Bill S6724-2013

Relates to the calculation of "adjusted gross income" for purposes of computation of state aid

Relates to the calculation of "adjusted gross income" for purposes of computation of state aid.

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  • Mar 4, 2014: REFERRED TO EDUCATION

Memo

BILL NUMBER:S6724

TITLE OF BILL: An act in relation to the calculation of "adjusted gross income" for purposes of computation of state aid

PURPOSE:To provide a provision in section 3602 of the education law for the 2014-15 school year for any school district in which the adjusted cross income for the 2011 calendar year exceeds the adjusted gross income for the 2010 calendar year by greater than fifty percent but less than one hundred percent.

SUMMARY OF PROVISIONS:Section 1. Notwithstanding any provision of the law to the contract, for purposes of computing state aid pursuant to section 3602 of the education law for the 2014-15 school year for any school district in which the adjusted gross income for 2011 calendar year by greater than fifty percent but less than on hundred percent, "adjusted gross income" shall mean the adjusted gross income of a school district for the calendar year four years prior to the calendar year in which the current year commences. The income date shall be computed in accordance with regulations adopted by the commissioner of taxation and finance based upon personal income tax returns for the calendar year three years prior to the calendar year in which the current school year commences, as reported to the commissioner by September of the base year, including the results of the permanent computerized statewide school district address match and income verification system.

Section 2 provides the effective date.

JUSTIFICATION: The New York Lottery's sole mission is to earn revenue for education. Therefore, when the lottery causes unintentional cuts to education, there is a fundamental issue that needs to be addressed. Specifically, in the village of Green island, after a resident won a $28.7 million share of a $319 million Mega Million prize, it caused an increase in the Green Island School Districts' Combine Wealth Ratio for the 2014-15 school year which has resulted in a cut to their education aid.

The $28.7 million jackpot was equivalent to 68 percent of the $42 million annual earnings of the 2,610 residents of the village. When you add the numbers together, Green island's income jumped to $70.7 million in 2012 which would make Green Island appear to have the same resources as some of the richer and larger suburban districts when in fact 59 percent of the 331 students receive free or reduced cost meals and nearly 45 percent of the district's $6.3 million budget is funded by the state. Additionally, the resident who won the lottery sold their home and moved out of state.

This provision in the education law would protect the school district in which the adjusted gross income for the 2011 calendar year exceeds the adjusted gross income for the 2010 calendar year by greater than fifty percent as a result of the lottery winnings.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect July 1, 2014.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 6724 A. 8937 S E N A T E - A S S E M B L Y March 4, 2014 ___________
IN SENATE -- Introduced by Sen. BRESLIN -- read twice and ordered print- ed, and when printed to be committed to the Committee on Education IN ASSEMBLY -- Introduced by M. of A. McDONALD -- read once and referred to the Committee on Education AN ACT in relation to the calculation of "adjusted gross income" for purposes of computation of state aid THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding any provision of the law to the contrary, for purposes of computing state aid pursuant to section 3602 of the education law for the 2014-15 school year for any school district in which the adjusted gross income for the 2011 calendar year exceeds the adjusted gross income for the 2010 calendar year by greater than fifty percent but less than one hundred percent, "adjusted gross income" shall mean the adjusted gross income of a school district for the calendar year four years prior to the calendar year in which the current year commences. The income data shall be computed in accordance with regu- lations adopted by the commissioner of taxation and finance based upon personal income tax returns for the calendar year three years prior to the calendar year in which the current school year commences, as reported to the commissioner by September of the base year, including the results of the permanent computerized statewide school district address match and income verification system. S 2. This act shall take effect July 1, 2014.

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