Appendix C: MOE Waiver Request — New York
Summary
New York's Appendix C maintenance of effort waiver request form carries the typed name Michael Smingler and the date 3/15/2023. It reports State support for elementary and secondary education of $27,278,039,421 in FY 2022 against a baseline average of $24,552,791,326, with education at 24.18% of overall State spending against a 25.02% average. New York says K-12 spending rose $2.7 billion, or 11.1 percent, but that pandemic measures such as Medicaid enrollment growth of nearly 1.4 million and $2.1 billion for an Excluded Workers Program raised overall spending and cut education's share. A school-year table shows State K-12 funding up 12.9 percent over the baseline and per-pupil funding up 14.2 percent in SY 2022.
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Cite this document
“Appendix C: MOE Waiver Request — New York.”
Original at www.ed.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-education-pdf-www-ed-gov-19704467f2/
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Appendix C: MOE Waiver
Request
This form must be used for the submission of a request for a waiver of the requirements noted below. For assistance,
please contact your State mailbox, which is [State].oese@ed.gov .
State New York
On behalf of my State, I request a waiver of the following State maintenance of effort (MOE) requirements for the
following fiscal years:
Please check all that apply:
FY 2020 MOE requirement for elementary and secondary education under section 18008 of the CARES Act.
FY 2020 MOE requirement for higher education under section 18008 of the CARES Act.
FY 2021 MOE requirement for elementary and secondary education under section 18008 of the CARES Act.
FY 2021 MOE requirement for higher education under section 18008 of the CARES Act.
FY 2022 MOE requirement for elementary and secondary education under section 317(a) of the CRRSA Act and
section 2004(a) of the ARP Act.
FY 2022 MOE requirement for higher education under section 317(a) of the CRRSA Act and section 2004(a) of
the ARP Act.
FY 2023 MOE requirement for elementary and secondary education under section 2004(a) of the ARP Act.
FY 2023 MOE requirement for higher education under section 2004(a) of the ARP Act.
Data for State support and overall State spending
A State must resubmit the baseline data for FYs 2017, 2018, and 2019 (baseline years) as part of this MOE waiver
request. If these baseline data differ from a State’s previously submitted data, please provide a description of the reason
for the change. Additionally, a State must submit MOE data for the years in which it is requesting this waiver.
State support for State support for Overall State State support for State support for
elementary and higher education spending * elementary and higher education
secondary secondary education as a proportion
education as a proportion of of overall State
overall State spending
spending
FY 2017 $23,464,481,127 Not required $96,126,625,000 24.41% Not required
FY 2018 $24,762,671,635 Not required $98,076,519,000 25.25% Not required
FY 2019 $25,431,221,214 Not required $100,064,089,000 25.41% Not required
Average
$24,552,791,326 Not required $98,089,077,667 25.02% Not required
FYs 2017-2019
FY 2020 $26,373,708,943 Not required Not required Not required Not required
FY 2021 $25,867,424,445 Not required Not required Not required Not required
FY 2022 $27,278,039,421 Not required $112,797,650,000 24.18% Not required
FY 2023 Not required Not required Not required Not required Not required
*For overall State spending, a State may request a waiver based on final allocations or appropriations. For more
information, see FAQ 10.
Additional submission requirements
In an attachment, please provide:
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1. A description of the extent to which the State experienced fiscal burdens in preventing, preparing for,
and responding to the coronavirus and an explanation of how those fiscal burdens affected the State’s
ability to maintain fiscal effort (e.g., the status of and any changes to the State’s rainy day fund, whether
the State experienced a decline in revenues, or an increase in other emergency expenses resulting from
the pandemic, such as expenses related to health care, unemployment insurance, or support for small
businesses); and
New York's spending for K-12 education increased by $2.7 billion (11.1 percent) on a fiscal year basis between
the three-year baseline average period of FY 2017 to FY 2019 ($24.6 billion) and FY 2022 ($27.3 billion).
However, the State's FY 2022 Enacted Budget included extraordinary spending measures for COVID-19
pandemic relief efforts that increased overall State spending and reduced the relative share of K-12 education
spending as a percentage of total spending.
