BILL NUMBER: S7906

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act to amend the education law, in relation to authorizing school
districts to establish an extraordinary needs reserve fund

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation will allow school districts to create a reserve fund to
cover the costs of instruction for high needs students with disabilities
who move into the district during the school year.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends education law section 3651 by adding a new
subdivision 1-c to authorize school districts to establish a reserve
fund for payment of unanticipated costs related to the instruction of
students with disabilities as defined in education law section forty-
four hundred one, without voter approval, provided that the total monies
              

held is such reserve fund do not exceed that amount which would be
reasonably deemed necessary for the payment of such unanticipated costs.

Section 2 is the effective date.

 
JUSTIFICATION:

Currently, most state aid to school districts, including aid for high
cost students with disabilities educated at public schools, BOCES and
approved private special education schools, begins the year following
the year in which the expense is incurred. While school districts may be
able to absorb the cost of some students that move into the district
after the budget has passed, a high cost student with a disability,
whose costs are often greater than four times the cost of an average
student with a disability, may place an undue hardship on a school
district to provide the programming required by law.  Especially smaller
school districts may find that absorbing such expense threatens the
ability of the district to continue educational services to all of its
students.

By allowing school districts to set aside monies in an extraordinary
needs reserve fund, they will be able to provide the instructional
program required for high cost students with disabilities who expectant-
ly enroll in the school district during the school year, without having
to reduce funding for other educational programs.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: A9871 referred to education

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

No cost to the State. School district will fund this cost from the
reserve fund established by the school district for this purpose.

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