percent of the amount for such school year, with the approved amount of such claims reduced on a pro rata basis if necessary; the remainder of any payments due for the first period plus any payments due for the rest of the school year shall be paid after October first, based on claims on file by September fifteenth, provided that the total of such payments shall not exceed the total amount of ninety-six million one hundred eighty thousand dollars ($96,180,000) for such school year, with the approved amount of such claims reduced on a pro rata basis if necessary, provided, however, that for the nineteen hundred ninety-five--ninety-six school year such total amount shall not exceed ninety-four million one hundred eighty thousand dollars ($94,180,000), and provided further that for the two thousand three--two thousand four school year such total amount shall not exceed eighty-four million dollars ($84,000,000) and further provided that the total of such payment for services provided to persons who received a high school diploma or a high school equivalency diploma recognized by New York state shall not exceed the total amount set aside for such purpose pursuant to paragraph a-one of this subdivision in any such school year, with the approved amount of such claims reduced on a pro rata basis if necessary, and provided further that for the two thousand four--two thousand five school year such total amount shall not exceed ninety million dollars ($90,000,000) with the approved amount of such claims reduced on a pro rata basis if necessary, and provided further that for the two thousand five--two thousand six and two thousand six--two thousand seven school years such total amount shall not exceed ninety-six million dollars ($96,000,000) with the approved amount of such claims reduced on a pro rata basis if necessary; and aid paid pursuant to this paragraph shall not be included in the computation of the district expenditure need as defined in such section thirty-six hundred nine-a of this part. The employment preparation education apportionment for the city school district of the city of New York shall be computed only for the city as a whole. * NB Effective July 1, 2006 f. Approved plan of service and program evaluation. All school districts and BOCES desiring to operate an aidable program pursuant to this subdivision shall complete a comprehensive plan of service application, including a budget by program component, together with an evaluation of the effectiveness of program components offered during the most recent July first through March thirtieth, if any. Such evaluation and plan shall be in a form prescribed by the commissioner and shall be submitted not later than forty-five days after the provisions of this paragraph shall have become law, and not later than May fifteenth in subsequent school years. Within forty-five days of such deadline, and upon evaluation of such applications, the commissioner shall notify school districts and BOCES of those portions of such plan of service that will be aidable in the school year ahead after making a determination that approval of such programs will assure maximum effectiveness, geographic availability and lack of duplication of such programs, support for educational initiatives, and compliance with required program and fiscal reporting requirements. No aid shall be payable pursuant to this subdivision unless the program is approved by the commissioner. g. No school district may receive under the provisions of this subdivision an amount which when added to all other state and federal aid received by such school district for the purposes of this subdivision, including tuition paid to the school district for such program, exceeds the entire cost of such program in that year. Notwithstanding any other provision of this section to the contrary, in the event that the total revenue received exceeds the entire cost of such program, any state aid payable to the district in the following year shall be reduced in the amount of such excess. h. Attendance of students in such approved programs shall not be included in any other attendance counts of this section and shall not generate aid under any other provision of this section or under section nineteen hundred fifty of this chapter. 26. Instructional computer hardware and technology equipment apportionment. a. In addition to any other apportionment under this section, a school district shall be eligible for an apportionment under the provisions of this subdivision for approved expenses for (i) the purchase or lease of micro and/or mini computer equipment or terminals for instructional purposes or (ii) technology equipment, as defined in paragraph b of this subdivision, used for instructional purposes pursuant to a plan developed by the district which demonstrates to the satisfaction of the commissioner that the instructional computer hardware needs of the district's students have been adequately met, or (iii) for the repair of such equipment and training and staff development for instructional purposes as provided hereinafter. The apportionment shall equal the lesser of such approved expense or, the product of (i) the technology factor, (ii) the total aidable pupil units for operating aid, and (iii) the building aid ratio. For aid payable in the nineteen hundred ninety-seven--ninety-eight and nineteen hundred ninety-eight--ninety-nine school years, the technology factor shall be ten dollars and sixty-one cents; for aid payable in the nineteen hundred ninety-nine--two thousand school year, the technology factor shall be twelve dollars and seventy cents; for aid payable in the two thousand--two thousand one school year, the technology factor shall be nineteen dollars and twenty-five cents; for aid payable in the two thousand one--two thousand two school year, the technology factor shall be thirty-two dollars and thirty-five cents; for aid payable in the two thousand two--two thousand three school year and thereafter, the technology factor shall be nineteen dollars and twenty-five cents. A school district may use up to twenty percent of the product of (i) the technology factor, (ii) the total aidable pupil units for operating aid, and (iii) the building aid ratio for the repair of instructional computer hardware and technology equipment and training and staff development for instructional purposes pursuant to a plan submitted to the commissioner. b. "Technology equipment", for the purposes of this article, shall mean equipment with a useful life used in conjunction with or in support of educational programs including but not limited to video, solar energy, robotic, satellite, laser and such other equipment as the commissioner shall approve provided that expenses for the purchase or lease of such equipment shall not be eligible for aid under any other provisions of this chapter. 