Senate Bill S3996

                                BILL NUMBER:S3996

TITLE OF BILL:  An act to direct the commissioner of education to
consider granting a waiver of the existing amortization agreement with
regard to certain bonds issued by the Belfast central school district

PURPOSE OF BILL:

To direct the commissioner to consider an application for a waiver of
amortization requirements submitted by Belfast Central School
District.

SUMMARY OF PROVISIONS:

Section 1 directs the commissioner of education to consider granting a
waiver, pursuant to section 3602 of the Education Law.

Section 2 states that this act shall take effect immediately.

JUSTIFICATION:

On June 20, 2012, the Dormitory Authority of the State of New York
(DASNY) authorized the issuance of one or more series of bonds for the
purposes of refunding DASNY's School Districts Revenue Bond Financing
Program Revenue Bonds issued during calendar year 2002.

              

The Education Law contains provisions that require that the State
Education Department (SED) establish periodically, but at least at the
end of each ten year segment of an assumed amortization, a revision to
the remaining scheduled semiannual payments of the outstanding
principal and interest of such assumed amortization.

The Education Law also provides that the commissioner, in his
discretion, may grant a waiver for this recuirement for school
districts who establish extenuating circumstances that warrant such a
waiver.

Belfast Central School District is currently within two years of
paying of their previous refinancing debt and if they were forced to
refinance this debt, they will see an increase of $26,500 for both the
2012-13 and the 2013-14 school year, which is an increase of 1.64% of
their tax levy.

This legislation directs the commissioner to consider, in his
discretion, whether he believes an increase of 1.64% is a sufficient
"extenuating circumstance" that would warrant a waiver to the
refinancing requirement.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

The difference between the rate of amortization currently paid by
Belfast Central School District and that which they would have
refinanced to.


EFFECTIVE DATE:

This act shall take effect immediately.