§ 2576. Annual estimate. 1. The board of education in each city having
a population of less than one million shall prepare annually an itemized
estimate for the current or ensuing fiscal year of such sum of money as
it may deem necessary for the purposes stated in this section, after
crediting thereto the amount anticipated in the next apportionment of
school funds from the state and the estimated amount to be received from
all other sources. Such itemized estimate in such cities shall be filed
at such times and in such manner as city departments or officers are
required to submit estimates for such departments or officers. The board
of education in each other city shall prepare annually an itemized
estimate for the ensuing fiscal year and file the same on or before the
first day of September. Such estimates shall be for the following
purposes:

a. The salary of the superintendent of schools, associate, district or
assistant or other superintendents, examiners, directors, supervisors,
principals, teachers, lecturers, special instructors, claims auditors,
deputy claims auditors, medical inspectors, nurses, attendance officers,
clerks, custodians and janitors and the salary, fees or compensation of
all other employees appointed or employed by said board of education. In
addition, the expenses of personnel utilized to fulfill the internal
audit function pursuant to section twenty-one hundred sixteen-b of this
title.

b. The other necessary incidental and contingent expenses, including
ordinary repairs to buildings and the purchase of fuel and light,
supplies, textbooks, school apparatus, books, furniture and fixtures and
other articles and service necessary for the proper maintenance,
operation and support of the schools, libraries and other educational,
social or recreational affairs and interests under its management and
direction. The provisions of this section in regard to the purchase of
light shall not apply to a city having a population of one million or
more.

c. The remodelling or enlarging of buildings under its control and
management, the construction of new buildings for uses authorized by
this chapter and the furnishing and equipment thereof, the purchase of
real property for new sites, additions to present sites, playgrounds or
recreation centers and other educational or social purposes, and to meet
any other indebtedness or liability incurred under the provisions of
this chapter or other statutes, or any other expenses which the board of
education is authorized to incur. Nothing contained in this chapter
shall prevent the financing, in whole or in part, of any expenditure
enumerated in this subdivision pursuant to the local finance law.

2. In the city school districts of Syracuse, Rochester and Yonkers
such estimate shall be filed with the mayor or city manager. Such
officer shall place such estimate before the board of estimate and
apportionment or other similar body at the same time and in the same
manner as estimates from city departments or officers are placed before
said board or body, and such estimate shall thereafter be subject to the
same consideration, action and procedure as all other estimates from
city departments or officers and said board or body may increase,
diminish or reject any item contained in said estimate, except for fixed
charges for which the city is liable and subject to the limitations
provided by subdivision five-b of this section. When such estimate is
adopted, the said board or body shall file it with the common council.

4. In the city school district of Buffalo such estimate shall be filed
with the officer authorized to receive other department estimates and
the same acted on by such officer and by the council of such city in the
same manner and with the same effect as other department estimates
except that such actions shall be subject to the limitations provided by
subdivision five-b of this section. The council is also authorized, in
its discretion, to include in such budget a sum for any of the purposes
enumerated in paragraph c of subdivision one of this section, and any
further amount for such purposes as may be authorized by a tax election
held in such city pursuant to the provisions of this chapter. After the
adoption of such budget the council shall cause the amount thereof to be
included in the tax and assessment roll of the city and the same shall
be collected in the same manner and at the same time as other taxes of
the city are collected, and placed to the credit of the board of
education.

* 5. In the city school district of the city of New York, such
estimate shall be filed with the mayor. Actions on such estimates shall
be subject to the limitations provided by subdivision five-a of this
section. The board of education shall administer all moneys appropriated
or available for educational purposes in the city, subject to the
provisions of law relating to the audit and payment of salaries and
other claims by the comptroller.

