(a) Assurance, distribution of funds. The State Educational Agency assures that funds which the State educational agency receives from appropriations made under section 401(a) of the Elementary and Secondary Education Act will be distributed among local educational agencies according to the enrollments in public and nonpublic schools within the school districts of such agencies, except that substantial funds will be provided to: (i) local educational agencies whose tax effort for education is substantially greater than the State average tax effort for education, but whose per pupil expenditure (excluding payments made under title I of the Elementary and Secondary Education Act) is no greater than the average per pupil expenditure in the State, and (ii) local educational agencies which have the greatest number or percentages of children whose education imposes a higher than average cost per child, such as children from low-income families, children living in sparsely populated areas, and children from families in which English is not the dominant language.

1. (1) 70 percent of the funds available for local assistance under part B will be distributed on a per capita basis to the 756 local education agencies according to enrollments in public and private schools. The 756 figure includes not only operating school districts (737) but also other agencies operating the approved educational program.
2. (2) five percent of the funds available for local assistance under part B will be distributed on a per capita basis to local education agencies whose tax effort for education is substantially greater than the State average tax effort for education, but whose per pupil expenditure (excluding payments made under title I of The Elementary and Secondary Education Act is no greater than the average per pupil expenditure in the State.

3. (3) 25 percent of the funds available for local assistance under part B will be distributed on a per capita basis to local education agencies whose pupils have special educational needs (PSEN). These pupils are identified through the State's pupil evaluation program (PEP) which measures reading and mathematics achievement.

   (c) Per pupil allocation and eligibility criteria.

4. (1) Enrollment portion. Based on the fall 1976 public and private school enrollment data, 4,027,360 children in 756 local education agencies will share in 70 percent of the local assistance funds available under part B ($8,296,075). The estimated per pupil allocation is approximately $2.06.
5. (2) High tax/low expenditure portion. The State average per pupil expenditure is $1696. Statistical computations comparing the State-approved operating expense (AOE) per weighted average daily attendance (WADA) determined an averaged operating cost and ration factor of property tax rate based on full value. Pupils in districts below $1,696 per pupil in expenditure and above.0223 full value tax rate are eligible. Approximately 256,499 public and nonpublic school children in 39 districts will share in the five percent of the local assistance funds available under part B ($592,576). The estimated per pupil allocation is approximately $2.46. These estimates were based on required State aid formula component information and is that of the 1974-75 year. Most of the districts in this category are small and rural with several larger cities or suburban sites with low economic bases or unique taxing situations.

6. (3) Special needs portion.

   1. (i) The Board of Regents and the State's local education agencies, after a lengthy collaborative needs assessment, identified increased student achievement in the basic skills as the first educational priority for New York State.
   2. (ii) Achievement in the basic skills of reading and mathematics is measured annually through the statewide evaluation program. PEP tests are administered to both public and private school pupils in grades 3, 6 and 9. The statewide reference point for the test is below level 4 in grade 6. For the purpose of the part B distribution formula, the percentage of students achieving below the statewide reference point will be applied to the public school district enrollment and to the enrollment in private schools. Approximately 1,288,755 public and nonpublic school children in 731 districts will share in the 25 percent of the local assistance funds available under part B ($2,962,884). The estimated per pupil allocation is approximately $2.30 per PSEN pupil (pupils with special education needs). Pupils in urban and rural areas will benefit primarily.

7. (4) Eligible LEA's to be recipients of funds include:

   1. (i) all public school districts;
   2. (ii) campus schools of the State University of New York and the City University of New York. Several branches of the State University operate campus or experimental schools. These campus schools are State-supported.

   3. (iii) State-operated schools;

      1. (a) New York State School for the Deaf, Rome, N.Y., and
      2. (b) New York State School for the Blind, Batavia, N.Y.

   4. (iv) State-supported schools;

      1. (a) Cleary School for the Deaf, Ronkonkoma,
      2. (b) Human Resources School, Albertson,
      3. (c) Lavelle School for the Blind, Bronx,
      4. (d) Lexington School for the Deaf, Queens,
      5. (e) Mill Neck Manor School for the Deaf, Mill Neck,
      6. (f) New York School for the Deaf, White Plains,
      7. (g) New York Institute for the Education of the Blind, Bronx,
      8. (h) Rochester School for the Deaf, Rochester,
      9. (i) St. Joseph's School for the Deaf, Bronx,
      10. (j) St. Francis DeSales School for the Deaf, Brooklyn, and
      11. (k) St. Mary's School for the Deaf. Buffalo.
   5. (v) New York State Division for Youth. The Division for Youth will administer the program for children institutionalized in nine schools.
   6. (vi) Boards of Cooperative Educational Services are deemed eligible applicants when local school districts elect to participate in a cooperative part B project and designate the BOCES as the administrative and fiscal agent to administer all or a portion of the participating local educational agency's part B allocation to carry out a cooperative project.

(b) Criteria for distribution of funds—part B.

The following criteria have been developed and will be applied to meet the requirements of section (403)(a)(4)(A) of the Elementary and Secondary Education Act regarding distribution of part B funds: