NY State Senate Bill 2021-S1674

Senate Bill S1674

2021-2022 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 05, 2022	referred to education
Jan 14, 2021	referred to education

2021-S1674 (ACTIVE) - Details

See Assembly Version of this Bill:: A6655
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §3602, Ed L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A7540
2019-2020: S6323, A2051
2023-2024: S1884, A2783

2021-S1674 (ACTIVE) - Summary

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

2021-S1674 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1674

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 certiorari financing

 
PURPOSE:

To provide relief to taxpayers of school districts confronting tax
certiorari payments that exceed the total general fund expenditures of
the 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:

2020 - S6323 Referred to Education Assembly

2020 - A2051A Referred to Education

 
FISCAL IMPLICATIONS:

To be determined.

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

2021-S1674 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1674
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2021
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 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 TWENTY-ONE--TWO  THOUSAND  TWENTY-
 TWO 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.

                                                            LBD05921-01-1

 S. 1674                             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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