S. 2706 2
(E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR WHICH A TAX LEVY LIMITATION SHALL BE DETERMINED PURSUANT TO THIS
SECTION.
(F) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL YEAR MINUS THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
(G) "LOCAL GOVERNMENT" MEANS A COUNTY, CITY, TOWN, VILLAGE, FIRE
DISTRICT, OR SPECIAL DISTRICT INCLUDING BUT NOT LIMITED TO A DISTRICT
CREATED PURSUANT TO ARTICLES TWELVE, TWELVE-A, TWELVE-C OR THIRTEEN OF
THE TOWN LAW, ARTICLES FIVE-A, FIVE-B OR FIVE-D OF THE COUNTY LAW, CHAP-
TER FIVE HUNDRED SIXTEEN OF THE LAWS OF NINETEEN HUNDRED TWENTY-EIGHT,
OR CHAPTER TWO HUNDRED SEVENTY-THREE OF THE LAWS OF NINETEEN HUNDRED
THIRTY-NINE, BUT SHALL NOT INCLUDE THE CITY OF NEW YORK OR THE COUNTIES
CONTAINED THEREIN.
(H) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
(I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
IS AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT
THE TAX LEVY LIMIT SHALL NOT INCLUDE THE LOCAL GOVERNMENT'S APPROVED
CAPITAL TAX LEVY, IF ANY.
3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION,
BEGINNING WITH THE FISCAL YEAR THAT BEGINS IN TWO THOUSAND TWELVE, NO
LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT IS
GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR.
(B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION FOR
EACH LOCAL GOVERNMENT BY THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR, AND SHALL NOTIFY
EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
(C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
BE DETERMINED AS FOLLOWS:
(I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
(II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR FISCAL YEAR.
(III) SUBTRACT THE APPROVED CAPITAL TAX LEVY FOR THE PRIOR FISCAL
YEAR, IF ANY.
(IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT OF A
TORT ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
IF ANY.
(V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
(VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
(D) IN THE EVENT THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS APPROVED
A LEGAL SETTLEMENT OF A TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES LEVIED BY THE
LOCAL GOVERNMENT IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY LIMITATION
S. 2706 3
FOR THE COMING FISCAL YEAR APPLICABLE TO SUCH LOCAL GOVERNMENT, BY
ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
(E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX LEVY
OF EACH COUNTY THAT IS ATTRIBUTABLE TO ANY INCREASE OR DECREASE OVER THE
PRIOR YEAR IN THE COST OF THE COUNTY SHARE OF DIRECT CASH ASSISTANCE TO
PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LOCAL TEMPORARY ASSISTANCE TO
NEEDY FAMILIES PROGRAM OR THE STATE-LOCAL SAFETY NET ASSISTANCE PROGRAM
AND SHALL ADJUST THE TAX LEVY LIMITATION FOR SUCH COUNTY TO REFLECT SUCH
CHANGE.
(F) WHENEVER THE RESPONSIBILITY AND ASSOCIATED COST OF A LOCAL GOVERN-
MENT ACTIVITY IS TRANSFERRED TO ANOTHER LOCAL GOVERNMENT, THE STATE
COMPTROLLER SHALL DETERMINE THE COSTS AND SAVINGS ON THE AFFECTED LOCAL
GOVERNMENTS ATTRIBUTABLE TO SUCH TRANSFER FOR THE FIRST FISCAL YEAR
FOLLOWING THE TRANSFER, AND ADJUST THE TAX LEVY LIMITATIONS OF SUCH
LOCAL GOVERNMENTS ACCORDINGLY.
4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR ONLY
IF THE GOVERNING BODY OF SUCH LOCAL GOVERNMENT FIRST ENACTS, BY A
TWO-THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH BODY, A LOCAL LAW TO
OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY, OR IN THE
CASE OF A DISTRICT OR FIRE DISTRICT, A RESOLUTION TO OVERRIDE SUCH LIMI-
TATION FOR SUCH COMING FISCAL YEAR ONLY.
5. (A) WHEN TWO OR MORE LOCAL GOVERNMENTS CONSOLIDATE, THE STATE COMP-
TROLLER SHALL DETERMINE THE TAX LEVY LIMITATION CONSOLIDATED LOCAL
GOVERNMENT FOR THE FIRST FISCAL YEAR FOLLOWING THE CONSOLIDATION BASED
ON THE RESPECTIVE TAX LEVY LIMITATIONS OF THE COMPONENT LOCAL GOVERN-
MENTS THAT FORMED SUCH CONSOLIDATED LOCAL GOVERNMENT FROM THE LAST
FISCAL YEAR PRIOR TO THE CONSOLIDATION.
(B) WHEN A LOCAL GOVERNMENT DISSOLVES, THE STATE COMPTROLLER SHALL
DETERMINE THE TAX LEVY LIMITATION FOR THE LOCAL GOVERNMENT THAT ASSUMES
THE DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH DISSOLVED LOCAL GOVERN-
MENT FOR THE FIRST FISCAL YEAR FOLLOWING THE DISSOLUTION BASED ON THE
RESPECTIVE TAX LEVY LIMITATIONS OF SUCH DISSOLVED LOCAL GOVERNMENT AND
SUCH LOCAL GOVERNMENT THAT ASSUMES THE DEBTS, LIABILITIES, AND OBLI-
GATIONS OF SUCH DISSOLVED LOCAL GOVERNMENT FROM THE LAST FISCAL YEAR
PRIOR TO THE DISSOLUTION.
(C) THE TAX LIMITATION ESTABLISHED BY THIS SECTION SHALL NOT APPLY TO
THE FIRST FISCAL YEAR AFTER A LOCAL GOVERNMENT IS NEWLY ESTABLISHED OR
CONSTITUTED THROUGH A PROCESS OTHER THAN CONSOLIDATION OR DISSOLUTION.
6. IN THE EVENT A LOCAL GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTABLISHED PURSUANT
TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE
WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
USE SUCH FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
FOR THE ENSUING FISCAL YEAR.
S 2. The education law is amended by adding a new section 2023-a to
read as follows:
S 2023-A. LIMITATIONS UPON SCHOOL DISTRICT TAX LEVIES. 1. GENERALLY.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF TAXES THAT MAY BE LEVIED
BY OR ON BEHALF OF ANY SCHOOL DISTRICT, OTHER THAN A CITY SCHOOL
DISTRICT OF A CITY WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR
MORE, SHALL NOT EXCEED THE TAX LEVY LIMITATIONS ESTABLISHED PURSUANT TO
THIS SECTION. IT SHALL BE THE RESPONSIBILITY OF THE COMMISSIONER TO
ANNUALLY DETERMINE THE TAX LEVY LIMIT OF EACH SCHOOL DISTRICT IN ACCORD-
ANCE WITH THE PROVISIONS OF THIS SECTION.
S. 2706 4
2. DEFINITIONS. AS USED IN THIS SECTION:
A. "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
THAN ONE.
B. "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNTS BY WHICH THE TAX
LEVY FOR THE PRIOR SCHOOL YEAR WAS BELOW THE APPLICABLE TAX LEVY LIMIT
FOR SUCH SCHOOL YEAR, IF ANY, BUT NO MORE THAN ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR.
C. "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH BUDG-
ETED EXPENDITURES RESULTING FROM THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF SCHOOL BUILDINGS, INCLUDING
DEBT SERVICE AND LEASE EXPENDITURES, SUBJECT TO THE APPROVAL OF THE
QUALIFIED VOTERS WHERE REQUIRED BY LAW.
D. "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
LOCAL EXPENDITURES, IF ANY.
E. "COMING SCHOOL YEAR" MEANS THE SCHOOL YEAR FOR WHICH TAX LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.
F. "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST OF THE
CURRENT YEAR MINUS THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD PRECEDING JANUARY FIRST OF THE PRIOR YEAR, DIVIDED BY: (II) THE
AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED
STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY
FIRST OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
G. "PRIOR SCHOOL YEAR" MEANS THE SCHOOL YEAR IMMEDIATELY PRECEDING THE
COMING SCHOOL YEAR.
H. "SCHOOL DISTRICT" MEANS A COMMON SCHOOL DISTRICT, UNION FREE SCHOOL
DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL DISTRICT OR A
CITY SCHOOL DISTRICT IN A CITY WITH LESS THAN ONE HUNDRED TWENTY-FIVE
THOUSAND INHABITANTS.
I. "TAX LEVY BASE" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT WOULD
BE AUTHORIZED TO LEVY WITHOUT THE ADDITION OF ANY AVAILABLE CARRYOVER
AMOUNT.
J. "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT IS
AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT THE
TAX LEVY LIMIT SHALL NOT INCLUDE THE DISTRICT'S CAPITAL TAX LEVY, IF
ANY.
