*Contracts for Excellence (C4E) OverviewFunds must support specific program initiatives.Class Size ReductionTime on TaskTeacher & Principal Quality InitiativesMiddle & High School RestructuringFull-Day Pre-Kindergarten ProgramsModel Programs for English Language Learners (new in 08-09)2. Funds must go to students with the greatest educational need.English Language LearnersStudents in PovertyStudents with DisabilitiesStudents with Low Academic Achievement or At Risk of Not Graduating3. Funds must supplement, not supplant.For new or expanded programs onlyShould be used towards meeting schools overall educational goals as outlined in the CEP

*2007-08 C4E Approved PlanHow Funds Were AllocatedFunds that schools could decide how to spend within the C4E program areasHow Funds Were UsedNYC 2007-08 C4E Plan approved 11/19/07 by SED.

Program AreaAmountClass Size Reduction$153 millionTime on Task$48 millionTeacher & Principal Quality$40 millionMiddle & High School Restructuring$17 millionFull-Day Pre-K$0.5 millionTotal$258 million

*Five Year Class Size Reduction PlanAs stipulated by the Contracts for Excellence legislation, the City submitted a Five Year Class Size Reduction Plan to SED that was approved on November 19, 2007. The plan combines a series of multi-year strategies to reduce class sizes, including:

*Excludes self-contained special education classes ** Includes 9th grades residing in Jr. High Schools (i.e. 6-9 schools)Results from our February Mid-year Class Size Report indicate that the approach of empowering and enabling class size reduction is achieving results.

Resource AllocationNew School ConstructionSystem-Wide GuidanceCollaborative Team TeachingTargeted CoachingClass Size Data TrackingPolicy AdjustmentsAccountability

Baseline 06-07*C4E TargetFebruary 2008Preliminary ChangeK-321.020.720.9-0.14-8**25.624.825.0-0.69-12Adjustments to the high school methodology make the baseline/target from last year not directly comparable to preliminary results from this year. At mid-year, HS class size using the new methodology was 26.1 using apples to apples data, there was a reduction of .6 students in the average HS class.

*NYC DOES Budget Since 2002City funding for education has increased by over $4 billion since 200279% increase since Mayor Bloomberg took officeCity spending on education has grown at about twice the rate of City spending on other agencies, excluding DOE, since 2002The Citys increase in education spending is almost three times the rate of inflation since 2002Combined City and State funding has increased by over $7 billion since 2002State funding alone has increased by over 55%In 2008-09, we are facing an economic downturn in New York CityWhile City and State funding has increased year-over-year from 2007-08, the Departments non-discretionary new costs are greater than our new State and City fundsWe are cutting $200 million from central and other non-school budgets

*Current State Mandates Restrict Fund UseNEW STATE FUNDS FY09$535 million$242million$385 M RESTRICTED$150million$150 M UNRESTRICTED$113million$30millionMaintenance of Effort for existing prioritiesNew costs eligible for C4E fundsRestricted C4E funds$385millionFunds subject to C4E

*NYCs 2008-09 Preliminary C4E PlanHow We Propose to Allocate FundsThe FY09 Contracts for Excellence allocations described in this plan are preliminary. Funds are subject to a public engagement process and approval by the State Education Department. Please note that distribution of all funds is subject to allocation guidelines as specified in State regulations.Total: $113m. Covers new costs that are eligible for C4E funding.Total: $242m. Funds that schools can decide how to spend within the C4E program areas

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Discretionary Allocations to SchoolsAmount$179 million in restricted Contracts for Excellence funds were released to schools on May 22, 2008 as a preliminary allocation. $63 million in additional funds will be allocated to schools pending a public process and SED approval. $242 million is the expected total within this category.Description Funds released directly to schools to be used at the discretion of the principal, School Leadership Team, and greater school community. Restricted to spending on new or expanded supplemental programs in the six C4E-eligible areas.The Department created a new Contracts for Excellence allocation category so that these funds will be easy to track within school budgets.

*$113 million is the expected total in these two categories

Targeted Allocations to SchoolsAmount$96 million is our preliminary estimate in this category. The total allocation amount will be determined through a public process and SED approval. Schools receiving allocations were chosen based on a) overall student need and b) capacity to carry out specific program.Description Funds allocated by the DOE directly to schools for specific uses that are eligible within the C4E programs areas:$64 million - New Collaborative Team Teaching (CTT) Classrooms (inclusive of fringe)$20 million - School-Wide Performance Pay Initiative Expansion$5 million - Full-Day Pre-K Expansion (inclusive of custodial costs)$5 million - New & Expanded Autism Spectrum Disorder (ASD) Classrooms$2 million - ELL Summer School Expansion

School Support ServicesAmount$17 million is our preliminary estimate in this category. The total allocation amount will depend on the public process and SED approval. While these funds will not appear on schools budgets, they will be attributed to impacted schools as part of the DOEs citywide C4E plan. Description Funds allocated to Central programs that directly benefit schools. $7 million - New & Expanded Multiple Pathways to Graduation Initiatives (for over-age and under-credit students)$10 million - New & Expanded Principal Training Initiatives

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Maintenance of EffortAmount$30 millionDescription The City is allowed under State law to spend $30 million for maintenance of effort to fund existing City programs that meet the C4E program eligibility requirements. Preliminary allocations of these dollars have not yet been determined.

