As states look for ways to hold school districts accountable for how they use big increases in K-12 funding, New York's experience may offer a test case in directing the flow of that new money. Under the state's ambitious "Contracts for Excellence" program, 55 of New York's 705 districts will share $430 million in extra aid this school year, but are required to file detailed plans that limit the spending to five strategies intended to raise student achievement. The early signs indicate that districts are complying with the new rules. According to a review by "Education Week" of contracts available as of last week--representing some three-quarters of the new funding--about half the increase will be spent this year on reducing class size, one of the five state-mandated categories. Another quarter of the new money will go to increase students' time on task in those districts, usually by lengthening the school day or year. But other categories highlighted by the state were proving to be less popular. About a sixth of the funding will go to teacher- and principal-quality initiatives, while an even smaller proportion--about one dollar in 10--will be spent on restructuring middle and high schools. And little of the new money will be spent to expand full-day kindergarten and prekindergarten.