S T A T E O F N E W Y O R K
________________________________________________________________________
4366--A
2015-2016 Regular Sessions
I N A S S E M B L Y
January 30, 2015
___________
Introduced by M. of A. GALEF, PAULIN, SKARTADOS, JAFFEE, GUNTHER,
CAHILL, SALADINO, BARCLAY, BRINDISI, RAIA, ABINANTI, STECK, GOODELL,
DiPIETRO, STIRPE, SKOUFIS, SANTABARBARA, KATZ, BRONSON, FAHY, BARRETT,
HAWLEY -- Multi-Sponsored by -- M. of A. BUCHWALD, COLTON, CROUCH,
LUPINACCI, MONTESANO -- read once and referred to the Committee on
Education -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the education law, in relation to exempting BOCES capi-
tal expenditures from limitations upon local school district tax
levies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph c of subdivision 2 of section 2023-a of the
education law, as added by section 2 of part A of chapter 97 of the laws
of 2011, is amended to read as follows:
c. "Capital [local] expenditures" means the taxes associated with
budgeted expenditures resulting from the financing, refinancing, acqui-
sition, design, construction, reconstruction, rehabilitation, improve-
ment, furnishing and equipping of, or otherwise providing for school
district capital facilities or school district capital equipment,
including debt service and lease expenditures, and transportation capi-
tal debt service, subject to the approval of the qualified voters where
required by law AND THE SCHOOL DISTRICT'S SHARE OF CAPITAL EXPENDITURES
FOR BOARDS OF COOPERATIVE EDUCATIONAL SERVICES AS AUTHORIZED PURSUANT TO
SUBPARAGRAPH ONE OF PARAGRAPH B OF SUBDIVISION FOUR, PARAGRAPHS P, T AND
U OF SUBDIVISION FOUR, PARAGRAPHS A AND B OF SUBDIVISION THIRTEEN, AND
PARAGRAPH A OF SUBDIVISION FOURTEEN OF SECTION NINETEEN HUNDRED FIFTY OF
THIS TITLE.
S 2. Paragraph b of subdivision 4 of section 2023 of the education
law, as amended by section 3 of part A of chapter 97 of the laws of
2011, is amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00036-02-5
A. 4366--A 2
b. The resolution of the trustee, board of trustees, or board of
education adopting a contingency budget shall incorporate by reference a
statement specifying the projected percentage increase or decrease in
total spending for the school year, and explaining the reasons for
disregarding any portion of an increase in spending in formulating the
contingency budget; PROVIDED, HOWEVER, THE SCHOOL DISTRICT'S SHARE OF
CAPITAL EXPENDITURES FOR BOARDS OF COOPERATIVE EDUCATIONAL SERVICES AS
AUTHORIZED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH B OF SUBDIVISION
FOUR, PARAGRAPHS P, T AND U OF SUBDIVISION FOUR, PARAGRAPHS A AND B OF
SUBDIVISION THIRTEEN AND PARAGRAPH A OF SUBDIVISION FOURTEEN OF SECTION
NINETEEN HUNDRED FIFTY OF THIS TITLE SHALL NOT BE INCLUDED IN TOTAL
SPENDING.
S 3. Subparagraph 1 of paragraph b of subdivision 4 of section 1950 of
the education law, as amended by chapter 474 of the laws of 1996, is
amended to read as follows:
(1) Prepare, prior to the annual meeting of members of the boards of
education and school trustees, held as provided in paragraph o of this
subdivision, a tentative budget of expenditures for the program costs, a
tentative budget for capital costs, and a tentative budget for the
administration costs of the board of cooperative educational services.