26-a. Aid for instructional computer technology expenses. a. Commencing with aid payable in the nineteen hundred ninety-eight--ninety-nine school year, the commissioner is hereby authorized to apportion to any school district aid pursuant to this subdivision for its approved expenditures, in excess of base year aid received pursuant to subdivision twenty-six of this section, for the purchase, lease-purchase and/or installation of instructional computer technology equipment, including original purchase, lease-purchase and/or installation of hardware and vendor-installed software for deployment in classrooms or school libraries; or for the costs of an extended maintenance contract for instructional computer technology equipment or network systems for a term not to exceed the applicable period of probable usefulness, to the extent such costs would be allowable under a state contract; provided, however, no expenses eligible for aid pursuant to subdivision six of this section shall be aidable pursuant to this subdivision, and provided further, no expenses aided pursuant to this subdivision shall be eligible for aid pursuant to subdivision twenty-six of this section or section nineteen hundred fifty of this chapter. b. Aid pursuant to this subdivision shall equal the product of the district's instructional computer technology aid ratio and approved base year expenditures for capital outlays and/or current year expenditures for debt service and/or current year expenditures for lease purchase for acquisition and installation of instructional computer technology equipment. Notwithstanding any other provision of law to the contrary, debt service expenses or obligations due under a lease-purchase agreement executed in a prior year for instructional computer technology equipment pursuant to this subdivision shall be ordinary contingent expenses. c. The district's instructional computer technology aid ratio shall be the greater of (i) the district's building aid ratio selected for use in the current year pursuant to clause (b) of subparagraph two of paragraph c of subdivision six of this section; or (ii) the district's millage ratio equal to one minus the quotient expressed as a decimal to three places without rounding of eight mills divided by the tax rate of the local district computed upon the actual valuation of taxable property, as determined pursuant to subdivision one of this section, expressed in mills to the nearest tenth as determined by the commissioner, provided, however, that for a city school district in a city having a population in excess of one hundred twenty-five thousand inhabitants the tax rate shall be computed in the manner prescribed in subparagraph seven of paragraph a of subdivision thirty-one-a of this section, and provided that for a school district which is included within a central high school district or for a central high school district, such millage ratio shall equal one minus the quotient expressed as a decimal to three places without rounding of three mills divided by the tax rates, expressed in mills to the nearest tenth, of such districts, as determined by the commissioner; or (iii) thirty-six hundredths. For the purposes of this paragraph, the tax rate for the central high school district shall be the amount of tax raised by the common and union free school districts included within the central high school district for the support of the central high school district divided by the actual valuation of the central high school district. The tax rate for each common or union free school district shall be the amount raised for the support of such common or union free school district, exclusive of the amount raised for the central high school district, divided by such actual valuation of such common or union free school district. d. To be eligible for aid pursuant to this subdivision, school districts shall develop and maintain a plan for the use of the instructional computer technology equipment funded pursuant this section, which shall be in a form prescribed by the commissioner and shall include but shall not be limited to provision for maintenance and repair of equipment and the provision of staff development in the use of such technology. In addition, such plan may provide for the district's participation in the universal service discount program pursuant to the federal telecommunications act of nineteen hundred ninety-six, and the district's participation in the federal technology literacy challenge program, where such federal technology programs are available. In prescribing the format for such plans, the commissioner shall assure that to the extent possible, districts will be able to develop a single plan that meets the requirements of this subdivision and such federal technology programs. In addition, funds apportioned pursuant to this subdivision shall be used in a manner consistent with the district's long-range facilities plan and building-level, district-wide, and where applicable, regional instructional and technology plans. e. Expenses for instructional computer technology equipment and software provided through a board of cooperative educational services pursuant to a multi-year contract entered pursuant to section nineteen hundred fifty of this chapter shall continue to be aided under subdivision five of section nineteen hundred fifty of this chapter for the duration of such contract, and shall be paid in accordance with applicable provisions of section nineteen hundred fifty of this chapter and section thirty-six hundred nine-d of this article. f. In the event the appropriation for purposes of this subdivision in any year is insufficient to pay all claims received pursuant to this subdivision, the commissioner shall determine the percentage of the total claims submitted that is represented by each district's claim on file with the commissioner at the time of creation of each data file or fiscal report required by subdivision twenty-one of section three hundred five of this chapter and shall pay such claims based on such prorated basis among all districts filing such claims until the appropriation is exhausted, provided that such prorated apportionment computed and payable as of September one of the school year immediately following the school year for which such aid is claimed shall be deemed final and not subject to change. For aid payable in the nineteen hundred ninety-eight--ninety-nine school year, the aid payable pursuant to this subdivision shall not exceed nine million dollars ($9,000,000); for the nineteen hundred ninety-nine--two thousand school year the aid payable pursuant to this subdivision shall not exceed twenty-five million dollars ($25,000,000); for the two thousand--two thousand one school year the aid payable pursuant to this subdivision shall not exceed fifty-seven million dollars ($57,000,000); and for the two thousand one--two thousand two school year and thereafter the aid payable pursuant to this subdivision shall not exceed ninety-one million dollars ($91,000,000). 31-a. Aid for small city school districts. a. Definitions. (1) "Operating budget" shall mean the lesser of (i) the total budget of the school district or (ii) the sum of the base year total general fund expenses and the allowable increase as determined by the commissioner. The allowable increase shall be equal to the product of the base year total general fund expenses and the statewide sixty-fifth percentile percentage increase in total general fund expenses with adjustments as determined by the commissioner. (2) An "eligible school district", for purposes of this subdivision, shall mean any school district coterminous with or partly within or wholly within a city having a population of less than one hundred twenty-five thousand inhabitants according to the most recent available federal census (hereinafter referred to as a city school district), which received an apportionment pursuant to this subdivision or subdivision thirty-one-a of section thirty-six hundred one-a of this article in the base year. (3) "State share of district expenditures" shall mean the quotient computed to four decimals without rounding resulting when the apportionment pursuant to this subdivision or subdivision thirty-one-a of section thirty-six hundred one-a of this article in the base year is divided by the total general fund expense of