NY State Senate Bill 2015-S860A

Senate Bill S860A

2015-2016 Legislative Session

Relates to certain tuition and reconciliation rates and establishes the special education provider revolving loan fund

download bill text pdf

Archive: Last Bill Status - In Senate Committee Education Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 14, 2016	print number 860a
Jan 14, 2016	amend and recommit to education
Jan 06, 2016	referred to education
Jan 07, 2015	referred to education

Bill Amendments

Original

A (Active)

co-Sponsors

2015-S860 - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §4405, Ed L; add §97-qqqq, St Fin L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5661
2017-2018: S1062

2015-S860 - Summary

Relates to certain tuition and reconciliation rates and establishes the special education provider revolving loan fund.

2015-S860 - Sponsor Memo

                                BILL NUMBER:S860

TITLE OF BILL:

An act to amend the education law, in relation to certain tuition and
reconciliation rates; and to amend the state finance law, in relation
to the special education provider revolving loan fund

PURPOSE:

To index tuition rates paid to certain special education schools to
the personal income growth index, and to provide an alternative to
Revenue Anticipation Notes (RANS) for Special Act school districts,
853 schools and 4410 special education programs and to keep the school
open when such RANS are not available.

SUMMARY OF PROVISIONS:

Section 1. Adds two new paragraphs k and l to subdivision 4 of section
4405 of the education law to provide a tuition rate based on the
personal income growth index and to provide that reconciliation rates
are approved by the Department of the Budget within one hundred twenty
days from submission of the rate to the State Education Department,
respectively.

Section 2. Adds a new section 97-qqqq to the state finance law to

establish a special education provider revolving loan fund under the
joint custody of the comptroller and the Commissioner of Taxation and
Finance. This section authorizes the comptroller to provide short term
loans from the fund, pending tuition payments from the state.

Section 3. Effective date.

JUSTIFICATION:

Special Act school districts, 853 schools and 4410 special education
programs 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. Yet for the
past six years, these schools and programs have not received a cost of
living adjustment and are functioning with a tuition rate based on
2006 costs. Under current law however, funding is provided to special
education programs through a complex methodology in which schools are
getting reimbursed at rates set in previous years, for students
previously served. These school districts currently rely heavily on
short-term borrowing from banks in the form of Revenue Anticipation
Notes (RANs), to keep their doors open. The state does not allow for
reimbursement of interest fees that are paid to banks.

These schools and programs are required to give educational services
and support to children and to do so without the same financial and
infrastructure supports that are afforded to other public schools.
For several years now, these schools and programs have lived with no
increases in their tuition reimbursements and have experienced an
inconsistent application of the tuition rate setting methodology. In
order to enable them to manage the affairs of the schools efficiently
and to address the needs of their students there must be a more


systemic approach to providing the funding and financial support the
schools and programs require. Traditional public schools receive an
allowable growth amount equal to the "personal income growth index"
and 853 schools, Special Acts and 4410 programs seek educational
funding parity between students with disabilities at special education
schools and those at public school districts.

This bill provides the funding certainty and flexibility necessary to
help these schools and programs maintain their mission and to educate
our students with some of the greatest needs. By providing a new
tuition rate methodology, the bill gives these schools and programs
the certainty of funding year to year. Furthermore by allowing New
York State to provide loans to 853 schools, Special Act schools and
4410 preschool special education programs in anticipation of the
school's revenue from the state will thereby save the schools and
programs million in interest payments at no cost to the state.

LEGISLATIVE HISTORY:

2013-14: S5661-A - Education Committee

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

2015-S860 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   860

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 7, 2015
                               ___________

Introduced  by Sen. CARLUCCI -- 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  certain  tuition  and
  reconciliation  rates; and to amend the state finance law, in relation
  to the special education provider revolving loan fund