Changes in New York's overall spending outside of K-12 education due to the pandemic also included
significant increases to Medicaid spending, fueled by elevated enrollment levels. Historically, New York State
has experienced growth in Medicaid enrollment and public assistance caseloads during economic downturns
due mainly to increases in unemployment. Many people who were laid off or otherwise experienced a decrease
in family income in 2020 due to the pandemic became qualifying enrollees and began to participate in public
health insurance programs such as Medicaid, the Essential Plan (EP), and Child Health Plus (CHP). Participants
in these programs remain eligible for coverage for 12 continuous months regardless of changes in employment
or income levels that may otherwise make them ineligible. From FY 2020 to FY 2022, Medicaid enrollment
increased by nearly 1.4 million (22.6 percent), driven by the steep rise in unemployment triggered by the
COVID-19 pandemic. These elevated enrollments caused $1.4 billion of the $2.3 billion annual increase in
State Medicaid spending from FY 2021 to FY 2022.
NY State Health Care Enrollment Actuals
FY 2020 FY 2021 FY 2022
Medicaid - Individuals Covered 6,179,986 7,074,379 7,575,210
Essential Plan - Individuals Covered 800,438 891,932 970,939
Child Health Plus - Individuals Covered 433,405 391,932 387,139
7,413,829 8,358,243 8,933,288
New York State also provided non-recurring support for the two pandemic-response programs below. Support
for these two programs significantly increased total State operating funds spending in FY 2022 compared to
the baseline period and contributed greatly to the State's noncompliance with the MOE requirements for K-12
education. These two programs include:
• Excluded Workers Program: In FY 2022, $2.1 billion in support was provided to jobless workers
who were excluded from unemployment benefits, including undocumented adults and those with
nontraditional jobs. The recipients had to have suffered a loss of work-related earnings or household
income due to the COVID-19 pandemic.
• COVID Testing Kits: Pandemic response expenses were incurred in FY 2022 for the purchase of
COVID-19 test kits for schools and local governments. These are non-recurring, pandemic-related
costs that are expected to be partially reimbursed by FEMA in FYs 2024 and 2025.
As shown in the table below, if the one-time pandemic-related costs for these two programs are excluded from
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total spending, the State's K-12 education spending would comply with federal MOE requirements in FY
2022.With these two additional exclusions, spending on K-12 education comprises more than the required 24.52
percent of adjusted total State operating funds spending in FY 2022, falling within the 0.5 percentage point
rounding threshold permitted by the U.S. Department of Education (USDE) when comparing spending to the
FY 2017 to FY 2019 baseline period.
K-12 Education Spending MOE Compliance with COVID-19 Spending Adjustments
($ in Millions)
FY 2017 to
Category FY 2022
FY 2019 Average
Total State Operating Funds Disbursements $98,162 $117,403
Federal Spending Adjustments
American Rescue Plan Act (Federal Grants) $0 $4,500
Other Federal Grants $73 $106
Total State Operating Funds Disbursements - Less Federal $98,089 $112,798
Funds
COVID-19 Spending Adjustments
Excluded Workers Fund $0 $2,100
COVID Testing Kits $0 $905
Adj. State Operating Funds Disbursements $98,089 $109,793
K-12 Education Spending $24,553 $27,278
Maintenance of Effort Rates:
K-12 Education 25.02% 24.85%
Difference Between Baseline MOE Rate and FY 2022 0.17%
Difference Rounded to Nearest Percentage Point 0.00%
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2. Documentation and data supporting the description of the State’s fiscal burdens (e.g., revenue data,
appropriation tables, unemployment statistics, etc.) including any State action that impacted State revenue
(e.g., tax increases or decreases).
As shown in the charts below, New York’s unemployment rate and number of unemployment insurance claims
remained high relative to pre-pandemic trends at the time of the negotiation of the FY 2022 Budget in March 2021.
The statewide unemployment rate was 7.9 percent, more than double the pre-pandemic rate in March of 2020,
while continuing unemployment insurance claims stood at nearly half a million, or more than double the pre-
pandemic rate.
