In April 2007, the New York State Legislature and the Governor passed historic education legislation to provide a multi-year, massive infusion of new school funding; the creation of a clear cut system of accountability that will focus on putting into practice key educational strategies; and a fair and simple funding formula, known as Foundation Aid, to distribute school aid to districts based on the needs of students, not politicians. The new Foundation Aid formula replaces the old operating aid category of school funding made up of over 30 separate aid formulas. There is now a single Foundation Aid formula that determines the lion's share of state aid a district will receive to pay for its school programs. In order to make certain that these new monies are being spent wisely to improve teaching and learning for students with the greatest needs, the legislation establishes a new accountability system. This handbook defines a Contract for Excellence and explains the provisions of this education law. It address such areas as reducing class size, increasing student time on task, improving teacher and principal quality, restructuring middle and high schools, establishing full-day pre-kindergarten for four year olds and full-day kindergarten for five years olds outside of New York City, developing or expanding model programs for students with Limited English Proficiency (LEP), and whether New York City can spend new money in other areas. The handbook also addresses parental and guardian rights to comment on their district's Contract, and discusses a New Accountability System and new ways to understand and evaluate schools. Appended are: (1) School districts other than NYC that filed 2007-08 Contracts; (2) School districts other than NYC that file 2008-09 Contracts; and (3) Explanation of Education Terms. Also included is a list of online resources to learn more about state and federal education law, as well as New York's schools. (Contains 3 footnotes.) [This Handbook was also produced by the Alliance for Quality Education (AQE).]