Please explain the calculation for the 2010-11 Gap Elimination Adjustment?
The Executive Budget proposes a $2.1 billion Gap Elimination Adjustment that is computed through a formula that recognizes districts’ pupil need, fiscal capacity, tax effort and administrative efficiency. District reductions range from a minimum of 8 percent of their adjusted total aid (excluding Building Aid and Universal Prekindergarten Grants), to a maximum of 21 percent. In addition, the impact on high-need districts is limited to 5.0 percent of their total general fund expenditures, with an additional mitigating limit of 3.6 percent for those districts that qualify based on their level of administrative expenditures and concentration of high-need pupils. This reduction is partially offset through a $725.9 million restoration funded through ARRA. The Net Gap Elimination Adjustment after the partial restoration with ARRA ESF funds is a $1.4 billion reduction in support for school districts.
