Bill S7152-2011

Relates to state payments to community colleges; repealer

Relates to state payments to community colleges.






VOTE: COMMITTEE VOTE: - Higher Education - Jun 5, 2012
Ayes (15): LaValle, Alesi, Flanagan, Griffo, Grisanti, Maziarz, Ritchie, Robach, Seward, Zeldin, Stavisky, Krueger, Oppenheimer, Rivera, Carlucci
Ayes W/R (2): Kennedy, Serrano
Nays (1): Parker



TITLE OF BILL: An act to amend the education law, in relation to payments to community colleges by the state, and to repeal subdivision 10 of section 6305 of the education law relating to state reimbursement to counties for amounts paid on behalf of non-resident students in attendance at the fashion institute of technology

PURPOSE: The purpose of this bill is to alleviate the financial burden on New York State counties from having to pay charge back fees to FIT for upper division programs.

SUMMARY OF PROVISIONS: Section 1. Provides that subject to the availability of appropriation, that state shall pay the charge back fees for baccalaureate and masters degree programs to FIT. On or before March 31, 2012, the state shall pay 50% of the costs and on or before June 1, 2013, the state shall make the remaining 50% payment to FIT. This section further provides that on or after June 1, 2014 and thereafter, the state shall pay 100% of such costs.

In the event that the state does not pay, the counties that issue the certificate of residences shall make such payments.

Section 2. Removes the authority for the counties to charge the cities and towns charge back fees for resident students who attend community colleges that are not in such resident student's home county.

Section 4. Sets for the effective date.

JUSTIFICATION: The Fashion Institute of Technology is a uniquely situated community college. FIT relies on funding from three sources, local sponsor's share, state support and student tuition, much like any other community college. However, FIT grants baccalaureate and masters degrees which makes them unique. In a recent court case, FIT's designation as a community college was upheld, however, the court found that counties should only required to provide charge back fees for their two year programs. Charge back fees are collected as part of an off-set to the local sponsor's share and are paid by counties whose residents choose to attend an out of county community college.

In these trying economic times, counties are finding it difficult, if not impossible, to pay the upper level charge back fees. This fact, coupled with the court's decision, makes this bill necessary to alleviate some of the counties' burden but to still fund FIT at appropriate and fair levels.

FIT provides a very specialized education in a variety of sought after programs. The Institute has impressive graduation and successful job placement rates and should be financially supported.

Therefore, this bill would achieve the goal of fully funding FIT by having the state pick up the charge back sots for the upper division degrees while easing the counties' financial hardships.

It is important to note, that this bill does not provide an unfair advantage to FIT over other community colleges because it keeps in place the counties obligation to pay the lower level charge back fees which are paid to all other community colleges for two year degrees.


FISCAL IMPLICATIONS: Pursuant to appropriation, approximately $10.8M in 2013-14.

EFFECTIVE DATE: Immediately.


STATE OF NEW YORK ________________________________________________________________________ 7152 IN SENATE May 1, 2012 ___________
Introduced by Sens. LAVALLE, JOHNSON, ZELDIN -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend the education law, in relation to payments to community colleges by the state, and to repeal subdivision 10 of section 6305 of the education law relating to state reimbursement to counties for amounts paid on behalf of non-resident students in attendance at the fashion institute of technology THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 6302 of the education law, as amended by chapter 552 of the laws of 1984, is amended to read as follows: 3. In the city of New York, the [board] DEPARTMENT of education, with the approval of the state university trustees, may act as a local spon- sor in the establishment and operation, as a community college, of a post secondary technical vocational training institution which is partly supported by such [board] DEPARTMENT of education and partly supported by an educational foundation for an industry chartered by the board of regents. In addition to the community college programs and curricula authorized by this article, the institution may offer such baccalau- reate, masters degree programs and curricula in support of its mission, in accordance with standards and regulations prescribed by the state university trustees, as may be authorized pursuant to the provisions of the master plan. Notwithstanding any other provision of law, the insti- tution shall be financed and administered in the manner provided for community colleges; PROVIDED, HOWEVER, THAT SUBJECT TO THE AVAILABILITY OF STATE APPROPRIATION, CHARGE BACKS FOR BACCALAUREATE AND MASTERS DEGREE NON-RESIDENTS OF THE LOCAL COLLEGE SPONSOR, AS REQUIRED BY SECTION SIXTY-THREE HUNDRED FIVE OF THIS ARTICLE TO BE PAID BY THE NEW YORK STATE COUNTY OF SUCH NON-RESIDENT STUDENT, SHALL BE PAID BY THE STATE OF NEW YORK. ON OR BEFORE MARCH THIRTY-FIRST, TWO THOUSAND THIR- TEEN, THE STATE SHALL MAKE FIFTY PERCENT OF SUCH PAYMENT TO SUCH COMMU- NITY COLLEGE, AND ON OR AFTER JUNE FIRST, TWO THOUSAND THIRTEEN, THE
STATE SHALL MAKE THE REMAINING FIFTY PERCENT OF SUCH PAYMENT TO SUCH COMMUNITY COLLEGE, AND ON JUNE FIRST, TWO THOUSAND FOURTEEN AND EVERY YEAR THEREAFTER, THE STATE SHALL PAY ONE HUNDRED PERCENT OF SUCH PAYMENT TO SUCH COMMUNITY COLLEGE. IN THE EVENT OF THE FAILURE OF THE STATE TO MAKE SUCH PAYMENTS, THE COUNTIES ISSUING THE CERTIFICATES OF RESIDENCE SHALL MAKE SUCH PAYMENTS. S 2. Subdivision 5 of section 6305 of the education law, as amended by chapter 681 of the laws of 1971, is amended to read as follows: 5. Amounts payable to such colleges by a county pursuant to this section shall be a general county charge[; provided, however, that with respect to the amounts allocable to each community college a county may charge back such amounts in whole or in part to the cities and towns in the county in proportion to the number of students who, on the basis of certificates of residence issued by such county, were attending each such college as non-residents of the local sponsors thereof during the terms for which the county has been charged, and who were residents of each such city or town at the beginning of such terms]. S 3. Subdivision 10 of section 6305 of the education law is REPEALED. S 4. This act shall take effect immediately.


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