The New York City Department of Education receives a portion of its overall budget in the form of Foundation Aid from New York State. While the State allows some of the increase in year-over-year Foundation Aid funding to be used for growth in general operating costs and investment in ongoing programs, the majority is subject to the provisions of the State’s “Contracts for Excellence.” New York City schools received Contracts for Excellence, or C4E, funds for the first time in the 2007-08 school year. These are funds that, under State law, must be distributed to certain schools and must be spent by those schools in specific program areas.

In 2008-09, New York City will once again receive funds subject to the provisions of the Contracts for Excellence. These provisions include:

1. Funds must support specific programs areas. C4E dollars must be spent to support new programs and activities or to expand existing programs and activities in the following six program areas:
   • Class Size Reduction;
   • Time on Task;
   • Teacher and Principal Quality Initiatives;
   • Middle School and High School Restructuring;
   • Full-Day Pre-Kindergarten; and
   • Model Programs for English Language Learners (New in 2008-09).
2. Funds must go to students with the greatest need. C4E funds must be used to improve the performance of students with the greatest educational need, including:
   • English Language Learners (ELLs);
   • Students with disabilities;
   • Students in poverty; and
   • Students performing below State learning standards or students who are at risk of not graduating.
3. Funds must supplement, not supplant. Contracts for Excellence funds are supplemental and may not be used to cover the costs of programs or personnel previously funded with tax levy dollars.

This site describes the City’s preliminary Contracts for Excellence plan for FY09. It includes:

• Program Options: Describes the program areas in which schools can spend Contracts dollars.
• 2008-09 Preliminary Allocation Plan: Describes the City’s preliminary plan for distributing Contracts funds.
• School-Level Planning Guidance: Describes the process by which principals have been asked to plan for the coming school year.
• Class Size Reduction: Describes the City’s class size reduction plan and ongoing class size reduction efforts.
• Approved 2007-08 Plan: Presents New York City’s Year One Contracts plan.
• Public Comment: Helps New Yorkers find out how to give feedback on the plan before it is submitted for State approval.
• Contracts for Excellence presentation: This presentation summarizes the DOE’s Contracts for Excellence proposal for the 2008-2009 school year.