NY State Senate Bill 2019-S340

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to local government
Jan 09, 2019	referred to local government

2019-S340 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §1318, RPT L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S4724
2021-2022: S1935

2019-S340 (ACTIVE) - Summary

Relates to school district unexpended surplus funds; provides that for the 2019-2020 school year and thereafter, surplus funds shall mean any operating funds in excess of six percent of the current school year budget, and shall not include funds properly retained under other sections of law.

2019-S340 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S340

SPONSOR: AKSHAR
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to school
district unexpended surplus funds

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill increases the amount of unexpended surplus funds which may be
maintained by a school district into the next school year.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill would amend subdivision 1 of section 1318 of the
real property tax law to change the threshold for a school district's
unexpended surplus funds to be applied to the proposed tax levy from
four percent to six percent.

Section 2 of the bill establishes the effective date.

 
JUSTIFICATION:

School districts are currently limited to carrying a maximum of four
percent of their budget into the following school year. These unexpended
excess funds, often referred to as a "fund balance," help school
districts deal with unexpected costs, including special education
expenses and emergency capital projects. The funds also allow districts
to address revenue shortfalls and other mid-year funding reductions.
However, the four percent limit covers less than three weeks of school
district expenses. This level of fund balance is well below the Govern-
ment Finance Officers Association's recommendation for governments of no
less than two month's worth of operating expenses. Comparatively, munic-
ipal governments throughout the state have no specific percentage limi-
tation on fund balances and must only keep fund balances within a
"reasonable" amount. Based on that requirement, non-school district
municipalities often maintain a fund balance well over six percent. A
six percent limit would allow school districts to carry approximately a
month's worth of expenses and assist them in maintaining a fiscally
responsible budget throughout the school year in order to better serve
their students.

 
LEGISLATIVE HISTORY:

S4724A of 2018: Referred to Local Government
S4724A of 2017: Advanced to Third Reading

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect July 1, 2019.

2019-S340 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    340
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the  real  property  tax  law,  in  relation  to  school
   district unexpended surplus funds

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1318 of the real property tax law,
 as amended by chapter 238 of the laws of 2007, is  amended  to  read  as
 follows:
   1.  The warrant of the collecting officer shall be signed by the trus-
 tee, or the trustees, or a majority of them, or the board  of  education
 or a majority thereof. Such warrant shall state the amount of unexpended
 surplus  funds  in the custody of the board and shall further state that
 except as authorized or required by law, such unexpended  surplus  funds
 have  been applied in determining the amount of the school tax levy. For
 the two thousand seven--two thousand eight school year, surplus funds as
 used in this subdivision shall mean any operating  funds  in  excess  of
 three  percent  of the current school year budget, and shall not include
 funds properly retained under other sections of law. For the  two  thou-
 sand  eight--two thousand nine school year[, and thereafter] THROUGH THE
 TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR, surplus  funds
 as  used in this subdivision shall mean any operating funds in excess of
 four percent of the current school year budget, and  shall  not  include
 funds  properly  retained under other sections of law. FOR THE TWO THOU-
 SAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR, AND THEREAFTER,  SURPLUS
 FUNDS  AS  USED  IN  THIS  SUBDIVISION SHALL MEAN ANY OPERATING FUNDS IN
 EXCESS OF SIX PERCENT OF THE CURRENT SCHOOL YEAR BUDGET, AND  SHALL  NOT
 INCLUDE  FUNDS  PROPERLY  RETAINED  UNDER  OTHER  SECTIONS  OF LAW. Such
 warrant shall have the same force and effect as a warrant  issued  by  a
 board  of  supervisors to a collecting officer in a town. The collecting
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD05135-01-9

 S. 340                              2
 
 officer to whom it may be delivered  for  collection  shall  be  thereby
 authorized  and  required  to  collect  from  every person named on such
 school tax roll the sum set opposite his name, or the  amount  due  from
 any  person  specified  therein,  in  the  same manner and with the same
 powers that collecting officers in towns are authorized to collect taxes
 levied by the board of supervisors.
   § 2. This act shall take effect July 1, 2019.

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Senate Bill S340

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

2019-S340 (ACTIVE) - Details

2019-S340 (ACTIVE) - Summary

2019-S340 (ACTIVE) - Sponsor Memo

2019-S340 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S340

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Sponsored By

Fred Akshar

Archive: Last Bill Status - In Senate Committee Local Government Committee

2019-S340 (ACTIVE) - Details

2019-S340 (ACTIVE) - Summary

2019-S340 (ACTIVE) - Sponsor Memo

2019-S340 (ACTIVE) - Bill Text download pdf

Comments