3. COMPUTATION OF TAX LEVY LIMITS. A. THE TAX LEVY BASE FOR EACH
SCHOOL YEAR SHALL BE DETERMINED AS FOLLOWS:
(1) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL
YEAR.
(2) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR SCHOOL YEAR.
(3) SUBTRACT THE CAPITAL TAX LEVY FOR THE PRIOR SCHOOL YEAR, IF ANY.
(4) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(5) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
B. THE TAX LEVY LIMIT FOR THE COMING SCHOOL YEAR SHALL BE THE SUM OF
THE TAX LEVY BASE AND THE AVAILABLE CARRYOVER, IF ANY. NO LATER THAN
MARCH FIRST OF EACH YEAR, THE COMMISSIONER SHALL CALCULATE THE TAX LEVY
LIMIT FOR EACH SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND SHALL
S. 2706 5
NOTIFY EACH SCHOOL DISTRICT OF THE ALLOWABLE LEVY GROWTH FACTOR, THE
DISTRICT'S TAX LEVY BASE AND THE DISTRICT'S TAX LEVY LIMIT.
4. REORGANIZED SCHOOL DISTRICTS. WHEN TWO OR MORE SCHOOL DISTRICTS
REORGANIZE, THE COMMISSIONER SHALL DETERMINE THE TAX LEVY LIMIT FOR THE
REORGANIZED SCHOOL DISTRICT FOR THE FIRST SCHOOL YEAR FOLLOWING THE
REORGANIZATION BASED ON THE RESPECTIVE TAX LEVY LIMITS OF THE SCHOOL
DISTRICTS THAT FORMED THE REORGANIZED DISTRICT FROM THE LAST SCHOOL YEAR
IN WHICH THEY WERE SEPARATE DISTRICTS, PROVIDED THAT IN THE EVENT OF
FORMATION OF A NEW CENTRAL HIGH SCHOOL DISTRICT, THE TAX LEVY LIMITS FOR
THE NEW CENTRAL HIGH SCHOOL DISTRICT AND ITS COMPONENT SCHOOL DISTRICTS
SHALL BE DETERMINED IN ACCORDANCE WITH A METHODOLOGY PRESCRIBED BY THE
COMMISSIONER.
5. ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX LEVY
FOR A GIVEN SCHOOL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTAB-
LISHED PURSUANT TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE
SCHOOL DISTRICT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN
ACCORDANCE WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY
PRESCRIBE, AND SHALL USE SUCH FUNDS AND ANY INTEREST EARNED THEREON TO
OFFSET THE TAX LEVY FOR THE ENSUING SCHOOL YEAR.
S 3. The education law is amended by adding a new section 2023-b to
read as follows:
S 2023-B. VOTER APPROVAL OF TAX LEVY LIMITATIONS. 1. THE TAX LEVY FOR
ANY SCHOOL DISTRICT SUBJECT TO THE TAX LEVY LIMITATIONS ESTABLISHED BY
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS ARTICLE SHALL BE APPROVED BY
THE QUALIFIED VOTERS OF THE SCHOOL DISTRICT AS PROVIDED IN THIS SECTION.
AS USED IN THIS SECTION, THE TERM "TAX LEVY PROPOSITION" MEANS A PROPO-
SITION TO AUTHORIZE A TAX LEVY SUFFICIENT TO SUPPORT THE PROPOSED SCHOOL
DISTRICT BUDGET, EXCLUDING ANY PROPOSED CAPITAL TAX LEVY.
2. A. THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION OF A SCHOOL DISTRICT
SHALL PRESENT AT THE ANNUAL MEETING AND ELECTION A TAX LEVY PROPOSITION
IN SUBSTANTIALLY THE FOLLOWING FORM: "SHALL THE SCHOOL DISTRICT BE
AUTHORIZED TO IMPOSE A TAX LEVY FOR THE SCHOOL YEAR, EXCLUDING ANY CAPI-
TAL TAX LEVY, OF ______ WHEN THE STATUTORY TAX LEVY LIMIT FOR THAT
SCHOOL YEAR IS ______?"
B. EXCEPT AS OTHERWISE PROVIDED IN SECTION TWO THOUSAND TWENTY-THREE-A
OF THIS ARTICLE, IF THE PROPOSED TAX LEVY DOES NOT EXCEED THE TAX LEVY
LIMIT DETERMINED PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS
ARTICLE, THEN THE PROPOSITION SHALL BE APPROVED IF OVER FIFTY PERCENT OF
THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE. IF THE PROPOSED TAX LEVY
EXCEEDS THE TAX LEVY LIMIT DETERMINED PURSUANT TO SECTION TWO THOUSAND
TWENTY-THREE-A OF THIS ARTICLE, THEN THE PROPOSITION SHALL BE APPROVED
IF OVER SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE.
C. IF THE TAX LEVY PROPOSITION IS APPROVED BY THE QUALIFIED VOTERS,
THE TAX LEVY LIMIT IMPOSED THEREBY SHALL BE DEEMED TO BE THE TAX LEVY
LIMIT FOR THE SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND THE TRUS-
TEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT COMPLIES WITH SUCH
TAX LEVY LIMIT. IF THE TAX LEVY PROPOSITION IS NOT APPROVED BY THE
QUALIFIED VOTERS, THEN THE TRUSTEES OR BOARD OF EDUCATION SHALL PRESENT
ON THE THIRD TUESDAY OF JUNE A TAX LEVY PROPOSITION IN ACCORDANCE WITH
PARAGRAPHS A AND B OF THIS SUBDIVISION. IF, HOWEVER, THE TAX LEVY
PROPOSITION IS THEN NOT APPROVED BY THE QUALIFIED VOTERS, THEN THE TRUS-
TEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY
NO GREATER THAN THAT FOR THE PRIOR SCHOOL YEAR.
S 4. Subdivisions 1 and 3 of section 416 of the education law, subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
S. 2706 6
as amended by chapter 171 of the laws of 1996, are amended to read as
follows:
1. A majority of the voters of any school district, present and voting
at any annual or special district meeting, duly convened, may authorize
such acts and vote such taxes as they shall deem expedient for making
additions, alterations, repairs or improvements, to the sites or build-
ings belonging to the district, or for altering and equipping for
library use any former schoolhouse belonging to the district, or for the
purchase of other sites or buildings, or for a change of sites, or for
the purchase of land and buildings for agricultural, athletic, play-
ground or social center purposes, or for the erection of new buildings,
or for building a bus garage, or for [buying apparatus, implements, or
fixtures, or for paying the wages of teachers, and the necessary
expenses of the school, or for the purpose of paying any judgment, or
for] the payment or refunding of an outstanding bonded indebtedness[, or
for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
3. No addition to or change of site or purchase of a new site or tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse, or for the purchase of lands and buildings for agricul-
tural, athletic, playground or social center purposes, or for building
any new schoolhouse or for the erection of an addition to any school-
house already built, or for the payment or refunding of an outstanding
bonded indebtedness, shall be voted at any such meeting in a union free
school district or a city school district [which conducts annual budget
votes in accordance with article forty-one of this chapter pursuant to
section twenty-six hundred one-a of this chapter] IN A CITY WITH LESS
THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, unless a notice by
the board of education stating that such tax will be proposed, and spec-
ifying the object thereof and the amount to be expended therefor, shall
have been given in the manner provided herein for the notice of an annu-
al meeting. In a common school district the notice of a special meeting
to authorize any of the improvements enumerated in this section shall be
given as provided in [section two thousand six] THIS CHAPTER. The board
of education of a union free school district or a city school district
[which conducts annual budget votes in accordance with article forty-one
of this chapter pursuant to section twenty-six hundred one-a of this
chapter] IN A CITY WITH LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND
INHABITANTS, may determine that the vote upon any question to be submit-
ted at a special meeting as provided in this section shall be by ballot,
in which case it shall state in the notice of such special meeting the
hours during which the polls shall be kept open. Printed ballots may be
prepared by the board in advance of the meeting and the proposition or
propositions called for in the notice of the meeting may be submitted in
substantially the same manner as propositions to be voted upon at a
general election.
S 5. Subdivisions 14, 15, 18 and 24 of section 1604 of the education
law, subdivision 14 and 18 as amended by chapter 654 of the laws of
1953, are amended to read as follows:
14. To keep each of the schoolhouses under their charge, and its
furniture, school apparatus and appurtenances, in necessary and proper
repair, and make the same reasonably comfortable for use[, but shall not
expend therefor without vote of the district an amount to exceed one
hundred dollars in any one year].
S. 2706 7
15. To make any repairs and abate any nuisances, pursuant to the
direction of the district superintendent as herein provided, and provide
fuel, stoves or other heating apparatus, pails, brooms and other imple-
ments necessary to keep the schoolhouses and the schoolrooms clean, and
make them reasonably comfortable for use[, when no provision has been
made therefor by a vote of the district, or the sum voted by the
district for said purposes shall have proved insufficient].