the school district for such year provided, however, that such base year total general fund expense shall be adjusted in accordance with regulations adopted for such purpose for any year in which the definition of total general fund expense for the current year has been changed. (4) "Increase in aid" shall mean the positive remainder resulting when the total state aid received by the school district in the base year is subtracted from total state aid payable to the school district in the current year. (5) The "full value millage deduct" shall mean the actual valuation, as defined in subdivision one of this section, divided by one thousand and multiplied by the district's millage deduct factor and such result shall be expressed as a whole number without rounding. The millage deduct factor shall be computed by dividing the statewide average tax rate by the district's tax rate which result shall be computed to five decimal places without rounding and shall be multiplied by forty cents which result shall be computed to three decimal places without rounding. (6) The "statewide average tax rate" shall mean the number computed to five decimals without rounding by the commissioner using the revenues or equivalent thereof as estimated by school districts or as determined by the commissioner for use in determining the tax rate pursuant to this subdivision and using the latest single year actual valuation computed under paragraph c of subdivision one of this section for all districts eligible for aid pursuant to this section except central high school districts. For the purposes of calculating such statewide average tax rate, the data for the city school district of the city of New York shall be citywide data. (7) "Tax rate" for the purposes of this subdivision shall be computed by dividing a school district's total revenues from real property and non-property tax levies for the base year levied for school purposes exclusive of library purposes plus any payments in lieu of taxes received pursuant to section four hundred eighty-five of the real property tax law and exclusive of any balances in excess of six percent of general fund expense remaining in the general fund of the district at the end of the base year, by such district's actual valuation as defined in subdivision one of this section including any actual valuation equivalent of payments in lieu of taxes determined pursuant to section four hundred eighty-five of the real property tax law, provided, however, that in the instance of a fiscally dependent city school district, the tax rate shall be computed by dividing (i) such district's total general fund expenditures, plus interfund transfers outgoing from the general fund, and plus general fund reserve expenditures, less any and all general fund nontax revenue of such city school district which has been paid and identified by an original payer as being specifically on behalf of such city school district, and less any and all nontax revenue of the city upon which such city school district is fiscally dependent which has been paid and identified by an original payer as being specifically on behalf of such city school district but which has not been identified as revenue of such city school district, and less any and all other general fund revenues of such city school district which are determined by the commissioner to be nontax revenue of the city upon which such city school district is fiscally dependent, by (ii) such district's actual valuation as defined in subdivision one of this section. Revenues raised by a school district in support of a central high school district shall be included in the revenue of the district raising such revenue, and no local revenue shall be attributed to such central high school districts. Such tax rate shall be computed to five decimals without rounding and shall be multiplied by one thousand to be expressed in mills. (8) "Small cities aid base" shall mean the save harmless percent multiplied by the apportionment received by such school district pursuant to this subdivision or subdivision thirty-one-a of section thirty-six hundred one-a of this article in the base year. (9) "Save harmless percent" shall mean the positive remainder resulting when the product of two multiplied by the total number of years on save harmless, pursuant to this subdivision, up to and including the base year, is subtracted from ninety-eight percent. (10) The term "on save harmless" shall apply to the selection of aid pursuant to this paragraph or its predecessor, as determined by the commissioner, equal to the product of the save harmless percent and the applicable base year apportionment. b. Maximum small city transition aid shall equal the product of the state share of district expenditures multiplied by ninety-eight percent multiplied by the district's operating budget as defined in this subdivision. c. Each eligible school district shall calculate an amount equal to the positive remainder of (i) the product of the state share multiplied by the positive remainder resulting when the increase in aid is subtracted from the district's operating budget minus (ii) the full value millage deduct. d. (1) Except as provided herein, in addition to any other moneys made available under the provisions of this chapter, each city school district shall be apportioned an amount equal to the greater of the small cities aid base or the amount calculated pursuant to paragraph c of this subdivision but, in either case, not greater than the maximum small city transition aid computed pursuant to paragraph b of this subdivision; provided however, if the amount calculated pursuant to this paragraph in any year is less than five thousand dollars, the school district shall be eligible only for the amount calculated under paragraph c of this subdivision. (2) The small cities aid base for aid payable in the nineteen hundred ninety-three--ninety-four school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-six; the small cities aid base for aid payable in the nineteen hundred ninety-four--ninety-five school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-eight; the small cities aid base for aid payable in the nineteen hundred ninety-five--ninety-six school year, and for aid calculations for subsequent school years based on aid payable in such school year, shall be deemed final and not subject to change on or after July first, nineteen hundred ninety-nine; the small cities aid base for aid payable in the nineteen hundred ninety-six--ninety-seven and nineteen hundred ninety-seven--ninety-eight school years, and for aid calculations for subsequent school years based on aid payable in such school years, shall be deemed final and not subject to change on or after July first, two thousand; and the small cities aid base for aid payable in the nineteen hundred ninety-eight--ninety-nine school year and thereafter, and for aid calculations for subsequent school years based on aid payable in such school years, shall be deemed final and not subject to change on or after July first of the school year following the last school year in which the commissioner may last accept and certify for payment any additional claim for such school year pursuant to paragraph a of subdivision five of section thirty-six hundred four of this article. f. (1) Such apportionment shall upon conclusion of the school year for which the apportionment was made, be audited against the actual expenditures for such school year and the actual revenues received by the district to support its general fund expenses for such school year taking into account the