S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5797
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 19, 2019
                                ___________
 
 Introduced  by M. of A. GIGLIO, LAWRENCE, McDONOUGH, B. MILLER -- Multi-
   Sponsored by -- M. of A. MORINELLO -- read once and  referred  to  the
   Committee on Education
 
 AN  ACT to authorize the board of education of the Salamanca city school
   district to establish a federal impact aid reserve fund in  the  event
   federal impact aid is reduced

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The  legislature  hereby  finds  that
 since certain lands are designated as exempt from taxation, specifically
 the  Allegany  Territory of the Seneca Nation of Indians which is within
 the Salamanca city school district, the Salamanca city  school  district
 receives  federal  impact  aid  for  support  of  services  to students.
 Responsible fiscal planning requires establishment of a  federal  impact
 reserve fund for the purpose of stabilizing the tax levy while maintain-
 ing  educational programming and services, in the event that such aid is
 no longer provided to such district.
   § 2. Definitions. As used in this act:
   (a) "Board of education" or "board" means the board  of  education  of
 the district.
   (b)  "Federal  impact  aid  reserve fund" or "fund" means the district
 federal impact aid reserve fund established pursuant to this act in  the
 event of reduction or loss of federal impact aid.
   (c)  "School  district"  or "district" means the Salamanca city school
 district.
   § 3. The board of education is hereby authorized to establish a feder-
 al impact aid reserve fund for the purpose of tax stabilization  in  the
 event  federal  impact  aid  is reduced provided that the amount of such
 reserve shall not exceed five million  dollars  ($5,000,000);  provided,
 however,  that  no  such  fund shall be established unless approved by a
 majority vote of the voters of the district  present  and  voting  on  a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04038-01-9

 A. 5797                             2
 
 separate  ballot proposition therefor at either a special district meet-
 ing which the board of education may call for such  purpose  or  at  the
 annual  district  meeting  and  election, to be noticed and conducted in
 either  case  in  accordance  with article 41 of the education law. Such
 separate proposition shall set forth the maximum allowable balance to be
 deposited and held in the federal impact aid reserve fund. Moneys  shall
 be  paid into and withdrawn from the fund and the fund shall be adminis-
 tered as follows:
   (a) the board of education is hereby authorized to make payments  into
 the  federal impact aid reserve fund with funds from any unassigned fund
 balance which accrued prior to the establishment of the  federal  impact
 aid reserve fund in an amount not to exceed the balance over any maximum
 allowable  balance  in such unassigned fund balance and from any reserve
 funds authorized or required by law in amounts which the board of educa-
 tion shall determine are not reasonably necessary  for  the  purpose  of
 such  fund  or  funds  and which accrued prior to the federal impact aid
 reserve fund provided that no such  payment  from  any  unassigned  fund
 balance  or  any  reserve  fund  shall  cause the balance of the fund to
 exceed the amount approved in the  ballot  proposal  described  in  this
 section;
   (b)  the  board of education shall determine that the original purpose
 for which a reserve fund has been established is  no  longer  desirable,
 the  school  authorities may liquidate such fund by applying the balance
 thereof to the annual tax levy, regardless of the tax  rate  for  school
 purposes,  without  authorization  of the voters.   Withdrawals from the
 fund shall be disclosed in a manner consistent with the required disclo-
 sures of similar reserve funds held by the district,  including  disclo-
 sures  required by the property tax report card prepared by the district
 pursuant to the provisions of subdivision  7  of  section  1716  of  the
 education  law;  and  deposits  and withdrawals made in each fiscal year
 shall be subject to the district's annual budget approval process; and
   (c) the moneys in the federal impact aid reserve fund shall be  depos-
 ited,  invested and accounted for in the manner provided for in subdivi-
 sions 2 and 6 of section 3651 and section 3652 of the education law.
   § 4. This act shall take effect immediately.