In April 2007, the New York State Legislature with the leadership of the Governor passed historic education legislation that provided for a multi-year infusion of new school funding; the creation of a clear cut system of accountability for new funds distributed under the legislation; and a fair and simple funding formula, known as Foundation Aid. The legislation provided a four-year commitment to increase state education funding levels to supply adequate resources to districts across the state. To make certain that these new monies are spent wisely to improve teaching and learning for students with the greatest needs, the legislation requires that identified districts develop an annual Contract for Excellence specifying how the district will spend that part of its Foundation Aid subject to the legislation. The Contract for Excellence (Contract) must be developed with public input, enhance current programs or initiate new programs that employ improvement strategies approved by the State Education Department, and be submitted to the Commissioner of Education for approval. The legislation requires that each covered district be held accountable for implementing its approved plan and reaching its intended goals. For the 2008-09 school year, the State provided $388 million in new Contract money to New York City schools. The Campaign for Fiscal Equity (CFE) conducted analyses of both the Department of Education's (DOE) July proposed distribution and the State-approved distribution of the funds. Both analyses were based on data available from DOE. The 1,439 schools receiving Contract dollars represent 100 percent of New York City's public schools excluding District 75. DOE allocated no Contract dollars to District 75 schools. This paper presents the findings from the CFE analysis. (Contains 18 tables.)