allowable increase. Such apportionment shall be adjusted according to the findings of the audit. Any overpayment to the district pursuant to this subdivision shall be recovered from the district's state aid payable in the following school year. (2) For the purposes of subparagraph one of this paragraph, notwithstanding any other provision of law, actual expenditures of the Lackawanna city school district for the nineteen hundred eighty-seven--eighty-eight school year shall equal the sum of the total general fund expenditures, interfund transfers and reserve expenditures of such school district plus three hundred thousand dollars of monies transferred to the capital reserve of such school district during the nineteen hundred eighty-seven--eighty-eight school year which were later used to pay refunds of real property taxes to the Bethlehem Steel Corporation in the nineteen hundred eighty-nine--ninety school year, in which year such expenses shall not be included for the purposes of this subdivision. (3) For the purposes of subparagraph one of this paragraph, notwithstanding any other provision of law, actual expenditures of the Lackawanna city school district for the nineteen hundred eighty-eight--eighty-nine school year shall equal the sum of the total general fund expenditures, interfund transfers and reserve expenditures of such school district plus three hundred thousand dollars of undesignated fund balance placed in the tax certiorari reserve of such school district during the nineteen hundred eighty-eight--eighty-nine school year which were later used to pay refunds of real property taxes to the Bethlehem Steel Corporation in the nineteen hundred eighty-nine--ninety school year, in which year such expenses shall not be included for the purposes of this subdivision. * g. Notwithstanding any inconsistent provisions of this subdivision, in a school year in which the maximum increase in the aids subject to transition pursuant to subdivision eighteen of this section is equal to zero and for aid payable in the nineteen hundred ninety-six--ninety-seven school year, the number of years on save harmless shall not increase and aid payable in the current year shall equal aid payable in the base year. Notwithstanding the provisions of this section or of section thirty-four of part B of chapter one hundred forty-nine of the laws of two thousand one, for aid payable during the two thousand four--two thousand five school year, aid payable pursuant to this section shall equal that payable pursuant to this section in the base year. * NB Effective until July 1, 2006 * g. Notwithstanding any inconsistent provisions of this subdivision, in a school year in which the maximum increase in the aids subject to transition pursuant to subdivision eighteen of this section is equal to zero and for aid payable in the nineteen hundred ninety-six--ninety-seven school year, the number of years on save harmless shall not increase and aid payable in the current year shall equal aid payable in the base year. Notwithstanding the provisions of this section or of section thirty-four of part B of chapter one hundred forty-nine of the laws of two thousand one, for aid payable during the two thousand six--two thousand seven school year, aid payable pursuant to this section shall equal that payable pursuant to this section in the base year. * NB Effective July 1, 2006 32. Educationally related support services apportionment (ERSSA). 1. Eligible pupils are those pupils as defined by the commissioner who may benefit from instruction in a regular education program with appropriate support services, including those (a) who are experiencing difficulty in maintaining their placement in a program of regular education as reflected by such pupil's educational performance; (b) who are under suspension for more than one day pursuant to section thirty-two hundred fourteen of this chapter or are transferring to the school from a division for youth facility, who with the provision of services would be able to maintain their placement in a program of regular education; (c) with speech impairments of a severity that does not adversely affect the student's educational performance but does present a barrier to communication, as defined in regulations of the commissioner; and (d) who are qualified handicapped persons as defined in the federal rehabilitation act of nineteen hundred seventy-three, as amended, or who are students with disabilities as defined in section forty-four hundred one of this chapter, and whose attendance in the public schools of the district does not generate excess cost aid pursuant to subdivision nineteen of this section. Such pupils may receive educationally related support services in accordance with the provisions of section forty-four hundred one-a of this chapter or upon the referral of the building administrator, in consultation with appropriate personnel, or, in the case of a student with a disability, in accordance with the recommendations of the committee on special education, or, in the case of a qualified handicapped person not identified as a student with a disability, upon recommendation of a group of persons, including persons knowledgeable about the child, the meaning of the evaluation data and the placement options. Such educationally related support services shall be provided on a regular basis and shall be limited to psychological, social work, speech and language improvement services, curriculum and instructional modification, direct student support team services and non-career counseling services and special instruction, either in speech or in other special programs and services, including related services but excluding transportation and transition services, for which the attendance of the pupil does not generate excess cost aid pursuant to subparagraph one, two, or three of paragraph b of subdivision nineteen of this section, provided by qualified professional personnel as defined in regulations. School districts shall, as much as possible, provide linkages to other school communities and local human service providers, if available, in order to provide services for students who are receiving educationally related support services and who would otherwise be eligible to continue to receive such services on the last day school is in session. 2. Expenditures for educationally related support services shall be separate and distinct from expenditures pursuant to paragraph f of subdivision twelve and subdivision nineteen, both of this section and shall not generate aid under section nineteen hundred fifty of this chapter. 