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Financial Overview for New York City Charter Schools. New York City Department of Education Office of Portfolio Development – Office of Charter Schools 52 Chambers Street × Room 405 × New York, NY 10007 Phone: 212-374-5419 Fax: 212-374-5581.

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Financial Overview for

New York City Charter Schools

New York City Department of Education

Office of Portfolio Development – Office of Charter Schools

52 Chambers Street × Room 405 × New York, NY 10007

Phone: 212-374-5419 Fax: 212-374-5581

  • Article 56 - Charter Law / Commissioner's Regulation

  • NYC Charter School Payment Cycle

  • Per Pupil Payment (AOE)

  • State Excess and High Cost Aid for Special Education

  • NYCDOE Special Education Payment

  • Annual Reconciliation

  • IDEA Per Pupil Payment

  • NYSTL Textbook, Software, and Library Resources

  • DYCD Startup

  • Title & Grant Funding

NYS Charter Law

  • Article 56 – Charter School Act

  • Section 2856 – Financing of Charter Schools

    • General Language pertaining to enrollment, attendance, reporting, AOE , funding disbursement, frequency, reconciliation, grants/gifts.

  • NYS Regulation of the Commissioner

  • Section 119.1 – Financing of Charter Schools

    • Details pertaining to definitions, formulas, AOE, guidelines and constraints.

  • NYC Charter Schools Payment Cycle - Macro

    1. Mayor and Council Adopt City Budget

    7. OCS submits bi-monthly invoices to DFO to make payment

    2. NYCDOE Budget Established in Unit of Appropriation (UA)

    6. Purchase Orders delivered to DFO, funds encumbered

    3. “Budget Mod” NYCDOE Budget Modifications Unit, Transfer Charter Funds

    4. OCS Establishes Spending Plans in FAMIS for each charter location

    5. OCS prepares purchase orders for each charter school

    How NYC Charter Schools Receive Funding

    • The Invoice/Payment Cycle

    • Invoices: Six bi-monthly invoices submitted electronically:

    • - June 1st, August 1st, October 1st, December 1st, February 1st, and April 1st

    • - Invoices submitted electronically to [email protected]

    • - We in turn submit these invoices to SED

    • - Sample Invoice

    • Payments: Six bi-monthly payments:

    • - July 1st, September 1st, November 1st, January 1st, March 1st and May 1st

    • - Direct deposit registration:


    • Summaries:

      • With capacity build-up payment summary’s will sent to the school after each bi-monthly payment cycle.

    Eligible Tax Levy Funding Streams

    • General Education Per Pupil (AOE)

    • Special Education Per Pupil

      • Excess Cost Aid

      • Integrated Settings

      • High Cost Aid

      • IDEA

    • Textbook / Library / Software Aid - NYSTL

    • OTPS Start-up Funding - DYCD

    ST-3 Gen Fund

    City Tax Levy (CTL) Expenses


    Interfund xfers


    - Minus Deductible Revenue & Expenditure

    Net GFE






    AOE Formula

    AOE = General Fund Expense - State Deductions + Selected Add-On & Categorical

    Overall ST-3 consists of General Fund, Special Aid & School Food

    ST-3 Gen. Fund $ = GFE $

    How is AOE Calculated?

    NYC Dept. of Education reports year-to-date expenses (ST-3 report) to The State Education Department (SED).

    SED excludes several revenues and expense (explained later in detail) from the reported expenses for AOE calculation.

    Only General Fund (not special aid fund or school food) expenditures are applicable towards the AOE calculation.

    General Fund is inclusive of a Tax Levy Expenditure, expenses, add-ons and interfund transfers as illustrated on next page. Special aid is reimbursable funding (Title Grants, AIDP, etc.) whereas school food as it implies, is strictly school food expense.