* NB Effective until June 30, 2026

* 5. In a city which had, according to the federal census of nineteen
hundred forty, a population of one million or more such estimate shall
be filed with the mayor. If the total amount requested in such estimate
shall be equivalent to or less than an amount equal to the average
proportion of the total expense budget of such city, as amended,
appropriated for the purposes of the city school district of such city
in the three fiscal years of such city immediately preceding the year
for which said estimate is filed, the city shall appropriate such
amount. If the total amount contained in such estimate shall exceed the
amount so computed, such estimate shall, as to such excess, be subject
to such consideration and such action by the board of estimate, the
council, and the mayor as that taken upon departmental estimates
submitted to the mayor. The city is authorized to make additional
appropriations for educational purposes authorized by this chapter. The
board of education shall administer all moneys appropriated or available
for educational purposes in the city, subject to the provisions of law
relating to the audit and payment of salaries and other claims by the
comptroller.

* NB Effective June 30, 2026

5-a. a. For the purposes of this subdivision, the terms:

(i) "city funds" shall mean funds of the city of New York derived from
any source except funds contained within the capital budget and funds
derived from any federal, state or private sources over which the city
has no discretion.

(ii) "city amount" shall mean the total amount of expenditures funded
by city funds for the support of the city school district of the city of
New York, not including city payments to bond or note holders for debt
service or payments for pension benefits for employees of such district,
as contained within the budget as adopted by the city of New York.

(iii) "base year" shall mean the fiscal year immediately preceding the
fiscal year for which the budget referred to in subparagraph (ii) of
this paragraph is adopted. The initial base year shall be fiscal year
ending June thirtieth, two thousand three.

b. The city amount in a budget adopted by the council pursuant to
section two hundred fifty-four of the New York city charter shall not be
less than the city amount appropriated in the base year as determined at
the time of adoption of the budget for the ensuing fiscal year and shall
be consistent with the requirements of the certification described in
subdivision six of section two hundred eleven-d of this chapter.
Provided, however, in the event the total amount of city funds relied
upon to balance such budget is lower than the total amount of city funds
appropriated in the base year, determined at the time of adoption of
such budget pursuant to a process developed by the department in
consultation with the city of New York and the labor organization
representing teachers that identifies a methodology for the allocation
of appropriations between fiscal years and prescribes a form upon the
approval of the director of budget for the certifications required by
this subdivision, the city amount may be reduced by up to the same
percentage as the overall percentage decrease in city funds between the
base year and the ensuing fiscal year. Before such budget may be
certified pursuant to section two hundred fifty-six of the New York city
charter, the mayor of the city of New York and an independent certified
public accountant shall certify to the commissioner, in a form
prescribed by the commissioner upon the approval of the director of
budget, that the city amount appropriated in such budget is (i) in
compliance with this paragraph; (ii) consistent with the requirements of
subdivision six of section two hundred eleven-d of this chapter; and
(iii) sufficient to ensure individual schools can meet the class size
compliance targets set forth in subdivision two of section two hundred
eleven-d of this chapter. If a budget is adopted pursuant to section two
hundred fifty-four of the New York city charter or certified pursuant to
section two hundred fifty-six of such charter in violation of this
paragraph, the council shall have sixty days to adopt a budget compliant
with this paragraph and have such budget certified in accordance with
the provisions of this paragraph. Should the budget not be adopted and
certified within sixty days, the amount by which the budget is
non-compliant shall be withheld from the foundation aid allotment until
such time as the budget is certified as compliant with this paragraph.

c. Actual budget expenditures shall be certified in October following
the close of the fiscal year to ensure compliance with paragraph b of
this subdivision. If the budget expenditures are not compliant with
paragraph b of this subdivision, the council will appropriate funds in
the amount of the discrepancy as part of the November modification,
pursuant to subdivision b of section one hundred seven of the New York
city charter.

5-b. a. For the purposes of this subdivision, the terms:

(i) "city funds" shall mean funds of each city having a population of
one hundred twenty-five thousand or more inhabitants and less than one
million inhabitants derived from any source except funds contained
within the capital budget, funds from county sales tax revenues shared
with such city, funds derived from any federal source and funds derived
from any state or private sources over which the city has no discretion,
as defined pursuant to regulations developed by the commissioner and
approved by the director of the budget.

