S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1771
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2025
                                ___________
 
 Introduced  by  M.  of  A. FITZPATRICK -- Multi-Sponsored by -- M. of A.
   MANKTELOW -- read once and referred to the Committee on Education
 
 AN ACT to amend the education law, in relation to school district  state
   aid eligibility
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3604 of the education law is amended  by  adding  a
 new subdivision 8-a to read as follows:
   8-A.  NO  SCHOOL DISTRICT SHALL BE ELIGIBLE TO RECEIVE THE FULL APPOR-
 TIONMENT OF STATE AID TO WHICH IT IS ENTITLED UNDER OTHER PROVISIONS  OF
 THIS CHAPTER IF EVIDENCE IS FOUND BY THE STATE COMPTROLLER WHEN AN AUDIT
 IS  CONDUCTED  AND  SUCH  AUDIT  FINDS THAT A DISTRICT HAS INAPPROPRIATE
 EXCESS OF THEIR UNEXPENDED SURPLUS FUNDS AND SUCH  SCHOOL  DISTRICT  DID
 NOT  REDUCE  THE  SCHOOL TAX LEVY IN A PROPORTION EQUAL TO THE EXCESS OF
 FOUR PERCENT OF THE CURRENT YEAR SCHOOL BUDGET AS REQUIRED UNDER SECTION
 THIRTEEN HUNDRED EIGHTEEN OF THE REAL PROPERTY TAX LAW, COMMENCING  WITH
 THE  TWO  THOUSAND TWENTY-FIVE--TWO THOUSAND TWENTY-SIX SCHOOL YEAR. THE
 COMMISSIONER SHALL WITHHOLD FROM THE FULL APPORTIONMENT  OF  SUCH  STATE
 AID  AN  AMOUNT  EQUAL  TO THE EXCESS OF FOUR PERCENT IN SUCH UNEXPENDED
 SURPLUS FUNDS OF THE CURRENT YEAR SCHOOL BUDGET.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04041-01-5