18. To [expend in the] purchase [of] a dictionary, books, reprod-
uctions of standard works of art, maps, globes or other school appara-
tus, including implements, apparatus and supplies for instruction in
agriculture, or for conducting athletic playgrounds and social center
activities[, a sum not exceeding fifty dollars in any one year, without
a vote of the district].
24. To furnish lighting facilities, janitorial care and supervision
for highway underpasses [when authorized to do so by vote of a district
meeting under the provisions of subdivision twenty of section two thou-
sand fifteen of this chapter].
S 6. Section 1608 of the education law, as amended by section 5 of
part A of chapter 436 of the laws of 1997, subdivisions 2 and 4 as
amended by chapter 640 of the laws of 2008, subdivision 7 as amended by
section 4 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision 7 as amended by chapter 238 of the laws of 2007, is amended
to read as follows:
S 1608. Estimated expenses for ensuing year. 1. It shall be the duty
of the trustees of each common school district to present at the annual
budget hearing a detailed statement in writing of the amount of money
which will be required for the ensuing year for school purposes, speci-
fying the several purposes and the amount for each. The amount for each
purpose estimated necessary for payments to boards of cooperative educa-
tional services shall be shown in full, with no deduction of estimated
state aid. The amount of state aid provided and its percentage relation-
ship to the total expenditures shall also be shown. This section shall
not be construed to prevent the trustees from presenting such statement
at a budget hearing held not less than seven nor more than fourteen days
prior to a special meeting called for the purpose, nor from presenting a
supplementary and amended statement or estimate at any time.
2. Such statement shall be completed at least seven days before the
budget hearing at which it is to be presented and copies thereof shall
be prepared and made available, upon request and at the school district
offices, at any public library or free association library within the
district and on the school district's internet website, if one exists,
to residents within the district during the period of fourteen days
immediately preceding the annual meeting [and election or special
district meeting at which the budget vote will occur] and at such meet-
ing or hearing. The board shall also as a part of the notice required by
section two thousand three of this chapter give notice of the date, time
and place of the budget hearing and that a copy of such statement may be
obtained by any resident in the district at each schoolhouse in the
district in which school is maintained during certain designated hours
on each day other than a Saturday, Sunday or holiday during the fourteen
days immediately preceding such meeting. The board shall include notice
of the availability of such statement at least once during the school
year in any district-wide mailing distributed.
3. Commencing with the proposed budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, such proposed budget shall be in
plain language and shall be consistent with regulations promulgated by
S. 2706 8
the commissioner pursuant to subdivision twenty-six of section three
hundred five of this chapter. Categorization of and format for revenue,
including payments in lieu of taxes, property tax refunds from certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes in such data from the prior year and, in the case of [a resub-
mitted or] AN amended budget, changes in such information from the prior
year's submitted budget, shall be complete and accurate and set forth in
such a manner as to best promote public comprehension and readability.
4. Commencing with the proposed budget for the nineteen hundred nine-
ty-eight--ninety-nine school year, such proposed budget shall be
presented in three components: a program component, a capital component
and an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation with
local school district officials. The administrative component shall
include, but need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy, assistant, associate
or other superintendents under all existing employment contracts or
collective bargaining agreements, any and all expenditures associated
with the operation of the office of trustee or board of trustees, the
office of the superintendent of schools, general administration, the
school business office, consulting costs not directly related to direct
student services and programs, planning and all other administrative
activities. The program component shall include, but need not be limited
to, all program expenditures of the school district, including the sala-
ries and benefits of teachers and any school administrators or supervi-
sors who spend a majority of their time performing teaching duties, and
all transportation operating expenses. The capital component shall
include, but need not be limited to, all transportation capital, debt
service, and lease expenditures; costs resulting from judgments in tax
certiorari proceedings or the payment of awards from court judgments,
administrative orders or settled or compromised claims; and all facili-
ties costs of the school district, including facilities lease expendi-
tures, the annual debt service and total debt for all facilities
financed by bonds and notes of the school district, and the costs of
construction, acquisition, reconstruction, rehabilitation or improvement
of school buildings, provided that such budget shall include a rental,
operations and maintenance section that includes base rent costs, total
rent costs, operation and maintenance charges, cost per square foot for
each facility leased by the school district, and any and all expendi-
tures associated with custodial salaries and benefits, service
contracts, supplies, utilities, and maintenance and repairs of school
facilities. [For the purposes of the development of a budget for the
nineteen hundred ninety-eight--ninety-nine school year, the trustee or
board of trustees shall separate the district's program, capital and
administrative costs for the nineteen hundred ninety-seven--ninety-eight
school year in the manner as if the budget for such year had been
presented in three components.]
5. The trustee or board of trustees shall append to the statement of
estimated expenditures a detailed statement of the total compensation to
be paid to the superintendent of schools, and any assistant or associate
superintendents of schools in the ensuing school year, including a
delineation of the salary, annualized cost of benefits and any in-kind
or other form of remuneration. The trustees shall also append a list of
all other school administrators and supervisors, if any, whose annual
S. 2706 9
salary will be eighty-five thousand dollars or more in the ensuing
school year, with the title of their positions and annual salary identi-
fied; provided however, that the commissioner may adjust such salary
level to reflect increases in administrative salaries after June thirti-
eth, nineteen hundred ninety-eight. The trustees shall submit a copy of
such list and statement, in a form prescribed by the commissioner, of
compensation to the commissioner within five days after their prepara-
tion. The commissioner shall compile such data, together with the data
submitted pursuant to subdivision three of section seventeen hundred
sixteen of this chapter, into a single statewide compilation, which
shall be made available to the governor, the legislature, and other
interested parties upon request.
6. Each year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of general
circulation, appending it to copies of the proposed budget made publicly
available as required by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as required by the
commissioner. Such report card shall include measures of the academic
performance of the school district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the commissioner, the report
card shall also compare these measures to statewide averages for all
public schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report card shall
include, at a minimum, any information on the school district regarding
pupil performance and expenditure per pupil required to be included in
the annual report by the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts (i) identi-
fied as having fifteen percent or more of their students in special
education, or (ii) which have fifty percent or more of their students
with disabilities in special education programs or services sixty
percent or more of the school day in a general education building, or
(iii) which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate educa-
tional settings shall indicate on their school district report card
their respective percentages as defined in this [subparagraph] PARAGRAPH
and [subparagraphs] PARAGRAPHS (i) and (ii) of this [paragraph] SUBDIVI-
SION as compared to the statewide average.
7. a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local newspapers of general circulation, appending it to copies of the
proposed budget made publicly available as required by law, making it
available for distribution at the annual [meeting] BUDGET HEARING, and
otherwise disseminating it as required by the commissioner. Such report
card shall include: (i) the amount of total spending and total estimated
school tax levy that would result from adoption of the proposed budget
and the percentage increase or decrease in total spending and total
school tax levy from the school district budget for the preceding school
year; and (ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETER-
MINED PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE, THE
TAX LEVY PROPOSED BY THE DISTRICT, THE PROPOSED CAPITAL TAX LEVY, IF
ANY; AND (III) the projected enrollment growth for the school year for
S. 2706 10
which the budget is prepared, and the percentage change in enrollment
from the previous year; and [(iii)] (IV) the percentage increase in the
consumer price index, as defined in paragraph c of this subdivision; and
[(iv)] (V) the projected amount of the unappropriated unreserved fund
balance that will be retained if the proposed budget is adopted, the
projected amount of the reserved fund balance, the projected amount of
the appropriated fund balance, the percentage of the proposed budget
that the unappropriated unreserved fund balance represents, the actual
unappropriated unreserved fund balance retained in the school district
budget for the preceding school year, and the percentage of the school
district budget for the preceding school year that the actual unappro-
priated unreserved fund balance represents.
b. A copy of the property tax report card prepared for the annual
[district meeting] BUDGET HEARING shall be submitted to the department
in the manner prescribed by the department by the end of the business
day next following approval of the report card by the trustee or board
of trustees, but no later than twenty-four days prior to the statewide
uniform voting day. The department shall compile such data for all
school districts [whose budgets are subject to a vote of the qualified
voters] SUBJECT TO A TAX LEVY LIMITATION PURSUANT TO SECTION TWO THOU-
SAND TWENTY-THREE-A OF THIS TITLE and shall make such compilation avail-
able electronically at least ten days prior to the statewide uniform
voting day.
c. For purposes of this subdivision, "percentage increase in the
consumer price index" shall mean the percentage that represents the
product of one hundred and the quotient of: (i) the average of the
national consumer price indexes determined by the United States depart-
ment of labor for the twelve-month period preceding January first of the
current year minus the average of the national consumer price indexes
determined by the United States department of labor for the twelve-month
period preceding January first of the prior year, divided by (ii) the
average of the national consumer price indexes determined by the United
States department of labor for the twelve-month period preceding January
first of the prior year, with the result expressed as a decimal to two
places.
