Relates to requirements for expenditures from reserve funds by school districts; permits the governing body of a school district to expend up to 50% of such fund without voter approval; repeals such provisions on June 30, 2016.
TITLE OF BILL: An act to amend the education law, in relation to expenditures from reserve funds by school districts; and providing for the repeal of such provisions upon the expiration thereof
PURPOSE OR GENERAL IDEA OF BILL: To provide the governing authorities of school districts the ability to utilize up to one half of the total reserve funds of the district for any lawful purpose upon a two-thirds majority vote of the governing body.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends section 3651 of the Education Law by adding a new subdivision 3-b which provides that the governing authorities of a school district may utilize up to one half of the total reserve funds of the district for any lawful purpose upon a two-thirds majority vote of the governing body.
Section 2: Effective date.
JUSTIFICATION: Currently the governing authority of a school district is required to put a proposition before the voters of a school district before expending funds from a reserve fund. It can be a cumbersome and costly process to hold such a vote. This legislation would allow for the governing authority to access up to one half of the reserve fund with a two-thirds majority vote of the governing body.
S.6716 of 2012: Died in Senate Education
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately and shall expire and be deemed repealed on and after June 30. 2016.
STATE OF NEW YORK ________________________________________________________________________ 884 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. BONACIC -- 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 expenditures from reserve funds by school districts; and providing for the repeal of such provisions upon the expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 3651 of the education law is amended by adding a new subdivision 3-b to read as follows: 3-B. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION THREE OF THIS SECTION, THE GOVERNING AUTHORITIES OF A SCHOOL DISTRICT MAY, BY TWO-THIRDS MAJORITY VOTE, UTILIZE UP TO ONE-HALF THE TOTAL RESERVE FUNDS ESTABLISHED BY SUCH DISTRICT FOR ANY LAWFUL PURPOSE AND MAY MOVE FUNDS BETWEEN RESERVE ACCOUNTS AS NECESSARY SUBJECT TO THE REQUIREMENTS SET FORTH IN THIS SUBDIVISION. THE SUPERINTENDENT OF A SCHOOL DISTRICT, OR OTHER PERSON WITH OVERALL RESPONSIBILITY FOR THE SCHOOL DISTRICT SHALL, AT LEAST FORTY-FIVE DAYS PRIOR TO VOTING BY THE SCHOOL AUTHORITIES TO UTILIZE A PORTION OF THE RESERVES AS PROVIDED FOR IN THIS SUBDIVISION, PLACE SUCH PROPOSAL ON THE AGENDA OF A SCHOOL BOARD MEETING AND PUBLI- CIZE THROUGH AN INFORMATIONAL STATEMENT TO THE MEDIA SENT TO AT LEAST THE OFFICIAL NEWSPAPER OF THE SCHOOL DISTRICT, AND OTHERWISE TO MEDIA IN GENERAL CIRCULATION, ANY PROPOSAL TO BE VOTED ON BY THE GOVERNING AUTHORITIES OF THE SCHOOL DISTRICT TO UTILIZE A PORTION OF ANY RESERVE FUND FOR A LAWFUL PURPOSE, AND THE NATURE OF THAT PURPOSE WITH AS MUCH DETAIL AS IS REASONABLY AVAILABLE TO THE SUPERINTENDENT OR OTHER PERSON WITH OVERALL RESPONSIBILITY FOR THE SCHOOL DISTRICT. SUCH INFORMATIONAL STATEMENT SHALL ALSO BE PROVIDED TO THE COMMISSIONER AND THE STATE COMP- TROLLER IN SUCH FORM AS THE COMMISSIONER AND COMPTROLLER SHALL REQUIRE. S 2. This act shall take effect immediately and shall expire and be deemed repealed on and after June 30, 2016.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03212-01-3