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Unemployment Rate
25 United States New York New York City
20
15
10
5
0
Jul-20 Nov-20 Jul-21 Nov-21 Jul-22 Nov-22
Jan-20 Mar-20 May-20 Sep-20 Jan-21 Mar-21 May-21 Sep-21 Jan-22 Mar-22 May-22 Sep-22 Jan-23
Source: Moody's Analytics/U.S. BLS.
The State's tax collections stayed relatively constant between FY 2020 and FY 2021, declining by approximately $500
million (0.6 percent), from $82.9 billion to $82.4 billion. At the time of the FY 2022 Enacted Budget in April 2021, the
State's FY 2022 All Funds tax collections were projected to total $91.1 billion, supported by several actions included
in the Enacted Budget to bolster tax revenues. These actions were intended to help offset baseline budget gaps projected
as of February 2021 to be $9.5 billion in FY 2022 and $9.3 billion in FY 2023. These actions included:
▪ Temporary High Income Surcharge. The Enacted Budget implemented a surcharge on high earners through
Tax Year 2027 that set a top rate of 10.9 percent for all filers earning more than $25 million. The surcharge
was expected to raise an additional $2.8 billion in FY 2022.
▪ Temporary Business Tax Increase. The Enacted Budget implemented a surcharge on the corporate tax rate
that increased the business income tax rate from 6.5 percent to 7.25 percent for three years through tax year
2023 for taxpayers with business income greater than $5 million. It also increased the capital base method of
liability estimation to 0.1875 percent from the prior year 0.025 percent rate. The capital base method increase
continued to exempt qualified manufacturers, qualified emerging technology companies, and cooperative
housing corporations and additionally exempted corporate small business beginning in Tax Year 2021. These
changes were projected to raise All Funds revenue by $900 million in FY 2022.
These additional revenue generators helped the State's FY 2022 Enacted Budget Financial Plan to be balanced in the
General Fund on a cash basis of accounting in both FY 2022 and FY 2023. Notably, the State's actual FY 2022 All
Funds tax collections totaled $104.7 billion, excluding Pass-Through Entity Tax (PTET) payments, resulting in actual
tax collections that were significantly higher than the $91.1 billion projected at the time the Enacted Budget was passed
in April 2021. This increase was fueled by higher-than-expected personal income tax receipts and a stronger than
expected recovery in the real estate market, particularly in New York City.
If including PTET payments, which New York began collecting in December 2021, the State's actual FY 2022 All
Funds tax collections increase to $121.1 billion. The PTET program provides partnerships and S corporations the option
to pay a tax of up to 10.9 percent on their taxable New York-sourced income, with their individual partners, members,
and shareholders then receiving a refundable PTET credit equal to the proportionate or pro rata share of taxes paid by
the electing entity. PTET is expected to be revenue-neutral on a multiyear basis. However, because the PTET credits
are not necessarily realized by taxpayers within the same fiscal year that PTET revenue is received by the State, the
PTET is not revenue-neutral to the State within each fiscal year.
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3. In addition, in its waiver request, a State should submit information on the relevant factors listed below to
support its request. The Secretary may ask States for additional information after States submit the MOE
waiver request form. In determining whether to grant a State an MOE waiver, the Secretary may consider
factors such as:
Has the State increased support for education?
The Department understands that it is possible that a State has maintained or increased overall funding for
education and the proportion of the State budget for education has still declined because of increases in other areas
of the budget (e.g., public health). In these cases, the Secretary may consider:
• Has total State funding for K-12 education and for higher education (calculated separately) increased from the
prior fiscal year?