Such budgets shall include the proposed budget for the upcoming school
year, the previous school year's actual costs and the current school
year's projected costs for each object of expenditure. Such program,
capital and administrative budgets shall be separately delineated in
accordance with the definition of program, capital and administrative
costs which shall be promulgated by the commissioner after consultation
with school district officials and the director of the budget. Personal
service costs for each budget shall include the number of full-time
equivalent positions funded and total salary and, except as noted here-
in, fringe benefit costs for such positions by program. Each program
budget shall also include the local and statewide unit costs of such
programs and services proposed for the upcoming school year, such actual
unit costs for the previous school year, and the current school year's
projected unit costs, all established in accordance with paragraph d of
this subdivision. The capital budget shall include facility construction
and lease expenditures authorized pursuant to paragraphs p, t and u of
this subdivision, payments for the repayment of indebtedness related to
capital projects, payments for the acquisition or construction of facil-
ities, sites or additions, provided that such budget shall contain a
rental, operations and maintenance section that will include base rent
costs, total rent costs, operations and maintenance charges, cost per
square foot for each facility rented or leased by such board of cooper-
ative educational services, and any and all expenditures associated with
custodial salaries and benefits, service contracts, supplies, utilities,
maintenance and repairs for such facilities, and that such budget shall
include the annual debt service and total debt for all facilities
financed by bonds or notes of the component districts, annual rental and
lease payments and total rental and lease costs for all facilities rent-
ed by such board; such capital budget shall also include expenditures
resulting from court judgments and orders from administrative bodies or
officers, and, to the extent a board's administrative budget has been
adopted, one-time costs incurred in the first year in which an employee
retires. The administrative budget shall include, but need not be limit-
ed to, office and central administrative expenses, traveling expenses
and salaries and benefits of supervisors and administrative personnel
necessary to carry out the central administrative duties of the supervi-
A. 4366--A 3
sory district, any and all expenditures associated with the board, the
office of district superintendent, general administration, central
support services, planning, and all other administrative activities.
Such administrative budget shall also specify the amount of supplementa-
ry salary and benefits, if any, which the board determines should be
paid to the district superintendent of schools and the board shall
append to such budget a detailed statement of the total compensation to
be paid the district superintendent of schools by the board, including a
delineation of the salary, annualized cost of benefits and any in-kind
or other form of remuneration to be paid, plus, commencing with the
presentation of the budget for the nineteen hundred ninety-seven--nine-
ty-eight school year, a list of items of expense eligible for reimburse-
ment on expense accounts in the ensuing school year and a statement of
the amount of expenses paid to the district superintendent of schools in
the prior year for purposes of carrying out his or her official duties;
PROVIDED, HOWEVER, SUCH CAPITAL COSTS SHALL NOT BE INCLUDED IN A SCHOOL
DISTRICT'S TAX LEVY PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF
THIS TITLE.
S 4. Subparagraph (a) of paragraph p of subdivision 4 of section 1950
of the education law, as amended by chapter 374 of the laws of 2014, is
amended to read as follows:
(a) To rent suitable land, classrooms, offices or buildings upon or in
which to maintain and conduct such cooperative educational services and
administrative offices for a period not to exceed ten years for leases
entered into with public entities and twenty years for leases entered
into with non-public entities and to improve, alter, equip and furnish
such land, classrooms, offices or buildings in a suitable manner for
such purposes, provided that: (1) before executing any lease, the board
shall adopt a resolution determining that such agreement is in the best
financial interests of the supervisory district and stating the basis of
that determination; (2) the rental payment shall not be more than the
fair market value as determined by the board and provided to the commis-
sioner; (3) The board discloses any conflict of interest pursuant to
subparagraph (c) of this paragraph, or any other potential or perceived
conflict of interest, to the commissioner, and in the event of a
conflict of interest or a potential or perceived conflict of interest,
provides detailed documentation to the commissioner demonstrating that
the cost of the lease is not more than fair market value; and (4) upon
the consent of the commissioner, renewal of such lease may be made for a
period of up to ten years. Nothing contained herein shall prevent the
board from entering into a lease agreement which provides for the
cancellation of the same by such board upon: (i) a substantial increase
or decrease in pupil enrollment; or (ii) a substantial change in the
needs and requirements of a board of cooperative educational services
with respect to facilities; or (iii) any other change which substantial-
ly affects the needs or requirements of a board of cooperative educa-
tional services or the community in which it is located. No lease or
other contract for the occupancy of such land, classrooms, offices or
buildings shall be enforceable against the board of cooperative educa-
tional services unless and until the same shall have been approved in
writing by the commissioner. In the case of a lease longer than ten
years, the commissioner's written approval must include a finding that
the proposed lease complies with all requirements of this paragraph and
would be more cost-effective than a lease of ten years or fewer;
PROVIDED, HOWEVER, SUCH CAPITAL COSTS SHALL NOT BE INCLUDED IN A SCHOOL
A. 4366--A 4
DISTRICT'S TAX LEVY PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF
THIS TITLE.