  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 two new paragraphs k and l to read as follows:
  K. THE TUITION RATES ESTABLISHED FOR  SPECIAL  ACT  SCHOOL  DISTRICTS,
APPROVED  PRIVATE  SCHOOLS  FOR  STUDENTS  OF  SCHOOL  AGE, AND APPROVED
PROVIDERS OF SERVICES PURSUANT TO SECTION FORTY-FOUR HUNDRED TEN OF THIS
ARTICLE FOR THE TWO THOUSAND FIFTEEN - SIXTEEN TUITION RATE YEAR AND ALL
SUBSEQUENT YEARS THEREAFTER SHALL EQUAL THE PRODUCT OF THE TUITION  RATE
FOR  THE  BASE YEAR AND PERSONAL INCOME GROWTH INDEX AS DEFINED BY PARA-
GRAPH BB OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED  TWO  OF  THIS
CHAPTER.
  L.  ALL  RECONCILIATION  RATES  FILED  AFTER  JULY FIRST, TWO THOUSAND
FIFTEEN IN ACCORDANCE WITH SECTION 200.9 OF THE DEPARTMENT'S  RULES  AND
REGULATIONS SHALL BE ACTED UPON BY THE DIRECTOR OF THE BUDGET WITHIN ONE
HUNDRED TWENTY DAYS OF SUBMISSION TO THE DEPARTMENT. SUCH RATES SHALL BE
DEEMED APPROVED BY THE DIRECTOR OF THE BUDGET IN THE EVENT THAT NO FINAL
ACTION  IS TAKEN BY THE DIRECTOR OF THE BUDGET WITHIN ONE HUNDRED TWENTY
DAYS FROM THE SUBMISSION OF THE RECONCILIATION RATE TO THE DEPARTMENT.
  S 2. The state finance law is amended by adding a new section  97-qqqq
to read as follows:
  S  97-QQQQ.  SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND.  1. THERE
IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE  COMPTROLLER  AND  THE
COMMISSIONER  OF  TAXATION AND FINANCE A FUND TO BE KNOWN AS THE SPECIAL
EDUCATION PROVIDER REVOLVING LOAN  FUND.  SUCH  FUND  SHALL  CONSIST  OF
MONEYS MADE AVAILABLE PURSUANT TO APPROPRIATION AND ANY OTHER SOURCES IN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03409-02-5

S. 860                              2

ORDER  TO  PROVIDE SUPPORT SPECIAL ACT SCHOOL DISTRICTS, STATE EDUCATION
DEPARTMENT APPROVED PRIVATE SCHOOLS FOR SPECIAL  EDUCATION  STUDENTS  OF
SCHOOL  AGE,  AND  APPROVED  PROVIDERS  OF  SERVICES PURSUANT TO SECTION
FORTY-FOUR  HUNDRED  TEN OF THE EDUCATION LAW.  MONEYS SHALL BE PAID OUT
OF THE FUND ON THE AUDIT AND WARRANT OF THE STATE  COMPTROLLER  PURSUANT
TO SUCH SECTION.
  2.  THE  COMPTROLLER  MAY  PROVIDE SUCH A LOAN TO A SPECIAL ACT SCHOOL
DISTRICT OR APPROVED SPECIAL EDUCATION PROVIDER DEFINED  IN  SUBDIVISION
ONE  OF  THIS  SECTION  UPON  RECEIPT OF A WRITTEN AGREEMENT BETWEEN THE
SCHOOL DISTRICT OR PROVIDER AND THE STATE EDUCATION DEPARTMENT OUTLINING
THE NEED FOR SUCH LOAN AND THE ANTICIPATED TUITION  PAYMENT  OR  TUITION
RECONCILIATION THAT WILL PROVIDE REASONABLE ASSURANCES OF REPAYMENT THAT
IS  SATISFACTORY  TO  THE COMPTROLLER. SUCH LOAN SHALL NOT BEAR INTEREST
AND REPAYMENT OF SUCH LOAN MAY BE MADE UPON RECEIPT OF TUITION  PAYMENTS
AND RECONCILIATIONS, PURSUANT TO THE WRITTEN AGREEMENT.
  3. THE STATE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS WITHIN
NINETY  DAYS  OF THE EFFECTIVE DATE OF THIS SECTION FOR THE OPERATION OF
THE SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND WHICH SHALL  INCLUDE,
BUT  NOT  BE  LIMITED  TO, THE CRITERIA TO BE USED IN DETERMINING HOW AN
ELIGIBLE SPECIAL EDUCATION PROVIDER MAY RECEIVE ASSISTANCE; A  PROCEDURE
AND ANY NECESSARY INFORMATION THAT A SPECIAL EDUCATION PROVIDER NEEDS TO
SUBMIT  FOR  A  LOAN  FROM THE SPECIAL EDUCATION PROVIDER REVOLVING LOAN
FUND; A SCHEDULE FOR REVIEWING SUCH APPLICATIONS, NOT TO  EXCEED  THIRTY
DAYS,  AND  NOTIFICATION  TO  AN APPLICANT OF APPROVAL OR DISAPPROVAL OF
SUCH APPLICATION FOR A LOAN, AND ANY OTHER REQUIREMENTS DEEMED NECESSARY
BY THE STATE COMPTROLLER.
  S 3. This act shall take effect immediately.

co-Sponsors

2015-S860A (ACTIVE) - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §4405, Ed L; add §97-qqqq, St Fin L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5661
2017-2018: S1062

2015-S860A (ACTIVE) - Summary

Relates to certain tuition and reconciliation rates and establishes the special education provider revolving loan fund.

