BILL NUMBER: S7215

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the education law, in relation to permitting special
education services and programs for preschool children with handicapping
conditions to establish reserve funds

 
PURPOSE:

To allow special education services and programs for preschool children
with handicapping conditions to establish reserve funds

 
SUMMARY OF PROVISIONS:

Section 1: Establishes that for the 2023-2024 school year and thereaft-
er, special education services and programs for children with handicap-
ping conditions may retain funds in excess of their allowable and reim-
bursable costs incurred for services and programs to students appointed.
Provides that the total accumulated balance that may be retained cannot
exceed four percent of total costs for the school year and that such
              

funds shall not be recoverable on reconciliation; such funds shall be
carried forward as total reimbursable costs for purposes of calculating
subsequent year prospective and reconciliation tuition rates and such
funds shall be separate from and in addition to any other authorization
to retain surplus funds on reconciliation.

Further establishes that funds may be expended only pursuant to an
authorization of the governing board of the institution for a purpose
expressly authorized as part of allowable costs for the year in which
the funds are to be expended, provided that funds may be expended to pay
prior year outstanding debts. Any institution that retains funds pursu-
ant to this subdivision shall be required to annually report a statement
of the total balance of such retained funds, the amount, if any,
retained in the prior school year, the amount, if any, disbursed in the
prior school year, and the financial reports that are required to be
annually submitted to the department.

Section 2: Sets effective date.

 
JUSTIFICATION:

New York State-approved preschool special education programs, known as
4410 schools, provide special education services to public school chil-
dren of ages 3-5, many of whom have been diagnosed with autism spectrum
disorder, cerebral palsy, or other developmental disabilities. Students
are placed in 4410s only after a determination has been made by a local
Committee on Preschool Special Education that there is no other appro-
priate educational setting available in a local public school. This
means there is no other educational option for these children.

Under current law, 853 schools and Special Act schools, which serve
school-aged children with special needs, are able to establish reserve
funds that allow them to save up to 1% of their budget. This provision
was included in the SFY '2023 Budget, in order to achieve parity with
traditional public schools, which already have the ability to establish
reserve funds. Unfortunately, 4410s were excluded from this benefit.

This legislation allows 4410 schools to establish reserve funds to
ensure these schools are receiving the support they need to adequately
meet the needs of our most vulnerable populations. There are currently
four hundred 4410 schools throughout the State that serve the special
needs of our youngest learners. Given the complexity of their disabili-
ties, it is impossible for any other school system to address their
needs. The continuity of 4410 services is essential to enriching these
students' academic futures and providing them with the tools necessary
to succeed. New York State must address this inequity by allowing 4410s
to establish reserve funds.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
On the first of July next succeeding the date on which it shall have
become a law.