S 5. Paragraph t of subdivision 4 of section 1950 of the education
law, as added by chapter 795 of the laws of 1967, is amended to read as
follows:
t. When authorized by the qualified voters of the board, to purchase
or otherwise acquire buildings, sites or additions thereto, to purchase
or otherwise acquire real property for any lawful purpose and to
construct buildings thereon; PROVIDED, HOWEVER, SUCH CAPITAL COSTS SHALL
NOT BE INCLUDED IN A SCHOOL DISTRICT'S TAX LEVY PURSUANT TO SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS TITLE.
S 6. Paragraph u of subdivision 4 of section 1950 of the education
law, as added by chapter 795 of the laws of 1967, is amended to read as
follows:
u. To purchase necessary furniture, equipment, implements, apparatus
and supplies; PROVIDED, HOWEVER, SUCH CAPITAL COSTS SHALL NOT BE
INCLUDED IN A SCHOOL DISTRICT'S TAX LEVY PURSUANT TO SECTION TWO THOU-
SAND TWENTY-THREE-A OF THIS TITLE.
S 7. Paragraph g of subdivision 5 of section 1950 of the education
law, as amended by section 5 of part C of chapter 57 of the laws of
2004, is amended to read as follows:
g. Any payment required by a board of cooperative educational services
to the dormitory authority or any payment required by a board of cooper-
ative educational services to acquire or construct a school facility of
the board of cooperative educational services, and any payments for
rental of facilities by a board of cooperative educational services
shall, for the purposes of apportionment of public moneys to the board
of cooperative educational services by the state of New York, be deemed
to be an administrative or capital expense, as designated by the commis-
sioner, but the entire amount of such payment shall be utilized in
making such apportionment and the limitation of ten percent of the total
expenses contained in this subdivision shall not be applicable. Any
expense designated by the commissioner as a capital expense shall be
included in the capital budget of the board of cooperative educational
services and, except as otherwise provided in this paragraph, shall be
aided in the same manner as an administrative expense. Any such payment
shall not be considered part of the total expenses of the board for
purposes of determining the administrative and clerical expenses not to
exceed ten percent otherwise eligible for aid under this subdivision,
and such payments shall be considered for the purpose of apportionment
during the current school year such payment is made. The apportionment
for such payments shall be determined by multiplying the amount of such
payment allocated to each component school district in the board of
cooperative educational services by the aid ratio, and shall be not more
than ninety percent converted to decimals, of each such component
computed pursuant to subdivision three of section thirty-six hundred two
OF THIS CHAPTER and used to apportion aid to that district in that
current school year; provided, however, the apportionment for the
construction, acquisition, reconstruction, rehabilitation, or improve-
ment of board of cooperative educational services facilities, including
payments to the dormitory authority and payments under any lease agree-
ment, shall be based upon the cost of the board of cooperative educa-
tional services school facilities but not to exceed the cost allowance
set forth in subdivision six of section thirty-six hundred two of [the
education law] THIS CHAPTER and payments for rental facilities shall be
subject to the approval of the commissioner; PROVIDED, HOWEVER, SUCH
A. 4366--A 5
CAPITAL COSTS SHALL NOT BE INCLUDED IN A SCHOOL DISTRICT'S TAX LEVY
PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE.