S 7. Subdivisions 22 and 28 of section 1709 of the education law
subdivision 22 as amended by chapter 682 of the laws of 2002, are
amended to read as follows:
22. To provide, purchase, lease, furnish and maintain buildings or
other suitable accommodations for the use of teachers or other employees
of the district [when duly authorized by a meeting of the district]
SUBJECT TO THE APPROVAL OF VOTERS WHERE OTHERWISE REQUIRED BY LAW, and
to raise by tax upon the taxable property of the district and moneys
necessary for such purposes; and also to provide, maintain and operate a
cafeteria or restaurant service for the use of pupils and teachers while
at school. Such cafeteria may be used by the community for school
related functions and activities and to furnish meals to the elderly
residents, sixty years of age or older, of the district. Such CAFETERIA
OR RESTAURANT SERVICE AND SUCH utilization shall be subject to the
approval of the board of education. Charges shall be sufficient to meet
the direct cost of preparing and serving such meals, reducible by avail-
able reimbursements.
28. To furnish lighting facilities, janitorial care and supervision
for highway underpasses [when authorized to do so by vote of a district
meeting under the provisions of subdivision twenty of section two thou-
sand fifteen of this chapter].
S. 2706 11
S 8. Section 1716 of the education law, as amended by section 7 of
part A of chapter 436 of the laws of 1997, subdivisions 2 and 4 as
amended by chapter 640 of the laws of 2008, subdivision 7 as amended by
section 5 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision 7 as amended by chapter 238 of the laws of 2007, is amended
to read as follows:
S 1716. Estimated expenses for ensuing year. 1. It shall be the duty
of the board of education of each district to present at the annual
budget hearing a detailed statement in writing of the amount of money
which will be required for the ensuing year for school purposes, speci-
fying the several purposes and the amount for each. The amount for each
purpose estimated necessary for payments to boards of cooperative educa-
tional services shall be shown in full, with no deduction of estimated
state aid. The amount of state aid provided and its percentage relation-
ship to the total expenditures shall also be shown. This section shall
not be construed to prevent the board from presenting such statement at
a budget hearing held not less than seven nor more than fourteen days
prior to a special meeting called for the purpose, nor from presenting a
supplementary and amended statement or estimate at any time.
2. Such statement shall be completed at least seven days before the
budget hearing at which it is to be presented and copies thereof shall
be prepared and made available, upon request and at the school district
offices, at any public library or free association library within the
district and on the school district's internet website, if one exists,
to residents within the district during the period of fourteen days
immediately preceding the annual meeting [and election or special
district meeting at which the budget vote will occur] and at such meet-
ing or hearing. The board shall also as a part of the notice required by
section two thousand four of this chapter give notice of the date, time
and place of the budget hearing and that a copy of such statement may be
obtained by any resident in the district at each schoolhouse in the
district in which school is maintained during certain designated hours
on each day other than a Saturday, Sunday or holiday during the fourteen
days immediately preceding such meeting. The board shall include notice
of the availability of such statement at least once during the school
year in any district-wide mailing distributed.
3. Commencing with the proposed budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, such proposed budget shall be in
plain language and shall be consistent with regulations promulgated by
the commissioner pursuant to subdivision twenty-six of section three
hundred five of this chapter. Categorization of and format for revenue,
including payments in lieu of taxes, property tax refunds from certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes in such data from the prior year and, in the case of [a resub-
mitted or] AN amended budget, changes in such information from the prior
year submitted budget, shall be complete and accurate and set forth in
such a manner as to best promote public comprehension and readability.
4. Commencing with the proposed budget for the nineteen hundred nine-
ty-eight--ninety-nine school year, such proposed budget shall be
presented in three components: a program component, a capital component
and an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation with
local school district officials. The administrative component shall
include, but need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business admin-
S. 2706 12
istrators, superintendents of schools and deputy, assistant, associate
or other superintendents under all existing employment contracts or
collective bargaining agreements, any and all expenditures associated
with the operation of the board of education, the office of the super-
intendent of schools, general administration, the school business
office, consulting costs not directly related to direct student services
and programs, planning and all other administrative activities. The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of teachers and any school administrators or supervisors who spend a
majority of their time performing teaching duties, and all transporta-
tion operating expenses. The capital component shall include, but need
not be limited to, all transportation capital, debt service, and lease
expenditures; costs resulting from judgments in tax certiorari
proceedings or the payment of awards from court judgments, administra-
tive orders or settled or compromised claims; and all facilities costs
of the school district, including facilities lease expenditures, the
annual debt service and total debt for all facilities financed by bonds
and notes of the school district, and the costs of construction, acqui-
sition, reconstruction, rehabilitation or improvement of school build-
ings, provided that such budget shall include a rental, operations and
maintenance section that includes base rent costs, total rent costs,
operation and maintenance charges, cost per square foot for each facili-
ty leased by the school district, and any and all expenditures associ-
ated with custodial salaries and benefits, service contracts, supplies,
utilities, and maintenance and repairs of school facilities. [For the
purposes of the development of a budget for the nineteen hundred nine-
ty-eight--ninety-nine school year, the board of education shall separate
the district's program, capital and administrative costs for the nine-
teen hundred ninety-seven--ninety-eight school year in the manner as if
the budget for such year had been presented in three components.]
5. The board of education shall append to the statement of estimated
expenditures a detailed statement of the total compensation to be paid
to the superintendent of schools, and any assistant or associate super-
intendents of schools in the ensuing school year, including a deline-
ation of the salary, annualized cost of benefits and any in-kind or
other form of remuneration. The board shall also append a list of all
other school administrators and supervisors, if any, whose annual salary
will be eighty-five thousand dollars or more in the ensuing school year,
with the title of their positions and annual salary identified; provided
however, that the commissioner may adjust such salary level to reflect
increases in administrative salaries after June thirtieth, nineteen
hundred ninety-eight. The board of education shall submit a copy of such
list and statement, in a form prescribed by the commissioner, of compen-
sation to the commissioner within five days after their preparation. The
commissioner shall compile such data, together with the data submitted
pursuant to subdivision four of section sixteen hundred eight of this
[chapter] TITLE, into a single statewide compilation, which shall be
made available to the governor, the legislature, and other interested
parties upon request.
6. Each year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of general
circulation, appending it to copies of the proposed budget made publicly
available as required by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as required by the
S. 2706 13
commissioner. Such report card shall include measures of the academic
performance of the school district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the commissioner, the report
card shall also compare these measures to statewide averages for all
public schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report card shall
include, at a minimum, any information of the school district regarding
pupil performance and expenditure per pupil required to be included in
the annual report by the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts (i) identi-
fied as having fifteen percent or more of their students in special
education, or (ii) which have fifty percent or more of their students
with disabilities in special education programs or services sixty
percent or more of the school day in a general education building, or
(iii) which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate educa-
tional settings shall indicate on their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
7. a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers of general circulation, appending it to copies of the proposed
budget made publicly available as required by law, making it available
for distribution at the annual [meeting] BUDGET HEARING, and otherwise
disseminating it as required by the commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy that would result from adoption of the proposed budget and the
percentage increase or decrease in total spending and total school tax
levy from the school district budget for the preceding school year; and
(ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETERMINED PURSUANT
TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE, THE TAX LEVY
PROPOSED BY THE DISTRICT, AND THE PROPOSED CAPITAL TAX LEVY, IF ANY; AND
(III) the projected enrollment growth for the school year for which the
budget is prepared, and the percentage change in enrollment from the
previous year; and [(iii)] (IV) the percentage increase in the consumer
price index, as defined in paragraph c of this subdivision; and [(iv)]
(V) the projected amount of the unappropriated unreserved fund balance
that will be retained if the proposed budget is adopted, the projected
amount of the reserved fund balance, the projected amount of the appro-
priated fund balance, the percentage of the proposed budget that the
unappropriated unreserved fund balance represents, the actual unappro-
priated unreserved fund balance retained in the school district budget
for the preceding school year, and the percentage of the school district
budget for the preceding school year that the actual unappropriated
unreserved fund balance represents.
b. A copy of the property tax report card prepared for the annual
[district meeting] BUDGET HEARING shall be submitted to the department
in the manner prescribed by the department by the end of the business
day next following approval of the report card by the board of educa-
tion, but no later than twenty-four days prior to the statewide uniform
voting day. The department shall compile such data for all school
districts [whose budgets are subject to a vote of the qualified voters]
S. 2706 14
SUBJECT TO A TAX LEVY LIMITATION PURSUANT TO SECTION TWO THOUSAND TWEN-
TY-THREE-A OF THIS TITLE and shall make such compilation available elec-
tronically at least ten days prior to the statewide uniform voting day.
c. For purposes of this subdivision, "percentage increase in the
consumer price index" shall mean the percentage that represents the
product of one hundred and the quotient of: (i) the average of the
national consumer price indexes determined by the United States depart-
ment of labor for the twelve-month period preceding January first of the
current year minus the average of the national consumer price indexes
determined by the United States department of labor for the twelve-month
period preceding January first of the prior year, divided by (ii) the
average of the national consumer price indexes determined by the United
States department of labor for the twelve-month period preceding January
first of the prior year, with the result expressed as a decimal to two
places.