Unlike its school districts and 46 other states, New York's fiscal year does not begin on July 1, starting instead on April
1. In its reporting of State support for elementary and secondary education for purposes of this MOE requirement, New
York has thus reported funding for its General Support for Public Schools (GSPS), excluding prekindergarten and
Employment Preparation Education (EPE) aids, on a State fiscal year (FY) basis rather than a school year (SY) basis
for consistency with reported overall State spending. However, GSPS is calculated in the first instance on a school
year basis. For this reason, in discussing State funding for K-12 education, the remainder of this document refers to
State funding for GSPS, excluding pre-k and EPE, on a school year basis. (As the MOE requirement considers State
support only for K-12 education, spending for pre-k and EPE is excluded, as these programs support three- and four-
year-old students and students over the age of 21 who have not earned a high school diploma, respectively.)
New York State - K-12 Education - General Support for Public Schools - SY 2021 to SY 2022
($ in millions)
SY 2021 SY 2022 YTY Change % Change
Total State Funding $25,325.81 $28,156.92 $2,831.11 11.2%
The State continued to strengthen its support for K-12 education between SY 2021 and SY 2022. The State's level of
K-12 education funding increased significantly from $25.3 billion in SY 2021 to $28.2 billion in SY 2022. This
represents a $2.8 billion annual increase (11.2 percent).
As discussed in greater detail below, New York used CARES Act ESSER and GEER funds allocated to partially
supplant the State’s aid to school districts in SY 2021. Specifically, New York’s FY 2021 Enacted Budget implemented
a one-time reduction of $1.1 billion to the State’s share of aid to school districts. The State's FY 2022 Enacted Budget
fully restored this reduction in State aid to school districts for SY 2022 and thereafter.
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• Has total State funding for K-12 education and for higher education (calculated separately) increased over time
(e.g., since baseline years)?
New York State - K-12 Education - General Support for Public Schools - SY 2017 to SY 2022
K-12 GSPS
($ in millions) YTY Change % Change
Baseline Years
SY 2017 $24,066.66
SY 2018 $24,949.23 $882.57 3.7%
SY 2019 $25,781.56 $832.33 3.3%
Baseline 3-Year Average $24,932.48 $857.45 3.5%
SY 2020 $26,681.28 $899.73 3.5%
SY 2021 $25,325.81 ($1,355.47) -5.1%
SY 2022 $28,156.92 $2,831.11 11.2%
Difference from Baseline 3-Year Average to SY 2022 $3,224.44 12.9%
Difference from SY 2019 to SY 2022 $2,375.36 9.2%
With the exception of SY 2021, total State funding for K-12 education has continued to increase over time. Total
K-12 State funding increased by $3.2 billion (12.9 percent) on a school year basis between the three-year baseline
average period of SY 2017 to SY 2019 ($24.9 billion) and SY 2022 ($28.2 billion). Between SY 2019 and SY
2022, K-12 state funding increased by $2.4 billion, or 9.2 percent.
• Has per-pupil State funding for K-12 education and for higher education (calculated separately) increased
from the prior fiscal year?
New York State - Per Pupil State Funding for K-12 Education - SY 2021 to SY 2022
YTY Change % Change in
K-12 GSPS YTY Change % Change in Per Pupil
Enrollment in Per Pupil Per Pupil
($ in millions) in Enrollment Enrollment Funding
Funding Funding
SY 2021 $25,325.81 2,540,436 - - $9,969 - -
SY 2022 $28,156.92 2,472,370 (68,066) -2.7% $11,389 $1,420 14.2%
Per-pupil State funding for K-12 education increased from the prior fiscal year. In SY 2021, State-funded K-12
education per-pupil support was equal to $9,969. In SY 2022, per-pupil funding increased 14.2 percent — an
increase of over $1,400 per-pupil — to $11,389.
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• Has per-pupil State funding for K-12 education and for higher education (calculated separately) increased
over time (e.g., since baseline years)?
