Relates to payments made to the Oswego board of cooperative educational services for costs of a certain capital project.
Ayes (8): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein
TITLE OF BILL: An act relating to payments made to the Oswego board of cooperative educational services for costs of a certain capital project
PURPOSE: In the event of a contingency budget, this law would permit school districts in Oswego County to exclude BOCES capital expenses from the statutory cap. In these instances, the Oswego County BOCES capital project would be treated in the same manner as other capital expenses that are currently excluded from the statutory cap under the law.
SUMMARY: This bill authorizes school districts in Oswego County to account for Oswego BOCES capital expenses in the capital component of their district's budget in the event they operate on a contingency budget.
JUSTIFICATION: When the contingency budget statute was originally enacted, the intent was to exclude capital and debt service costs from the calculations. Although Section 2023 of the Education Law provides exemptions for the construction, reconstruction and other improvement of school facilities, the law does not include BOCES capital projects.
Therefore, according to current law, capital projects for BOCES are accounted for in the administrative portion of a school district's budget. In the event of a contingency budget, schools must fund a BOCES capital project even though the state traditionally reimburses 9099% of the project's costs. In turn, this would force the school district to reduce expenditures from the administrative portion of their budget to meet the statutory cap.
For school districts in Oswego County this is a great concern. Several school districts have recently operated on a contingency budget. If a BOCES capital project was approved during this time, the impact on the local school district would have created further financial challenges and possibly job loss.
This legislation seeks to address this issue for school districts in Oswego County by allowing the local district to exclude BOCES capital expenses from their administrative budget in the event they operate on a contingency budget.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3320 2011-2012 Regular Sessions IN SENATE February 16, 2011 ___________Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT relating to payments made to the Oswego board of cooperative educational services for costs of a certain capital project THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding any other provision of law to the contrary, payments made to the Oswego county board of cooperative educational services for costs of its capital project where such payments are eligi- ble for an apportionment pursuant to paragraph g of subdivision 5 of section 1950 of the education law, shall be deemed to be a part of the capital component of a district's budget as formulated pursuant to subdivision 4 of section 1608, subdivision 4 of section 1716 and subdi- vision 3 of section 2601-a of the education law, and shall be deemed to be a capital expenditure for the purposes of computing the contingency budget pursuant to section 2023 of the education law. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07592-01-1