S 9. Section 1718 of the education law, as amended by chapter 774 of
the laws of 1965 and subdivision 2 as amended by chapter 82 of the laws
of 1995, is amended to read as follows:
S 1718. Limitation upon expenditures. 1. No board of education shall
incur a district liability in excess of the amount appropriated [by a
district meeting] IN THE BUDGET APPROVED BY THE BOARD OF EDUCATION
unless such board is specially authorized by law to incur such liabil-
ity.
2. Notwithstanding the provisions of subdivision one of this section,
grants in aid received from the state and federal governments for
specific purposes, other state AID OR grants in aid [identified by the
commissioner] for general use [as specified by the board of education],
other gifts which are required to be spent for particular objects or
purposes and insurance proceeds received for the loss, theft, damage or
destruction of real or personal property, when proposed to be used or
applied to repair or replace such property, may be appropriated by
resolution of the board of education at any time for such objects or
purposes.
S 10. Section 2005 of the education law, as amended by section 3 of
part M of chapter 57 of the laws of 2005, is amended to read as follows:
S 2005. Special meeting to transact business of annual meeting. When-
ever the time for holding the annual meeting in a school district shall
pass without such meeting being held, a special meeting[, to be held on
the date specified for a school budget revote pursuant to subdivision
three of section two thousand seven of this part,] shall thereafter be
called by the trustees or by the clerk of such district for the purpose
of transacting the business of the annual meeting; and if no such meet-
ing be called by the trustees or the clerk within ten days after such
time shall have passed, the district superintendent of the supervisory
district in which said school district is situated or the commissioner
[of education] may order any inhabitant of such district to give notice
of such meeting in the manner provided in section two thousand one of
this part, and the officers of the district shall make to such meeting
the reports required to be made at the annual meeting, subject to the
same penalty in case of neglect; and the officers elected at such meet-
ing shall hold their respective offices only until the next annual meet-
ing and until their successors are elected and shall have qualified.
Notice of such annual meeting shall comply with the requirements of
section two thousand three or section two thousand four of this part by
publishing such notices once in each week within the two weeks next
preceding such special meeting, the first publication to be at least
S. 2706 15
fourteen days before such meeting and any required posting to be four-
teen days before the time of such meeting. [If the qualified voters at
such special district meeting defeat the school district budget, the
trustees or board of education shall adopt a contingency budget pursuant
to section two thousand twenty-three of this part. Notwithstanding any
other provision in law, the trustees or board of education following the
adoption of a contingency budget may call a special district meeting for
a second vote on the proposed budget pursuant to the requirements of
subdivision three of section two thousand seven or subdivision three of
section two thousand six of this chapter.]
S 11. Subdivision 3 of section 2006 of the education law is REPEALED.
S 12. Subdivision 3 of section 2007 of the education law, as amended
by section 5 of part M of chapter 57 of the laws of 2005, is amended to
read as follows:
3. a. Notwithstanding the provisions of subdivisions one and two of
this section, and of section two thousand four of this part, whenever
the [voters of the district shall have defeated the budget of the
district, in whole or in part, or whenever the] board of education shall
have rejected all bids for a contract or contracts for public work,
transportation or purchase[,] and [whenever in either such case the
board of education shall deem] DEEMS it necessary and proper to call a
special meeting to take appropriate action, the board of education shall
be authorized to give the notices required by subdivision one of section
two thousand four of this part by publishing such notices once in each
week within the two weeks next preceding such special meeting, the first
publication to be at least fourteen days before such meeting and any
required posting to be fourteen days before the time of such meeting.
b. [A school budget revote called pursuant to paragraph a of this
subdivision shall be held on the third Tuesday of June, provided, howev-
er that such budget revote shall be held on the second Tuesday in June
if the commissioner at the request of a local school board certifies no
later than March first that such vote would conflict with religious
observances.
c.] Notwithstanding the provisions of section two thousand fourteen of
this part, where a school district shall have adopted personal registra-
tion, the board of registration shall meet on such day or days as shall
be fixed by the board of education, the last day of which, however,
shall not be more than seven nor less than two days preceding any school
district meeting notices for which shall have been given as provided in
this subdivision.
S 13. Section 2008 of the education law is amended by adding a new
subdivision 3 to read as follows:
3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IT
SHALL NOT BE WITHIN THE POWER OF THE VOTERS OF A SCHOOL DISTRICT TO
SUBMIT A PROPOSITION THAT REQUIRES THE EXPENDITURE OF MONEY, PROVIDED
THAT THE VOTERS MAY SUBMIT A PROPOSITION TO CHANGE THE MILEAGE LIMITA-
TIONS ON TRANSPORTATION PURSUANT TO SUBDIVISION NINETEEN OF SECTION TWO
THOUSAND TWENTY-ONE OF THIS PART.
S 14. Subdivisions 10, 11, 12, 15, 16, 17, 18, 20 and 21 of section
2021 of the education law are REPEALED and subdivisions 8 and 19, such
section as renumbered by chapter 801 of the laws of 1953, are amended to
read as follows:
8. To vote a tax upon the taxable property of the district, to
purchase, lease and improve such sites or an addition to such sites and
grounds for the purposes specified in [the preceding] subdivision SEVEN
OF THIS SECTION, to hire or purchase rooms or buildings for school rooms
S. 2706 16
or schoolhouses, or to build schoolhouses[; to keep in repair and
furnish the same with necessary fuel, furniture and appurtenances, and
to purchase such implements, apparatus and supplies as may be necessary
to provide instruction in agriculture and other subjects, and for the
organization and conduct of athletic, playground and other social center
work].
19. To [provide, by tax or otherwise, for the conveyance of] DETERMINE
WHETHER TRANSPORTATION SHOULD BE PROVIDED PURSUANT TO PARAGRAPH A OF
SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED THIRTY-FIVE OF THIS CHAP-
TER TO pupils residing in [a] THE school district WHO ARE IN GRADES
KINDERGARTEN THROUGH EIGHT AND LIVE LESS THAN TWO MILES FROM THE SCHOOL
THEY LEGALLY ATTEND OR ARE IN GRADES NINE THROUGH TWELVE AND LIVE LESS
THAN THREE MILES FROM SUCH SCHOOL OR TO PUPILS IN ANY GRADE WHO LIVE
MORE THAN FIFTEEN MILES FROM THE SCHOOL THEY LEGALLY ATTEND, (a) to the
elementary or high schools, or both, maintained in such district and/or
(b) to the elementary or high schools, or both, in any city or district
with which an education contract shall have been made, and/or (c) to the
elementary or high schools, or both, other than public, situated within
the district or an adjacent district or city, whenever such district
shall have contracted with the school authorities of any city, or with
another school district, for the education therein of the pupils resid-
ing in such school district, or whenever in any school district pupils
of school age shall reside so remote from the schoolhouse therein or the
elementary or high school they legally attend, within or without the
district, that they are practically deprived of school advantages during
any portion of the school year.
