BILL NUMBER:  S2687

 TITLE OF BILL :

An act to adjust certain state aid payments to the Southern Cayuga
central school district


 PURPOSE OR GENERAL IDEA OF BILL :

This legislation would allow for the State Education Department to
collect over payments in State aid from the Southern Cayuga Central
School District over six years beginning in 2009.

 SUMMARY OF SPECIFIC PROVISIONS :

State aid payments in the amount of not more than $234,498 made to the
Southern Cayuga Central School District in the 2002-2003 and 2003-2004
school years, which included excess payments of aid of which the
district has been notified, and for which a recovery must be made by
the state through deduction of future aid payments, shall be reduced
by deducting one-sixth of such excess payments from the payments due
to such school district and payable in the month of June in the years
2008, 2010, 2011, 2012, 2013, and 2014, provided, however, there shall
be no interest penalty assessed against such district or collected by
the state, and provided further that, notwithstanding any other
              

provisions of this act, any pending payment of moneys due to such
district as a prior year adjustment payable pursuant to paragraph c of
subdivision 5 of section 3604 of the education law for aid claims that
had been previously paid in excess as current year aid payments and
for which recovery of excess payments is to be made pursuant to this
section, shall be reduced at the time of actual payment by any
remaining unrecovered balance of such excess payments, and the
remaining scheduled deductions of such excess payments pursuant to
this section shall be reduced by the commissioner of education to
reflect the amount so recovered.

 JUSTIFICATION :

In April 2008, the State Education Department (SED) notified that it
had overpaid the Southern Cayuga Central School District aid for the
2002-2003 school year an amount of $116,685 and overpaid $117,813 for
the 2003-04 school year. SED also indicated that the full amount of
the overpayment $234,498 would be deducted from the June 2008 state
aid payment.  The short notice associated with this aid recovery meant
that the district did not have time to properly plan for the
repayment. As a result a recovery of this magnitude for a small rural
district (k-12 enrollment of 856) would have a significant negative
financial effect on the district and its taxpayers.

As a result, this bill stretches out the aid recovery for six year's
which would reduce the current year recovery of 2007-08 state aid to
$39,083 and such amount would be deducted for each of the next five
upcoming years until the total $234,498 is recovered.

 PRIOR LEGISLATIVE HISTORY :

S.8515 of 2007/2008

 FISCAL IMPLICATIONS :

Minimal to state; provides fiscal relief to school district.

 EFFECTIVE DATE :
Immediately and deemed to be in full force and effect on June 1, 2009.