(ii) "city amount" shall mean the total amount of expenditures funded
by city funds for the support of the city school district of each city
having a population of one hundred twenty-five thousand or more
inhabitants and less than one million inhabitants, not including city
payments to bond or note holders for debt service payments of such
district, as contained within the budget as adopted by such city.

(iii) "base year" shall mean the fiscal year immediately preceding the
fiscal year for which the budget referred to in subparagraph (ii) of
this paragraph is adopted. The initial base year shall be the fiscal
year ending June thirtieth, two thousand seven.

b. The city amount shall not be less than the city amount appropriated
in the base year determined at the time of adoption of the budget for
the ensuing fiscal year, and shall not be less than the city amount
expended in the base year determined as of the end of the school year.
Provided, however, in the event the total amount of city funds relied
upon to balance such budget is lower than the total amount of city funds
appropriated in the base year, as determined at the time of adoption of
such budget, the city amount may be reduced by up to the same percentage
as the overall percentage decrease in city funds between the base year
and the ensuing fiscal year.

c. Upon the enactment of a city budget, for the two thousand nine--two
thousand ten school year budget and annually thereafter, the chief
executive officer of the city, as defined pursuant to subdivision five-a
of section 2.00 of the local finance law, shall annually certify to the
commissioner, in a form prescribed by the commissioner upon approval of
the director of the budget, as to the city amount in such budget, the
city amount in the base year, and that the city amount appropriated in
such budget is in compliance with paragraph b of this subdivision.

d. The school district audit report certified to by an independent
certified public accountant or an independent accountant pursuant to
section twenty-one hundred sixteen-a of this title for the two thousand
eight--two thousand nine school year budget and annually thereafter
shall include a certification by the accountant, in a form prescribed by
the commissioner upon approval of the director of the budget, as to the
city amount expended in the school year covered by such audit report,
the city amount in the prior school year, and that the city amount
expended in the school year covered by such audit report is in
compliance with paragraph b of this subdivision.

6. A board of education may, to meet emergencies which may arise,
submit a special estimate in which items for extraordinary expenses may
be submitted to meet such emergencies. Such estimate shall contain a
complete statement of the purposes for which the items are requested and
the necessity therefor. The same method of procdure shall be followed in
submitting such estimate and such estimate shall be subject to the same
consideration and action as is required in the submission, consideration
and action upon the regular annual estimate submitted by a board of
education. The common council or other legislative body in such city
shall have power to make the appropriations requested by a board of
education in such special estimate.

7. A board of education shall not incur a liability or an expense
chargeable against the funds under its control or the city for any
purpose in excess of the amount appropriated or available therefor or
otherwise authorized by law.

8. In a city in which, under the statutes in effect prior to June
eighth, nineteen hundred seventeen, it was provided that the estimate of
expenditures for the support and maintenance of the public schools of
the city shall not be less than a specified per capita sum, based on the
number of pupils enrolled in the public schools of the city, the amount
authorized or required to be included in the estimate of school
expenditures as provided in this article shall not be less than the per
capita sum specified in such statute.

9. In any city in which the annual estimate and budget of the board of
education is subject to change by some other city authority, such annual
budget shall give detailed schedules for all purposes and shall indicate
the entire amount to be expended by the board of education for school
purposes, including the amount to be levied for debt service on account
of bonds, notes or certificates of indebtedness issued for school
purposes, whether the amount to be expended is on account of local
revenues or to be derived from state aid. The total amount on account of
local revenues and the total amount to be derived from state aid shall
be separately indicated. In any such city having a population of less
than one million the annual estimate and budget shall contain a
statement of the amount of revenues over and above those set forth in
the budget for the preceding year, which the board of education
estimates it will receive in the current year. Any surplus funds shall
at the close of the fiscal year be transferred to an existing capital
fund or appropriated by the proper authority to other school purposes.

10. In any city with a population of one million or more, amounts
appropriated to effectuate the implementation of a five-year educational
facilities capital plan for such city shall be appropriated as a single
item in such city's capital budget in accordance with subdivision four
of section twenty-five hundred ninety-p of this chapter.