    What’s NOT in the AOE

    • Space Rental

    • Capital/Construction Cost

    • Textbook / Library / Software Aid (Separately Allocated via NYSTL)

    • Federal Aid (Operating / Medicaid / FEMA)

    • Debt Service

    • Transportation

    • Tuition for out of district

    • Inter-fund Transfers (Tax Levy Food Support)

    AOE Gen Ed Per Pupil Payment

    • Per Pupil Amounts

    • FY01-02: $6,630 Per FTE

      • FY02-03: $7,003 Per FTE ________5.33% increase

      • FY03-04: $7,972 Per FTE ________12.16% increase

      • FY04-05: $8,586 Per FTE ________7.15% increase

      • FY05-06: $9,084 Per FTE ________5.48% increase

      • FY06-07: $10,196 Per FTE ________10.91% increase

      • FY07-08: $11,023 Per FTE ________7.50% increase

    • Calculating FTE

    • SED FTE Calculator:



    • Example:

    • Jack is enrolled from the 1st day of school (9/06/06) - last day of school (6/28/07):

    • FTE = 1.000 Payment = ($11,023 * 1.000) = $11,023

    • Jill is enrolled from the middle of the school year (1/04/06) - last day of school (6/28/07): FTE = 0.615 Payment = ($11,023 * 0.615) $6,779

    Estimated FY08 State Excess & High Cost Aid

    • Claim only for IEP mandated level of service being provided to student

    • Schools must request this funding in writing (bi-monthly invoice)

    • Excess Cost Aid State formulas and funds:

      • - 20% to 60%: For a student to whom you are providing IEP-mandated special education services between 20% and 60% of the school day: $4,163

      • - 60% and >: For a student to whom you are providing IEP-mandated special education services more than 60% of the school day: $7,632

  • Integrated Setting Formula:

    • - For a student to whom you are providing IEP-mandated special education services in a general education setting for more than 60% of the school day: $2,313

  • State High Cost Aid: Available for students requiring services that cost more than 3x’s the allocated AOE amount.

    • - If a pupil’s special education costs exceed $28,731, charter schools may claim high cost aid by reporting per pupil annualized costs

    • - High cost aid instructions are located at:


      • - Reimbursement is equal to .483 times the cost above $28,731

  • NYCDOE FY08 Special Education Payment

    • To fully fund special education Excess Cost, the NYCDOE provides additional funding to charter schools serving disabled students

      • 20% to 60%:

        For a student receiving IEP mandated special education services between 20% and 60% of the school day: $4,456

      • 60% and up

        For a student receiving IEP mandated special education services more than 60% of the school day: $8,170

      • Integrated Setting

        For a student receiving IEP mandated special education services in a General Education setting more than 60% of the school day: $2,476

    Excess Cost Aid – Annualized Cost Calculation

    Annualized Cost for these students, include only the cost of direct special education services provided to the students according to the "individualized education program" (IEP). These costs may include:

    • Pro-rata share of special education classroom or consultant teacher salary plus fringe benefits,

    • Pro-rata share of special education classroom individual aide salary plus fringe benefits,

    • Pro-rata share of costs for related services specified on the student IEP, and

    • Cost of IEP-required assistive technology devices or services specific to this child.

      You may not include:

    • Costs for permanent building fixtures or equipment (such as a special fire alarm ceiling lighting system for the deaf),

    • Special education transportation costs,

    • Committee on Special Education / Pupil Personnel Services salary or fringe benefits,

    • Regular education teacher salary or fringe benefit costs,

    • District administrative or building overhead,

    • Due process costs (impartial hearings),

    • Any other costs for non-special education or indirect services.


    Excess Cost Aid – Annualized Cost Example

    • Annualized Cost Calculation - Example

    • John was enrolled for the entire year in a 6:1:1 special education class. The special education teacher and the special education classroom aide had salaries plus fringe benefits costing $67,000 and $23,000. John also received $9,000 in related services, and his IEP required an assistive technology device costing $2,000.

    • Salary & Fringe Benefits $15,000 (1/6 of the total salaries of $90,000)

    • + Related Services 9,000

    • + Assistive Technology Device 2,000

    • John’s Annualized Cost $26,000.

    • Even if John is enrolled for only a portion of the school year, the Annualized Cost remains $26,000.

    • To calculate his actual cost for State Aid reimbursement purposes, the $26,000 is multiplied by John's  FTE (Full Time Equivalent) enrollment

    Excess Cost - High Cost Aid

    • Annualized Cost for providing Education mustexceed the High Cost Qualifier

    • Annualized Cost Calculation

    • Reduce by the value of any services you may be receiving through the district provision

    • High Cost Formula:

      • Annualized Cost – ( 3 x Aidable Expense threshold qualifier) x Public Excess Cost Ratio

    • Example

      • $$$ - ($9,577 * 3) * 0.483

      • $40,000 - $28,731 * 0.483

      • $11,269 * 0.483

      • $5,442

      • $907 spread out amongst 6 bi-monthly payments

    Integrated Setting

    • Student with a disability must be receiving special services or programs for 60% or more of the school day in a general education classroom with non-disabled students

    • Allowable pursuant to indication on IEP:

      • Related services provided in a general education classroom.

