In order to balance the sometimes competing priorities of equity and stability, we have not yet implemented a pure Fair Student Funding system. Rather, we are gradually transitioning to a pure-formula system. This means:

• Schools historically funded above their formula level received a “hold harmless” amount equal to the amount over the formula. 690 schools fell into this category last year. Schools keep this allocation at least through this 2008–09 school year.
• Schools that have historically been funded under their formula level began to recieve new money to bring them to a fully funded level. 693 schools fell into this category last year. These schools received a total of $110 million in new money in the 2007–08 school year. Each school received approximately 55 percent of the gap between the school’s previous funding level and the FSF formula level up to $400,000. This year, most of these schools will remain under their formula level. Our current plan is to bring these schools up to formula as soon as the fiscal situation improves.
• For further details on how the first year transition from the previous funding methodology to Fair Student Funding took place, see the 2007–08 FSF Resource Guide.

We maintain our strong commitment to continuing our progress towards equitable funding for all schools. We will continue to value stability in the future while working to bring under-formula schools up to their fair funding level as the fiscal situation permits.

The 2008–09 School Year

In the 2008–09 school year, we will continue with the same transition principles from the first year of Fair Student Funding—a careful balance between stability and equity. We will:

• Give schools their hold harmless allocations as we committed to do last year.
• Keep under-formula schools at least at parity to gains made last year through full upward adjustments, and in some cases, help them move closer to the formula. The fiscal conditions do not allow for us to direct significant new resources to these schools.

We hope to bring all schools to their formula as soon as resources allow.

In general, a school’s Fair Student Funding allocation does not stay the same from year-to-year. It may change as a result of:

• changes in enrollment;
• changes in the FSF formula;
• increases in the per capita amounts associated with the weights due to increased funding in the system overall for collective bargaining increases or other overall funding increases; or
• increases in funding needed for coverage of salary increases for teachers on schools’ payrolls prior to April 2007.

These changes impact the transition towards Fair Student Funding and a school’s resulting actual funding level.

See how the transition will work for schools receiving more than their formula level (hold harmless).

See how the transition will work for schools not yet receiving their formula level.

To ease the transition for principals and increase transparency for families and community members, a view of each school’s budget is available online.

This school budget view highlights how a school is transitioning from its historical funding level to its fair funding level. It also shows how FSF fits into a school’s overall budget, including Children First Funds, Contracts for Excellence funds and other categorical and programmatic funding.

Specifically, the three budget views shown are:

I. FY08 Actual Budget - This section shows how much money a school received in fiscal year 2008 through Fair Student Funding, Children First Funds and other categorical and programmatic funding streams.

II. Fair Student Funding (FSF) Formula Entitlement - This section shows how much money a school would receive under the Fair Student Funding formula in fiscal year 2009. Some schools receive more than this amount, some less, and some are at the formula level.

III. FY09 Actual Budget (Preliminary) - This section shows what funding a school is actually getting through Student Funding, Children First Funds, Contracts for Excellence, and other categorical and programmatic funding streams in fiscal year 2009. The adjustments made to school budgets based on city-wide reductions are also shown.