Extends payback by the Southern Cayuga central school district on state aid overpayments for the 2002-2003 and 2003-2004 school years

Title of bill

An act to adjust certain state aid payments to the Southern Cayuga central school district

Purpose or general idea of bill

This legislation would allow for the State Education Department to collect over payments in State aid from the Southern Cayuga Central School District over six years beginning in 2009.

Summary of specific provisions

State aid payments in the amount of not more than $234,498 made to the Southern Cayuga Central School District in the 2002-2003 and 2003-2004 school years, which included excess payments of aid of which the district has been notified, and for which a recovery must be made by the state through deduction of future aid payments, shall be reduced by deducting one-sixth of such excess payments from the payments due to such school district and payable in the month of June in the years 2008, 2010, 2011, 2012, 2013, and 2014, provided, however, there shall be no interest penalty assessed against such district or collected by the state, and provided further that, notwithstanding any other provisions of this act, any pending payment of moneys due to such district as a prior year adjustment payable pursuant to paragraph c of subdivision 5 of section 3604 of the education law for aid claims that had been previously paid in excess as current year aid payments and for which recovery of excess payments is to be made pursuant to this section, shall be reduced at the time of actual payment by any remaining unrecovered balance of such excess payments, and the remaining scheduled deductions of such excess payments pursuant to this section shall be reduced by the commissioner of education to reflect the amount so recovered.

Justification

In April 2008, the State Education Department (SED) notified that it had overpaid the Southern Cayuga Central School District aid for the 2002-2003 school year an amount of $116,685 and overpaid $117,813 for the 2003-04 school year. SED also indicated that the full amount of the overpayment $234,498 would be deducted from the June 2008 state aid payment. The short notice associated with this aid recovery meant that the district did not have time to properly plan for the repayment. As a result a recovery of this magnitude for a small rural district (k-12 enrollment of 856) would have a significant negative financial effect on the district and its taxpayers.

As a result, this bill stretches out the aid recovery for six year's which would reduce the current year recovery of 2007-08 state aid to $39,083 and such amount would be deducted for each of the next five upcoming years until the total $234,498 is recovered.

Prior legislative history

S.8515 of 2007/2008

Fiscal implications

Minimal to state; provides fiscal relief to school district.

Effective date

Immediately and deemed to be in full force and effect on June 1, 2009.