2015-S860A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S860A

 TITLE OF BILL :

An act to amend the education law, in relation to certain tuition and
reconciliation rates; and to amend the state finance law, in relation
to the special education provider revolving loan fund

 PURPOSE :

To index tuition rates paid to certain special education schools to
the personal income growth index, and to provide an alternative to
Revenue Anticipation Notes (RANS) for Special Act school districts,
853 schools and 4410 special education programs and to keep the school
open when such RANS are not available.

 SUMMARY OF PROVISIONS :

Section 1. Adds two new paragraphs k and 1 to subdivision 4 of section
4405 of the education law to provide a tuition rate based on the
personal income growth index and to provide that reconciliation rates
are approved by the Department of the Budget within one hundred twenty
days from submission of the rate to the State Education Department,
respectively.

Section 2. Adds a new section 97-qqqq to the state finance law to

establish a special education provider revolving loan fund under the
joint custody of the comptroller and the Commissioner of Taxation and
Finance. This section authorizes the comptroller to provide short term
loans from the fund, pending tuition payments from the state.

Section 3. Effective date.

 JUSTIFICATION :

Special Act school districts, 853 schools and 4410 special education
programs 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. Yet for the
past six years, these schools and programs have not received a cost of
living adjustment and are functioning with a tuition rate based on
2006 costs. Under current law however, funding is provided to special
education programs through a complex methodology in which schools are
getting reimbursed at rates set in previous years, for students
previously served. These school districts currently rely heavily on
short-term borrowing from banks in the form of Revenue Anticipation
Notes (RANs), to keep their doors open. The state does not allow for
reimbursement of interest fees that are paid to banks.

These schools and programs are required to give educational services
and support to children and to do so without the same financial and
infrastructure supports that are afforded to other public schools.
For several years now, these schools and programs have lived with no
increases in their tuition reimbursements and have experienced an
inconsistent application of the tuition rate setting methodology. In
order to enable them to manage the affairs of the schools efficiently
and to address the needs of their students there must be a more
systemic approach to providing the funding and financial support the
schools and programs require. Traditional public schools receive an
allowable growth amount equal to the "personal income growth index"
and 853 schools, Special Acts and 4410 programs seek educational
funding parity between students with disabilities at special education
schools and those at public school districts.

This bill provides the funding certainty and flexibility necessary to
help these schools and programs maintain their mission and to educate
our students with some of the greatest needs. By providing a new
tuition rate methodology, the bill gives these schools and programs
the certainty of funding year to year. Furthermore by allowing New
York State to provide loans to 853 schools, Special Act schools and
4410 preschool special education programs in anticipation of the
school's revenue from the state will thereby save the schools and
programs million in interest payments at no cost to the state.

 LEGISLATIVE HISTORY :

2013-14: S5661-A - Education Committee

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S860A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 860--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 7, 2015
                               ___________

Introduced by Sens. CARLUCCI, ADDABBO -- read twice and ordered printed,
  and  when  printed  to  be  committed to the Committee on Education --
  recommitted to the Committee on Education in  accordance  with  Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the education law, in relation to  certain  tuition  and
  reconciliation  rates; and to amend the state finance law, in relation
  to the special education provider revolving loan fund

  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 two new paragraphs k and l to read as follows:
  K. THE TUITION RATES ESTABLISHED FOR  SPECIAL  ACT  SCHOOL  DISTRICTS,
APPROVED  PRIVATE  SCHOOLS  FOR  STUDENTS  OF  SCHOOL  AGE, AND APPROVED
PROVIDERS OF SERVICES PURSUANT TO SECTION FORTY-FOUR HUNDRED TEN OF THIS
ARTICLE FOR THE TWO THOUSAND SIXTEEN - SEVENTEEN TUITION RATE  YEAR  AND
ALL  SUBSEQUENT  YEARS THEREAFTER SHALL EQUAL THE PRODUCT OF THE TUITION
RATE FOR THE BASE YEAR AND PERSONAL INCOME GROWTH INDEX  AS  DEFINED  BY
PARAGRAPH  BB  OF  SUBDIVISION  ONE OF SECTION THIRTY-SIX HUNDRED TWO OF
THIS CHAPTER.
  L. ALL RECONCILIATION RATES  FILED  AFTER  JULY  FIRST,  TWO  THOUSAND
SIXTEEN  IN  ACCORDANCE WITH SECTION 200.9 OF THE DEPARTMENT'S RULES AND
REGULATIONS SHALL BE ACTED UPON BY THE DIRECTOR OF THE BUDGET WITHIN ONE
HUNDRED TWENTY DAYS OF SUBMISSION TO THE DEPARTMENT. SUCH RATES SHALL BE
DEEMED APPROVED BY THE DIRECTOR OF THE BUDGET IN THE EVENT THAT NO FINAL
ACTION IS TAKEN BY THE DIRECTOR OF THE BUDGET WITHIN ONE HUNDRED  TWENTY
DAYS FROM THE SUBMISSION OF THE RECONCILIATION RATE TO THE DEPARTMENT.
  S  2. The state finance law is amended by adding a new section 97-qqqq
to read as follows:
  S 97-QQQQ. SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND.   1.  THERE
IS  HEREBY  ESTABLISHED  IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03409-03-6

