NY State Senate Bill 2023-S7701

Current Bill Status - In Senate Committee Local Government 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 03, 2024	referred to local government
Oct 13, 2023	referred to rules

2023-S7701 (ACTIVE) - Details

See Assembly Version of this Bill:: A5124
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §1318, RPT L
Versions Introduced in 2021-2022 Legislative Session:: A5588

2023-S7701 (ACTIVE) - Summary

Relates to school district unexpended surplus funds; provides that for the 2025--2026 school year and thereafter, surplus funds shall mean any operating funds in excess of six percent of the current school year budget, and shall not include funds properly retained under other sections of law.

2023-S7701 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7701

SPONSOR: WEBB
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to school
district unexpended surplus funds

 
PURPOSE:

Relates to school district unexpended surplus funds

 
SUMMARY OF PROVISIONS:

Section 1: Amends subdivision 1 of section 1318 of the real property tax
law to change the threshold for a school district's unexpended surplus
funds to be applied to the proposed tax levy from four percent to six
percent.

Section 2: Establishes the effective date.

JUSTIFICATION:

School districts are currently limited to carrying a maximum of four
percent of their budget in to.the following school year. These unex-
pended excess funds, often referred to as a "fund balance," help school
districts deal with unexpected costs, including special education
expenses and emergency capital projects. The funds also allow districts
to address revenue shortfalls, other mid-year funding reductions, or
costly emergency situations such as the current COVID-19 pandemic.
However, the four percent limit often covers less than three weeks of a
school district's expenses. This level of fund balance is well below the
Government Finance Officers Association's recommendation for governments
of no less than two months' worth of operating expenses.

Comparatively, municipal governments throughout the state have no
specific percentage limitation on fund balances, only keep fund balances
within a "reasonable" amount. Based on that requirement, non-school
district municipalities often maintain a fund balance well over six
percent. A six percent limit would allow school districts to carry
approximately a month's worth of expenses and assist them in maintaining
a fiscally responsible budget throughout the school year to better serve
their students. This is especially important given the current fiscal
situation many school districts are facing; the prospect of insufficient
revenues from local property taxes, as well as uncertainty regarding
levels of future state and federal aid.

 
LEGISLATIVE HISTORY:

2021-22: S1935 - Referred to Education

2019-20: S340 - Referred to Local Government

2017-18: S4724A - Referred to Local Government

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2023-S7701 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7701
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             October 13, 2023
                                ___________
 
 Introduced  by  Sen.  WEBB  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the  real  property  tax  law,  in  relation  to  school
   district unexpended surplus funds
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1318 of the real property tax law,
 as amended by chapter 238 of the laws of 2007, is  amended  to  read  as
 follows:
   1.  The warrant of the collecting officer shall be signed by the trus-
 tee, or the trustees, or a majority of them, or the board  of  education
 or a majority thereof. Such warrant shall state the amount of unexpended
 surplus  funds  in the custody of the board and shall further state that
 except as authorized or required by law, such unexpended  surplus  funds
 have  been applied in determining the amount of the school tax levy. For
 the two thousand seven--two thousand eight school year, surplus funds as
 used in this subdivision shall mean any operating  funds  in  excess  of
 three  percent  of the current school year budget, and shall not include
 funds properly retained under other sections of law. For the  two  thou-
 sand  eight--two thousand nine school year[, and thereafter] THROUGH THE
 TWO THOUSAND TWENTY-FIVE--TWO THOUSAND TWENTY-SIX SCHOOL  YEAR,  surplus
 funds  as  used  in  this  subdivision shall mean any operating funds in
 excess of four percent of the current school year budget, and shall  not
 include funds properly retained under other sections of law. FOR THE TWO
 THOUSAND TWENTY-FIVE--TWO THOUSAND TWENTY-SIX SCHOOL YEAR, AND THEREAFT-
 ER,  SURPLUS  FUNDS AS USED IN THIS SUBDIVISION SHALL MEAN ANY OPERATING
 FUNDS IN EXCESS OF SIX PERCENT OF THE CURRENT SCHOOL  YEAR  BUDGET,  AND
 SHALL  NOT  INCLUDE FUNDS PROPERLY RETAINED UNDER OTHER SECTIONS OF LAW.
 Such warrant shall have the same force and effect as a warrant issued by
 a board of supervisors to a collecting officer in a town. The collecting
 officer to whom it may be delivered  for  collection  shall  be  thereby
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09879-05-3

 S. 7701                             2
 
 authorized  and  required  to  collect  from  every person named on such
 school tax roll the sum set opposite his OR HER name, or the amount  due
 from  any person specified therein, in the same manner and with the same
 powers that collecting officers in towns are authorized to collect taxes
 levied by the board of supervisors.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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Senate Bill S7701

Sponsored By

Current Bill Status - In Senate Committee Local Government Committee

2023-S7701 (ACTIVE) - Details

2023-S7701 (ACTIVE) - Summary

2023-S7701 (ACTIVE) - Sponsor Memo

2023-S7701 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7701

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Sponsored By

Lea Webb

Current Bill Status - In Senate Committee Local Government Committee

2023-S7701 (ACTIVE) - Details

2023-S7701 (ACTIVE) - Summary

2023-S7701 (ACTIVE) - Sponsor Memo

2023-S7701 (ACTIVE) - Bill Text download pdf

Comments