New York State - Per Pupil State Funding for K-12 Education - SY 2017 to SY 2022
YTY
YTY % Change % Change
K-12 GSPS Per Pupil Change in
Enrollment Change in in in Per Pupil
($ in millions) Funding Per Pupil
Enrollment Enrollment Funding
Funding
Baseline Years
SY 2017 $24,066.66 2,659,656 $9,049
SY 2018 $24,949.23 2,654,808 (4,848) -0.2% $9,398 $349 3.9%
SY 2019 $25,781.56 2,630,150 (24,658) -0.9% $9,802 $405 4.3%
Baseline Average $24,932.48 2,648,205 (14,753) -0.6% $9,415 $377 4.1%
SY 2020 $26,681.28 2,611,646 (18,504) -0.7% $10,216 $414 4.2%
SY 2021 $25,325.81 2,540,436 (71,210) -2.7% $9,969 -$247 -2.4%
SY 2022 $28,156.92 2,472,370 (68,066) -2.7% $11,389 $1,420 14.2%
Change from Baseline Average to SY 2022 (175,835) -6.6% $1,974 21.0%
Difference from SY 2019 to SY 2022 (157,780) -6.0% $1,586 16.2%
Per-pupil State funding for K-12 education has increased over time. As shown in the table above, per-pupil State
funding has increased year-over-year in every year from SY 2017 through SY 2022, apart from SY 2021.
Statewide, enrollment declined 6.6 percent from the three-year baseline average of SY 2017 to SY 2019 (2,648,205
pupils) to SY 2022 (2,472,370 pupils), a decline of over 175,000 pupils. Over this same period, per-pupil State K-12
funding has increased by nearly $2,000 per-pupil (21.0 percent) from the three-year baseline average ($9,415 per
pupil) to SY 2022 ($11,389 per pupil).
According to U.S. Census Bureau data, New York has ranked first amongst all states in school district current
spending per pupil for the last 16 years (SY 2005 through SY 2020), a reflection of the State’s longstanding
commitment to provide all students with the resources to excel. New York school districts have spent at least 80
percent more than the national average per pupil every year dating back to 2011. According to the most recent U.S.
Census data available, New York’s school districts spent an average of $25,519 per pupil in SY 2020, which was 89
percent more than the national average of $13,494 per pupil. This level of spending was supported in part with
$12,220 per pupil of revenue from state sources, more than all but five other states and 62 percent more than the
national average of $7,548 per pupil.
• Has the State appropriated an increase in State funding for K-12 education and for higher education for future
fiscal years?
New York State provides support for K-12 education through statutory aid formulas and through reimbursement for
various grants and categorical programs. Major formula-based aid programs include Foundation Aid, Building Aid,
and Transportation Aid.
Foundation Aid represents unrestricted operating aid and is the largest single category of State aid provided to New
York’s school districts. In SY 2022, Foundation Aid totaled $19.8 billion, representing 70.4 percent of the $28.2
billion in GSPS for K-12 education aid provided to school districts. The State's FY 2022 Enacted Budget increased
Foundation Aid by $1.4 billion (7.6 percent). This $1.4 billion increase represented the first installment of a historic
three-year commitment by the State to phase in the Foundation Aid formula’s full funding target ("Total Foundation
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Aid"), ensuring that by SY 2024 each school district will receive at least as much Foundation Aid as prescribed by
the funding formula.
Created in 2007, the Foundation Aid formula calculates Total Foundation Aid for each school district based on
instructional expenses in lower-spending academically successful districts, adjusted to reflect inflation, regional cost
differences, concentrations of pupils who need extra resources (e.g., English language learners), and the community’s
income and property wealth per pupil. Originally, the State planned to raise each district’s annual Foundation Aid to
at least its Total Foundation Aid by SY 2011; however, after increases in SY 2008 and SY 2009, the Great Recession
halted those plans.
At the time of the FY 2022 Enacted Budget, the State had projected that an additional $4.9 billion in aid a year would
be needed to fully fund the Foundation Aid formula by SY 2024. However, due to high inflation, this cost had risen
by almost $800 million, to $5.7 billion, by the time of the FY 2024 Executive Budget in February 2023. Despite this
increase from the originally anticipated cost, the FY 2024 Executive Budget maintained the State's commitment to
fully fund the Foundation Aid formula for the first time in its 17-year history. The State's FY 2024 Executive Budget,
updated for the most recent available data, represents a $7.7 billion (30.2 percent) increase in GSPS for K-12
education aid versus SY 2021, including a $5.7 billion (30.7 percent) increase in Foundation Aid.
