New York Codes, Rules and Regulations
Title 8 - EDUCATION DEPARTMENT
Chapter II - Regulations of the Commissioner
Subchapter I - Scholarships and Grants
Part 149 - Setasides For Compensatory Education, Attendance Improvement And Dropout Prevention And Early Grade Intervention
Subpart 149-1 - Setaside For Instructional Programs And Services For Pupils With Compensatory Educational Needs
Section 149-1.7 - Expenditure check

A school district which is required to submit a district plan in accordance with section 149-1.3(a) or (b) of this Part which spends less in local funds during the current year than in the base year for the purposes of conducting programs for students with compensatory educational needs shall have its apportionment of comprehensive operating aid under subdivision 12 of section 3602 of the Education Law reduced in an amount equal to such deficiency in the current year or the succeeding school year. In addition, a district which spends any part of its total annual setaside attributable to students with compensatory educational needs in an unauthorized manner in the base year shall have its current year apportionment of comprehensive operating aid reduced in an amount equal to the amount of such unauthorized expenditures. In no event shall the reductions assessed pursuant to this section on the current year apportionment of comprehensive operating aid be deducted from the setasides required pursuant to this Part and paragraphs f, g and h of subdivision 12 of section 3602 of the Education Law.