3. The educationally related support services apportionment. a. Maximum apportionment shall be the sum of (i) the product of three hundred sixty-five dollars, the state sharing ratio for comprehensive operating aid, but not less than twenty-five hundredths, and nine percent of the total aidable pupil units for operating aid in the current school year and (ii) the product of six hundred thirty-five dollars, the excess cost aid ratio defined in paragraph two of subdivision nineteen of this section, and the extraordinary needs adjusted pupil count. The extraordinary needs adjusted pupil count shall be the product of (i) fifteen percent of the total aidable pupil units for operating aid in the current school year and (ii) the amount by which the quotient of the extraordinary needs count divided by the base year public school enrollment exceeds sixty percent. In the city school district of the city of New York, all computations shall be on a city-wide basis. For the purposes of this subparagraph for aid payable in the two thousand two--two thousand three school year, total aidable pupil units for operating aid and the state sharing ratio for comprehensive operating aid shall be calculated as if comprehensive operating aid were to be calculated pursuant to clause (i) of paragraph a of subdivision twelve of this section in the current year. b. Provision of services requirement. Any school district receiving an apportionment pursuant to this subdivision shall provide for the use of such apportionment in the manner determined by the commissioner to be the most educationally advantageous for such pupils; such regulations shall also include annual district reporting requirements, including a report of the total hours of educationally related support services provided from general fund appropriations of the school district during the base year. If the total hours of educationally related support services provided from general fund appropriations of the school district during the base year are less than the total hours of such services provided during the year prior to the base year, the apportionment payable in the current year pursuant to this subdivision shall equal the product of the maximum apportionment computed pursuant to subparagraph a of this paragraph and the quotient of the total hours of educationally related support services provided from general fund appropriations of the school district during the base year divided by the total hours of such services provided during the year prior to the base year. If the total hours of educationally related support services provided from general fund appropriations of the school district during the base year are equal to or greater than the total hours of such services provided during the year prior to the base year, the apportionment payable in the current year pursuant to this subdivision shall equal the maximum apportionment computed pursuant to subparagraph a of this paragraph. Aid payable to a school district pursuant to this subdivision in the nineteen hundred ninety-nine--two thousand school year and thereafter shall be used to supplement, and not to supplant, any other funds expended for these purposes. School districts may contract with boards of cooperative educational services to provide such services. c. Services provided pursuant to this subdivision shall not be eligible for an apportionment pursuant to section nineteen hundred fifty of this chapter. 4. By February first of the current year, the commissioner shall cause to be prepared a report on the utilization and effectiveness of educationally related support services in school districts receiving aid under this subdivision which shall include but not be limited to a section on the utilization and effectiveness of all ERSSA services provided pursuant to this subdivision and the effects on the special education referral and classification process and shall submit such report along with appropriate recommendations to the legislature. 35. Youth incarcerated in county correctional facilities apportionment. a. In addition to any other apportionment under this section, a school district shall be eligible for an apportionment for current year educational services provided between July first and June thirtieth to youth incarcerated in correctional facilities maintained by a county or the city of New York or in a youth shelter, as defined in paragraph f of subdivision seven of section thirty-two hundred two of this chapter, pursuant to subdivision seven of section thirty-two hundred two of this chapter. Such apportionment shall not exceed the sum of the following: (i) for programs which operate between September first and June thirtieth, the product of the district's expense per pupil and the number of pupils in full-time equivalent attendance as defined in regulations of the commissioner multiplied by one hundred twenty-five per centum plus (ii) for programs which operate between July first and June thirtieth, the product of the district's expense per pupil and the number of pupils in full-time equivalent attendance, multiplied by one hundred fifty per centum. Such apportionment shall be in accordance with regulations promulgated by the commissioner and approved by the director of the budget and shall be the lesser of the amount computed pursuant to this paragraph or the actual amount expended by the district for such approved educational services and approved administrative costs as reported to the commissioner provided, however, that the minimum allocation in any school year for a school district providing educational services to such children shall be fifteen thousand dollars. The educational costs for these children shall not be otherwise aidable or reimbursable under any provision of law; provided, however, that a city school district which operates an academy or an alternative high school at such a facility, may elect to receive applicable aid pursuant to other provisions of this section in lieu of any aid under this subdivision. For aid payable in the nineteen hundred ninety-four--ninety-five school year and earlier, expense per pupil for purposes of this subdivision shall mean approved operating expense for the base year divided by the total aidable pupil units pursuant to subdivision eight of this section for the base year, and for aid payable in the nineteen hundred ninety-five--ninety-six school year, expense per pupil for the purposes of this subdivision shall mean approved operating expense for the year prior to the base year divided by the total aidable pupil units pursuant to subdivision eight of this section for the year prior to the base year. b. Notwithstanding the provisions of section thirty-six hundred nine-a of this chapter, the payment of such apportionment shall be based on reports required by the commissioner for the periods ending November thirtieth, March thirty-first and June thirtieth of each school year. For the city school district of the city of New York, computations made pursuant to this subdivision shall be computed on a city-wide basis. d. The commissioner shall adopt regulations to implement the provisions of this subdivision. 36. Voluntary interdistrict urban-suburban transfer program aid. a. A school district which accepts pupils from another school district in accordance with a voluntary interdistrict urban-suburban transfer program designed to reduce racial isolation which is approved by the commissioner in accordance with regulations adopted by him for such purpose shall be eligible for aid pursuant to this subdivision. b. Definitions. (1) "Transfer pupil count" shall mean the public school district enrollment in the current year through such program. (2) "Increase in aid" shall mean the positive remainder resulting when the comprehensive operating aids base is subtracted from the current year aid for limiting as defined in subparagraph one of paragraph a of subdivision eighteen of this section, provided, however, that for the purposes of calculating an apportionment pursuant to this subdivision for the two thousand three--two thousand four, two thousand four--two thousand five and two thousand six--two thousand seven school years, "increase in aid" shall mean the positive remainder resulting when an amount equal to the districts' comprehensive operating aids base as if such comprehensive operating aids base had been calculated for such year pursuant to paragraph j of subdivision one of this section is subtracted from the current year aid for limiting as defined in subparagraph one of paragraph a of subdivision eighteen of this section. (3) "Aid paid