NY State Senate Bill 2019-S6323

Senate Bill S6323

2019-2020 Legislative Session

Relates to building aid for approved expenditures for debt service for tax certiorari financing

download bill text pdf

Archive: Last Bill Status - In Senate Committee Education 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 education
Jun 05, 2019	referred to rules

2019-S6323 (ACTIVE) - Details

See Assembly Version of this Bill:: A2051
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §3602, Ed L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A7540
2021-2022: S1674, A6655
2023-2024: S1884, A2783

2019-S6323 (ACTIVE) - Summary

Relates to building aid for approved expenditures for debt service for tax certiorari financing.

2019-S6323 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6323

SPONSOR: SKOUFIS
 
TITLE OF BILL:  An act to amend the education law, in relation to
building aid for approved expenditures for debt service for tax certior-
ari financing

 
PURPOSE:

To provide relief to taxpayers of school districts confronting tax
certiorari payments that exceed the total general fund expenditures of t
he school district.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 3602 of the education law is amended by adding
a new subdivision 6i which authorizes the commissioner to apportion
additional building aid pursuant to this subdivision for a district's
approved debt service expenditures for financing the cost of a tax
certiorari in cases where the total value of the bond exceeds the total
general fund expenditures for the school district for the year prior to

the year in which the district first received bond proceeds. The
district will need to submit documentation required by the commissioner
in order to receive the additional aid.

The bill specifies a formula for the additional aid.

Section 2: Effective date

 
JUSTIFICATION:

A small number of school districts, exemplified by the North Rockland
Central School District in Rockland County, are struggling under the
burdens of enormous tax certiorari payments. In the case of North Rock-
land, the district's taxpayer are bearing the brunt of the largest tax
certiorari settlement in NY State history; the district is paying more
than $11 million per year in debt payments on the bond related to the
tax certiorari settlement. Property taxes for residents have gone up
dramatically to pay for this settlement, teachers have been laid off,
and class sizes have grown. Yet without additional support from the
state, the district may soon face bankruptcy-the first such district in
the state to be confronted with this drastic proposition. As such,
ensuring state support to the beleaguered taxpayers of this district and
any other similarly situated district, is vital. Without the state step-
ping in to assist affected districts, children will continue to pay the
price as their academic programs and services are slashed or eliminated.

 
LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately. Effective immediately, the addi-
tion, amendment and/or repeal of any rule or regulation necessary for
the implementation of this act on or before such effective date.

2019-S6323 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6323
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2019
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the education law,  in  relation  to  building  aid  for
   approved expenditures for debt service for tax certiorari financing
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3602 of the education law is amended  by  adding  a
 new subdivision 6-i to read as follows:
   6-I.  BUILDING  AID FOR APPROVED EXPENDITURES FOR DEBT SERVICE FOR TAX
 CERTIORARI FINANCING. IN ADDITION TO THE  APPORTIONMENTS  PAYABLE  TO  A
 SCHOOL  DISTRICT  PURSUANT TO SUBDIVISION SIX OF THIS SECTION, BEGINNING
 WITH DEBT SERVICE IN THE  TWO  THOUSAND  NINETEEN--TWO  THOUSAND  TWENTY
 SCHOOL  YEAR  AND  THEREAFTER,  THE COMMISSIONER IS HEREBY AUTHORIZED TO
 APPORTION TO ANY SCHOOL DISTRICT ADDITIONAL  BUILDING  AID  PURSUANT  TO
 THIS  SUBDIVISION FOR ITS APPROVED DEBT SERVICE EXPENDITURES FOR FINANC-
 ING THE COST OF A TAX CERTIORARI, WHERE THE  TOTAL  VALUE  OF  THE  BOND
 EXCEEDS  THE TOTAL GENERAL FUND EXPENDITURES FOR THE SCHOOL DISTRICT FOR
 THE YEAR PRIOR TO THE YEAR IN WHICH THE SCHOOL DISTRICT  FIRST  RECEIVES
 BOND PROCEEDS. IN ORDER TO HAVE SUCH DEBT SERVICE EXPENDITURES APPROVED,
 THE  SCHOOL  DISTRICT  SHALL SUBMIT TO THE COMMISSIONER, IN A FORM HE OR
 SHE PRESCRIBES, DOCUMENTATION RELATING TO THE  ISSUANCE  OF  SUCH  BOND,
 INCLUDING  BUT  NOT  LIMITED TO THE ORIGINAL TAX CERTIORARI, THE AMORTI-
 ZATION SCHEDULE OF SUCH BOND, AND ANY OTHER DOCUMENTATION DEEMED  NECES-
 SARY.  PROVIDED, HOWEVER, THAT IN THE EVENT IT REFUNDS THE ORIGINAL BOND
 AT ANY POINT, THE SCHOOL DISTRICT SHALL PROVIDE SUCH UPDATED  DOCUMENTA-
 TION  AS  REQUIRED  BY  THE  COMMISSIONER,  WHO  SHALL ADJUST THE ANNUAL
 APPROVED EXPENDITURES ACCORDINGLY. SUCH AID SHALL EQUAL THE  PRODUCT  OF
 THE SUM OF (1) THE BUILDING AID RATIO DEFINED PURSUANT TO PARAGRAPH C OF
 SUBDIVISION  SIX  OF THIS SECTION PLUS (2) ONE-TENTH (0.1) MULTIPLIED BY
 THE ACTUAL APPROVED DEBT SERVICE EXPENDITURES INCURRED IN THE BASE  YEAR
 PURSUANT TO THIS SUBDIVISION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11981-01-9

 S. 6323                             2
 
   §  2.  This act shall take effect immediately.  Effective immediately,
 the addition, amendment and/or repeal of any rule or  regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.

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