BILL NUMBER: S2990

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the education law, in relation to the additional appor-
tionment of building aid for certain projects

 
PURPOSE:

To increase the cost threshold for school construction projects' eligi-
bility for additional building aid.

 
SUMMARY OF PROVISIONS:

Amends subparagraph (1) of paragraph (b) of subdivision 6-f of section
3602 of the education law to increase the cost threshold for school
construction project eligibility for additional building aid from one
hundred thousand dollars to a minimum of two hundred fifty thousand
dollars and a maximum of five hundred thousand dollars. The legislation
would also allow the annual amount to be used on multiple projects and
for the State Education Department to approve
              

 
JUSTIFICATION:

Currently, districts may be reimbursed for base year capital outlay
expenses for projects that are wholly funded through capital outlay and
which have a total cost of no more than S100,000. This allows districts
to circumvent the lengthy assumed amortization schedules of ten.
fifteen. and twenty years and instead receive the amount they spend as
they spend it. This is helpful for districts as they receive funding
when they need it, and for the state which then avoids paying interest
on the reimbursement

However costs are rising technological advances are creating greater
demand for capital improvements, and districts are finding it difficult
to fund these projects in real time. This bill would increase the
$100.000 threshold for eligibility to a more reasonable 5250.000 in
order to help districts meet these demands and to save the state money
on interest payments Districts in high cost counties would be eligible
for up to $500,000 annual to account for higher labor wages and costs of
materials.

This legislation would allow these funds to be used on more than one
project. For instance. currently, if a district wants to replace windows
on all its buildings, these funds can only be used on one building
because the statute limits them to one project.

Finally, schools could propose multiple year projects for approval from
the Education Department. This would reduce administrative costs for
school districts.

 
LEGISLATIVE HISTORY:


 
FISCAL IMPLICATIONS:

State savings on interest payment

 
EFFECTIVE DATE:
Immediately