per pupil" shall mean the aid computed in the current year pursuant to subdivisions twelve and eighteen of this section divided by the total aidable pupil units for operating aid, computed pursuant to subdivision eight of this section. (4) "Formula pupil margin" shall mean the increase in aid divided by aid paid per pupil. (5) "Excess transfer pupils" shall mean the positive remainder resulting when the formula pupil margin is subtracted from the transfer pupil count. (6) "Per pupil aid differential" shall mean the positive remainder resulting when the aid paid per pupil for such school district is subtracted from the aid paid per pupil for the transfer pupil's district of residence. c. In addition to any other aid computed under this section, such school district shall be eligible to receive, for each excess transfer pupil, an amount equal to the greater of the amount per pupil computed pursuant to paragraph b of subdivision twelve of this section for such district or the grant per pupil pursuant to paragraph c of such subdivision. d. For the purposes of computing transportation aid pursuant to subdivision seven of this section, the approved cost of the transportation of pupils in a voluntary interdistrict transfer program approved by the commissioner shall be used in computing approved transportation expense. e. In addition to any other aid computed under this section, such school district shall be eligible to receive an amount equal to the per pupil aid differential multiplied by the transfer pupil count. f. Notwithstanding any inconsistent provisions of this subdivision, for aid payable in two thousand two--two thousand three a school district eligible for an apportionment under this subdivision shall be eligible to receive aid pursuant to this section in an amount equal to the amount that the district would have received if they operated a voluntary interdistrict transfer program in the two thousand--two thousand one school year. 37. Grants for early grade class size reduction. Commencing with aid payable in the nineteen hundred ninety-nine--two thousand school year, school districts shall be eligible for class size reduction grants payable pursuant to this section for the purpose of reducing class size in grades kindergarten, one, two and three pursuant to the provisions of this section and in accordance with regulations adopted by the commissioner for such purpose. a. Definitions. As used in this subdivision: (i) "Eligible school district" means a school district eligible for aid pursuant to this section which had an average class size greater than twenty in kindergarten and common branch classes for the nineteen hundred ninety-three--ninety-four school year, as reported by the commissioner in the school district fiscal profile report released in May, nineteen hundred ninety-six, and meets the threshold need criterion for a grant allowance in the current year. (ii) "Extraordinary needs percent" means the quotient of the extraordinary needs count divided by the school district's base year enrollment. (iii) "Meets the threshold need criterion for a grant allowance" means exceeding the minimum extraordinary needs percent and is less than the maximum combined wealth ratio required for a grant for new classrooms in the current grant year. For grants for the nineteen hundred ninety-nine--two thousand school year, the minimum extraordinary needs percent shall be forty percent and the maximum combined wealth ratio shall be one and one-half; for grants for the two thousand--two thousand one school year, the minimum extraordinary needs percent shall be twenty-four and eight-tenths percent and the maximum combined wealth ratio shall be two; for grants for the two thousand one--two thousand two school year and thereafter, the minimum extraordinary needs percent shall be nine and four-tenths percent and the maximum combined wealth ratio shall be two and one-half. b. District plan. The trustees or board of education of an eligible school district seeking to receive funding pursuant to this section for early grade class reduction shall adopt and submit a written plan to the department on or before February first, nineteen hundred ninety-nine or, at the option of the trustees or board of education, on or before March first during the school year immediately preceding the school year in which funds provided pursuant to this section will first become available to the school district, as determined by the commissioner which: (i) details how such district will reduce class size in common branch classrooms in grades kindergarten, one, two and three to an average of not more than twenty students per class, to the extent the funds available pursuant to this subdivision are sufficient to meet such goal; (ii) is school-specific; (iii) is grade-specific; (iv) specifies the number of new classrooms to be added and the number of new classroom teachers to be hired; (v) gives priority within the plan to schools within the school district with the greatest need, based on average class size, academic performance, and, for the two thousand two--two thousand three school year in the case of a school district with a shortage of classroom space, space availability; (vi) details how such district's plan will not adversely impact the class size of other grades including any proposed use of grant funds, not to exceed ten percent of the total grant, to ensure reasonable class size in grades four and above; (vii) provides a detailed timetable for achieving full compliance with the district plan for reduced class size; and (viii) indicates the manner in which the district will use grant monies received under this section to achieve such class size reductions. In the case of the city school district of the city of New York, such district plan shall be submitted on a city-wide basis. c. Grant awards. Except as otherwise provided in this paragraph, commencing with aid payable in the nineteen hundred ninety-nine--two thousand school year, the commissioner shall award grants to eligible school districts with approved district plans in an amount equal to the sum of the district's new classroom grant amount computed in accordance with paragraph f of this subdivision plus the district's continuing classroom grant amount pursuant to paragraph g of this subdivision adjusted as required by paragraph h of this subdivision. In the event the amount appropriated for purposes of this subdivision exceeds the amount to be awarded, the commissioner shall promulgate regulations for the allocation of the remaining apportionment. In the event the appropriation for purposes of this subdivision in any year is less than the sum of the grants payable to all school districts pursuant to this subdivision, the commissioner shall adjust the individual school district allocations to conform to the appropriation. For aid payable in the nineteen hundred ninety-nine--two thousand school year, the aid payable pursuant to this subdivision shall not exceed seventy-five million dollars ($75,000,000); for aid payable in the two thousand--two thousand one school year, the aid payable pursuant to this subdivision shall not exceed one hundred forty million dollars ($140,000,000); and for aid payable in the two thousand one--two thousand two school year and thereafter, the aid payable pursuant to this subdivision shall not exceed two hundred twenty-five million dollars ($225,000,000). d. The basic grant per classroom shall mean the product of: (i) the median salary of a teacher in the district with five years of experience in the nineteen hundred ninety-four--ninety-five