New York State - K-12 Education - General Support for Public Schools - SY 2021 to SY 2024
Pandemic Total K-12
Foundation Aid Other GSPS
Adjustment Education GSPS
$ in millions
SY 2021 $18,411.78 $8,044.68 ($1,130.65) $25,325.81
SY 2022 $19,819.35 $8,337.57 $0 $28,156.92
SY 2023 $21,335.55 $8,870.36 $0 $30,205.91
SY 2024* $24,069.09 $8,916.06 $0 $32,985.15
Change ($) SY 2021 to SY 2024 $5,657.31 $871.38 $1,130.65 $7,659.33
Change (%) SY 2021 to SY 2024 30.7% 10.8% n/a 30.2%
* SY 2024 values are as of the FY 2024 Executive Budget, which was released February 1, 2023. The State’s Enacted Budget is due on April 1.
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Are there exceptional circumstances that caused the State to be unable to maintain support for education?
If a State’s support for education declined, the Secretary may consider:
• Are there specific severe effects of the COVID-19 pandemic on the State’s economy that necessitated
reductions in support forelementary and secondary education and for higher education?
As noted above, State support for K-12 education was not reduced in SY 2022. Rather, the State's level of K-12
education funding increased significantly, from $25.3 billion in SY 2021 to $28.2 billion in SY 2022. This represents
a $2.8 billion (11.2 percent) annual increase. On a State fiscal year basis, the State's overall level of support for K-
12 education increased by $1.4 billion (5.5 percent) in FY 2022.
Two pandemic-related factors caused the annual increase in overall State support for K-12 education in FY 2022 to
be smaller than it would otherwise have been. First, most GSPS outside of Foundation Aid reimburses a certain
percentage of certain types of school districts expenses (e.g., pupil transportation), and due to the shift to remote
learning beginning in March 2020, districts' actual expenses in SY 2020 were significantly lower than the estimates
in the State Education Department's February 2020 database, which was used to prepare the FY 2021 Enacted
Budget. As a result, State support for K-12 education for SY 2021 (other than Foundation Aid and the Pandemic
Adjustment) was $285 million lower than projected at the time of the FY 2021 Enacted Budget in April 2020.
Because of the statutory aid payment schedule, this whole $285 million reduction just impacted disbursements in
FY 2022. Second, as discussed in greater detail below, also because of the statutory aid payment schedule, $341
million of the Pandemic Adjustment reduction in State support for education for SY 2021 occurred in FY 2022.
Additionally, as discussed above, the State's FY 2022 Enacted Budget included extraordinary spending measures for
COVID-19 pandemic relief efforts that increased overall State spending and reduced the relative share of K-12
education spending as a percentage of total spending. These factors included elevated Medicaid enrollments, a new
program to provide support to jobless workers who were otherwise excluded from collecting unemployment benefits,
and the costs associated with purchasing COVID-19 testing kits for schools and local governments.
• What steps did the State take to avoid and/or minimize such reductions?
N/A - State support for K-12 Education was not reduced in SY 2022.
• Did the State use Coronavirus State and Local Fiscal Recovery Funds awarded by the U.S. Department of
the Treasury under section 9901 of the ARP Act to support elementary and secondary education and
higher education?
No - New York did not use these funds to support K-12 Education.
• How did reductions in support for elementary and secondary education and for higher education
compare to other budget categories?
As shown in the tables below, most functional spending categories experienced increases in their State Operating
Funds (SOF) spending in FY 2022 relative to the baseline period, including K-12 education and higher education.
Figures in these tables are presented on a fiscal year, rather than a school year, basis to allow for better comparison
with spending in other budget categories.
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The largest increases in SOF spending between the baseline period and FY 2022 were for debt service, health, K-
12 education, social welfare, and State employee fringe benefits. The largest increases in relative share of SOF
spending as compared to the baseline period included payments for debt service, social welfare, mental hygiene,
and health. Despite a $2.7 billion (11.1 percent) increase in the State's K-12 education spending between the three-
year baseline average period and FY 2022, K-12 education's share of SOF spending declined by 0.84 percentage
points over the period due to significant growth in other budget areas as necessitated by the COVID-19 pandemic.