S. 860--A                           2

COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS  THE  SPECIAL
EDUCATION  PROVIDER  REVOLVING  LOAN  FUND.  SUCH  FUND SHALL CONSIST OF
MONEYS MADE AVAILABLE PURSUANT TO APPROPRIATION AND ANY OTHER SOURCES IN
ORDER  TO  PROVIDE SUPPORT SPECIAL ACT SCHOOL DISTRICTS, STATE EDUCATION
DEPARTMENT APPROVED PRIVATE SCHOOLS FOR SPECIAL  EDUCATION  STUDENTS  OF
SCHOOL  AGE,  AND  APPROVED  PROVIDERS  OF  SERVICES PURSUANT TO SECTION
FORTY-FOUR HUNDRED TEN OF THE EDUCATION LAW.  MONEYS SHALL BE  PAID  OUT
OF  THE  FUND ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER PURSUANT
TO SUCH SECTION.
  2. THE COMPTROLLER MAY PROVIDE SUCH A LOAN TO  A  SPECIAL  ACT  SCHOOL
DISTRICT  OR  APPROVED SPECIAL EDUCATION PROVIDER DEFINED IN SUBDIVISION
ONE OF THIS SECTION UPON RECEIPT OF  A  WRITTEN  AGREEMENT  BETWEEN  THE
SCHOOL DISTRICT OR PROVIDER AND THE STATE EDUCATION DEPARTMENT OUTLINING
THE  NEED  FOR  SUCH LOAN AND THE ANTICIPATED TUITION PAYMENT OR TUITION
RECONCILIATION THAT WILL PROVIDE REASONABLE ASSURANCES OF REPAYMENT THAT
IS SATISFACTORY TO THE COMPTROLLER. SUCH LOAN SHALL  NOT  BEAR  INTEREST
AND  REPAYMENT OF SUCH LOAN MAY BE MADE UPON RECEIPT OF TUITION PAYMENTS
AND RECONCILIATIONS, PURSUANT TO THE WRITTEN AGREEMENT.
  3. THE STATE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS WITHIN
NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION FOR THE  OPERATION  OF
THE  SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND WHICH SHALL INCLUDE,
BUT NOT BE LIMITED TO, THE CRITERIA TO BE USED  IN  DETERMINING  HOW  AN
ELIGIBLE  SPECIAL EDUCATION PROVIDER MAY RECEIVE ASSISTANCE; A PROCEDURE
AND ANY NECESSARY INFORMATION THAT A SPECIAL EDUCATION PROVIDER NEEDS TO
SUBMIT FOR A LOAN FROM THE SPECIAL  EDUCATION  PROVIDER  REVOLVING  LOAN
FUND;  A  SCHEDULE FOR REVIEWING SUCH APPLICATIONS, NOT TO EXCEED THIRTY
DAYS, AND NOTIFICATION TO AN APPLICANT OF  APPROVAL  OR  DISAPPROVAL  OF
SUCH APPLICATION FOR A LOAN, AND ANY OTHER REQUIREMENTS DEEMED NECESSARY
BY THE STATE COMPTROLLER.
  S 3. This act shall take effect immediately.

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Senate Bill S860A

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Sponsored By

David Carlucci

Archive: Last Bill Status - In Senate Committee Education Committee

Bill Amendments

co-Sponsors

Joseph P. Addabbo Jr.

2015-S860 - Details

2015-S860 - Summary

2015-S860 - Sponsor Memo

2015-S860 - Bill Text download pdf

co-Sponsors

Joseph P. Addabbo Jr.

2015-S860A (ACTIVE) - Details

2015-S860A (ACTIVE) - Summary

2015-S860A (ACTIVE) - Sponsor Memo

2015-S860A (ACTIVE) - Bill Text download pdf

Comments