S 15. Section 2022 of the education law, as amended by section 23 of
part A of chapter 436 of the laws of 1997, subdivisions 1 and 3 as
amended by section 8 of part C of chapter 58 of the laws of 1998, subdi-
vision 2-a as amended by section 3 of part A of chapter 60 of the laws
of 2000, paragraph b of subdivision 2-a as amended by section 5 of part
W of chapter 57 of the laws of 2008, subdivision 4 as amended by section
7 of part M of chapter 57 of the laws of 2005 and subdivision 6 as added
by chapter 61 of the laws of 2003, is amended to read as follows:
S 2022. [Vote on] ADOPTION OF school district budgets [and on the];
ANNUAL DISTRICT MEETING AND election of school district trustees and
board of education members. 1. Notwithstanding any law, rule or regu-
lation to the contrary, the ANNUAL DISTRICT MEETING AND election of
trustees or members of the board of education, and the TAX LEVY PROPOSI-
TION vote [upon the appropriation of the necessary funds to meet the
estimated expenditures,] in any common school district, union free
school district, central school district or central high school district
shall be held [at the annual meeting and election] on the third Tuesday
in May, provided, however, that such election shall be held on the
second Tuesday in May if the commissioner at the request of a local
school board certifies no later than March first that such election
would conflict with religious observances. [When such election or vote
is taken by recording the ayes and noes of the qualified voters attend-
ing, a majority of the qualified voters present and voting, by a hand or
voice vote, may determine to take up the question of voting the neces-
sary funds to meet the estimated expenditures for a specific item sepa-
rately, and the qualified voters present and voting may increase the
amount of any estimated expenditures or reduce the same, except for
teachers' salaries, and the ordinary contingent expenses of the
schools.] The sole trustee, board of trustees or board of education of
every common, union free, central or central high school district and
S. 2706 17
every city school district to which this article applies shall hold a
budget hearing not less than seven nor more than fourteen days prior to
the annual meeting and election [or special district meeting at which a
school budget vote will occur], and shall prepare and present to the
voters at such budget hearing a proposed school district budget for the
ensuing school year. IF THE QUALIFIED VOTERS HAVE APPROVED A TAX LEVY
PROPOSITION IN ACCORDANCE WITH SECTION TWO THOUSAND TWENTY-THREE-B OF
THIS PART, SUCH TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT
COMPLIES WITH SUCH PROPOSITION. IF NO TAX LEVY PROPOSITION HAS BEEN
APPROVED BY THE QUALIFIED VOTERS, THEN THE TRUSTEES OR BOARD OF EDUCA-
TION SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY, EXCLUDING ANY CAPI-
TAL TAX LEVY, THAT IS NO GREATER THAN THE TAX LEVY BASE DETERMINED
PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
2. [Except as provided in subdivision four of this section, nothing]
NOTHING in this section shall preclude the trustees or board of educa-
tion, in their discretion, from submitting additional items of expendi-
ture to the voters for approval as separate propositions or the voters
from submitting propositions pursuant to [section] SECTIONS two thousand
eight and two thousand thirty-five of this [article] PART.
2-a. Every common, union free, central, central high school district
and city school district to which this article applies shall mail a
school budget notice to all qualified voters of the school district
after the date of the budget hearing, but no later than six days prior
to the annual meeting and election [or special district meeting at which
a school budget vote will occur]. The school budget notice shall compare
the percentage increase or decrease in total spending under the proposed
budget over total spending under the school district budget adopted for
the current school year, with the percentage increase or decrease in the
consumer price index, from January first of the prior school year to
January first of the current school year, and shall also include [the
information required by paragraphs a and b of this subdivision. The
notice shall also set forth the date, time and place of the school budg-
et vote, in the same manner as in the notice of annual meeting] THE
DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETERMINED PURSUANT TO
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, THE TAX LEVY PROPOSED
BY THE DISTRICT AND THE PROPOSED CAPITAL TAX LEVY, IF ANY. Such notice
shall be in a form prescribed by the commissioner.
[a. Commencing with the proposed budget for the two thousand one--two
thousand two school year, such notice shall also include a description
of how total spending and the tax levy resulting from the proposed budg-
et would compare with a projected contingency budget adopted pursuant to
section two thousand twenty-three of this article, assuming that such
contingency budget is adopted on the same day as the vote on the
proposed budget. Such comparison shall be in total and by component
(program, capital and administrative), and shall include a statement of
the assumptions made in estimating the projected contingency budget.
b.] Commencing with the proposed budget for the two thousand eight--
two thousand nine school year, such notice shall also include, in a
format prescribed by the commissioner, an estimate of the tax savings
that would be available to an eligible homeowner under the basic school
tax relief (STAR) exemption authorized by section four hundred twenty-
five of the real property tax law if the proposed budget were adopted.
Such estimate shall be made in the manner prescribed by the commission-
er, in consultation with the office of real property services.
3. In all elections for trustees or members of boards of education or
votes involving the expenditure of money, or authorizing the levy of
S. 2706 18
taxes, the vote thereon shall be by ballot, or, in school districts that
prior to nineteen hundred ninety-eight conducted their vote at the annu-
al meeting, may be ascertained by taking and recording the ayes and noes
of such qualified voters attending and voting at such district meetings.
4. [In the event that the original proposed budget is not approved by
the voters, the sole trustee, trustees or board of education may adopt a
final budget pursuant to subdivision five of this section or resubmit to
the voters the original or a revised budget pursuant to subdivision
three of section two thousand seven of this part. Upon one defeat of
such resubmitted budget, the sole trustee, trustees or board of educa-
tion shall adopt a final budget pursuant to subdivision five of this
section.] Notwithstanding any other provision of law to the contrary,
[the school district budget for any school year, or any part of such
budget or] any propositions involving the expenditure of money for such
school year shall not be submitted for a vote of the qualified voters
more than twice.
[5. If the qualified voters fail to approve the proposed school
district budget upon resubmission or upon a determination not to resub-
mit for a second vote pursuant to subdivision four of this section, the
sole trustee, trustees or board of education, after applying thereto the
public school moneys and other moneys received or to be received for
that purpose, shall levy a tax for the sum necessary for teachers' sala-
ries and other ordinary contingent expenses in accordance with the
provisions of this subdivision and section two thousand twenty-three of
this article.
6. Notwithstanding the provisions of subdivision four of section eigh-
teen hundred four and subdivision five of section nineteen hundred six
of this title, subdivision one of section two thousand two of this arti-
cle, subdivision one of this section, subdivision two of section twen-
ty-six hundred one-a of this title and any other provision of law to the
contrary, the annual district meeting and election of every common,
union free, central and central high school district and the annual
meeting of every city school district in a city having a population of
less than one hundred twenty-five thousand inhabitants that is scheduled
to be held on the third Tuesday of May, two thousand three is hereby
adjourned until the first Tuesday in June, two thousand three. The trus-
tees or board of education of each such school district shall provide
notice of such adjourned meeting to the qualified voters in the manner
prescribed for notice of the annual meeting, and such notice shall
provide for an adjourned budget hearing. The adjourned district meeting
or district meeting and election shall be deemed the annual meeting or
annual meeting and election of the district for all purposes under this
title and the date of the adjourned meeting shall be deemed the state-
wide uniform voting day for all purposes under this title. Notwith-
standing the provisions of subdivision seven of section sixteen hundred
eight or subdivision seven of section seventeen hundred sixteen of this
title or any other provision of law, rule or regulation to the contrary,
in two thousand three the property tax report card shall be submitted to
the department no later than twenty days prior to the date of the
adjourned meeting and the department shall make its compilation avail-
able electronically at least seven days prior to such date.]
S 16. Section 2023 of the education law is REPEALED.
S 17. Subdivision 2 of section 2035 of the education law, as amended
by chapter 111 of the laws of 1979, is amended to read as follows:
2. In common school districts the manner of making nominations or
submitting propositions by anyone other than the trustees and in union
S. 2706 19
free school districts the manner of submitting propositions by anyone
other than the board of education for the purpose of preparing ballots
for the machine shall be prescribed by a rule previously adopted by the
trustees or board of education; provided, however, that the petition,
certificate, declaration, notice or other paper required by such rule,
for the making of any such nomination or submission, except as to a
question or proposition required by law to be stated in the published or
posted notice of the meeting shall be filed with the trustees or board
of education not later than thirty days before the meeting or election.
Any nomination may be rejected by the trustees if the candidate is inel-
igible for the office or has declared his unwillingness to serve; any
proposition may be rejected by the trustees or board of education if the
purpose of the proposition is not within the power of the voters, or
where A PROPOSITION TO CHANGE THE MILEAGE LIMITATIONS ON TRANSPORTATION
PURSUANT TO SUBDIVISION NINETEEN OF SECTION TWO THOUSAND TWENTY-ONE OF
THIS PART WOULD REQUIRE the expenditure of ADDITIONAL moneys [is
required by the proposition], if the proposition fails to include the
necessary specific appropriation. Any such rule may be amended from
time to time and may state that a reasonable minimum number of signa-
tures shall be required for submission. The trustees or board of educa-
tion shall cause such rule, and amendments from time to time, to be
printed for general distribution in the district. Provided, however,
that the provisions of any special law relating to nominations and
elections in any union free school district shall continue to remain in
force, and the manner of making nominations and the conduct of meetings
and elections, shall conform to such special law.
S 18. Paragraph a of subdivision 9 and paragraphs a and b of subdivi-
sion 12 of section 2503 of the education law, as amended by chapter 171
of the laws of 1996, are amended to read as follows:
a. Shall promote the best interests of the schools and other activ-
ities committed to its care, and shall authorize, or in its discretion
conduct, and maintain such extra classroom activities, including the
operation of cafeterias or restaurant service for use by pupils and
teachers, as the board, from time to time, shall deem proper. Such
cafeterias or restaurant service may be used by the community for school
related functions and activities and to furnish meals to the elderly
residents, sixty years of age or older, of the district. Such utiliza-
tion AND THE OPERATION OF CAFETERIAS OR RESTAURANT SERVICE shall be
subject to the approval of the board of education[, and shall be subject
to voter approval unless the cafeteria or restaurant service was oper-
ated during the preceding school year and requires no tax levy]. Charges
shall be sufficient to meet the direct cost of preparing and serving
such meals, reducible by available reimbursements.
a. to and from schools within the school district for distances
greater than two or three miles, as applicable, and to and from schools
outside the district within the mileage limitations prescribed in para-
graph a of subdivision one of section thirty-six hundred thirty-five of
this chapter shall always be [an ordinary contingent expense] A CHARGE
UPON THE SCHOOL DISTRICT, and
b. for distances less than two or three miles, as applicable, or for
greater than fifteen miles to and from schools outside the district
shall be [an ordinary contingent expense] A CHARGE UPON THE SCHOOL
DISTRICT if: (i) such transportation was provided during the preceding
school year and the qualified voters have not passed a special proposi-
tion constricting the mileage limitations for the current school year
from those in effect in the prior year, or (ii) the qualified voters
S. 2706 20
have passed a special proposition expanding the mileage limitations in
effect in the prior year.
