Provides that certain payments by a board of cooperative educational services for construction or rental of facilities shall be disregarded from the calculation of total spending for the purposes of adopting contingency budgets.
TITLE OF BILL: An act to amend the education law, in relation to disregarding certain payments required to be made by a board of cooperative educational services from the calculation of total spending for the purposes of adopting contingency budgets
PURPOSE: This bill permits school districts that are operating on a contingency budget to exclude the expenditure for BOCES capital projects from the statutory cap on contingency budgets.
SUMMARY: Subdivision 4 of Section 2023 of the Education law is amended in the following ways:
Section 1. amends the final subparagraph (vii) of paragraph b which outlines the types of expenditures which are to be disregarded in determining total spending when factoring a levy under contingency budget circumstances to add "; and".
Section 2. renumbers the last subparagraph (vii) of paragraph b because of a redundancy in numbering in the current law. It corrects the number to read "viii" and adds "; and" to the end of the subparagraph to allow for an additional subparagraph.
Section 2. also amends paragraph b to include an additional subparagraph "ix". The new subparagraph adds BOCES capital projects as, outlined in the BOCES law, to the list of expenditures which are to be disregarded in determining total spending when factoring a levy under contingency budget circumstances.
Section 3. This act shall take effect immediately.
JUSTIFICATION: In difficult financial times school districts find it increasingly common to see the qualified voters of their district reject a proposed school budget. Protections in Section 2023 of the Education Law authorize the school district to create a contingency budget. Districts can increase the contingency budget over the prior year's budget to cover regularly increasing costs by 120% of the Consumer Price Index or 4%, whichever is less.
Paragraph b of Subdivision 4 of the same section outlines the types of expenditures which are to be disregarded in determining total spending when factoring an allowable levy under contingency budget circumstances. Current law provides the exclusion of capital expenditures resulting from the construction, acquisition, reconstruction, rehabilitation or improvement of school facilities, including debt service and lease
expenditures, subject to the approval of the qualified voters where required by law.
However, the law doesn't currently provide the same exclusion for the same capital expenditures when they are part of a BOCES capital project.
This bill allows BOCES capital expenses to be excluded from the types of expenditures which determine total spending in a contingency budget; therefore excluding the expenses from the statutory cap on contingency budgets.
It is clear and reasonable that the intent of Section 2023 of the Education Law was to exclude capital projects from the types of expenditures which determine total spending in a contingency budget. Without this exclusion in law, school districts which are hurting the most are forced to payout of their administrative budget for BOCES capital projects.
It's important to consider the mandates each piece of legislation we pass imposes on our schools especially as they may relate to budgeting. By enacting this legislation, we provide school districts which are in some of the most desperate need, a necessary tool for survival under contingency budgets.
LEGISLATIVE HISTORY: S4400-A of 2010 - Reported to Finance
FISCAL IMPACT: None to State.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4183 2011-2012 Regular Sessions IN SENATE March 22, 2011 ___________Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Education AN ACT to amend the education law, in relation to disregarding certain payments required to be made by a board of cooperative educational services from the calculation of total spending for the purposes of adopting contingency budgets THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (vii) of paragraph b of subdivision 4 of section 2023 of the education law, as added by section 1 of part D-2 of chapter 57 of the laws of 2007, is amended to read as follows: (vii) expenditures for payments to charter schools pursuant to section twenty-eight hundred fifty-six of this chapter
[.]; AND S 2. Subparagraph (vii) of paragraph b of subdivision 4 of section 2023 of the education law, as added by chapter 422 of the laws of 2007, is amended and a new subparagraph (ix) is added to read as follows: [(vii)](VIII) expenditures for self-supporting programs. For purposes of this subparagraph, "self-supporting programs" shall mean any programs that are entirely funded by private funds that cover all the costs of the program [.]; AND (IX) THE AMOUNT ALLOCATED TO THE SCHOOL DISTRICT PURSUANT TO PARAGRAPH G OF SUBDIVISION FIVE OF SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE FOR, ANY PAYMENT BY A BOARD OF COOPERATIVE EDUCATIONAL SERVICES TO THE DORMITORY AUTHORITY OR ANY PAYMENT REQUIRED BY A BOARD OF COOPERATIVE 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. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01834-01-1