BILL NUMBER:S1561

TITLE OF BILL:
An act
to amend the education law, in relation to payments to community
colleges by the state, and to repeal subdivision 10 of section 6305 of
the education law relating to state reimbursement to counties for
amounts paid on behalf of non-resident students in attendance at the
fashion institute of technology

PURPOSE:
The purpose of this bill is to alleviate the financial burden on New
York State counties from having to pay charge back fees to FIT
for upper division programs.

SUMMARY OF PROVISIONS:

Section 1. Provides that subject to the availability of appropriation,
that state shall pay the charge back fees for baccalaureate and
masters degree programs to FIT. On or before March 31, 2012, the
state shall pay 50% of the costs and on or before June 1. 2013, the
state shall make the remaining 50% payment to FIT. This section
further provides that on or after June 1, 2014 and thereafter, the
state shall pay 100% of such costs.

In the event that the state does not pay, the counties that issue the
              

certificate of residences shall make such payments.

Section 2. Removes the authority for the counties to charge the cities
and towns charge back fees for resident students who attend
community colleges that are not in such resident student's home county.

Section 3. Sets for the effective date.

JUSTIFICATION:
The Fashion Institute of Technology is a uniquely situated community
college. FIT relies on funding from three sources, local sponsor's
share, state support and student tuition, much like any other
community college. However, FIT grants baccalaureate and masters
degrees which makes them unique. In a recent court case, FIT's
designation as a community college was upheld, however, the court
found that counties should only required to provide charge back fees for
their two year programs. Charge back fees are collected as part of
an off-set to the local
sponsor's share and are paid by counties whose residents choose to
attend an out of county community college.

In these trying economic times, counties are finding it difficult, if
not impossible, to pay the upper level charge back fees. This
fact, coupled with the court's decision, makes this bill necessary to

alleviate some of the counties' burden but to still fund FIT at
appropriate and fair levels.

FIT provides a very specialized education in a variety of sought after
programs. The Institute has impressive graduation and
successful job placement rates and should be financially supported.

Therefore, this bill would achieve the goal of fully funding FIT by
having the state pick up the charge back sots for the upper division
degrees while easing the counties' financial hardships.

It is important to note, that this bill does not provide an unfair
advantage to FIT over other community colleges because it keeps in
place the counties obligation to pay the lower level charge back fees
which are paid to all other community colleges for two year degrees.

LEGISLATIVE HISTORY: 2012 S.7152.

FISCAL IMPLICATIONS:
Pursuant to appropriation, approximately $10.8M in 2013-14..

EFFECTIVE DATE: Immediately.