school year based on data on file with the commissioner on February first, nineteen hundred ninety-seven, or thirty-four thousand eighty-nine dollars for any district without such data on file, and (ii) one and six hundred and nine ten-thousandths, and (iii) the sum of one plus the district's computed rate of fringe benefits for the nineteen hundred ninety-four--ninety-five school year, as determined by the commissioner based on data on file on February first, nineteen hundred ninety-seven, with the result rounded to the nearest dollar. e. New additional classrooms to be funded. (i) For the nineteen hundred ninety-nine--two thousand school year through the two thousand one--two thousand two school year, the maximum number of new additional classrooms to be funded for an eligible school district pursuant to this subdivision shall equal the product of the phase-in factor and the total of such classrooms needed. For the nineteen hundred ninety-nine--two thousand school year, for school districts with a total public school enrollment in the base year of one million or more, the phase-in factor shall be eighteen and seven-tenths percent; for school districts with a total public school enrollment in the base year of twenty thousand or more and less than one million, the phase-in factor shall be thirty-three and three-tenths percent; and for school districts with a total public school enrollment in the base year of less than twenty thousand, the phase-in factor shall be forty percent. For the two thousand--two thousand one school year, for school districts with a total public school enrollment in the base year of one million or more, the phase-in factor shall be thirty-four and seven-tenths percent; for school districts with a total public school enrollment in the base year of twenty thousand or more and less than one million, the phase-in factor shall be sixty-six and seven-tenths percent; for school districts with a total public school enrollment in the base year of less than twenty thousand, the phase-in factor shall be forty percent. For the two thousand one--two thousand two school year, and thereafter, for school districts with a total public school enrollment in the base year of one million or more, the phase-in factor shall be fifty-five and eight-tenths percent; for school districts with a total public school enrollment in the base year of twenty thousand or more and less than one million, the phase-in factor shall be one hundred percent; and for school districts with a total public school enrollment in the base year of less than twenty thousand, the phase-in factor shall be forty percent. (ii) The total of such classrooms needed shall be based on the public school enrollment of students attending kindergarten through grade three in the schools of the district in the fall of nineteen hundred ninety-five and average class size data respectively for kindergarten and for common branch classes for the nineteen hundred ninety-three--ninety-four school year, as reported by the commissioner in the school district fiscal profile report released in May, nineteen hundred ninety-six. Such total shall equal the sum of: (1) the positive remainder of the quotient of the kindergarten enrollment divided by twenty minus the quotient of such enrollment divided by the average class size for kindergarten rounded to the nearest whole number; and (2) the positive remainder of the quotient of the grade one through three enrollment divided by twenty minus the quotient of such enrollment divided by the average class size for common branch rounded to the nearest whole number. f. New classroom grant amount. Annually, the commissioner shall determine the new classroom grant amount for an eligible school district equal to the product of the enhanced first year grant award per classroom and the lesser of (i) the aggregate number of additional classrooms to be operating in the current year pursuant to the school district's plan submitted in accordance with paragraph a of this subdivision, minus the number of additional classrooms funded pursuant to this subdivision in the base year or (ii) the new additional classrooms determined for the current year pursuant to paragraph e of this subdivision or (iii) the number of new additional classrooms the district guarantees to open on the first day of session of the current year. The enhanced first year grant award per classroom shall equal the sum of the basic grant per classroom and a one time start-up award of ten thousand dollars for each new classroom. g. Continuing classroom grant amount. Commencing with the two thousand--two thousand one school year, and for each school year thereafter, a school district shall be eligible for a continuing classroom grant amount in the current year equal to the amount of the grant received in the base year, exclusive of any start-up funds provided for such additional classrooms first funded in the base year except that for aid payable in the two thousand--two thousand one school year, the continuing classroom grant amount shall include any startup funds provided for additional classrooms first funded in the base year. h. Notwithstanding the provisions of paragraphs f and g of this subdivision, a school district which: (i) spends less in local funds during the current year than in the base year for the salaries and benefits of teachers in grades kindergarten through three and has fewer classrooms for grades kindergarten through three in the current year than in the base year, and has a higher average class size in the current year in common branch classrooms in grades kindergarten through three than it had in the nineteen hundred ninety-eight--ninety-nine school year; or (ii) spends funds apportioned under this subdivision in an unauthorized manner, shall have its apportionment reduced in an amount equal to such deficiency in the current year or in the succeeding school year, as determined by the commissioner. Local costs incurred in implementing a district plan pursuant to this subdivision other than facility costs shall be ordinary contingent expenses. i. Grant funds awarded pursuant to this subdivision shall be used for the allowable costs of the district in reducing class size or maintaining reduced class size, as defined by the commissioner, which shall include but need not be limited to, salaries and benefits of additional teachers, costs of supplies and materials, and certain facilities costs; provided that up to ten percent of the total grant in any year may be used to ensure reasonable class size in grades four and above. j. The commissioner shall promulgate rules and regulations as may be deemed necessary for the implementation of this section setting forth the process by which districts may receive initial funding as well as continued funding pursuant to this section including but not limited to a transitional process by which a district may achieve a reduction in class size and compliance in their implementation pursuant to this section. k. A school district receiving grant monies under this paragraph shall file an annual report with the commissioner by October fifteenth, two thousand and annually thereafter in a form prescribed by the commissioner. By March first, two thousand one, and each year thereafter the commissioner shall prepare an annual assessment and review of the participating districts to determine the effectiveness of the programs operated by such districts in reducing class size in the early childhood grades and shall submit such report with recommendations to the legislature. * l. Notwithstanding the provisions of