      • Team-teaching: Sp Ed teacher & Gen Ed Teacher in a general education classroom.

      • Shared teaching: group of special education teachers provide instruction in a general education classroom with no separation of disabled from their non-disabled peers.

      • Resource room services provided to the claimed student in a general education classroom.

      • Direct consultant teacher services within a general education classroom (Note: If direct consultant teacher is claimed here, they cannot also be claimed for the .90 consultant teacher weighting.).

      • Indirect services by a consultant teacher to a general education classroom teacher for program planning in a general education classroom for a specific student.

      • One-to-one special education paraprofessional support provided to the claimed student pursuant to an IEP in a general education classroom (i.e. health, behavioral support).

    • The following may not be counted in determining whether a student is receiving special education programs or services for 60% or more of the school day in the general education classroom:

      • Pull-out related services; Pull-out resource room;

      • Segregated special class services;

      • Parent training;

      • Time in general education when no special education services are being delivered;

      • Any CPSE or CSE administrative activities.

    Reporting on Students w/ Disabilities

    a) Minimum time necessary for classification purposes

    20% to 59% category - Special Education services of not less than 5 hours per week at the elementary level and not less than 5.5 hours per week at the secondary level.

    60%+ category - Special education services a minimum of 3 hours of each school day of each school week at the elementary level and a minimum of 3.5 hours of each school day of each school week at the secondary level.

    b) “180-minute/5-period-per-week” rule for 20% - 59% Reporting Grades. 7 - 12:

    The statute reads in pertinent part “... the equivalent of five periods per week, but not less than the equivalent of one hundred eighty minutes...”. Both criteria must be met. As an example, if the class period for the high school is 40 minutes, a minimum of 200 minutes of special education services would need to be provided within the week to qualify for the 20% classification.

    c) “180-minute/5-period-per-week” exception for Grades 4 – 6:

    The “5-hour-per-week” rule applies to grades 4-6, unless the grade is in a “middle school operating on a period basis”. This is intended to distinguish traditional common branch classrooms with children leaving for specials from a departmentalized program in which students move from class to class in core subjects. The “180-minute/5 period per-week” rule described in a) only applies to one or more of these grades (4 – 6) when the grade is in a middle school and the students change classes much like in a high school setting.

    d) “5-hour-per-week” rule for Grades K – 3 for “20 – 59% Category

    The “180-minute/5-period per week exception never applies to Grades K–3. Students in these grade levels must meet the minimum 5 hoursper week of special education services to be classified in the 20% to 59% weighting category.

    Invoice & Reporting

    • Charter School Invoice

      • Gen Ed: Headcount vs. FTE

      • ELL/LEP Headcount

      • Special Ed

        • Excess Cost

        • Integrated Settings

        • High Cost

    • Reporting

    Annual Reconciliation

    • On or before the last day of July, each charter school provides a final report of actual enrollment.

      • Detailed list of students, start dates, end dates and FTE

      • Payment discrepancies are reconciled

      • Due no later than July 31 (in accordance with NYS Commissioner’s regulation119.1.c(2))

      • Reconciliation additions or subtractions will be reflected in the November 1 payment

    IDEA Funding

    • Per Pupil Payment

      • Individuals with Disabilities Education Act (IDEA) provides federal funding to schools serving students with disabilities

      • All pupils entitled to IEP-mandated services by the charter school, must be identified by December

      • Per Pupil Funding: FY01: $666.00

      • FY02: $861.71

    • FY03: $1,127.66

    • FY04: $1,336.62

    • FY05: $1,525.07

    • FY06: $1,317.93

      • Federal regulations mandates the payment of IDEA funds no later than February 1st of each year

    IDEA Funding – Changes in Reporting

    • Historically

      • PD 1c 4c

      • Due December 15 of each year

      • Snapshot of school as of December 1st of each year

      • Submitted directly to SED, cc to DOE OCS

    • New Reporting structure

      • Schools no longer submit hard copy of PD 1c 4c

      • Data is now extracted via SIRS

      • Snapshot date of school as of December 1st of each year

      • Verification reports from SED

      • Implications: CAP & ATS

    Textbooks, Hardware, Software & Library

    • Non Cash Revenue Sources:

    • - Textbook (NYSTL) - Hardware (NYSHL

    • - Software (NYSSL) - Library Resources (NYSLIBL)

    • Charter schools are eligible to make textbook, hardware, software, and library purchases through the NYCDOE and are subject to NYCDOE purchasing deadline

    • Purchases remain the property of the NYCDOE

    • Spending Accounts are established over the Fall for each school

    • FY07-08 per pupil funding amounts: Textbooks $58.25 Software $10.46

    • Library $6.25

    DYCD Start-up (OTPS) Funding

    • Payments are processed through the Department of Youth & Community Development (DYCD)

    • 1st Year Funding: Fixed + Variable = Total Allocation

      - Fixed: $90,000 (1st Year Only)

      - Variable: Per Capita Amt (x) Enrollment (outlined in Charter plan)

      $391 Elementary

      $443 Middle

      $475 High School

    • Subsequent Years Funding only provided for ‘Grading up’ enrollment

      - Funding ends when Charter School reaches grade level capacity

    • Requirements:

      - Register with DYCD

      - Submittal of EFT information

      - Submittal of Budget Narrative & Work Scope Plan

    • Contact Adrian Olivera, DYCD @ [email protected]

    Title Funding, Federal & State Grants Funding

    Title Formula Funding Types:

    Charter Schools Submit consolidated application directly to the State.

    NYCDOE does not serve as pass through for Title Funds.

    Title I - Aimed to raise student academic achievement to meet NY State standards, primarily in Four Core Subject Areas.

    Title IIA - to support the Early Grade Class Size Reduction in Grades K – 3

    - to provide high quality professional development to teachers and


    Title IID - Enhancing Education Through Technology

    Title III - supplementary funding to enhance services to LEP/ELL students,

    immigrant students

    Title IV - provide resources for development and implementation of innovative

    & effective substance abuse prevention programs for secondary school.

    Title V - Innovative programs

    Title Consolidated Application

    • First time applicants MUST submit Consolidated Application & FS-10

      - August 31st Deadline

    • SED Provides Workshops in Late Spring/Early Summer

    • SED TITLE I Allocation & Application Updates

    Title I Funding Requirements

    • Funding based on:

      - Previous years Lunch Forms (DOE SD1041) or Alternative Title I Form (SED)

      - Percentage of Charter School’s students who receive Free Lunch

      - Charter is recognized as own LEA

      - Poverty rate of 40% for Charter Schools in NYC

    • First Year Charters are automatically classified as Targeted Assistance Schools

      - Service can only provided to student identified as having greatest need

      - School may covert in future year to School Wide Project (SWP), where funds may be applied to greater program

    • Forms are due to State/DOE in October of each year

    • Subsequent FS10 snapshots must be submitted to state for allowance of funds.

    Title I Funding Considerations

    • High Poverty directly Correlated to At-risk eligibility

    • Serves high poverty students who score at level 1 or 2 on state assessments, to meet regents requirements for graduation, or who are failing to meet sate standards.

    • General Ed, Special Ed & ELL students are eligible to participate on an equal basis

    • Must Supplement, not Supplant basic tax levy program

    • Typical Activities include:

      • Academic Intervention Services, Student Support Service, Extended Day programs, Class Size reduction (SWP), School wide reforms (SWP), Professional Development, Parent Involvement, Parent/family Education, Teacher retention, administrative support, etc.

  • Typical Expenditures include:

    • Instructional staff, Guidance, Educational Administrators & Staff, Per Session, Workshops, Supplies & Materials, Equipment, Communications, Educational Service Contracts, etc.

  • Expenditure Considerations:

    • Required Set asides (detailed annually)

    • TA programs, funds may only be used to support those students that trigger funds

    • Programs must be Scientifically based

    • Supplement, not supplant

    • Documentation required for State (Narrative, Student/teacher schedules, procurement invoices, etc)

  • Other Federal & State Grants

    • Charter School Program Grant

    • State Stimulus Funds

    • Charter Center Planning Grant

    • E-Rate

    • Check Federal Website for Competitive grants

      - i.e. Library Readiness Grants, Foreign Language Assistance Program (FLAP) Grants

    • Charter Center Grant Administrator – Jon Moscow

    In the Pipeline

    • Surveys

    • Statistical data request

    • Funding Summaries

    • ELL funding & Other Categorical Consortium

    • Funding Set asides for Procurement Expansion