Allows temporary inter-fund advances by river regulating districts

1 Co-sponsor

• Teresa Sayward

BILL NUMBER:A10135

Title of bill

An act to amend the environmental conservation law, in relation to inter-fund advances by river regulating districts

Purpose

To specifically authorize the Hudson River-Black River Regu- lating District to temporarily advance monies between funds, thereby enabling the District to pay the real property taxes it currently owes to local school districts.

Summary of provisions

This bill adds a new subdivision 3 to Section 15-2141 of the Environmental Conservation Law. This new subdivision authorizes the Hudson River-Black River Regulating District to temporar- ily advance monies held in any fund to any other fund of the district. It also provides that such transfers shall be authorized by resolution of the Board and approved by the State Comptroller. The bill further provides that such moneys shall be repaid as soon as available (but in no event later than the close of the next succeeding budget cycle), and that such amount shall include an amount reasonably estimated to be the additional amount that would have been earned on the investment of such moneys had the advance not been made.

Existing law

Current law is devoid of specific authority permitting the advance of monies from one fund of a regulating district to another fund maintained by that same regulating district.

Justification

This bill would authorize the Hudson River-Black River Regulating District to temporarily advance monies between its accounts.

This legislation is necessary to enable the District to pay the real property taxes it owes to several schools located around the Great Sacandaga Lake and its watershed. The District has not yet paid its school taxes for the current year, and this is placing a significant strain and burden on these school districts.

A recent federal court decision has resulted in a temporary disruption in the revenue stream for the Regulating District's Hudson River oper- ations. In order to address this temporary disruption and be able to pay its bills -- especially its real property taxes to local schools -- the District sought to make a temporary transfer of funds between accounts. In the past, the District had made such an advance to assist the Black River operations, and it sought to make a similar transfer this time in order to assist the Hudson River operations. However, the State Comp- troller's Office raised questions about the authority to make such transfers.

Instead, the Comptroller's Office suggested that the District seek legislation to specifically authorize such fund transfers. This bill would provide specific legal authority for such transfers, subject to the approval of the State Comptroller's Office.

FISCAL IMPLICATIONS:None to the State

LOCAL FISCAL IMPLICATIONS:This legislation is necessary to ensure that local school districts are paid the property taxes they are owed by the Regulating District.

EFFECTIVE DATE:Immediately