paragraphs c, f and g of this subdivision, in the two thousand two--two thousand three through the two thousand four--two thousand five school years, each school district shall be eligible to receive the amount such district was eligible for pursuant to this section in the two thousand--two thousand one school year. * NB Effective until July 1, 2006 * l. Notwithstanding the provisions of paragraphs c, f and g of this subdivision, in the two thousand two--two thousand three through the two thousand four--two thousand five, and two thousand six--two thousand seven school years, each school district shall be eligible to receive the amount such district was eligible for pursuant to this section in the two thousand--two thousand one school year. * NB Effective July 1, 2006 38. Operating standards aid. a. In addition to any other apportionment under this section, a school district shall be eligible for an apportionment under the provisions of this subdivision for its services and expenses in helping students improve achievement in order to meet the new high learning standards and assessments established by the board of regents, in accordance with a district plan designed to assist students to achieve the new high learning standards through the provision of direct instructional services to students, the provision of appropriate professional development services to teachers and through the development and sharing of innovative educational practices. b. Operating standards aid. (1) Commencing with aid payable in the nineteen hundred ninety-eight--ninety-nine school year, school districts shall be eligible for operating standards aid equal to the product of: (i) the district's operating standards pupil count; and (ii) the district's operating standards aid per pupil. (2) The operating standards pupil count shall equal the product of the district's total aidable pupil units used to compute comprehensive operating aid pursuant to subdivision twelve of this section and the sum of one and, (i) for school districts for which the quotient of the extraordinary needs count divided by the district's base year public school enrollment exceeds sixty percent but is less than or equal to eighty-five percent, twenty-six hundredths, (ii) and for school districts for which the quotient of the extraordinary needs count divided by the district's base year public school enrollment exceeds eighty-five percent, one and sixty hundredths, and (iii) for school districts in which the percent of graduates who received Regents diplomas, as defined pursuant to regulations of the commissioner, two years prior to the base year is greater than the product of one hundred five percent multiplied by the percent of graduates who received Regents diplomas three years prior to the base year, two-tenths, provided that the percent of graduates for a reorganized district attributable to a school year prior to the reorganization shall be the sum of the percent of graduates for each former school district whose territory is included in the reorganized district in the current year, provided that total aidable pupil units used to compute comprhensive operating aid shall be calculated as if comprehensive operating aid were to be calculated pursuant to clause (i) of paragraph a of subdivision twelve of this section in the current year. (3) The operating standards aid per pupil shall equal the sum of eight dollars and fifty cents and the product of sixty-one dollars and fifty cents and the operating standards aid ratio. The operating standards aid ratio shall be the remainder obtained when the product of sixty-six hundredths and operating standards factor is subtracted from one. The aid ratio shall be expressed as a decimal to three places without rounding but shall not be less than seventy-eight thousandths. The operating standards factor shall equal the sum of: (i) the product of five-tenths and the alternate pupil wealth ratio; and (ii) the product of five-tenths and the quotient obtained when the district's expense per pupil is divided by six thousand fifty-eight. c. (1) In addition to aid payable pursuant to paragraph b of this subdivision, in the two thousand two--two thousand three school year districts for which the combined wealth ratio computed pursuant to paragraph 1 of subdivision one of this section is less than seven hundred thousandths will be eligible to receive the greater of: (i) the product of one hundred seventy-four dollars and eighty cents, total aidable pupil units for operating aid calculated pursuant to subdivision eight of this section, and (ii) a tier two operating standards aid ratio. (2) The tier two operating standards aid ratio shall be expressed as a decimal to three places without rounding and shall equal the sum of: (i) the district's transportation sparsity adjustment as defined in paragraph a of subdivision seven of this section, and (ii) the remainder obtained when the combined wealth ratio is subtracted from one. d. For aid payable in the two thousand two--two thousand three school year, any school district may receive the aid computed under paragraphs b and c of this subdivision or the amount payable pursuant to this subdivision in the two thousand--two thousand one school year. e. Powers and duties of the commissioner. The commissioner shall promulgate any regulations needed to implement the provisions of this subdivision. 39. Aid for summer school programs. In addition to any other apportionment under this section, for the two thousand--two thousand one school year and thereafter, a school district shall be eligible for an apportionment under the provisions of this subdivision for eligible summer school programs. Such eligible programs shall be designed to improve student performance in required academic subjects as defined by the commissioner, prepare students to retake parts of the Regents examination pursuant to the commissioner's regulations, and to prepare students for Regents examinations. Allowable program expenses shall include transportation, maintenance and operation and personal services. In addition, in a city school district in a city with a population in excess of one million inhabitants, funds may be used for summer camps where students are provided summer school services for at least three hours per day by a certified teacher at summer camps designated by the chancellor of the school district. a. Definitions. As used in this subdivision: (1) "Aidable summer school pupils" shall mean those summer session pupils as defined in paragraph g of subdivision one of this section and attending programs during the months of July and August of the base year that are eligible summer school programs. (2) "Summer extraordinary needs concentration factor" shall mean the sum of one plus the positive quotient of (i) the difference between the extraordinary needs percent less fifty-eight percent divided by (ii) forty percent, carried to four decimal places without rounding. (3) "Summer session index" shall be the product of the state sharing ratio for comprehensive operating aid and the summer extraordinary needs concentration factor, carried to three decimal places without rounding, but shall not be less than forty percent. (4) "Summer school program aid per pupil" shall be the product of two hundred dollars and the district's summer session index. b. The apportionment of aid for eligible summer school programs pursuant to this subdivision shall equal the product of the number of aidable summer school pupils and the district's summer school program aid per pupil.
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