S 8. Paragraphs a and b of subdivision 13 of section 1950 of the
education law, as added by chapter 33 of the laws of 1976, are amended
to read as follows:
a. A board of cooperative educational services and the component
school districts of such board of cooperative educational services may
enter into an agreement providing for the acquisition from the dormitory
authority of facilities designed to house services to be provided by
such board of cooperative educational services and for the sharing of
the cost of such acquisition. Such agreement in addition to providing
for all other matters deemed necessary and proper shall (i) set forth
the cost of such acquisition which shall be the amount certified by the
dormitory authority as sufficient to pay the principal of, the redemp-
tion premium, if any, and interest to the earliest of either the maturi-
ty date or the next redemption date on all obligations of the dormitory
authority issued in relation to providing such facilities, including all
incidental expenses in relation thereto, and (ii) provide for an allo-
cation and apportionment of the cost of such acquisition among the
component school districts on such equitable basis as the parties there-
to shall determine and agree, and the proportion of the total cost to be
provided by each such district in accordance with such allocation and
apportionment. In those cases where construction of such facilities
shall not have been completed, the amount so certified by the dormitory
authority shall include the amount estimated to be necessary by the
dormitory authority to complete such construction by it acting for and
on behalf of such board of cooperative educational services; provided,
however, that such agreement shall provide that such board shall pay to
the dormitory authority any additional amounts thereafter determined and
certified by the dormitory authority to be necessary in order to
complete the construction of such facilities. Existing contracts awarded
by the dormitory authority for the construction of such facilities shall
not be modified, nor shall any work not covered thereby be authorized,
without the prior consent of an officer of such board authorized to so
act by a resolution of such board. Such agreement shall be executed by
all the component school districts of such board of cooperative educa-
tional services whose allocation of administrative expenses would
include a portion of the amounts required to be paid the dormitory
authority for the rental of such facilities; PROVIDED, HOWEVER, SUCH
CAPITAL COSTS SHALL NOT BE INCLUDED IN A SCHOOL DISTRICT'S TAX LEVY
PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE.
b. The acquisition of such facilities is hereby declared and deter-
mined to be a school district purpose and an object or purpose for which
each such component school district is hereby authorized to expend money
and contract indebtedness. The period of probable usefulness of such
object or purpose is hereby determined to be thirty years. Each such
component school district is hereby authorized to finance its share of
the cost of the acquisition of such facilities together with costs inci-
dental to such financing, including, but not limited to legal fees,
printing, engraving and publication of notices, either from any current
funds legally available therefor, or by the issuance of obligations
pursuant to the local finance law; provided, however, that (i) no
approval of the voters of such component school district shall be
required, (ii) the voting of a special tax or a tax to be collected in
installments shall not be a condition precedent to the adoption of a
bond resolution for such object or purpose, (iii) a majority vote of the
A. 4366--A 6
entire voting strength of the board of education shall be sufficient for
adoption of such a bond resolution, which bond resolution may be adopted
at a regular meeting, or a special meeting of the board of education
called on not less than twelve hours oral or written notice, which may
be held either within or outside of such district, (iv) any such bond
resolution shall take effect immediately and shall not be subject either
to a mandatory or permissive referendum, and (v) no such bond resolution
shall be adopted prior to the execution by the board of cooperative
educational services and the component school districts of such board of
cooperative educational services of the agreement required by paragraph
a of this subdivision; PROVIDED, HOWEVER, SUCH CAPITAL COSTS SHALL NOT
BE INCLUDED IN A SCHOOL DISTRICT'S TAX LEVY PURSUANT TO SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS TITLE.
