NY State Senate Bill 2023-S9107

Senate Bill S9107

2023-2024 Legislative Session

Relates to reserved funds for special educational services for certain children with disabilities

download bill text pdf

Current 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 13, 2024	reported and committed to education
Apr 26, 2024	referred to disabilities

Votes

- May 13, 2024 - Disabilities Committee Vote
  S9107
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Disabilities Committee Vote: May 13, 2024
      
      aye (7)
      
      Ashby
      
      Felder
      
      Gonzalez
      
      Mannion
      
      Persaud
      
      Scarcella-Spanton
      
      Weber

2023-S9107 (ACTIVE) - Details

See Assembly Version of this Bill:: A10315
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §4405, Ed L

2023-S9107 (ACTIVE) - Summary

Relates to reserved funds for special educational services for certain children with disabilities.

2023-S9107 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9107

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the education law, in relation to reserved funds for
special educational services for certain children with disabilities

 
PURPOSE:

To ensure reserve funds of special act school districts are not treated
as offsetting revenue for purposes of determining their tuition rate.

 
SUMMARY OF PROVISIONS:

Section one amends subparagraph (iv) of paragraph (k) of subdivision 4
of section 4405 of the education law to ensure that funds held by
special acts in reserve, as allowed by the statute, are not counted
against future disbursements from the State.

Section two provides for the effective date.

 
JUSTIFICATION:

Chapter 56 of the laws of 2021 authorized special act school districts
to establish reserve funds, correcting decades of differential treatment
between special act school districts and traditional school districts.
However, special act school districts have been docked for carrying
reserve funds and interest those funds earn when the state calculates
future aid disbursements. The state has treated funds held in reserves
as offsetting revenue for purposes of calculating their tuition rate for
the following year.

Special act school districts do not have a dedicated tax base. They are
funded entirely through the state via a tuition methodology.  Reserve
funds are a critical tool to allow for unexpected adjustments and budg-
etary surprises. But as currently applied, they are of little use to
special act school districts. This legislation would correct this error,
allowing districts to keep a modest percentage in reserve year to year
without jeopardizing their tuition rate.

 
LEGISLATIVE HISTORY:  New bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
Immediately.

2023-S9107 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9107
 
                             I N  S E N A T E
 
                              April 26, 2024
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Disabilities
 
 AN ACT to amend the education law, in relation  to  reserved  funds  for
   special educational services for certain children with disabilities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subparagraph (iv)  of  paragraph  k  of  subdivision  4  of
 section  4405 of the education law, as amended by section 19-a of part A
 of chapter 56 of the laws of 2022, is amended to read as follows:
   (iv) Funds authorized to be  retained  under  this  paragraph  may  be
 expended only pursuant to an authorization of the governing board of the
 school,  school  district or program approved pursuant to section forty-
 four hundred ten of this article, for a purpose expressly authorized  as
 part of the approved tuition methodology for the year in which the funds
 are  to  be  expended,  provided that funds may be expended to pay prior
 year outstanding debts. Any school, school district, or program approved
 pursuant to section forty-four hundred ten of this article that  retains
 funds  pursuant to this paragraph shall be required to annually report a
 statement of the total balance of any such retained funds,  the  amount,
 if any, retained in the prior school year, the amount, if any, dispersed
 in  the  prior  school year, and any additional information requested by
 the department as part of the financial reports that are required to  be
 annually  submitted  to  the  department, AND PROVIDED FURTHER THAT SUCH
 RESERVED FUNDS, INCLUDING ANY ACCRUED INTEREST OR  INVESTMENTS  OF  SUCH
 FUNDS,  OF  SPECIAL  ACT  SCHOOL DISTRICTS SHALL ONLY SUPPLEMENT AND NOT
 SUPPLANT ANY FUNDS PROVIDED BY TUITION METHODOLOGY ONCE RESERVED.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2021.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15092-01-4

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