S 19. Section 2601-a of the education law, as added by chapter 171 of
the laws of 1996, subdivision 2 as amended by section 6 and subdivision
4 as amended by section 8 of part M of chapter 57 of the laws of 2005,
subdivision 3 as amended by chapter 640 of the laws of 2008, subdivision
5 as amended by section 29 of part A of chapter 436 of the laws of 1997,
subdivision 6 as amended and subdivision 7 as added by chapter 474 of
the laws of 1996, is amended to read as follows:
S 2601-a. Procedures for [adoption of school budgets] ANNUAL AND
SPECIAL DISTRICT MEETINGS in small city school districts. 1. The board
of education of each city school district subject to this article [shall
provide for the submission of a budget for approval of the voters pursu-
ant to the provisions of this section.
2. The board of education] shall ADOPT A SCHOOL DISTRICT BUDGET AND
conduct all annual and special school district meetings for the purpose
of [adopting a school district budget] VOTING ON PROPOSITIONS FOR THE
EXPENDITURE OF MONEY, INCLUDING BUT NOT LIMITED TO VOTES PURSUANT TO
SECTION FOUR HUNDRED SIXTEEN OF THIS CHAPTER, AND VOTING ON TAX LEVY
PROPOSITIONS PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-B OF THIS
TITLE, in the same manner as a union free school district in accordance
with the provisions of article forty-one of this title, except as other-
wise provided by this section. The annual meeting and election of each
such city school district shall be held on the third Tuesday of May in
each year, provided, however that such annual meeting and election shall
be held on the second Tuesday in May if the commissioner at the request
of a local school board certifies no later than March first that such
election would conflict with religious observances[, and any school
budget revote shall be held on the date and in the same manner specified
in subdivision three of section two thousand seven of this title]. The
provisions of this article, and where applicable subdivisions nine and
nine-a of section twenty-five hundred two of this title, governing the
qualification and registration of voters, and procedures for the nomi-
nation and election of members of the board of education shall continue
to apply, and shall govern the qualification and registration of voters
and voting procedures with respect to the adoption of a school district
budget.
[3.] 2. The board of education shall prepare a proposed school
district budget for the ensuing year in accordance with the provisions
of section seventeen hundred sixteen of this chapter, including all
provisions relating to required notices and appendices to the statement
of expenditures. No board of education shall incur a school district
liability except as authorized by the provisions of section seventeen
hundred eighteen of this chapter. Such proposed budget shall be
presented in three components: a program component, a capital component
and an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation with
local school district officials. The administrative component shall
include, but need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy, assistant, associate
or other superintendents under all existing employment contracts or
collective bargaining agreements, any and all expenditures associated
with the operation of the board of education, the office of the super-
intendent of schools, general administration, the school business
S. 2706 21
office, consulting costs not directly related to direct student services
and programs, planning and all other administrative activities. The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of teachers and any school administrators or supervisors who spend a
majority of their time performing teaching duties, and all transporta-
tion operating expenses. The capital component shall include, but need
not be limited to, all transportation capital, debt service, and lease
expenditures; costs resulting from judgments in tax certiorari
proceedings or the payment of awards from court judgments, administra-
tive orders or settled or compromised claims; and all facilities costs
of the school district, including facilities lease expenditures, the
annual debt service and total debt for all facilities financed by bonds
and notes of the school district, and the costs of construction, acqui-
sition, reconstruction, rehabilitation or improvement of school build-
ings, provided that such budget shall include a rental, operations and
maintenance section that includes base rent costs, total rent costs,
operation and maintenance charges, cost per square foot for each facili-
ty leased by the school district, and any and all expenditures associ-
ated with custodial salaries and benefits, service contracts, supplies,
utilities, and maintenance and repairs of school facilities. [For the
purposes of the development of a budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, the board of education shall sepa-
rate its program, capital and administrative costs for the nineteen
hundred ninety-six--ninety-seven school year in the manner as if the
budget for such year had been presented in three components.] Except as
provided in subdivision [four] THREE of this section, nothing in this
section shall preclude the board, in its discretion, from submitting
additional items of expenditure to the voters for approval as separate
propositions or the voters from submitting propositions [pursuant] to
THE EXTENT AUTHORIZED BY sections two thousand eight and two thousand
thirty-five of this chapter.
[4. In the event the qualified voters of the district reject the budg-
et proposed pursuant to subdivision three of this section, the board may
propose to the voters a revised budget pursuant to subdivision three of
section two thousand seven of this title or may adopt a contingency
budget pursuant to subdivision five of this section and subdivision five
of section two thousand twenty-two of this title.] 3. The [school
district budget for any school year, or any part of such budget or]
BOARD OF EDUCATION SHALL NOT SUBMIT any propositions involving the
expenditure of money for such school year [shall not be submitted] for a
vote of the qualified voters more than twice. [In the event the quali-
fied voters reject the resubmitted budget, the board shall adopt a
contingency budget in accordance with subdivision five of this section
and subdivision five of such section two thousand twenty-two of this
title.
5. If the qualified voters fail or refuse to vote the sum estimated to
be necessary for teachers' salaries and other ordinary contingent
expenses, the board shall adopt a contingency budget in accordance with
this subdivision and shall levy a tax for that portion of such sum
remaining after applying thereto the moneys received or to be received
from state, federal or other sources, in the same manner as if the budg-
et had been approved by the qualified voters; subject to the limitations
imposed in subdivision four of section two thousand twenty-three of this
chapter and this subdivision. The administrative component shall not
comprise a greater percentage of the contingency budget exclusive of the
S. 2706 22
capital component than the lesser of (1) the percentage the administra-
tive component had comprised in the prior year budget exclusive of the
capital component; or (2) the percentage the administrative component
had comprised in the last proposed defeated budget exclusive of the
capital component. Such contingency budget shall include the sum deter-
mined by the board to be necessary for:
(a) teachers' salaries, including the salaries of all members of the
teaching and supervising staff;
(b) items of expense specifically authorized by statute to be incurred
by the board of education, including, but not limited to, expenditures
for transportation to and from regular school programs included as ordi-
nary contingent expenses in subdivision twelve of section twenty-five
hundred three of this chapter, expenditures for textbooks, required
services for non-public school students, school health services, special
education services, kindergarten and nursery school programs, and the
district's share of the administrative costs and costs of services
provided by a board of cooperative educational services;
(c) items of expense for legal obligations of the district, including,
but not limited to, contractual obligations, debt service, court orders
or judgments, orders of administrative bodies or officers, and standards
and requirements of the board of regents and the commissioner that have
the force and effect of law;
(d) the purchase of library books and other instructional materials
associated with a library;
(e) items of expense necessary to maintain the educational programs of
the district, preserve the property of the district or protect the
health and safety of students and staff, including, but not limited to,
support services, pupil personnel services, the necessary salaries for
the necessary number of non-teaching employees, necessary legal
expenses, water and utility charges, instructional supplies for teach-
ers' use, emergency repairs, temporary rental of essential classroom
facilities, and expenditures necessary to advise school district voters
concerning school matters; and
(f) expenses incurred for interschool athletics, field trips and other
extracurricular activities; and
(g) any other item of expense determined by the commissioner to be an
ordinary contingent expense in any school district.
6. The commissioner shall determine appeals raising questions as to
what items of expenditure are ordinary contingent expenses pursuant to
subdivision five of this section in accordance with section two thousand
twenty-four and three hundred ten of this chapter.
7.] 4. Each year, the board of education shall prepare a school
district report card, pursuant to regulations of the commissioner, and
shall make it publicly available by transmitting it to local newspapers
of general circulation, appending it to copies of the proposed budget
made publicly available as required by law, making it available for
distribution at the annual meeting, and otherwise disseminating it as
required by the commissioner. Such report card shall include measures of
the academic performance of the school district, on a school by school
basis, and measures of the fiscal performance of the district, as
prescribed by the commissioner. Pursuant to regulations of the commis-
sioner, the report card shall also compare these measures to statewide
averages for all public schools, and statewide averages for public
schools of comparable wealth and need, developed by the commissioner.