S 9. Paragraphs a and b of subdivision 14 of section 1950 of the
education law, as added by chapter 728 of the laws of 1976, are amended
to read as follows:
a. All provisions of this subdivision shall be applicable only if any
agreement or agreements referred to herein shall be entered into by a
board of cooperative educational services and all of the component
school districts of the board of cooperative educational services. A
board of cooperative educational services and the component school
districts of such board of cooperative educational services may enter
into an agreement providing for the acquisition or construction, includ-
ing new construction, additions or reconstruction of facilities designed
to house services to be provided by such board of cooperative educa-
tional services and for the sharing of the cost of such acquisition or
construction. Such agreement in addition to providing for all other
matters deemed necessary and proper shall (i) set forth the cost of such
acquisition or construction and costs incidental thereto and (ii)
provide for an allocation and apportionment of the costs of such acqui-
sition or construction among the component school districts on such
equitable basis as the parties thereto shall determine and agree, and
the proportion of the total cost to be provided by each such district in
accordance with such allocation and apportionment. Such agreement shall
be executed by all the component school districts of such board of coop-
erative educational services and such board of cooperative educational
services. Such agreement may provide that each component school district
of such a board of cooperative educational services shall issue an
agreed upon amount of its obligations in a total amount sufficient to
acquire or construct such facilities, or that all component districts of
such board shall together issue joint obligations pledging the full
faith and credit for all component districts jointly and that each such
district shall pay a specified share of annual debt service on such
joint obligations in accordance with the provisions of article [five-g]
FIVE-G of the general municipal law and applicable provisions of the
local finance law; PROVIDED, HOWEVER, SUCH CAPITAL COSTS SHALL NOT BE
INCLUDED IN A SCHOOL DISTRICT'S TAX LEVY PURSUANT TO SECTION TWO THOU-
SAND TWENTY-THREE-A OF THIS TITLE.
b. The acquisition or construction of such facilities is hereby
declared and determined to be a public purpose and a school district
purpose and a specific object or purpose for which each such component
school district is hereby authorized to expend money and contract
indebtedness. The period of probable usefulness of such specific object
or purpose is hereby determined to be thirty years. Each such component
school district is hereby authorized to finance its share of the cost of
the acquisition or construction of such facilities, together with costs
A. 4366--A 7
incidental thereto, either from any current funds legally available
therefor or by the issuance of obligations pursuant to the local finance
law; provided, however, that (i) no approval of the voters of such
component school district shall be required, (ii) the voting of a
special tax or a tax to be collected in installments shall not be a
condition precedent to the adoption of a bond resolution for such
specific object or purpose, (iii) a majority vote of the entire voting
strength of the board of education shall be sufficient for adoption of
such a bond resolution, which bond resolution may be adopted at a regu-
lar meeting, or a special meeting of the board of education called on
not less than twenty-four hours oral or written notice to the members of
such board as provided in section sixteen hundred six of [the education
law] THIS TITLE, which meeting may be held either within or outside of
such district, (iv) any such bond resolution shall take effect imme-
diately and shall not be subject to either a mandatory or permissive
referendum, and (v) no such bond resolution shall be adopted prior to
the execution by the board of cooperative educational services and all
of the component school districts of such board of cooperative educa-
tional services of the agreement required by paragraph a of this subdi-
vision; PROVIDED, HOWEVER, SUCH CAPITAL COSTS SHALL NOT BE INCLUDED IN A
SCHOOL DISTRICT'S TAX LEVY PURSUANT TO SECTION TWO THOUSAND
TWENTY-THREE-A OF THIS TITLE.
S 10. This act shall take effect immediately; provided that the amend-
ments to paragraph c of subdivision 2 of section 2023-a of the education
law made by section one of this act shall be subject to the repeal of
such section and shall be deemed repealed therewith; provided further,
that the amendments to paragraph b of subdivision 4 of section 2023-a of
the education law made by section two of this act shall be subject to
the expiration of such section and shall be deemed to expire therewith;
and provided further, that the amendments to subparagraph (a) of para-
graph p of subdivision 4 of section 1950 of the education law made by
section four of this act shall be subject to the expiration of such
subparagraph and shall be deemed to expire therewith.