BILL NUMBER: S1060

SPONSOR: YOUNG
 
TITLE OF BILL:

An act to amend the education law, in relation to the establishment of
an extraordinary needs reserve fund

 
PURPOSE OR GENERAL IDEA OF BILL:

Authorizes school districts to establish an extraordinary needs reserve
fund for the expenses of providing special education.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Amends Section 3651 of the education law by adding a new
section 1-c, authorizing that any school district may establish a
reserve fund for the payment of unanticipated costs related to the
instruction of students as defined in subparagraph one of paragraph i of
subdivision one of section thirty-six hundred two and pursuant to subdi-
vision two of section thirty-two hundred four of this chapter incurred
              

throughout the fiscal year.

Section 2. Provides that this act shall take effect on the first of July
next succeeding the date on which it shall have become law.

 
JUSTIFICATION:

School districts face a financial burden when educating high-need
students, whose costs are greater than four times the cost of an average
pupil with a disability. Further difficulty arises when such students
move into a district mid-year, which may place an undue hardship on a
school district to provide the programming required by law. Smaller
school districts with limited budgets and savings may find that absorb-
ing such an expense threatens the financial stability of the district to
continue educational services to all of its students.

These unanticipated costs could include educating a high-need student
with a disability or students that transfer from another state or terri-
tory as a result of a natural disaster (which recently occurred in
Texas, Florida, and Puerto Rico). The unanticipated cost associated with
serving these students puts a strain on school district resources. As
such, this reserve would provide a cushion for these unforeseen expendi-
tures to ensure adequate resources are available for educating students.

 
PRIOR LEGISLATIVE HISTORY:

2018: S.7689 Referred to Education

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the first of July next succeeding the date
on which it shall have become law.