Defines tuition for the 2011-2012 school year; restricts tuition rates to not more than four percent of a school year's costs.
BILL NUMBER: S6775
TITLE OF BILL : An act to amend the education law, in relation to defining "tuition" for the 2011-2012 school year
PURPOSE : To provide that certain schools may maintain a fund balance reserve account of up to 4% of the school's annual allowable and reimbursable costs.
SUMMARY OF PROVISIONS : Section one amends subdivision 4 of section 4405 of education law by adding a new paragraph j to provide that special act school districts and Chapter 853 schools, may maintain a fund balance of up to 4% of the school's annual allowable and reimbursable costs.
Section two of the bill sets forth the enactment date, which is immediate.
JUSTIFICATION : Special act school districts and 853 schools in New York State represent a particularly high needs student population. The high need level associated with this population results in significant costs to operate these schools. Under current law however, these schools and school districts are not authorized to maintain any fund balance at the end of their fiscal year. Therefore, even if these districts achieve efficiencies, they are left with no funds to reinvest in their programs. Further, because the schools operated off of borrowed funds, repaid when they receive their tuition, their lack of resources can make it more difficult to acquire the financing they need to sustain their operations.
Finally, special act school districts are public school districts. Recent changes in state law allow all other public school districts to maintain a 4% undesignated fund balance. It seems only equitable to offer the same level of flexibility to these schools and school districts.
LEGISLATIVE HISTORY : This is a new bill.
FISCAL IMPLICATIONS : None to the State.
EFFECTIVE DATE : Immediately.
STATE OF NEW YORK ________________________________________________________________________ 6775 IN SENATE February 4, 2010 ___________Introduced by Sen. OPPENHEIMER -- 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 defining "tuition" for the 2011-2012 school year THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 4 of section 4405 of the education law is amended by adding a new paragraph j to read as follows: J. THE TUITION RATE METHODOLOGY ESTABLISHED PURSUANT TO THIS SUBDIVI- SION FOR SPECIAL ACT SCHOOL DISTRICTS AND APPROVED PRIVATE SCHOOLS FOR STUDENTS OF SCHOOL AGE FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE TUITION RATE YEAR AND THEREAFTER MAY INCLUDE A SURPLUS FACTOR, AT THE DISCRETION OF THE COMMISSIONER AND APPROVED BY THE DIRECTOR OF THE BUDG- ET, WHICH SHALL EQUAL THE LESSER OF: (I) THE SUM OF: (A) THE EXCESS, IF ANY, OF THE TUITION REVENUE COMPUTED FOR THE BASE YEAR AND USED IN DETERMINING THE TUITION RATE FOR THE TUITION RATE YEAR OVER THE ALLOW- ABLE AND REIMBURSABLE COSTS INCURRED BY THE SCHOOL DISTRICT OR PRIVATE SCHOOL IN THE BASE YEAR, NET OF ANY DISALLOWANCES, PLUS (B) ANY UNEX- PENDED SURPLUS AUTHORIZED PURSUANT TO THIS PARAGRAPH FOR THE SCHOOL YEAR PRIOR TO THE BASE YEAR, AND (II) FOUR PERCENT OF THE TOTAL GENERAL FUND EXPENDITURES UNDER THE BUDGET OF THE SCHOOL DISTRICT OR APPROVED PRIVATE SCHOOL FOR THE BASE YEAR. AS USED IN THIS SUBDIVISION, "TUITION RATE YEAR" SHALL MEAN THE SCHOOL YEAR FOR WHICH A TUITION RATE IS COMPUTED AND "BASE YEAR" SHALL MEAN THE SCHOOL YEAR TWO YEARS PRIOR TO THE TUITION RATE YEAR. THE SPECIAL ACT SCHOOL DISTRICT OR APPROVED PRIVATE SCHOOL MAY RETAIN ANY SURPLUS COMPUTED PURSUANT TO THIS SUBDIVISION AS AN UNRESERVED FUND BALANCE. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11648-04-0