Such report card shall include, at a minimum, any information on the
school district regarding pupil performance and expenditure per pupil
S. 2706 23
required to be included in the annual report by the regents to the
governor and the legislature pursuant to section two hundred fifteen-a
of this chapter; and any other information required by the commissioner.
School districts (i) identified as having fifteen percent or more of
their students in special education, or (ii) which have fifty percent or
more of their students with disabilities in special education programs
or services sixty percent or more of the school day in a general educa-
tion building, or (iii) which have eight percent or more of their
students with disabilities in special education programs in public or
private separate educational settings shall indicate on their school
district report card their respective percentages as defined in this
paragraph and paragraphs (i) and (ii) of this subdivision as compared to
the statewide average.
S 20. Paragraph b-1 of subdivision 4 of section 3602 of the education
law, as amended by section 13 of part A of chapter 57 of the laws of
2009, is amended to read as follows:
b-1. Notwithstanding any other provision of law to the contrary, for
the two thousand seven--two thousand eight through two thousand thir-
teen--two thousand fourteen school years, the additional amount payable
to each school district pursuant to this subdivision in the current year
as total foundation aid, after deducting the total foundation aid base,
shall be deemed a state grant in aid identified by the commissioner for
general use for purposes of [sections] SECTION seventeen hundred eigh-
teen [and two thousand twenty-three] of this chapter.
S 21. Subdivision 11 of section 3602-e of the education law, as
amended by section 19 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
11. Notwithstanding the provisions of subdivision ten of this section,
where the district serves fewer children during the current year than in
the base year, the school district shall have its apportionment reduced
in an amount proportional to such deficiency in the current year or in
the succeeding school year, as determined by the commissioner, except
such reduction shall not apply to school districts which have fully
implemented a universal pre-kindergarten program by making such program
available to all eligible children. [Expenses incurred by the school
district in implementing a pre-kindergarten program plan pursuant to
this subdivision shall be deemed ordinary contingent expenses.]
S 22. Paragraphs a and b of subdivision 1 of section 3635 of the
education law, paragraph a as amended by chapter 69 of the laws of 1992,
paragraph b as amended by chapter 718 of the laws of 1990 and subpara-
graph (i) of paragraph b as amended by chapter 571 of the laws of 1994,
are amended to read as follows:
a. Sufficient transportation facilities (including the operation and
maintenance of motor vehicles) shall be provided by the school district
for all the children residing within the school district to and from the
school they legally attend, who are in need of such transportation
because of the remoteness of the school to the child or for the
promotion of the best interest of such children. Such transportation
shall be provided for all children attending grades kindergarten through
eight who live more than two miles from the school which they legally
attend and for all children attending grades nine through twelve who
live more than three miles from the school which they legally attend and
shall be provided for each such child up to a distance of fifteen miles,
the distances in each case being measured by the nearest available route
from home to school. The cost of providing such transportation between
two or three miles, as the case may be, and fifteen miles shall be
S. 2706 24
considered for the purposes of this chapter to be a charge upon the
district [and an ordinary contingent expense of the district]. Transpor-
tation for a lesser distance than two miles in the case of children
attending grades kindergarten through eight or three miles in the case
of children attending grades nine through twelve and for a greater
distance than fifteen miles may be provided by the district WITH THE
APPROVAL OF THE QUALIFIED VOTERS, and, if provided, shall be offered
equally to all children in like circumstances residing in the district;
provided, however, that this requirement shall not apply to transporta-
tion offered pursuant to section thirty-six hundred thirty-five-b of
this [article] PART.
b. (i) School districts providing transportation to a nonpublic school
for pupils living within a specified distance from such school shall
designate one or more public schools as centralized pick-up points and
shall provide transportation between such points and such nonpublic
schools for students residing in the district who live too far from such
nonpublic schools to qualify for transportation between home and school.
The district shall not be responsible for the provision of transporta-
tion for pupils between their home and such pick-up points. The
district may provide school bus transportation to a pupil if the resi-
dence of the pupil is located on an established route for the transpor-
tation of pupils to the centralized pick-up point provided such trans-
portation does not result in additional costs to the district. [The cost
of providing transportation between such pick-up points and such nonpub-
lic schools shall be an ordinary contingent expense.]
(ii) A board of education may, at its discretion, provide transporta-
tion for pupils residing within the district to a nonpublic school
located more than fifteen miles from the home of any such pupil provided
that such transportation has been provided to such nonpublic school
pursuant to this subdivision in at least one of the immediately preced-
ing three school years and such transportation is provided from one or
more centralized pick-up points designated pursuant to this paragraph
and that the distance from such pick-up points to the nonpublic school
is not more than fifteen miles. The district shall not be responsible
for the provision of transportation for pupils between [pupils] PUPILS'
homes and such pick-up points. [The cost of providing transportation
between such pick-up points and such nonpublic schools shall be an ordi-
nary contingent expense.]
S 23. Subdivision 10 of section 3635-b of the education law, as
amended by chapter 422 of the laws of 2004, is amended to read as
follows:
10. The cost of providing transportation, pursuant to the provisions
of this section, shall [be an ordinary contingent expense and shall] be
included as an item of expense for purposes of determining the transpor-
tation quota of such district.
S 24. Subdivision 3-a of section 3651 of the education law is REPEALED
and subdivisions 1, 3, 4 and 5, subdivision 1 as amended by chapter 504
of the laws of 1949, subdivisions 3 and 4 as added by chapter 782 of the
laws of 1948 and subdivision 5 as amended by chapter 976 of the laws of
1963, are amended to read as follows:
1. A reserve fund may be established by the school authorities of any
school district, [provided, however, that no such fund shall be estab-
lished (a) until approved by a majority vote of the qualified voters of
the district voting on a proposition therefor submitted at a regular or
special school district meeting, or in school districts which do not
have such meetings, at an election called for such purpose, and (b)
S. 2706 25
unless the notice of such meeting or election shall have stated that a
proposition to establish a reserve fund would be so submitted, the
purpose of the fund, the ultimate amount thereof, its probable term and
the source from which the funds would be obtained] AS DEFINED IN SUBDI-
VISION TWELVE OF SECTION TWO OF THIS CHAPTER. Such reserve fund may be
established for financing, in whole or in part, the cost of any object
or purpose for which bonds may be issued by, or for the objects or
purposes of, the school district pursuant to the local finance law. The
[proposition] RESOLUTION OF THE SCHOOL AUTHORITIES ESTABLISHING THE
RESERVE FUND shall specify the purpose for which the fund is estab-
lished, the ultimate amount, the probable term and the source from which
the funds are to be obtained. There shall be paid into any such fund an
annual amount sufficient to meet the requirements of the proposition OR
RESOLUTION. In addition, the [voters] SCHOOL AUTHORITIES may from time
to time direct the [school authorities to pay] PAYMENT into such fund OF
moneys derived from any other source.
3. An expenditure shall be made from a reserve fund only by authori-
zation of the [voters] SCHOOL AUTHORITIES and for the specific purpose
specified in the proposition OR RESOLUTION WHICH ESTABLISHED THE RESERVE
FUND.
4. The [voters] SCHOOL AUTHORITIES may authorize the transfer of all
or any part of any reserve fund to any other reserve fund established
pursuant to this section.
5. Whenever the [voters] SCHOOL AUTHORITIES shall determine that the
original purpose for which a reserve fund has been established is no
longer desirable, [the school authorities] THEY may liquidate the fund
by first applying its proceeds to any outstanding bonded indebtedness
and applying the balance, if any, to the annual tax levy, provided,
however, that the amount so applied in any one year shall not be greater
than the amount which will reduce the tax rate for school purposes below
five mills on actual valuation; provided, however, that the school
authorities in any school district having no outstanding bonded indebt-
edness may, in any year in which no state aid is payable thereto under
the provisions of this chapter, liquidate such fund by applying the
balance thereof to the annual tax levy, regardless of the tax rate for
school purposes[, subject to the approval of a majority of the qualified
electors of the district voting on a proposition therefor submitted at a
regular or special school district meeting, or in school districts which
do not have such meetings, at an election called for such purpose].
S 25. Paragraphs j and k of subdivision 2 of section 23 of the munici-
pal home rule law are relettered k and l, and a new paragraph j is added
to read as follows:
J. OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
YEAR IN ACCORDANCE WITH SECTION THREE-C OF THE GENERAL MUNICIPAL LAW.
S 26. This act shall take effect immediately and shall first apply to
the levy of taxes by school districts for the 2012-2013 school year and
to school district meetings and elections held on and after such effec-
tive date; provided, however, that sections eight, fifteen, twenty,
twenty-one and twenty-two of this act shall take effect July 1, 2012;
and provided further, that section one of this act shall first apply to
the levy of taxes by local governments for the fiscal year that begins
in 2012.