*School Spending GuidanceAn important part of the Citys Children First school reforms is allowing principals to make decisions about what they need for their schools and students to succeed. Given the special considerations of C4E funding, the Department is working to ensure that principals and SLTs have the full range of information and support needed to optimally allocate their C4E dollars:CEP Process: C4E planning is included in the 2008-09 Comprehensive Education Plan (CEP) process, which requires input from the School Leadership Team (SLT). SLTs are also being provided with C4E training. SSO and ISC Support: SSO and ISC teams are being trained on C4E provisions and are proactively working with schools to plan for allocation of C4E funds. These teams in turn work with DOE liaisons to the State Education Department to answer specific school questions about program eligibility, approved fund uses, etc. Public Feedback: Principals havebeen informed that they are required to take into account public feedback as well as input from their teams and greater school communities when deciding how to spend C4E funds. Program-Specific Guidance: The Department is offering program planning support to schools in three areas of strategic focus: class size reduction, middle school reform and support of English Language Learners (ELLs)CEP Process: C4E planning is included in the 2008-09 Comprehensive Education Plan (CEP) process, which requires input from the School Leadership Team (SLT). SLTs are also being provided with C4E training.

*Program Guidance: Middle Schools & ELLsThe Office of Teaching & Learning is working with SSOs to provide program guidance and technical assistance to help schools design effective instructional strategies. Specific outreach will be focused on schools serving middle grade (6-8) students and English Language Learners. Programs and Services Offered to SchoolsProfessional Development Opportunities Across All Content AreasExemplary Site VisitationsSample Program ModelsResources Offered to EducatorsIdentification of innovative programs Dissemination researchDevelopment of resource guide to support middle schoolsDistribution of policy briefsThese supports will be framed by the work from two larger Department initiatives:Middle School Success Plan Blueprint for redesignLanguage Allocation Policy Support in analyzing efficacy of services to ELLs and developing appropriate policies and practices

*Program Guidance: Class Size Reduction2008-09 Class Size Reduction Guidance MemoUpdated and refined citywide guidance on class size reduction strategies released in Principals Weekly on Wednesday, May 28, 2008Provides suggestions and resources for schools considering class size reduction or other personalization strategies and describes how system-wide policies around enrollment and space allocation will impact schools class size reduction efforts2008-09 Class Size Reduction Coaching ProgramThe Department expects to add roughly 50 schools to the targeted coaching program in 2008-09, who will be asked to prioritize CSR in the coming year and will receive focused support for implementing CSR or co-teaching strategiesParticipating schools identified based on low performance on city and/or state accountability metrics, relatively high class size, and in some cases, availability of spaceEnhancements to the Five-Year Class Size Reduction PlanClass size reduction and personalization guidance integrated into budget and school planning documents for the 2008-09 school yearThe Department intends to use central planning processes to adjust enrollment plans and propose alternate zoning when appropriate to facilitate reduced registers, better use of school facilities and reduced class size11,471 seats are coming on-line in new buildings in September 2008, with enrollment patterns designed to optimize reductions in surrounding schools. An additional 32,000 seats are scheduled to be completed between 2009 and 2011. We continue to improve the accuracy and transparency of our class size reports, particularly around middle school class size data and the reporting of over- and under-size classes

*Building Up To District and Citywide PlansThe DOE is required to submit a citywide C4E planwhich includes individual spending plans for each school receiving fundsby July 22 to the State Education Department (SED).

May 23 June 16CEC budget hearingsMay 23 - June 27School-level C4E planning for use of fundsJune 27CEP-C4E planning document due July 1Initial public comment period endsJune 27 Early JulyDOE review of proposed school-level allocationsPublic comments incorporated into proposalEarly to Mid JulyAdditional public hearing (TBD)July 22NYC C4E proposal due to SEDWill containDistrict and citywide roll up of all preliminary allocations (discretionary, targeted, school support, maintenance of effort) by program area and strategyFor each school receiving preliminary C4E funds:Proposed spending by program area and strategy Targeted student populations Performance targetsAugust 15SED approval deadline (expected)

*Public CommentWe will take public feedback into account in the coming month as we continue to work with schools to develop a citywide Contracts for Excellence plan. Please let us know what you think before July 1. We must submit a final plan to the State Education Department for review on July 22. The public may comment on any aspect of the plan, including: How schools are planning to spend their discretionary funds within the six allowable program areas How the DOE is allocating targeted Contracts funds to schools How the DOE is allocating funds for School Support Services NYCs Class Size Reduction plan The public comment process itself Educators, parents, and all other members of the New York City community with feedback should e-mail us at ContractsForExcellence@schools.nyc.gov

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