Growth in social welfare spending was driven by increased public assistance caseloads due to elevated
unemployment levels during the public health emergency, as well as a State-funded rent supplement program to
assist individuals and families impacted by the pandemic. Increased health spending was driven by elevated
Medicaid enrollments during the COVID-19 pandemic, as discussed above. Increased mental hygiene spending in
FY 2022 reflects changes in funding previously reported under the Medicaid Global Cap, as well as measures taken
in response to the COVID-19 pandemic, such as 2.5x overtime to address critical staffing needs.
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Adjusted Annual SOF Spending by Functional Category
(in millions of dollars)
3 Year Average
FYs 2017-2019 FY 2022 Change % Change
K-12 Education 24,553 27,278 2,725 11.1%
Health 21,552 25,825 4,273 19.8%
Higher Education 5,697 6,045 348 6.1%
General State Charges 7,897 10,025 2,128 26.9%
Debt Service 6,028 12,545 6,517 108.1%
Mental Hygiene 5,107 7,666 2,559 50.1%
Transportation 4,810 4,153 -657 -13.7%
Public Protection 3,792 3,088 -704 -18.6%
Social Welfare 3,369 5,693 2,324 69.0%
Electeds 2,794 2,769 -25 -0.9%
General Government 1,506 1,433 -73 -4.9%
Local Government Assistance 761 764 2 0.3%
Economic Development 600 1,271 672 112.1%
Parks & The Environment 406 438 32 8.0%
2
All Other 9,217 3,805 -5,412 -58.7%
TOTAL 98,089 112,798 14,709 15.0%
1
SOF total excludes Federal grants received within the State's Operating Funds
2
All Other includes non-MOE education spending and the removal of Federal grants from the SOF
spending totals.
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1
Adjusted Annual SOF Spending by Functional Category
3 Year Average
FYs 2017-2019 FY 2022 Change
K-12 Education 25.02% 24.18% -0.84%
Health 21.97% 22.90% 0.92%
Higher Education 5.81% 5.36% -0.45%
General State Charges 8.05% 8.89% 0.84%
Debt Service 6.15% 11.12% 4.98%
Mental Hygiene 5.21% 6.80% 1.59%
Transportation 4.90% 3.68% -1.22%
Public Protection 3.87% 2.74% -1.13%
Social Welfare 3.43% 5.05% 1.61%
Electeds 2.85% 2.45% -0.39%
General Government 1.54% 1.27% -0.27%
Local Government Assistance 0.78% 0.68% -0.10%
Economic Development 0.61% 1.13% 0.52%
Parks & The Environment 0.41% 0.39% -0.03%
2
All Other 9.41% 3.37% -6.04%
1
SOF total excludes Federal grants received within the State's Operating Funds.
2
All Other includes non-MOE education spending and the removal of Federal grants
from the SOF spending totals..
• Did the State take steps that reduced or will it take steps to proactively reduce its financial resources in a way
that impacted or will impact its ability to meet MOE requirements (e.g., tax changes (and in what context),
additional contributions to rainy day funds)? If so, what was the impact of the reduction (e.g., to what extent
were its resources reduced or will its resources be reduced)?
N/A
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Has the State used or will it use ESSER, GEER, or Higher Education Emergency Relief (HEER) funding to
replace State funding for education?
It is important for the Department to understand the State’s use of pandemic-related Federal funds when
reviewing a request for awaiver. The Secretary may therefore consider:
• Will all unallocated ESSER or GEER funds relevant to the waiver be used to provide net new resources to K-
12 schools and to higher education and not be used to replace existing State commitments to K-12 education
and to higher education?
At this time, all ESSER and GEER funds have been previously allocated to LEAs.
• Will all unallocated HEER funds be used to provide net new resources to higher education and not be used
to replace existing State commitments to higher education?
N/A
• Has the State previously used any ESSER, GEER, or HEER funds to replace State funding for education?
New York used CARES Act ESSER and GEER funds to partially supplant the State’s aid to school districts.
Specifically, New York’s FY 2021 Enacted Budget implemented a one-time reduction of $1.1 billion to the State’s
share of aid to school districts for SY 2021. Because of the statutory aid payment schedule, approximately $790
million of this reduction occurred in FY 2021 while the remaining $341 million occurred in FY 2022. The reduction
in GSPS for each school district was equal to the district’s CARES Act award, determined by the district's
proportional level of federal Title I funding. New York’s FY 2022 Enacted Budget fully restored this "Pandemic
Adjustment" reduction in State aid to school districts for SY 2022 and thereafter — and no additional ESSER or
GEER funds were used to supplant the State’s GSPS.
Moreover, the timing of New York State’s fiscal year and the enactment of the CARES Act on March 27, 2020,
created unique and complex issues for the adoption of the State’s FY 2021 Enacted Budget. New York is the only
state in the nation with a fiscal year that begins April 1; all other states have a fiscal year commencing July 1 or
later. New York was actively negotiating and finalizing its FY 2021 Enacted Budget before the passage of the
CARES Act, which occurred only days before the State’s FY 2021 began. With New York City as the epicenter of
the COVID-19 pandemic and the pandemic's impact on the State's revenues unknown at the time, the Governor
and the State Legislature decided to use newly available CARES Act funds to ensure that overall funding to school
districts was not reduced.
Notably, the State fully complied with the CARES Act MOE requirements for FY 2020 and FY 2021. The ESSER
and GEER programs within the CARES Act included MOE provisions requiring states to provide in FY 2020 and
FY 2021 at least as much funding as they provided on average to K-12 education, and higher education, over the
three-year period from FY 2017 to FY 2019. New York State exceeded its CARES Act MOE requirement of $24.6
billion by $1.8 billion in FY 2020 and $1.3 billion in FY 2021.
Additionally, New York State’s FY 2022 Enacted Budget used $35 million of ARP Act ESSER discretionary funds
to supplant a portion of the State’s reimbursement to New York City for its charter school tuition payments. New
York State’s school districts pay tuition set at a statutorily calculated per pupil rate for students who reside in the
district and enroll in a charter school. The State subsequently reimburses districts for a portion of these costs,
13
generally at a rate of $1,000 per pupil. The State reduced its level of reimbursement to New York City by $35
million in FY 2022. However, the level of overall funding to New York City was not reduced because the State
used ARP Act funds to backfill the $35 million reduction. The FY 2023 Enacted Budget fully restored the State’s
share of charter supplemental tuition payments to New York City. Notably, this State reimbursement program is
outside of and in addition to GSPS.
To the best of my knowledge and belief, all of the information in this MOE data submission are true and correct and the
failure to submit accurate data may result in liability under the False Claims Act, 31 U.S.C. § 3729 et seq.; OMB
Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part 180, as adopted
and amended as regulations of the Department in 2 CFR part 3485; and 18 USC § 1001, as appropriate, and other
enforcement actions.
Michael Smingler (518) 473-0608
Governor or Chief State School Officer or Authorized Representative (Typed or Printed Name) Telephone
3/15/2023
Signature of Governor or Chief State School Officer or Authorized Representative Date
Public Burden Statement
According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays
a valid OMB control number. The valid OMB control number for this information collection is 1810-0745. Public reporting burden for this
collection of information is estimated to average 2 hours per response, including time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of information. The obligation to respond to this collection
is required to obtain or retain benefit under section 18008 of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, Division M,
Section 317 of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSA) Act, and Section 2004(a) of the American
Rescue Plan Act of 2021 (ARP Act) If you have any comments concerning the accuracy of the time estimate, suggestions for improving this
individual collection, or if you have comments or concerns regarding the status of your individual form, application or survey, please contact Britt
Jung, Office of State and Grantee Relations, Office of Elementary and Secondary Education, U.S. Department of Education, 400 Maryland Avenue,
SW, Washington, DC 20202-6450, email: SGR@ed.gov directly.
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